Today (Nov 20), the Midwest Alliance for Clean Hydrogen(MachH2) and the U.S. Department of Energy (DOE) officially announced the signing of a cooperative agreement with the DOE's Office of Clean Energy Demonstrations (OCED) for Phase 1 award status, ushering in the next generation of clean energy and clean manufacturing across the Midwest, powered by clean hydrogen. MachH2 is part of the Regional Clean Hydrogen Hubs (H2Hubs) Program managed by OCED. As part of the Bipartisan Infrastructure Law, OCED selected seven H2Hubs across the country to begin Phase 1 award negotiations for up to $7 billion in funding across the four phases, one of the largest investments in jobs and clean manufacturing in American history.
As part of MachH2's Phase 1 award status, the hub will receive $22.2 million in initial federal funding. Phase 1 is expected to last between 12 to 18 months and is anticipated to include planning, design, development, and community and labor engagement activities. Projects participating in the hub are expected to produce over 1,000 metric tons per day (MTPD) of clean hydrogen at scale. These plans and the viability of certain projects are subject to, among other considerations, guidance from the U.S. Treasury Department regarding eligibility for the clean hydrogen production tax credit under Section 45V of the U.S. Tax Code.
"Federal investment in hydrogen hubs represents a once-in-a-lifetime opportunity to significantly reduce emissions from hard-to-decarbonize industries, create new clean energy jobs, clean our air, and invest in historically overburdened communities," said Dr. Dorothy Davidson, CEO of MachH2. "By moving into Phase 1 with $22.2 million in federal funding, MachH2 will help accelerate the clean hydrogen economy and we are looking forward to working with communities throughout the Midwest to deliver the benefits of the clean energy future. We are also appreciative to the DOE for its commitment to ensuring there is a robust clean hydrogen marketplace ready to meet the demand."
MachH2 represents a network of clean hydrogen production, distribution, and consumption sites across the Midwest - including in Illinois, Indiana, Iowa, and Michigan - that will leverage diverse and abundant energy sources, including nuclear energy, natural gas with carbon capture, and renewable energy. The hub comprises eight projects led by nine subrecipients: Air Liquide; BP; Constellation Energy; GTI Energy; Invenergy; Mass Transportation Authority-Flint; Michigan Department of Environment, Great Lakes, and Energy; Midwest Hydrogen Corridor Coalition; and Nicor Energy Ventures Company (NEV), an affiliate of Northern Illinois Gas Company (Nicor Gas). During Phase 1, MachH2 will determine project locations across the region, including the potential to expand into additional Midwestern states.
"Since I became Governor, I've been focused on propelling Illinois forward into a clean energy future ushering in a new era of environmental justice and sustainability for every community. Through the advancement of the Midwest Alliance for Clean Hydrogen, we are entering a partnership that will build on our record of accomplishment here at home and throughout the Midwest," said Illinois Governor JB Pritzker. "The development of a robust clean hydrogen economy, a key component of the Climate and Equitable Jobs Act, represents the decisive action that is necessary to curb the devastating effects of climate change. Our fleet of always-on nuclear power plants in Illinois is helping to power our economic growth with clean energy today and positions us to be a leader in the clean hydrogen future. With this milestone, the entire country is one step closer to realizing cleaner energy and cleaner industry than ever before. I am thankful to the Department of Energy and our MachH2 partners for their collaboration on this effort and I look forward to continuing my administration's support for the hub's success."
"Today marks another giant leap for Indiana and the entire Midwest. We enjoy a long, proud history of manufacturing and transportation - which also happens to be the life blood of America. With these new resources we will continue to lead the nation through our shared commitments to job creation, economic investment and innovation," said Indiana Governor Eric Holcomb. "I m proud to join other heartland states as a member of MachH2. Today's Phase 1 award announcement brings our hydrogen hub one step closer to generating thousands of local, family-sustaining careers well into the future."
"I look forward to continuing Governor Holcomb's success in creating jobs for hardworking Hoosiers in industries where Indiana excels, and leading the way in critical technologies of the future," said Indiana Governor-elect Mike Braun. "The hydrogen hub offers the opportunity to grow our national economy, and I look forward to working with other hub leaders across the Midwest."
"Michigan is leading the nation and the world by reducing emissions and building the future of cars, chips, and clean energy," said Michigan Governor Gretchen Whitmer. "Today's partnership between MachH2 and the DOE will help us grow Michigan's economy, meet our climate goals, and uplift families in every corner of Michigan. I am thrilled to see how this announcement will make a difference for communities across Michigan and bring down $1 billion in federal investment. Let's keep working together to show the world that Michigan is the best place to build a cleaner, greener future."
As part of the cooperative agreement with OCED, MachH2 has committed to a community benefits package that aims to mitigate potential impacts of this project and encourage a more equitable distribution of energy system benefits across the region, including by generating an anticipated 12,000 jobs in construction and permanent operations over the project's lifetime with family-supporting wages, enabling new job training and educational opportunities, providing long-term career pathways in the Hydrogen and clean energy industry, and stimulating local and regional economic development.
MachH2, alongside HyVelocity Hub, are the fourth and fifth H2Hubs to sign cooperative agreements with the DOE and progress to Phase 1, joining ARCHES from California, PNWH2from the Pacific Northwest, and ARCH2 from the Appalachian region.
About MachH2: MachH2 is a multi-state coalition of public and private entities representing every phase in the hydrogen value chain. The alliance includes a cross section of carbon-free and low-carbon energy producers, clean energy developers, hydrogen technology providers, utilities, major manufacturers, and leading hydrogen technology development and deployment institutions. The hub is comprised of eight projects led by nine subrecipients: Air Liquide; BP; Constellation Energy; GTI Energy; Invenergy; Mass Transportation Authority-Flint; Michigan Department of Environment, Great Lakes, and Energy; Midwest Hydrogen Corridor Coalition; and Nicor Energy Ventures Company (NEV), an affiliate of Northern Illinois Gas Company (Nicor Gas). Learn more at MachH2.com.
About DOE: The mission of the Energy Department is to ensure America's security and prosperity by addressing its energy, environmental and nuclear challenges through transformative science and technology solutions. Learn more at energy.gov.
