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Friday, April 4, 2025

California launches world-leading Hydrogen Hub with $12.6 billion agreement

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Governor Gavin Newsome | Official website

Governor Gavin Newsome | Official website

California has become the first state to officially launch a Hydrogen Hub, an initiative aimed at accelerating the development and deployment of clean, renewable hydrogen projects. The U.S. Department of Energy (DOE) and ARCHES have announced the signing of a $12.6 billion agreement to build this hub, which includes up to $1.2 billion in federal funding.

The ARCHES hub will establish a network of hydrogen production sites across California, aiming to reduce fossil fuel use and decarbonize public transportation, heavy-duty trucking, and port operations by 2 million metric tons per year.

"California is revolutionizing how a major world economy can clean up its biggest industries," said Governor Gavin Newsom. "We’re going to use clean, renewable hydrogen to power our ports and public transportation – getting people and goods where they need to go, just without the local air pollution."

Last week, California introduced multiple hydrogen-powered transportation innovations, including the world's first entirely hydrogen-powered ferry in San Francisco Bay and a successful 523-mile hydrogen-electric flight.

The project aims to cut carbon emissions by up to 2 million metric tons annually, equivalent to the pollution from 445,000 gasoline-powered cars. It is expected to create approximately 220,000 new jobs and generate $2.95 billion per year in economic value from improved health outcomes and cost savings.

Key targets for decarbonization include three large ports with over 200 pieces of cargo-handling equipment, more than 5,000 fuel-cell-electric trucks, over 1,000 fuel-cell-electric buses, one marine vessel, turbines and stationary fuel cells. The infrastructure will also include 60 heavy-duty fueling stations and 165 miles of open-access pipelines.

Senator Alex Padilla (D-Calif.) expressed his support for the project: "I was proud to help secure $1.2 billion of federal investments through the Bipartisan Infrastructure Law to build a hydrogen hub right here in California."

Angelina Galiteva, CEO of ARCHES, highlighted the project's significance: "The Department of Energy’s announcement to fund ARCHES is a monumental step forward in the state’s efforts to achieve its air quality, climate and energy goals."

Dee Dee Myers from GO-Biz added: "Formally signing this Cooperative Agreement with the Department of Energy to develop California’s Renewable Hydrogen Hub is a pivotal milestone on California’s march to carbon neutrality—economy wide."

For more details on upcoming steps or recent news related to this initiative visit build.ca.gov.

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