WILMINGTON —The
Mid-Atlantic Clean Hydrogen Hub (MACH2) has been awarded $18.8 million for the production of clean hydrogen in the first phase of federal funding after months of negotiation and some uncertainty with
President Donald Trump’s return.
MACH2 is a multi-state effort, including Delaware and several nearby states. The exact breakdown of the funding offered between Delaware, southern New Jersey and southeastern Pennsylvania is not clear, but phase one covers initial planning, design and community and labor activities across the three states and their industry partners.
Each partner in MACH2 is responsible for the planning and concept development of their respective facilities with the promise of a federal cost share of up to $750 million across the tri-state region. MACH2 could potentially support 20,000 jobs in the region, according to congressional reports.
“Leading the way on the production and use of clean hydrogen represents an unique opportunity to create more than 20,000 well-paying jobs and reduce pollution in our air and water all across our region, while strengthening our nation's energy security,” MACH2 Board co-chair Collin O’Mara told the Delaware Business Times in a prepared statement. “MACH2 is thrilled to be under award for phase one with the Department of Energy's Office of Clean Energy Demonstration to continue this critical work.”
MACH2 was one of the
last hydrogen hubs to receive approval by the U.S. Department of Energy right before former President Joe Biden left the office with its approval announced the Friday before Trump took the oath of office. The creation of the H2H program came through the $7 billion Infrastructure Investment and Jobs Act, one of Biden’s hallmark successes in his term as he sought to invest in new industries that moved the United States to net zero carbon emissions by 2050.
On the campaign trail, Trump had been vocal about clawing back federal dollars for infrastructure, transportation and energy projects across the country.
True to his promise, Trump
signed an executive order that put a pause on the funding on his second day in office. The order means that, for now, there will be no more funding for the hydrogen hubs program which was slated to have four phases over the course of a decade. The phased approach was designed by the federal government to ensure the award recipients make sure budgets and organizational structures were in place to execute the various projects.
Still, some remain optimistic on what the future holds for MACH2 like the U.S. Sen. Chris Coons (D-Delaware). He told DBT that he was glad to help secure the funding for the region that re-invests in America’s potential in manufacturing the next energy source.
“The newly signed cooperative agreement ensures the mid-Atlantic hydrogen hub that will spark investment and create high-paying jobs throughout the region will continue to proceed as scheduled,” he said. “I’m proud to have helped secure this transformative funding for our region that re-invests in American manufacturing, supports our energy security, and drives forward our innovation and global competitiveness.”
U.S. Sen. Lisa Blunt Rochester (D-Del.) also stressed how MACH2 and other hydrogen hubs would help the region stand out as the search continues to diversify energy sources - and those who buy in first would reap the benefits.
“It’s critical to our environment, our economy, and our competitiveness that investments in our clean energy future, including MACH2, can continue building out its infrastructure and create good-paying jobs right here in Delaware,” she said.
For now, the MACH2 proposal includes a network of nine hydrogen production projects for the use of heavy-duty transportation and industrial applications, like generating power and replacement fuel. That includes focusing on electrolyzer technologies as well as a methane facility to capture the 3% of methane from the hydrogen manufacturing process. In all, the coalition anticipates producing 370 metric tons per day of clean hydrogen through electrolysis. The proposal also includes building truck-loading facilities and serving the potential of hydrogen-powered vehicles.
All clean hydrogen production will come from renewable energy, nuclear energy, and capturing wastewater emissions, with no fossil fuel extraction, according to the coalition.
The MACH2 proposal was also ranked as the highest pro-union hub of the seven, as it stipulates that partners must negotiate project labor agreements when the project eventually enters the construction stage in phase three and four. A fact sheet about MACH2 also outlines that the partners in the hub must provide “access to a highly trained and unionized workforce” and target jobs for union apprenticeship programs in underrepresented communities.
Finally, MACH2 would also support a $10 million commitment to professional development at higher education programs as well as $1.5 billion in community benefits
Mila Myers, a spokeswoman for Gov. Matt Meyer, called the project a boon to the state’s economy, and looks forward to starting conversations with the communities as the planning process begins.
“We look forward to more collaboration with residents, advocates, workers and businesses to ensure this clean energy hydrogen hub comes to fruition,” Myles said. “With the potential to create over 20,000 jobs while also helping reduce energy costs and drive further technology adoption, the development of MACH2 is a win for Delaware and our region.”
