DOE Awards $2.1B for Carbon Capture and Hydrogen Hub Projects

Major PPPs, Emissions Standards, and Infrastructure Goals Unveiled.

Jul 15, 2025

As part of the Bipartisan Infrastructure Law (IIJA) and DOE initiatives, over $2.1 billion has been allocated for carbon-related infrastructure and hydrogen hubs. These funds include:

Up to $2.2 billion for two Regional Clean Hydrogen Hubs:
- Gulf Coast H₂Hub – ~$1.2 billion
- Midwest H₂Hub – ~$1 billion
Carbon capture & transport infrastructure grants totaling roughly $2.1 billion under CIFIA (Carbon Dioxide Transportation Infrastructure Finance & Innovation)

1. Hydrogen Hub Projects

Gulf Coast Hydrogen Hub (“HyVelocity Hub”)

Federal grant: up to $1.2 billion (≈50% cost-share)
Location: Texas Gulf Coast
PPP leadership: HyVelocity (HyV) consortium — private sector energy producers, utilities, infrastructure operators
Scope & goals:
- Produce clean hydrogen via electrolysis (water + renewables) and natural gas with CCS
- Support regional decarbonization in sectors like chemicals and heavy transport
Performance metrics:
- Job creation: ~45,000 direct jobs over project lifespan
- Compliance with the DOE’s upcoming Clean Hydrogen Production Standard (≤ 4 kg CO₂e per kg H₂)

Midwest Hydrogen Hub (“MachH₂”)

Federal grant: up to $1 billion
Location: Illinois, Indiana, Iowa & Michigan
PPP leadership: Midwest Alliance for Clean Hydrogen LLC (MachH₂)
Scope & goals:
- Utilize wind, nuclear, and natural gas + CCS in hydrogen production
- Serve industries like steel, glass, refining, and transportation
Performance metrics:
- ~12,000 direct jobs
- Compliance with Clean Hydrogen Production Standard

2. Carbon Capture & Transportation Infrastructure

CIFIA Credit Program ($2.1 billion)

DOE is structuring a federal credit program (loans/loan guarantees) for CO₂ transport infrastructure (e.g., pipelines, shipping, rail)

Authorized funding: $600 M per year (FY 2022–23), then $300 M/year (FY 2024–26), totaling $2.1 billion
Leverage: Expected actual lending capacity ~$20 billion
Qualifying criteria:
- Transport systems for captured CO₂ (point-source or ambient)
- Infrastructure must be “physically connected” for minimum 20‑year utility
- Construction/completion within 5 years of award

Additionally, an earlier $500 million “Future Growth Grants” tranche supports oversizing CO₂ pipelines to accommodate future expansion.

3. Carbon Capture Test Facilities & Centers

The DOE’s Office of Fossil Energy and Carbon Management (FECM) announced $101 million for five carbon capture test center projects:

University of Illinois (cement industry test center)
Holcim US (Maryland cement facility innovation center)
Southern Company Services (National Carbon Capture Center)
UND Energy & Environmental Research Center (power plant condition testing)
University of Wyoming (integrated test center)

Purpose: Evaluate CO₂ capture, removal, and conversion technologies across industrial and power sectors
Measurement criteria: Demonstrated CO₂ capture rates, cost-effectiveness, scalability under real-world operational settings

4. Program Metrics, Standards & Qualifications

Across all initiatives, the DOE mandates several key performance measures:

Emissions standards:
- Clean hydrogen ≤ 4 kg CO₂e/kg H₂ lifecycle
- Carbon utilization products must show ≥ 10% lifecycle GHG reduction
Cost-share expectations:
- Typically up to 50% federal funding—remainder from state, private sector, or local sources
Construction and utilization timelines:
- Infrastructure: built within 5 years, used for at least 20
Job creation & economic impact:
- Detailed regional job estimates provided per project
Lifecycle assessments (LCA):
- Required for utilization grants and hydrogen standard compliance
Justice40 & community benefits:
- Emphasis on equity‑focused development and regional benefits

🌐 Public–Private Partnerships (PPPs)

These projects are deeply rooted in PPP frameworks:

HyVelocity & MachH₂ include private energy firms, grid operators, hydrogen off-takers, and transmission stakeholders.
CIFIA-backed infrastructure involves collaboration between developers, engineers, transport operators, and CO₂ emitters.
Test centers combine universities (Illinois, Wyoming, North Dakota) with major industrial players (Holcim, Southern Company).

All PPPs are structured to meet the DOE’s metrics for cost share, environmental benefit, community impact, and scalability.

📌 Outlook

Collectively, these grants aim to:

Catalyze commercial-scale carbon management infrastructure
Support industrial decarbonization in steel, cement, chemicals, power, and transport
Build clean hydrogen production capacity
Adhere to lifecycle emissions and equity standards
Create tens of thousands of direct, union-quality jobs

With such rigorous metrics—emission thresholds, economic commitments, timelines, equity provisions—the DOE’s $2.1 billion+ investment marks a decisive move toward embedding carbon capture and clean hydrogen in America’s energy future.

Jason Spiess is an multi-award-winning journalist, entrepreneur, producer and content consultant. Spiess, who began working in the media at age 10, has over 35 years of media experience in broadcasting, journalism, reporting and principal ownership in media companies. Spiess is currently the host of several newsmagazine programs that air across a 22 radio stations and podcasts worldwide through podcast platforms, as well as a combined Substack and social media audience of over 500K followers.

Connect with Spiess on LinkedIn

Everyday your story is being told by someone. Who is telling your story? Who are you telling your story to?

Email your sustainable story ideas, professional press releases or podcast submissions to thecontentcreationstudios(AT)gmail(DOT)com.

CLICK HERE FOR SPECIAL PARAMOUNT + DISCOUNT LINK