On September 22, 2022, the United States Department of Energy (DOE) announced up to $7 billion of funding to create regional clean hydrogen hubs (H2Hubs) across the country, which will form a critical arm of America's future clean energy economy.1
In the announcement, DOE states that, as part of a larger $8 billion hydrogen hub program funded through President Biden's Bipartisan Infrastructure Law (BIL), the H2Hubs will be a central driver in helping communities across the country benefit from clean energy investments, good-paying jobs, and improved energy security—all while supporting President Biden's goal of a net-zero carbon economy by 2050.
The related funding opportunity (and related announcement and Q&A log) includes further details and application requirements. For the initial funding, DOE is aiming to select six to 10 hubs for a combined total of up to $7 billion in federal funding. Concept papers are due by November 7, 2022, and full applications are due by April 7, 2023.
Concurrently, DOE also released a draft of the National Clean Hydrogen Strategy and Roadmap (Roadmap) and draft guidance for a Clean Hydrogen Production Standard (CHPS) for public feedback.
The Roadmap provides a comprehensive overview of the potential for hydrogen production, transport, storage, and use in the United States and outlines how clean hydrogen can contribute to national decarbonization and economic development goals. A final version of the Roadmap will be released in the coming months and updated at least every three years.
The CHPS was developed to meet the requirements of the BIL Section 40315. This initial guidance establishes a target of 4.0 kgCO2e/kgH2 for lifecycle (i.e., "well-to-gate") greenhouse emissions associated with hydrogen production, accounting for multiple requirements within the BIL provision as well as incentives in the Inflation Reduction Act. Comments on the CHPS are requested by October 22. 2022.
Footnote
1 For details of earlier hydrogen-related funding, see our February 18, 2022, Legal Update "Biden Administration Commits Major Funding for Several Climate Related Initiatives" and our July 21, 2021, Legal Update "US Department of Energy Announces Funding to Support Hydrogen Energy Earthshot Projects to Lower Cost, Advance Breakthroughs for Clean Hydrogen Technology," and for more on the DOE Hydrogen Earthshot, see our related Legal Updates "US Department of Energy Announces Funding to Support Hydrogen Energy Earthshot Projects to Lower Cost, Advance Breakthroughs for Clean Hydrogen Technology" (July 8, 2021) and "In Its First 'Energy Earthshot,' the US Department of Energy Launches Its 'Hydrogen Shot' Initiative" (June 7, 2021).
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