US Hydrogen Contracts On Hold, But Hubs Continue To Make Progress
President Trump’s executive order Unleashing American Energy, issued on Inauguration Day, calls upon government agencies to pause funding, loans, and contracts for hydrogen and other clean energy sources. This freeze couldn’t come at a worse time as the country’s seven hydrogen hubs are now just getting off the ground after a prolonged start. The Biden Administration previously allocated $7 billion to help bring clean hydrogen energy to high-carbon industries like shipping, trucking, and ammonia production. But, although the fate of hydrogen in the U.S. remains unclear for now, it’s not a complete loss. At least two hubs—the Mid-Atlantic Clean Hydrogen Hub (Mach2) and the Appalachian Hydrogen Hub (Arch2)—continue to push forward with their plans, even with no guarantee of securing future government contracts.
Arch2’s blue-hydrogen hub moves forward
Arch2 has already received $25 million in funding for Phase One of the project, which is currently in process. Although Arch2’s project leaders remain optimistic, progress beyond the initial phase more or less depends on whether they can secure key government contracts further down the line. For now, Arch2’s project leaders aim to plan and procure contracts and permits for large-scale industrial projects. The hub will produce blue hydrogen via fracked natural gas from Ohio, West Virginia, and Pennsylvania, and the carbon emissions released from this process will be captured and buried underground.
Arch2’s natural gas links may up contract prospects
Industry experts have pointed out that it’s unclear whether the recent executive order includes a freeze on funding that’s already been signed off on—aka funding that’s been legally assigned under contract. For the Biden Administration, green energy was a huge focus, with $31 billion invested in renewable power in 2024. To put this in perspective, the U.S. government spends over $50 billion on energy and infrastructure contracts altogether every year. Given President Trump’s promise to boost America’s oil and gas production, these industries are probably where most of the procurement dollars will now go. But, interestingly, Trump may look more favorably upon the Arch2 hub due to its ties to natural gas companies. These companies are integral to the production of hydrogen as it relies on the extraction of natural gas—and this could help make the natural gas industry as a whole cleaner.
Mach2: the region’s biggest clean energy project
In January 2025, Mach2, a hydrogen hub in the Mid-Atlantic region, received $18.8 million in federal funding under the Biden Administration. This is just a fraction of the $750 million it’s pegged to receive from the Department of Energy (DOE)—although that’s only if the project goes ahead to completion. But, for now, Phase One of Mach2 is underway thanks to the newly-allocated funds. The money will primarily be put toward design planning, which is no small feat. As the region’s biggest clean energy project, which runs from South Jersey to Delaware, Mach2 will make use of the region’s existing pipeline infrastructure. But storage centers and hydrogen production facilities will also need to be built from scratch. In Phase Two, the DOE plans to start contract negotiations with the hub’s partner companies. These businesses will be expected to match their share of government funding with their own investments, although little detail has been released to the public as of yet.
But, hub progress in terms of community engagement has been somewhat stalled. Last month, the DOE’s Office of Clean Energy Demonstrations was scheduled to host a public webinar about the hub’s Phase One funding, but this was cancelled until further notice following the recent executive order. Unfortunately, hydrogen hubs do have their fair share of opposition with some protestors concerned about explosions. However, as the Center for Hydrogen Safety notes, hydrogen is no more or less dangerous than natural gas. Public forums play a crucial role in allowing the public to air their concerns and hear science-backed research on hydrogen’s safety. It’s, therefore, important the webinar is rescheduled at a later date.
America’s transition to clean energy still has a long way to go, but government contracts are a crucial part of this process. Despite the recent financial setbacks, hydrogen hubs Mach2 and Arch2 continue to make good progress, and demonstrate that a greener future is within reach
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US Hydrogen Contracts On Hold, But Hubs Continue To Make Progress
