Regional Clean Hydrogen Hubs
October 13, 2023
Today - October 13, 2023 - President Biden and Energy Secretary Jennifer Granholm announced seven regional clean hydrogen hubs that were selected to receive $7 billion in Bipartisan Infrastructure Law funding to accelerate the domestic market for low-cost, clean hydrogen. As a potentially large end-user of clean hydrogen fuel in zero emission buses - SEPTA was an initial partner in the development of the Mid-Atlantic Hydrogen Hub (MACH2).
Advancing clean hydrogen is essential to achieving the President’s vision of a strong clean energy economy that strengthens energy security, bolsters domestic manufacturing, creates healthier communities, and delivers new jobs and economic opportunities across the nation. The announcement is part of the third installment of the Investing in America tour during which President Biden traveled to Philadelphia to announce the historic investment in manufacturing and jobs.
“This is a tremendous opportunity for our region that will position us as a leader in clean energy innovation for the next century,” said SEPTA Chairman Pasquale T. Deon Sr. “As a potentially large end-user of clean hydrogen fuel in our zero-emission bus fleet of the future - SEPTA was an initial partner in the development of the MACH2 proposal and I am proud of the SEPTA team for lending their expertise to this effort. We applaud our Congressional delegation for creating this forward-looking program in the Bipartisan Infrastructure Law and for working closely with the coalition to secure this win for our region.”
SEPTA General Manager/CEO Leslie Richards added: “SEPTA has a strong record as an early adopter of clean vehicle technology and we have established an ambitious goal to convert our entire bus fleet to zero-emission vehicles by 2040. As we evaluate the various technologies - SEPTA will begin piloting hydrogen fuel cell buses next year and the establishment of this hub holds great promise for SEPTA, its customers, and the communities we serve.”
The seven selected regional clean hydrogen hubs will catalyze more than $40 billion in private investment and create tens of thousands of good-paying jobs – bringing the total public and private investment in hydrogen hubs to nearly $50 billion. Roughly two-thirds of total project investment are associated with green (electrolysis based) production within the hubs. Several of the hubs were developed in close partnerships with unions - with three requiring project labor agreements (PLAs). In addition to job creation and creating healthier air for communities - the selected hydrogen hubs are committed to robust Community Benefit Plans to ensure local priorities are at the forefront and all communities share in the benefits of the clean energy transition.
Collectively - the hubs aim to produce more than three million metric tons of clean hydrogen per year, thereby achieving nearly one third of the 2030 U.S. clean hydrogen production goal. Together, the seven Hydrogen Hubs will eliminate 25 million metric tons of carbon dioxide emissions from end uses each year—an amount roughly equivalent to combined annual emissions of over 5.5 million gasoline-powered cars. The nearly $50 billion investment is one of the largest investments in clean manufacturing and jobs in history.
The local regional hub selected for negotiation includes:
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Mid-Atlantic Hydrogen Hub (Mid-Atlantic Clean Hydrogen Hub (MACH2); Pennsylvania, Delaware, New Jersey) — The Mid-Atlantic Hydrogen Hub will help unlock hydrogen-driven decarbonization in the Mid-Atlantic while repurposing historic oil infrastructure and using existing rights-of-way. It plans to develop renewable hydrogen production facilities from renewable and nuclear electricity using both established and innovative electrolyzer technologies where it can help reduce costs and drive further technology adoption. As part of its labor and workforce commitments to the community - the Mid-Atlantic Hydrogen Hub plans to negotiate Project Labor Agreements for all projects and provide close to $14 million for regional Workforce Development Boards that will serve as partners for community college training and pre-apprenticeships. This Hydrogen Hub anticipates creating 20,800 direct jobs—14,400 in construction jobs and 6,400 permanent jobs. (Amount: up to $750 million)
Clean hydrogen can reduce emissions in many sectors of the economy and is especially important for hard-to-decarbonize sectors and industrial processes such as heavy-duty transportation and chemical, steel, and cement manufacturing. Targeted investments in these areas can help reduce costs, make new breakthroughs, and create jobs for American engineers, manufacturing workers, construction workers, and others.
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