Department of Energy Announces Availability of $750 Million for Clean Hydrogen Projects

March 19, 2023

by Paul Ciampoli
APPA News Director
March 19, 2023

The U.S. Department of Energy on March 15 announced the availability of $750 million for research, development, and demonstration efforts to reduce the cost of clean hydrogen.

The funding launches the first tranche of implementation of two provisions of the Bipartisan Infrastructure Law, which authorizes $1 billion for research, development, demonstration, and deployment activities to reduce the cost of clean hydrogen produced via electrolysis and $500 million for research, development, and demonstration of improved processes and technologies for manufacturing and recycling clean hydrogen systems and materials.   

Clean hydrogen — which is produced with zero or next-to-zero carbon emissions — is set to play a key future role in reducing emissions from some of the most energy-intensive sectors of our economy, including industrial and chemical processes and heavy-duty transportation, DOE said.

Clean hydrogen can also support the expansion of variable renewable power by providing a means for long-duration energy storage and offers flexibility and multiple revenue streams for all types of clean power generation including renewables, advanced nuclear, and other technologies.

Managed by DOE’s Hydrogen and Fuel Cell Technologies Office, projects funded through this opportunity will address underlying technical barriers to cost reduction that can’t be overcome by scale alone.

Together with regional clean hydrogen hubs, tax incentives in the Inflation Reduction Act, and ongoing research, development, and demonstration in the DOE Hydrogen Program, these investments will help DOE achieve its Hydrogen Shot goal of being able to produce $1 per kilogram of clean hydrogen within a decade, it said.

DOE envisions granting multiple financial assistance awards in the form of cooperative agreements, with the period of performance being approximately two to five years. DOE encourages applicant teams that include stakeholders within academia, industry, and national laboratories across multiple technical disciplines. Teams are also encouraged to include representation from diverse entities such as minority-serving institutions, labor unions, tribal nations, community colleges, and other entities connected through Opportunity Zones.    

The application process will include two phases: a Concept Paper phase and a Full Application phase. Concept papers are due on April 19, 2023, and full applications are due on July 19, 2023.    

Click here for additional details about the funding opportunity.