DOE Ends Funding for Two Clean Hydrogen Hubs, Clouding U.S. Energy Transition
The U.S. Department of Energy (DOE) has ended funding for two clean hydrogen hubs, the Alliance for Renewable Clean Hydrogen Energy Systems (ARCHES) in California and the Pacific Northwest Regional Hydrogen Hub (PNWH2), a joint venture between Washington, Oregon, and Montana. The move is part of a $7.5 billion rollback, primarily affecting projects in states leaning Democrat.
Both hubs were set to produce green hydrogen and create thousands of jobs. ARCHES was due to receive $1.2 billion from the DOE and criticized the decision as a 'short-sighted move' that abandons the United States' chance to lead the global energy transition. The terminated hubs' cancellations, along with a narrowed timeline for the 45V tax credit, paint a bleaker outlook for the U.S. clean hydrogen sector.
The funding cut encompasses 321 awards supporting 223 projects across multiple states, with only three having a Republican governor. Five hubs remain across various states, including West Virginia, Ohio, Pennsylvania, Texas, Minnesota, North Dakota, South Dakota, Delaware, New Jersey, Illinois, Indiana, and Michigan. The Fuel Cell and Hydrogen Energy Association (FCHEA) expressed disappointment, noting hydrogen's alignment with the Trump administration's goals. PNWH2 also expressed disappointment but supported the hub's potential.
The DOE's decision to terminate funding for ARCHES and PNWH2 has raised concerns about the U.S. clean hydrogen sector's future. With only five hubs remaining and a narrowed timeline for the 45V tax credit, the industry faces an uncertain outlook. The impact of these changes on job creation and the United States' role in the global energy transition remains to be seen.
