California, Los Angeles to benefit from $7B energy program

As part of a $7 billion federal program to launch seven regional Clean Hydrogen Hubs across the nation, including California, Mayor Karen Bass Friday commended the initiative for what she says will foster sustainability, climate resiliency and add hundreds of thousands of jobs in the city of Los Angeles.

Bass was expected to convene with local leaders at 11 a.m. Friday in San Pedro to discuss how the funding coming to Los Angeles will impact the energy sector and increase job opportunities.

The U.S. Department of Energy announced Friday morning, that it would be launching its Regional Clean Hydrogen Hubs, also called H2Hubs, in an effort to accelerate the commercial-scale deployment of low-cost, clean hydrogen — an energy that can be produced with zero or near-zero carbon emissions.

“Unlocking the full potential of hydrogen — a versatile fuel that can be made from almost any energy resource in virtually every part of the country — is crucial to achieving President (Joe) Biden’s goal of American industry powered by American clean energy, ensuring less volatility and more affordable energy options for American families and businesses,” U.S. Secretary of Energy Jennifer M. Granholm said in a statement.

California will receive up to $1.2 billion from the department to build or expand hydrogen projects that will power public transportation, heavy-duty trucks and port operations, according to Gov. Gavin Newsom’s office.

“Today, we are moving from concept to reality — advancing clean, renewable hydrogen in California which is essential to meeting our climate goals,” Newsom said in a statement. “We would not be here without President Biden’s leadership and his signature Bipartisan Infrastructure Law, which has served as a catalyst for the nation in addressing climate change. California’s Hydrogen Hub will cut pollution, power our clean energy economy and create hundreds of thousands of good paying jobs.”

According to Newsom’s office, hydrogen projects funded through this initiative will lead to a reduction of up to 2 million metric tons of carbon emissions every year, equivalent to the pollution of 445,000 gasoline-powered cars annually. Additionally, the hub is estimated to create 220,000 new jobs, including 130,000 in construction and 90,000 permanent jobs.

Approximately 40% of the benefits from projects will go back to “disadvantaged communities.”

In a statement, Newsom’s office said the state received the federal funding after submitting an application in April through its Alliance for Renewable Clean Hydrogen Energy Systems — a statewide public-private partnership to build the framework for California’s renewable, clean hydrogen hub. In addition to California, the Appalachian, Gulf Coast (Texas), Heartland (Minnesota, North Dakota and South Dakota), Mid-Atlantic (Pennsylvania, Delaware and New Jersey), Midwest (Illinois, Indiana and Michigan), and the Pacific Northwest (Washington, Oregon and Montana) regions were also designated as H2Hubs and will receive federal funding for their hydrogen projects.

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