California will receive $1.2 billion from the U.S. Department of Energy to spur the production and use of so-called clean hydrogen in the state.
The funding is coming as a part of DOE's move Friday to designate the state one of its seven regional hubs for hydrogen innovation. California plans to use the money to fund projects to use hydrogen for electric power generation and in fuel cells that would power heavy duty trucks, according to the federal agency.
"This award is a testament to California's unrivaled commitment to a carbon-neutral future," Dee Dee Myers, director of Governor's Office of Business and Economic Development, said in a news release. "This critical funding," she continued, "will help California build a system of hydrogen projects to integrate renewable energy into our economy, resulting in cleaner air and family supporting jobs for communities across the state."
California anticipates award will leaded to the creation of more 220,000 jobs in the state — 130,000 in construction and 90,000 permanent ones, according to the DOE. The state is working with Alliance for Renewable Clean Hydrogen Energy Systems (ARCHES), a public-private partnership, to allocate the funding and nurture its hydrogen industry.
It's unclear what projects ARCHES will fund or where exactly it will direct the money. But the Bay Area seems a good bet to get a good-sized piece of the pie.
The region is already home to more than 75 companies in the hydrogen space, according to PitchBook Data. Collectively since 2014, those companies have raised more than $1.6 billion in venture funding across more than 200 deals.
Notable local startups in the space include Electric Hydrogen Co., a San Carlos-based developer of hydrogen electrolyzers; EnerVenue Inc., a Fremont-based developer of energy storage systems; and Charm Industrial Inc., a San Francisco company geared toward making hydrogen from biomass.
The DOE award announcement follows Gov. Gavin Newsom's move in August to direct Myers' agency to develop a strategy for building a hydrogen industry in the state. Newsom's move excited many of the Bay Area companies working on hydrogen projects.
California's grant will come out of the $7 billion total the DOE is handing out to the seven hubs, which consist of 16 states. The grants are specifically for projects involving clean hydrogen, which is derived from biomass or renewable energy.
