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The U.S. Department of Energy (DOE) is releasing this Funding Opportunity Announcement (FOA) to solicit Regional Clean Hydrogen Hubs (H2Hubs) in accordance with the Infrastructure Investment and Jobs Act (IIJA), also known as the Bipartisan Infrastructure Law (BIL). This $8 billion effort will catalyze investment in the development of H2Hubs that demonstrate the production, processing, delivery, storage, and end-use of clean hydrogen, in support of the Biden Administration’s goal to achieve a carbon-free electric grid by 2035 and a net zero emissions economy by 2050.
The H2Hubs will form the foundation of a national clean hydrogen network that will contribute substantially to decarbonizing multiple sectors of the economy. Matching the scale-up of clean hydrogen production to a growing regional demand is a key pathway to achieving large-scale, commercially viable hydrogen ecosystems. H2Hubs will enable this pathway by demonstrating low-carbon intensity and economically viable hydrogen-based energy ecosystems that can replace existing carbon-intensive processes. This will accelerate the deployment of these technologies and enabling infrastructure, attract greater investments from the private sector, and promote substantial U.S. manufacturing of numerous hydrogen related technologies.
Each H2Hub will include multiple partners that will bring together diverse hydrogen technologies to produce and utilize large amounts of hydrogen in different ways. These clean hydrogen demonstrations will balance hydrogen supply and demand, connective infrastructure, and a plan for long-term financial viability. The H2Hubs will also include substantial engagement of local and regional stakeholders, as well as Tribes, to ensure that they generate local, regional, and national benefits. H2Hubs will be expected to carry out meaningful community and labor engagement; invest in America’s workforce by creating good-paying jobs with the free and fair choice to join a union; advance diversity, equity, inclusion, and accessibility; and contribute to the President’s Justice40 Initiative goal that 40% of the overall benefits of certain federal investments flow to disadvantaged communities.
DOE has defined a four-phase structure for the H2Hubs. Phase 1 will encompass initial planning and analysis activities to ensure that the overall H2Hub concept is technologically and financially viable, with input from relevant local stakeholders. Phase 2 will finalize engineering designs and business development, site access, labor agreements, permitting, offtake agreements, and community engagement activities necessary to begin installation, integration, and construction activities in Phase 3. Phase 4 will ramp-up the H2Hub to full operations including data collection to analyze the H2Hub’s operations, performance, and financial viability. This FOA will solicit plans for all four phases of proposed H2Hub activities; however, DOE will only initially authorize funding for Phase I. DOE’s review and evaluation of deliverables reflecting activities in each phase will inform Go/No-Go decisions that occur between or within Phases.
For this initial FOA launch, DOE envisions selecting six (6) to ten (10) H2Hubs for a combined total of up to $6-7 billion in federal funding. DOE may issue a second launch of this FOA to solicit additional H2Hubs beyond those selected in the initial launch. Other FOA launches or use of Other Transaction Authorities may also be used to solicit new technologies, capabilities, end-uses, or partners.