WASHINGTON, D.C. — The Alliance for Renewable Clean Hydrogen Energy Systems (ARCHES) and the United States Department of Energy (DOE) announced Wednesday the signing of a landmark $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 clean energy infrastructure across California.
ARCHES said in a prepared statement this transformative 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 last October 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 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,” ARCHES CEO Angelina Galiteva said. “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.”
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 over 220,000 well-paying 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.
“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 Senator Alex Padilla (D-Calif.). “The path to achieving California’s ambitious clean energy goals runs through ARCHES, and I’m excited to see the California Hydrogen Hub kickoff with this initial round of funding.”
Spearheaded by Governor Newsom, California’s bold climate policies, including the California Climate Crisis Act (AB 1279), the 2022 Scoping Plan for Achieving Carbon Neutrality, the Executive Order on Zero-Emission Vehicles, and the forthcoming all-of-government Hydrogen Market Development Strategy, all work together to send strong signals about the critical role of hydrogen in decarbonizing the state’s economy. Each of the selected ARCHES projects will play a significant role in improving air quality and public health in many underserved communities throughout California, ARCHES said.
“The establishment of ARCHES as the hydrogen hub in California symbolizes more than just scientific advancement; it is a testament to our collective dream of a sustainable future where clean energy and equal opportunity uplift every community and provides equitable advancement for the future of our workforce,” ARCHES Board Member Dr. Bill Burke said. “Together, we are planting seeds of change and nurturing a brighter, more inclusive tomorrow.”
“Formally signing this Cooperative Agreement with the Department of Energy to develop California’s Renewable Hydrogen Hub is a pivotal milestone on California’s march to carbon neutrality — economy wide,” added GO-Biz Director and Senior Advisor to Governor Gavin Newsom, and founding ARCHES Board Member Dee Dee Myers. “We are eager to put Californians to work building the future — a future powered by clean, renewable hydrogen that benefits all California’s residents.”
The projects included in the Hydrogen Hub span statewide — covering the full hydrogen lifecycle from production to use.
Those projects include more than 10 sites that are expected to produce enough clean renewable hydrogen to fuel the projects below and kickstart the buildout of the greater hydrogen ecosystem.
At the Ports of Long Beach, Los Angeles & Oakland, the project will replace diesel-powered cargo-handling equipment with hydrogen fuel cell equivalents and associated fueling infrastructure, reducing emissions and community health impacts while reimagining large-scale transportation operations.
ARCHES also plans to build over 60 hydrogen fueling stations to enable over 5,000 Class 6-8 fuel cell electric trucks and over 1,000 fuel cell electric buses — directly replacing diesel fuel with a zero emission option in our City streets and freeways across the State and making the air in California’s most impacted communities healthier to breathe.
Both the Los Angeles Department of Water and Power and Northern California Power Agency will transition key power plants to 100 percent renewable hydrogen. Distributed fuel cells will be used to support grid operations throughout the state and to provide resilience in key regions of the state, including on the Federally Recognized reservation of the Rincon Band of Luiseño Indians.
“California tribes are excited to work with ARCHES on the Hub project which will help accelerate the state’s future of renewable energy and the development of the Hydrogen Trail initiative to bring sustainable energy stations and clean hydrogen to Federally Recognized reservations and rural communities,” stated Bo Mazzetti, Chairman of the Rincon Band of Luiseño Indians and ARCHES Board Member.
A first-of-its-kind hydrogen-powered 140-foot, 50-person marine research vessel will use liquid hydrogen to replace tens of thousands of gallons of diesel fuel per year. The vessel will convert 75 percent of its emissions to be fossil-free, significantly reducing CO2 emissions and demonstrating a sustainable path forward for smaller water and harbor crafts.
In the coming weeks, ARCHES will be announcing additional projects and partners who will receive Hub funding.
ARCHES said the projects selected are focused on delivering direct benefits to communities with the highest pollution burdens, with robust community engagement and innovative systems to ensure the program delivers on its promises.
“Berkeley Lab welcomes the Department of Energy’s plans to build and expand renewable, clean hydrogen projects in California that will serve as a catalyst in accelerating our nation’s transition to clean energy,” Lawrence Berkeley National Laboratory Deputy Director Carol Burns said. “We look forward to being a scientific and technical resource for the development and deployment of hydrogen in California as part of the wider effort to decarbonize the state’s economy.”
“Formally signing this Cooperative Agreement with the Department of Energy to develop California’s Renewable Hydrogen Hub is a pivotal milestone on California’s march to carbon neutrality—economy wide,” GO-Biz Director and Senior Advisor to Governor Gavin Newsom, and founding ARCHES Board Member Dee Dee Myers said. “We are eager to put Californians to work building the future—a future powered by clean, renewable hydrogen that benefits all California’s residents.”
On Wednesday, the U.S. Department of Enery’s Office of Clean Energy Demonstrations announced a $30 million award to the California Hydrogen Hub. Those funds will go to the first tranche of funding out of the total project federal cost share of up to $1.2 billion to begin Phase 1 of the project plan.
“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,” President of the State Building and Construction Trades Council of California and founding ARCHES Board Member Chris Hannan said. “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.”
OCED said the expansion of hydrogen fuel cell vehicles in heavy-duty transportation aims to not only drive improvements in air quality along high pollution interstate transportation corridors but also to facilitate greater connectivity and expansion of a clean West Coast freight network that links to the Pacific Northwest Hydrogen Hub.
During Phase 1, which is expected to last up to 18 months, ARCHES will conduct planning, analysis, and design activities in addition to ongoing stakeholder and community engagement, the DOE said.
“This is an important and exciting moment for California and the University of California to accelerate our shared decarbonization and public health goals,” said Theresa Maldonado, Vice President for Research and Innovation at the University of California and Chair of the ARCHES Board of Directors. “UC is proud to be a founding member of ARCHES, and to help leverage this exciting clean energy technology for the benefit of the people of California and the economic vitality of the state.”
The project’s fact sheet reads the California Hydrogen Hub spans across the state of California and will leverage the state’s leadership in clean energy technology to produce hydrogen exclusively from renewable energy and biomass. It is also expected to introduce clean hydrogen to heavy duty transport through cargo handling equipment and drayage to support the eventual conversion of maritime equipment at ports and prepare California ports for the potential export of hydrogen.
“The expansion of hydrogen fuel cell vehicles in heavy duty transportation will not only drive improvements in air quality along high pollution interstate transportation corridors but will facilitate greater connectivity and expansion of a clean West Coast freight network that links to the Pacific Northwest Hydrogen Hub,” the project’s fact sheet reads. “The California Hydrogen Hub will launch the use of hydrogen for power generation, advancing energy security and more resilient systems through a partnership with the Rincon Band of Luiseño Indians.”
According to the OCED, the partnership with the tribal nation will use hydrogen to provide backup power to community well water pumps to ensure clean drinking water during power outages.
To ensure the California region’s communities are engaged and have access to the benefits of a clean hydrogen economy, this Hydrogen Hub plans to incorporate robust governance mechanisms, including labor, tribal, and environmental representation on its governing board; strong state requirements for environmental justice; independent monitoring of CBP implementation; and a CBP scorecard with monetary penalties for noncompliance.
The state H2Hub includes the California State Building & Construction Trades Council as a founding member and has committed to requiring Project Labor Agreements for all projects connected to the Hub. The H2Hub will also partner with local and minority-owned businesses, minority-serving institutions, and organizations targeting workers facing employment barriers to ensure economic benefits and quality jobs are available to underrepresented groups.
This H2Hub anticipates creating 220,000 direct jobs—130,000 in construction jobs and 90,000 permanent jobs. In addition to economic benefits, this H2Hub will also provide local benefits to communities including reducing harmful air pollution that will result in significant health-related savings each year at full buildout.
“California is revolutionizing how a major world economy can clean up its biggest industries,” California Governor Gavin Newsom said in a prepared statement. “We’re going to use clean, renewable hydrogen to power our ports and public transportation – getting people and goods where they need to go, just without the local air pollution.”
Last week, California led the nation in multiple hydrogen-powered transportation innovations, with the world’s first entirely hydrogen-powered ferry in San Francisco Bay and a successful 523-mile hydrogen-electric flight.
