Hydrogen Production Stumbles as PGE and Mitsubishi Power Abandon Boardman Hub

Portland General Electric and Mitsubishi Power just threw a serious curveball at the Pacific Northwest’s hydrogen dreams. By walking away from the planned Boardman, Oregon hydrogen production and storage complex, they’ve dealt a blow to the taxpayer-funded Pacific Northwest Hydrogen Hub (PNWH2 Hub).

Boardman Project Collapse

Remember that initial $27.5 million federal grant and the whisper of up to $1 billion in total funding? The PNWH2 Hub was supposed to ignite a wave of clean hydrogen via electrolysis. But after Mitsubishi Power’s exit and PGE’s announcement on January 8, 2025, things went quiet. Local partners—who were banking on Northwest hydropower and cheap renewables—are now left picking up the pieces.

Why It Fell Apart

• Partner Withdrawal: Mitsubishi Power’s unexpected pull-out snatched away the engineering expertise and financial backing the project needed.
• Economics Under Strain: Sky-high upfront costs, shaky utility rate impacts, and a shrinking window on hydrogen tax credits (set to expire end-2027) made any business case wobbly.
• Federal Review: DOE Secretary Chris Wright ordered a department-wide audit of hydrogen hubs, flagging “low value” ventures for potential defunding.

“It’s not just this site—hydrogen projects worldwide are getting delayed or canceled thanks to slow demand and steep costs,” analysts point out.

Wider Implications

The Boardman pull-out sends ripples across the region:

• Air Liquide had plans for a hydrogen liquefaction plant at Port of Morrow, tied to PGE/Mitsubishi’s supply. Now its timeline’s up in the air.
• Atlas Agro and AltaGas—working on green fertilizer and hydrogen-for-industry schemes near Richland and Ferndale—are still pressing ahead but must first lock in huge renewable power deals.
• First Mode exited the PNWH2 mix after filing for bankruptcy in late 2024.

These delays threaten jobs, stall new hydrogen infrastructure investments, and hamper regional efforts to decarbonize tough industries like heavy transport and fertilizer production.

Tech Snapshot

Green hydrogen through electrolysis splits water into H₂ and O₂ using renewable electricity—think wind, solar, and the region’s abundant hydropower. It’s a near-zero-emissions dream, but only if electricity stays cheap and plentiful.

Strategic Angle

With the hydrogen tax credit construction window slamming shut in 2027, developers face a classic crunch: race to build at higher capex risk, or stall and forfeit subsidies. Utilities like PGE dread passing extra costs to ratepayers, while shaky national policy has investors looking elsewhere. These financial headwinds threaten to stall wider hydrogen infrastructure and derail the region’s sustainable energy goals.

Maverick’s Take

Look, I’ve seen plenty of flashy hydrogen announcements, but the Boardman fiasco is a cold splash of reality. You can’t paper over tough economics or the need for rock-solid power. Sure, the Northwest’s hydropower edge is real, but if your numbers don’t pencil out, you’re sunk. And let’s be honest—a project that’s not on the DOE’s “approved” list might as well not exist.

So what’s next? Do regional players pivot to smaller, modular electrolyzers? Or shift to other decarbonization paths? That’s the million-dollar question.

For now, the Pacific Northwest’s hydrogen ambitions are on ice—until someone cracks the code on cost and policy certainty.

About the Companies

Portland General Electric, based in Oregon, is a leading regional utility pushing clean projects into the grid. Mitsubishi Power, part of Mitsubishi Heavy Industries, brings turbines and hydrogen engineering solutions to the table.

What’s Next

Regional leaders—Senators Maria Cantwell, Ron Wyden, Jeff Merkley, and Patty Murray—are rallying to defend hub funding. But even staunch political backing only goes so far when the financials just don’t add up.

Closing Insight

If hydrogen’s meant to be your bridge fuel, you’d better hope someone finishes building it before the funding cliff sends us tumbling.