The U.S. Department of Energy announced California as one of seven regions selected as a “hydrogen hub.” The Golden State will receive up to $1.2 billion to go with the designation to accelerate the development and implementation of clean, renewable hydrogen.

The California Hydrogen Hub encompasses three ports: Los Angeles, Long Beach and Oakland. One of the goals of the initiative is to power the ports with carbon-free power, which would cut the equivalent of pollution from 445,00 gas-powered cars annually, according to estimates.

The Alliance for Renewable Clean Hydrogen Energy Systems (ARCHES), a statewide public-private partnership, anticipates partnering with more than 400 organizations representing civic, business, labor, transportation and communities across the state, reported the California Chamber of Commerce.

ARCHES estimates these projects would create more than 200,000 new jobs and result in $2.98 billion per year in economic value starting in 2030.

Hydrogen offers options, as it’s produced from various domestic resources including solar, wind, nuclear, biomass and even natural gas with “safe and responsible” carbon capture, according to the CalChamber.

The economic and environmental benefits are clear — hydrogen should be a key part of California’s future energy mix and this $1 billion in support is well-spent.