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California’s ARCHES Hydrogen Hub an opportunity for industries with big ESG goals

A new hydrogen hub supports businesses with ambitious ESG objectives.

Q4 2024

Business leaders in industries with ambitious environmental, social, and governance (ESG) goals, but that face significant challenges transitioning to clean energy, need to monitor the development of the California Alliance for Renewable Clean Hydrogen Energy Systems, or ARCHES, Hydrogen Hub.

The ARCHES hub, one of seven hydrogen hub sites selected for federal funding under the U.S. Department of Energy’s $7 billion H2Hubs initiative, is designed to scale the production and use of green hydrogen so energy-intensive industries struggling to electrify can decarbonize. Other hubs are planned for regions across the U.S., including the Gulf Coast, Midwest, and Pacific Northwest.

A realistic path to decarbonization
Hydrogen is a potential energy source for industries trying to reduce carbon emissions. Sectors like steel manufacturing, aviation, and long-haul transport — known for their high energy demand and reliance on fossil fuels — can now use green hydrogen, which is produced through electrolysis powered by solar, wind, or other renewable energy sources. Green hydrogen emits zero carbon, making it a critical component of any company’s decarbonization strategy. Integrating green hydrogen into industrial operations is not just about regulatory compliance — it also provides a competitive edge. As global markets increasingly prioritize sustainability, companies with access to clean energy will be better positioned to meet consumer and investor expectations.

165 miles

- the length of open-access hydrogen pipelines are planned for California.

“The Department of Energy’s announcement to fund ARCHES is a monumental step forward in the state’s efforts to achieve its air quality, climate, and energy goals, while improving the health and wellbeing of Californians and creating new green jobs across the state,” said ARCHES CEO Angelina Galiteva in a news release from Gov. Gavin Newsom’s office.

The ARCHES Hydrogen Hub could mark a turning point for business leaders in steel, chemicals, and other sectors.

Site selection considerations: Infrastructure and incentives
The ARCHES hub brings significant advantages from a site-selection perspective. Companies trying to reduce their carbon footprint and future-proof their operations will benefit from the hydrogen infrastructure under development in California. ARCHES plans to build 165 miles of open-access pipelines and 60 fueling stations to make hydrogen accessible and cost-effective for large-scale industrial use.

California’s commitment to hydrogen energy also comes with substantial financial incentives for businesses. State and federal grants, as well as clean energy investment programs, will make it economically feasible for companies to adopt hydrogen technology as part of their California facility expansion or relocation plans.

In industries where transitioning to renewable energy has historically been difficult or expensive, being near a hydrogen hub like ARCHES ensures companies can capitalize on cutting-edge energy solutions that align with their long-term sustainability and profitability goals.

60

– the number of fueling stations that will make hydrogen accessible for industrial use.

Long-term workforce benefits
In addition to immediate access to energy, businesses that locate near the ARCHES Hydrogen Hub will benefit from California’s workforce development programs. The state is investing in specialized training for workers skilled in hydrogen technologies, creating a labor pool ready to manage the unique demands of hydrogen-powered operations.

“We are eager to put Californians to work building the future — a future powered by clean, renewable hydrogen that benefits all of California’s residents,” said Dee Dee Myers, GO-Biz director, senior advisor to Newsom, and founding ARCHES board member, in an ARCHES news release.

Hydrogen is a tangible solution to the energy transition challenges that have historically hindered progress in these industries.

Why industry leaders should pay attention
The ARCHES Hydrogen Hub could mark a turning point for business leaders in steel, chemicals, heavy-duty transport, and other sectors with high energy demands and ambitious ESG goals. Hydrogen is a tangible solution to the energy transition challenges that have historically hindered progress in these industries.

With California’s investment in hydrogen infrastructure and technology, companies that position themselves near the ARCHES hub can decarbonize, lower long-term energy costs, and gain access to valuable financial incentives and workforce expertise.

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