In an effort to reassure stakeholders, FPH2 said private-sector hydrogen suppliers and end-users were continuing projects despite federal funds being cancelled.

The statement comes after the Alliance for Renewable Clean Hydrogen Energy Systems (ARCHES) puts its plans to build a clean hydrogen hub in California on ice, following the Department of Energy’s (DOE) termination of funding for the scheme.

ARCHES had been set to receive $1.2bn from the Bipartisan Infrastructure Law to support projects aimed at building up clean hydrogen supply and demand.

The DOE axed the funding as part of a $7.5bn clean energy rollback, which the administration said was intended to reduce public spending and refocus on fossil fuel production.

As a result, ARCHES said it would “immediately pause hydrogen hub activities,” with Governor Gavin Newsom’s Office for Business and Economic Development taking over administrative oversight.

Founded in 2024 by the Cities of Lancaster and Industry, FPH2 aims to link up green hydrogen production and use, and had been set to work with several ARCHES players.

In the wake of ARCHES’ suspension, it sought to reassure stakeholders.

The utility claimed its recent hydrogen supply solicitation drew a “broad range of hydrogen suppliers” – albeit before the ARCHES pause – and port officials were “unwaveringly pursuing” new hydrogen solutions.

“Despite some changes with federal energy policy, we see strong and consistent public and private sector investment in the hydrogen economy in California,” the statement read.

However, FPH2 will face tough challenges.

Aside from the hub funding, 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 – potentially limiting the depth of projects that could be built with tax support.

With federal backing uncertain, California’s hydrogen ambitions may depend increasingly on local and private-sector resolve.