Biden will award $7 billion for clean hydrogen hubs across America

Biden's administration will award $7 billion to 7 clean hydrogen projects in 7 states. The triple-seven formula aims to advance his climate change agenda on the verge of elections.

The budget will fund hydrogen fuel energy hubs in California, Washington, Minnesota, Texas, Pennsylvania, West Virginia, and Illinois.

According to Reuters, hydrogen is produced by electrolyzing water. The fuel can be considered low emission if made with renewable energy.

Hydrogen fuel is one of the bases for Biden's climate change agenda, as he hopes to replace fossil fuels like coal and oil with a renewable energy source.

The Biden administration has called the fuel "essential" to reaching net-zero emissions in the US by 2050, reported the Associated Press.

The $7 billion allocated by the White House will be rounded out with more than $40 billion in private investments, making the final budget around $50 billion.

The White House claims that, aside from attracting private investment, the projects will also create thousands of jobs, including high-paying union ones.

The White House hopes the fuel will help energy-intensive industries, like steel, transportation, and shipping, transition away from fossil fuels.

But the plan has not been excent of doubts. Experts cited by Reuters and AP have questioned the real impact of changing to hydrogen or the effectiveness of creating funding programs.

Industry experts cited by Reuters have claimed these funds may not yield results in years between design, permitting, financing, and construction. Some projects may not even see the light.

An example of that problem, cited by the news agency, is the Inflation Reduction Act's subsidies, created last year. Industry players are still waiting for guidelines from the Treasury Department on accessing them.

An expert told Reuters that the lack of clarity about these regulations makes it hard to understand whether investments in new hydrogen projects will yield benefits.

On the other hand, according to the AP, environmental activists believe that hydrogen is a "false solution" to the climate crisis because of the conditions it takes to be low-emission.

The hydrogen fuel industry needs to use clean energy sources. Otherwise, using the fuel will lead to larger emissions than simply burning the fossil fuels used to manufacture it.

That is why environmental groups have urged the Treasury Department to give the Inflation Reduction Act's subsidies only to companies that use clean energy sources to make hydrogen.

President Biden announced the $7 billion plan in Pennsylvania, a critical state for the 2024 presidential election, with labor unions that are essential Biden supporters.