Partnership Formed to Develop Appalachian Regional Clean Hydrogen Hub (ARCH2)

The Appalachian Regional Clean Hydrogen Hub (ARCH2) has achieved a significant milestone by executing a cooperative agreement with the U.S. Department of Energy (DOE) Office of Clean Energy Demonstrations (OCED). This agreement will grant ARCH2 up to $925 million in federal funding to spearhead the development of a clean hydrogen hub in Appalachia. This federal support is expected to unlock billions of dollars in private sector investments, creating thousands of well-paying jobs and catalyzing a regional clean hydrogen economy in the Appalachian region.

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H2Hub Program Background

In October 2023, the DOE selected ARCH2 as one of seven hubs from across the nation to enter award negotiations for the DOE’s Regional Clean Hydrogen Hubs Program (H2Hubs). The H2Hubs initiative aims to create regional clusters of clean hydrogen producers, consumers, and connective infrastructure, forming the foundation of a national clean hydrogen network. The program is structured into four phases spanning more than a decade. ARCH2 was awarded $30 million for Phase 1, expected to last up to 36 months starting in July 2024. The subsequent phases will release the remaining funds as ARCH2 successfully reaches specific milestones set by the DOE.

Economic, Environmental, and Social Benefits

ARCH2 promises to deliver significant economic, environmental, and social benefits to the Appalachian region. Environmentally, the project aims to produce clean hydrogen to decarbonize hard-to-abate sectors such as manufacturing and transportation. Economically, it will create thousands of new jobs and train local workers for the energy jobs of tomorrow. Socially, the initiative is committed to ensuring that 40 percent of the overall program benefits flow to disadvantaged communities that are marginalized by underinvestment and overburdened by pollution.

“This federal funding will unlock billions of dollars in private sector investment to create thousands of well-paying jobs in Appalachia’s emerging hydrogen economy. In partnership with OCED, ARCH2 will create a clean, economically viable, and socially equitable hydrogen ecosystem within Appalachia, revitalizing local communities impacted by the energy transition,” a spokesperson for ARCH2 stated.

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Community Engagement and Project Details

ARCH2 will soon share additional details on the project portfolio, Community Benefits Commitments, and plans for Phase 1 community and labor engagement during an upcoming webinar. Interested parties are encouraged to check ARCH2’s Events page for more details.

ARCH2’s operations will span West Virginia, Ohio, and Pennsylvania, leveraging the region's vast resources for diverse clean hydrogen production, storage, delivery, and end-use applications. The project will involve multiple stakeholders, including private industry, state and local governments, academic and technology institutions, non-profit organizations, and community groups.

Key Partners and Management

ARCH2’s Project Development Partners include prominent companies and organizations such as Air Liquide, CNX Resources Corp., Enbridge Gas Ohio, Empire Diversified Energy, EQT Corp., Fidelis New Energy, Hog Lick Aggregates, Hope Gas Inc., Independence Hydrogen Inc., KeyState, and Plug Power.

The management of ARCH2 is led by Battelle, Allegheny Science and Technology (AST), GTI Energy, and TRC Companies, with support from the National Energy Technology Laboratory (NETL).

“This contract represents a key milestone in our partnership with CO280 to deliver large-scale carbon capture solutions for the North American industry,” said Egil A. Fagerland, chief executive officer, SLB-ACC JV. “We look forward to continuing our collaboration with CO280 and their pulp and paper partner to prepare for a full-scale carbon capture plant through the FEED.”

Conclusion

The cooperative agreement between ARCH2 and the DOE marks a pivotal moment in the development of a clean hydrogen hub in Appalachia. With substantial federal funding and the promise of unlocking billions in private investments, ARCH2 is set to create a robust clean hydrogen ecosystem that will bring significant economic, environmental, and social benefits to the region. By producing clean hydrogen, creating jobs, and ensuring equitable distribution of benefits, ARCH2 is poised to play a crucial role in the nation’s transition to a sustainable energy future.

For those interested in the progress and developments of ARCH2, stay tuned for upcoming webinars and further announcements on the ARCH2 Events page.

Further Information

More information on ARCH2 is available through various resources:

• ARCH2 Website

• ARCH2 Hub Fact Sheet

• [ARCH2 Awardee Fact Sheet](https://www.energy.gov/sites/default/files/2024-07/H2Hubs Appalachian Factsheet Booklet_update.pdf)

• [ARCH2 Community Benefits Commitments Summary](https://www.energy.gov/sites/default/files/2024-07/H2Hubs Appalachian CBC Booklet_update.pdf)