Biden Administration Allocates $7 Billion for Hydrogen Hubs

The Biden administration is set to disclose the recipients of approximately $7 billion in federal funding for regional projects aimed at establishing hydrogen hubs, according to undisclosed sources. The development of hydrogen is considered crucial for achieving climate objectives, and the funding for these hubs is derived from the bipartisan infrastructure law passed in 2021.

The Importance of Hydrogen in Net-Zero Emissions Plans

The anticipated announcement regarding the hubs is expected to be made on Friday, coinciding with President Joe Biden's visit to Philadelphia. The President's trip to Pennsylvania, a pivotal swing state, will focus on discussing his Bidenomics agenda and its impact on job creation, infrastructure investment, the acceleration of transitioning to clean energy sources, and addressing the climate crisis, as stated by the White House.

Using Funding as a Political Tool

The process of distributing the $7 billion in funding has provided the Biden administration with unique leverage, enabling them to support allies in key states that could significantly influence the President's re-election campaign, according to a Reuters report.

Project Contenders for the Grants

Several projects are in contention for the grants, as reported by Bloomberg. These include a Shell PLC-affiliated initiative involving Pennsylvania and other states, a separate project associated with Plug Power Inc. and Rochester, N.Y., an undertaking supported by Amazon.com Inc., Air Products & Chemicals Inc., and California, and a West Virginia hub connected to natural gas producer EQT Corp.