ARCH2 Hydrogen Hub Gets $30 Million for Planning Phase

Development of the Appalachian Regional Clean Hydrogen Hub (ARCH2) will proceed after its leaders recently signed a cooperative agreement with the Department of Energy to unlock $30 million in federal funding to begin Phase 1planning and development.

ARCH2 is one of seven hydrogen hub projects around the country selected in October 2023. It is set to receive a $925 million share of $7 billion in federal funding over the coming years to create a national clean hydrogen network.

Hydrogen is seen as a clean energy source that can help to reduce carbon dioxide (CO2) emissions from hard-to-decarbonize industrial sectors and long-distance transportation and help the U.S. meet its climate goals. The H2Hubs are expected to produce three million metric tons of hydrogen annually, reaching nearly a third of the 2030 U.S. production target, and reduce 25 million metric tons of carbon dioxide (CO2) emissions from end-uses each year.

When burned, hydrogen emits only water vapor, but it must be produced in one of several ways. The most common is through steam reformation of natural gas, or methane, but this method results in CO2 emissions. In order to be considered clean, “blue hydrogen” the process must be coupled with carbon capture and sequestration, where those emissions are captured and storage in underground geologic formations. Hydrogen can also be produced by splitting water atoms using large amounts of electricity. If renewable energy sources are used, this is called “green hydrogen.”

The hub concept involves developing regional clusters of clean hydrogen producers, consumers, and connective infrastructure. While ARCH2 in based in West Virginia it also includes partners in Pennsylvania and Ohio, and will focus on production and use of blue hydrogen.

The hub program is divided into four phases that will span more than a decade, and the recipients must meet specific milestones set in the agreement to move forward and unlock more federal funding. Phase 1, which is expected to last up to 36 months, will cost $96 million, including the $30 million in federal funding, with the remainder invested by the hub participants.

While potential siting and facility options throughout the region are still being determined, and will be further refined during Phase 1, there are 11 potential project sites a number of companies plan to develop as part of the network.

ARCH2 also plans to conduct community engagement as its development moves forward. Its website indicates that additional details on the project portfolio, community benefits commitments, and plans for community and labor engagement will be discussed during an Aug. 16 webinar. Registration is available on the ARCH2 website’s Events page.