10/19/22, 10:50 AM About – Arches H2
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Mission:
MENU
Alliance for Renewable Clean
Hydrogen Energy Systems
ARCHES is a public-private partnership to create a
sustainable statewide clean hydrogen (H) hub in
California and beyond, utilizing local renewable
resources to produce hydrogen with the objective to
fully decarbonize the regional economy, while
prioritizing environmental justice, equity, economic
leadership and workforce development.
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ARCHES Principles
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Statewide
Leveraging California’s size and diverse geography and economy to produce, transport, store, and use H at scale with multiple clusters of each, provides an ideal H test-bed for the nation.
Green
California has long led the nation and the world in environmental innovation and policy and will do so again with clean H.
Stakeholder and Community-Engaged
Built-in and ensured at all stages of the process.
Equity and Justice Centered
Prioritized in all decisions with a focus on California’s impacted, disadvantaged, low-income, and tribal communities.
Aligned with State Interests
To move California toward a robust H economy and marketplace, and a cleaner, greener future. 2 2
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Solution-Oriented
Focused on implementation with targeted research and innovation to achieve the DOE’s $2/kg 5-year goal and the administration’s $1/kg 10-year goal.
Objective and Unbiased
Representing and ensuring the interests of all parties.
Multi-Dimensional
Considering all aspects of a successful H economy.
Connected
Within California and other H hubs.
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ARCHES Priorities
Prioritize renewable, clean H (green H).
Focus efforts on communities with the largest pollution burden. 2 2
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Invest in the energy system, taking a multi-sectoral approach.
Develop public policy that enables early-markets, while private capital scales them.
Prioritize hardest to abate sectors with biggest emissions profiles, focusing on creating economically sustainable markets.
Create an economically sustainable, expanding, renewable H market2 Background: Federal Hydrogen Hub Program
Clean H from renewable sources offers enormous potential for a zero-carbon energy future. The Biden Administration’s Hydrogen Earth Shot Challenge aims to reduce the cost of H by 80% within one decade, from the current ~$5 per kilogram (kg) down to $1 per kg. In support of this goal, the Infrastructure Investment and Jobs Act (IIJA) aims to establish a network of regional hubs that will deploy clean H technologies at scale. 2[1]
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The IIJA appropriates $8B over 5 or more years to establish at least 4 regional Hhubs, with a minimum of one focused on renewable sources. Hubs will create a network of clean H producers, consumers, and infrastructure to deliver clean H at a cost of $2/kg by 2026 and $1/kg by 2031. The federal program will consist of a 3-18 month planning phase and 8-12 year deployment phase, as speci ed by The US Department of Energy (DOE) Noti cation of Intent. The DOE will require a 1:1 cost share from award recipients for hub construction and deployment. The majority of hub funding will support technology demonstrations and deployments, such as electrolyzers to produce clean H at solar power plants, infrastructure to transport H, and end users like heavy-duty trucks to consume the H. 7-10% of hub funding is expected to go toward research, complemented by synergistic DOE research grant funding. The hubs must demonstrate and evaluate methods for H production, processing, delivery, storage, and end-uses, and that they can become part of a national H network to facilitate an H economy. Additional DOE support after the hub funding is expected to connect regional hubs and continue building a national H economy. Environmental and energy justice, workforce development, safety, and codes and standards are all additionally integral to the DOE clean H hub program. The DOE’s Funding Opportunity Announcement (FOA) is anticipated in September-October 2022, setting criteria and a deadline for hub applications.
ARCHES: A Statewide Partnership for a California
Hub
ARCHES is a statewide public-private partnership built on California’s long-standing H and renewable energy leadership to serve as the applicant and organizer for a statewide H hub. 2 2
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The State—led by GO-Biz alongside other state agencies, the legislature, local governments, and the State’s institutions of higher education, including UC and its three national laboratories —provides vision, leadership, oversight, accountability, and matching funds. Industry partners bring deep technical expertise and capability for building an H network in California and signi cant in-kind matching capacity. Local governments, environmental justice advocates, nonpro ts, and organized labor bring a strong focus on community engagement, public health, environmental protection, workforce development, and other issues of critical importance to ARCHES.
ARCHES is anticipated to include major deployment clusters in the Los Angeles Basin and Bay Area and extend into the Central Valley, Inland Empire, and other regions (and possibly
neighboring states) with high renewable resources, geologic storage possibilities, key transportation corridors, and need for clean energy and reduced pollution.
Why a California renewable H hub is poised to
succeed and meet California’s needs
The IIJA requires at least one Hub to produce H using renewable resources. California’s leadership and early efforts on transitioning to 100% renewable, zero-carbon electricity, and developing H infrastructure makes the State especially competitive to win a renewable clean H hub award. California’s extensive renewables portfolio will be essential to power electrolyzers that make clean, renewable H, decarbonize sectors that are hard to electrify directly, and develop long-duration energy storage solutions.
An H hub is an excellent investment of California resources. It will fast-track the development and implementation of H
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Endnotes
“Clean hydrogen” is defined in the IIJA as H2 produced with a carbon intensity equal to or less than 2 kilograms of carbon dioxide-equivalent produced at the site of production per kilogram of H2 produced.
Federal agencies and stakeholders may re-evaluate this definition over the next 5 years (Sec. 40315 (a)), https://www.congress.gov/bill/117th-congress/house-bill/3684/text DOE Notice of Intent to issue Funding Opportunity Announcement No.: DE-FOA-0002779. https://oced- exchange.energy.gov/FileContent.aspx?FileID=72980077-30f7-4c57-b1e2-7b0bf8e52697 [1]
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economy, advance environmental justice goals by accelerating the transition to zero-emissions technologies in polluted communities, provide good high-road union careers and clean energy job training to California’s workforce, provide R&D funding to develop the technological innovations needed to advance clean H technology, and kickstart California’s H marketplace, maintaining California’s competitive edge as the new H
economy emerges.
The H economy also presents real opportunities to retain and expand California’s clean energy workforce, which will build out the vast renewable energy generation needed to power
electrolyzers and implement H production, storage, delivery, and end-use technologies. The conversion of signi cant fossil fuel distribution infrastructure will also allow for sustained employment otherwise at risk in the transition to clean energy. 2 2
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