Industry News

Governor Newsom reveals strategy to develop a hydrogen economy within California

by | Aug 11, 2023

The Governor’s Office of Business and Economic Development (GO-Biz) has been directed by Governor Gavin Newsom to develop California’s Hydrogen Market Development Strategy, by utilizing an “all-of-government approach” to bolster California’s clean, renewable hydrogen market.

“California is all in on clean, renewable hydrogen – an essential aspect of how we’ll power our future and cut pollution,” said Governor Newsom. “This strategy will lay out the pathway for building a robust hydrogen market to help us fully embrace this source of clean energy.”

The renewable hydrogen market is viewed as key to achieving California’s climate goals, in terms of establishing a clean electric grid, achieving net-zero carbon emissions and significantly reducing air pollution. At present, California competing to become a federally funded Hydrogen Hub, a program that will use U$8bn from the Bipartisan Infrastructure Law to construct a minimum of four Hydrogen Hubs in the USA.

The development strategy will leverage hydrogen to accelerate clean energy deployment while also decarbonizing the state’s transportation and industrial sectors. The strategy will also be developed in consultation with state agencies – including the California Air Resources Board, the California Energy Commission, and the California Public Utilities Commission. It will also ensure that state agencies and partners work in alignment to accelerate the use of renewable energy throughout California’s economy, while simultaneously increasing increase the resilience and reliability of the state’s energy system.

California’s application for this federal funding was led and submitted by California’s Alliance for Renewable Clean Hydrogen Energy Systems (ARCHES), a public/private partnership formed to create a renewable hydrogen ecosystem that benefits the Californian region.

“As a founding member of ARCHES, GO-Biz is eager to work with all stakeholders to create California’s first-ever Hydrogen Market Development Strategy,” said Dee Dee Myers, senior advisor to the governor and director of GO-Biz. “Hydrogen has tremendous potential to not only grow our economy but also clean our air, create family supporting jobs, and lead the nation’s clean energy transition. The ARCHES model provides an incredible opportunity to accelerate this market and drive down cost for everyone—while unlocking critical community benefits.”

“ARCHES was structured to enable and deliver a clean renewable hydrogen energy system in California and beyond,” added Angelina Galiteva, CEO, ARCHES. “Governor Newsom’s all-of-government approach to accelerating the hydrogen market is exactly what we need to deliver for California and the nation. ARCHES is fully committed to continuing to work hand in hand with GO-Biz and our broad coalition of partners to accelerate California’s transition to a carbon free economy.”

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