• 5 MIN READ

How Hydrogen Hubs Will Support Jobs

Applications for the Regional Clean Hydrogen Hubs (H2Hubs) program are due today, April 7, marking the start of proposal review after months of activity at the state and regional levels. This fall, the US Department of Energy (DOE) will select six to 10 hydrogen hubs that will provide the connective tissue for a national clean hydrogen network. Linking hydrogen producers with consumers and associated infrastructure, these hubs are an innovative chance to generate jobs and economic opportunities for communities and businesses around the country.  

Sometimes called the “Swiss Army Knife” of climate solutions, hydrogen is a molecule with the potential to replace conventional fuels in many fossil-intensive processes. Most hydrogen today is produced from natural gas or coal and used in industries like refining and fertilizer production. Producing cleaner hydrogen has the potential to cut emissions from a wide variety of heavy-duty industrial processes like steel and ammonia production. Cleaner hydrogen can also cut emissions for hard-to-decarbonize areas of transportation, such as aviation, marine shipping, and long-distance trucking, where few other low-carbon alternatives exist.  

The use of clean hydrogen in traditionally fossil-heavy industries that are difficult to electrify could reduce total US emissions by 10 percent by 2050, according to US DOE. Accelerating low-carbon hydrogen production and use at the scale necessary to reach this milestone will undoubtedly necessitate the creation of new jobs. A workforce will be essential to support the production, consumption, and connecting infrastructure of a hub and the transition to clean hydrogen in heavy industry and transportation. The scale of this transition is massive. The development of these projects, from initial planning to full-scale operation, will take years of coordinated effort across all stakeholders.  

As hub consortia prepare for the possibility of a clean hydrogen hub in their region, they must bring all stakeholders to the table and meaningfully involve local communities and organized labor in shaping the future of this clean hydrogen workforce. The present opportunity – to shape a hydrogen future built on meaningful workforce and community engagement – is too important to fail. 

For its part, DOE can support the development of a clean hydrogen economy that centers high-quality, family-sustaining jobs by ensuring that the federal investments made through the H2Hubs program include concrete labor standards, including putting workers at the center of the equitable transition to new forms of energy production.  

Building a community benefits plan 

With the H2Hubs Program, DOE is funding a vision put in place over a year ago by the Bipartisan Infrastructure Law. H2Hubs is the department’s largest-ever demonstration program. Selection will hinge on projects that achieve the program’s set guidelines, including demonstrating a variety of feedstocks and end-uses. Ultimately, the program will create a network of regional clean hydrogen production, processing, delivery, storage, and end-use facilities geographically distributed across the United States. 

Under the program, hub applicants must also prepare a Community Benefits Plan (CBP). The plan must describe how the proposed hub will incorporate community and labor engagement, workforce development, diversity, equity, inclusion, and accessibility, and the federal Justice40 Initiative. CBPs are key to outlining how a project will bring meaningful and intentional support to communities and workforce development. DOE has published guidance to help applicants structure these plans, which make up 20 percent of the technical review criteria for full applications. Other criteria factors include technical merit and impact, financial and market viability, an H2Hubs workplan, and a management team and project partners.  

If supported by strong CBPs, hubs can connect the future of hydrogen in the United States with the organized labor movement. Concrete labor standards will be crucial to the program’s success.   

Working with labor and frontline communities 

As the decision-maker and program overseer, DOE can facilitate the connection between Organized labor and project developers by prioritizing applicants with concrete labor standards and a willingness to create high-quality, family-sustaining union jobs. A group of lawmakers have previously expressed the need for DOE to fill this role.  

In early March, the Texas Democratic Congressional Delegation led by US Congressman Joaquin Castro sent a letter urging DOE to prioritize high-quality, good-paying union jobs in Texas with federal hydrogen hubs funding. In the letter, lawmakers outlined opportunities for the H2Hubs program to ensure robust labor practices that strengthen the economic success of a project. 

Project developers have their own crucial role to play. Developers should have a plan to work with local labor groups and develop considerations that protect workers, such as:  

  • Written confirmation that H2Hubs will be a source of high-quality, family-sustaining jobs, (including medical benefits and pensions) within the hub’s locality; 
  • Signed Community Workforce Agreements with participating labor organizations and frontline community groups; 
  • Written Labor Peace Agreements for all operations and maintenance employees as they decide whether to form a union; 
  • Written plans for existing fossil fuel workers to transition into comparable hydrogen jobs.  

The Bipartisan Infrastructure Law’s H2Hubs program presents a key opportunity to both reduce carbon emissions and support the future of the workforce critical to enabling this clean energy transition. The Inflation Reduction Act passed last year included an additional opportunity to ensure domestic hydrogen production is aligned with workforce development. The law included a production tax credit awarded based on the amount of greenhouse gas emissions from producing hydrogen. Hydrogen produced with the lowest emissions qualifies for the greatest credit value. Producers are eligible for up to five times the base credit value, should prevailing wage and apprenticeship requirements be met. This marks one of the many ways the government can incentivize worker benefits and ongoing training for the jobs that will form the backbone of the hydrogen economy.  

Importance of place

As the next few months of decision-making around H2Hubs unfold, transparency and coordination around the intentional engagement of labor and community voices will be key to standing up durable projects. DOE sent letters of encouragement to 33 hub partnership applicants to submit a full application by DOE’s April 7 deadline, spanning every region of the country. 

Map of US hydrogen production by sector (Elizabeth Abramson and Dane McFarlane, Carbon Solutions, February 6, 2023)

Due to the diversity of geography and end use for each hub selection, the local hydrogen workforce for each project will vary on union density, workforce demographics, benefits expectations, workforce development and training, and prevailing wages. H2Hubs can make use of local union apprenticeship programs, community-based organizations, and existing state efforts and relationships with labor, communities, colleges, and universities to support a hydrogen economy in their region.  

As states develop their hydrogen economy and workforce, public and private sector partners can consider best practices for labor and workforce engagement, to ensure that the transition to hydrogen centers long-term workforce investment and includes disadvantaged communities in the buildout of a national hydrogen economy.  

Keep up to date with future announcements and hydrogen news by signing up for the Industrial Innovation Initiative and the Carbon Action Alliance’s monthly newsletters. 

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Labor Engagement Manager for Industrial Innovation and Carbon Management, GPI

Alejandro comes to GPI from Labor Union SEIU-United Service Workers West. He represented union workers from downtown Los Angeles and LA’s westside corridor of Century City, Westwood, and Beverly Hills. Alejandro enforced various collective bargaining agreements for union workers, ensuring annual wage increases, health insurance, and other benefits and protections. In addition, he worked with union leaders and outside stakeholders, such as community partners, public agencies, politicians, and industry experts, to develop and execute union campaigns. Alejandro was also part of the Los Angeles-Justice for Janitors 2021 union contract campaign—he helped execute and coordinate large-scale actions across LA’s metropolitan area. Previously, he served as the Nevada state canvassing director at For Our Future Action Fund. He holds a BA in international studies and Italian from the University of Kansas.

Senior Program Coordinator for Industrial Innovation and Carbon Management, GPI

Carrie Danner joined the Great Plains Institute in 2023 and serves as the operations coordinator for the Industrial Innovation and Carbon Management team. In her work, she supports all projects within the program to elevate operations, particularly in grant-making and event planning. Carrie earned a bachelor’s degree from Knox College in environmental studies. Prior to joining GPI, she supported programs at the Conservation Corps of Minnesota & Iowa as their member experience administrator.

Industry Program Coordinator, GPI

Alana joined GPI in 2024 as a program associate on the Industrial Innovation and Carbon Management team, specifically supporting the Industrial Innovation Initiative, where she helps to advance industrial decarbonization through GPI’s consensus-building approach. Alana previously worked as an account executive at Jamf, where she helped current K-12 education customers improve and scale the management and security of their Apple device deployments. Alana has spent most of her professional years working with Minnesota nonprofits, including two years as an AmeriCorps member with Twin Cities Habitat for Humanity. She holds a bachelor’s degree in community environmental studies from the University of Wisconsin-Eau Claire.

Zachary Byrum, Research Analyst, WRI

Zachary Byrum is a Research Analyst in WRI's U.S. Climate Program, where he provides technology and policy analysis for carbon removal and deep decarbonization. His work focuses on pathways to reduce industrial emissions as well as bolstering technological carbon removal. Prior to WRI, Zach was a research assistant in the Carbon Management Research Initiative at the Center on Global Energy Policy. In the preceding years, he served as White House Intern in the National Economic Council under the Obama Administration and then an assistant analyst at the Congressional Budget Office. Zach holds a Master of Public Administration in Environmental Science and Policy from the School of International and Public Affairs at Columbia University and a B.A. in Economics and Political Science from Goucher College.

Senior Advisor of Industrial Innovation, WRI United States

Angela Anderson is the Director of Industrial Innovation and Carbon Removal in the Climate Program. She leads WRI's growing portfolio of work in industrial decarbonization and carbon removal and aims to change narratives around “hard-to-abate” sectors and promote the natural and technological interventions required to achieve net-zero targets. Prior to joining WRI, Angela worked as a program director, coalition builder, international advocate, and campaign strategist. She led the Climate and Energy Program at the Union of Concerned Scientists for ten years; facilitated US-NGO engagement in the international climate negotiations while at US Climate Action Network and at the Pew Environmental Trust; and founded Clear the Air, a national coalition to reduce pollution from power plants. Angela holds a B.A. in political science from Colorado State University.

Vice President of Industrial Innovation and Carbon Management, GPI

Patrice Lahlum is the Vice President of the Industrial Innovation and Carbon Management program at the Great Plains Institute. The Institute, headquartered in Minneapolis, MN, works with diverse stakeholders and communities across the country to transform the energy system to benefit people, the economy, and the environment. We strive to combine our unique consensus-building approach, expert knowledge and analysis, and local action to promote solutions that strengthen communities, shore up the nation’s industrial base, and enhance domestic energy independence, all while eliminating carbon emissions. Patrice oversees several initiatives, including the Carbon Capture Coalition, Industrial Innovation Initiative, Carbon Action Alliance, and the Regional Carbon Capture Deployment Initiative.

Senior Content Specialist for Industrial Innovation and Carbon Management, GPI

Kate Sullivan joined the Great Plains Institute in 2019. As Senior Content Specialist, Kate uses her analytical and design skills to provide research, writing, and logistical support across the Industrial Innovation and Carbon Management team. Prior to joining GPI, Kate worked as an Energy Counselor in the Center for Energy and Environment’s residential department, assisting homeowners with their energy needs and providing resources for efficiency upgrades. Kate earned her BA in Biology from St. Olaf College with an emphasis in Environmental Studies.

Senior Program Manager for Industrial Innovation and Carbon Management, GPI

Jill Syvrud joined the Great Plains Institute in 2017 and serves as the program manager for the Industrial Innovation and Carbon Management Program. In addition to overseeing the overall program, Jill directly supports the Industrial Innovation Initiative, a coalition advancing decarbonization solutions for the Midcontinent region’s most important industrial sectors. Jill earned a bachelor of science in biology from the University of Wisconsin–Eau Claire and a master of science degree in science technology and environmental policy from the University of Minnesota’s Humphrey School of Public Affairs. Jill’s past experience includes multiple graduate research assistantships concentrating on technology innovation and sustainable megacities, as well as a previous position as an administrative and outreach coordination intern with the Midwest Renewable Energy Association.