U.S. DOE, ARCHES sign $12.6-B hydrogen hub project in California (U.S.)
The U.S. Department of Energy (DOE) and ARCHES announced the official signing of a landmark $12.6-B agreement to build a clean, renewable hydrogen hub in California (U.S.), including the up to $1.2 B in federal funding that was announced last year when California was selected as a national hub. ARCHES is the first of seven Hydrogen Hubs throughout the country to officially sign their agreement with the DOE.
The ARCHES hub will facilitate a network of clean, renewable hydrogen production sites to cut fossil fuel use throughout California, with the ultimate goal of decarbonizing public transportation, heavy duty trucking, and port operations by 2 MMtpy – roughly the equivalent to annual emissions of 445,000 gasoline-fueled cars.
Why it’s important
- Cuts up to 2 million metric tons of carbon emissions every year – equivalent to the pollution of 445,000 gasoline-powered cars annually;
- Creates an estimated 220,000 new jobs, including 130,000 in construction and 90,000 permanent jobs;
- Estimated $2.95 billion per year in economic value from better health and health cost savings;
- At least 40% of the benefits from projects will flow to disadvantaged communities through community directed investments, workforce training, and family supporting jobs.
What’s getting decarbonized
- 3 large ports with over 200 pieces of cargo-handling equipment
- 5,000+ fuel-cell-electric trucks
- 1,000+ fuel-cell-electric buses
- 1 marine vessel
- Turbines and stationary fuel cells
- Develop infrastructure for hydrogen transport and use, including 60 heavy-duty fueling stations and 165 miles of open-access pipelines.
How we got here
- California released the world’s first plan to achieve net-zero carbon pollution, which will utilize hydrogen to cut pollution and ramp up clean energy;
- Governor Newsom directed GO-Biz to develop California’s Hydrogen Market Development Strategy, employing an all-of-government approach to building up California’s clean, renewable hydrogen market;
- California submitted an application in April of 2023 through the Alliance for Renewable Clean Hydrogen Energy Systems (ARCHES), a statewide public-private partnership to build the framework for California’s renewable, clean hydrogen hub;
- ARCHES is one of thousands of infrastructure initiatives building California’s future. Find more projects in your community at build.ca.gov.
What ARCHES leaders are saying
“I was proud to help secure $1.2 billion of federal investments through the Bipartisan Infrastructure Law to build a hydrogen hub right here in California,” said Senator Alex Padilla (D-Calif.). “The path to achieving California’s ambitious clean energy goals runs through ARCHES, and I’m excited to see the California Hydrogen Hub kickoff with this initial round of funding. California is leading the nation with the first hydrogen hub to sign a cooperative agreement, and we will continue to lead by decarbonizing goods movement, the energy sector, and heavy industry.”
“The Department of Energy’s announcement to fund ARCHES is a monumental step forward in the state’s efforts to achieve its air quality, climate and energy goals, while improving the health and wellbeing of Californians and creating new green jobs across the state,” said Angelina Galiteva, CEO, ARCHES. “We are grateful to the DOE for its commitment to building a sustainable hydrogen ecosystem and marketplace and look forward to working with our project partners, stakeholders and diverse communities throughout the State to make this project a success.”
“Formally signing this Cooperative Agreement with the Department of Energy to develop California’s Renewable Hydrogen Hub is a pivotal milestone on California’s march to carbon neutrality—economy wide,” said GO-Biz Director and Senior Advisor to Governor Gavin Newsom, and founding ARCHES Board Member Dee Dee Myers. “We are eager to put Californians to work building the future—a future powered by clean, renewable hydrogen that benefits all California’s residents.”
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