Science & Tech · Science & Environment · 2 hrs ago
Pennsylvania’s Hydrogen Hubs Stall Amid Federal Funding Uncertainty
Two hydrogen hub projects planned for Pennsylvania have stalled amid uncertainty over federal support.
The hubs, called MACH2 and ARCH2, were designed to link hydrogen producers, users and researchers across Pennsylvania and neighboring states.
MACH2 was awarded $750 million and ARCH2 $925 million under a federal program announced in 2023 to support seven hubs nationwide.
MACH2 was intended to produce hydrogen using clean energy, while ARCH2 planned to use fossil fuels and capture emissions.
MACH2 says its award is active but partners are proceeding cautiously, and ARCH2 has gone quiet, with former partners denying involvement or not responding to requests for comment.
Neither project has clear momentum, leaving planned investment and economic opportunities uncertain; the federal government has not said whether funding will continue.
The hubs also faced an earlier dispute over rules for tax credits that could provide producers up to $3 per kilogram of hydrogen.
Pennsylvania’s two federally backed hydrogen hubs have stalled amid uncertainty over whether the federal government will continue funding them.
MACH2’s chief executive says its award remains active, but partners are proceeding cautiously because of budget uncertainty.
ARCH2 has gone quiet, while MACH2 was still seeking potential partners as of late September.
The hubs were part of a federal program announced in 2023 to fund seven hydrogen hubs with $7 billion.
- Who
- The Mid Atlantic Regional Hydrogen Hub (MACH2) and Appalachian Hydrogen Hub (ARCH2), along with their partners.
- What
- The two Pennsylvania hydrogen hubs have stalled amid uncertainty over federal funding.
- When
- The hubs were announced in 2023; MACH2 was still circulating a request for partners as of late September.
- Where
- Pennsylvania and the surrounding region, including Delaware, New Jersey, West Virginia and Ohio.
- Why
- Partners are cautious about investing until they know whether federal funding will continue.
Environmentalists
Oil and gas proponents
Hydrogen tax credits
Environmentalists
Environmentalists wanted subsidies to go only to hubs powered by clean energy.
Oil and gas proponents
Oil and gas proponents sought more carve-outs for blue hydrogen hubs.
The Biden administration announced $7 billion in federal funding for seven hydrogen hubs.
President Joe Biden spoke about Pennsylvania’s MACH2 and ARCH2 hubs at Philadelphia’s Tioga Terminal.
MACH2 was still circulating a January request for potential partners to join the hub.
- Federal program
- $7 billion for seven hubs
- MACH2 award
- $750 million
- ARCH2 award
- $925 million
- MACH2 jobs pledge
- More than 20,000 jobs in the Delaware Valley region alone
- Hydrogen tax credit
- Up to $3 per kilogram of hydrogen produced
What people are saying
award is active
Until I see significant evidence to the contrary, I just don’t think the hubs are happening
ensure Pennsylvania continues to be an energy leader for decades to come.
It’s going to mean we’re producing less energy. I have no idea why the president of the United States would want to do that.
Sources
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