Hydrogen hubs are key to domestic energy production and regional economies across the U.S.
Hydrogen hubs are intended to test, develop, and demonstrate technologies needed to minimize emissions intensity of hydrogen production, and the Regional Clean Hydrogen Hubs program is at a pivotal moment. Despite significant progress, support, and investment in the seven selected hydrogen hubs, there are reports that the Trump administration is planning significant cuts for clean energy projects, including the hubs, as the new administration reviews existing federal grant programs. These cuts would harm regional economies across the U.S. and would be antithetical to the administration’s stated goals to bolster domestic energy production and American competitiveness.
Hydrogen hubs are estimated to create hundreds of thousands of good-paying jobs across the U.S.
Since the hydrogen hubs were announced, they have catalyzed economic opportunities across their respective regions, attracting private sector investment and creating high-paying jobs. Together, the seven hubs are expected to create hundreds of thousands of jobs through construction and operation (Table 1) in addition to retaining skilled labor and jobs in the energy sector that will be sustained throughout the energy transition. A wide variety of stakeholders – including local government, academia, industry, transportation, utilities, infrastructure, labor and workforce, local businesses, NGOs, and more – have taken note of economic benefits. The breadth of partners indicates the significant impact each hub has on not only the local economies of the states in which projects are located, but also the neighboring regions that will benefit from economic ripple effects. The full list of supporters for each hub can be found here, under the “selected hubs” tab.
Table 1: Expected jobs created associated with each hydrogen hub
| Hydrogen Hub | States | Expected Jobs Created |
|---|---|---|
| Appalachian Hydrogen Hub (ARCH2) | West Virginia, Ohio, Pennsylvania1 | 21,000 direct jobs (18,000+ construction and 3,000+ permanent) |
| California Hydrogen Hub (ARCHES) | California | 220,000 direct jobs (130,000 construction and 90,000 permanent) |
| Gulf Coast Hydrogen Hub (HyVelocity) | Texas, Louisiana | 45,000 direct jobs (35,000 construction, 10,000 permanent) |
| Centro de hidrógeno de Heartland | North Dakota, South Dakota, Minnesota, Montana, Wisconsin | 3,880 direct jobs (3,067 construction and 703 permanent) |
| Mid-Atlantic Hydrogen Hub (MACH2) | Pennsylvania, Delaware, New Jersey | 20,800 direct jobs (14,400 construction and 6,400 permanent) |
| Midwest Hydrogen Hub (MachH2) | Illinois, Indiana, Michigan2 | 13,600 direct jobs (12,100 construction and 1,500 permanent) |
| Pacific Northwest Hydrogen Hub (PNWH2) | Washington, Oregon, Montana | 10,000 direct jobs (8,050 construction and 350 permanent) |
2 Projects are concentrated in Illinois, Indiana, and Michigan, but MachH2 also has representation from Kentucky, Missouri, Ohio, and Wisconsin
Hydrogen hubs will bolster domestic clean hydrogen production and support U.S. competitiveness
In addition to driving local economic growth, the hydrogen hubs will bolster the domestic clean hydrogen market and keep the U.S. competitive in the global hydrogen market, benefits that are well aligned with the Trump administration’s priorities to:
- Expand all forms of reliable and affordable domestic energy production. Hydrogen should not be excluded from an all-of-the-above approach to domestic energy production. Hydrogen can be produced via many different pathways that are both reliable and affordable – including from natural gas with carbon capture, nuclear energy, biomass, and renewable energy – with the cost continuing to decrease. Moreover, hydrogen is already a key component of existing industrial processes and is an important feedstock for a variety of transportation fuels.
- Enhance private sector investment. The private sector is eager to invest in hydrogen production, as evidenced by the magnitude of private sector dollars – tens of billions – already contributing to projects affiliated with the hydrogen hubs and clearly sees the trajectory of hydrogen as an important energy carrier of the future.
- Grow the economy. As shown above, the hydrogen hubs are expected to create an estimated 334,280 good-paying jobs. The jobs and other economic benefits of the hubs will impact both the states that host hub-affiliated projects and neighboring states and regions. Promoting the domestic hydrogen economy also positions the U.S. to be a global leader in hydrogen production and innovative technologies and could lead to bolstering the economy through exports of both hydrogen-derived products and fuels and various supply chain technologies.
- De-risk energy supply chains. Building a robust U.S. hydrogen economy through the hydrogen hubs program promotes research, development, deployment, and production of innovative technologies needed along the hydrogen supply chain. Building these supply chains domestically will de-risk energy production and bring the U.S. to the cutting-edge of technology globally.
- Bolster domestic manufacturing. Growing the hubs and the hydrogen economy enables domestic manufacturing in a variety of industries, including long-haul transportation and the production and refining of steel, cement, glass, chemicals, and electrolyzers. The hubs will generate the hydrogen needed for these processes and guarantee offtakers, building out the domestic supply chains by stimulating both supply and demand.
All of the selected hubs are necessary for a robust hydrogen network that delivers on domestic manufacturing and energy production
Developing a large network of hydrogen producers and end-users increases each individual hub’s likelihood of success by creating a larger customer base for producers and a more widespread and competitive market for end-users (see graphic above). For example, if hubs were developed in Houston and Chicago, the ability to move goods between Houston and Chicago in hydrogen-fueled trucks (as well as to points in between) would strengthen the case for hydrogen trucks purchased in those regions — which in turn would benefit hydrogen truck manufacturers and hydrogen fuel producers in both regions. More on the importance of transportation corridors here.
For hydrogen to become a widely traded energy commodity, the hydrogen industry needs to build out regional, national, and global networks of producers and offtakers. Companies are not going to invest in hydrogen-fueled equipment if hydrogen is only available in some pockets of the country. Without widespread investment in hydrogen-fueled equipment, demand for hydrogen won’t grow and it will remain a niche product that’s only sold locally. Each hub represents a regional hydrogen ecosystem that is part of a larger national network of hubs, bringing support to the industrial and transportation sectors across the country. Because of the network effect the hubs will have on each other, even hubs reported to be “safe” from rescission will be in jeopardy of losing the benefits of a national network if other hubs are canceled. Cutting funding from any portion of the hydrogen hubs program will hinder a robust domestic hydrogen economy and the development of individual hubs.
Hydrogen hubs can expand energy production and support an all-of-the-above energy strategy
Congress should not impede thoughtful expanded energy production, especially given Congress’s and the administration’s support of expanding all forms of reliable and affordable domestic energy production. Hydrogen is an important energy carrier for the future, especially in the transportation and industrial sectors, as the global market shifts towards innovative energy sources, fuels, and feedstocks. Following through on a robust regional hydrogen hubs plan is a sound, all-of-the-above energy policy.
The U.S. is well-positioned to be a world leader in hydrogen production and hydrogen end-use technology development. The U.S. can become the world’s leading high-volume, low-cost, low-carbon hydrogen producer by leveraging its strong comparative advantages in the supply of key feedstocks (especially natural gas and renewables), existing infrastructure (such as hydrogen pipelines in the Gulf Coast), and carbon sequestration technology and capacity. Moreover, different global markets and applications will favor different hydrogen production pathways, so the U.S. will benefit from building out a mix of hydrogen production pathways and technologies. For example, an ammonia-fueled cargo ship that refuels in the U.S. before offloading its cargo in Rotterdam may be able to earn additional compliance credits in Europe if the ammonia was made using renewable-energy-derived hydrogen.
Industry has already invested in hydrogen hubs and policy certainty is critical for continued support
Billions of dollars of private sector funds have already been invested in the hydrogen hubs and related projects based on the promises made by the federal government. Companies do not want their investments wasted because of trust-eroding policy change. The continued environment of uncertainty creates new reasons for investors and the private sector to withdraw existing commitments or delay additional investment in the hydrogen hubs. The result: projects are being significantly delayed, or in many cases cancelled, as the private sector does not feel comfortable operating within this level of uncertainty – putting American jobs at risk. This environment is not incentivizing investment in the U.S. energy economy, and could drive companies away from the U.S. Now is not the time to pull the rug out from under industry and investors.
Federal cuts to the hydrogen hubs threaten U.S. leadership and economic growth
The U.S. is well-positioned to lead in hydrogen production and end-use technology development, but dismantling the hubs program – and weakening the network of hydrogen hubs – would jeopardize the growth of the domestic hydrogen economy. Not only are the hubs key to bolstering American innovation, creating a robust hydrogen market, and driving economic growth, but they also have strong bipartisan support. Congress and the administration must maintain funding and management support for the hydrogen hubs program to preserve the jobs and investments they will bring to communities across the country.
