California hydrogen hub receives $1.2 billion of US federal funding

California has become the first US state to launch a hydrogen hub for hard-to-decarbonise sectors, after receiving a grant of $1.2 billion from the US Department of Energy (DoE).

PHOTO: An image of large hydrogen storage tanks with a blue-sky background. Getty Images

The project is spearheaded by the Alliance for Renewable Clean Hydrogen Energy Systems (ARCHES), which seeks to advance clean hydrogen projects and produce green hydrogen from renewable energy sources and biomass.

ARCHES is a public-private partnership that includes energy researchers, traders, for-profit companies, and non-governmental organisations.

The US DoE and ARCHES signed a $12.6 billion agreement for the hydrogen hub, which includes federal funding of $1.2 billion, the office of California’s governor Gavin Newsom said. The remaining sum is expected to be raised through public and private funding, according to the statement.

The California Hydrogen Hub will create a network of hydrogen production sites and related infrastructure in California. The project also covers steps to decarbonise operations at the three large ports in California - Los Angeles, Long Beach, and Oakland.

Under the project, hydrogen fueling stations will be installed and diesel-based cargo-handling equipment will be replaced with over 200 hydrogen fuel cell-operated equipment in these ports.

The project partners will also prepare the ports for the potential export of hydrogen.

This effort is a part of the US Administration’s initiative to partially fund seven hydrogen hubs in the country. “ARCHES is the first of seven Hydrogen Hubs throughout the country to officially sign their agreement with the DOE,” Newsom said.

In October 2023, the US government selected seven regional hubs to be awarded a total of $7 billion in federal funding for hydrogen production.

By Aparupa Mazumder 

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