ARCHES, U.S. DOE ink $12.6 billion agreement to build the California Hydrogen Hub

The Alliance for Renewable Clean Hydrogen Energy Systems (ARCHES) and the United States Department of Energy (DOE) inked a $12.6 billion agreement, including up to $1.2 billion from the DOE and $11.4 billion in public and private matching funds, to build and expand a network of clean hydrogen production sites across California.  

The investment, which will directly reduce California’s reliance on fossil fuels, marks a major step forward in the state’s efforts to achieve a carbon-neutral economy by 2045 and follows California’s selection in October 2023 as one of seven awardees of the DOE’s Regional Clean Hydrogen Hubs (H2Hubs)–catalyzing a national network of clean hydrogen producers, consumers and connective infrastructure. ARCHES is the first of the seven H2Hubs to officially sign their agreement with the DOE.

The overall investment, starting with $30 million for the first tranche of funding out of the total project federal cost share of up to $1.2 billion, is projected to create more than 220,000 jobs. At full build out, it is estimated that ARCHES DOE projects will result in $2.95 billion per year in decreased healthcare costs due to improved air quality, particularly along transportation corridors.

The California Hydrogen Hub project’s elements include:

• Making renewable hydrogen production available at more than 10 sites that will supply other components of the larger project.
• Replacing diesel-powered cargo-handling equipment with hydrogen fuel cell equivalents and associated fueling infrastructure at the Ports of Long Beach, Los Angeles and Oakland.  
• The build out of more than 60 hydrogen fueling stations for more than 5,000 Class 6-8 fuel cell electric trucks and more than 1,000 fuel cell electric buses.  
• Clean Power – Transitioning key power plants at both the Los Angeles Department of Water and Power and Northern California Power Agency to 100 percent renewable hydrogen. 
• Launching a first-of-its-kind hydrogen-powered marine research vessel  

“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 while improving the health and wellbeing of Californians and creating new green jobs across the state,” said Angelina Galiteva, CEO, ARCHES. “We are grateful to the DOE for its commitment to building a sustainable hydrogen ecosystem and marketplace and look forward to working with our project partners, stakeholders and diverse communities throughout the state to make this project a success.”

1,000-Bus Initiative

As a key partner of the ARCHES team, the Center for Transportation and the Environment (CTE) will spearhead ARCHES’ 1,000-Bus Initiative, which involves deploying more than 1,000 fuel cell electric buses across 13 California transit agencies during the next five to eight years. It also includes the construction or upgrade of 19 refueling and maintenance facilities essential for supporting the buses.  

"We are honored to be a part of the ARCHES team and contribute to the country’s growing hydrogen economy," said Dan Raudebaugh, executive director, CTE. "The DOE's substantial investment underscores the importance of hydrogen as a key component of our clean energy future. CTE is dedicated to driving innovation and collaboration to support our shared vision of a sustainable, zero-emission U.S. transportation system."

ARCHES' Hydrogen Hub will serve as a model for future clean energy projects, showcasing the potential of hydrogen to revolutionize the transportation sector.  

“The Department of Energy completing the negotiation of a cooperative agreement with ARCHES to award funding to begin development of projects for its hydrogen hub will create thousands of union careers while providing continued employment for existing skilled and trained union members as California builds out a hydrogen ecosystem providing a versatile carbon-free fuel for our future,” said Chris Hannan, president of the State Building and Construction Trades Council of California and founding ARCHES Board member. “ARCHES’ commitment to workforce standards and training will ensure the safest and highest quality construction of these projects by the best trained men and women in the construction industry. Thank you to the Department of Energy and ARCHES teams for all of their hard work to reach this agreement.”

More information on the agreement, including the full list of projects, can be found on ARCHES’ website.