California will be the first state to receive federal funds under a program to create regional networks, or “hubs,” that produce hydrogen as an energy source for vehicles, manufacturing and generating electricity.
The U.S. Department of Energy said the California Hydrogen Hub will receive an initial $30 million to begin its planning and design phase. The state will eventually receive up to $1.2 billion for the project that is a key part of the Biden administration’s agenda to slow climate change. The administration in October selected seven regional hubs for the $7 billion program that will kickstart development and production of hydrogen fuel, with the goal of eventually replacing fossil fuels such as coal and oil with the colorless, odorless gas that already powers some cars and trains. The hubs, which include projects in 16 states, will spur more than $40 billion in private investment and create tens of thousands of good-paying jobs, many of them union positions.