This investment, which will directly reduce California's reliance on fossil fuels, marks a greater step forward in the state's efforts to achieve a carbon-neutral economy by 2045 and follows California's selection last October as one of seven awardees of the DOE's Regional Clean Hydrogen Hubs ( H2Hubs)–catalyzing a national network of clean hydrogen producers, consumers, and connective infrastructure. ARCHES is the first of the seven H2Hubs to officially sign their agreement with the DOE.
“I was proud to help secure $1.2 billion of federal investments through the Bipartisan Infrastructure Law to build a hydrogen hub right here in California,” said Senator Alex Padilla. “The path to achieving California's ambitious clean energy goals runs through ARCHES, and I'm excited to see the California Hydrogen Hub kickoff with this initial round of funding. California is leading the nation with the first hydrogen hub to sign a cooperative agreement, and we will continue to lead by decarbonizing goods movement, the energy sector, and heavy industry.”
The overall investment, starting with $30 million for the first tranche of funding out of the total federal project cost share of up to $1.2 billion, is projected to create over 220,000 well-paying jobs. At full build out, it is estimated that ARCHES DOE projects will result in $2.95 billion per year in decreased healthcare costs due to improved air quality, particularly along transportation corridors.
“The Department of Energy's announcement to fund ARCHES is a monumental step forward in the state's efforts to achieve its air quality, climate and energy goals, while improving the health and well-being of Californians and creating new green jobs across the state,” said Angelina Galiteva , CEO, ARCHES.
Spearheaded by Gov. Gavin Newsom, California's climate policies, including the California Climate Crisis Act (AB 1279), the 2022 Scoping Plan for Achieving Carbon Neutrality, the Executive Order on Zero-Emission Vehicles, and the upcoming all-of-government Hydrogen Market Development Strategy, all work together to send strong signals about the critical role of hydrogen in decarbonizing the state's economy. Each of the selected ARCHES projects will play a significant role in improving air quality and public health in many underserved communities throughout California.
“California tribes are excited to work with ARCHES on the Hub project which will help accelerate the state's future of renewable energy and the development of the Hydrogen Trail initiative to bring sustainable energy stations and clean hydrogen to Federally Recognized reservations and rural communities,” stated Bo Mazzetti, Chairman of the Rincon Band of Luiseño Indians, and ARCHES Board Member.
ARCHES projects will span statewide, covering the full hydrogen lifecycle from production to use, including, but not limited to:
In the coming weeks, ARCHES will be announcing additional projects and partners who will receive Hub funding