ARCH2 to receive $925M to jumpstart regional clean hydrogen economy in Appalachia

Under a new cooperative agreement with the U.S. Department of Energy’s Office of Clean Energy Demonstrations (OCED), the Appalachian Regional Clean Hydrogen Hub (ARCH2) will receive up to $925 million in federal funding to lead the development of a clean energy hub in Appalachia.

The funding, which will be doled out over the project lifetime, aims to jumpstart a regional clean hydrogen economy, opening the door to billions of dollars in private sector investment to create thousands of jobs in the Appalachian region.

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. The project portfolio spans Pennsylvania, Ohio, and West Virginia and will take advantage of the region’s resources for diverse hydrogen production, storage, delivery, and end-use applications.

The Department of Energy selected ARCH2 in October 2023 as one of seven hubs from across the nation to enter award negotiations for the department’s Regional Clean Hydrogen Hubs Program – a long-term initiative that aim to create regional clusters of clean hydrogen producers, consumers, and connective infrastructure that will form the foundation of a national clean hydrogen network. The program is divided into four phases that span more than a decade.

ARCH2 was awarded $30 million for Phase 1, which is expected to last up to 36 months. The remaining portions of the allocated federal dollars will be unlocked in future phases as the hub successfully reaches specific milestones set by the DOE.

A virtual community briefing will be held Aug. 16, during which OCED and ARCH2 leaders will offer additional information regarding current project plans, Community Benefits Commitments, and engagement opportunities.

ARCH2 Project Development Partners include 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. 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).

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