The Virginia Department of Energy is launching a subaward program to support the development of hydrogen production in the Southwest Virginia region. The program offers planning grants of up to $250,000 each to eligible entities to conduct research, analysis, planning, and implementation activities related to establishing a hydrogen hub. Total funding available is up to $750,000 across multiple awards.
The program objectives include developing solutions to energy issues critical to hydrogen energy implementation while promoting economic development in Southwest Virginia. Projects should explore the production of blue hydrogen (from natural gas) and green hydrogen (from steam-methane reforming) and identify opportunities for new industries to grow in the region. The initiative specifically targets the historically disadvantaged coalfield communities impacted by the downturn of the coal industry, utilizing available assets including previously mined land, energy-ready industrial sites, abundant water resources, natural gas access, and on-site rail.
Allowable activities include: quantifying economic and environmental impacts including job creation; surveying industries that would benefit from hydrogen hubs; evaluating current infrastructure; identifying policy and regulatory challenges; identifying potential pilot projects and demonstrations; engaging communities in strategic planning; facilitating workforce development; adopting hydrogen-fueled technologies; and funding demonstrations or pilot projects. Applicants must provide quarterly progress reports and documentation of invoiced work.
Cost share requirements mandate a minimum 20 percent non-federal cost share (either in-kind or cash), with waivers considered on a case-by-case basis. Awardees must comply with the Build America Buy American Act and Davis Bacon Prevailing Wage requirements when applicable. The award is funded under the Infrastructure Investment and Jobs Act (Bipartisan Infrastructure Law) Section 40109 State Energy Program.