The US Department of Energy is weighing funding cuts to four of seven hydrogen hubs that were selected under a $7 billion federal program
March 26 (Reuters) – The U.S. Department of Energy is weighing funding cuts to four of seven hydrogen hubs that were selected under a $7 billion federal program, according to a source briefed on the matter.
The hubs, part of former President Joe Biden’s effort to decarbonize the U.S. economy, are intended to jumpstart the production of “clean hydrogen” and the infrastructure needed to get it to industrial users like steelmakers and cement plants.
Washington has slashed funding for clean energy projects since Trump took office in January. His administration is prioritizing fossil fuel production as part of its “energy dominance” agenda.
The four hubs targeted for cuts include those in the Midwest, Pacific Northwest, California and the Mid-Atlantic, according to a list circulated by the agency. They represent about $4 billion in pledged funding.
Funding would be preserved for hubs in Appalachia, the Gulf Coast and the upper Midwest.
A DOE spokesperson said when asked about the list, which was first reported by Politico,
The Department of Energy is conducting a department-wide review,
“The review is ongoing, and speculation by anonymous sources about the results of the review are just that – speculation.”
The hubs that could have their funding cut would largely serve Democratic states, while the three hubs that would be kept are located in Republican states.
A California hydrogen trade group said the DOE should reconsider pulling funding from the Golden State hub, which is known as ARCHES.
Teresa Cooke, executive director of the California Hydrogen Coalition, said in a statement,
The many benefits of hydrogen energy — American energy independence, cleaner air for all of us to breathe, and good paying, blue-collar jobs — are not partisan issues,
“Projects like ARCHES are already benefiting the U.S. economy and removing funding will only hurt the people of our state, including more than 6 million who supported President Trump in the 2024 election.”
In an emailed statement, ARCHES said it was committed to establishing a hydrogen ecosystem, creating jobs and delivering economic benefits to California residents.
Officials from the other hydrogen hubs did not immediately respond to requests for comment.
Reporting by Jarrett Renshaw and Nichola Groom; Editing by Chris Reese, Franklin Paul and Deepa Babington
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The US Department of Energy is weighing funding cuts to four of seven hydrogen hubs that were selected under a $7 billion federal program, source
