GFO-23-307 – Large-Scale Centralized Clean Hydrogen Production (H2CENTRAL)

Hydrogen can serve as a zero-carbon energy carrier and act as a potential replacement for fossil fuels in hard-to-electrify applications, particularly for the transportation, industrial, and electricity generation sectors. For the purposes of this solicitation, clean hydrogen is defined as hydrogen produced from water using eligible renewable energy resources, as defined in Public Utilities Code 399.12, or produced from these eligible renewable energy resources. To achieve sustainable wide-scale deployment, hydrogen must be produced cleanly at increased scale and reduced cost. This solicitation aims to reduce the cost burden of clean hydrogen production through large-scale, centralized production coupled with storage, delivery, and pre-determined offtakers to support a comprehensive hydrogen value chain. Expected outcomes include the development and deployment of low-carbon, cost-competitive hydrogen production from renewable energy sources and reduced greenhouse gas (GHG) emissions in hard-to-electrify sectors.   The 2022 California Air Resources Board (CARB) Scoping Plan estimates that by 2045, demand for low-carbon hydrogen increases nearly two-fold the current levels of fossil hydrogen – or a 1,700-fold increase in existing low-carbon hydrogen supply – especially to support emerging end uses such as heavy-duty vehicles, power generation, industrial process heat, and synthetic fuels for aviation. Hydrogen produced from water using renewable energy resources or produced directly from renewable energy resources can provide low-carbon energy and act as an alternative to fossil gas, helping meet California's GHG reduction goals of 40 percent below 1990 levels by 2030 and carbon neutrality by 2045.