Last week, the U.S. Department of Energy announced its intent to invest up to $1 billion in a demand-side initiative called Regional Clean Hydrogen Hubs (H2Hubs). U.S. Secretary of Energy Jennifer M. Granholm emphasized the need for collaboration between government and industry to address shared challenges, including market uncertainties that often hinder progress in the clean hydrogen sector.
“Ensuring America is the global leader in the next generation of clean energy technologies requires all of us — government and industry — coming together to confront shared challenges, particularly lack of market certainty for clean hydrogen that too often delays progress,” Granholm said.
According to a press release issued on July 5, as part of President Biden's Investing in America agenda, the U.S. Department of Energy has unveiled its intention to invest up to $1 billion in the Regional Clean Hydrogen Hubs (H2Hubs) initiative through a Notice of Intent (NOI) and Request for Information (RFI). The initiative is funded by Biden's Bipartisan Infrastructure Law. The aim is to establish a national clean hydrogen network that will play a crucial role in reducing emissions from energy-intensive sectors such as industry, chemicals, and heavy-duty transportation.
“That’s why DOE is setting up a new initiative to help our private sector partners address bottlenecks and other project impediments — helping industry unlock the full potential of this incredibly versatile energy resource and supporting the long-term success of the H2hubs,” Granholm said according to the press release.
The initiative will play a key role in fostering the expansion and long-term sustainability of the H2Hubs program by providing the necessary revenue that hydrogen producers need to attract private sector investment. By ensuring a robust demand for hydrogen, this initiative aims to accelerate the adoption and utilization of this clean energy source according to the press release.
The information from the RFI will aid the DOE in refining and validating its approach to offering demand-side support for the Regional Clean Hydrogen Hubs (H2Hubs) as they enter the clean hydrogen market. Additionally, it will help identify the most effective means of engaging and potentially involving private sector institutions, funding and implementation of the entity responsible for executing the H2Hubs' mandate according to the press release by DOE.
The U.S. Department of Energy's $1 billion investment in the Regional Clean Hydrogen Hubs initiative signifies a strong commitment to driving the development and utilization of clean hydrogen as a viable energy source. By addressing market uncertainties and fostering collaboration between the government and industry, the initiative aims to pave the way for a sustainable and environmentally friendly future.
