AES Participating in Two Clean Hydrogen Hubs Awarded Funding by US Department of Energy

Up to $2.4 Billion Will Support the Development and Scaling of Clean Hydrogen Infrastructure in California and Along the Gulf Coast

ARLINGTON, Va., Oct. 13, 2023 /PRNewswire/ -- The AES Corporation (NYSE: AES) announced today that it is part of two Regional Clean Hydrogen Hubs receiving funding from the US Department of Energy. The two selections stand to receive up to $2.4 billion of grant funding allocated by the Bipartisan Infrastructure Law (BIL) to develop Clean Hydrogen Hubs across the country.

AES is part of two of the awarded hubs: the Alliance for Renewable Clean Hydrogen Energy Systems (ARCHES) Hub in California, which was allocated up to $1.2 billion, and the HyVelocity Hub in the Gulf Coast of Texas and Louisiana, which was allocated up to $1.2 billion. Through these Hubs, AES expects to secure funding for new green hydrogen projects which it will own and operate in those regions, along with associated renewables.

"We are very pleased that two of the Regional Clean Hydrogen Hubs in which AES is participating were selected by the DOE to receive grants," said Andrés Gluski, AES President and Chief Executive Officer. "These announcements, together with our joint venture in North Texas with Air Products, consolidate AES' position as one of the leaders in producing Green Hydrogen in America."

Over the past year, over 30 regional consortiums consisting of a variety of governments, private companies, academic institutions and non-profits were formed to compete for the Department of Energy's Hydrogen Hub funding. The Regional Clean Hydrogen Hubs program was established by the BIL and has allocated $7 billion to build 7 regional clean hydrogen hubs across the US, with a focus on creating networks of hydrogen producers, consumers and local infrastructure that advances the availability and use of clean hydrogen. Development plans for the hubs in which AES is participating are expected to be finalized over the next several years with operations commencing in the latter part of the decade.

About AES

The AES Corporation (NYSE: AES) is a Fortune 500 global energy company accelerating the future of energy. Together with our many stakeholders, we're improving lives by delivering the greener, smarter energy solutions the world needs. Our diverse workforce is committed to continuous innovation and operational excellence, while partnering with our customers on their strategic energy transitions and continuing to meet their energy needs today. For more information, visit www.aes.com.

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