Milbank LLP Project, Energy and Infrastructure Finance partner Allan Marks was featured on New Project Media’s (NPM) Interconnections podcast, where he discussed the US Department of Energy’s (DOE) award of up to $7 billion in funding for seven new, regional clean hydrogen hubs.
The 2021 Bipartisan Infrastructure Law authorized the funding for the new hubs to create a clean hydrogen economy in the United States. Speaking with NPM’s Managing Editor Jon Berke and Senior Reporter Jillian Ward, Mr. Marks discussed how this federal funding will stimulate up to $40 billion in additional private investment. These public-private partnerships should accelerate innovative uses for clean hydrogen to decarbonize hard-to-abate sectors, such as ammonia and fertilizer production, fuel cells, long-haul transportation, ports, agriculture, and heavy industry. The regional hubs will bring geographic diversity, feedstock diversity, and end-use diversity, covering production and processing of clean hydrogen and associated transport and storage infrastructure.
Mr. Marks also explained how the DOE’s decision will split funding between green hydrogen (relying entirely on renewable energy and electrolysis) and blue hydrogen (relying on natural gas with carbon capture and storage) projects.
Mr. Marks noted, “The hubs that are creating the most jobs, and that are furthest along in working towards fully realized projects, are where you'll see the most forward momentum.” The hubs are bringing together energy companies, utilities, technology companies, state and local government agencies, organized labor and trade unions, research universities and end users.
