News

California’ ARCHES Hydrogen Hubs Project Secures $12.6 Billion in Initial Funding

News from: CalChamber

This week, California’s Alliance for Renewable Clean Hydrogen Energy Systems (ARCHES) and the U.S. Department of Energy (DOE) signed a $12.6 billion agreement to build and expand clean energy infrastructure across California.

The agreement will fund the creation of regional networks that produce renewable hydrogen as an energy source for manufacturing, vehicles and generating electricity, while reducing California’s reliance on fossil fuels.

ARCHES was one of seven awardees of the DOE’s Regional Clean Hydrogen Hubs (H2Hubs)—a program funded through the federal Bipartisan Infrastructure Law to catalyze a national network of clean hydrogen producers, consumers and connective infrastructure.

ARCHES is the first of the seven H2Hubs to officially sign their agreement with the DOE.

Creation of Crucial New Technology

The $12.6 billion agreement includes $1.2 billion from the DOE and $11.4 billion in public and private matching funds.

At full build out, it is estimated that ARCHES DOE projects will create an estimated 220,000 new jobs, including 130,000 in construction and 90,000 permanent jobs. The projects also will cut up to 2 million metric tons of carbon emissions every year—the equivalent to the pollution of 445,000 gasoline-powered cars annually. This would result in $2.95 billion per year in decreased health care costs due to improved air quality, particularly along transportation corridors, according to ARCHES.

ARCHES projects will span statewide, covering the full hydrogen lifecycle from production to use, including, but not limited to:

  1. Renewable Hydrogen Production – More than 10 sites will produce enough clean renewable hydrogen to fuel the projects below and kickstart the buildout of the greater hydrogen ecosystem.
  2. Ports of Long Beach, Los Angeles & Oakland – These projects will replace diesel-powered cargo-handling equipment with hydrogen fuel cell equivalents and associated fueling infrastructure, reducing emissions and community health impacts while reimagining large-scale transportation operations.
  3. Heavy Duty Trucks and Transit Buses – ARCHES plans to build more than 60 hydrogen fueling stations to enable more than 5,000 Class 6–8 fuel cell electric trucks and more than 1,000 fuel cell electric buses—directly replacing diesel fuel with a zero emission option in city streets and freeways across California.
  4. Clean Power – Both the Los Angeles Department of Water and Power and Northern California Power Agency will transition key power plants to 100% renewable hydrogen. Distributed fuel cells will be used to support grid operations throughout the state and to provide resilience in key regions of the state, including on the Federally Recognized reservation of the Rincon Band of Luiseño Indians.
  5. Scripps Marine Vessel – A first-of-its-kind hydrogen-powered 140-foot, 50-person marine research vessel will use liquid hydrogen to replace tens of thousands of gallons of diesel fuel per year. The vessel will convert 75% of its emissions to be fossil-free, significantly reducing CO2 emissions and demonstrating a sustainable path forward for smaller water and harbor crafts.

ARCHES

ARCHES is a statewide public-private partnership designed to accelerate renewable hydrogen’s contribution to decarbonizing California’s economy. Founded by the California Governor’s Office of Business and Economic Development, the University of California system, the State Building and Construction Trades Council of California, and the Renewables 100 Policy Institute, ARCHES brings together state agencies, academia, industry leaders, and community organizations to advance renewable hydrogen technologies and infrastructure.