The U.S. Department of Energy (DOE) Office of Clean Energy Demonstrations (OCED) announced on January 17th the selection of a consortium that will help support the launch of the Regional Clean Hydrogen Hubs (H2Hubs).
Back in October 2023, the Biden-Harris administration announced an historic $7 billion investment to launch seven Regional Clean Hydrogen Hubs to accelerate the commercial-scale deployment of low-cost, clean hydrogen with the goal of reducing industrial emissions. Around 25 million metric tons of CO2 is expected to be cut from end-uses each year.
The consortium formed by DOE is expected to design and implement demand-side support mechanisms for unlocking the market potential of the H2Hubs. It consists of the EFI Foundation in partnership with S&P Global, and Intercontinental Exchange (ICE).
To unlock the hydrogen potential in the regions, the DOE and the consortium will collaborate over the next six to nine months to design measures to facilitate purchases of clean hydrogen produced by H2Hub-affiliated projects. The team will also develop an operational plan for how to administer these mechanisms.
The seven hubs spread across the country will receive between $400m and $1.25bn of federal funding support. The consortium will also lay the foundation for broader private sector off-take by providing price transparency and standardized contracts for the projects it supports.
More information about the hubs selected can be found here.