California Hydrogen Authority Forges Ahead Despite Federal Shifts

Lancaster, CA – November 6, 2025 – While a nationally-watched hydrogen hub project has temporarily paused, California’s ambitions for a hydrogen-powered future remain firmly on track. The First Public Hydrogen Authority (FPH2), a pioneering public utility, is demonstrating local resilience and positioning the state as a leader in the burgeoning hydrogen economy, even amidst federal funding shifts.

Yesterday, the Alliance for Renewable Clean Hydrogen Energy Systems (ARCHES) announced a pause in operations, citing changes in federal funding allocations. The project, one of several awarded under the Department of Energy’s Regional Clean Hydrogen Hubs program, aimed to create a regional hydrogen hub in California. However, FPH2 officials insist that the state’s hydrogen progress isn't contingent on a single initiative.

“The pause of ARCHES is certainly a setback, but it doesn’t derail the momentum we’re seeing across California,” explained a spokesperson for FPH2. “We designed this authority to be independent, to be driven by local needs and investment, and to be resilient to fluctuations at the federal level.”

A Local Approach to a Global Challenge

FPH2, formed by a coalition of California cities, distinguishes itself from ARCHES through its unique governance model. As a Joint Powers Authority (JPA), FPH2 aggregates demand, facilitates procurement, and streamlines delivery of hydrogen fuel across municipalities and private entities. This collaborative approach ensures a reliable and cost-effective supply, reducing reliance on external funding streams.

“The key difference here is the local control,” said an energy analyst familiar with both projects. “ARCHES was heavily dependent on federal dollars. FPH2 built a network and a business model based on consistent local investment. It’s a fundamentally different approach.”

This approach is already bearing fruit. FPH2 recently concluded a hydrogen supply solicitation that attracted a diverse range of bidders, signaling strong market interest. More importantly, the authority is facilitating real-world hydrogen deployments.

Leading the Charge: From Power Plants to Ports
The Los Angeles Department of Water and Power (LADWP) is spearheading a particularly ambitious project: the repowering of the Scattergood Generating Station to run on green hydrogen. Once completed, Scattergood will be the nation’s first large-scale hydrogen-fueled power plant, capable of delivering clean energy to hundreds of thousands of homes.

“This isn’t just about demonstrating the technology; it’s about demonstrating the viability of hydrogen as a baseload power source,” said a source close to the LADWP project. “We’re proving that hydrogen can be a reliable and scalable part of the energy mix.”

Beyond power generation, FPH2 is also focused on decarbonizing transportation. Several California cities are piloting hydrogen fuel cell buses, and the ports of Los Angeles and Long Beach are exploring hydrogen-powered cargo handling equipment. The potential to reduce emissions from these sectors is significant.

“Ports are notoriously difficult to decarbonize,” noted a logistics expert. “Switching to hydrogen fuel cell technology is one of the most promising pathways, and FPH2 is helping to make it a reality.”

Navigating a Competitive Landscape

While FPH2 is leading the charge, it’s not alone. Numerous other hydrogen projects are underway across the state, creating a competitive and dynamic market. Several private companies are developing hydrogen production facilities, and research institutions are pushing the boundaries of hydrogen technology.

This competition is healthy, driving innovation and lowering costs. However, it also presents challenges. Ensuring interoperability and coordinating infrastructure development are crucial to maximizing the benefits of hydrogen.

“We need a coordinated approach to hydrogen infrastructure,” said an industry representative. “That means working together across public and private sectors to build a robust and reliable hydrogen network.”

A Global Market with Local Roots
The global hydrogen economy is projected to reach hundreds of billions of dollars in the coming decades. While much of the initial investment is coming from Europe and Asia, the US is poised to become a major player. California, with its ambitious goals and supportive policies, is well-positioned to lead the charge.

“California has the potential to be a global hub for hydrogen technology,” said an energy analyst. “We have the resources, the expertise, and the political will to make it happen.”

However, sustaining this momentum requires continued investment and a long-term vision. FPH2, with its local focus and resilient business model, is proving that a hydrogen-powered future is within reach – even amidst federal shifts and competitive pressures. The authority’s success story serves as a testament to the power of local innovation and the importance of building a sustainable energy future from the ground up.

As one FPH2 official put it: “We're not waiting for someone else to solve our energy problems. We're building the solutions ourselves.”