Xcel Energy, Heartland Hydrogen Hub selected for up to $925 million federal award

The U.S. Department of Energy has selected the Heartland Hydrogen Hub, including multiple clean hydrogen projects from Xcel Energy, for award negotiations to receive up to $925 million. The award will serve as a catalyst for a future hydrogen ecosystem in the Upper Midwest.

The Heartland Hydrogen Hub (HH₂H) is one of seven selected to receive funding. The hub includes Xcel Energy, Marathon Petroleum Corporation and TC Energy, in collaboration with the University of North Dakota’s Energy & Environmental Resource Center, to produce and use low-carbon hydrogen at commercial scale in Minnesota, Wisconsin, South Dakota, North Dakota and Montana. The hub aims to reduce carbon emissions by more than 1 million metric tons per year, the equivalent of taking 220,000 gasoline-powered cars off the road.

“Clean fuels are a critical component of enabling economy-wide decarbonization. The Heartland Hydrogen Hub is game-changing initiative that demonstrates how we’re accelerating the development of the next generation of clean energy technology with significant benefits for our customers and the environment,” said Bob Frenzel, Xcel Energy chairman, president and CEO. “The strong partnership with our Upper Midwest states and other energy providers demonstrates our commitment to increasing economic impact while achieving carbon reduction goals for our customers.”

Clean fuels in general, and the Heartland Hydrogen Hub in particular, are a key part of Xcel Energy’s vision for zero-carbon generation and net-zero emissions from natural gas distribution by 2050. Hydrogen is a clean molecule that can reduce carbon emissions in a variety of sectors. The company plans to use its existing and future nuclear, solar and wind resources in the Upper Midwest to produce hydrogen to blend into power generation, existing natural gas distribution systems, and other agricultural and industrial applications.

For its projects within the hub, Xcel Energy expects to receive a large portion of the federal award, subject to negotiations. In its application, Xcel Energy proposed investing up to $2 billion over a decade for clean hydrogen producing equipment and infrastructure, representing 75% of full program costs for the company’s portion of the hub. As a member of the Heartland Hydrogen Hub team, Xcel Energy is prepared to execute and fund its portion of the project to build and operate safe, clean hydrogen infrastructure in the region and bring the benefits of green hydrogen and clean fuels to the clean energy workforce and local communities.