Biden Announces State Wins $1.675B In Hydrogen Hub Grants

President Joe Biden

President Joe Biden and Energy Secretary Jennifer Granholm announced Friday afternoon that Pennsylvania is the recipient of up to $1.675 billion in Bipartisan Infrastructure Law funding to accelerate the domestic market for low-cost, clean hydrogen.

A press release from the White House stated that “advancing clean hydrogen is essential to achieving the President’s vision of a strong clean energy economy that strengthens energy security, bolsters domestic manufacturing, creates healthier communities, and delivers new jobs and economic opportunities across the nation.

“Collectively, the hubs aim to produce more than three million metric tons of clean hydrogen per year, thereby achieving nearly one-third of the 2030 U.S. clean hydrogen production goal. Together, the seven Hydrogen Hubs will eliminate 25 million metric tons of carbon dioxide emissions from end uses each year—an amount roughly equivalent to combined annual emissions of over 5.5 million gasoline-powered cars. The nearly $50 billion investment is one of the largest investments in clean manufacturing and jobs in history.”

The Pennsylvania hubs selected for negotiation include:

  • Mid-Atlantic Hydrogen Hub (Mid-Atlantic Clean Hydrogen Hub (MACH2); Pennsylvania, Delaware, New Jersey) — The Mid-Atlantic Hydrogen Hub will help unlock hydrogen-driven decarbonization in the Mid-Atlantic while repurposing historic oil infrastructure and using existing rights-of-way. It plans to develop renewable hydrogen production facilities from renewable and nuclear electricity using both established and innovative electrolyzer technologies, where it can help reduce costs and drive further technology adoption. As part of its labor and workforce commitments to the community, the Mid-Atlantic Hydrogen Hub plans to negotiate Project Labor Agreements for all projects and provide close to $14 million for regional Workforce Development Boards that will serve as partners for community college training and pre-apprenticeships. This Hydrogen Hub anticipates creating 20,800 direct jobs—14,400 in construction jobs and 6,400 permanent jobs. (Amount: up to $750 million)

 

  • Appalachian Hydrogen Hub (Appalachian Regional Clean Hydrogen Hub (ARCH2); West Virginia, Ohio, Pennsylvania) — The Appalachian Hydrogen Hub will leverage the region’s ample access to low-cost natural gas to produce low-cost clean hydrogen and permanently and safely store the associated carbon emissions. The strategic location of this Hydrogen Hub and the development of hydrogen pipelines, multiple hydrogen fueling stations, and permanent CO2 storage also have the potential to drive down the cost of hydrogen distribution and storage. The Appalachian Hydrogen Hub is anticipated to bring quality job opportunities to workers in coal communities and create more than 21,000 direct jobs—including more than 18,000 in construction and more than 3,000 permanent jobs, helping ensure the Appalachian community benefits from the development and operation of the Hub. (Amount: up to $925 million)

 

“Today, Pennsylvania is positioning itself as the leader of our country’s clean energy future and creating thousands of new, good-paying union jobs,” said Governor Josh Shapiro. “Since my campaign for Governor, I have been a strong supporter of this investment in our Commonwealth and my Administration has worked closely with organized labor, industry partners, and our neighboring states to make Pennsylvania the only state in the country to secure two regional clean hydrogen hubs. I thank President Biden for his belief in Pennsylvania and Senators Casey and Fetterman for their leadership in securing this win for our Commonwealth.”

“The Mid-Atlantic Clean Hydrogen Hub is a game-changer for Southeastern Pennsylvania,” Senator Bob Casey said. “This hub will bring good union jobs, economic growth, and clean energy innovation to the region. The infrastructure law is helping Pennsylvania take control of its future and become the energy powerhouse we know we can be.”

The MACH2 Hydrogen Hub application includes the City of Philadelphia, with a number of project partners through the Mid-Atlantic, including SEPTA and other transportation entities, Monroe Energy, Philadelphia Gas Works, University of Pennsylvania, Cheyney University and Air Liquide.

Philadelphia House Delegation Chairwoman Rep. Morgan Cephas explained that these grants will play a crucial role in the production and processing of clean hydrogen which would accelerate President Biden’s target of a 100 percent clean electrical grid by 2035 and net-zero carbon emissions by 2050.

“Our delegation applauds the selection of our city to generate and distribute hydrogen fuel,” said Cephas. “We fully support the President’s energy plan. By generating hydrogen energy not only will we access a more efficient fuel and eliminate unnecessary costs, but we would also improve air quality across our city, affect environmental justice, as well as several other benefits.”

“I applaud the Biden Administration’s bold investments in renewable energy. This is a significant step toward a cleaner and brighter future which will boost the regional economy, sparking growth across sectors, creating good-paying jobs and fostering innovative breakthroughs,” said Chellie Cameron, President and Chief Executive Officer of the Chamber of Commerce for Greater Philadelphia. “Our partners in the MACH2 group have diligently leveraged our region’s strengths as a national energy leader. With this investment from the Biden Administration, MACH2 is well-positioned to make a profound impact on our communities and our shared future.”

“The ARCH2 hydrogen hub is an incredible regional opportunity to put Appalachia at the forefront of the 21st century economy,” added Casey. “Southwestern Pennsylvania has a long, proud history of building and powering our Nation, and a hydrogen hub will bring jobs, economic growth, and clean energy innovation to the Appalachian Basin. As the Department of Energy continues to develop this hub, I will keep pushing to maximize Southwestern Pennsylvania’s footprint and ensure that Pennsylvania workers benefit as opportunities arise.”

The Appalachian Regional Clean Hydrogen Hub (ARCH2) Hub will be based in West Virginia in coordination with regional partners in Pennsylvania, Ohio, and Kentucky.

“Study after study shows the harms of fracking, especially for those who live near wells and other infrastructure,” said Food & Water Watch Pennsylvania Director Megan McDonough in a statement. “The Shapiro administration should be reining in the power of these corporations that are harming frontline communities, fouling our air, contaminating our water, and putting us at unmitigated risk with dangerous pipelines. These hydrogen hubs are not a new frontier in clean energy – it’s the same old dirty status quo, and Pennsylvanians are sick of sacrificing the health and safety of our families and communities.”





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