The White Dwelling announced funding for seven regional hydrogen centres on Friday, a key step towards increasing hydrogen production for use in transportation.

According to a press release from the White House, the Bipartisan Infrastructure Legislation will provide $7 billion in funding for the 7 regional hubs in the Mid-Atlantic, Appalachian, California, Gulf Coast, Heartland, Midwest, and Pacific Northwest. According to the U.S. Division of Power, the regulation designates a total of $8 billion for the hydrogen hub project, with the final $1 billion set aside for coordinating conclusion benefits.

The regional centres are also expected to “catalyse far more than $40 billion in personal expense and build tens of thousands of fantastic-paying jobs,” according to the White House, increasing the total public and private investment in hydrogen hubs to close to $50 billion. There are mandatory undertaking labour agreements for 3 of the 7.

gasoline-powered Toyota Venture Portal 2 semi-trailer truck

Together, the centres aim to produce more than three million metric tonnes of hydrogen annually, or almost one-third of the output goal established by the Biden administration for the year 2030. According to the White Property, this will prevent 25 million metric tonnes of carbon dioxide emissions from finishing uses. This includes trucking, where hydrogen has been promoted as a replacement for battery-electric commercial trucks.

However, how the hydrogen is produced will determine the serious environmental impact of the hubs on the entire planet. The White House launch serves as a reminder that hydrogen may be produced using energy from the sun, wind, or nuclear power plants, as well as biomass or organic fuel with carbon capture. However, as of right now, 96% of hydrogen is created using fossil fuels or comparable plant- or bio-based fuels.

Experts warned that depending on the hydrogen manufacturing process, the hubs for hydrogen production could be as dirty as coal when they were first proposed in 2021. According to The White Dwelling, the production of “green” hydrogen through electrolysis accounts for “about two thirds” of the funding for the current work.

Cost is another major barrier to the widespread commercialization of hydrogen. The Vitality Division has set a goal of reducing the cost of “clean up hydrogen” by 80% to $1 per kilogramme per person in ten years. It describes completely pure hydrogen as “hydrogen developed with a carbon intensity equal to or considerably less than 2 kilogrammes of carbon dioxide-equal manufactured at the web-site of generation per kilogramme of hydrogen produced.”

Price reductions for hydrogen have been anticipated, but with reasonable optimism. According to a 2020 IHS Markit study, hydrogen produced from renewable energy sources might be cost-competitive by 2030. Additionally, the California Electricity Commission asserted in 2020 that by 2025, the price of hydrogen for gasoline-powered vehicles might be equal to that of gasoline.

Nevertheless, investments in electric semi-charging may seem cheap given the planned cost for the seven hydrogen hubs. According to reports, Tesla is requesting $100 million from the federal government for nine charging stations for semi-trucks. Daimler is establishing a $650 million hydrogen and charging community for large trucks in the United States.