ARCH2: Being Developed Using BIL Funds
Funding Overview
(Arch2 Bil Funds)
- Each of the H2 hubs will integrate H2 production, storage, distribution, and end-use in applications such as transportation, steel, cement production, and power.
- A key objective of the H2 hub program is to create economies of scale in H2 production and use to reduce the cost of H2 so that it is competitive with diesel fuel.
- Clean Fuel Services LLC (“CFS”), a subsidiary of HLA, was selected to develop a H2 refueling/servicing depot and an H2 trucking operation as part of ARCH2 (the “CFS Depot”).
- US DOE grant funding is being provided on a cost-share basis with private capital funding approximately 60% of the project cost.
- In addition to the US DOE grant, H2 producers will receive tax credits of up to $3/kg (approx. $3/gal) that are intended to make the cost of H2 competitive with diesel
The Appalachian Regional Clean Hydrogen Hub (“ARCH2”) is one of 7 hydrogen (H2) hubs being developed with $7bn of funding under the Bipartisan Infrastructure Law (BIL).
