Reuters reports that the U.S. Department of Energy has awarded up to $2.2 billion to centres on the Gulf Coast and in the Midwest to develop hydrogen.

The awards were made in terms of the bipartisan 2021 infrastructure law and represent approximately 30% of the total $7 billion which has been made available for such federal grants.

The Gulf Coast hydrogen hub in Texas was awarded $1.2 billion while the Midwest hub, with locations across the industrial corridor of Illinois, Indiana, Iowa and Michigan, was awarded up to $1 billion.

The Gulf hub proposes to produce clean hydrogen from water through electrolysis and from natural gas with emissions captured and stored underground. The Midwest hub aims to produce hydrogen with wind energy, natural gas with carbon capture, and nuclear.

According to the Biden administration, the clean hydrogen initiative will set the U.S. on a path to produce 50 million metric tons of clean hydrogen fuel by 2050.

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