The Biden administration has allocated $7 billion to regional “hubs” across the country that will focus on producing hydrogen energy. This investment is being presented as a dual effort to combat climate change and create new job opportunities.
These hubs are clusters of facilities located in the same geographical area with a common goal of producing and utilizing hydrogen, along with the necessary infrastructure such as pipelines.
The identified regions for these hubs include Appalachia, California, the Gulf Coast, the mid-Atlantic, the Midwest, the Pacific Northwest, and an area referred to as the “Heartland,” covering the Dakotas and Minnesota.
An official from the administration stated during a press briefing on Thursday that these hubs will generate tens of thousands of jobs and stimulate over $40 billion in private investment.
Hydrogen energy is produced through the separation of hydrogen from oxygen in water molecules, resulting in hydrogen energy.
This investment is widely promoted as a potential solution to climate change due to the versatility of hydrogen, which can be used in industries such as aviation and steel manufacturing that struggle with emissions reduction.
“With this historic investment, the Biden-Harris Administration is laying the groundwork for a new, American-led industry that will accelerate the global transition to clean energy while generating high-quality employment opportunities and improving communities throughout the country,” said Energy Secretary Jennifer Granholm in a written statement.
However, climate advocates argue that the effectiveness of hydrogen energy as a solution depends on whether the production process is powered by clean energy sources. They contend that even if the hydrogen is produced from existing energy sources, including clean ones, it consumes energy that could be used elsewhere and may rely upon fossil fuels for replacement.
During the press briefing, an administration official confirmed that “some” of the hubs will utilize new clean energy sources, while others will rely on electricity from the grid or other existing power sources.
In a written statement, Erik Kamrath, a federal hydrogen advocate at the Natural Resources Defense Council, emphasized the need for stringent guidelines to prevent U.S. hydrogen production from creating more emissions. He specifically referred to forthcoming guidance from the Treasury Department, which is working to determine the eligibility criteria for a separate tax credit related to clean hydrogen.
“Weak Treasury guidelines will severely undermine any climate benefits from the H2Hubs,” Kamrath cautioned.
Nevertheless, administration officials continue to champion the hubs as a positive step for the environment. A press release highlights their potential to collectively reduce 25 million metric tons of carbon dioxide emissions annually through the substitution of hydrogen for other fuels.
On the labor front, an administration official stated that “multiple” hubs will have project-labor agreements, which are labor agreements negotiated with unions.
The seven regional hubs cover a total of 16 states.
The Appalachian hub spans West Virginia, Ohio, and Pennsylvania and is powered by natural gas, with emissions being captured and stored.
The California hub relies on renewables and biomass, aiming to provide power for public transit, heavy-duty trucks, and port operations.
The Gulf Coast hub, centered in the Houston area, utilizes renewables and natural gas.
The hub in the Dakotas and Minnesota powers the production of fertilizer.
The mid-Atlantic hub spans Pennsylvania, Delaware, and New Jersey, relying on renewable and nuclear energy sources.
The Midwest hub, encompassing Illinois, Indiana, and Michigan, powers steel and glass production, heavy-duty transportation, and aviation, utilizing hydrogen from renewables, gas, and nuclear energy.
The Pacific Northwest hub is located in Washington, Oregon, and Montana.
President Biden is expected to announce this funding, provided by the Bipartisan Infrastructure Law, during a visit to Philadelphia.
The announcement has garnered some praise from across the political aisle.
Sen. Shelley Moore Capito (R-W.Va.) expressed her pride in West Virginia’s role as an innovative, energy-producing state in a written statement.
Updated at 10:07 a.m. ET
© 2023 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Denial of responsibility! Vigour Times is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
