SDG&E Hails This Announcement as a Historic Step Forward in the Golden State’s Clean Energy Transition

SAN DIEGO, Oct. 13, 2023 – San Diego Gas & Electric (SDG&E) issued the following statement, after the federal government announced today that it would award up to $1.2 billion to the Alliance for Renewable Clean Hydrogen Energy Systems (ARCHES), a statewide public-private partnership, to establish a regional clean hydrogen hub in California. SDG&E is a proud supporter of ARCHES, which organized California’s hydrogen hub application submission to the U.S. Department of Energy.

“Given the urgent need to develop innovative, climate solutions, SDG&E is thrilled about our nation’s investment to create a hydrogen hub in California and grateful for Gov. Newsom’s leadership in this endeavor,” said SDG&E Chief Commercial Officer Miguel Romero. “Studies have shown that both clean electrons and clean fuels, including renewable hydrogen, are needed to decarbonize the grid while also maintaining electric reliability. We look forward to collaborating with ARCHES and other key stakeholders across sectors to help advance California’s hydrogen economy.”

California’s clean hydrogen hub is one of seven such hubs across the nation that were selected by the U.S. Department of Energy for a total of $7 billion in funding from the Bipartisan Infrastructure Law. The hubs are charged with creating networks of hydrogen producers, consumers, and local infrastructure to accelerate the use of hydrogen as a clean energy carrier that can deliver or store vast amounts of energy.

Hydrogen and the Path to Net Zero

As part of its sustainability strategy, SDG&E is committed to studying how clean hydrogen can help meet local and state climate goals, while addressing energy reliability, affordability and equity. The company is currently working to develop and implement real-world hydrogen projects to help expand industry knowledge and advance hydrogen innovation.

As more electric vehicles hit the road and as more buildings become electrified, energy experts believe clean hydrogen will be crucial in helping to bolster grid reliability by serving as a clean, firm resource to fill gaps, when the wind isn’t blowing, and the sun isn’t shining. Additionally, experts believe hydrogen is necessary to decarbonize sectors that are hard to electrify, such as heavy industry and long-distance trucking.

SDG&E’s Path to Net Zero study shows that California will need to complement its growing portfolio of intermittent solar and wind generation with a mix of clean, firm and flexible resources that can be dispatched at any time to meet needs. To meet California’s net zero by 2045 goal while maintaining grid reliability, it is projected the state would need to install 40 GW of new battery storage, along with 20 GW of dispatchable generation from 100% clean hydrogen combustion.