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Philadelphia

Philadelphia and Pittsburgh Hydrogen Hubs Face $1.7B DOE Funding Cuts

The Philadelphia-area Mid-Atlantic Clean Hydrogen Hub (MACH2) and the Pittsburgh-based Appalachian Regional Clean Hydrogen Hub (ARCH2) could soon face an uncertain future. Reports indicate that the U.S. Department of Energy (DOE) is reviewing federal funding allocations that could result in the termination of both hubs, potentially eliminating $1.7 billion in promised federal funds.

Both hydrogen hubs had previously survived a round of federal cuts announced last week, which included more than $43 million earmarked for energy projects in Delaware and New Jersey. However, the DOE’s newly obtained list includes over 300 additional projects nationwide, putting several Pennsylvania initiatives, including MACH2 and ARCH2, under scrutiny.

Story Highlights:

  • MACH2 and ARCH2 face possible termination, risking $1.7 billion in federal funding.

  • DOE emphasizes a thorough review of awards, no final decisions made yet.

  • MACH2 focuses on clean hydrogen production using renewable energy, promising 20,000 new jobs.

  • ARCH2 uses fracked natural gas for hydrogen, with plans for carbon capture and storage.

  • Both hubs align with the Biden administration’s net-zero carbon emissions goal.

  • Funding originates from the Bipartisan Infrastructure Law, totaling $7 billion for seven national hubs.

Ben Dietderich, DOE press secretary, told NPR, “The Department continues to conduct an individualized and thorough review of financial awards made by the previous administration.”

He added, “Rest assured, the Department is hard at work to deliver on President Trump’s promise to restore affordable, reliable, and secure energy to the American people.”

Pennsylvania Governor Josh Shapiro, a vocal supporter of the state’s hydrogen initiatives, expressed concern over the potential cuts.

Through a spokesperson, Shapiro said, “I am an all-of-the-above energy Governor who has worked tirelessly to generate more power in the Commonwealth.”

He continued, “If these projects are terminated, it would jeopardize tens of thousands of building trades jobs across Pennsylvania.”

Rosie Lapowsky, spokesperson for Governor Shapiro, also highlighted President Trump’s previous comments on energy support. She said, “When Senator McCormick invited President Trump to Pittsburgh in July, the President said he supports the development of new sources of energy in Pennsylvania — even praising the very projects now reportedly at risk.”

The Philadelphia hydrogen hub, MACH2, is designed as a public-private consortium to fast-track commercial-scale clean hydrogen production using renewable energy rather than fossil fuels. The project spans Pennsylvania, New Jersey, and Delaware and is expected to create 20,000 jobs.

In January, just two days before President Trump took office, MACH2 finalized an agreement with the DOE, securing $18.8 million, with a federal cost share of up to $750 million. The project targets hydrogen-powered manufacturing and transportation in the region.

Meanwhile, the Pittsburgh hydrogen hub, ARCH2, plans to produce hydrogen using fracked natural gas, coupled with underground carbon storage. ARCH2 covers West Virginia, Ohio, and Pennsylvania and is slated to receive $925 million in federal funding.

Last year, ARCH2 received $30 million for planning and siting 11 projects managed by 12 companies. The initial phase of planning is expected to last up to 36 months.

Currently, most hydrogen in the United States is produced using carbon-intensive processes from natural gas. Both MACH2 and ARCH2 were among seven hydrogen hubs nationwide announced in 2023 to receive a combined $7 billion in funding through the Bipartisan Infrastructure Law.

Representatives for MACH2 and ARCH2 did not respond to requests for comment by the time of publication.

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