The Biden administration put $7 billion into "hydrogen hubs." Critics smell a boondoggle.

The Biden administration announced $7 billion in funding for seven hydrogen hubs, slated to be built across the country over the next eight to 12 years .

The Mid-Atlantic Clean Hydrogen Hub (MACH2) is projected to create roughly 20,800 jobs in the Delaware Valley region, of which 6,400 will be permanent.

Hydrogen production could power steelmaking, cement production, and other energy-intensive heavy industries, which account for more than a fifth of national carbon emissions.

MACH2 is working with the Pennsylvania Department of Energy Department to develop hydrogen production hubs.

The seven hubs combined are projected to reduce annual greenhouse gas emissions by 25 million metric tons of CO2 a year .

But the industry still faces headwinds over its potential costs and benefits.

A recent report says making green hydrogen to power planes and heavy-duty vehicles is neither economical nor efficient.

For hydrogen to be truly sustainable, green hubs would need to abide by three main tenets: buying electricity from newly built renewable energy sources, matching their hourly use with the availability of green energy.

Experts continue to grapple with the potential significance, and value, of the proposed hubs.

Legislators and industry groups are already indicating they will challenge a proposed additionality requirement.