The U.S. Department of Energy (DOE) and the Alliance for Renewable sustainable Hydrogen Energy Systems (ARCHES) in California inked a $12.6 billion deal this week to develop and expand sustainable energy infrastructure throughout the state.

In an effort to lessen California’s dependency on fossil fuels, the deal would finance the development of regional networks that generate renewable hydrogen for use in automobiles, industry, and electricity generation.

One of the seven recipients of the DOE’s Regional Clean Hydrogen Hubs (H2Hubs) grant was ARCHES. The program, which was made possible by funding from the federal Bipartisan Infrastructure Law, aims to spark a nationwide network of clean hydrogen producers, consumers, and connective infrastructure.

Of the seven H2Hubs, ARCHES is the first to formally sign a contract with the DOE.

Development of Essential New Technology

$11.4 billion in public and private matching funds are included in the $12.6 billion agreement, which also includes $1.2 billion from the DOE.

When ARCHES DOE projects are fully implemented, it is projected that they would generate 220,000 new employment, of which 130,000 will be in construction and 90,000 will be permanent. Additionally, the initiatives will reduce carbon emissions by up to 2 million metric tons yearly, which is the same as the pollution produced by 445,000 cars that run on gasoline. According to ARCHES, this would save $2.95 billion annually in health care expenses because of better air quality, especially in transportation routes.

The entire hydrogen lifecycle, from production to usage, will be covered by ARCHES projects throughout the state, including but not limited to:

Production of Clean Renewable Hydrogen: More than ten locations will generate enough clean renewable hydrogen to power the projects listed below and begin the expansion of the larger hydrogen ecosystem.

Ports in Oakland, Los Angeles, and Long Beach: By substituting hydrogen fuel cell equivalents and related fuelling infrastructure for diesel-powered cargo-handling equipment, these initiatives will reduce emissions and their negative effects on community health while reinventing large-scale transportation operations.

Heavy Duty Vehicles and Transit Buses: In order to support over 5,000 Class 6–8 fuel cell electric trucks and over 1,000 fuel cell electric buses, ARCHES intends to construct more than 60 hydrogen filling stations. This will allow diesel fuel to be directly replaced with a zero emission alternative on California’s highways and city streets.

Clean Power: Major power facilities in the Northern California Power Agency and Los Angeles Department of Water and Power will switch to 100% renewable hydrogen. The state’s grid operations will be supported by distributed fuel cells, which will also offer resilience in strategic areas such as the federally recognized Rincon Band of Luiseño Indians reserve.

The vessel Scripps Marine: A 140-foot, 50-person marine research vessel driven by hydrogen will be the first of its type. Liquid hydrogen will be used to replace tens of thousands of gallons of diesel fuel annually. By converting 75% of its emissions to fossil-free energy, the ship will dramatically lower CO2 emissions and show the way forward for smaller sea and harbor vessels in a sustainable manner.