California Construction News staff writer
The U.S. Department of Energy (DOE) and ARCHES have signed a major $12.6 billion agreement to build a clean, renewable Hydrogen Hub in California. This project includes up to $1.2 billion in federal funding announced last year when California was chosen as a national hydrogen hub. ARCHES is the first of seven Hydrogen Hubs in the country to sign an official agreement with the DOE.
The ARCHES Hydrogen Hub will set up clean hydrogen production sites to cut fossil fuel use in California. The goal is to reduce carbon emissions by 2 million metric tons per year, equivalent to the emissions from 445,000 gasoline-powered cars, by decarbonizing public transportation, heavy-duty trucking, and port operations.
“California is revolutionizing how a major world economy can clean up its biggest industries. We’re going to use clean, renewable hydrogen to power our ports and public transportation – getting people and goods where they need to go, just without the local air pollution. Thanks to the Biden-Harris Administration, California is excited to pioneer this world-leading initiative that’ll show other states and countries what’s possible when you prioritize clean energy and public health,” said Governor Gavin Newsom.
Recently, California has led in hydrogen-powered transportation innovations, including the world’s first hydrogen-powered ferry in San Francisco Bay and a successful 523-mile hydrogen-electric flight.
Project Highlights:
- Carbon Emission Reduction: The hub will cut 2 million metric tons of carbon emissions annually, equivalent to the pollution from 445,000 gasoline-powered cars.
- Job Creation: The project is expected to create 220,000 new jobs, including 130,000 construction jobs and 90,000 permanent jobs.
- Economic Benefits: The project will generate an estimated $2.95 billion per year in economic value from improved health and reduced health costs.
- Community Impact: At least 40% of the benefits will go to disadvantaged communities through investments, workforce training, and family-supporting jobs.
Decarbonization Targets:
- Ports: 3 large ports with over 200 pieces of cargo-handling equipment.
- Trucks: Over 5,000 fuel-cell-electric trucks.
- Buses: More than 1,000 fuel-cell-electric buses.
- Marine Vessel: 1 marine vessel.
- Infrastructure: Development of 60 heavy-duty fueling stations and 165 miles of open-access pipelines.
This agreement follows Gov. Newsom’s executive order from October 2021, which called for long-term budget proposals to support port operations and goods movement, State authorities said in a statement. “This order built on successful short-term measures to address supply chain congestion.”
