AWARD ANNOUNCEMENTS

 Regional Clean Hydrogen Hubs 

Hydrogen Demand-Side Initiative
OCED finalized its agreement for the Design Phase of the Regional Clean Hydrogen Hubs Program Demand-Side Initiative with the EFI Foundation and the H2DI Consortium. Through this agreement, OCED will work with H2DI to design demand-pull mechanisms to de-risk projects in the Regional Clean Hydrogen Hubs as well as a plan for executing those mechanisms. OCED expects the Design Phase to conclude this calendar year. 

 In a groundbreaking move to accelerate the clean hydrogen economy, the U.S. Department of Energy (DOE) Office of Clean Energy Demonstrations (OCED) has announced the selection of a prestigious consortium aimed at boosting the commercial viability of clean hydrogen. This initiative, backed by President Biden's Investing in America Agenda, seeks to establish Regional Clean Hydrogen Hubs (H2Hubs) and support their growth through strategic demand-side measures.

The consortium, comprising the EFI Foundation (EFIF), S&P Global (S&P), and Intercontinental Exchange (ICE), will spearhead the creation and implementation of mechanisms designed to stimulate demand for clean hydrogen. This strategic collaboration promises to unlock the market potential of the H2Hubs, ensuring long-term investment and fostering a robust clean hydrogen market.

Over the next six to nine months, the DOE, in partnership with EFIF, S&P, and ICE, will develop and refine demand-side support measures. These measures are critical for facilitating the purchase of clean hydrogen from H2Hub-affiliated projects, significantly contributing to reducing climate pollution, creating high-quality jobs, and bolstering U.S. competitiveness in energy-intensive industries and heavy-duty transportation sectors.

One of the primary challenges in establishing new energy sources like clean hydrogen is the lag in demand formation. To bridge this gap, the consortium will focus on "demand pull" measures, which have previously proven effective in scaling renewable energy technologies such as wind and solar. These measures will provide medium- to long-term offtake certainty for hydrogen producers, enabling them to secure the necessary financing to build projects, while also catering to the buyers' preference for short-term energy purchases.

The consortium will leverage its extensive expertise in clean hydrogen, project finance, and commercial contracting to design measures that de-risk clean hydrogen projects and enhance demand certainty. By crafting demand-side support agreements, EFIF, S&P, and ICE will play a pivotal role in finalizing investment decisions and fostering a mature clean hydrogen market. This initiative will not only support the growth and sustainability of the H2Hubs but also provide improved offtake certainty, attracting private sector investment and end-use buyers.

Funded by President Biden's Bipartisan Infrastructure Law and managed by OCED, the H2Hubs are integral to the Administration’s efforts to establish a strong, American-led clean hydrogen industry. This industry is poised to drive the global clean energy transition, create high-quality jobs, and deliver healthier communities nationwide. The H2Hubs initiative underscores the President's commitment to investing in America's workforce, stimulating local economic growth, and positioning the U.S. as a leader in future clean energy technologies.

For more information on the H2Hubs program and the near-term expansion of the clean hydrogen market, readers can refer to DOE’s Pathways to Commercial Liftoff Report on clean hydrogen.

For more, info visit energy.gov