Following the cancellations in October of two $1 billion grants for West Coast “hydrogen hubs,” public-private entities representing numerous companies, institutions, agencies and others seeking to develop projects using the cleaner energy source have formally appealed to the Trump administration to end previously awarded funding while they are already in development.
The $1 billion grant to the Pacific Northwest Hydrogen Partnership Center in Washington, Oregon and parts of Montana and the $1.2 billion grant to the California-based Alliance for Renewable Clean Hydrogen Energy Systems (ARCHES) network, both awarded by the U.S. Department of Energy in 2023, were the two largest investments so far raised in federal funds. of 223 projects.
The Pacific Northwest Center and ARCHES have formally appealed the department’s terminations, while also exploring further legal action, the groups told ENR.
However, the California center also announced on November 4 that its operations are now on hiatus. “In response to recent changes in federal funding priorities, ARCHES will immediately pause hydrogen center activities,” it said in a statement on the website.
ARCHES’ founders, California Gov. Gavin Newsom’s Office of Economic and Business Development and the University of California, will assume oversight in a “transition,” the center said. Other founders are the State Building and Construction Trades Council of California and the think tank Renewables 100 Policy Institute.
ARCHES had more than 400 “industry and infrastructure” partners in its network, including hydrogen producers, contractors and pipeline developers. Members include Amazon, Microsoft, Chevron, GE, General Motors, Siemens Energy, Air Products, Air Liquide, Linde, RWE, Honda, Hyundai, Toyota, Boeing, Michelin and Bosch.
Jacobs Solutions was chosen as the program manager for the ARCHES center while AtkinsRealis was appointed to the same role for the Pacific Northwest center.
Newsom condemned the government’s actions, saying “clean hydrogen deserves to be part of California’s energy future.”
Center officials said the state will continue to develop green hydrogen infrastructure. “While this change reflects the shift in federal investments, California remains strongly committed to developing a renewable hydrogen ecosystem as part of its broader transition to clean energy,” ARCHES said. “Clean hydrogen can play a critical role in helping the state move away from fossil fuels.”
Uncertain result
Related to the Pacific Northwest Center’s appeal, “We hope that these actions will eventually result in funding from the federal center to the state,” says Willie Rudman, a spokesman for the center, “but these processes take time and have uncertain outcomes.”
The center hopes to harness the region’s renewable resources to produce clean hydrogen exclusively through electrolysis, making the technology accessible to other producers while lowering the cost of hydrogen production.
The center aims to remove about 1.7 million metric tons of CO annually2 emissions, especially in heavy transportation and agriculture, along with parallel efforts in California. The plan aims to enable the development of a West Coast freight network.
The Pacific Northwest Hydrogen Association says that “regardless of the political struggle in Washington, DC, hydrogen remains a viable product for the energy domain and represents a market worth hundreds of billions of dollars that generates millions of jobs.”
While officials at the center say they are “disappointed” by the decision to cut funding, they still see “immense opportunity” in the region and will continue to “support our project and the industry partners who have laid the groundwork.” Center officials say it is still receiving interest from companies interested in joining. “With or without federal support, this industry will continue to drive the innovation and infrastructure needed to strengthen America’s energy economy,” the group said.
Rudman added that despite the ARCHES hiatus, it is working with the Pacific Northwest Center and “remains committed to building a renewable hydrogen market along the West Coast and beyond.”
The groups have not been given a timetable for when an appeal will be heard, with alternative legal strategies still being developed in both regions. The DOE did not respond to ENR’s inquiry before the story was published seeking clarity on the agency’s appeals process and timeline.
Washington Gov. Bob Ferguson called the cancellation of energy subsidies “outrageous” and vowed to fight the decision. Mike Faulk, a spokesman for the state Attorney General’s Office, told ENR that his office has not filed any litigation and is “still reviewing the actions of the federal government here.”
According to the DOE, the funding terminations followed reviews that it says showed the projects did not adequately advance the nation’s energy needs, were not economically viable and would not provide a positive return on the investment of taxpayer dollars.
Federal funding is also believed to be in jeopardy at the other five centers, but their status could not be confirmed at ENR’s press time.
