July 24, 2024 [Power Technology]- The hub is the first of seven in the US to sign an agreement with the US Department of Energy (DOE).

The US DOE has announced the official signing of a landmark $12.6bn agreement for the construction of a hydrogen hub in California.

Last October, the Biden administration selected seven hydrogen hubs in 16 states to receive funding. The hub in California, known as ARCHES, is the first of the selected hubs across the country to officially sign its agreement with the DOE.

The $12.6bn agreement includes up to $1.2bn in federal funding provided through the Bipartisan Infrastructure Law.

According to a press release from California Governor Gavin Newsom’s office, the ARCHES hub will “facilitate a network of clean, renewable hydrogen production sites to cut fossil fuel use throughout California, with the ultimate goal of decarbonizing public transportation, heavy duty trucking, and port operations by 2 million metric tons per year – roughly the equivalent to annual emissions of 445,000 gasoline-fuelled cars”.

Newsom said: “California is revolutionizing how a major world economy can clean up its biggest industries. We’re going to use clean, renewable hydrogen to power our ports and public transportation – getting people and goods where they need to go, just without the local air pollution.

“Thanks to the Biden-Harris Administration, California is excited to pioneer this world-leading initiative that’ll show other states and countries what’s possible when you prioritize clean energy and public health.”

The press release claimed that the operation of the hydrogen hub will generate $2.95bn of economic value per year through better health and health cost savings.

Alex Padilla, Democratic California Senator, said: “I was proud to help secure $1.2 billion of federal investments through the Bipartisan Infrastructure Law to build a hydrogen hub right here in California. California is leading the nation with the first hydrogen hub to sign a cooperative agreement, and we will continue to lead by decarbonizing goods, movement, the energy sector, and heavy industry.”

The Biden administration is looking to bolster hydrogen production but critics say that before it reaches $1/kg, it will be too expensive for processes such as industrial heating.