The outlook for U.S. hydrogen hubs: Who’s applying and what they could achieve

The U.S. Department of Energy (DOE) is funding between four and ten Regional Clean Hydrogen Hubs (H2Hubs) using $8 billion allocated by the 2021 Infrastructure Investment and Jobs Act (IIJA). These hubs are designed to catalyze domestic clean hydrogen production and operationalize the DOE's Hydrogen Shot goal of reducing production costs by 80% to $1 per kilogram within ten years. Applicants are evaluated on feedstock diversity (requiring demonstrations from fossil fuels, renewable energy, and nuclear energy), end-use diversity (covering electric power, industrial, residential/commercial heating, and transportation), a minimum 50% non-federal cost share, and community benefits plans aligned with the Justice40 Initiative. The program aims to decarbonize hard-to-electrify sectors—which accounted for nearly 16% of U.S. emissions in 2018—and foster hydrogen-fueled transportation corridors and export potential. Financial viability is further supported by the Inflation Reduction Act's Section 45V tax credit, offering up to $3.00 per kilogram of clean hydrogen for projects starting construction before 2033.

• The DOE's H2Hubs program is funded by an $8 billion allocation from the 2021 Infrastructure Investment and Jobs Act (IIJA) to establish between four and ten localized centers for hydrogen production, transportation, storage, and end-use.
• To ensure diversity in the hydrogen economy, the IIJA mandates that the funded hubs demonstrate production from three specific sources: fossil fuels, renewable energy, and nuclear energy, as well as end-use in four sectors: electric power generation, industrial, residential and commercial heating, and transportation.
• The program emphasizes social equity and local economic development, requiring community benefits plans (CBPs) that account for 20% of the technical and merit review, with a mandate that 40% of benefits flow to historically disadvantaged communities under the Justice40 Initiative.
• The hubs are expected to target hard-to-electrify sectors—including steel making, aviation, marine shipping, and heavy-duty trucking—which were responsible for nearly 16% of U.S. emissions in 2018.

APA

Kent, E., & Menke, A. (2023). The outlook for U.S. hydrogen hubs: Who’s applying and what they could achieve. Clean Air Task Force. https://www.catf.us/2023/03/outlook-us-hydrogen-hubs/

Chicago

Kent, Emily, and Anna Menke. The outlook for U.S. hydrogen hubs: Who’s applying and what they could achieve. Clean Air Task Force, 2023. https://www.catf.us/2023/03/outlook-us-hydrogen-hubs/.

Wikipedia

{{cite report |last1=Kent |first1=Emily |last2=Menke |first2=Anna |title=The outlook for U.S. hydrogen hubs: Who’s applying and what they could achieve |publisher=Clean Air Task Force |date=29 March 2023 |url=https://www.catf.us/2023/03/outlook-us-hydrogen-hubs/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{kent2023outlook, author = {Kent, Emily and Menke, Anna}, title = {{The outlook for U.S. hydrogen hubs: Who’s applying and what they could achieve}}, institution = {Clean Air Task Force}, year = {2023}, month = mar, url = {https://www.catf.us/2023/03/outlook-us-hydrogen-hubs/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }