Governor Newsom Announces New Strategy to Develop a Hydrogen Economy of the Future

Sacramento, CA–Governor Gavin Newsom has directed the Governor’s Office of Business and Economic Development (GO-Biz) to develop California’s Hydrogen Market Development Strategy, employing an all-of-government approach to building up California’s clean, renewable hydrogen market. It will closely resemble the Zero-Emission Vehicle Market Development Strategy to help California collectively move forward and deliver zero-emission benefits to all Californians.

“California is all in on clean, renewable hydrogen – an essential aspect of how we’ll power our future and cut pollution,” said Governor Newsom. “This strategy will lay out the pathway for building a robust hydrogen market to help us fully embrace this source of clean energy.”

WHY IT’S NEEDED: 

  • Expanding the market for clean, renewable hydrogen is key to achieving California’s climate goals – especially for a clean electric grid, net-zero carbon emissions, and drastically cutting air pollution.
  • California is currently competing to become a federally funded Hydrogen Hub, a program that will leverage $8 billion from the Bipartisan Infrastructure Law to establish at least four Hydrogen Hubs across the United States.

WHAT IT WILL DO:

  • Create a market development strategy that is focused on leveraging hydrogen to accelerate clean energy deployment and decarbonizing our transportation and industrial sectors;
  • Build on our 2022 Scoping Plan while leveraging the upcoming SB 1075 hydrogen report and ARCHES’ cross sector, multi-stakeholder hydrogen market white papers;
  • Developed in consultation with state agencies – including the California Air Resources Board, the California Energy Commission, and the California Public Utilities Commission – while clearly defining agencies’ roles and responsibilities;
  • Identify shared strategies to deliver projects, which may include new financing models, permitting modifications, and procurement initiatives;
  • Engage relevant stakeholders, including local communities, to advance equity and deliver environmental and economic benefits;
  • Ensure state agencies and partners continue to pull in a shared direction to accelerate the use of renewable energy throughout our economy and increase the resilience and reliability of our energy system.

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