Year In Review - Arches H2

Year in Review:

Letter from Leadership

Dear ARCHES Partners and Stakeholders,

As ARCHES leadership writes to you today, the organization stands at a defining moment in California's hydrogen future. As you know by now, the DOE made the decision on October 1st to withdraw funding for the ARCHES and the Pacific Northwest Green Hydrogen Hubs.

This decision is disappointing, especially given the extraordinary statewide partnerships we created.

However, the silver lining is that our activities, as part of the H2Hubs Program, have catalyzed a multi-billion hydrogen ecosystem in California, and we, collectively, are well positioned to accelerate the deployment of hydrogen projects statewide.

A New Chapter:

While ARCHES considers an appeal of the federal government’s withdrawal, with the best chance of retaining federal investment for our partners, we are committed to moving forward with greater flexibility and responsiveness to market needs. We will work together with all partners to implement projects based on commercial viability as well as environmental and community impact. Most importantly, we can deploy resources more efficiently to actually move molecules and generate economic, air quality, and social benefits.

This transition accelerates ARCHES’ evolution to a market enabler fully focusing on what we believe California truly needs: a comprehensive market integration that connects hydrogen supply with demand, brokers commercial relationships, provides price transparency, and enables the transactions that build a sustainable hydrogen economy.

Celebrating our Partners and the Foundation we have Built Together

The past year’s achievements remain remarkable and provide the foundation for commercial success. ARCHES established broad-based partnerships with 75+ organizations, built technical capabilities through UC system collaboration, developed workforce pathways with State Building and Construction Trades (SBCT), and secured over $10 billion in private and public sector commitments. These assets now serve as the foundation to our commercial mission focused on building out the reliable, resilient, high value sustainable hydrogen ecosystem and marketplace in California and beyond.

The ARCHES ecosystem approach of connecting supply and demand across the hydrogen value chain has validated the potential business case for clean hydrogen. The projects in our portfolio represent tangible commercial opportunities, supported by robust systems analysis capabilities that provide market intelligence to guide smart business decisions. Our strong relationships with California’s state leadership further reinforce this foundation, ensuring continued support for our shared vision and the state’s commercial transformation.

What This Means for ARCHES Partners

For partners, this change creates immediate opportunities. ARCHES will be reaching out soon with detailed questions and surveys to ensure we are serving Partner needs. We are in a new phase in which we can move faster on commercial agreements and project delivery. ARCHES will focus on facilitating marketplace transactions that lead to more and faster Final Investment Decisions (FID) and generate actual revenue for partners. We plan to work with partners to access streamlined contracting, transparent pricing mechanisms, and direct connections to buyers.

California has signaled continued support for hydrogen projects as well as ARCHES’ commercial evolution, recognizing that state investment in market-making infrastructure delivers greater economic returns. Partners can expect ARCHES to provide services including demand aggregation, contract facilitation, technical validation, workforce development, and supply chain coordination; all focused on project and partner commercial success.

The Path Forward

While the DOE validated the strength of the ARCHES model by its rigorous review process, we now transition to a nimble system enabling and integrating function, as envisioned from the very start, to deliver what California actually needs: a functioning hydrogen marketplace that moves molecules, creates jobs, and generates sustainable economic, social and environmental value. We’re committed to announcing initial commercial agreements by the end of the year, with transaction volumes scaling through 2026 and 2027.

Our success will be measured in metric tons per day of hydrogen transacted, businesses thriving , and communities benefiting from cleaner air and quality jobs. This new chapter enables ARCHES to focus on building a sustainable hydrogen marketplace and ecosystem that delivers a reliable, resilient, and cost-effective clean fuel source to help California reach its ambitious climate and energy goals faster. Let’s build the future together.

OUR ARCHES STRUCTURE

The Alliance for Renewable Clean Hydrogen Energy Systems (ARCHES) is a public-private partnership created to serve as California’s clean hydrogen hub. ARCHES operates as a collaborative initiative co-founded by the Governor’s Office of Business and Economic Development (GO-Biz), the University of California, a statewide labor coalition organized by the State Building and Construction Trades Council of California, and the Renewables 100 Policy Institute.

Building A Commercial Foundation

Launch Event: A Vision Realized

On August 30, 2024, ARCHES demonstrated California’s hydrogen technology readiness at a historic event in Oakland, bringing together Governor Gavin Newsom, U.S. Under Secretary of Infrastructure David Crane, and Senator Alex Padilla. The half-day showcase featured real, working hydrogen technology across the transportation sector—validating the commercial viability of California’s hydrogen investments.

Key Highlights:

Signing of $12.6 billion cooperative agreement – the largest in DOE history, with a 10:1 cost-share match of federal funds with State and private investment
8 hydrogen fuel cell trucks from leading manufacturers
Sea Change Ferry demonstration showcasing maritime applications
AC Transit and SamTrans fuel cell buses in operation
True Zero Hydrogen Station capable of supporting 200 Class 8 trucks daily

Foundation for Commercial Success:

This launch event marked a critical turning point when federal government was truly partnering with ARCHES to bring together over 33 partner organizations committed to advancing California’s hydrogen ecosystem. The technology demonstrations validated commercial readiness, and the partnerships formed have continued progressing projects through planning and development stages.

The ARCHES H2Hub and ARCHES Ecosystem creation process catalyzed over $10 billion in state and private sector investment plans, demonstrating that commercial viability—not federal subsidies—drives sustainable market development. Many partners continue advancing their projects and ARCHES is committed to enabling their success.

International Recognition

Our progress has earned international acclaim. ARCHES was named a finalist for the 2024 Platts Global Energy Awards—often called the “Oscars of Energy”—in the “Deal of the Year – Strategic” category. This recognition highlights not just the scale of our initiative, but its potential to transform how America approaches clean energy infrastructure.

Media Spotlight

ARCHES was featured on Bloomberg TV’s “Advancements with Ted Danson,” spotlighting hydrogen’s transformative impact across California. The segment highlighted our partnerships with Think Watts, PNWH2, Foothill Transit, FirstElement Fuel, GO-Biz, and the State Building Trades, demonstrating the collective power driving this transition.

Economic Impact Spotlight:

Thousands of jobs to be created across the hydrogen value chain
$3 billion in annual health cost savings from reduced emissions by 2032
Emissions reductions across transportation, ports, and industrial sectors

Founding Member Support

Unwavering Commitment to California's Hydrogen Future

Even amid shifting conditions and uncertainties, ARCHES’ founding demonstrate a steadfast commitment to California’s hydrogen future. Their sustained support reflects deep recognition that California’s environmental and commercial imperatives demand hydrogen market development—with or without Washington D.C.’s participation. This partnership serves as a key foundation for our future, as we work with all stakeholders to enable growing market access and opportunities to deliver benefits to Californians.

State of California Leadership

The California Governor’s Office of Business and Economic Development (GO-Biz) continues its leadership role as a founding member, providing strategic guidance that ensures ARCHES advances state clean energy objectives while supporting economic development across all regions. Beyond governance, the State has demonstrated its commitment through direct investment in ARCHES from the state budget, and by directing GO-Biz and state agencies to work with ARCHES to build the hydrogen ecosystem and marketplace in California.

This financial commitment reflects California’s recognition that hydrogen market success requires sustained public investment to catalyze private sector engagement. State support enables ARCHES to facilitate infrastructure coordination and market-making services that individual companies cannot develop independently, while targeted investments in ARCHES projects help demonstrate commercial viability across transportation, ports, power generation, and industrial applications.

University of California System Excellence

The University of California system continues its multifaceted support through specialized expertise across multiple campuses and institutions. ARCHES benefits from the systems analysis team at Lawrence Berkeley National Laboratory (LBNL), which provides critical technical validation and market modeling that guides marketplace decisions with rigorous scientific analysis. The UC Office of the President (UCOP) provides board leadership through the Board Chair position, ensuring science based perspectives inform strategic direction.

ARCHES leverages specialized talent from across the UC system, utilizing research specialists from UC Irvine, UC Berkeley, UC Davis, and UCLA, while drawing on legal expertise and project management capabilities from UCOP and system-wide institutions. This distributed approach enables ARCHES to access world-class capabilities across hydrogen technology development, policy analysis, environmental assessment, and commercial implementation.

UC’s involvement spans from fundamental hydrogen technology research to applied systems analysis that guides marketplace selections, ensuring that ARCHES maintains technical excellence while pursuing commercial viability. The university system’s international research collaborations also position ARCHES to benefit from global hydrogen advances, creating technology transfer opportunities that keep California at the forefront of hydrogen innovation.

Labor Partnership Through SBCTC

The State Building and Construction Trades Council of California (SBCTC) remains deeply engaged in workforce development initiatives, ensuring that ARCHES projects create high-quality career pathways while meeting the skilled labor demands of California’s expanding hydrogen infrastructure. SBCTC’s founding member status reflects organized labor’s recognition that clean energy transitions can strengthen rather than threaten traditional construction and industrial jobs.

SBCTC’s involvement ensures that hydrogen infrastructure development creates prevailing wage opportunities for California workers while maintaining the highest safety and quality standards through local hire requirements that prioritize community workforce development and project labor agreements. This labor partnership also provides crucial input on project feasibility, as experienced construction professionals help identify potential implementation challenges before they become costly problems.

The collaboration extends to comprehensive apprenticeship program development, ensuring that California’s existing workforce can transition into hydrogen-related careers through training programs that build on existing skills while adding specialized hydrogen safety and technical capabilities. SBCTC’s local hire provisions create direct pathways for community members to participate in the hydrogen economy, ensuring that infrastructure investments generate immediate economic benefits for California workers and their families.

The ARCHES Ecosystem and Marketplace:

Commercial Integration for Hydrogen Success

Integrated Innovation

ARCHES is focused on functioning through an innovative integrated approach that addresses the fundamental challenges of emerging clean energy markets. ARCHES is building an Ecosystem to serve as the collaborative foundation, and a Marketplace to transform that foundation into a thriving commercial platform.

The Ecosystem is designed to function as a hydrogen network backbone, bringing together producers, technology developers, fleet operators, and infrastructure providers. Based on ongoing Partner feedback and needs, , ARCHES plans to provide access to an evolving menu of comprehensive support services including technical analysis from world-class research institutions, streamlined permitting assistance, workforce development programs, and connections to specialized financing.

The ARCHES Marketplace is being structured to transform ecosystem collaboration into commercial reality. We plan to aggregate hydrogen demand across California’s diverse sectors while providing producers with guaranteed offtake agreements and price transparency. This sophisticated matching service addresses core market challenges: price uncertainty, supply-demand coordination, and transaction complexity.

Rolling Request for Proposals: Continuous Innovation

Our Rolling RFP process maintains market dynamism by continuously welcoming new hydrogen projects and innovative companies. This open-door approach prevents market stagnation and ensures California’s hydrogen economy benefits from the latest technological advances and most competitive pricing.

2024-2025 Application Summary:

Proposal Type	2024	2025 (to date)	Total
Preliminary Proposal	38	15	53
Updated Proposal	6	3	9
New Full Proposal	7	7	14

Systems Analysis Pipeline:

9 projects approved for systems analysis
4 projects accepted contingent offers
12 regular ecosystem meetings maintained consistent engagement

Project Portfolio:

Building the Infrastructure

Overall Progress

ARCHES has demonstrated remarkable resilience through an uncertain year, successfully executing subrecipient agreements with 33 partners to develop 150 distinct hydrogen projects spanning the complete hydrogen value chain. Partners have made significant strides across all key sectors despite navigating complex regulatory, market, and permitting challenges, advancing multiple hydrogen production facilities. In total, the projects in ARCHES original plan amount to over 500 metric tons per day of planned capacity and over $12 billion in total critical energy infrastructure investment.

The comprehensive approach includes:

9 production facilities
2 power generation plants with up to 100% capable turbines
40+ hydrogen refueling stations strategically positioned across California
New hydrogen-dedicated open-access pipeline networks
3 port infrastructure upgrades
1,000 fuel cell electric buses
and 5,000 fuel cell trucks

Systems Analysis & Market Intelligence Progress

ARCHES has established a comprehensive systems analysis framework that serves as the backbone for coordinating California’s clean hydrogen ecosystem. The hub launched a quality-controlled, live database tracking approximately 150 clean hydrogen projects across California, capturing 15 ARCHES-aligned metrics including temporal, geographic, sectoral, feedstock, production volumes, and carbon intensity data. This database now serves 40% ARCHES hub projects and 60% external projects that influence hub economics, transforming discrete initiatives into a coordinated market network. The systems analysis team has conducted multiple structured stakeholder interviews across industry, labor, government, and nonprofit sectors, delivered comprehensive policy briefs on state hydrogen transportation and federal policy developments, and integrated advanced financial modeling with geospatial techno-economic analysis. Partners have completed integration of federal financing models into hub analysis codes while developing scenarios that capture unique company return targets and production cost variations, providing critical data for Phase 1 decision-making and long-term hub optimization.

Hydrogen Production Sector Progress

ARCHES production partners have made substantial progress in technology demonstration and site development across diverse hydrogen production pathways. Multiple facilities have advanced through critical engineering and permitting phases, with several clean hydrogen projects including a planned electrolysis facility completing environmental documentation and achieving full site control, while another significant project has issued key deliverables including security frameworks and stakeholder assessments. Production partners have navigated site-specific challenges by expanding location searches across California counties, broadened feedstock strategies to include agricultural residues and construction debris, while continuing to pursue supplemental funding despite policy headwinds. A major facility received formal assignment to county permitting specialists, while several projects have substantially completed preliminary engineering and financial modeling, demonstrating ARCHES’ unique value and progress toward establishing reliable, clean hydrogen supply chains.

Ports Sector Progress

Major California ports have established strong foundations for zero-emission cargo handling equipment deployment, with major facilities securing funding and executing subrecipient agreements. Both ports have contracted consultant teams for grant administration, developed comprehensive project team structures, and released Calls for Projects to terminal operators specifically targeting 100% zero-emission hydrogen fuel cell cargo handling equipment. The ports are finalizing their triennial zero-emission feasibility assessments that will guide equipment selection, with preliminary plans to deploy hundreds of heavy-duty hydrogen powered port equipment including heavy duty trucks, along with the required refueling infrastructure. Initial planning activities have focused on terminal readiness assessments, hydrogen fuel pricing analysis, and industry partner engagement, establishing the groundwork for transforming port operations through hydrogen fuel cell technology.

Power Sector Progress

The power sector within ARCHES has advanced critical infrastructure projects with a major utility making significant progress on a modernization project that will utilize 22-185 MTPD of hydrogen for a 346-MW dispatch power turbine. The project completed its Draft Environmental Impact Report with public comment periods, submitted air permit applications to regional air quality authorities, and released an RFP for EPC contractors with award anticipated in 2026. A national laboratory completed an alternatives study comparing the proposed project to non-combustion alternatives, concluding that alternatives could not match the performance of the hydrogen-based modernization. Several smaller-scale projects have also progressed, including fuel cell installations for stationary power applications, with partners completing preliminary engineering, financial modeling, and environmental permit preparations while working through interconnection processes and offtake structure development.

Transportation Sector (Heavy-Duty, Non-Transit) Progress

The heavy-duty transportation infrastructure sector has made considerable advances in hydrogen refueling station development and technology deployment. A major travel center operator has prioritized two locations for early hydrogen refueling station deployment from their 35 California facilities, conducted RFPs for engineering contractors to create standard site designs, negotiated with hydrogen suppliers, and secured additional state-level grants through energy commission and air quality management programs. Equipment manufacturers continue developing next-generation cryogenic pump systems with testing at California facilities and installation planned at major port locations by end of Q3 2025. The sector has focused on identifying optimal locations based on fleet feedback, conducting preliminary engineering assessments, and advancing through various permitting and approval processes while building the foundation for California’s heavy-duty hydrogen refueling network.

ARCHES is currently reviewing responses to its 5000 Fuel Cell Electric Truck Request for Qualification—a program designed to facilitate strategic partnerships between Funding Agencies, Truck Manufacturers, Fleets, Station and Molecule Providers—all working together to reach total cost of ownership parity with diesel.

Transit Sector Progress

The transit sector represents one of ARCHES’ most successful implementation areas, with 13 transit agencies collectively planning to deploy over 1,000 fuel cell electric buses supported by comprehensive hydrogen fueling infrastructure. Twelve agencies have successfully executed subrecipient agreements with ARCHES support, with projects ranging from one agency’s $12.7 million design-build contract for hydrogen infrastructure to another advancing negotiations for stations capable of supporting 170 FCEBs. Multiple agencies have made substantial progress in station design and procurement, including one agency reaching 30% design milestones with their contractor, and several agencies completing preliminary environmental studies, cultural assessments, and safety planning. The coordinated approach has enabled agencies to leverage shared expertise and procurement strategies while advancing individual projects through design, permitting, and construction phases, positioning the sector as a cornerstone of California’s hydrogen adoption strategy.

Maritime & Shipping Sector Progress

The maritime sector has advanced innovative hydrogen applications with a research vessel project demonstrating hybrid hydrogen propulsion systems for maritime applications. The project has made significant progress in system engineering development, completing basis of design work, heat and mass balance calculations, process descriptions, and piping material specifications for hydrogen fuel systems. Engineering partners have developed comprehensive process and instrumentation diagrams and advanced 3D modeling for tank connection systems, while project teams have refined liquid hydrogen bunkering concepts and submitted various technical submittals. Despite encountering budget challenges with initial shipyard bids that exceeded available resources, project leaders have adapted their approach to rebid processes with improved communication strategies, demonstrating resilience in advancing this pioneering maritime hydrogen application that plans to utilize liquid hydrogen from the ARCHES marketplace upon completion.

Feedstock Supply & Strategic Partnerships

ARCHES production partners have achieved significant breakthroughs in securing diverse and reliable feedstock supplies, expanding well beyond initial municipal solid waste strategies to encompass comprehensive organic waste streams. Partners have successfully broadened feedstock portfolios to include agricultural residues, woody and forestry biomass, construction and demolition debris, and sewer sludge, with detailed feedstock analysis informing both lifecycle modeling and technology selection processes. A major development involves active negotiations with large-scale waste haulers that combine both feedstock supply agreements and potential co-location opportunities, significantly enhancing both logistical efficiency and economic viability. These strategic partnerships demonstrate ARCHES’ success in creating integrated supply chains that transform California’s waste streams into valuable clean hydrogen feedstock, while partners continue pursuing demand aggregation efforts and infrastructure co-location opportunities that strengthen the overall ecosystem.

Strategic Market Development

Understanding Evolving Demand

ARCHES employs a systematic approach to market development through targeted solicitations that aim to reveal actual commercial requirements rather than theoretical projections.

Heavy-Duty Transportation Market Intelligence:

Our Request for Information (RFI) followed by Request for Qualifications (RFQ) for Class 8 trucks provides critical insights into California’s largest hydrogen opportunity. The November 2024 RFI generated 50 responses, revealing fleet operator requirements, deployment timelines, geographic distribution patterns, and price sensitivity thresholds.

Pipeline Infrastructure Analysis:

The recently completed pipeline RFI addresses distribution economics—one of hydrogen’s most capital-intensive challenges. 9 responses provided real-world data on routing options, construction costs, permitting timelines, and operational capabilities essential for competitive hydrogen pricing.

Upcoming Market Research:

Midstream RFI to complete supply chain analysis
Additional transportation sector solicitations
Industrial demand assessment initiatives

Thought Leadership & Knowledge Sharing

White Paper Series

ARCHES released comprehensive white papers covering Transportation, Ports, and Aviation, developed through extensive collaboration with over 400 partners. These “living documents” provide sector-specific roadmaps for hydrogen adoption, identifying opportunities, challenges, and actionable recommendations.

Transportation White Paper outlines strategies for scaling fueling infrastructure, aligning policies, and reducing costs to make hydrogen competitive with diesel across heavy-duty applications.

Ports White Paper highlights pathways for integrating hydrogen into cargo handling, drayage trucking, and maritime operations, supporting zero-emission seaports while protecting community health.

Aviation White Paper explores hydrogen’s role in ground-support equipment and longer-term aircraft propulsion, emphasizing research, demonstration projects, and workforce training needed for global leadership.

These publications serve as adaptive, collaborative tools—regularly updated to reflect market and technology evolution—ensuring California maintains its position at the forefront of clean hydrogen innovation.

2025 Annual Symposium

In March 2025, ARCHES convened over 150 executives from nearly 100 hydrogen partners at our Annual Symposium in Irvine. This invitation-only gathering brought together leaders actively building hydrogen infrastructure and driving demand to accelerate California’s hydrogen economy.

Participants brought global expertise in large-scale projects and experience across international markets, reaffirming their commitment to advancing a clean energy future through collaboration with the state agencies and industry partners.

Workforce Development: Building Human Capital

ARCHES has launched a comprehensive workforce pilot project with subcontractors to assess workforce needs and ensure deployment readiness. This early coordination effort builds relationships with local unions and non-union partners alike, developing the skilled workforce required for successful hydrogen project delivery across California.

Our workforce development strategy aligns with industry needs and equity goals, connecting communities with high-quality training and career opportunities in the growing clean energy sector. By starting workforce development in parallel with infrastructure development, we ensure California has the human capital ready to support hydrogen economy growth.

Timeline and Impact

Looking Forward: Market Transformation Timeline

ARCHES is building market infrastructure to help make clean, renewable hydrogen a cornerstone of California’s clean energy future. We are pursuing a comprehensive, multi step approach to build market confidence over time, ultimately demonstrating that environmental leadership and economic growth advance together.

Late 2025: Initial marketplace agreements in place, establishing commercial viability and price discovery mechanisms.

2026: Expanded production capacity under construction.

2027: Scale volume of hydrogen transactions to , demonstrate maturing market operations and a clear path to competitive pricing.

This trajectory positions California as the national leader in clean hydrogen technology and deployment while accelerating progress toward climate targets and creating thousands of high-quality jobs across the state.

Impact Summary: Benefits for All Californians

The ARCHES Ecosystem and Marketplace delivers comprehensive benefits across California communities:

For Communities: Cleaner air through reduced emissions from heavy-duty trucks and industrial facilities, plus new career opportunities in the growing clean energy sector with pathways for equitable participation.

For Businesses: Access to reliable, competitively-priced clean hydrogen that cost effectively helps meet sustainability goals while maintaining operational efficiency and market competitiveness.

For the State: Accelerated progress toward climate targets while building a cost effective reliable, resilient, home-grown fuel source that establishes California as a global powerhouse in clean hydrogen technology innovation, while attracting investment and market opportunities to the 4th largest economy.

For the Nation: Demonstrating how strategic investment in a well-designed hydrogen ecosystem and marketplace can catalyze massive private sector engagement, creating a replicable model for clean energy infrastructure development across America.

California has proven time and again that ambitious scale up of clean technologies and bold climate action drives economic opportunity, technological innovation, and community prosperity—building on that tradition ARCHES is dedicated to the success of California’s hydrogen future and we look forward to working with all our Partners to make this vision a reality!

Contact Information: ARCHES

info@arches.org

In Memoriam: Bo Mazzetti

Bo Mazzetti, respected Chairman of the Rincon Band of Luiseño Indians and dedicated ARCHES Board Member passed away on May 2, 2025. Chairman Mazzetti’s absence will be deeply felt throughout the California hydrogen community and by all who knew him. ARCHES commits itself to honoring his memory by continuing his work and bringing his vision of tribal prosperity and environmental sustainability to fruition.