California Selected as a National Hydrogen Hub

SACRAMENTO – California will receive up to $1.2 billion from the U.S. Department of Energy to accelerate the development and deployment of clean renewable hydrogen, critical to cutting pollution and expanding the clean energy economy statewide.

What it means:

  • Up to $1.2 billion to build or expand hydrogen projects that will power public transportation, heavy-duty trucks, port operations, and more;

  • Will leverage the state’s leadership in clean energy technology to produce hydrogen exclusively from renewable energy and biomass.

Why it’s important:

  • Cuts up to 2 million metric tons of carbon emissions every year – equivalent to the pollution of 445,000 gasoline-powered cars annually;

  • Creates an estimated 220,000 new jobs, including 130,000 in construction and 90,000 permanent jobs;

  • Estimated $2.95 billion per year in economic value from better health and health cost savings;

  • 40% of the benefits from projects will flow to disadvantaged communities.

How we got here:

Governor Newsom directed GO-Biz to develop California’s Hydrogen Market Development Strategy, employing an all-of-government approach to building up California’s clean, renewable hydrogen market.

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“Today we are moving from concept to reality – advancing clean, renewable hydrogen in California which is essential to meeting our climate goals,” said Governor Gavin Newsom. “We would not be here without President Biden’s leadership and his signature Bipartisan Infrastructure Law which has served as a catalyst for the nation in addressing climate change. California’s Hydrogen Hub will cut pollution, power our clean energy economy and create hundreds of thousands of good paying jobs.”

“The production and implementation of clean, renewable hydrogen is essential to fully decarbonize our region’s industries, foster clean energy job growth, and meet California’s ambitious carbon neutrality goals,” said U.S. Senator Alex Padilla. “This monumental federal investment in the ARCHES H2 Hub will bring together leaders from across government, industry, labor unions, national labs, NGOs, and more to jumpstart the market for renewable hydrogen and establish a sustainable, clean Hydrogen Hub by 2030. The project will bring tens of thousands of good-paying jobs, cleaner air, and reduced fuel costs to our state — all while focusing their work on environmental justice and equity for disadvantaged communities. Today marks a significant and decisive investment in our green economy, and I am proud to see California and the Bipartisan Infrastructure Law pave the way to a clean energy future.”

“This award is a testament to California’s unrivaled commitment to a carbon-neutral future,” said Dee Dee Myers, Senior Advisor to the Governor, Director of GO-Biz and founding ARCHES Board Member. “There is no better place to showcase the benefits of clean, renewable hydrogen – and the role it can play in decarbonizing our economy while creating green jobs and sustainable business at scale. This critical funding will help California build a system of hydrogen projects to integrate renewable energy into our economy, resulting in cleaner air and family supporting jobs for communities across the state.”

“Today’s announcement is an extraordinary investment not just in California’s future, but for the entire country,” said Angelina Galiteva, CEO, ARCHES. “ARCHES is honored to have been chosen for such substantial funding, and we are eager to get to work to bring cutting edge projects to life up and down the state. We are grateful to President Biden and to Secretary Granholm for their dedication to a clean hydrogen future, and we look forward to rolling up our sleeves and working with our partners to advance a zero-carbon economy in a just and equitable manner that will improve the quality of life for millions of Californians.”