Under the Investing in America program, the U.S. Department of Energy (DOE) has announced $750 million for 52 projects in 24 states to support the hydrogen industry.
According to the DOE, these projects, will help advance electrolysis technologies and improve manufacturing and recycling capabilities for clean hydrogen systems and components, directly supporting more than 1,500 new jobs.
These projects are expected to enable U.S. manufacturing capacity to produce 14 gigawatts of fuel cells per year, enough to power 15 percent of the medium- and heavy-duty trucks sold each year, and 10 gigawatts of electrolyzers per year, enough to produce an additional 1.3 gigawatts per year. million tons of clean hydrogen per year, the department described.
The DOE further emphasized that the projects will also support the long-term viability of regional clean hydrogen hubs (H2Hubs) and other emerging commercial facilities by helping to address the underlying technical barriers to cost reduction that cannot be overcome by mere expansion.
"Achieving the cost reduction goals will open new markets for clean hydrogen - creating more clean energy jobs, reducing greenhouse gas emissions and harmful air pollution in various sectors of the economy, and strengthening America's long-term competitiveness in the global clean energy market," explained a State Department source.
Together with H2Hubs, tax incentives in the President's Inflation Reduction Act, and continued research, development, and demonstration in the Department's Hydrogen Program, these investments will help DOE achieve its Hydrogen Shot goal of reducing the cost of producing clean hydrogen to $1 per kilogram, DOE emphasized, adding that clean hydrogen has a critical role to play in reducing emissions from the most energy-intensive and polluting sectors, including heavy transportation and industrial and chemical processes such as steelmaking and fertilizer production.
The projects selected for award negotiations will promote clean hydrogen technologies in the following areas:
- Low-cost, high-performance electrolyzer production (8 projects, USD 316 million),
- development of electrolyser components and supply chain (10 projects, USD 81 million),
- development of advanced technologies and components (18 projects, USD 72 million),
- advanced manufacturing of fuel cell assemblies and assemblies (5 projects, USD 150 million),
- fuel cell supply chain development (10 projects, USD 82 million); and
- Recovery and Recycling Consortium (1 project, USD 50 million).
"The Biden-Harris Administration is fueling an American-led clean hydrogen economy that is providing good-paying, high-quality jobs and accelerating a manufacturing renaissance in communities across America. The projects announced today - funded by the President's Investing in America agenda - will advance our progress and ensure that our leadership in clean hydrogen is felt across the country for generations to come," said U.S. Secretary of Energy Jennifer M. Granholm.
Commenting on the impact of the investment on the state of Michigan, U.S. Representative Debbie Dingell noted that the investment will create hundreds of high-paying jobs, bring millions of dollars to the local economy, and keep Michigan at the forefront of clean energy innovation.
"Green hydrogen is one of the most promising technologies in the clean energy transition and will support industries that have long been key to our state, from mobility to manufacturing. I'm proud that Nel Hydrogen is based in Plymouth Township, and I will continue to work to ensure that Michigan takes a leadership role in combating climate change and working toward a net-zero economy."
It should be noted that the U.S. Department of Energy and the State of Michigan have awarded a collective $75 million in incentives and grants to Nel's Michigan electrolyzer manufacturing facility. The fully built-out Michigan plant is expected to have an annual production capacity of 4GW, and Nel said the company will manufacture its next-generation electrolyzer technologies: the PEM stacks currently being developed with General Motors and pressurized alkaline stacks at the planned new plant.
The Department also stated in the announcement that selection for award negotiations is not a commitment to make an award or provide funding. DOE and the applicants will undergo a negotiation process prior to the issuance of funds, and during this time, DOE may cancel the negotiations and rescind the selection for any reason.
