“California has led the nation with ambitious, innovative goals to combat the climate crisis, and today, we’re showcasing the promise of California’s renewable hydrogen-powered future,” said Senator Alex Padilla (D-Calif.). “From the ports, to our state’s population centers, to our rural communities, ARCHES will catalyze the clean hydrogen economy in California. I’m glad to have partnered with the Biden-Harris Administration to secure over $1 billion for ARCHES as we take a major step toward achieving our state’s ambitious carbon neutrality goals.”

“Today’s launch marks a transformative moment for California’s clean energy future,” said Angelina Galiteva, CEO of ARCHES. “ARCHES is excited and honored to accelerate California’s hydrogen journey, driving innovative projects that will not only establish a thriving clean hydrogen ecosystem but also enable us to decarbonize all sectors of the economy while creating lasting economic, air quality, and environmental benefits for all Californians.”

Why it’s important

• Cuts up to 2 million metric tons of carbon emissions every year – equivalent to the pollution of 445,000 gasoline-powered cars annually;
• Creates an estimated 220,000 new jobs, including 130,000 in construction and 90,000 permanent jobs;
• Estimated $2.95 billion per year in economic value from better health and health cost savings;
• At least 40% of the benefits from projects will flow to disadvantaged communities through community directed investments, workforce training, and family supporting jobs.

How we got here 

• California released the world’s first plan to achieve net-zero carbon pollution, which will utilize hydrogen to cut pollution and ramp up clean energy;
• Governor Newsom directed GO-Biz to develop California’s Hydrogen Market Development Strategy, employing an all-of-government approach to building up California’s clean, renewable hydrogen market;
• California submitted an application in April 2023 through the Alliance for Renewable Clean Hydrogen Energy Systems (ARCHES), a statewide public-private partnership to build the framework for California’s renewable, clean hydrogen hub.

The $12.6 billion agreement signed in July includes up to $1.2 billion in federal funding from the federal Bipartisan Infrastructure Law.