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Biden Government To Drive Hydrogen Hubs With $7bn Funding

in News, Renewable Power

Note* - All images used are for editorial and illustrative purposes only and may not originate from the original news provider or associated company.

According to the Guardian, the US Department of Energy has chosen 7 projects to participate in a $7 billion programme aimed at establishing new hubs that are dedicated to the advancement and manufacturing of hydrogen fuel. The White House announced that the programme will significantly support the country’s emerging clean hydrogen industry, aiding in the achievement of its environmental goals.

The funding will be allocated to proposed hydrogen projects located in various regions, like the Gulf Coast, Appalachia, mid-Atlantic, midwest, Pacific Northwest, upper midwest, and California. This initiative aims to provide a substantial boost to the growth of clean hydrogen technologies across these listed areas. Numerous regions battled for funding from the $7 billion allocation, which was allocated in the 2021 bipartisan infrastructure law. According to the US Department of Energy, the funding is anticipated to contribute to a reduction of 25 million metric tonnes of CO2 emissions every year. This reduction is the same as removing approximately 5.5 million gasoline-powered vehicles from the road annually.

According to Reuters, it is anticipated that the grants will result in more than $40 billion in private investment and contribute to the establishment of a nationwide hydrogen economy. As per the New York Times, President Joe Biden as well as Energy Secretary Jennifer Granholm stated the funding at the Port of Philadelphia, with the president calling the decision transformational.

Biden emphasised the importance of clean hydrogen produced using resources such as wind and solar power. This strategy allows them to reach a point where they are no longer contributing to carbon emissions in the atmosphere.

They are committed to building a clean-energy future in America, spanning from coast to coast and reaching the heart of the country. They will not rely on other nations to achieve this goal. The Financial Times highlights that numerous fossil fuel companies were among the recipients of the funding. The projects consist of a $1.2 billion investment in a hydrogen hub located in Texas, which has partnered with major oil companies ExxonMobil as well as Chevron.

An additional $925 million will be granted to a project that is being implemented in West Virginia. This project is being carried out in partnership with Marathon Petroleum and EQT. Both hubs will likely primarily generate hydrogen from fossil fuels while also implementing emissions capture technology. According to the newspaper, the announcement has the potential to draw condemnation from clean energy and environmental groups. These groups have been urging the Biden administration to minimise funding for hydrogen projects that rely on fossil fuels. According to Axios, this initiative is considered to be the largest effort in the US so far to encourage the production of renewables, nuclear energy, or carbon capture. However, Axios also mentions that there is a lengthy and uncertain path ahead before these projects can actually materialise.

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