Top 10 Blue Hydrogen Projects in the US After $7.5 B in Cuts to Partners Like ARCHES (2024-2026)

The U.S. hydrogen landscape has been decisively reshaped by policy shifts throughout 2025, with federal funding now heavily favoring blue hydrogen projects that use natural gas with carbon capture. This pivot is evidenced by the cancellation of over $7.5 billion in awards, which primarily impacted green hydrogen hubs in Democratic-leaning states, including California’s ARCHES and the Pacific Northwest Hydrogen Hub. Conversely, hubs centered on fossil-based production, such as Hy Velocity Gulf Coast and ARCH 2 in Appalachia, have retained their funding, with approximately $4.8 billion now earmarked for projects focused on natural gas with CCUS. The dominant theme emerging from 2025 is a strategic realignment of federal support towards leveraging existing fossil fuel infrastructure, signaling a more pragmatic, albeit contentious, pathway to a scaled hydrogen economy.

1. Hy Velocity Gulf Coast Hydrogen Hub

Company: Hy Velocity (Exxon Mobil, Chevron, Air Liquide, Ørsted)
Capacity: Up to $1.2 billion in federal funding
Applications: Large-scale industrial decarbonization, leveraging existing natural gas infrastructure.
Source: Remaining US hydrogen hub funding expected to survive DOE review

2. Appalachian Regional Clean Hydrogen Hub (ARCH 2)

Company: Battelle, EQT Corporation, GTI Energy
Capacity: Up to $925 million in federal funding
Applications: Production of low-cost clean hydrogen from natural gas for regional industrial use.
Source: Agreement Reached to Build Appalachian Regional Clean … – Battelle

3. Midwest Alliance for Clean Hydrogen (Mach H 2)

Company: Midwest Alliance for Clean Hydrogen
Capacity: Up to $1 billion in federal funding
Applications: Decarbonization of steel, glass production, and heavy-duty transportation using diverse energy sources.
Source: Governor Whitmer Announces $22.2 Million to Advance Michigan …

4. Heartland Hydrogen Hub

Company: Williams, Xcel Energy, Marathon Petroleum
Capacity: Up to $925 million in federal funding
Applications: Utilizing natural gas resources and existing infrastructure for CO 2 storage.
Source: United States | Global Hydrogen Policy Tracker

5. Alliance for Renewable Clean Hydrogen Energy Systems (ARCHES)

Company: State of California
Capacity: Original $1.2 billion award (Federal funding canceled)
Applications: Green hydrogen for transportation and industry, now reliant on state and private funds.
Source: ARCHES CEO Angelina Galiteva on DOE’s decision to cut federal …

6. Pacific Northwest Hydrogen Hub (PNW H 2)

Company: Pacific Northwest Hydrogen Association
Capacity: Original $1 billion award (Federal funding canceled)
Applications: Green hydrogen production exclusively from renewable energy sources.
Source: Pacific Northwest hydrogen hub loses $1 B in Trump funding cuts

7. Mid-Atlantic Clean Hydrogen Hub (MACH 2)

Company: Air Liquide, Du Pont
Capacity: Original $750 million award (Federal funding canceled)
Applications: Production from a mix of nuclear and renewable power sources.
Source: MACH 2 hydrogen hub: Report says funding could be cut – WHYY

8. Exxon Mobil Baytown Blue Hydrogen Project

Company: Exxon Mobil
Capacity: Approximately 1 million metric tons per year
Applications: Large-scale private production of blue hydrogen for industrial offtake.
Source: Growing Low Carbon Solutions | Exxon Mobil Sustainability

9. Duke Energy Cherokee Nuclear Station Hydrogen Plant

Company: Duke Energy
Capacity: 1.4 GW power plant
Applications: Power generation using a blend of natural gas and hydrogen, integrated with nuclear power.
Source: Duke Energy Advances New 1.4-GW Gas-Hydrogen Power Plant in …

10. Plug Power Graham, Texas Plant

Company: Plug Power
Capacity: 15 tons of liquid green hydrogen per day
Applications: Supplying fuel for corporate logistics fleets, including for Walmart and Amazon.
Source: Gulf States Lead the Charge in U.S. Hydrogen Transition – FCHEA

Table: Top 10 U.S. Hydrogen Projects (May 2026 Status)

Industrial & Power Gen Applications, Duke Energy’s 1.4 GW Plant

The applications for hydrogen are bifurcating along technology lines. The federally funded hubs like Hy Velocity and ARCH 2, along with private giants like Exxon Mobil, are focused on producing blue hydrogen for hard-to-abate industrial sectors such as refining and chemicals. This strategy leverages existing demand and infrastructure. Meanwhile, other projects highlight different end-uses. The Duke Energy project in South Carolina, a planned 1.4 GW plant, demonstrates a utility-led push to use hydrogen blends for power generation. In contrast, Plug Power’s Texas facility is producing green hydrogen specifically for the logistics and transportation sector, with offtake agreements from corporate partners like Walmart. The cancellation of funding for green-focused hubs suggests that applications like wide-scale green mobility and industry are, for now, taking a backseat to industrial-scale blue hydrogen from a federal perspective.

Hydrogen Hubs Target Diverse End-Uses

This table details the intended applications for hydrogen across the hubs, including industry, transportation, and power. It supports the section’s discussion of bifurcating end-uses, from industrial decarbonization to utility-scale power generation.

(Source: CSIS)

US Gulf Coast vs. West Coast, Hy Velocity Retains $1.2 B Funding

A sharp geographical realignment is underway. The Gulf Coast (Texas, Louisiana), home to the Hy Velocity hub, and Appalachia (West Virginia, Ohio, Pennsylvania), home to ARCH 2, are now the clear epicenters of federally-backed hydrogen development. This concentration of resources is due to their vast natural gas reserves, extensive pipeline networks, and geological formations suitable for carbon sequestration. In stark contrast, the West Coast—specifically California’s ARCHES and the Pacific Northwest Hydrogen Hub—has seen its federal support withdrawn. This reflects the policy shift away from regions primarily dependent on renewable-only pathways. The Midwest, represented by Mach H 2 and the Heartland Hub, has maintained its funding by proposing a diverse energy mix that includes not only renewables but also nuclear and natural gas.

Map Shows Key US Hydrogen Hub Locations

This map illustrates the geographical realignment discussed in the article, showing the locations of hubs on the Gulf Coast and in Appalachia versus those on the West Coast. It visually confirms the concentration of federally-backed development in specific regions.

(Source: CarbonCredits.com)

$4.8 B in Funding for Blue Hydrogen, ARCH 2 and Hy Velocity Lead

The 2025 policy review reveals a clear federal bet on the most commercially mature technology for at-scale hydrogen production: steam methane reforming with carbon capture (blue hydrogen). Projects like Hy Velocity and Exxon Mobil’s private Baytown facility leverage decades of experience in natural gas processing, making their execution pathway appear more predictable. The funding cuts signal a judgment that green hydrogen from electrolysis, while technically proven, is not yet economically viable at the massive scale envisioned by the original hubs program without substantial subsidies. The survival of mixed-source hubs like Mach H 2, which incorporates nuclear-powered electrolysis, and the continued private investment in green projects by companies like Plug Power, show that green hydrogen’s development continues. However, its path to scale now relies more heavily on private financing and state-level incentives rather than sweeping federal programs.

Green vs. Blue Hydrogen Project Types

This chart visualizes the split between green and blue hydrogen projects, directly relating to the section’s focus on the federal bet on blue hydrogen. It provides context for the strategic funding decisions favoring fossil-fuel-based production with carbon capture.

(Source: Hydrogen Insight)

DOE’s H 2 Hub Program, The Future of the $4.8 B Blue Hydrogen Bet

The primary strategic focus for the next 18-24 months will be the execution and de-risking of the remaining blue hydrogen hubs; their ability to meet ambitious cost and carbon capture targets will determine the long-term viability of the current U.S. clean hydrogen strategy.

• Watch for Final Investment Decisions (FIDs) from key partners in the Hy Velocity and ARCH 2 hubs. Any delay or withdrawal by a major player like Exxon Mobil or EQT Corporation would signal a significant loss of confidence in the projects’ financial viability.
• Monitor the progress of Carbon Capture, Utilization, and Storage (CCUS) permitting for these blue hydrogen projects. Regulatory delays or technical setbacks reported in late 2025 or early 2026 could undermine the “clean” credentials and economic models of the entire strategy.
• Observe the response from states that lost federal funding, particularly California. As stated by ARCHES officials, a pivot to enhanced state-level subsidies or new private partnerships could create a parallel green hydrogen ecosystem independent of federal backing.
• Track offtake agreements. The ultimate success of these hubs hinges on securing creditworthy, long-term buyers. Watch for new contract announcements from steel, chemical, or refining companies committing to purchase hydrogen from the federally funded hubs.

The questions your competitors are already asking

This report covers one angle of the commercial realignment of the DOE’s H2Hubs program after major policy and funding shifts. The questions that matter most depend on your work.

• Which companies, like Exxon Mobil and EQT, are gaining or losing ground in the US hydrogen market after the $7.5B in H2Hubs funding cuts?
• What is the status of the Hy Velocity Gulf Coast and ARCH 2 hubs? Are these blue hydrogen projects progressing from planning to deployment?
• What is the outlook for blue hydrogen deployment in US industrial sectors by 2030, given the federal pivot away from hubs like ARCHES?
• How does blue hydrogen from natural gas with CCUS now compare to green hydrogen on cost, with federal funding heavily favoring fossil-based projects?

This report does not answer these. Enki Brief Pro does.

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