Midwest hydrogen hub involving Indiana to get $22.2M in initial federal support
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A federally designated Midwest hub that seeks to accelerate clean hydrogen production will receive $22.2 million in initial federal funding.
The Department of Energy’s Office of Clean Energy Demonstrations announced Wednesday afternoon that it had reached a cooperative agreement with the Midwest Alliance for Clean Hydrogen, or MachH2 for short, and awarded Phase 1 funding for infrastructure building and workforce program development.
Funded by the Bipartisan Infrastructure Law passed in 2021, the Chicago-based hub could eventually receive up to $1 billion in federal funding in additional phases for projects related to clean energy. It is the fourth of seven hubs so far to receive funding.
The hub is evaluating eight project locations in Illinois, Indiana, Iowa and Michigan, and is focused on clean hydrogen for transportation, aviation and manufacturing The federal funding offsets part of the project’s total estimated cost of $51.7 million.
The sole Hoosier project is BP in northwest Indiana. The company is working on hydrogen-related technology for its refinery in Whiting, where steel manufacturers could benefit from cleaner energy sources.
“With these new resources, we will continue to lead the nation through our shared commitments to job creation, economic investment and innovation,” Gov. Eric Holcomb said in a news release. “ Today’s Phase 1 award announcement brings our hydrogen hub one step closer to generating thousands of local, family-sustaining careers well into the future.”
The department said funded projects are expected to produce more than 1,000 metric tons per day of clean hydrogen at scale. Phase 1 funding will last between 12 to 18 months, and an estimated 12,000 construction jobs are estimated to be created across the four states.
The hub also has an agreement to follow a community benefits package that seeks to mitigate potential consequences and equitably spread energy across the region.
Indiana is home to three federal tech hub designations, including the Silicon Crossroads Microelectronics Commons Hub, which received $33 million in initial funds, and the Heartland BioWorks Hub, which recently received $51 million.