US Hydrogen Contracts on Hold, But Hubs Push Forward Amid Uncertainty

In a significant shift for America’s clean energy sector, President Trump’s executive order Unleashing American Energy, issued on Inauguration Day, has put a temporary freeze on funding, loans, and contracts for hydrogen and other renewable energy projects. This move comes at a critical juncture for the nation’s seven hydrogen hubs, which are only now gaining momentum after a prolonged start.

The Biden Administration previously committed $7 billion to advancing clean hydrogen, targeting high-carbon industries such as shipping, trucking, and ammonia production. While the future of hydrogen in the U.S. remains uncertain under the new administration, two hubs—the Mid-Atlantic Clean Hydrogen Hub (Mach2) and the Appalachian Hydrogen Hub (Arch2)—continue to make progress despite financial uncertainty.

Arch2 Presses Forward with Initial Funding

The Appalachian Hydrogen Hub (Arch2) has already secured $25 million in initial funding for Phase One, currently in development. While project leaders remain optimistic, the hub’s long-term success is contingent upon securing additional government contracts. In its first phase, Arch2 is focusing on planning, procurement, and permitting for large-scale industrial operations.

Arch2 is set to produce blue hydrogen using fracked natural gas sourced from Ohio, West Virginia, and Pennsylvania. The carbon emissions generated from this process will be captured and stored underground to mitigate environmental impact.

Energy experts note that it is unclear whether the new executive order applies to funding that has already been contractually committed. Given Trump’s emphasis on bolstering oil and gas production, funding priorities may shift toward these industries. However, Arch2’s strong ties to the natural gas sector could work in its favor. Hydrogen production relies heavily on natural gas extraction, meaning the hub could play a role in making fossil fuel-based energy cleaner while aligning with the administration’s energy strategy.

Mach2 Advances Despite Uncertainty

In January 2025, the Mid-Atlantic Clean Hydrogen Hub (Mach2) received $18.8 million in federal funding under the Biden Administration. This initial allocation is only a small portion of the $750 million earmarked by the Department of Energy (DOE) for the project, but the continuation of these funds remains uncertain.

With the first phase of Mach2 now underway, the newly allocated funds are being directed toward design and planning efforts. As the largest clean energy project in the Mid-Atlantic, stretching from South Jersey to Delaware, Mach2 plans to leverage existing pipeline infrastructure while also constructing new hydrogen production and storage facilities. In its second phase, the DOE was set to begin contract negotiations with partner companies, which were expected to provide matching private investments. However, details remain scarce in light of the new executive order.

One challenge facing Mach2 is the suspension of public engagement efforts. The DOE’s Office of Clean Energy Demonstrations had scheduled a webinar to discuss Phase One funding, but this was postponed indefinitely following the recent policy shift. Community engagement is critical, as hydrogen hubs face opposition from some groups concerned about safety risks, particularly explosion hazards. However, the Center for Hydrogen Safety emphasizes that hydrogen presents no greater danger than natural gas when handled properly. Rescheduling the webinar and addressing public concerns will be key to the hub’s continued progress.

A Pivotal Moment for Clean Energy

America’s transition to clean energy faces mounting challenges, with government contracts playing a pivotal role in determining the pace of progress. Despite financial uncertainties, hydrogen hubs such as Mach2 and Arch2 continue moving forward, showcasing the potential for a cleaner energy future. Whether these projects will secure long-term government backing remains to be seen, but their resilience signals that hydrogen could still play a major role in America’s evolving energy landscape.