Sacramento, CA – Building from a foundation of nation-leading policies and new hydrogen system market development, Governor Newsom’s administration is announcing California’s intention to leverage federal investment from the Infrastructure Investment and Jobs Act (IIJA) to establish an environmentally and economically sustainable and expanding renewable hydrogen hub. Administration officials, led by the Governor’s Office of Business and Economic Development (GO-Biz), will continue working with public and private stakeholders, including California’s legislature and leading municipalities such as Los Angeles, to submit one state co-funded application.

In the May Revise budget, Governor Newsom proposed direct investment in green hydrogen production, in addition to numerous pots of funding that can be leveraged to accelerate hydrogen market development, including zero-emission vehicle market acceleration, industrial decarbonization, and long duration energy storage. Additionally, the administration is committed to collaborating with neighboring states and initiatives to create a resilient supply and delivery chain, helping to facilitate success and learnings across multiple markets.

“California has the market experience, workforce talent, public and private investment base, and renewable resources to partner with the federal government to create an economically resilient, expanding hydrogen hub that helps accelerate national success,” said Dee Dee Myers, Director of GO-Biz and Senior Economic Advisor to Governor Newsom. “GO-Biz is leaning in on our deep experience with the hydrogen industry and working with multiple stakeholders to organize a statewide application aimed at one fundamental concept: getting to scale in California and beyond.”

“Our recently published draft Scoping Plan Update makes it clear that renewable hydrogen has an important role to play in reaching our economy wide climate and air quality targets,” said California Air Resources Board Chair Liane Randolph. “We are committed to collaborating with all stakeholders to continually improve our robust policy framework to enable rapid renewable hydrogen market development.”

“The need for renewable hydrogen is clear, especially as we develop systems to store and use renewable electricity,” California Energy Commission Chair David Hochschild stated. “We need federal, state, and private investment to accelerate market development to ensure we meet our carbon neutrality goals—and we are excited to work with stakeholders to build a world class hydrogen hub and believe that federal investments in green hydrogen in California will benefit the state and the nation.”

“The California Public Utilities Commission is committed to working with stakeholders to help define the role of investor-owned utilities in the hydrogen market ecosystem,” said Commissioner Clifford Rechtschaffen. “Renewable hydrogen can play a variety of important roles in a decarbonized economy.” 

“From public transit to long-haul trucking, low-cost, renewable hydrogen is one of the key components in our efforts to rapidly reduce pollution from the transportation sector,” said California State Transportation Agency Secretary Toks Omishakin. “Hydrogen fuel cell vehicles of all types – including cars, heavy-duty trucks, buses, rail and watercraft – are an ideal complement to battery-powered vehicles as part of a diversified and sustainable transportation system. The hydrogen hub will help lower costs and accelerate California’s transition to a zero-emission future.”

A federally co-funded hydrogen hub in California would accelerate our collective transition to a carbon-neutral economy, creating the scale needed to drive down cost for businesses and consumers alike, all while creating high paying jobs. Near term hub activities will center on deep investments in electrifying port operations, goods movement, transportation, and energy system resilience. Parties interested in submitting project ideas for consideration can add their information in this form. 

About GO-Biz
The Governor’s Office of Business and Economic Development (GO-Biz) serves as the State of California’s leader for job growth and economic development efforts. GO-Biz offers a range of services to business owners including: attraction, retention and expansion services, site selection, permit streamlining, clearing of regulatory hurdles, small business assistance, international trade development, assistance with state government, and much more. For more information visit the GO-Biz website.

Heather Purcell
Deputy Director of Communications
Email Heather, HERE

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Sacramento, CA – Today, the Governor’s Office of Business and Economic Development (GO-Biz) announced $120 million in California Competes (CalCompetes) grant awards that are projected to create more than 7,615 new, full-time jobs in California and bring over $3.3 billion in new investments to the state over the next 5 years.

In addition, GO-Biz announced $66.4 million in tax credits that are projected to create more than 3,992 new, full-time jobs in California. These awards will bring more than $645 million in new investments to the state over the next 5 years.

Together, the two programs account for the most jobs ever committed to California during one CalCompetes application period.

CalCompetes plays a pivotal role in attracting and retaining startups and established companies alike, who in turn create good-paying jobs and increased economic opportunity for California workers.

“This was the first time we were able to offer grants as part of the CalCompetes program, and it was a huge success, resulting in the highest job commitment total for any single CalCompetes application period in the program’s history,” said Dee Dee Myers, Senior Advisor to Governor Newsom and Director of GO-Biz. “This one-time, $120 million grant program received more than $3.4 billion in requests, showing beyond a doubt that companies want to invest, grow and create jobs in California. And the incentives that CalCompetes provides are a great deal for taxpayers, bringing family-supporting jobs and investment to our state that would otherwise go someplace else.”

In exchange for a $30 million grant, Silicon Valley stalwart Applied Materials, Inc. will create at least 683 full-time jobs and invest $2 billion to develop and deliver next generation semiconductor manufacturing equipment. This grant will be vital to Applied Materials’ ability to secure federal CHIPS Act funding designed to bring semiconductor and microchip manufacturing back to the US.

“From our earliest days as a startup, Applied Materials has helped shape the future of Silicon Valley and secure American leadership in semiconductor technology,” said Joe Pon, Corporate Vice President of Applied Materials, Inc. “The CalCompetes grant will play a pivotal role in our ability to attract federal funding to California and strengthen the state’s role in the development of advanced chips in the U.S. We are grateful to GO-Biz and Governor Gavin Newsom for their commitment to ensure that California remains a global leader for technology innovation.”

SPARKZ, Inc. received a $5 million grant to establish a manufacturing facility in the Central Valley for cobalt-free, lithium-ion batteries and create over 800 new, full-time jobs. By removing cobalt from the formula, these batteries will be less expensive to manufacture, easier to recycle, and better for the environment.

“SPARKZ is re-engineering the battery supply chain by eliminating cobalt and setting our sights on making high-performing, sustainable EV batteries in America. The support of Governor Newsom through this GO-Biz California Competes grant will allow our company the ability to hire Californians, build our manufacturing facility and play a role in solving the climate crisis,” said founder and CEO Sanjiv Malhotra.  “America’s clean energy future will reach its potential when we innovate and manufacture the next generation of energy storage domestically and California is leading that effort.”

Additional awardees include Hawthorne-based electric aircraft manufacturer, Ampaire, Inc., and Universal Hydrogen Co., who is developing technology to replace standard aircraft fuel with hydrogen systems. Additionally, La Jolla’s Viridos, Inc. is using their award to open a pilot biofuel manufacturing facility in Imperial County’s Calipatria that will make environmentally friendly, low-emission fuel from algae.

“California has always been at the forefront of green technology development. We are thrilled that businesses like Ampaire, Universal Hydrogen, and Viridos have chosen California for these vital projects that will help California meet its carbon reduction goals and mitigate the extreme impacts of climate change,” said CalCompetes Deputy Director Scott Dosick. “We especially appreciate supporting companies like Viridos that choose to invest in areas such as Imperial County that have suffered too long from chronically high unemployment and poverty levels.”

“Viridos is committed to working with the heavy transportation sector to reduce its climate impact. We are honored to receive this grant from Governor Newsom and California Competes, which will enable Viridos to continue our mission of bringing low-carbon, algae-based sustainable aviation fuel and renewable diesel to the transportation marketplace,” said Viridos CEO Oliver Fetzer. “We are proud of our continued commitment to keeping California as our base and our continued legacy of bringing high-quality jobs to the Imperial Valley.”

The complete list of approved companies and award amounts is available online.

The California Competes Tax Credit was created in 2013 to focus on helping businesses grow and stay in California. GO-Biz evaluates the most competitive applications based on the factors required by statute, including total jobs created, total investment, average wage, economic impact, strategic importance and more. In 2018, the program was extended for an additional five years with at least $180 million in tax credits available for allocation to business each year through 2023.

About GO-Biz
The Governor’s Office of Business and Economic Development (GO-Biz) serves as the State of California’s leader for job growth and economic development efforts. GO-Biz offers a range of services to business owners including: attraction, retention and expansion services, site selection, permit streamlining, clearing of regulatory hurdles, small business assistance, international trade development, assistance with state government, and much more. For more information visit the GO-Biz website.

About Applied Materials
Applied Materials is the leader in materials engineering solutions used to produce virtually every new chip and advanced display in the world. Their expertise in modifying materials at atomic levels and on an industrial scale enables customers to transform possibilities into reality. At Applied Materials, their innovations make possible a better future.

About SPARKZ
Founded in 2019 by industry veteran and former U.S. Department of Energy executive Sanjiv Malhotra, SPARKZ will begin commercialization of a high energy-density Cobalt-free, American-made Lithium-ion battery, while continuing its groundbreaking research and development focused on re-engineering the rest of the battery supply chain. SPARKZ has completed the transfer of 6 patents from the U.S. Department of Energy’s Oak Ridge National Laboratory, which continues to be an R&D partner. In addition to being 100% cobalt-free, the patents also reduce production time significantly and enhance battery performance.

About Viridos
Viridos (formerly Synthetic Genomics, Inc) is a privately held biotechnology company harnessing the power of photosynthesis to create transformative solutions to mitigate climate change. Their unparalleled understanding of algal genetics and ability to translate innovation from lab to field underpins their initial deployment: a scalable platform to produce low-carbon intensity biofuels for aviation, commercial trucking, and maritime shipping. Building on a legacy of genomic firsts, their team of scientists and engineers are shaping new pathways toward a sustainable bioeconomy.

Heather Purcell
Deputy Director of Communications
Email Heather, HERE

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Partnership with national warehouse marketplace, Chunker, targets storage needs

SACRAMENTO – The Newsom Administration announced today that six California sites have been identified and leases have been signed to allow for the storage of shipping containers on state property to help alleviate congestion at California ports,

The effort is result of Executive Order N-19-21, which aims to  strengthen the resilience of California’s and the nation’s supply chains.

“California has taken swift action to keep goods moving at the state’s ports, leveraging our strategic partnerships to develop multifaceted solutions, including securing additional storage space for thousands of shipping containers,” said Governor Newsom. “These efforts are a vital investment to help meet the needs of not only Californians, but our entire nation, and we’ll continue advancing innovative solutions to address this global challenge.”

Chunker, the national warehouse marketplace, has leased the six sites from the state Department of General Services for one year, with an option for a second year. The sites include three armories (in Lancaster, Palmdale, and Stockton), a former prison site (Deuel Vocational Institute in Tracy), and two fairground sites (San Joaquin County and Antelope Valley Fairgrounds). Chunker will coordinate between California ports, shipping/trucking companies, and cargo owners to help move containers and free up needed space elsewhere.

“The unprecedented challenges we face to resolve supply chain issues require action, and today’s announcement is just one of the many ways the Administration is working to ease congestion to help keep goods moving,” said Yolanda Richardson, Secretary of California’s Government Operations Agency.

Department of General Services Director Ana M. Lasso said her department is continuing to build on partnerships to ease supply chain issues.

“California is on top of prioritizing the storage needs that have slowed distribution at ports on our coast,” she said.

Since the Governor signed Executive Order N-19-21 in October, notable actions have included:  

• A strategic partnership between the California State Transportation Agency (CalSTA) and the U.S. Department of Transportation for up to $5 billion in loan financing to advance a comprehensive, statewide portfolio of freight, goods movement and supply chain resiliency projects.

• Issuing temporary permits allowing trucks to carry increased loads on state highway and interstate routes between the ports of Los Angeles, Long Beach, and other statewide ports to expedite transport of international commerce between ports and distribution centers.

• Doubling the Department of Motor Vehicles’ capacity to conduct commercial driving tests to address the national shortage of workers in the industry.

• Securing a 22-acre pop-up site, in partnership with the California Department of Food and Agriculture and the U.S. Department of Agriculture, located at the Port of Oakland to assist agricultural exporters in storing products and getting them onto containers. This site is expected to be operational on March 1.

“The on-going supply chain crisis requires an all hands-on-deck approach, as we work with our partners to meet the needs of California’s families and businesses,” said Dee Dee Myers, Director of the Governor’s Office of Business and Economic Development. “By creating additional storage space for shipping containers, we can relieve some of the congestion at our ports, keep our imports and exports flowing and strengthen our economy.”

In addition, the Governor’s California Blueprint proposes $2.3 billion for supply chain investments next fiscal year, including $1.2 billion for port, freight, and goods movement infrastructure and $1.2 billion for other related areas such as workforce training and zero-emission vehicle equipment and infrastructure related to the supply chain.

This funding would improve supply chain resiliency and be used to leverage federal funding.

The state also worked with the Biden-Harris administration to implement a new 24/7 environment across the supply chain, to improve collaboration, and to explore policies to remove obstacles and improve the movement of goods.

“Container storage is a major component of the congestion at the ports as well as a part of the nationwide supply chain crisis,” said Brad Wright, CEO of Chunker.  “We are thrilled to partner with Governor Newsom and the state of California to create a solution that will have a major impact on the problem.  Having access to the state property will allow us to store 20,000 containers or more, which will free up a significant amount of space at the ports.”

About GO-Biz
The Governor’s Office of Business and Economic Development (GO-Biz) serves as the State of California’s leader for job growth and economic development efforts. GO-Biz offers a range of services to business owners including: attraction, retention and expansion services, site selection, permit streamlining, clearing of regulatory hurdles, small business assistance, international trade development, assistance with state government, and much more. For more information visit the GO-Biz website.

Heather Purcell
Deputy Director of Communications
Email Heather, HERE

Department of General Services
Office of Public Affairs
Email DGS, HERE

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