PNWH2: An Overview

The U.S. Department of Energy’s (DOE) Regional Clean Hydrogen Hubs Program under the Infrastructure Investment and Jobs Act – a planned $7 billion federal investment in a nationwide clean hydrogen network – aims to drive investment in the development of regional hydrogen hubs to achieve the goal of a carbon-free electric grid by 2035 and a net zero emissions economy by 2050.

In October 2023, DOE selected seven hydrogen hubs throughout the country – including the PNWH2 Hub – to enter award negotiations following a comprehensive application process.

The PNWH2 Hub is eligible to receive up to $20 million in federal funding for the first year. The initial year encompasses the first of four DOE-defined phases to ensure the PNWH2 Hub’s projects are technologically and financially viable, with federal approval required to proceed to subsequent phases.

The selected regional hydrogen hubs will form the foundation of a national clean hydrogen network.

The Pacific Northwest Hydrogen Association brings together key players in the industry to build the infrastructure necessary to form a Clean Hydrogen Hub. Through our work, the PNWH2 Hub will integrate into the region’s clean energy portfolio, eliminate fossil fuels from its electricity generation portfolio by 2045 and adopt a 100% clean electricity standard, as well as net-zero greenhouse emissions by 2050.

The Pacific Northwest’s low-cost, low-carbon power grid and environmentally focused state policies, combined with strong community benefits programs and federal incentives, can enable a commercially viable clean hydrogen ecosystem earlier than many other regions.

Once negotiations with the U.S. Department of Energy conclude – anticipated in summer 2024 – the PNWH2 Hub will begin validating DOE’s vision of a national clean hydrogen network by deploying clean hydrogen technologies and infrastructure that accelerate the transition to clean hydrogen energy production and use.

With this Clean Hydrogen Hub, the Pacific Northwest can continue its history of forging innovative paths to meet the region’s clean energy and climate goals. Clean hydrogen can be part of the solution that meets our climate goals, prioritizes equity, balances tradeoffs and supports our economy.

Development of Shared Principles: Our shared principles will guide the development of the overall Hub structure strategy specific projects and policies. These principles should seek to enhance human well-being and bring an equity lens, while being responsive to local needs and priorities in each region. Principles should ensure an equitable distribution of energy and non-energy benefits from the hydrogen economy. These principles should seek to reflect and incorporate recommendations in the Washington State Energy Strategy (including following pathways to achieve net-zero emissions by 2050 and centering equity provisions), as well as additional guidance and recommendations related to the hydrogen economy.

Equity, Environmental and Energy Justice Plan: H2Hub activities should include the development of an Equity, Environmental and Energy Justice (EEEJ) plan as an early Phase 1 activity. An EEEJ plan should be specific to each region and proposed Hub, and should reference and propose to act in accordance with any state-level EEEJ laws, including the Healthy Environment for All (HEAL) Act in Washington State. They should also be aligned with the federal Justice40 Initiative. These plans would ensure all relevant stakeholders and Tribal sovereigns are at the table early and on a continuous basis as states like Washington develop this transformation of the energy economy.

Use of Mapping and Geospatial Tools & Data to Advance Equity: These may include environmental justice mapping tools such as the Environmental Health Disparities (EHD) map in Washington State and/or other environmental, health, economic, risk and hazard, or related databases that can help identify geographic areas where benefits of H2Hub projects and activities may be placed to help to improve health and well-being and reduce environmental health disparities.

Domestic, Clean Technology Manufacturing: Washington maintains a strong focus on the economic development potential inherent in the energy system transformation underway. Using the H2Hubs to lay the groundwork for increasing the domestic manufacturing of all parts of the hydrogen supply chain is highly desirable. The U.S. will not be a true leader in the coming global hydrogen economy if the advanced manufacturing of hydrogen-related equipment, and related workforce expertise, reside outside of our country.

Energy Emergency Management & Planning: State energy emergency management offices are responsible for developing and implementing statewide emergency management plans and energy resilience plans for each of the sectors represented including renewable resources. Collaboration between the energy emergency management office and state agencies, local jurisdictions, Tribal Nations, and special purpose districts in the development and implementation of any of these plans is vital to ensuring the reliability of the system and will have critical and relevant information for supporting energy-resilient program design.

Industry Cluster Development: Commerce’s Innovation Cluster Accelerator Program is supporting the development and maturation of industry-led consortia working to accelerate innovation and economic growth in nine key sectors in Washington state, including the following relevant to the H2Hub: CHARGE hydrogen energy cluster; CleanTech Alliance, advancing carbon reduction in the built environment; Maritime Blue, working to decarbonize the maritime sector; and Washington VERTical, working to build the advanced nuclear reactor supply chain.

The Pacific Northwest is an ideal location for a Hydrogen Hub due to its abundant low-carbon power, environmentally focused state policies, strong community benefits programs, and federal incentives, collectively facilitating a quicker establishment of a commercially viable ecosystem than regions reliant on fossil-energy-dependent power grids. Hydrogen hubs are networks of regional clean hydrogen producers, consumers and nearby connective infrastructure like storage facilities and distributors. The Department of Energy’s grant program is designed to establish hydrogen hubs throughout the country.

Within a decade, the federal investment will help lower the cost of producing hydrogen in our region to enable the establishment of a network of production, storage and distribution systems and spur the investment and use of clean hydrogen in major industries – like our freight and other transportation systems – that will be harder to transition to clean hydrogen energy use.

For example, large-scale sustainable hydrogen fuel production could unlock additional investment in infrastructure and end-use applications, including public transit and trucking fleets, regional aircraft and ground support equipment, cruise ship refueling, hydrogen barges and ferries, and near-shore standby power for marine industries.