California Launches Nation’s First Public Hydrogen Utility to Accelerate Clean Energy Adoption

Los Angeles, California – February 4, 2025 – The state of California continues to lead the clean energy revolution with the launch of First Public Hydrogen (FPH2)—the nation’s first public hydrogen utility. Spearheaded by the cities of Lancaster and Industry, FPH2 aims to transform hydrogen accessibility, transparency, and affordability by bridging the gap between producers and end users.

Unlike privately operated hydrogen ventures, FPH2 is a public utility structured under a joint powers authority (JPA). This framework allows the participating cities to collaboratively address the demand for green hydrogen while maintaining public oversight and ensuring long-term sustainability.

“By offering a transparent, scalable solution, FPH2 not only advances hydrogen adoption but positions California as a global leader in clean energy innovation,” said Lancaster Mayor R. Rex Parris, who also chairs the FPH2 board.

Revolutionizing Hydrogen Accessibility

FPH2’s public-oriented model aims to de-risk hydrogen adoption by mitigating the challenges and uncertainties that suppliers and buyers often face. Backed by California’s robust clean energy policies and federal incentives such as the 45V hydrogen production tax credit, FPH2 is well-positioned to accelerate the state’s hydrogen economy.

The utility is already making strides toward large-scale hydrogen adoption. By July 2025, FPH2 aims to procure 20,000 tons of clean hydrogen, with deliveries to early adopters projected to begin by late 2025 or early 2026. Currently, FPH2 is in its first procurement phase, evaluating multiple hydrogen suppliers, eight of whom already have facilities in California.

To ensure efficiency in hydrogen transportation and storage, FPH2 is actively developing critical infrastructure, including production sites, storage hubs, and distribution networks. In partnership with private sector leaders, the utility is working to create a seamless supply chain that can sustain long-term hydrogen adoption.

Sustainability Without Compromise

A key strength of FPH2 is its commitment to sustainability. While federal incentives like the 45V tax credit have accelerated clean hydrogen production, the utility is dedicated to building a self-sufficient model that remains viable beyond government subsidies.

To maintain environmental integrity, FPH2 is implementing rigorous sustainability standards for hydrogen production. Though some industry stakeholders have raised concerns that strict emissions regulations could slow adoption, Mayor Parris emphasizes the necessity of maintaining high environmental benchmarks. “We must ensure the environmental integrity of clean hydrogen production while remaining adaptive to market and regulatory realities,” he stated.

The initiative is also designed to be flexible, with FPH2 exploring additional pathways to address potential supply gaps and remain agile in the face of evolving market dynamics and regulatory shifts.

Impacts and Future Applications

The launch of FPH2 is expected to have far-reaching implications across multiple industries. The first adopters will likely be public transit agencies and freight operators, as hydrogen fuel cells offer a sustainable alternative without sacrificing operational efficiency.

Beyond transportation, industries such as shipping, manufacturing, and aviation are poised to benefit from FPH2’s efforts. By fostering a reliable hydrogen economy, California is setting the stage for hydrogen to become a mainstream energy source for large-scale industrial operations.

Looking forward, FPH2’s public utility model could serve as a blueprint for other states and nations seeking to scale up hydrogen adoption. By demonstrating how local governments can successfully integrate hydrogen infrastructure with private-sector partnerships, California is paving the way for a cleaner, more sustainable energy future.

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