US launches $1bn initiative to ‘jumpstart’ hydrogen

Funding to focus on demand side for hubs as government warns market uncertainty is delaying projects

The US government is drawing up plans for a $1bn funding programme aimed at “jumpstarting” the hydrogen economy by stimulating demand, in a sign of its growing frustration with the sector’s pace of development. The US Department of Energy (DoE) is consulting industry on the potential design of demand-side support aimed specifically at securing offtakers for hydrogen hubs to unlock private investment. Later this year, the Biden-Harris administration is expected to announce the selection of 6–10 regional hubs, which are designed to co-locate hydrogen production and industrial end-users, to receive a total funding of up to $7bn. The main hub programme, which is funded by President Biden’s Bipar