The Trump administration has eliminated $1 billion in federal funding previously awarded to the Pacific Northwest Hydrogen Association (PNWH2), dealing a major blow to regional clean energy development efforts. The multi-state hydrogen hub, encompassing Washington, Oregon, Idaho and Montana, was one of seven projects selected by the Department of Energy two years ago to advance hydrogen fuel
technology.
The initiative aimed to establish a hydrogen-based economy,
particularly targeting emissions-heavy industries like steel manufacturing, cement production, and long-haul transportation. Washington Senator Maria Cantwell condemned the decision, stating it would eliminate over 10,000 predominantly rural jobs and describing the move as “unprecedented and corrupt.”
The Department of Energy defended its decision to cancel funding, claiming the affected projects failed to advance national energy priorities, lacked economic viability, and wouldn’t provide adequate returns on taxpayer investments. The cancellations primarily impacted blue-leaning states, including California, Oregon, Colorado, and several northeastern states.
Beyond the hydrogen hub, Washington state saw numerous other projects lose funding, including $46.6 million for Nippon Dynawave in Cowlitz County, $68 million for PACCAR projects in Skagit County, and various smaller initiatives across multiple counties. Recipients have been given 30 days to appeal the cancellations, with some already beginning that process.
Washington Governor Bob Ferguson vowed to challenge the decision, calling it illegal and emphasizing the projects’ potential benefits for job creation and pollution reduction. The state has been home to several hydrogen technology ventures, including PACCAR’s development of hydrogen fuel cell trucks, Modern Hydrogen’s methane-based hydrogen production, and various other innovative companies in the sector.
The clean hydrogen production process involves using electrolysis to split water into hydrogen and oxygen, requiring clean energy sources like solar, wind, or hydroelectric power to maintain environmental benefits. This differs from traditional hydrogen production methods using methane, which typically result in higher emissions.
Despite the setback, Chris Green, president of the Pacific Northwest Hydrogen Association, expressed optimism about the sector’s future, noting that partnerships and infrastructure developments over the past year have created “lasting momentum” for hydrogen energy advancement.
The cancellation affects other major hydrogen hubs across the country, including projects in California, Appalachia, Texas, the MidAtlantic, the Midwest, and a hub connecting Minnesota with North and South Dakota. Russ Vought, director of the U.S. Office of Management and Budget, characterized the cancellations as eliminating “Green New Scam funding.”
The decision impacts various Washington-based companies working with hydrogen technologies, including partnerships between major tech companies like Amazon and Microsoft with hydrogen fuel cell providers, and innovative startups developing various hydrogen-based solutions for transportation and industrial applications.