Hydrogen Hubs and Demonstrating the Hydrogen Energy Value Chain

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Hydrogen Hubs and Demonstrating the
~~October 24, 2022~~November 17, 2023
Hydrogen Energy Value Chain
Martin C. Offutt
~~Hydrogen~~The U.S. Department of Energy (DOE) announced seven finalists for $7 billion in grants Analyst in Energy Policy for Regional Clean Hydrogen Hubs in October 2023—a program authorized by Congress in the Infrastructure Investment and Jobs Act (IIJA, §40315, P.L. 117-58). Congress appropriated $8 billion (Division J, Title III of the IIJA) for the Regional Clean Hydrogen Hubs, and DOE announced plans to spend up to $7 billion for the seven finalists and a further $1 billion for a Demand-side Support Initiative that DOE announced on July 5, 2023. Generally speaking, hydrogen hubs are emerging centers of activity involving hydrogen production, transport, hubs are emerging centers of activity involving hydrogen production, transport,
~~Analyst in Energy Policy~~
delivery, and end use to provide modern energy services such as mobility, goods movement, heat delivery, and end use to provide modern energy services such as mobility, goods movement, heat

for manufacturing processes, and other services. A future economy using hydrogen as an energy for manufacturing processes, and other services. A future economy using hydrogen as an energy
carrier and fuel could offer an alternative method to provide the many modern energy services carrier and fuel could offer an alternative method to provide the many modern energy services

associated with fossil fuels. In addition to providing a fuel for transportation—one of the larger associated with fossil fuels. In addition to providing a fuel for transportation—one of the larger
applications envisaged—hydrogen can support industrial processes or building operations or can become part of the energy applications envisaged—hydrogen can support industrial processes or building operations or can become part of the energy
~~infrastructure by storing energy.~~
~~Congress, in the Infrastructure Investment and Jobs Act (IIJA, §40315, P.L. 117-58), authorized a program of Regional Clean~~
~~Hydrogen Hubs. Congress appropriated $8 billion (Division J, Title III of the IIJA) for the U.S. Department of Energy (DOE)~~
~~to make awards to support at least four demonstration projects involving networks of clean hydrogen producers and~~
~~consumers and the connecting infrastructure.~~ infrastructure by storing energy. DOE has funded demonstration programs at small and large scale since its DOE has funded demonstration programs at small and large scale since its
inception in 1977. The essential purpose is to demonstrate technological feasibility. A demonstration project also reduces risk inception in 1977. The essential purpose is to demonstrate technological feasibility. A demonstration project also reduces risk
to subsequent investors as the government assumes the role of first mover to some extent. Hydrogen demonstrations to date to subsequent investors as the government assumes the role of first mover to some extent. Hydrogen demonstrations to date
have ranged from single refueling stations to linked activities for realizing value propositions typical of modern energy have ranged from single refueling stations to linked activities for realizing value propositions typical of modern energy
services, such as goods movement. To give an example, the Shore-to-Store project at the Port of Los Angeles completed its services, such as goods movement. To give an example, the Shore-to-Store project at the Port of Los Angeles completed its
initial phase in February 2022 to demonstrate the shore-side movement of goods by zero-emission vehicles. initial phase in February 2022 to demonstrate the shore-side movement of goods by zero-emission vehicles.
Consumption of hydrogen is focused in a relatively concentrated set of end-users. Almost all produced hydrogen is consumed Consumption of hydrogen is focused in a relatively concentrated set of end-users. Almost all produced hydrogen is consumed
by the petroleum industry or chemical industry either on site or via delivery through dedicated pipelines from large merchant by the petroleum industry or chemical industry either on site or via delivery through dedicated pipelines from large merchant
producers. The hydrogen hubs and the additional supply of hydrogen they will create will likely need to be matched to new producers. The hydrogen hubs and the additional supply of hydrogen they will create will likely need to be matched to new
sources of demand. sources of demand.
Hydrogen in its current uses has a dedicated infrastructure, but one that is small compared to Hydrogen in its current uses has a dedicated infrastructure, but one that is small compared to other energy commodities, such other energy commodities, such
as natural gas. For example, hydrogen pipelines comprise 1,600 miles in the United States compared with 300,000 miles of as natural gas. For example, hydrogen pipelines comprise 1,600 miles in the United States compared with 300,000 miles of
natural gas transmission pipelines. To service a fleet of numerous and relatively smaller hydrogen natural gas transmission pipelines. To service a fleet of numerous and relatively smaller hydrogen ~~refuelin g~~refueling stations for fuel stations for fuel
cell electric vehicles (FCEVs), for example, will require expanded hydrogen delivery infrastructurecell electric vehicles (FCEVs), for example, will require expanded hydrogen delivery infrastructure , such as additional , such as additional
pipelines and delivery trucks loaded with liquid or compressed, gaseous hydrogen, or advances in onsite hydrogen pipelines and delivery trucks loaded with liquid or compressed, gaseous hydrogen, or advances in onsite hydrogen
~~production.~~
~~DOE released an initial funding opportunity announcement (FOA) in September 2022. DOE plans to select six to ten hubs~~
~~with total funding of up to $6 to $7 billion. DOE is requiring a 50% cost share from nonfederal sources and anticipates~~
~~projects to be executed over 8 to 12 years. Based on state legislative activity, press releases, and news articles, it appears that~~
~~state governments, many in combination with private sector entities and one or more other states, have announced aspirations~~
~~for over twenty hydrogen hubs. Some have stated their non-binding intention to apply for funding for Regional Clean~~
~~Hydrogen Hubs. In general, the hubs must “demonstrate the production, processing, delivery, storage, and end-use of clean~~
~~hydrogen” (Section 40314 of IIJA).~~
production. DOE’s 2020 Hydrogen Program Plan identified rights-of-way and permitting for hydrogen pipelines as needs and challenges DOE’s 2020 Hydrogen Program Plan identified rights-of-way and permitting for hydrogen pipelines as needs and challenges
for hydrogen delivery infrastructure. Key policy issues that Congress may examine include the regulation of pipeline and for hydrogen delivery infrastructure. Key policy issues that Congress may examine include the regulation of pipeline and
other infrastructure siting, including potential federal-state jurisdictional conflicts, and the regulation of pipeline rates and other infrastructure siting, including potential federal-state jurisdictional conflicts, and the regulation of pipeline rates and
terms of service.terms of service.
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Hydrogen Hubs and Demonstrating the Hydrogen Energy Value Chain

Introduction
Hydrogen hubs are emerging centers of activity involving hydrogen production, transport, Hydrogen hubs are emerging centers of activity involving hydrogen production, transport,
delivery and end use to provide energy services, such as mobility, goods movement, and heat for delivery and end use to provide energy services, such as mobility, goods movement, and heat for
manufacturing processes.1 manufacturing processes.1 ~~Congress, in the Infrastructure Investment and Jobs Act (IIJA, §40315,~~
~~P.L. 117-58), authorized a program of Regional Clean Hydrogen Hubs. Congress appropriated $8~~
~~bil ion (IIJA, Division J, Title III) for the U.S. Department of Energy (DOE) to make awards to~~
~~support at least four demonstration projects involving networks of clean hydrogen producers and~~
~~consumers and the connecting infrastructure~~The U.S. Department of Energy (DOE) announced seven finalists for a total of up to $7 billion in grants for Regional Clean Hydrogen Hubs in October 2023, authorized in the Infrastructure Investment and Jobs Act (IIJA, P.L. 117-58, §40315).2 Congress created a new Office of Clean Energy .2 Congress created a new Office of Clean Energy
Demonstrations (OCED) to manage these and other Demonstrations (OCED) to manage these and other ~~non-hydrogen~~ demonstration demonstration projects. Congress appropriated $8 billion (Division J, Title III of the IIJA), including the $7 billion for the seven finalists and a further $1 billion for a Demand-side Support Initiative that DOE announced on July 5, 2023.3~~projects. DOE’s~~
~~Hydrogen and Fuel Cel Technologies Office (HFTO) retains the overal lead role for~~
~~coordination of DOE hydrogen programs.~~
A future economy using hydrogen as an energy A future economy using hydrogen as an energy ~~carrier3~~carrier4 and fuel could offer an alternative method and fuel could offer an alternative method
to provide the many modern energy services associated with fossil fuels.to provide the many modern energy services associated with fossil fuels.5 In addition to providing In addition to providing
a fuel for transportation—one of the larger applications envisaged—hydrogen could support a fuel for transportation—one of the larger applications envisaged—hydrogen could support
industrial processes or building operations or become part of the energy infrastructure by storing industrial processes or building operations or become part of the energy infrastructure by storing
energy. Demonstrations of hydrogen technology and value propositions based on hydrogen energy. Demonstrations of hydrogen technology and value propositions based on hydrogen
continue to emerge, ranging from one-off funded projects to public-private partnerships (P3s) continue to emerge, ranging from one-off funded projects to public-private partnerships (P3s)
with regional scope in the United States and abroad. Many such projects investigate uses of with regional scope in the United States and abroad. Many such projects investigate uses of
hydrogen as fuel for familiar services such as personal transportation/mobility or industrial heat hydrogen as fuel for familiar services such as personal transportation/mobility or industrial heat
for manufacturing. The hydrogen energy value chain spans resource extraction, production, for manufacturing. The hydrogen energy value chain spans resource extraction, production,
storage, and final conversion and end use. Although demonstrations have addressed portions of storage, and final conversion and end use. Although demonstrations have addressed portions of
this value chain, DOE’s statements on the Regional Clean Hydrogen Hubs envisage the full value this value chain, DOE’s statements on the Regional Clean Hydrogen Hubs envisage the full value
chain, following the prescriptions of the IIJA. chain, following the prescriptions of the IIJA.
DOE Programs and Demonstrations
DOE Hydrogen Programs
The DOE Hydrogen Program, led by the The DOE Hydrogen Program, led by the ~~HFTO~~Hydrogen and Fuel Cell Technologies Office within the Office of Energy Efficiency and within the Office of Energy Efficiency and
Renewable Energy (EERE) and including several other DOE offices, addresses the development Renewable Energy (EERE) and including several other DOE offices, addresses the development
of applications that use hydrogen in place of other fuels and of applications that use hydrogen in place of other fuels and technologies. A description of how this funding is divided among DOE offices may be found in 1 For further discussion of energy services, see A. Grubler ~~technologies. The Hydrogen Program~~
~~also considers hydrogen in its role as an established chemical feedstock. The Hydrogen Program~~
~~includes over 400 projects of research and development (R&D), systems integration,~~
~~demonstrations, and initial deployment activities performed by universities, national laboratories,~~
~~and industry.4~~

~~1 For further discussion of energy services, see A. Grubler~~ et al., et al., Energy Primer, International Institute for Applied , International Institute for Applied
Systems Analysis, Laxenburg,Systems Analysis, Laxenburg, Austria, AugustAustria, August 2015, pp. 82015, pp. 8 -14, at https://pure.iiasa.ac.at/id/eprint/11190/1/-14, at https://pure.iiasa.ac.at/id/eprint/11190/1/
EnergyPrimer_Aug15_HiRes.pdf; M.J. Fell, “EnergyPrimer_Aug15_HiRes.pdf; M.J. Fell, “ Energy Services: A Conceptual Review,”Energy Services: A Conceptual Review,” Energy Research and Social
Science, vol. 27 (May 2017), p. 129–140. , vol. 27 (May 2017), p. 129–140.
2 DOE, “Biden-Harris Administration Announces $7 Billion For America’s First Clean Hydrogen Hubs, Driving Clean Manufacturing and Delivering New Economic Opportunities Nationwide,” press release, October 13, 2023, https://www.energy.gov/articles/biden-harris-administration-announces-7-billion-americas-first-clean-hydrogen-hubs-driving. 3 U.S. Department of Energy, Biden-Harris Administration to Jumpstart Clean Hydrogen Economy with New Initiative to Provide Market Certainty and Unlock Private Investment, July 3, 2023, https://www.energy.gov/articles/biden-harris-administration-jumpstart-clean-hydrogen-economy-new-initiative-provide-market; CRS In Focus IF12514, DOE Appropriations for Hydrogen and Fuel Cell Activities: FY2024, by Martin C. Offutt. 4 Energy carriers are substances ~~2 For further discussion of DOE’s funding of hydrogen programs, see CRS In Focus IF12163,~~ ~~Department of Energy~~
~~Funding for Hydrogen and Fuel Cell Technology Program s, by Martin C. Offutt .~~
~~3 Energy carriers are substances~~ or physical phenomena such as electricity that have potential energy, which allows or physical phenomena such as electricity that have potential energy, which allows
them to perform work or provide heat or light, and that can be transmitted over long distances without substantially them to perform work or provide heat or light, and that can be transmitted over long distances without substantially
losing their potential energy. losing their potential energy.
~~4 Sunita Satyapal, Director, DOE Hydrogen and Fuel Cell T echnologies Office, 2022 AMR Plenary Session, June 6,~~
~~2022, at https://www.energy.gov/sites/default/files/2022-06/hfto-amr-plenary-satyapal-2022-1.pdf.~~
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~~Demonstrations~~
~~Purpose and Expectations~~
~~The essential purpose of demonstrations is to show technological feasibility.5 A demonstration~~
~~project receiving government support also reduces risk to subsequent investors as the government~~
~~assumes the role of first mover to some extent.6 Inserting a technology into a demonstration~~
~~project al ows testing in relative isolation so that any failures have limited consequences and do~~
~~not cascade more widely, for example into an energy network such as an electric power grid.7~~
~~Demonstration projects have been part of early deployment by sel ing products, such as outputs~~
~~from the demonstration project.8 DOE has stated that the Regional Clean Hydrogen Hubs~~
~~authorized in IIJA wil~~ 5 For further discussion of a hydrogen economy, see CRS Report R47487, The Hydrogen Economy: Putting the Pieces Together, by Martin C. Offutt. Congressional Research Service 1 link to page 6 Hydrogen Hubs and Demonstrating the Hydrogen Energy Value Chain CRS In Focus IF12514, DOE Appropriations for Hydrogen and Fuel Cell Activities: FY2024, by Martin C. Offutt. The Hydrogen Program also considers hydrogen in its role as an established chemical feedstock. The Hydrogen Program includes over 400 projects of research and development (R&D), systems integration, demonstrations, and initial deployment activities performed by universities, national laboratories, and industry.6 Announced Finalists for Regional Clean Hydrogen Hubs Grants DOE announced the seven finalists for the initial $7 bil ion of the Regional Clean Hydrogen Hubs on October 13, 2023.7 The hubs were funded at $8 bil ion in the IIJA. Previously, DOE had issued an initial funding opportunity announcement (FOA) in September 2022.8 DOE had then conducted initial consultations including a Request for Information (RFI) on February 16, 2022.9 DOE received more than 120 responses to the RFI comprising over 1,300 pages.10 DOE solicited and accepted concept papers through November 7, 2022, and sent letters of encouragement to authors of 33 of the concept papers. The funding applications were due on April 7, 2023, and 28 organizations applied.11 Figure 1 shows the geographies of the seven finalists. DOE is requiring a minimum 50% cost share from nonfederal sources and anticipates projects to be executed over 8 to 12 years.12 6 Sunita Satyapal, Director, DOE Hydrogen and Fuel Cell Technologies Office, 2022 AMR Plenary Session, June 6, 2022, at https://www.energy.gov/sites/default/files/2022-06/hfto-amr-plenary-satyapal-2022-1.pdf. 7 DOE, “Biden-Harris Administration Announces $7 Billion For America’s First Clean Hydrogen Hubs, Driving Clean Manufacturing and Delivering New Economic Opportunities Nationwide,” press release, October 13, 2023, https://www.energy.gov/articles/biden-harris-administration-announces-7-billion-americas-first-clean-hydrogen-hubs-driving. 8 U.S. Department of Energy, Bipartisan Infrastructure Law: Additional Clean Hydrogen Programs (Section 40314): Regional Clean Hydrogen Hubs Funding Opportunity Announcement, DE-FOA-0002779, September 22, 2022, at https://oced-exchange.energy.gov/FileContent.aspx?FileID=e159ff1f-5572-437e-b02d-b68acb461893. 9 87 Federal Register 8828, February 16, 2022. 10 U.S. Department of Energy, Hydrogen and Fuel Cell Technologies Office, Hydrogen and Fuel Cell Technologies Office Funding Opportunities, at https://www.energy.gov/eere/fuelcells/hydrogen-and-fuel-cell-technologies-office-funding-opportunities. 11 U.S. Department of Energy, “Biden-Harris Administration Announces Historic $7 Billion Funding Opportunity to Jump-Start America’s Clean Hydrogen Economy,” press release, September 22, 2022, at https://www.energy.gov/articles/biden-harris-administration-announces-historic-7-billion-funding-opportunity-jump-start; Colloquy between Senator Cassidy and Under Secretary for Infrastructure Crane, in U.S. Congress, Senate Committee on Energy and Natural Resources, Full Committee Hearing to Examine the Department of Energy’s Decision-Making Process for Awarding Competitive Loans and Grants Funded Through the Inflation Reduction Act and the Bipartisan Infrastructure Law, 118th Cong., 1st sess., October 19, 2023. 12 U.S. Department of Energy, Bipartisan Infrastructure Law: Additional Clean Hydrogen Programs (Section 40314): Regional Clean Hydrogen Hubs Funding Opportunity Announcement, DE-FOA-0002779, September 22, 2022, p. 17 at https://oced-exchange.energy.gov/FileContent.aspx?FileID=e159ff1f-5572-437e-b02d-b68acb461893. Congressional Research Service 2 Hydrogen Hubs and Demonstrating the Hydrogen Energy Value Chain Figure 1. Locations of Finalists Announced by DOE for Regional Clean Hydrogen Hubs Total Funding of $7 Billion Source: CRS figure based on DOE, “Biden-Harris Administration Announces $7 Bil ion For America’s First Clean Hydrogen Hubs, Driving Clean Manufacturing and Delivering New Economic Opportunities Nationwide,” press release, October 13, 2023, https://www.energy.gov/articles/biden-harris-administration-announces-7-bil ion-americas-first-clean-hydrogen-hubs-driving. Notes: ARCH2 = Appalachian Hydrogen Hub (Appalachian Regional Clean Hydrogen Hub); ARCHES = California Hydrogen Hub (Alliance for Renewable Clean Hydrogen Energy Systems); H2Hub = Gulf Coast Hydrogen Hub (HyVelocity H2Hub); HH2H = Heartland Hydrogen Hub (Heartland Hub); MACH2 = Mid-Atlantic Hydrogen Hub (Mid-Atlantic Clean Hydrogen Hub); MachH2 = Midwest Hydrogen Hub (Midwest Alliance for Clean Hydrogen); and PNW H2 = Pacific Northwest Hydrogen Hub (PNW H2). In the foregoing list, the DOE project name is given first fol owed by awardee’s name in parenthesis. Congress appropriated $8 bil ion (Division J, Title III of the IIJA), including the $7 bil ion for the seven finalists and a further $1 bil ion for a Demand-side Support Initiative that DOE announced on July 5, 2023. Demonstrations Purpose and Expectations The essential purpose of demonstrations is to show technological feasibility.13 A demonstration project receiving government support also reduces risk to subsequent investors as the government 13 See, for example, A. Grubler, F. Aguayo, and K. Gallagher, “Chapter 24—Policies for the Energy Technology Innovation System,” in Global Energy Assessment—Toward a Sustainable Future (New York and Laxenburg: Cambridge University Press, 2012), p. 1673; L.R. Cohen and R.G. Noll, The Technology Pork Barrel (Washington, DC: The Brookings Institution, 1991), p. 39. Congressional Research Service 3 link to page 7 Hydrogen Hubs and Demonstrating the Hydrogen Energy Value Chain assumes the role of first mover to some extent.14 Inserting a technology into a demonstration project allows testing in relative isolation so that any failures have limited consequences and do not cascade more widely, for example into an energy network such as an electric power grid.15 Demonstration projects have themselves been part of early deployment by selling products, such as outputs from the demonstration project.16 DOE has stated that the Regional Clean Hydrogen Hubs will yield insights and validate the claimed benefits (environmental and ~~yield insights and validate the claimed benefits (environmental and~~
otherwise) of the hydrogen economy and otherwise) of the hydrogen economy and ~~wil~~ will identify technology needs.identify technology needs.9
17 Hydrogen demonstration projects have addressed portions of the full hydrogen energy value chain Hydrogen demonstration projects have addressed portions of the full hydrogen energy value chain
depicted idepicted in Figure 12. Further information on the hydrogen energy value chain is described in CRS Report R47487, The Hydrogen Economy: Putting the Pieces Together, by Martin C. Offutt. Figure 2. Hydrogen Energy Value Chain Source: CRS 14 D.M. Hart, “Beyond the Technology Pork Barrel? An Assessment of.

~~5 See, for example, A. Grubler, F. Aguayo, and K. Gallagher, “Chapter 24 —Policies for the Energy T echnology~~
~~Innovation System,” in Global Energy Assessment—Toward a Sustainable Future (New York and Laxenburg:~~
~~Cambridge University Press, 2012), p. 1673; L.R. Cohen and R.G. Noll, The Technology Pork Barrel (Washington,~~
~~DC: T he Brookings Institution, 1991), p. 39.~~
~~6 D.M. Hart, “Beyond the T echnology Pork Barrel? An Assessment o f~~ the Obama Administration’s Energy the Obama Administration’s Energy
Demonstration Projects,” Demonstration Projects,” Energy Policy, vol. 119 (2018), pp. 367-376. , vol. 119 (2018), pp. 367-376.
715 Ibid. Ibid.
816 For discussion For discussion of salesof sales of synthetic fuel from a demonstration project, see U.S. of synthetic fuel from a demonstration project, see U.S. ~~Government Accountability Office,~~
~~SYNTHETIC FUELS~~General Accounting Office, Synthetic Fuels: Status of the Great Plains Coal Gasification Project—August 1, 1985, RCED-86-36, December , RCED-86-36, December
1985, p. 19, at https://www.gao.gov/assets/rced-86-36.pdf. 1985, p. 19, at https://www.gao.gov/assets/rced-86-36.pdf.
~~9 T estimony~~ 17 Testimony of Sunita Satyapal, Director, Hydrogen and Fuel of Sunita Satyapal, Director, Hydrogen and Fuel ~~Cell T echnologies~~ Cell Technologies Office, U.S. Office, U.S. Department of Energy, Department of Energy,
duringduring U.S.U.S. Congress,Congress, Senate Energy and Natural Resources,Senate Energy and Natural Resources, Clean Hydrogen, hearing, 117th Cong., 2nd sess.,, hearing, 117th Cong., 2nd sess., February February
10, 2022. 10, 2022.
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Hydrogen Hubs and Demonstrating the Hydrogen Energy Value Chain

~~Figure 1. Hydrogen Energy Value Chain~~

Source: CRS.
Notes: Hydrogen may be sourced from numerous primary Hydrogen may be sourced from numerous primary ~~resources~~ resources (amber, top left). The hydrogen (amber, top left). The hydrogen
production step (red) can occur in ways specific to the resourceproduction step (red) can occur in ways specific to the resource and is packaged and moved as the energy and is packaged and moved as the energy
carriercarrier (light blue) over long distances (transmission & delivery,(light blue) over long distances (transmission & delivery, light blue) and, as appropriate, converted to light blue) and, as appropriate, converted to
hydrogen and stored near the point of use (e.g., at the scale of a refueling station, light blue). The end-use hydrogen and stored near the point of use (e.g., at the scale of a refueling station, light blue). The end-use
technology such as the vehicle fuel technology such as the vehicle fuel ~~cel wil~~ cell wil then convert the carrierthen convert the carrier into useful energy (dark blue) to provide the into useful energy (dark blue) to provide the
energy serviceenergy service (amber, lower(amber, lower right). Depending on the method of hydrogen production, there may be an right). Depending on the method of hydrogen production, there may be an
additional step involving gas emissionsadditional step involving gas emissions cleanup and capture (green, enclosedcleanup and capture (green, enclosed in dotted lines) to remove in dotted lines) to remove
pol utants. This description is based on hydrogen as the energy carrier.pol utants. This description is based on hydrogen as the energy carrier. However,However, the sequence in the figure can the sequence in the figure can
also use other energy carriersalso use other energy carriers as intermediariesas intermediaries where indicated by the asterisks: where indicated by the asterisks:
(*) energy carrier(*) energy carrier created in production step (red) could instead be ammonia,created in production step (red) could instead be ammonia, electricity,electricity, or other. or other.
(**) within the dispensing and storage step (light blue), a non-hydrogen energy carrier(**) within the dispensing and storage step (light blue), a non-hydrogen energy carrier would be converted to would be converted to
hydrogen. hydrogen.

Brief History of Demonstrations
DOE has funded demonstration programs and projects at DOE has funded demonstration programs and projects at ~~smal~~ small and large scale since its inception and large scale since its inception
in 1977, many of which have included hydrogen production. Congress authorized these programs in 1977, many of which have included hydrogen production. Congress authorized these programs
for explicit purposes and provided DOE with both annual and one-time supplemental for explicit purposes and provided DOE with both annual and one-time supplemental
appropriations including from the IIJA and the American Recovery and Reinvestment Act of 2009 appropriations including from the IIJA and the American Recovery and Reinvestment Act of 2009
(ARRA,(ARRA, P.L. 111-5). The Regional Clean Hydrogen Hubs P.L. 111-5). The Regional Clean Hydrogen Hubs ~~funded in the IIJA~~ continue this sort of continue this sort of
demonstration activity at a conceptual level. demonstration activity at a conceptual level.
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~~Hydrogen Hubs and Demonstrating the Hydrogen Energy Value Chain~~

The Energy Conservation and Production Act The Energy Conservation and Production Act ~~of 1976~~ (P.L. 94-385) established a demonstration (P.L. 94-385) established a demonstration
program for buildings energy conservation “to test the feasibility and effectiveness” of financial program for buildings energy conservation “to test the feasibility and effectiveness” of financial
assistance for the adoption of energy conservation measures.assistance for the adoption of energy conservation measures.1018 The early DOE demonstrations The early DOE demonstrations
ranged in scope and scale from over 30 ranged in scope and scale from over 30 ~~smal~~ small rooftop solar photo-voltaic generation projects to rooftop solar photo-voltaic generation projects to
larger, single demonstrations such as synthetic fuels plants. One such plant, the Great Plains coal larger, single demonstrations such as synthetic fuels plants. One such plant, the Great Plains coal
gasification plant, attempted to demonstrate the conversion of coal into raw gas containing gasification plant, attempted to demonstrate the conversion of coal into raw gas containing
hydrogen and other constituents for synthesis of ammonia and other gases.hydrogen and other constituents for synthesis of ammonia and other gases.1119
DOE curtailed the number of demonstration plants in the 1980s. DOE curtailed the number of demonstration plants in the 1980s.1220 Nonetheless, later that decade, Nonetheless, later that decade,
nine clean coal demonstrations were established to burn or otherwise use coal in a way that nine clean coal demonstrations were established to burn or otherwise use coal in a way that
reduces release of pollutants.reduces release of pollutants.1321 Later plans for large-scale demonstrations included FutureGen, an Later plans for large-scale demonstrations included FutureGen, an
effort proposed by DOE in 2003 to build a coal-fired power plant with hydrogen production and effort proposed by DOE in 2003 to build a coal-fired power plant with hydrogen production and
carbon capture and storage.carbon capture and storage.1422 The plant was to be based on coal gasification and was supported by The plant was to be based on coal gasification and was supported by
outlays both from annual appropriations and $1 outlays both from annual appropriations and $1 ~~bil ion~~ billion awarded from ARRA, with roughly $200 awarded from ARRA, with roughly $200
~~mil ion~~ million of the latter being spent. The project was re-conceptualized and then ended in 2015.of the latter being spent. The project was re-conceptualized and then ended in 2015.1523
The Energy Policy Act of 2005 (EPAct05, P.L. 109-58) authorized the Next Generation Nuclear The Energy Policy Act of 2005 (EPAct05, P.L. 109-58) authorized the Next Generation Nuclear
Plant (42 U.S.C. §16021), a prototype plant based on the Generation IV Nuclear Energy Systems Plant (42 U.S.C. §16021), a prototype plant based on the Generation IV Nuclear Energy Systems
Initiative (42 U.S.C. §16272), to generate electricity, hydrogen, or both. Congress appropriated Initiative (42 U.S.C. §16272), to generate electricity, hydrogen, or both. Congress appropriated
~~over $500 mil ion for Phase I of the project, including research and development, design~~
~~engineering, licensing, and project management.16 DOE decided not to proceed with Phase II in~~
~~2011 following a review by its Nuclear Energy Advisory Committee.17~~
~~In 2021, the IIJA consolidated demonstration programs under one office, OCED, and~~
~~appropriated $21.5 bil ion to support large-scale demonstration projects, including the $8 bil ion~~
~~for the Regional Clean Hydrogen Hubs.18~~

10 18 12 U.S.C. 12 U.S.C. §1701z-8. §1701z-8.
1119 National Research Council, National Research Council, Energy Research at DOE: Was It Worth It? Energy Efficiency and Fossil Energy
Research 1978 to 2000, Washington, DC, 2001, p. 175. , Washington, DC, 2001, p. 175.
1220 National Research Council, National Research Council, Energy Research at DOE: Was It Worth It? Energy Efficiency and Fossil Energy
Research 1978 to 2000, Washington, DC, 2001. , Washington, DC, 2001.
1321 L.R. Cohen and R.G. L.R. Cohen and R.G. Noll, Noll, The Technology Pork Barrel (Washington, DC: (Washington, DC: ~~T he~~The Brookings Institution, 1991), p. 31; Brookings Institution, 1991), p. 31;
National Research Council, National Research Council, Energy Research at DOE: Was It Worth It? Energy Efficiency and Fossil Energy Research
1978 to 2000, Washington, DC, 2001, p. 216. , Washington, DC, 2001, p. 216.
14 22 U.S. U.S. Department of Energy, “Abraham and Dobriansky Announce ‘FutureGen,’” press release, February 27, 2003, at Department of Energy, “Abraham and Dobriansky Announce ‘FutureGen,’” press release, February 27, 2003, at
https://www.energy.gov/management/february-27-2003-abraham-and-dobriansky-announce-futuregen. https://www.energy.gov/management/february-27-2003-abraham-and-dobriansky-announce-futuregen.
1523 Manuel Quinones, “Lawmakers Likely to Scrutinize DOE Closeout of FutureGen Manuel Quinones, “Lawmakers Likely to Scrutinize DOE Closeout of FutureGen Project,” Project,” Environment & Energy
Daily, February 4, 2015, at http://www.eenews.net/eedaily/stories/1060012838/. , February 4, 2015, at http://www.eenews.net/eedaily/stories/1060012838/.
~~16 U.S. Department of Energy, Office of Nuclear Energy, Next Generation Nuclear Plant: A Report to Congress, April~~
~~2010, p. 7.~~
~~17 U.S. Government Accountability Office,~~ ~~Advanced Reactor Research: DOE Supports Multiple Technologies but~~
~~Actions Needed to Ensure a Prototype Is Built, 14-545, June 2014, p. 11.~~
~~18 M. Klembara, U.S. Department of Energy, “Office of Clean Energy Demonstrations,” April 15, 2022, at~~
~~https://energyresearch.ucf.edu/wp-content/uploads/2022/04/Klembara-OCED_20220415.pdf.~~
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~~Hydrogen Hubs and Demonstrating the Hydrogen Energy Value Chain~~

~~The U.S. Synthetic Fuels Corporation and the Great Plains~~ Congressional Research Service 5 Hydrogen Hubs and Demonstrating the Hydrogen Energy Value Chain over $500 million for Phase I of the project, including research and development, design engineering, licensing, and project management.24 DOE decided not to proceed with Phase II in 2011 following a review by its Nuclear Energy Advisory Committee.25 In 2021, the IIJA consolidated demonstration programs under one office, OCED, and appropriated $21.5 billion to support large-scale demonstration projects, including the $8 billion for the Regional Clean Hydrogen Hubs.26 The U.S. Synthetic Fuels Corporation and the Great Plains Coal Gasification ~~Coal Gasification~~
Plant
In 1980, the Energy Security Act (P.L. 96-294) established the U.S. Synthetic Fuels Corporation (SFC). Congress In 1980, the Energy Security Act (P.L. 96-294) established the U.S. Synthetic Fuels Corporation (SFC). Congress
used $2.8 bil ionused $2.8 bil ion of the Energy Security Reserve,of the Energy Security Reserve, established and funded first in fiscal year 1980 by the Interior and established and funded first in fiscal year 1980 by the Interior and
Related AgenciesRelated Agencies Appropriations Act (P.L. 96-126), to fund the Great Plains coal gasification plant in North Appropriations Act (P.L. 96-126), to fund the Great Plains coal gasification plant in North
Dakota and the Parachute CreekDakota and the Parachute Creek Oil Shale project in Colorado. Five projectsOil Shale project in Colorado. Five projects entered the construction phase in entered the construction phase in
total and weretotal and were the beneficiariesthe beneficiaries of loan and price guarantees. Congress abolished the SFC in 1986 (P.L. 99-190) of loan and price guarantees. Congress abolished the SFC in 1986 (P.L. 99-190)
and rescinded its remainingand rescinded its remaining budget authority, although the projects continued.budget authority, although the projects continued.19
27 Fol owingFol owing the August 1985 loan default at the Great Plains plant, DOE purchased the plant for $1 bil ion in 1986 the August 1985 loan default at the Great Plains plant, DOE purchased the plant for $1 bil ion in 1986
and sold it to the Basin Electric Power Cooperativeand sold it to the Basin Electric Power Cooperative ~~in 1988.20 In 2021, Bakken Energy agreed to purchase the~~
~~plant and announced it wil partner with Mitsubishi Power Americas to develop the plant into a hydrogen~~
~~production facility with carbon capture and storage.21~~
~~Status of Hydrogen Hubs~~
~~DOE’s Regional Clean Hydrogen Hub Program~~
~~DOE launched an initial funding opportunity announcement (FOA) in September 2022.22 DOE~~
~~plans to select six to ten Regional Clean Hydrogen Hubs with combined total funding of up to $6~~
~~to $7 bil ion, with a “preferred maximum” of $1.25 bil ion per hub. DOE states that the balance~~
~~of the $8 bil ion appropriated for the hubs in the IIJA may be reserved for additional hubs or other~~
~~supporting activities. DOE is requiring a minimum 50% cost share from nonfederal sources and~~
~~anticipates projects to be executed over 8 to 12 years.23~~
~~When issuing the FOA, DOE said that concept papers wil be due on November 7, 2022, and full~~
~~funding applications wil be due by April 7, 2023.24 DOE had conducted initial consultations~~
~~including a Request for Information (RFI) on February 16, 2022.25 DOE received more than 120~~
~~responses to the RFI comprising over 1,300 pages.26~~
~~Based on state legislative activity, press releases, and news articles, it appears that state~~
~~governments, many in combination with private sector entities and one or more other states, have~~

~~19 M. Holt, Energy Policy: Is the U.S. Ready for the 1990s? Energy Security Laws of the 1970s, Environmental and~~
~~Energy Study Conference, U.S. Congress, April 18, 1988, pp. 14 -15.~~
~~20 National Energy T echnology~~ in 1988.28 Regional Clean Hydrogen Hubs Requirements Congress required the Regional Clean Hydrogen Hubs must “demonstrate the production, processing, delivery, storage, and end-use of clean hydrogen.”29 The IIJA revised Section 813 of EPAct05 to require the Secretary of Energy to use certain criteria in selecting proposals for the Regional Clean Hydrogen Hubs. The DOE describes these criteria as follows:30 • “Feedstock diversity—at least one hub shall demonstrate the production of clean hydrogen from fossil fuels, one hub from renewable energy, and one hub from nuclear energy. • End-use diversity—at least one hub shall demonstrate the end-use of clean hydrogen in the electric power generation sector, one in the industrial sector, one in the residential and commercial heating sector, and one in the transportation sector. 24 U.S. Department of Energy, Office of Nuclear Energy, Next Generation Nuclear Plant: A Report to Congress, April 2010, p. 7. 25 U.S. Government Accountability Office, Advanced Reactor Research: DOE Supports Multiple Technologies but Actions Needed to Ensure a Prototype Is Built, 14-545, June 2014, p. 11. 26 M. Klembara, U.S. Department of Energy, “Office of Clean Energy Demonstrations,” April 15, 2022, at https://energyresearch.ucf.edu/wp-content/uploads/2022/04/Klembara-OCED_20220415.pdf. 27 M. Holt, Energy Policy: Is the U.S. Ready for the 1990s? Energy Security Laws of the 1970s, Environmental and Energy Study Conference, U.S. Congress, April 18, 1988, pp. 14-15. 28 National Energy Technology Laboratory, Laboratory, Gasifipedia:7.5.1. Great Plains Synfuels Plant, at , at
https://www.netl.doe.gov/research/Coal/energy-systems/gasification/gasifipedia/great-plains; Thttps://www.netl.doe.gov/research/Coal/energy-systems/gasification/gasifipedia/great-plains; T . W. Lippman, “. W. Lippman, “ ~~Huge~~
~~Synthetic Fuel Plant Now Operating at a Profit,” Washington Post, February 18, 1990.~~
~~21 S. Ali, “Bakken Energy Plans North Dakota Hydrogen Hub,” H2 Bulletin, August 17, 2021; Bakken Energy, “Clean~~
~~Hydrogen: Bakken Energy Is Currently Focused on the Development of Clean Hydrogen Production, T ransportation,~~
~~Storage and Applications,” press release, 2022; J. McPherson, “Companies Aim to Build ‘Clean Hydrogen’ Hub,”~~
Associated Press, June 4, 2021.
~~22 U.S. Department of Energy,~~ ~~Bipartisan Infrastructure Law: Additional Clean Hydrogen Programs (Section 40314):~~
~~Regional Clean Hydrogen Hubs Funding Opportunity Announcement, DE-FOA-0002779, September 22, 2022, at~~
~~https://oced-exchange.energy.gov/FileContent.aspx?FileID=e159ff1f-5572-437e-b02d-b68acb461893.~~
~~23 Ibid., p. 17.~~
~~24 U.S. Department of Energy, “Biden-Harris Administration Announces Historic $7 Billion Funding Opportunity to~~
~~Jump-Start America’s Clean Hydrogen Economy,” press release, September 22, 2022, at https://www.energy.gov/~~
~~articles/biden-harris-administration-announces-historic-7-billion-funding-opportunity-jump-start.~~
~~25 87 Federal Register 8828, February 16, 2022.~~
~~26 U.S. Department of Energy, Hydrogen and Fuel Cell T echnologies Office,~~ ~~Hydrogen and Fuel Cell Technologies~~
~~Office Funding Opportunities, at https://www.energy.gov/eere/fuelcells/hydrogen-and-fuel-cell-technologies-office-~~
~~funding-opportunities.~~
~~Congressional Research Service~~

5

~~link to page 9~~

~~Hydrogen Hubs and Demonstrating the Hydrogen Energy Value Chain~~

~~announced interest in over twenty hydrogen hubs and stated their non-binding intention to apply~~
~~for funding for Regional Clean Hydrogen Hubs. At least four private al iances have also declared~~
~~interest in pursuing the Regional Clean Hydrogen Hubs. Figure 2 depicts states with entities that~~
~~appear to have expressed interest in IIJA funding for hydrogen hubs.~~
~~CRS found hydrogen hub activities in various stages of planning, with some groups having a~~
~~declared geography and others not specifying a location. Groups also are soliciting additional~~
~~participants.~~
~~Figure 2. Regions, States, and Localities Expressing Interest in Hydrogen Hub~~
~~Development~~
~~Not al have declared they wil apply for DOE funding~~

Source: CRS figure based on legislation, press announcements and news articles as of September 19, 2022.
Notes: Multi-state public-private partnerships (P3s, Type 1) are outlined in green, private only (Type 2) in red,
~~public only (Type 3) in orange. Los Angeles includes one P3 hub and one hub declared by the city council.~~
~~Al iances are groups involving governments and/or private entities in more than one state.~~
~~Requirements~~
~~Congress required the Regional Clean Hydrogen Hubs must “demonstrate the production,~~
~~processing, delivery, storage, and end-use of clean hydrogen.” 27 The IIJA revised Section 813 of~~
~~EPAct05 to require the Secretary of Energy to use certain criteria in selecting among proposals~~
~~for the Regional Clean Hydrogen Hubs. The DOE describes these criteria as:28~~

~~27 42 U.S.C. §16161a.~~
28 T he criteria are DOE’s paraphrasing of 42 U.S.C. §16161a, quoted from DOE Hydrogen Program, Request for
~~Congressional Research Service~~

6

~~Hydrogen Hubs and Demonstrating the Hydrogen Energy Value Chain~~

~~ “Feedstock diversity—at least one hub shal demonstrate the production of clean~~
~~hydrogen from fossil fuels, one hub from renewable energy, and one hub from~~
~~nuclear energy.~~
~~ End-use diversity—at least one hub shal demonstrate the end-use of clean~~
~~hydrogen in the electric power generation sector, one in the industrial sector, one~~
~~in the residential and commercial heating sector, and one in the transportation~~
~~sector.~~
~~ Geographic diversity—each regional clean hydrogen hub shal be located in a~~
~~different region of the United States and shal use energy resources that are~~
~~abundant in that region.~~
Huge Synthetic Fuel Plant Now Operating at a Profit,” Washington Post, February 18, 1990. 29 42 U.S.C. §16161a(b)(2). 30 The criteria are DOE’s paraphrasing of 42 U.S.C. §16161a, quoted from DOE Hydrogen Program, Request for Information # DE-FOA-0002664.0002: Regional Clean Hydrogen Hubs Implementation Strategy, pp. 4-5, at https://eere-exchange.energy.gov/Default.aspx?foaId=5d96172f-e9b6-48ff-94ac-5579c3531526. Congressional Research Service 6 Hydrogen Hubs and Demonstrating the Hydrogen Energy Value Chain • Geographic diversity—each regional clean hydrogen hub shall be located in a different region of the United States and shall use energy resources that are abundant in that region. • Hubs in natural gas-producing regions—at least two regional clean hydrogen Hubs in natural gas-producing regions—at least two regional clean hydrogen
hubs hubs ~~shal~~ shall be located in the regions of the United States with the greatest natural be located in the regions of the United States with the greatest natural
gas resources. gas resources.
• Employment—DOE Employment—DOE ~~shal~~ shall give priority to regional clean hydrogen hubs that are give priority to regional clean hydrogen hubs that are
likely likely to create opportunities for to create opportunities for ~~skil ed~~skilled training and long-term employment to training and long-term employment to
the greatest number of residents in the region. the greatest number of residents in the region.
• Additional Additional Criteria—DOE may take into consideration other criteria that are Criteria—DOE may take into consideration other criteria that are
necessary or appropriate to carry out the regional clean hydrogen hubs program.” necessary or appropriate to carry out the regional clean hydrogen hubs program.”
DOE Funding DOE received but has not obligated all funds from the IIJA. Unexpended balances include funds for the seven Regional Clean Hydrogen Hubs (IIJA §40314) announced on October 13, 2023—a program which received $1.6 billion in each of FY2022 through FY2024. The Senate Appropriations Committee had stated its expectation that DOE would make award selections by the end of calendar year 2023 (S.Rept. 118-72). Experience with Hydrogen Projects
Early Deployment
Industrial processes that use hydrogen already occur at large scale, such as petroleum refining or Industrial processes that use hydrogen already occur at large scale, such as petroleum refining or
production of ammonia to make urea for fertilizer.production of ammonia to make urea for fertilizer.2931 Demonstrations of additional industrial uses Demonstrations of additional industrial uses
of hydrogen are being developed in cement, ceramics, and glass manufacturing—substituting of hydrogen are being developed in cement, ceramics, and glass manufacturing—substituting
hydrogen for operations that currently use other fuels.hydrogen for operations that currently use other fuels.3032
The customer-facing hydrogen technologies now available to retail consumers include hydrogen The customer-facing hydrogen technologies now available to retail consumers include hydrogen
refueling stations and fuel refueling stations and fuel ~~cel~~ cell electric vehicle (FCEV) cars. Honda, Hyundai, and Toyota have electric vehicle (FCEV) cars. Honda, Hyundai, and Toyota have
manufactured FCEV cars to buy or lease in North America. manufactured FCEV cars to buy or lease in North America. ~~There are over 50 public, retail~~
~~refueling stations—one in Hawai and the rest in California.31 Car makers had sold over 14,000~~
~~light-duty vehicles in the United States, cumulative through September 30, 2022,32 with over~~
~~12,000 of these on the road at the end of 2021.33 The sales of FCEV cars is smal compared to~~
~~cars of al types sold in the United States, which comprised 3.4 mil ion sales in 2020 alone.34~~

Inform ation # DE-FOA-0002664.0002: Regional Clean Hydrogen Hubs Im plem entation Strategy , pp. 4-5, at
~~https://eere-exchange.energy.gov/Default.aspx?foaId=5d96172f-e9b6-48ff-94ac-5579c3531526.~~
29According to data maintained by the California Energy Commission (CEC), California had 65 public retail hydrogen refueling stations (HRS) for light-duty vehicles and 6 heavy-duty HRS as of June 30, 2023, with an additional 35 light-duty, 4 heavy-duty, and 5 multi-use HRS planned.33 There is one public HRS in Hawaii.34 CEC estimates that California has built almost four times as much dispensing capacity as it needs for the FCEVs in the state.35 31 International Energy Agency (IEA), International Energy Agency (IEA), The Future of Hydrogen: Seizing Today’s Opportunities, Paris, June 2019, p. 32. , Paris, June 2019, p. 32.
~~30 International Energy Agency~~32 IEA, , Global Hydrogen Review 2021, Paris, October 2021, p. 6. , Paris, October 2021, p. 6.
~~31 U.S.~~ 33 California Energy Commission, Hydrogen Refueling Stations in California, June 30, 2023, https://www.energy.ca.gov/data-reports/energy-almanac/zero-emission-vehicle-and-infrastructure-statistics/hydrogen-refueling. 34 U.S. Department of Energy, Alternative Fuels Data Center, Department of Energy, Alternative Fuels Data Center, Hydrogen Fueling Station Locations, at , at
https://afdc.energy.gov/fuels/hydrogen_locations.html#/find/nearest?fuel=HY. https://afdc.energy.gov/fuels/hydrogen_locations.html#/find/nearest?fuel=HY.
~~32; California Fuel Cell Partnership, By the Numbers: FCEV Sales, FCEB, and Hydrogen Station Data , September,~~
~~2022, at https://cafcp.org/by_the_numbers.~~
~~33 R.C. Samsun et al., “Deployment of Fuel Cell Vehicles and Hydrogen Refueling Station Infrastructure: A Global~~
~~Overview and Perspectives,” Energies, vol. 15, no. 4975 (July 7, 2022), p. 5.~~
~~34 S.C. Davis and R.G. Boundy, Transportation Energy Data Book, Edition 39, Oak Ridge National Laboratory,~~
~~Congressional Research Service~~

7

~~Hydrogen Hubs and Demonstrating the Hydrogen Energy Value Chain~~

~~Overal , FCEV cars comprised~~ 35 J. Berner, M. Crowell, and A. Martinez, Joint Agency Staff Report on Assembly Bill 8: 2022 Annual Assessment of Time and Cost Needed to Attain 100 Hydrogen Refueling Stations in California, California Energy Commission, CEC-600-2022-064, December 22, 2022, p. 39, https://www.energy.ca.gov/publications/2022/joint-agency-staff-report-assembly-bill-8-2022-annual-assessment-time-and-cost. Congressional Research Service 7 Hydrogen Hubs and Demonstrating the Hydrogen Energy Value Chain There were 14,900 FCEV cars registered in the United States at the end of 2022.36 Car makers had sold or leased over 17,000 light-duty vehicles in the United States, cumulative through October 25, 2023.37 The sales of FCEV cars is small compared to cars of all types sold in the United States, which comprised 3.35 million sales in 2021 alone.38 Overall, FCEV cars comprised slightly fewer than 1 in every 20,000 cars in the United States at the end of 2021.39~~slightly fewer than 1 in every 20,000 cars in the United States at~~
~~the end of 2021.35~~
DOE has identified other applications in early deployment. These include over DOE has identified other applications in early deployment. These include over 5060,000 fork lifts ,000 fork lifts
used for logistical operations—known as material handling equipment (MHE)—and hydrogen used for logistical operations—known as material handling equipment (MHE)—and hydrogen
back-up power devices totaling over 500 megawatts (MW) capacity.back-up power devices totaling over 500 megawatts (MW) capacity.3640 The two applications The two applications
together received roughly $40 together received roughly $40 ~~mil ion from the American Recovery and Reinvestment Act (P.L.~~
~~111-5).37~~million from ARRA.41
DOE identified several technology cost advantages of hydrogen versus battery-electric MHE, DOE identified several technology cost advantages of hydrogen versus battery-electric MHE,
beginning with lower total cost of beginning with lower total cost of ~~ownership38~~ownership42 for the hydrogen version. for the hydrogen version.3943 Hydrogen MHE Hydrogen MHE
require refueling less often than battery-electric MHE require recharging, possibly avoiding work require refueling less often than battery-electric MHE require recharging, possibly avoiding work
stoppages. DOE has noted that its own funding of purchase of fork lifts has been stoppages. DOE has noted that its own funding of purchase of fork lifts has been ~~smal~~ small relative to relative to
that of industry. 524 units were purchased according to a DOE-industry cost-sharing arrangement that of industry. 524 units were purchased according to a DOE-industry cost-sharing arrangement
~~cost~~ from the ARRA funding noted above and another 189 from DOE annual appropriations. from the ARRA funding noted above and another 189 from DOE annual appropriations.
DOE found that through the end of 2017, a further 21,000 units were in service at the sole DOE found that through the end of 2017, a further 21,000 units were in service at the sole
expense of expense of ~~industry with users including~~industry; users included large “big box” retail, food suppliers and retailers, car large “big box” retail, food suppliers and retailers, car
makers, and freight movers.makers, and freight movers.4044 By 2020, DOE estimated there were 35,000 such units, By 2020, DOE estimated there were 35,000 such units,4145 and, by and, by
~~2022~~2023, over , over 5060,000.,000.42
~~Though early in the project execution phase,~~ 46 Advanced Clean Energy Storage, a hydrogen and Advanced Clean Energy Storage, a hydrogen and
energy storage facilityenergy storage facility now majority-owned by a subsidiary of Chevron USA, received a DOE loan guarantee in June 2022., received a DOE loan guarantee in June 2022.4347 The guarantee was 36 U.S. Department of Energy, Alternative Fuels Data Center, Hydrogen Vehicles Registered in 2022, at https://afdc.energy.gov/transatlas/#/?fuel=HY&view=vehicle_count. 37 California Fuel Cell Partnership, By the Numbers: FCEV Sales, FCEB, and Hydrogen Station Data, October 25, 2023, at https://cafcp.org/by_the_numbers. 38 S.C. Davis and R.G. Boundy, Transportation Energy Data Book, Edition 40, Oak Ridge National Laboratory, ORNL/TM-2022/2376, Oak Ridge, TN, June 2022, p. 3-9. 39 R.C. Samsun et al., “Deployment of Fuel Cell Vehicles and Hydrogen Refueling Station Infrastructure: A Global Overview and Perspectives,” Energies, vol. 15, no. 4975 (July 7, 2022), p. 23. 40 U.S. Department of Energy, DOE National Clean Hydrogen Strategy and Roadmap, June 2023, pp. 14 and 36, at https://www.hydrogen.energy.gov/library/roadmaps-vision/clean-hydrogen-strategy-roadmap. 41 See note 53 to U.S. Department of Energy, DOE National Clean Hydrogen Strategy and Roadmap, June 2023, p. 86 and 36, at https://www.hydrogen.energy.gov/library/roadmaps-vision/clean-hydrogen-strategy-roadmap. 42 Total cost of ownership refers to the sum of the initial cost plus any operation and maintenance costs including fuel consumption over the lifetime of the equipment. 43 DOE Office of Energy Efficiency and Renewable Energy, Early Markets: Fuel Cells for Material Handling Equipment ~~The guarantee was for a~~
~~$504 mil ion loan44 to construct 220 MW of electrolyzers45 in Delta, UT, paired with underground~~
~~caverns to store the hydrogen. The estimated storage capacity is 150 gigawatt-hours (GWh). The~~
~~off-taker (i.e., end-user) for the stored hydrogen plans to use a hydrogen-capable gas turbine~~
~~supplied by project partner Mitsubishi Power Americas to generate electricity.46~~

~~ORNL/T M-2020/1770, Oak Ridge, T N, April 2021, p. 3 -9.~~
~~35 Samsun et al, p. 23.~~
~~36 Sunita Satyapal, Director, DOE Hydrogen and Fuel Cell T echnologies Office, 2022 AMR Plenary Session, June 6,~~
~~2022, at https://www.energy.gov/sites/default/files/2022-06/hfto-amr-plenary-satyapal-2022-1.pdf.~~
~~37 U.S. Department of Energy, DOE National Clean Hydrogen Strategy and Roadmap , September 2022, p. 27, at~~
~~https://www.hydrogen.energy.gov/pdfs/clean-hydrogen-strategy-roadmap.pdf.~~
~~38 T otal cost of ownership refers to the sum of the initial cost plus any operation and maintenance costs including fuel~~
~~consumption over the lifetime of the equipment.~~
~~39 DOE Office of Energy Efficiency and Renewable Energy,~~ ~~Early Markets: Fuel Cells for Material Handling~~
~~Equipm ent~~, DOE/EE-0751, February 2014, at https://www1.eere.energy.gov/hydrogenandfuelcells/pdfs/, DOE/EE-0751, February 2014, at https://www1.eere.energy.gov/hydrogenandfuelcells/pdfs/
early_markets_mhe_fact_sheet.pdf. early_markets_mhe_fact_sheet.pdf.
4044 P. Devlin and G. P. Devlin and G. Moreland, Moreland, Industry Deployed Fuel Cell Powered Lift Trucks, Record # 18002, May 23, 2018, at , Record # 18002, May 23, 2018, at
https://www.hydrogen.energy.gov/https://www.hydrogen.energy.gov/~~pdfs/18002_industry_deployed_fc_powered_lift_trucks.pdf.~~
~~41 U.S.~~ library/program-records. 45 U.S. Department of Energy, Department of Energy, Hydrogen Program Plan, DOE/EE-2128, Washington, DC, November 2020, p. 28. , DOE/EE-2128, Washington, DC, November 2020, p. 28.
4246 Sunita Satyapal, Director, DOE Hydrogen and Fuel Cell Sunita Satyapal, Director, DOE Hydrogen and Fuel Cell ~~T echnologies~~ Technologies Office, Office, 2022 AMR Plenary Session, June 6, , June 6,
pp. 5 and 49, 2022, at https://www.energy.gov/sites/default/files/2022-06/hfto-amr-plenary-satyapal-2022-1.pdf. pp. 5 and 49, 2022, at https://www.energy.gov/sites/default/files/2022-06/hfto-amr-plenary-satyapal-2022-1.pdf.
4347 U.S. U.S. Department of Energy, Department of Energy, DOE Announces First Loan Guarantee for a Clean Energy Project in Nearly a Decade, ,
June 8, 2022, at https://www.energy.gov/articles/doe-announces-first-loan-guarantee-clean-energy-project-nearly-June 8, 2022, at https://www.energy.gov/articles/doe-announces-first-loan-guarantee-clean-energy-project-nearly-
decadedecade.
~~44 T itle XVII of the Energy Policy Act of 2005, P.L. 109-58, authorizes DOE to issue loan guarantees.~~
~~45 An electrolyzer is an electrochemical device, powered by electricity, that decomposes water into hydrogen and~~
~~oxygen.~~
~~46 Mitsubishi Power Americas, “World’s Largest Renewable Energy Storage Project Announced in~~; Chevron Corporation, “Chevron Acquires Majority Stake in the Advanced Clean Energy Storage Hydrogen Project in Delta, Utah,” press Utah,” press
release, release, ~~May 30, 2019, at https://power.mhi.com/regions/amer/news/190530.html.~~
September 12, 2023, https://www.chevron.com/newsroom/2023/q3/chevron-acquires-majority-stake-in-advanced-clean-energy-storage-project-delta-utah. Congressional Research Service Congressional Research Service

8 8

Hydrogen Hubs and Demonstrating the Hydrogen Energy Value Chain

for a $504 million loan48 to construct 220 MW of electrolyzers49 in Delta, UT, paired with underground caverns to store the hydrogen. The estimated storage capacity in each of two caverns is 5.5 million kg of hydrogen. Each cavern would have roughly 110 gigawatt-hours (GWh) of stored potential energy, assuming a combined-cycle gas turbine were used to re-electrify the hydrogen.50 Mitsubishi Power delivered two of its J-class hydrogen-capable combustion turbines in June and July 2023, which the off-taker is to operate using fuel from the caverns.51 Hydrogen Demonstration Projects
Hydrogen demonstration projects have ranged from single refueling stations to linked activities Hydrogen demonstration projects have ranged from single refueling stations to linked activities
for realizingfor realizing broader value propositions.broader value propositions.4752 As one example, the Shore-to-Store project at the Port As one example, the Shore-to-Store project at the Port
of Los Angeles, completed its initialof Los Angeles, completed its initial phase in February 2022 to demonstrate the shore-side phase in February 2022 to demonstrate the shore-side
movement of goods by zero-emission vehicles. movement of goods by zero-emission vehicles. ~~Shel~~ Shell Oil Products US built and operated two Oil Products US built and operated two
hydrogen refueling stations. Kenworth, a truck manufacturer group within vehicle and parts hydrogen refueling stations. Kenworth, a truck manufacturer group within vehicle and parts
maker PACCAR, provided 10 vehicles—the hydrogen fuel maker PACCAR, provided 10 vehicles—the hydrogen fuel ~~cel~~ cell version of its T680, a class 8 version of its T680, a class 8
tractor, with Toyota’s fuel tractor, with Toyota’s fuel ~~cel~~ cell electric system.electric system.4853 Project partners contributed $41.4 Project partners contributed $41.4 ~~mil ion~~million and and
the California Air Resources Board (CARB) contributed $41.1 the California Air Resources Board (CARB) contributed $41.1 ~~mil ion.49~~million.54 Air Liquide, an industrial chemicals maker, announced a project at the Port of Houston in December 2022 that would involve fuel cell-electric trucks for hauling offloaded cargo within a port (i.e., drayage) and other shore-side hauling needs.55
The buildings sector includes demonstrations of hydrogen technologies and hydrogen fuel The buildings sector includes demonstrations of hydrogen technologies and hydrogen fuel
applications, though there is almost no evidence of retailapplications, though there is almost no evidence of retail use of hydrogen.use of hydrogen.5056 A number of A number of
demonstration projects are underway aimed at so-demonstration projects are underway aimed at so-~~cal ed~~called hydrogen injection into existing natural hydrogen injection into existing natural
gas distribution assets; these include projects in France, the United Kingdom (UK), and elsewhere gas distribution assets; these include projects in France, the United Kingdom (UK), and elsewhere
and serve one hundred or more and serve one hundred or more ~~dwel ings~~dwellings per project. per project.51
~~Barriers to Early Deployment~~
~~DOE’s informal survey of stakeholders identified a number of perceived barriers to hydrogen~~
~~market adoption, including the cost to the end-user of hydrogen technologies; need for sufficient~~
~~hydrogen infrastructure; and public awareness and understanding.52 Addressing this perceived~~
~~need for sufficient infrastructure, and the cost involved, the California Air Resources Board~~
~~modeled a year-by-year build-out of hydrogen refueling stations and estimated that 1,000~~
~~refueling stations would be needed for an assumed 1 mil ion FCEVs,53 at an estimated cost of~~
~~$1.9 mil ion (in 2016 dollars) per station based on early experience.54~~
~~In the RFI DOE published for comment on the hydrogen hubs, they noted that “one key pathway~~
~~to achieving large-scale, commercial y viable deployment of clean hydrogen is through matching~~
~~the scale up of clean hydrogen supplies with a concomitant and growing regional demand.” DOE~~
~~has taken steps to ensure that suppliers and users of hydrogen can connect with one another by~~

4757 48 Title XVII of the Energy Policy Act of 2005, P.L. 109-58, authorizes DOE to issue loan guarantees. 49 An electrolyzer is an electrochemical device, powered by electricity, that decomposes water into hydrogen and oxygen. 50 Email communication from Mitsubishi Power, January 27, 2023. 51 Mitsubishi Power Americas, “Mitsubishi Power delivers Hydrogen-Ready Gas Turbines to “IPP Renewed” Project in Utah to meet Decarbonization Goals in the Western US,” press release, July 28, 2023, https://power.mhi.com/regions/amer/news/20230727. 52 However, there is not one agreed-upon data set of all such projects; see, for example, European Commission, Clean However, there is not one agreed-upon data set of all such projects; see, for example, European Commission, Clean
Hydrogen Partnership, Hydrogen Partnership, ~~Dem o~~Demo Projects Hub, at https://www.clean-hydrogen.europa.eu/get-involved/regions-hub/demo-, at https://www.clean-hydrogen.europa.eu/get-involved/regions-hub/demo-
projects-hub_en. projects-hub_en.
4853 “Kenworth: Port of Los Angeles Rolls Out Hydrogen Fuel “Kenworth: Port of Los Angeles Rolls Out Hydrogen Fuel Cell Electric Freight Demonstration,” Cell Electric Freight Demonstration,” Automotive World, ,
June 7, 2021, at https://www.automotiveworld.com/news-releases/electric-mobility-news-releases/kenworth-portJune 7, 2021, at https://www.automotiveworld.com/news-releases/electric-mobility-news-releases/kenworth-port -of--of-
los-angeles-rolls-out-hydrogen-fuel-cell-electric-freightlos-angeles-rolls-out-hydrogen-fuel-cell-electric-freight -demonstration/. -demonstration/.
4954 “Port of Los Angeles, Partners Launch Zero-Emission Project,” “Port of Los Angeles, Partners Launch Zero-Emission Project,” Transport Topics, June 11, 2021. , June 11, 2021.
~~50 International Energy Agency~~55 Air Liquide, “Air Liquide Fuels First Hydrogen Fuel Cell Truck Demonstration at Port of Houston,” press release, January 12, 2023, https://usa.airliquide.com/hyzon-port-of-houston. 56 IEA, , Global Hydrogen Review 2021, Paris, October 2021, pp. 90, 97. , Paris, October 2021, pp. 90, 97.
5157 For information on specific projects, see ENGIE, For information on specific projects, see ENGIE, GRHYD: Rouvelons nos energies: Présentation, at https://grhyd.fr/, at https://grhyd.fr/
presentation/presentation/;. HyDeploy, “. HyDeploy, “ Pioneering the Safe Use of BlendedPioneering the Safe Use of Blended Hydrogen in GasHydrogen in Gas Networks to ReduceNetworks to Reduce Carbon Carbon
Emissions,” press release, 2022, at https://hydeploy.co.uk/; Jacob Dijkstra, Emissions,” press release, 2022, at https://hydeploy.co.uk/; Jacob Dijkstra, Ameland: Frontrunner in the Energy
Transition, Duurzaam Ameland, Brussels,, Duurzaam Ameland, Brussels, October 11, 2017, at http://www.pace-energy.eu/wp-content/uploads/2017/October 11, 2017, at http://www.pace-energy.eu/wp-content/uploads/2017/
10/Jacob-10/Jacob-~~Dijkstra_T he~~Dijkstra_The-exemplary-role-of-local-communities-in-the-energy-transition_The-Ameland-island-story.pdf. -exemplary-role-of-local-communities-in-the-energy-transition_The-Ameland-island-story.pdf.
~~52 Sunita Satyapal, Director, DOE Hydrogen and Fuel Cell T echnologies Office, 2022 AMR Plenary Session, June 6,~~
~~2022, p. 33, at https://www.energy.gov/sites/default/files/2022-06/hfto-amr-plenary-satyapal-2022-1.pdf.~~
~~53 California Fuel Cell Partnership,~~ ~~The California Fuel Cell Revolution: A Vision for Advancing Economic, Social, and~~
~~Environm ental Priorities, July 2018, p. 14, at https://cafcp.org/sites/default/files/CAFCR.pdf.~~
~~54 T he estimate is based on vendor quotes for the first 111 stations planned or built. M. Koleva and M. Melaina,~~ ~~DOE~~
~~Hydrogen Program Record: Hydrogen Fueling Stations Cost, U.S. Department of Energy, Record 21002, November 2,~~
~~2020, at https://www.hydrogen.energy.gov/pdfs/21002-hydrogen-fueling-station-cost.pdf.~~
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~~Hydrogen Hubs and Demonstrating the Hydrogen Energy Value Chain~~

~~creating an online information resource cal ed Hydrogen Matchmaker.55 DOE does not identify~~
~~specific chal enges, but notes that “[t]o be considered for Phase 2 funding, H2Hub projects must~~
~~successfully complete al Phase 1 planning activities and analysis.” These activities and analyses~~
~~include the availability of hydrogen infrastructure, workforce training, and minimization of~~
~~environmental impacts.56~~
~~International Experience~~
~~Demonstration and early deployment of the hydrogen value chain outside the United States~~
~~includes planned and nascent activities similar to Regional Clean Hydrogen Hubs. A European~~
~~Commission (EC)-sponsored project conducts global surveil ance of selected hydrogen activities~~
~~in deployment phase that are large in scale, have a clear geographic center, cover multiple steps in~~
~~the value chain, and provide supply to multiple end uses—cal ing these “hydrogen val eys.”57 The~~
~~hydrogen val eys are a similar idea to the IIJA’s Regional Clean Hydrogen Hubs. The EC project~~
~~surveys 33 hydrogen val eys worldwide, including two~~ Congressional Research Service 9 Hydrogen Hubs and Demonstrating the Hydrogen Energy Value Chain Barriers to Early Deployment Refueling Infrastructure DOE’s informal survey of stakeholders identified a number of perceived barriers to hydrogen market adoption, including the cost to the end-user of hydrogen technologies; need for sufficient hydrogen infrastructure; and public awareness and understanding.58 Addressing this perceived need for sufficient infrastructure, and the cost involved, CARB modeled a year-by-year build-out of hydrogen refueling stations and estimated that 1,000 refueling stations would be needed for an assumed 1 million FCEV cars,59 at an estimated cost of $1.9 million (in 2016 dollars) per station.60 Recent federal programs address refueling as part of wider measures for alternative fuels. The IIJA, Section 11401, authorized grants for charging and fueling infrastructure along designated alternative fuel corridors. Such corridors may be designed so that vehicles travelling along them encounter one refueling station within a few miles of the highway at specified distances (e.g., 50 miles). Grantees may use the funds for a variety of alternative fuel infrastructure, including battery recharging or hydrogen fueling. The IIJA, Section 11101(b)(1)(C)), provides a total of approximately $2.5 billion for FY2022 to FY2026 from the Highway Trust Fund61 for this program.62 The program is being implemented by the Federal Highway Administration (FHWA) and is composed of a (1) Community Charging and Fueling Grants (Community Program); and (2) Alternative Fuel Corridor Grants (Corridor Program).63 The Corridor Program has three Focus Area Categories, one of which is zero-emission corridors for medium- and heavy-duty vehicles,64 including along the National Highway Freight Network (23 U.S.C. §151(f)(5)(A)(vi)).65 The first tranche of funding was $700 million, from FY2022 and FY2023, and is to focus on projects in urban and rural communities in publicly accessible locations.66 Section 13404 of P.L. 117-169, known as the Inflation Reduction Act of 2022, amends Section 30C of the Internal Revenue Code (IRC) to provide an Alternative Fuel Refueling Property Credit. IRC 30C provides a tax credit up to 30% of the cost of alternative fuel refueling property up to $100,000. 58 Sunita Satyapal, Director, DOE Hydrogen and Fuel Cell Technologies Office, 2022 AMR Plenary Session, June 6, 2022, p. 33, at https://www.energy.gov/sites/default/files/2022-06/hfto-amr-plenary-satyapal-2022-1.pdf. 59 California Fuel Cell Partnership, The California Fuel Cell Revolution: A Vision for Advancing Economic, Social, and Environmental Priorities, July 2018, p. 14, at https://cafcp.org/sites/default/files/CAFCR.pdf. 60 The estimate is based on vendor quotes for the first 111 stations planned or built. M. Koleva and M. Melaina, DOE Hydrogen Program Record: Hydrogen Fueling Stations Cost, U.S. Department of Energy, Record 21002, November 2, 2020, at https://www.hydrogen.energy.gov/library/program-records. 61 For a description of the Highway Trust Fund, see CRS Report R47022, Federal Highway Programs: In Brief, by Robert S. Kirk. 62 CRS Report R47034, Energy and Minerals Provisions in the Infrastructure Investment and Jobs Act (P.L. 117-58), coordinated by Brent D. Yacobucci. See “Division A—Surface Transportation,” prepared by Melissa N. Diaz. 63 Federal Highway Administration (FHWA), Charging and Fueling Infrastructure Discretionary Grant Program, May 15, 2023, https://www.fhwa.dot.gov/environment/cfi/. 64 Medium- and Heavy-Duty Vehicles (MHDVs) are on-road vehicles with gross vehicle weights over 10,000 pounds made with a variety of body and trailer or chassis combinations and generally having GVWs no greater than 80,000 pounds. 65 FHWA, Charging and Fueling Infrastructure Discretionary Grant Program: Webinar, March 22, 2023, https://www.fhwa.dot.gov/environment/cfi/cfi_webinar_2023-2-21.pdf. 66 FHWA, Charging and Fueling Infrastructure Discretionary Grant Program, May 15, 2023, https://www.fhwa.dot.gov/environment/cfi/. Congressional Research Service 10 Hydrogen Hubs and Demonstrating the Hydrogen Energy Value Chain Matching Supply and Demand In the RFI issued for comment on the Regional Clean Hydrogen Hubs, DOE noted that “one key pathway to achieving large-scale, commercially viable deployment of clean hydrogen is through matching the scale up of clean hydrogen supplies with a concomitant and growing regional demand.”67 DOE has taken steps to ensure that suppliers and users of hydrogen can connect with one another by creating an online information resource called Hydrogen Matchmaker.68 The tool is still online, but DOE is no longer accepting submissions of information. The $1 billion DOE announced on July 5, 2023, for its Demand-side Support Initiative is aimed at ensuring market certainty for both producers and end users.69 International Experience Demonstration and early deployment of the hydrogen value chain outside the United States includes planned and nascent activities similar to Regional Clean Hydrogen Hubs. A European Commission (EC)-sponsored project conducts global surveillance of selected hydrogen activities in deployment phase that are large in scale, have a clear geographic center, cover multiple steps in the value chain, and provide supply to multiple end uses—calling these “hydrogen valleys.”70 The hydrogen valleys are a similar idea to the IIJA’s Regional Clean Hydrogen Hubs. The EC project currently surveys 84 hydrogen valleys worldwide, including four in the United States, in various stages of in the United States, in various stages of
planning and planning and ~~initiation.58~~execution.71
The EC-sponsored project identified permitting as the number one policy barrier during a survey The EC-sponsored project identified permitting as the number one policy barrier during a survey
of participants.of participants.5972 Respondents to the survey noted that local permitting authorities were not Respondents to the survey noted that local permitting authorities were not
familiar with hydrogen. familiar with hydrogen. ~~The survey included 28 locations, though the majority were outside the~~
~~United States. These site were either planning (90%) or have implemented (10%) large scale, full~~
~~hydrogen value-chain systems with multiple end-uses in a defined geography~~Five projects are listed as operational, and seven under constructions. .
Another study reported on emerging “hydrogen clusters,” not unlike hydrogen hubs, in the Another study reported on emerging “hydrogen clusters,” not unlike hydrogen hubs, in the
Netherlands, Chile, Spain, and the United Kingdom.Netherlands, Chile, Spain, and the United Kingdom.73 In the Netherlands, for example, the study In the Netherlands, for example, the study
identified three ports with plans for green and blue identified three ports with plans for green and blue ~~hydrogen60~~hydrogen74 aided by proximity to demand aided by proximity to demand
from existing refineries and ammonia and steel plants. These locations from existing refineries and ammonia and steel plants. These locations ~~al ow~~allow for integration; for for integration; for
example, the oxygen example, the oxygen ~~by-product~~byproduct from electrolysis of water is being repurposed for use in basic from electrolysis of water is being repurposed for use in basic
~~oxygen furnaces for steelmaking.61 The study identified further opportunities for clusters to~~
~~include activities at transport hubs and ports.~~

~~55 U.S.~~ 67 87 Federal Register 8828, February 16, 2022. 68 U.S. Department of Energy, Hydrogen and FuelDepartment of Energy, Hydrogen and Fuel ~~Cell T echnologies~~ Cell Technologies Office, Office, H2 Matchmaker, at , at
https://www.energy.gov/eere/fuelcells/h2-matchmaker. https://www.energy.gov/eere/fuelcells/h2-matchmaker.
~~56 DOE Hydrogen Program, Request for Information # DE-FOA-0002664.0002: Regional Clean Hydrogen Hubs~~
~~Implementation Strategy, pp. 8-9, at https://eere-exchange.energy.gov/Default.aspx?foaId=5d96172f-e9b6-48ff-94ac-~~
~~5579c3531526.~~
~~57 Fuel Cells~~ 69 U.S. Department of Energy, Biden-Harris Administration to Jumpstart Clean Hydrogen Economy with New Initiative to Provide Market Certainty And Unlock Private Investment, July 3, 2023, https://www.energy.gov/articles/biden-harris-administration-jumpstart-clean-hydrogen-economy-new-initiative-provide-market. 70 Fuel Cells and Hydrogen 2 Joint Undertaking (FCH 2 JU), and Hydrogen 2 Joint Undertaking (FCH 2 JU), Hydrogen Valleys as a Stepping Stone Towards the New
Hydrogen ~~Econom y~~Economy, Luxembourg, 2021, p. 13, at https://h2v.eu/analysis/reports. , Luxembourg, 2021, p. 13, at https://h2v.eu/analysis/reports.
~~58 Fuel Cells~~ 71 Fuel Cells and Hydrogen Joint Undertaking (FCHand Hydrogen Joint Undertaking (FCH 2 JU), 2 JU), Hydrogen Valleys, at https://h2v.eu/hydrogen-valleys. , at https://h2v.eu/hydrogen-valleys.
5972 Uwe Uwe Weichenhain et al., Weichenhain et al., Hydrogen Valleys: Insights into the Emerging Hydrogen ~~Econo mies~~Economies Around the World, ,
FuelFuel ~~Cells~~ Cells and Hydrogen 2 Joint Undertaking (FCH 2 JU), Luxembourg, 2021.and Hydrogen 2 Joint Undertaking (FCH 2 JU), Luxembourg, 2021.
60 73 Energy Transitions Commission, Making the Hydrogen Economy Possible: Accelerating Clean Hydrogen in an Electrified Economy, Version 1.2, April 2021, p. 67. 74 Hydrogen produced via electrolyzers is generally referred to as “green hydrogen” if the source of electricity is Hydrogen produced via electrolyzers is generally referred to as “green hydrogen” if the source of electricity is
renewable.renewable. “Blue hydrogen” results when“Blue hydrogen” results when the carbon released from steam reforming of natural gasthe carbon released from steam reforming of natural gas is captured and is captured and
stored (i.e., carbon capture, utilization and storage (CCUS)),stored (i.e., carbon capture, utilization and storage (CCUS)), either for reuse in another industrial process or either for reuse in another industrial process or
sequesteredsequestered ~~underground~~ underground in mines or caverns. Bluein mines or caverns. Blue hydrogen ishydrogen is ~~sometimes ref erred to as “~~ sometimes referred to as “carbon neutral” as the carbon neutral” as the
emissions are not dispersed in the atmosphere. See CRSemissions are not dispersed in the atmosphere. See CRS Report R46436, Report R46436, Hydrogen in Electricity’s Future, by Richard , by Richard
J. Campbell. J. Campbell.
~~61 Energy T ransitions Commission,~~ ~~Making the Hydrogen Economy Possible: Accelerating Clean Hydrogen in an~~
~~Electrified Econom y, Version 1.2, April 2021, p. 67.~~
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16 Hydrogen Hubs and Demonstrating the Hydrogen Energy Value Chain

oxygen furnaces for steelmaking.75 The study identified further opportunities for clusters to include activities at transport hubs and ports. Size, Scope, and Scale of Future Hydrogen Hubs
Studies have speculated on the size, scope, and scale of future hydrogen hubs. One study noted Studies have speculated on the size, scope, and scale of future hydrogen hubs. One study noted
the advantages and economies of co-location of various industries, as this might the advantages and economies of co-location of various industries, as this might ~~al ow~~allow integration integration
between energy requirements and chemical byproducts, and suggested this might be a driver for between energy requirements and chemical byproducts, and suggested this might be a driver for
the formation of hydrogen hubs.the formation of hydrogen hubs.6276 The study considered four characteristic scenarios for hydrogen The study considered four characteristic scenarios for hydrogen
hubs, constructed around the following demand centers: a city; a port; fertilizer manufacture and hubs, constructed around the following demand centers: a city; a port; fertilizer manufacture and
petroleum refining; and steelmaking. petroleum refining; and steelmaking.
Another study surveyed existing and emerging hydrogen hubs in an international context and Another study surveyed existing and emerging hydrogen hubs in an international context and
determined these and future hubs might evolve from existing facilities or plans for existing determined these and future hubs might evolve from existing facilities or plans for existing
facilities. These hubs are facilities. These hubs are ~~il ustrated~~illustrated i in Figure 3. The scale of production increases, left-to-right, The scale of production increases, left-to-right,
in the figure; the geographic orientation ranges from local to regional to international, left-to-in the figure; the geographic orientation ranges from local to regional to international, left-to-
right. The left-most hub concept, mobility, is envisaged as a public-private partnership, while the right. The left-most hub concept, mobility, is envisaged as a public-private partnership, while the
other two hub concepts are envisaged as wholly private sector. The studies do not exhaust other two hub concepts are envisaged as wholly private sector. The studies do not exhaust al
all possibilities. possibilities.
Other concepts for hydrogen hubs might combine different applications, scales of production, and Other concepts for hydrogen hubs might combine different applications, scales of production, and
off-takers. For example, DOE’s Hydrogen Shot program—which supports making hydrogen off-takers. For example, DOE’s Hydrogen Shot program—which supports making hydrogen
~~commercial y~~commercially available available at a cost of $1 for 1 kilogram in 1 decade—noted emerging “clusters” in at a cost of $1 for 1 kilogram in 1 decade—noted emerging “clusters” in
the United States based on other industries and geographies.the United States based on other industries and geographies.6377 DOE differentiated the clusters DOE differentiated the clusters
according to resources; influences such as population, policy, or pollution; and end-uses. according to resources; influences such as population, policy, or pollution; and end-uses.
~~Figure 3. Possible Layouts of Hydrogen Hubs~~

Source: Adapted from Uwe Weichenhain et al., ~~Hydrogen Val eys: Insights into the Emerging Hydrogen Economies~~
~~Around the World, Fuel Cel s and Hydrogen 2 Joint Undertaking (FCH 2 JU), Luxembourg, 2021.~~

~~62 Energy T ransitions~~The Regional Clean Hydrogen Hubs, should DOE make the details available, may provide an additional window on the size, scope, and scale of future hydrogen hubs. 75 Energy Transitions Commission, Making the Hydrogen Economy Possible: Accelerating Clean Hydrogen in an Electrified Economy, Version 1.2, April 2021, p. 67. 76 Energy Transitions Commission, Commission, Making the Hydrogen Economy Possible: Accelerating Clean Hydrogen in an
Electrified ~~Econom y~~Economy, Version 1.2, April 2021, p. 67. , Version 1.2, April 2021, p. 67.
63 77 U.S. U.S. Department of Energy, Hydrogen and FuelDepartment of Energy, Hydrogen and Fuel ~~Cell T echnologies~~ Cell Technologies Office, Office, DOE Update on Hydrogen Shot, RFI
Results, and ~~Sum m ary~~Summary of Hydrogen Provisions in the Bipartisan Infrastructure Law, December 9, 2021, at , December 9, 2021, at
https://www.energy.gov/eere/fuelcells/articles/doe-update-hydrogen-shot-rfi-results-and-summary-hydrogen-https://www.energy.gov/eere/fuelcells/articles/doe-update-hydrogen-shot-rfi-results-and-summary-hydrogen-
provisions. provisions. ~~T he~~The DOE launched Hydrogen Shot in June 2021. DOE launched Hydrogen Shot in June 2021.
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Figure 3. Possible Layouts of Hydrogen Hubs Source: Adapted from Uwe Weichenhain et al., Hydrogen Valleys: Insights into the Emerging Hydrogen Economies Around the World, Fuel Cells and Hydrogen 2 Joint Undertaking (FCH 2 JU), Luxembourg, 2021. Notes: Delivery ~~Notes:~~ ~~Delivery~~ is by truck with hydrogen liquid or pressurized gas, by pipeline,is by truck with hydrogen liquid or pressurized gas, by pipeline, or by ocean-going tanker. or by ocean-going tanker.
Issues for Congress
Investment and Sufficient Off-Takers to Consume Hydrogen
Consumption of hydrogen today is focused in a relatively concentrated set of end-users. Almost Consumption of hydrogen today is focused in a relatively concentrated set of end-users. Almost
al all is consumed by the oil industry or chemical industry either after onsite production or via is consumed by the oil industry or chemical industry either after onsite production or via
delivery through dedicated pipelines from large merchant producers.delivery through dedicated pipelines from large merchant producers.6478 The hydrogen hubs and the The hydrogen hubs and the
additional supply of hydrogen they aim to create additional supply of hydrogen they aim to create ~~wil~~ will need to be matched to new sources of need to be matched to new sources of
demand in order to be demand in order to be ~~economical y feasible. DOE specifical y addresses this problem in its~~
~~February 2022 RFI and developed Hydrogen Matchmaker to connect hydrogen supplies with~~
~~users.65~~ economically feasible. DOE addressed this in the Hydrogen Matchmaker database and more recently in announcing its Demand-side Support Initiative on July 5, 2023, aimed at ensuring market certainty for both producers and end users.79 Global experience with hydrogen hubs underscores the urgency for finding off-takers, Global experience with hydrogen hubs underscores the urgency for finding off-takers,
~~with~~which one one EUEC-funded project -funded project ~~identifying it~~identifies as one of the largest financial barriers to realizing such as one of the largest financial barriers to realizing such
projects.projects.~~66 At a February 2022~~80 At an October 2023 hearing of the Senate Energy and Natural Resources (ENR) Committee, Senator Cassidy (LA) described the hydrogen demand of 3,000 metric tons per day envisaged in the unsuccessful application by the HALO Hydrogen Hub (comprised of partners in Alabama, 78 U.S. ~~hearing of the Senate Energy and Natural Resources Committee,~~
~~Chairman Manchin noted that, if new hydrogen demand were to arise from converting today’s~~
~~end-use applications to hydrogen, it would require large investment from both public and private~~
~~sectors.67 Congress may wish to monitor the deployment of hydrogen hubs to see if the demand~~
~~for the newly created hydrogen supply is sufficient and stable.~~
~~Appropriate Regulation of Hydrogen Pipelines~~
~~DOE’s 2020 Hydrogen Program Plan identified rights-of-way and permitting for hydrogen~~
~~pipelines as two of the chal enges to overcome for hydrogen delivery infrastructure.68 Key policy~~
~~issues that Congress may examine include the regulation of pipeline siting, including potential~~
~~federal-state jurisdictional conflicts, and the regulation of pipeline rates and terms of service.69~~
~~For example, some hydrogen proponents have suggested that Congress establish federal siting~~
~~authority for interstate hydrogen pipelines analogous to the Federal Energy Regulatory~~
~~Commission natural gas siting authority under the Natural Gas Act.70 Preempting state authority~~

~~64 U.S.~~ Department of Energy, Office of Fossil Energy, Department of Energy, Office of Fossil Energy, Hydrogen Strategy: Enabling a Low-Carbon Economy, ,
Washington, DC, JulyWashington, DC, July 2020, p. 9, at https://www.energy.gov/sites/prod/files/2020/07/f76/2020, p. 9, at https://www.energy.gov/sites/prod/files/2020/07/f76/
USDOE_FE_Hydrogen_Strategy_July2020.pdf. USDOE_FE_Hydrogen_Strategy_July2020.pdf.
6579 U.S. U.S. Department of Energy, Biden-Harris Administration to Jumpstart Clean Hydrogen Economy with New Initiative to Provide Market Certainty and Unlock Private Investment, July 3, 2023, https://www.energy.gov/articles/biden-harris-administration-jumpstart-clean-hydrogen-economy-new-initiative-provide-market; CRS In Focus IF12514, DOE Appropriations for Hydrogen and Fuel Cell Activities: FY2024, by Martin C. Offutt. 80 Uwe ~~Department of Energy, Hydrogen and Fuel Cell T echnologies Office, H2 Matchmaker, at~~
~~https://www.energy.gov/eere/fuelcells/h2-matchmaker.~~
~~66 Uwe~~ Weichenhain et al., Weichenhain et al., Hydrogen Valleys: Insights into the Emerging Hydrogen Economies Around the World , ,
FuelFuel ~~Cells~~ Cells and Hydrogen 2 Joint Undertaking, Luxembourg, 2021, p. 39. Congressional Research Service 13 Hydrogen Hubs and Demonstrating the Hydrogen Energy Value Chain Louisiana, and Oklahoma).81 Congress may monitor the deployment of hydrogen hubs to see if the demand for the newly created hydrogen supply is sufficient and stable and is attracting the needed investment. Appropriate Regulation of Hydrogen Pipelines DOE’s 2020 Hydrogen Program Plan identified rights-of-way and permitting for hydrogen pipelines as two of the challenges to overcome for hydrogen delivery infrastructure.82 Key policy issues that Congress may examine include the regulation of pipeline siting, including potential federal-state jurisdictional conflicts, and the regulation of pipeline rates and terms of service.83 For example, some hydrogen proponents have suggested that Congress establish federal siting authority for interstate hydrogen pipelines analogous to the Federal Energy Regulatory Commission natural gas siting authority under the Natural Gas Act (15 U.S.C. §§717 et seq.).84 Preempting state authority ~~and Hydrogen 2 Joint Undertaking, Luxembourg, 2021, p. 39.~~
~~67 Chairman Manchin’s Opening Statement, during U.S. Congress, Senate Energy and Natural Resources,~~ ~~Clean~~
~~Hydrogen, hearing, 117th Cong., 2nd sess., February 10, 2022.~~
~~68 U.S. Department of Energy, Hydrogen Program Plan, DOE/EE-2128, Washington, DC, November 2020, p. 6.~~
~~69 Regulation of hydrogen pipeline siting, commercial service, security, and safety is divided among federal agencies~~
~~and the states. Federal jurisdiction resides variously with the Surface T ransportation Board (ST B), the Federal Energy~~
~~Regulatory Commission (FERC), the T ransportation Security Administration (TSA), and the Pipeline and Hazardous~~
~~Materials Safety Administration (PHMSA). For more information see CRS Report R46700,~~ ~~Pipeline Transportation of~~
~~Hydrogen: Regulation, Research, and Policy, by Paul W. Parfomak.~~
~~70 James Bowe and William Rice, “Building the Hydrogen Sector Will Require New Laws, Regs,” Law360, January 13,~~
~~2021.~~
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in this way could simplify the siting process; however, it would not necessarily ensure such in this way could simplify the siting process; however, it would not necessarily ensure such
pipelines would be constructed and might raise concerns from affected states.pipelines would be constructed and might raise concerns from affected states.7185
Sufficient Transmission, Distribution, and Delivery Infrastructure
Hydrogen in its current uses has a dedicated infrastructure, but one that is Hydrogen in its current uses has a dedicated infrastructure, but one that is ~~smal~~ small compared to compared to
natural gas. Hydrogen pipelines comprise 1,600 miles in the United States compared with natural gas. Hydrogen pipelines comprise 1,600 miles in the United States compared with
300,000 miles of natural gas transmission pipelines.300,000 miles of natural gas transmission pipelines.7286 The layout of these pipelines The layout of these pipelines provides provides
service to a relatively concentrated set of end-users, with most hydrogen pipelines owned by service to a relatively concentrated set of end-users, with most hydrogen pipelines owned by
merchant hydrogen producers who merchant hydrogen producers who ~~sel~~ sell their hydrogen to industry in bulk.their hydrogen to industry in bulk.7387 To service a fleet of To service a fleet of
numerous and relatively numerous and relatively ~~smal~~ small hydrogen refueling stations for FCEVs, for example, hydrogen refueling stations for FCEVs, for example, ~~wil~~ will require a require a
different hydrogen delivery infrastructure. This might include additional pipelines and delivery different hydrogen delivery infrastructure. This might include additional pipelines and delivery
trucks loaded with liquid or compressed hydrogen gas, or onsite hydrogen production from trucks loaded with liquid or compressed hydrogen gas, or onsite hydrogen production from
electricity or natural gas. During the legislativeelectricity or natural gas. During the legislative activity on the IIJA, the House Committee on activity on the IIJA, the House Committee on
Transportation and Infrastructure noted, “The committee believes that robust private sector Transportation and Infrastructure noted, “The committee believes that robust private sector
involvement is necessary to maximize investment in and widespread availabilityinvolvement is necessary to maximize investment in and widespread availability ~~of electric~~
~~vehicle charging and hydrogen fueling infrastructure.” 74 Congress may wish to monitor the build-~~
~~out of fueling stations and the network of pipelines and trucks and consider whether federal~~
~~financial incentives would correct any shortfal s or whether such costs should be borne by the~~
~~private sector.~~

~~Author Information~~

~~Martin C. Offutt~~

~~Analyst in Energy Policy~~

~~Acknowledgments~~
~~Mari Lee and Calvin DeSouza developed the graphics for the figures. Lena Maman conducted the research~~
~~on the state and private-sector interest in Regional Clean Hydrogen Hubs.~~

~~71 For more information see CRS Report R46700,~~ ~~Pipeline Transportation of Hydrogen: Regulation, Research, and~~
~~Policy, by Paul W. Parfomak.~~
~~72 U.S. Department of T ransportation: Pipeline and Hazardous Materials Safety Administration,~~ ~~Annual Report Mileage~~
~~for Natural Gas Transm ission & Gathering System s, May 2, 2022. Over 90%, by mile of pipeline, are in T exas and~~
~~Louisiana with 10 other states having fewer than 35 miles each. U.S. Department of Energy, Hydrogen and Fuel Cell~~
~~T echnologies Office, Hydrogen Pipelines, at https://www.energy.gov/eere/fuelcells/hydrogen-pipelines. Hydrogen~~
~~T ools, Hydrogen Pipelines, at https://h2tools.org/hyarc/hydrogen-data/hydrogen-pipelines.~~
~~73 International Energy Agency~~ of electric 81 Colloquy between Senator Cassidy and Under Secretary for Infrastructure Crane, in U.S. Congress, Senate Committee on Energy and Natural Resources, Full Committee Hearing to Examine the Department of Energy’s Decision-Making Process for Awarding Competitive Loans and Grants Funded Through the Inflation Reduction Act and the Bipartisan Infrastructure Law, 118th Cong., 1st sess., October 19, 2023. 82 U.S. Department of Energy, Hydrogen Program Plan, DOE/EE-2128, Washington, DC, November 2020, p. 6. 83 Regulation of hydrogen pipeline siting, commercial service, security, and safety is divided among federal agencies and the states. Federal jurisdiction resides variously with the Surface Transportation Board (STB), the Federal Energy Regulatory Commission (FERC), the Transportation Security Administration (TSA), and the Pipeline and Hazardous Materials Safety Administration (PHMSA). For more information see CRS Report R46700, Pipeline Transportation of Hydrogen: Regulation, Research, and Policy, by Paul W. Parfomak. 84 James Bowe and William Rice, “Building the Hydrogen Sector Will Require New Laws, Regs,” Law360, January 13, 2021. 85 For more information see CRS Report R46700, Pipeline Transportation of Hydrogen: Regulation, Research, and Policy, by Paul W. Parfomak. 86 U.S. Department of Transportation: Pipeline and Hazardous Materials Safety Administration, Annual Report Mileage for Natural Gas Transmission & Gathering Systems, May 2, 2022. Over 90%, by mile of pipeline, are in Texas and Louisiana with 10 other states having fewer than 35 miles each. U.S. Department of Energy, Hydrogen and Fuel Cell Technologies Office, Hydrogen Pipelines, at https://www.energy.gov/eere/fuelcells/hydrogen-pipelines; Hydrogen Tools, Hydrogen Pipelines, at https://h2tools.org/hyarc/hydrogen-data/hydrogen-pipelines. 87 IEA, , Global Hydrogen Review, Paris, 2021, at https://www.iea.org/reports/global-hydrogen-, Paris, 2021, at https://www.iea.org/reports/global-hydrogen-
~~review-2021, p. 44.~~
~~74 U.S. Congress, House Committee on T ransportation and Infrastructure,~~ ~~Investing in a New Vision~~ review-2021, p. 44. Congressional Research Service 14 Hydrogen Hubs and Demonstrating the Hydrogen Energy Value Chain vehicle charging and hydrogen fueling infrastructure.” 88 In the example of California, the CEC estimated it had built almost four times as much dispensing capacity as it needs for the FCEVs in the state.89 Congress may monitor the build-out of refueling infrastructure and consider whether federal financial incentives would correct any shortfalls or, conversely, if the number of FCEVs is sufficient to justify the policies on refueling infrastructure. Author Information Martin C. Offutt Analyst in Energy Policy Acknowledgments Mari Lee and Calvin DeSouza developed the graphics for the figures. ~~for the~~
~~Transportation in Am erica Act, Report of the Committee on T ransportation and Infrastructure to Accompany H.R.~~
~~3684, 117th Cong., 1st sess., June 22, 2021, H.Rept. 117-70 (Washington: GPO, 2021), p. 537.~~
~~Congressional Research Service~~

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~~Hydrogen Hubs and Demonstrating the Hydrogen Energy Value Chain~~

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88 U.S. Congress, House Committee on Transportation and Infrastructure, Investing in a New Vision for the Transportation in America Act, Report of the Committee on Transportation and Infrastructure to Accompany H.R. 3684, 117th Cong., 1st sess., June 22, 2021, H.Rept. 117-70 (Washington: GPO, 2021), p. 537. 89 J. Berner, M. Crowell, and A. Martinez, Joint Agency Staff Report on Assembly Bill 8: 2022 Annual Assessment of Time and Cost Needed to Attain 100 Hydrogen Refueling Stations in California, California Energy Commission, CEC-600-2022-064, December 22, 2022, p. 39, https://www.energy.ca.gov/publications/2022/joint-agency-staff-report-assembly-bill-8-2022-annual-assessment-time-and-cost. Congressional Research Service R47289 · VERSION 6 · UPDATED 15 ~~Congressional Research Service~~
~~R47289 · VERSION 1 · NEW~~
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