Governor Gavin Newsom has directed the Governor’s Office of Business and Economic Development (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. It will closely resemble the Zero-Emission Vehicle Market Development Strategy to help California collectively move forward and deliver zero-emission benefits to all Californians.

“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.”

WHY IT’S NEEDED: 

• Expanding the market for clean, renewable hydrogen is key to achieving California’s climate goals – especially for a clean electric grid, net-zero carbon emissions, and drastically cutting air pollution.
• California is currently competing to become a federally funded Hydrogen Hub, a program that will leverage $8 billion from the Bipartisan Infrastructure Law to establish at least four Hydrogen Hubs across the United States.

WHAT IT WILL DO:

• Create a market development strategy that is focused on leveraging hydrogen to accelerate clean energy deployment and decarbonizing our transportation and industrial sectors;
• Build on our 2022 Scoping Plan while leveraging the upcoming SB 1075 hydrogen report and ARCHES’ cross sector, multi-stakeholder hydrogen market white papers;
• Developed in consultation with state agencies – including the California Air Resources Board, the California Energy Commission, and the California Public Utilities Commission – while clearly defining agencies’ roles and responsibilities;
• Identify shared strategies to deliver projects, which may include new financing models, permitting modifications, and procurement initiatives;
• Engage relevant stakeholders, including local communities, to advance equity and deliver environmental and economic benefits;
• Ensure state agencies and partners continue to pull in a shared direction to accelerate the use of renewable energy throughout our economy and increase the resilience and reliability of our energy system.

HOW WE GOT HERE: This initiative builds on the Governor’s executive order to create an Infrastructure Strike Team to streamline projects throughout the state. The Hydrogen Strategy will be one outcome of the Infrastructure Strike Team’s hydrogen, clean energy, transportation, and zero-emission vehicle workgroups.

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 organized to create an economically sustainable, multi-sector, renewable hydrogen ecosystem that directly benefits California’s communities.

WHAT THEY’RE SAYING: 

• “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,” said ARCHES CEO Angelina Galiteva. “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.”

Governor Newsom Announces New Strategy to Develop a Hydrogen Economy of the Future, Sacramento, August 8, 2023