CA Green Energy Hub Deal

The U.S. Department of Energy (DOE) signed a $12.6 billion Agreement to build a “Clean Renewable” Hydrogen Hub in California on Wednesday.

The DOE agreed to provide $1.2 billion to the Alliance for Renewable Clean Hydrogen Energy Systems (ARCHES), under the Bipartisan Infrastructure Law, with the remaining $11.4 billion coming from Public and Private Matching Funds, according to press releases from ARCHES and California Gov. Newsom’s (D) Office.

Democratic Politicians, including Newsom and California Sen. Alex Padilla (D), have lauded the Agreement.

“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,” said Padilla. “California is leading the nation with the first hydrogen hub to sign a cooperative agreement, and we will continue to lead by decarbonizing goods, and movement from the energy sector, and heavy industry.”

Critics question the Feasibility of “clean” Hydrogen Projects due to a lack of Cost-Effectiveness and Limited evidence the Technology can be scaled effectively.

The mean cost for Hydrogen produced using Natural Gas is $1.50 per kilogram, while “clean” hydrogen costs roughly $5.00 or more per kilogram.

Additionally, due to the Large amounts of Energy required to Split Water into Hydrogen and Oxygen, Hydrogen Producers could be Forced to use the Electric Grid as a Power Source.

As a result, Clean Energy Groups Vestas and Intersect, argue that Companies who use the Power Grid to produce “Clean” Hydrogen should be Regulated. to ensure the Emissions from their Electricity Consumption does not outweigh the emissions prevented by the “renewable” Energy they produce.

The $1.2 billion of Federal funding from the DOE represents approximately 17% of the $7 billion allocated for “Clean” Hydrogen Projects and approximately 1.7% of the $70 billion earmarked for Clean-Energy Technology and demonstration Projects under the Bipartisan Infrastructure Law.

The Bipartisan Infrastructure Law was passed in November 2021. Just 18%, $218 billion, of the $1.2 trillion Package went to traditional Infrastructure such as: Roads, Bridges, Railroads, Airports, and Ports.









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