California became the first state in the U.S. to launch a hydrogen hub with the announcement of a funding agreement with the Department of Energy on July 17. 

DOE’s Office of Clean Energy Demonstrations awarded $30 million to the California hydrogen hub, in what OCED described as a first installment in what could be as much as $1.2 billion in federal funding. 

The federal money will be matched with $11.4 billion in public and private funds, for a total of up to $12.6 billion, under an agreement between DOE and the Alliance for Renewable Clean Hydrogen Energy Systems. ARCHES is a public-private partnership that’s leading the California hydrogen hub. 

The California hub is one of seven regional hydrogen hubs across the nation that DOE designated in October 2023 for potential funding. ARCHES is the first of the seven to sign an official agreement with DOE. 

“California is leading the nation with the first hydrogen hub to sign a cooperative agreement, and we will continue to lead by decarbonizing goods movement, the energy sector and heavy industry,” U.S. Sen. Alex Padilla (D-Calif.) said in a statement.

The federal funding is from the Bipartisan Infrastructure Law, which is providing up to $7 billion for regional hydrogen hubs throughout the U.S. 

Ports and Transportation

The California hydrogen hub will focus on decarbonizing seaport operations, heavy-duty trucking and public transportation. 

The goal is to cut carbon emissions by about 2 million metric tons per year, roughly equivalent to the emissions of 445,000 gasoline-powered cars. 

“We’re going to use clean, renewable hydrogen to power our ports and public transportation — getting people and goods where they need to go, just without the local air pollution,” Gov. Gavin Newsom (D) said in a statement. 

The plan includes decarbonizing cargo-handling equipment at the ports of Oakland, Los Angeles and Long Beach.  

It aims for more than 5,000 fuel-cell electric trucks and 1,000 fuel-cell electric buses, to be supported by more than 60 hydrogen fueling stations. ARCHES said this may lead to an expanded clean freight network on the West Coast that is linked to the Pacific Northwest Hydrogen Hub. 

As part of the hydrogen hub, the Los Angeles Department of Water and Power and Northern California Power Agency will convert certain power plants to 100% renewable hydrogen. 

The plan even includes a marine vessel. A hydrogen-hybrid research vessel is being designed for the Scripps Institution of Oceanography at the University of California-San Diego. 

Clean, renewable hydrogen produced at more than 10 sites will fuel the projects and prompt the growth of a greater hydrogen ecosystem, according to ARCHES. 

The project also aims to make clean hydrogen in California cheaper than diesel and other traditional fuels by 2030. 

ARCHES said it will announce more projects soon. 

The first tranche of funding will allow ARCHES to begin Phase 1 of the project, which involves planning, analysis and work with communities and stakeholders. Phase 1 is estimated to take 18 months. 

Seven Hubs Selected

DOE’s hydrogen hub selection process started with an initial group of 79 preliminary applications filed by a November 2022 deadline. From that group, DOE encouraged 33 to advance to the next stage by submitting full applications. 

DOE announced in October 2023 its designation of seven hydrogen hubs to potentially receive funding. (See DOE Designates Seven Regional Hydrogen Hubs.) 

The seven hubs are: 

• • California Hydrogen Hub (California) 
  • Appalachian Hydrogen Hub (West Virginia, Ohio, Pennsylvania) 
  • Gulf Coast Hydrogen Hub (Texas) 
  • Heartland Hydrogen Hub (Minnesota, North Dakota, South Dakota) 
  • Mid-Atlantic Hydrogen Hub (Pennsylvania, Delaware, New Jersey) 
  • Midwest Hydrogen Hub (Illinois, Indiana, Michigan) 
  • Pacific Northwest Hydrogen Hub (Washington, Oregon, Montana) 

DOE noted at the time that its selection of the hubs was not a promise to provide funding, which is subject to a negotiation process.