DOE Provides up to $925M for Appalachian Hydrogen Hub Development

Under a cooperative agreement between ARCH2 and the Department of Energy’s (DOE) Office of Clean Energy Demonstrations (OCED), up to $925 million will fund the development of a clean hydrogen hub in Appalachia. OCED and ARCH2 will create an economically viable hydrogen ecosystem within the region, attracting private sector investment and employing local communities impacted by the energy transition.

ARCH2’s regional benefits include:

• Clean hydrogen production to decarbonize sectors such as manufacturing and transportation
• Thousands of new jobs and training for local energy workers
• 40% of overall program benefits are allocated to communities impacted by underinvestment and pollution

ARCH2 received $30 million for Phase 1, starting in July 2024 and expected to last up to 36 months. OCED’s remaining funds will be released in future phases as ARCH2 achieves determined milestones set by the DOE.

DOE’s H2Hubs

In October 2023, the DOE selected ARCH2 to enter award negotiations for its Regional Clean Hydrogen Hubs Program (H2Hubs). The program, divided into four phases over a decade, will create regional groups of clean-hydrogen producers, consumers, and connective infrastructure to establish a national clean-hydrogen network.

And in June, OCED finalized its agreement for the Design Phase of the H2Hubs Demand-Side Initiative with the EFI Foundation and the Hydrogen Demand Initiative (H2DI) Consortium. OCED and H2DI will work together to design demand-pull mechanisms to de-risk projects in the Regional Clean Hydrogen Hubs.

Updates on PNWH2

In late July 2024, the Pacific Northwest Hydrogen Association (PNWH2) reached Phase 1 designation with the DOE’s recent award status. PNWH2 will receive up to $27.5 million of a potential $1 billion in future federal funding. Phase 1 includes initial planning, permitting, and analysis work to ensure the Hub concept’s technological and financial viability.

The PNWH2 Hub will contain eight nodes across Washington, Oregon, and Montana, relying on technology and readily available renewable energy to decarbonize hard-to-abate industries: public transit, agricultural products, medium- to heavy-duty transport, and electric power. Washington State University’s Consortium for Hydrogen and Renewably Generated E-Fuels will oversee the Community Benefits Plan for the PNWH2 Hub, while project management is led by AtkinsRéalis US Nuclear.

Chris Green, who leads PNWH2, presented in Spokane, WA at the Renewable Hydrogen Alliance Hydrogen event. There, he shared eight potential project locations and said that engagement with local communities, Tribal leaders, and other stakeholders has begun.