The Appalachian Regional Clean Hydrogen Hub (ARCH2) has reached a cooperative agreement with the US Department of Energy (DOE) Office of Clean Energy Demonstrations to receive up to $925m in federal funding.
The funding will spearhead the development of a clean hydrogen hub in Appalachia, with projects spanning across West Virginia, Ohio and Pennsylvania.
ARCH2 was one of seven hubs selected by the DOE in October 2023 to receive a share of $7bn in grants as part of the Regional Clean Hydrogen Hub (H2Hubs) programme.
The programme aims to create regional clusters of clean hydrogen producers, consumers and connective infrastructure that will form the foundation of a national clean hydrogen network in the US.
Divided into four phases that span more than a decade, the programme has awarded ARCH2 $30m for Phase 1, which is expected to last up to 36 months, starting in July 2024.
The remaining portions of the allocated federal dollars will be unlocked in future phases as the hub reaches specific milestones set by the DOE.
As well as producing clean hydrogen, ARCH2 is expected to create thousands of new jobs and ensure that 40% of the overall benefits flow to disadvantaged communities in the region.
The ARCH2 project’s development partners include Air Liquide, CNX Resources, Enbridge Gas Ohio, Empire Diversified Energy, EQT, Fidelis New Energy, Hog Lick Aggregates, Hope Gas, Independence Hydrogen, KeyState and Plug Power.
Management will be led by Battelle, Allegheny Science and Technology, GTI Energy and TRC Companies, with support from the National Energy Technology Laboratory.
ARCH2 is one of the smaller projects in the H2Hubs programme, with the California and Gulf Coast being allocated budgets of up to $1.2bn each. California’s ARCHES hub was the first of the seven selected hubs to officially sign the agreement for construction with the DOE.
