Hydrogen Hubs Continue Development Amid Uncertainty Over Federal Funding

As the clock ticks on federal funding decisions, hydrogen hubs along the U.S. West Coast are undeterred, actively forging partnerships and evaluating proposals. The Pacific Northwest Hydrogen Hub (PNWH2) recently announced the approval of eight new projects, collectively valued at $300 million, marking a significant step forward for the collaboration spanning Washington, Oregon, and Montana. Chris Green, president of PNWH2, shared this update during the Hydrogen Summit Americas held in Washington, D.C.

In California, the Arches hub, which accepts rolling proposals, is witnessing a steady influx of requests, averaging five to six projects per week, primarily focused on electrolytic hydrogen production. Chief Executive Angelina Galiteva emphasized the importance of moving forward with robust initiatives in California, regardless of the Department of Energy's (DOE) impending decisions on funding allocations.

The seven federally designated hydrogen hubs were set to receive up to $7 billion in government funding as part of the Infrastructure and Investment Jobs Act, a bipartisan effort from the previous administration. While initial funding has been disbursed, the future of subsequent allocations remains uncertain, particularly following former President Donald Trump's halt on clean energy spending pending DOE review.

Energy Secretary Chris Wright reassured stakeholders earlier this year that the review was expected to conclude by summer's end, dismissing rumors that funding might be redirected away from renewable hydrogen projects in favor of those utilizing natural gas with carbon capture technology.

PNWH2, having completed the first of its four development phases, is currently awaiting feedback on its application for a second tranche of up to $1 billion. The hub received $27.5 million in its initial funding round. Green, however, remained tight-lipped about the identity of new partners as they await the DOE's decision.

At Arches, Galiteva noted that out of 37 proposed partners for their initial DOE application, 35 have signed sub-recipient agreements. The remaining two—Chevron and the National Renewable Energy Laboratory—are in the process of finalizing their agreements. As these hubs continue to navigate the complexities of funding and project development, their commitment to advancing hydrogen solutions remains steadfast.