ARCHES and the Pacific Northwest Regional Hydrogen Hub (PNWH2) had both been selected for a combined $2.2bn, but funds were cut as part of a wider $7.5bn rollback, largely targeting projects in Democrat-leaning states.

ARCHES was due to receive $1.2bn from the DOE as part of the Biden Administration’s $8bn clean regional hydrogen hubs programme under the Bipartisan Infrastructure Law.

However, it announced yesterday (4 November) that it will “immediately pause hydrogen hub activities.”

Governor Gavin Newsom’s Office of Business and Economic Development (GO-Biz) and the University of California will assume “administrative oversight during the transition.”

ARCHES said in a press statement, “While this change reflects shifting federal investments, California remains firmly committed to developing a renewable hydrogen ecosystem as part of its broader clean energy transition.”

Last month, ARCHES criticised the decision to cancel funds, calling it a “short-sighted move that abandons America’s opportunity to lead the global energy transition.”

Later reports indicated that the DOE plans to terminate funding for all five remaining federally backed hydrogen hubs across states, including West Virginia, Texas, Ohio, Pennsylvania, and Minnesota.

The West Coast hubs focused primarily on renewable electricity-based hydrogen, while the remaining five centred on natural gas paired with carbon capture.

ARCHES planned to leverage California’s 16 green hydrogen projects, two blue hydrogen schemes, two existing hydrogen pipelines and vehicle refuelling infrastructure to establish 220,000 direct jobs.

The ARCHES pause marks another setback for US clean hydrogen.

President Donald Trump’s tax and spending bill, signed last July, shortened the 45V tax credit’s start-of-construction deadline from 2033 to 2027.

Industry analysts warn the shortened window may be too tight for developers after delays in finalising rules for the $3/kg incentive.