The U.S. Department of Energy (DOE) has announced a plan to invest up to $1 billion in a demand-side initiative called the Regional Clean Hydrogen Hubs (H2Hubs)  to establish a national clean hydrogen network.

The network is expected to play a crucial role in reducing emissions from energy-intensive sectors such as industry, chemical processes, and heavy-duty transportation.

The DOE’s announcement signifies an important step toward achieving commercial-scale clean hydrogen deployment, job creation, and long-term decarbonization objectives.

Recognizing the need for market certainty to accelerate progress in the clean hydrogen sector, U.S. Secretary of Energy Jennifer M. Granholm emphasized the importance of collaboration between the government and industry.

She highlighted the DOE’s commitment to supporting private sector partners in addressing bottlenecks and project impediments, thereby unlocking the full potential of clean hydrogen and ensuring the success of the H2Hubs.

The DOE’s report, “Pathways to Commercial Liftoff: Clean Hydrogen,” suggests that America’s hydrogen economy has the potential to generate 100,000 net new direct and indirect jobs by 2030.

To ensure the early commercial viability of the H2Hubs, the DOE recognizes the critical role of developing a demand-side initiative. Typically, demand for a new energy source lags the creation of a reliable supply.

The initiative will provide revenue certainty to hydrogen producers, attracting private sector investments. It will also address the needs of end users who seek shorter-term contracts and require confidence in the long-term availability of clean hydrogen before making substantial investments.

To refine and validate its approach to demand-side support for the H2Hubs, the DOE has released a Notice of Intent (NOI) that includes a Request for Information (RFI) on the program’s design. The NOI seeks public input on various aspects, including potential benefits and risks, operating models, governance structures, and potential implementing partners from the private sector.

Later this year, the administration plans to select six to ten H2Hubs for a total federal funding of up to $7 billion, marking a significant milestone in clean energy investments. This move will not only connect the H2Hubs with potential purchasers but also contribute to achieving a carbon-free grid by 2035 and net-zero emissions by 2050.

According to the DOE’s 2023 Energy and Employment Report, Clean Energy jobs increased by 3.9% in the United States, adding 114,000 jobs in 2022, accounting for 40% of the total energy jobs.

Renewable energy sources, including wind, solar, hydro, biomass, and geothermal, exceeded coal-fired power generation in the sector for the first time in 2022 in the U.S., according to a report by the Energy Information Administration.