The Biden-Harris administration wants to boost a clean hydrogen economy with a new initiative to create market certainty and free up private investment

WASHINGTON, DC – As part of Bidenomics and President Biden’s Investing in America agenda, the US Department of Energy (DOE) today released a Letter of Intent (NOI) that includes a Request for Information (RFI) to commit up to $1 billion in a demand-side venture invest. Side initiative to support Regional Clean Hydrogen Hubs (H2Hubs). Funded by President Biden’s bipartisan infrastructure bill, the H2Hubs program will help lay the foundation for a national clean hydrogen network essential to reducing emissions from some of the most energy-intensive sectors of our economy, including industrial and chemical processes and heavy-duty transportation , is of crucial importance. Today’s announcement will help ensure that both manufacturers and end-users in the H2Hubs have the market certainty they need in the early years of production to unlock private investment and realize the full potential of clean hydrogen. Deploying clean hydrogen on a commercial scale is critical to creating high-paying jobs and new economic opportunities in communities across the country, while enabling the achievement of our long-term decarbonization goals.

“To ensure America leads the world in the next generation of clean energy technologies, all of us – government and industry – must work together to address common challenges, particularly the lack of market certainty for clean hydrogen that all too often delays progress,” he said US Secretary of Energy Jennifer M. Granholm. “That’s why DOE is launching a new initiative to help our private sector partners overcome bottlenecks and other project roadblocks – to help the industry realize the full potential of this incredibly versatile energy resource and support the long-term success of H2hubs.” ”

Clean hydrogen — a versatile and flexible fuel that can be produced with little or no carbon emissions — offers significant economic benefits and will help create tens of thousands of new, high-paying jobs across the country, particularly in underserved communities and energy communities. According to the DOE’s Pathways to Commercial Liftoff: Clean Hydrogen report, America’s growing hydrogen economy has the potential to create 100,000 net new direct and indirect jobs by 2030. Hydrogen will bolster America’s energy independence and accelerate America’s manufacturing boom, which has been ongoing since President took office Biden has already created over 800,000 jobs.

Developing a hydrogen demand initiative is critical to ensure the near-term commercial viability of an H2Hub, as demand formation for a new energy source typically lags behind the creation of a reliable supply. This new initiative will support the growth and sustainability of the H2Hubs program by providing the revenue certainty hydrogen producers need to attract private sector investment. It will also help meet the needs of end-users, who often prefer the flexibility to purchase hydrogen over shorter terms and need confidence in the long-term availability of clean hydrogen before making important, long-term investments.

The NOI, which includes a program design information request, will help the DOE refine and validate its approach to provide hubs with demand-side support as they enter the clean hydrogen market and the best approach for onboarding and potential onboarding of the private sector identify institutions in the organization, capitalization and execution of the mandate of the implementing body. To support the design of a demand-side support mechanism for the H2Hubs program, the NOI invites public input on potential benefits and risks, operating models, governance structures, and resourced implementation partners. The NOI is also informed through the DOE’s dialogue with the energy industry, clean energy investment firms, nonprofits and nongovernmental organizations, as well as through the public response to the Spring 2022 demand-side information request and through the DOE’s Pathways to Commercial Liftoff Report on Clean Hydrogen. Based on the proven performance and experience gained with H2Hubs’ demand-side support mechanism, the DOE may consider similar mechanisms for other technologies and clean energy products in the future.

Funded by the President’s bipartisan Infrastructure Act, the H2Hubs are managed by the DOE’s Office of Clean Energy Demonstrations with support from the Office of Energy Efficiency and Renewable Energy. They are a critical part of the Biden-Harris administration’s strong commitment to investing in America’s workforce and boosting local communities, fostering economic growth, creating good-paying jobs, while strengthening America’s role as a clean energy pioneer.

Later this year, the Biden-Harris administration will announce the selection of six to ten H2Hubs for total funding of up to $7 billion in federal funding — one of the most historic clean energy investments in history and a cornerstone of the vision of President Biden Achieve a zero-carbon grid by 2035 and net-zero emissions by 2050. The proposed mechanism, outlined in the NOI, will help connect the H2Hubs to potential buyers – thereby providing sustained demand and sufficient customers for the hubs, while supporting President Biden’s entire administration’s approach to building a strong clean hydrogen economy.

Read the full Letter of Intent and Request for Information here.