DOE Slashes $7.5BN in Clean Energy Funding, Axing Two Hydrogen Hubs
The U.S. Department of Energy (DOE) has significantly reduced funding for clean energy projects, including two hydrogen hubs in California and the Pacific Northwest. The cuts, totalling $7.5bn, affect 321 awards supporting 223 projects across 15 states, with only three states led by Republican governors.
The DOE initially planned to fund more projects but was forced to redistribute funds due to a reduced clean energy budget. Both hubs, primarily focused on producing green hydrogen and creating thousands of jobs, have had their funding scaled back. The Pacific Northwest Hydrogen Hub (PNWH2), a collaborative effort between Washington, Oregon, and Montana, expressed disappointment but supported the hub's potential.
Energy Secretary Chris Wright defended the cuts, stating they delivered on former President Donald Trump's commitment to 'protect taxpayer dollars' and expand U.S. fossil fuel production. The DOE took a 'business-like' approach to reviewing clean energy funding decisions in May 2023. Despite the cuts, five hubs remain across various states, including West Virginia, Ohio, Pennsylvania, Texas, Minnesota, North Dakota, South Dakota, Delaware, New Jersey, Illinois, Indiana, and Michigan.
The Fuel Cell and Hydrogen Energy Association (FCHEA) expressed disappointment, describing hydrogen as 'strongly aligned' with the Trump administration's goals. ARCHES, due to receive $1.2bn, criticized the decision as a 'short-sighted move' abandoning America's opportunity to lead the global energy transition.
The DOE has terminated funding for two clean hydrogen hubs, ARCHES and PNWH2, previously selected for a combined $2.2bn. The funding cut, part of a wider $7.5bn rollback, largely targets projects in Democrat-leaning states. The decision leaves five hubs still receiving funding across various states.