Feds commit $1B to 'hydrogen hub' for Midwestern states

The U.S. Department of Energy will give up to $1 billion to a group that plans to build facilities in four states — including Iowa — to produce hydrogen fuel with electricity from wind, solar and nuclear power, the department announced this week.

The Midwest Alliance for Clean Hydrogen has identified eight potential sites for production in far Eastern Iowa, Illinois, Indiana and Michigan.

The alliance is a multistate group that comprises energy producers, labs, universities and others, according to its website. Its goal is to produce 1,000 metric tons of hydrogen per day, with the potential to expand into more states.

Federal officials have sought to foster the industry in recent years for its potential to reduce greenhouse gas emissions of manufacturing, refining, heavy-duty transportation and other sectors that are difficult to decarbonize.

The fuel is made with water, an electrolyzer and electricity. Iowa is a major producer of electricity from wind, which powered 59 percent of Iowa's net generation in 2023.

Another hydrogen hub proposal that included Iowa did not receive funding from the energy department last year.

It's unclear when the Midwest Alliance for Clean Hydrogen's facilities might be operational. The first phase of planning and developing is expected to take 18 months.

"Today's announcement marks a major milestone in DOE's Hydrogen Hubs program, signaling our deep commitment to strengthening America's energy security and boosting our economic and global competitiveness while also tackling the climate crisis," U.S. Secretary of Energy Jennifer Granholm said in a statement.

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