US Energy Department Axes $2.2bn in Clean Hydrogen Hub Funding
The US Department of Energy has terminated funding for two clean hydrogen hubs, ARCHES and PNWH2, totaling $2.2bn. This decision is part of a wider $7.5bn rollback, largely targeting projects in Democrat-leaning states.
The hub cancellations and a narrowed 45V timeline paint a bleaker outlook for the USA clean hydrogen sector. ARCHES and PNWH2 were primarily focused on producing green hydrogen and promised to create thousands of jobs. Energy Secretary Chris Wright said the funding cut delivered on Trump's commitment to 'protect taxpayer dollars' and expand USA fossil fuel production.
The funding stemmed from the Biden administration's $8bn clean regional hydrogen hubs programme under the Bipartisan Infrastructure Law. The total cut encompasses 321 awards supporting 223 projects across multiple states, with only three having a Republican governor. The decision leaves five hubs remaining across various states.
The Fuel Cell and Hydrogen Energy Association (FCHEA) expressed disappointment, describing hydrogen as 'strongly aligned' with the Trump administration's goals. The US Department of Energy orchestrated the termination of funding for the hydrogen hubs in California and the Pacific Northwest, canceling a combined total of $2.2 billion to cut federal spending.
The termination of funding for ARCHES and PNWH2, along with other projects, raises questions about the future of the USA clean hydrogen sector. While the Energy Secretary cited protecting taxpayer dollars and expanding fossil fuel production, the decision leaves many projects in limbo and may impact job creation in the sector.
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