America’s Hydrogen Revolution Stalls Amid Funding Cuts and Weak Demand

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Just a few years ago, the United States was developing new hydrogen hubs to support energy diversification and help achieve a green transition. However, the development of these…

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Felicity Bradstock is a writer and journalist based in Mexico City. She writes for energy websites and covers several other industries, as well as writing…

Just a few years ago, the United States was developing new hydrogen hubs to support energy diversification and help achieve a green transition. However, the development of these fuel hubs has not proceeded as expected, with several major projects stalling and political support faltering.

The Biden administration showed broad support for hydrogen production, aiming to massively expand the sector and advance green hydrogen development. In November 2024, the Biden administration announced up to $2.2 billion in award commitments for two Regional Clean Hydrogen Hubs (H2Hubs) – the Gulf Coast H2Hub in Texas and the Midwest H2Hub in Illinois, Indiana, Iowa, and Michigan, out of a total of $7 billion in federal funding for seven H2Hubs.

Hydrogen can be used for a wide range of applications and, under Biden, was seen as having the potential to decarbonise hard-to-abate industries, such as shipping and steel production. Several countries around the globe began to rapidly expand their hydrogen industries about half a decade ago, with a particular focus on zero-carbon green hydrogen.

One of the H2Hubs being developed – the Mid-Atlantic Regional Hydrogen Hub (MACH2) – was in Philadelphia, which was expected to become an important region for energy diversification. The Appalachian Hydrogen Hub (ARCH2), meanwhile, is based in West Virginia and covers parts of West Virginia, Ohio, and Pennsylvania. In 2023, Pennsylvania Governor Josh Shapiro said the hubs would “ensure Pennsylvania continues to be an energy leader for decades to come.”

MACH2 was expected to support the development of more than 20,000 jobs in the Delaware Valley region and help the U.S.

However, under the Trump administration, progress has stalled amid funding uncertainties.

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