Clean Energy
Two Hydrogen Hubs Respond to Sudden Federal Funding Cuts
Two west coast hubs are appealing termination of $2-billion-plus in federal funding to develop lower carbon hydrogen fuels.
Following the October cancellations of two separate $1-billion grants for "hydrogen hubs" on the West Coast, the public-private entities that represent scores of companies, institutions, agencies and others seeking to develop projects using the cleaner-burning energy source have formally appealed the Trump administration's termination of previously awarded funding while vowing to advance projects already in development.
The $1-billion grant to the Pacific Northwest Hydrogen Association hub in Washington, Oregon and parts of Montana and the $1.2-billion grant to the California-based Alliance for Renewable Clean Hydrogen Energy Systems (ARCHES) network—both awarded by the U.S Energy Dept. in 2023—were the two largest investments now yanked in a sweeping termination of $7.56 billion in federal funding from 223 projects.
The Pacific Northwest hub and ARCHES have both formally appealed the department terminations, while they also explore further legal action, the groups told ENR. “We hope these actions ultimately result in federal hub funding coming to the state,” Willie Rudman, ARCHES hub spokesperson, told ENR. “But these processes take time and have uncertain outcomes.”
The California hub also announced Nov. 4 that its operations now are on hiatus. “In response to recent changes in federal funding priorities, ARCHES will immediately pause hydrogen hub activities,” it said in a website statement.
ARCHES founders, Calif. Gov. Gavin Newsom’s Office of Business and Economic Development and the University of California, will assume oversight in a “transition,” the hub said. Other founders are the State Building and Construction Trades Council of California and think tank Renewables 100 Policy Institute.
Newsom condemned the government’s actions, saying “clean hydrogen deserves to be part of California’s energy future.”
ARCHES has more than 400 “industry and infrastructure” partners in its network, including hydrogen producers, off-takers and pipeline developers. Members include Amazon, Microsoft, Chevron, GE, General Motors, Siemens Energy, Air Products, Air Liquide, Linde, RWE, Honda, Hyundai, Toyota, Boeing, Michelin and Bosch.
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Jacobs Solutions was picked as program manager for the ARCHES hub while AtkinsRealis was named in the same role for the Pacific Northwest hub
Hub officials said the state will continue to develop green hydrogen infrastructure. “While this change reflects shifting federal investments, California remains firmly committed to developing a renewable hydrogen ecosystem as part of its broader clean energy transition,” ARCHES said. “Clean hydrogen can play a pivotal role in helping the state move away from fossil fuels."
'Viable Product'
The hub hopes to leverage renewable resources in the region to produce clean hydrogen exclusively via electrolysis, making the technology accessible to other producers while reducing the cost of hydrogen production.
The hub aims remove about 1.7 million metric tons per year of CO2 emissions, especially in heavy duty transportation and agriculture, in conjunction with California’s parallel efforts. The plan aims to enable development of a West Coast freight network.
The Pacific Northwest Hydrogen Association says that “regardless of the political fighting in Washington, D.C., hydrogen remains a viable product for energy dominance and represents a market worth hundreds of billions of dollars that generates millions of jobs.”
While hub officials say they are “disappointed” in the decision to cut funding, they still see “immense opportunity” in the region and will continue to “support our project and industry partners that have laid the foundation.” Hub officials say it is still receiving interest from interested businesses to join. “With or without federal support, this industry will continue to drive the innovation and infrastructure needed to fortify America’s energy economy," the group said.
Rudman added that despite the ARCHES pause, it is collaborating with the Pacific Northwest hub and “remains committed to building a renewable hydrogen market along the West coast and beyond.”
The groups have not received a timeline for when an appeal will be heard, with alternate legal strategies still in development in both regions. DOE did not respond to an ENR query before story publication seeking more detail on the agency appeals process and timing.
Wash. Gov. Bob Ferguson called the canceling of energy grants “outrageous” and pledged to fight the decision. Mike Faulk, spokesperson for the State Attorney General’s Office, told ENR his office has not filed litigation and is “still reviewing the federal government’s actions here.”
According to DOE, the funding terminations followed reviews it claims showed projects did not adequately advance the nation’s energy needs, were not economically viable and would not provide a positive return on investment of taxpayer dollars.
Federal funding also is believed to be in jeopardy at the five other hubs that appeared on a DOE list as having grants "terminated," but their status could not be confirmed at ENR press time.
Pennsylvania Gov. Josh Shapiro, a Democrat who has strongly supported the state's two funded hydrogen hubs and has an "all of the above" energy policy approach, stated through a spokesperson that cancelled funding for their projects “would jeopardize tens of thousands of building trades jobs" across the state.
