New York is among seven northeast states that are vying to be part of a group proposal for a regional clean hydrogen hub, competing for more than $1 billion in federal funding to expand the technology. 

Gov. Kathy Hochul's administration last week announced New York, along with New Jersey, Maine, Rhode Island, Connecticut, Vermont and Massachusetts submitted a group proposal for the hub, potentially landing a $1.25 billion share of $8 billion in federal funding as part of an infrastructure law approved last year by Congress. 

The money could lead to a broader spending push for more than a dozen projects in the northeast to advance hydrogen energy production and infrastructure projects. 

Officials hope hydrogen energy can be part of a broader transition to renewable and cleaner forms of energy as the state moves to phase out fossil fuels in the coming decades. 

"As a leader on climate action and founding partner of the Northeast Regional Clean Hydrogen Hub, New York State is leading the way in establishing a connected and sustainable hydrogen industry that will bring jobs and economic development to the region," Hochul said. "We are ready to work with our state partners and local communities to capitalize on federal funding and ensure this program benefits the entire region while becoming part of a connected hydrogen hub network nationwide and reaching our ambitious climate goals."  

Federal officials at the U.S. Department of Energy will award proposals later this year for designation as one of the country's clean hydrogen hubs. The Northeast Regional Clean Hydrogen Hub was launched in March 2022 to find ways of boosting clean energy projects around the country amid the broader transition from carbon-based fuels. 

The effort has nevertheless raised questions over potential costs for consumers and businesses in the coming years. Last week, the Hochul administration announced it would not prioritize in the state budget talks a methane measurement opposed by environmental organizations.