In October 2023, President Joe Biden and public officials from across Pennsylvania visited Philadelphia to announce a $7 billion federal investment in America's first Clean Hydrogen Hubs. One of the seven hubs selected was the Mid-Atlantic Clean Hydrogen Hub (MACH2).
As part of the MACH2 initiative, PGW has partnered with the City of Philadelphia, local unions, industry leaders, educational institutions, and regional organizations to create a robust hydrogen ecosystem connecting producers and consumers across Delaware, Southern New Jersey, and Southeastern Pennsylvania.
Backed by a $750 million federal grant, the MACH2 consortium will unlock an estimated $3 billion in total regional investment. This transformative funding is expected to create and retain between 13,000 and 20,000 well-paying jobs, catalyzing a new regional economy rooted in clean energy and low-carbon innovation.
"Given its potential to help address the climate crisis, enhance energy security and resilience, and create economic value, interest in producing and using clean hydrogen is intensifying both in the United States and abroad. Zero- and low-carbon hydrogen is a key part of a comprehensive portfolio of solutions to achieve a sustainable and equitable clean energy future."- U.S. Department of Energy
The Role of Clean Hydrogen
Clean hydrogen offers a wide range of benefits and potential uses:
- Can deliver up to 10% in economy-wide emissions reductions by 2050
- Projected to create 100,000 jobs by 2030
- Plays a vital role in decarbonizing energy systems
While natural gas remains the cleanest fossil fuel, blending it with decarbonized gases like hydrogen can further accelerate progress toward carbon neutrality. Hydrogen is a lightweight, versatile fuel that can be extracted from natural gas and blended into existing natural gas distribution systems to help meet local energy needs.
Moreover, hydrogen’s emissions can be captured and reused to power wind turbines, gas turbines, or other forms of clean energy infrastructure, further reducing the carbon footprint.
Most hydrogen today is produced via steam-methane reforming, a process that uses high-temperature steam to extract hydrogen from natural gas. While this method requires substantial investment and infrastructure, it has the potential to significantly cut greenhouse gas emissions if paired with carbon capture and other clean technologies.
President Biden committed the United States to the following carbon reduction targets:
- 50% reduction in economy-wide net greenhouse gas emissions by 2030 (from 2005 levels)
- 100% carbon pollution-free electricity by 2035
- Net-zero carbon emissions across the economy by 2050