NEW MEXICO (KRQE) – The push to make New Mexico a key hydrogen-producing state could get significant financial support if the U.S. Department of Energy accepts the state’s latest proposal.

For years, New Mexico has worked to expand energy production capabilities, including hydrogen production. Hydrogen could provide a power source for new vehicles and the nation’s electricity needs. But getting to that point would take large up-front investments.

To help cover costs, the U.S. Department of Energy is offering billions of dollars in grants to states looking to create Regional Clean Hydrogen Hubs (H2Hubs). The funding is part of the Bipartisan Infrastructure Law pushed by the Biden Administration.

New Mexico, in collaboration with Colorado, Utah, and Wyoming, have put in an application to access some of that funding. The multistate group is called the Western Inter-State Hydrogen Hub (WISHH).

“Through bipartisan collaboration with states and project partners, we are advancing a vital economic development initiative that will power the nation and create thousands of jobs — all while reducing emissions,” New Mexico Governor Michelle Lujan Grisham said in a press release. “I look forward to the Department of Energy approving our plans for the premier hydrogen hub in the nation.”

New Mexico and nearby states might have competition in applying for funding. Nearly every state is working on some sort of hydrogen project, according to the Associated Press. The U.S. Department of Energy will take a look at grant applications this summer and is expected to make awards selections this fall.