Bipartisan Infrastructure Law
Hydrogen Hub
On Friday, October 13th, President Biden and Energy Secretary Jennifer Granholm announced seven regional clean hydrogen hubs that were selected to receive $7 billion in Bipartisan Infrastructure Law funding to accelerate the domestic market for low-cost, clean hydrogen.
Advancing clean hydrogen is essential to achieving the President’s vision of a strong clean energy economy that strengthens energy security, bolsters domestic manufacturing, creates healthier communities, and delivers new jobs and economic opportunities across the nation.
The seven selected regional clean hydrogen hubs will catalyze more than $40 billion in private investment and create tens of thousands of good-paying jobs – bringing the total public and private investment in hydrogen hubs to nearly $50 billion. Roughly two-thirds of total project investment are associated with green (electrolysis based) production, within the hubs. Several of the hubs were developed in close partnerships with unions, with three requiring project labor agreements (PLAs). In addition to job creation and creating healthier air for communities, the selected hydrogen hubs are committed to robust Community Benefit Plans to ensure local priorities are at the forefront and all communities share in the benefits of the clean energy transition.
Collectively, the hubs aim to produce more than three million metric tons of clean hydrogen per year, thereby achieving nearly one third of the 2030 U.S. clean hydrogen production goal. Together, the seven Hydrogen Hubs will eliminate 25 million metric tons of carbon dioxide emissions from end uses each year—an amount roughly equivalent to combined annual emissions of over 5.5 million gasoline-powered cars. The nearly $50 billion investment is one of the largest investments in clean manufacturing and jobs in history.
Clean hydrogen can reduce emissions in many sectors of the economy and is especially important for hard-to-decarbonize sectors and industrial processes, such as heavy-duty transportation and chemical, steel, and cement manufacturing. Targeted investments in these areas can help reduce costs, make new breakthroughs, and create jobs for American engineers, manufacturing workers, construction workers, and others.
The Gulf Coast Hydrogen Hub will be centered in the Houston region, the traditional energy capital of the United States. It will help kickstart the clean hydrogen economy with its plans for large-scale hydrogen production through both natural gas with carbon capture and renewables-powered electrolysis, leveraging the Gulf Coast region’s abundant renewable energy and natural gas supply to drive down the cost of hydrogen—a crucial step to achieving market liftoff.
This Hydrogen Hub is expected to create approximately 45,000 direct jobs—35,000 in construction jobs and 10,000 permanent jobs. (Amount: up to $1.2 billion) tied with the California Hydrogen Hub as the largest in the county.
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