The state of Maine has taken a rare and notable step forward in the United States’ green hydrogen landscape by issuing a draft request for proposals (RFP) to develop a subsidised clean hydrogen production facility. The initiative, led by the Maine Public Utilities Commission (PUC), aims to identify a developer capable of building and operating a project that would use up to 20 MW of power at a special electricity rate. A key condition of the RFP is that all hydrogen generated through the project must be consumed within the state.

Although the selected developer will be responsible for funding and constructing the facility, the PUC may direct a regulated utility to negotiate discounted electricity pricing to strengthen the project’s commercial viability. Interested parties have been asked to register their intent by early December, marking the beginning of what could become Maine’s foundational hydrogen infrastructure.

Brad Bradshaw, president of the Portland-based Hydrogen Energy Centre, described the state’s intervention as a strategic attempt to ease the financial pressures typically associated with green hydrogen production. “This initiative by the state of Maine is to provide some benefit to reduce those transmission and distribution charges associated with clean hydrogen production,” he said. The effort reflects an understanding of the economic challenges that developers face, particularly when using electrolysis to generate hydrogen from renewable electricity.

Addressing the cost barriers of green hydrogen production

Bradshaw noted that while electrolytic hydrogen is central to long-term decarbonisation efforts, it remains significantly more expensive to produce than grey hydrogen derived from fossil fuels. One of the biggest obstacles is the cost of moving electricity across the grid, which can sharply increase operational expenses. “The charges associated with moving that power over the grid can sometimes make the project economics difficult,” he explained, underlining why Maine’s approach is aimed at offsetting grid-related costs that often render green hydrogen projects uncompetitive.

By enabling access to power at a reduced rate, the state intends to create favourable conditions for developers and accelerate deployment. If successful, the project could offer Maine an early foothold in clean hydrogen infrastructure and serve as a model for other states exploring similar mechanisms to support emerging hydrogen markets.

Source: 

https://fuelcellsworks.com/2025/11/18/green-hydrogen/maine-seeks-green-hydrogen-developer-for-subsidised-clean-hydrogen-project