DOE RFI on Demand-side Support for Clean Hydrogen

The Department of Energy (DOE) Office of Clean Energy Demonstrations (OCED) is considering establishing a Demand-side Support Mechanism to support reliable demand for hydrogen at DOE-supported Regional Clean Hydrogen Hubs (H2Hubs). As part of this process, DOE intends to issue a Broad Agency Announcement (BAA) entitled “Implementing Entity (or Entities) for Demand-side Support Mechanism for Clean Hydrogen Hub Projects” in the summer or early fall timeframe. The BAA will seek an independent Implementing Entity to run a DOE-designed and (up to $1 billion) DOE-funded demand-side support mechanism to support the development of the H2Hubs.

The demand-side support mechanism will provide multi-year support for clean hydrogen produced by competitively selected projects affiliated with H2Hubs. It will facilitate bankable clean hydrogen demand from a diverse set of customers. The mechanism could include one or more design factors such as pay-for-delivery contracts, offtake backstops, feasibility funding to support analysis by offtakers, or other measures that strengthen demand for clean hydrogen and increase revenue certainty for H2Hubs. The mechanism will enable private sector financing and expedite progress to Final Investment Decision for H2Hubs.
 
“Ensuring America is the global leader in the next generation of clean energy technologies requires all of us — government and industry — coming together to confront shared challenges, particularly lack of market certainty for clean hydrogen that too often delays progress,” said U.S. Secretary of Energy Jennifer M. Granholm. “That’s why DOE is setting up a new initiative to help our private sector partners address bottlenecks and other project impediments — helping industry unlock the full potential of this incredibly versatile energy resource and supporting the long-term success of the H2hubs.”
 
Read the full RFI on Additional Support for Regional Clean Hydrogen Hubs here.