Biden Announces The Seven Hydrogen Hubs To Receive $7B In Public Funding

Biden Announces The 7 Hydrogen Hubs To Receive $7B In Public Funding - Carbon Herald
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Hydrogen – the clean fuel of the future that produces no emissions when burnt for energy, has received an investment boost in the US. President Joe Biden announced on Friday the recipients of $7 billion in federal funding across 16 states for the development of seven regional hydrogen hubs

The grants, part of the Bipartisan Infrastructure Law, aims to ensure the energy secure and emissions-free economy and help achieve net-zero greenhouse gas emissions in the US by 2050. The seven hydrogen hubs will spur around $43 billion in private investment, along with the $7 billion public investments, which all together amounts to $50 billion in funding to boost the hydrogen economy. 

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The hubs will both produce and use the hydrogen fuel to alleviate pressure from reliance on fossil fuels for the industry, including the electricity generation sector. The states where the hydrogen hubs will be located are deemed to move towards the hydrogen economy first. They are expected to spur the creation of tens of thousands of jobs, many of them union positions.

The hub development process will go through multiple phases, from design and development to permitting, financing and construction.

“It’s not guaranteed that someone selected is even going to make it through negotiations and get awarded the money,” said Jason Munster, who was involved in analyzing the projects for the Department of Energy.

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Among the selected hydrogen hubs are the Appalachian Regional Clean Hydrogen Hub, based in West Virginia, the Philadelphia-based Mid-Atlantic Clean Hydrogen Hub, the HyVelocity hub in Texas, the Pacific Northwest hub, the California Hydrogen Hub, the Heartland Hydrogen Hub in Minnesota, and the Midwest Hydrogen Hub in Illinois. 

“It’s important to see the hubs themselves as a starting point, though; other pieces of the puzzle like the tax credit, and further work on connective infrastructure, and additional support for communities and new applications, are going to be necessary to continue to shape the hubs over the next 18-month phase of planning,” commented for CNBC Adria Wilson, the hydrogen policy lead at Breakthrough Energy.

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