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$7 Billion to Hydrogen Hubs: What the Biden Plan Includes to Boost the Emerging Industry

The California hydrogen hub, which was awarded $1.2 billion, aims to leverage existing clean energy technology, and produce hydrogen from renewable energy and biomass with a model for decarbonizing public transportation. The Gulf Coast hub focuses on large-scale hydrogen production through natural gas with carbon capture and electrolysis powered by renewable sources.

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Seven “hydrogen hubs” located in 16 U.S. states will receive, in total, $7 billion in federal grants to boost the emerging industry.

The plan proposed by President Biden will serve to increase clean hydrogen production to 10 million metric tons by 2030 and 50 million metric tons by 2050, five times more than today. The regional hubs, which will be connected with new and existing infrastructure, aim to accelerate the domestic market for low-emission, low-cost hydrogen.

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Where the 7 hydrogen hubs are located

Among the hydrogen hubs involved in the U.S. administration’s proposed plan is the Mid-Atlantic hydrogen hubs in Pennsylvania, Delaware, and New Jersey, which has been allocated $750 million to unlock hydrogen-driven decarbonization and reuse historic oil infrastructure.

The project will be used to develop renewable hydrogen production facilities powered by renewable energy and nuclear electricity. The $925 million Appalachian hydrogen hub in West Virginia, Ohio, and Pennsylvania, aims to leverage the region’s access to low-cost natural gas to produce low-cost clean hydrogen and store associated carbon emissions.

The California hydrogen hub, which was awarded $1.2 billion, aims to leverage existing clean energy technology and produce hydrogen from renewable energy and biomass with a model for decarbonizing public transportation, heavy trucking, and port operations.

The Gulf Coast hub, which received the same amount as the California hub, focuses on large-scale hydrogen production through natural gas with carbon capture and electrolysis powered by renewable sources.

The “heartland” hub in Minnesota, North Dakota, and South Dakota, which received $925 million, helps decarbonize agricultural fertilizer production, reduces the regional cost of clean hydrogen, and promotes the use of clean hydrogen in electric generation and for space heating in cold climates.

The $1 billion Midwest hydrogen hub, centered in the U.S. industrial and transportation corridor, will power steel and glass production, power generation, refining, heavy transportation, and sustainable aviation fuel.

Finally, the similarly sized Pacific Northwest hydrogen hub will be used to produce clean hydrogen exclusively from renewable sources. The administration hopes that the size of this hub will play a key role in reducing the cost of electrolyzers and making hydrogen more affordable.

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(Featured image by geralt via Pixabay)

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First published in StartupItalia. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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J. Frank Sigerson is a business and financial journalist primarily covering crypto, cannabis, crowdfunding, technology, and marketing. He also writes about the movers and shakers in the stock market, especially in biotech, healthcare, mining, and blockchain. In the past, he has shared his thoughts on IT and design, social media, pop culture, food and wine, TV, film, and music. His works have been published in Investing.com, Equities.com, Seeking Alpha, Mogul, Small Cap Network, CNN, Technology.org, among others.