You’re the Ones That I Want: Hydrogen Hub Proposals to the DOE

Regions and States Make Their Case for Federal Financial Support

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As part of the U.S.’s ongoing effort to transition to a lower-carbon economy, the Department of Energy (DOE) in the fall of 2023 will select six to 10 proposals for regional hydrogen hubs that will receive a combined $6 billion to $7 billion in funding over a five-year period starting in 2024. Another $1 billion to $2 billion from the 2021 Bipartisan Infrastructure Law’s $8 billion commitment to hydrogen hubs may be reserved for additional hydrogen hubs or “other supporting activities.” The law also set aside $1 billion to back efforts to reduce the cost of producing clean hydrogen from water via renewables-powered electrolyzers to $2/kilogram (from the current $4-plus/kg) by 2026, and another $500 million to help advance equipment manufacturing technologies and techniques for clean hydrogen processing, delivery, storage, etc.

In this report, we will discuss a number of the hydrogen-hub proposals that proponents have been seeking to advance in recent months.

Key takeaways from the report include:

  • The DOE is reviewing concept papers for regional clean hydrogen hubs.
  • Up to $8B available to support production and transportation networks.
  • Focus on renewables- or nuclear-powered electrolyzers and natural-gas-fed SMRs and ATRs with carbon capture and sequestration.
  • DOE to select winners in fall 2023, complete award negotiations in winter 2023-24.

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