Leading CEO’s Ask Newsom to Dedicate $500 Million in Hydrogen Infrastructure Funds as Part of Zero Emission Vehicle Plan
Executives of Major Energy Companies Point to Public Sector Support to Bolster Millions in Private Sector Investment
In a letter to Governor Gavin Newsom, executives of 25 multi-national companies today called for major new investments in hydrogen infrastructure in the Golden State.
“At this still early stage in market development, the signal California sends on hydrogen will impact private investment decisions. But in the medium- to long-run, hydrogen must and will stand on its own legs and be viable without external support,” wrote the executives in their letter to the governor.
They noted, “The early stages of any technology curve must have some support, much as was seen in the early days of wind and solar power.”
“This is the dawn of an entirely new, clean and domestic power source made to serve the energy and transportation markets. We look forward to partnering with you and your Administration on its development and look forward to working together to achieve our shared goals,” they wrote.
Specifically, the companies called on Governor Newsom to boost funding in the state’s Clean Transportation Program reauthorization. They asked the Governor to direct the California Energy Commission to dedicate $500 million of the $1 billion to hydrogen fuel infrastructure to serve the light-duty, transit and heavy-duty vehicle markets.
Through the Clean Transportation Program, California is on track to provide $240 million for the development of hydrogen fueling infrastructure. That figure represents just 7 percent of total zero emission infrastructure spending, according to the California Hydrogen Coalition.
To become mainstream, the hydrogen economy cannot be based on subsidies, note the executives, and sustainable markets must be created. They cited a recent study by the California Air Resources Board that noted “self-sufficiency [for the light-duty market] can be achieved by 2030 with state support of up to $300 million.”
With at-scale adoption across sectors, the U.S. hydrogen industry has the potential to create revenues of roughly $140 billion per year and support about 700,000 jobs by 2030 in hydrogen production, infrastructure, and equipment. By 2050, hydrogen could enable a market of $750 billion per year with 3.4 million new jobs.