Biden admin assures $7 billion reward for 7 hydrogen hubs

Washington DC, United States: A historic announcement has been made by the Biden Administration on Friday, October 13, regarding the ‘hydrogen hubs’. The US President underscored that seven proposed hubs in 16 US states will be awarded federal grants of around US$ 7 billion.

It has been anticipated that the grant will clean up some of the biggest carbon-emitting industrial sectors, according to Reuters. The official reports have informed that the administration plans to scale up clean hydrogen output to around 10 million metric tons of the fuel by 2030 and up to 50 million by 2050.

In this regard, the US Secretary of Energy, Jennifer M Granholm, stated, “Unlocking the full potential of hydrogen—a versatile fuel that can be made from almost any energy resource in virtually every part of the country—is crucial to achieving President Biden’s goal of American industry powered by American clean energy, ensuring less volatility and more affordable energy options for American families and businesses.”

As per the official (Energy) website of the government, she further added, “With this historic investment, the Biden-Harris Administration is laying the foundation for a new, American-led industry that will propel the global clean energy transition while creating high-quality jobs and delivering healthier communities in every pocket of the nation.”

The list of the winning hydrogen hub proposals is as follows:

Appalachian Hub

The hub is based in West Virginia, Ohio, Pennsylvania. It has been awarded around US$ 925 million. There are expectations that around 18,000 construction jobs and over 3,000 permanent jobs will be created. 

The hub uses the region’s low-cost natural gas to produce the low-cost clean hydrogen. The carbon emission will be stored permanently and safely through this hub. 

California Hub

The hub is situated in California. The award of worth US$ 1.2 billion will be given. It has been anticipated that around 130,000 jobs will be created in the construction sector, with around 90,000 permanent jobs. 

The hub is the largest. Renewable energy and biomass are used to produce hydrogen by leveraging the existing clean energy technology of the state. As per Reuters, the administration has anticipated providing decarbonizing public transportation, port operations and heavy-duty trucking. 

Gulf Coast Hub

The hub is centered in Houston, Texas – the energy capital of the US. It has awarded US$ 1.2 billion. The creation of 35,000 construction jobs and 10,000 permanent jobs is expected. 

Large-scale production of hydrogen is the major main of the hub. The production is done through natural gas with carbon capture, according to Reuters.  

Heartland Hub

The hub is established in Minnesota, North Dakota and South Dakota. The award of around US$ 925 million is granted. Accordingly, about 3,067 construction jobs will be created, along with 703 permanent jobs. 

The hub decarbonizes the agricultural sector’s production of fertilizer. It will also decrease the regional cost of clean hydrogen and advance the use of clean hydrogen in electric generation and for cold climate space heating.

Mid-Atlantic Hub

The hub is centered in Pennsylvania, Delaware, New Jersey. It has been awarded around US$ 750 million. Around 14,400 jobs will be created in the construction sector and 6,400 permanent jobs are expected via this hub. 

The purpose of the hub is to help repurpose the historic oil infrastructure. It will also unlock the hydrogen-driven decarbonization in the Mid-Atlantic region. It will develop renewable hydrogen production facilities. 

Midwest Hub

Centered in Illinois, Indiana and Michigan, the Midwest hub has been awarded around US$ 1 billion. The total number of jobs to be created is around 12,100 in construction and 1,500 permanent jobs. 

The hub will focus on powering steel as well as glass production, refining, power general, heavy-duty transportation and sustainable aviation fuel. 

Pacific Northwest Hub

The hub is in Washington, Oregon and Montana. It will be awarded US$ 1 billion. 8,050 construction jobs and 350 permanent jobs will be created. 

Exclusively renewable sources will be used for the production of clean hydrogen. It will play a key role in driving down electrolyzer costs, making hydrogen affordable.