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California receives funding for new hydrogen hubs


Part of Bipartisan Infrastructure Deal

Over the last few years, California leaders have created several initiatives and programs to create green jobs for the community and provide a better infrastructure to use renewable energy resources to support the energy grid. One of the power sources being funded by the collective is clean hydrogen energy aimed at decarbonizing the California economy, creating better air quality and a more accessible energy resource for the state. 

Hydrogen is created from different sources like natural gas, nuclear power, biomass, and renewable sources such as wind and solar. When it’s burned in a fuel cell, the byproduct is water or water vapor, not carbon dioxide.

In 2021, Congress passed the Bipartisan Infrastructure Deal to reduce greenhouse emissions in transportation, repair and rebuild roads and bridges. The Bipartisan Infrastructure Deal focused on climate change mitigation, resilience, equity, and upgrading power infrastructure to deliver clean, reliable energy across the country and deploy cutting-edge energy technology to achieve a zero-emissions future. California leaders took this deal as a sign to focus and find a power source that will effectively and efficiently serve California residents, and in 2022, the Governor’s Office of Business and Economic Development, the University of California Office of the President, Renewables 100, alongside state and local officials, formally announced the formation of the Alliance for Renewable Clean Hydrogen Energy Systems (ARCHES).

The alliance was designed to establish a federally co-funded renewable hydrogen hub in the California region and create an economically sustainable and expanding renewable hydrogen market in California and beyond. “California is leading the nation – and the world – in the fight against climate change,” said Gov. Gavin Newsom. “We’re more prepared and better positioned than any other state to build a federal hydrogen hub to continue our rapid progress toward a carbon-neutral economy. We look forward to working with our critical partners to deliver lasting results that will be felt by every family in California – clearer air, better jobs, and greater resilience as we face climate change head-on.”

ARCHES asked the U.S. Department of Energy for 1.25 billion dollars to scale up hydrogen hubs in the state to fulfill the expectations set and accomplish the goals. This funding will help create jobs, find a solution for climate control, and create a carbon-neutral economy for California. It took over a year, but the funding and support needed from the Department of Energy finally came. On Oct. 13, the Biden administration announced $7 billion in financing through the Bipartisan Infrastructure Deal that went to seven hydrogen hubs to accelerate the domestic market for low-cost, clean hydrogen. Each winner will catalyze more than $40 billion in private investment to create good-paying jobs.   

“Thank you to the Biden Administration for continuing to lock arms with us to deliver for the people of Los Angeles,” said Mayor Karen Bass. “Last week, California received more than $1 billion in funding for the nation’s first clean hydrogen hubs, and today, the City of Los Angeles has been awarded $48 million which will help us ensure that all Angelenos have access to affordable and reliable clean electricity at all times. I want to thank the Department of Energy for delivering for Los Angeles and propelling us towards our clean air and carbon pollution reduction goals.”