Padilla Secures Up To $1.2 Billion Federal Investment to Build Clean Hydrogen Hub in California

WASHINGTON, D.C. — Today, U.S. Senator Alex Padilla (D-Calif.) announced that he secured up to $1.2 billion from the U.S. Department of Energy (DOE) to establish the Alliance for Renewable Clean Hydrogen Energy Systems (ARCHES) hydrogen hub to produce and utilize renewable, clean hydrogen across California. This landmark investment is made possible by the Bipartisan Infrastructure Law, which provides up to $7 billion to build six to 10 regional hydrogen hubs throughout the nation.

ARCHES aims to establish a renewable, clean hydrogen market and ecosystem in California by 2030, creating a projected 220,000 jobs in the state and reducing harmful downstream emissions that disproportionately impact underserved communities and accelerate the climate crisis. California recently published a roadmap to carbon neutrality by 2045, which included a projected 1,700-fold increase in the use of hydrogen across multiple industrial sectors. ARCHES will help meet this ambitious goal by bringing together nearly 300 organizations across California representing state, county, and city governments; industry; community groups; universities; labor unions; non-governmental organizations; and national labs to accelerate clean hydrogen’s market viability and decarbonize California’s economy.

“Clean, renewable hydrogen power is essential to foster clean energy job growth and meet California’s ambitious carbon neutrality goals. Today marks a significant and decisive investment in decarbonizing our economy, with California and the Bipartisan Infrastructure Law paving the way toward a clean energy future,” said Senator Padilla. “This project will bring together leaders from across government, industry, labor unions, national labs, and more to jumpstart the market for renewable hydrogen and establish a sustainable, clean hydrogen hub by 2030. The hydrogen hub will bring tens of thousands of good-paying jobs, cleaner air, and reduced fuel costs to our state — while also focusing on environmental justice and equity for disadvantaged communities. As we grapple with the existential threat of the climate crisis, I am proud to have secured this monumental federal investment in the ARCHES hydrogen hub.”

Specifically, the ARCHES hydrogen hub will:

  1. Prioritize improving clean hydrogen viability in some of the most challenging industries to decarbonize — including ports, power, and heavy-duty transportation;
  2. Work to implement hydrogen fuel usage in the aviation, maritime, and agriculture industries, among others;
  3. Aim to make the cost of clean hydrogen in California cheaper than diesel and other traditional fuels by 2030;
  4. Create a national model for workforce development.

Earlier this year, Padilla and the late Senator Dianne Feinstein (D-Calif.) sent a letter to Energy Secretary Jennifer Granholm urging the DOE to support the ARCHES clean hydrogen hub proposal as part of its Regional Clean Hydrogen Hubs program. During a Senate Environment and Public Works Committee hearing, Padilla highlighted the effectiveness of California’s Low-Carbon Fuel Standards (LCFS) program in investing in clean hydrogen production for zero-emissions vehicles and called for the implementation of a similar national program to reduce emissions.