States are vying to become one of at least four “hydrogen hubs” provided for in last year’s historic bipartisan infrastructure legislation, according to Bloomberg.
The gist: States, either in alliances or on their own, are announcing their interest in claiming a share of the $8 billion earmarked for these hubs.
Two of the hubs must be in areas that have abundant natural gas reserves.
States have yet to file formal applications, but “[t]here are already some potential heavy hitters in what could become a crowded field.”
Why it matters: “Companies worldwide are exploring hydrogen as a fuel for long-haul trucks, factories, trains, ships and even airplanes, though many efforts are in their early stages. Establishing hydrogen hubs could provide the jolt needed for the gas to gain ground in the country.”
Current contenders include West Virginia, which intends to compete alone for a portion of the funds, as well as an alliance between New York, Massachusetts and New Jersey.
A group comprising U.S. Steel Corp., Equinor ASA and Marathon Petroleum announced in February that “they would help work on a hub that would knit together Ohio, Pennsylvania and West Virginia,” according to Bloomberg.
What we’re saying : “The NAM-supported bipartisan infrastructure law has provided a once-in-a-lifetime federal investment in cutting-edge, clean-energy technologies like hydrogen,” said NAM Director of Energy and Resources Policy Chris Morris.
“The Department of Energy is rolling out programs like the ‘hydrogen hubs’ initiative to ensure that we have the infrastructure to support these clean energies. As we look to the future of energy, some of the biggest challenges we will face are grid integration and energy storage. This is a positive first step to begin supporting the next generation of clean energy.”