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The U.S. Department of Energy has announced a $12.6 billion deal for a clean hydrogen hub in California, funded partly by the Bipartisan Infrastructure Law.
California Secures $12.6 Billion Clean Hydrogen Hub Deal to Drive Emissions Reduction and Energy Innovation
The U.S. Department of Energy (DOE) has signed a major $12.6 billion deal to create a “clean” hydrogen hub in California. Announced on Wednesday, this agreement includes $1.2 billion in federal funding from the Bipartisan Infrastructure Law, with the rest coming from public and private sources. Governor Gavin Newsom and Senator Alex Padilla have praised the deal and calling it a big step in California’s efforts to reduce pollution and improve energy use, according to the report of The Daily Caller.
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(photo: University of California)
Hydrogen Hub Project Faces Scrutiny Over Cost and Emissions
However, some critics are concerned about the cost and effectiveness of “clean” hydrogen. Making clean hydrogen is much more expensive than using natural gas, and it requires a lot of energy, which might mean relying on the electric grid. This raises doubts about whether the environmental benefits will outweigh the emissions from using electricity leading to calls for stricter rules on hydrogen producers.
The federal money for this hydrogen hub is only a small part of the overall funding for clean energy projects from the Bipartisan Infrastructure Law, which was passed in November 2021. The hydrogen project will receive about 1.7% of the $70 billion set aside for clean energy. Despite this, DOE spokesperson Jeremy Ortiz said the project fits with President Biden’s plan for a strong clean energy economy aiming to create jobs improve energy security and benefit communities across the country.
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