US considers cutting funding to four of seven hydrogen hubs

According to a source familiar with the issue, the U.S. Department of Energy has considered cutting funding to four of seven hubs for hydrogen that were chosen under a $7-billion federal program.

The hubs are part of the effort by former President Joe Biden to decarbonize U.S. economics. They aim to boost the production of clean hydrogen and the infrastructure required to deliver it to industrial users such as steelmakers and Cement plants.

Washington

Cut funding

Since Trump's inauguration in January, the federal government has provided funding for clean energy projects. As part of the "energy dominance agenda," his administration prioritizes fossil fuel production.

According to a list distributed by the agency, the four hubs that are targeted for reductions include those located in the Midwest and Pacific Northwest. California, the Mid-Atlantic region, and California. The pledged funding amounts to about $4 billion.

The funding for hubs on the Gulf Coast, Appalachia and Upper Midwest would be maintained.

When asked about the list that was first reported by Politico, a DOE spokesperson replied: "The Department of Energy conducts a department-wide evaluation." The review is still ongoing and anonymous sources' speculations about the review results are just that: speculation.

The hubs that may lose funding are mainly located in Democratic states.

A California hydrogen industry group has said that the DOE should reconsider withdrawing funding from the Golden State Hub, also known as ARCHES.

In a recent statement, Teresa Cooke said that the benefits of hydrogen are not partisan. "American energy independence, cleaner air to breathe for us all, and well-paying, blue-collar job opportunities -- these aren't partisan issues," she added. "Projects such as ARCHES already benefit the U.S. Economy and removing funding would only hurt people in our state, which includes more than 6 millions who supported President Trump during the 2024 elections."

ARCHES stated in an email that it is committed to creating a hydrogen eco-system, creating jobs, and delivering economic benefit to California residents.

The other hydrogen hubs have not responded to comments made by journalists. Reporting by Jarrett Renshaw, Nichola Groom and Chris Reese; Editing by Franklin Paul, Deepa Babington and Chris Reese

(source: Reuters)