CHICAGO, Ill. (WTVO) — Illinois, Indiana, and Michigan will receive $1 billion in federal funding to create an energy network to reduce carbon emissions.

“The fight against climate change and the path toward a sustainable future requires innovative solutions,” said Gov. JB Pritzker. “Through this collaborative partnership with our neighbors and with the federal government’s support, we will foster a healthy economic environment for the hydrogen production market, while creating more clean energy jobs and lowering emissions across the region.”

The estimated annual carbon emission reduction of these sectors is equivalent to removing the emissions of more than 867,00 gasoline-fueled cars, the governor’s office said.

The funds are part of a Biden administration plan to create energy hubs — clusters of facilities located in the same geographic area aiming to produce and consume hydrogen — as well as related infrastructure like pipelines.  

The hubs will be located in Appalachia, California, the Gulf Coast, the Mid-Atlantic, the Midwest the Pacific Northwest and an area referred to as the “Heartland” that encompasses the Dakotas and Minnesota. 

The Midwest Hub will power steel and glass production, heavy-duty transportation and aviation and will produce hydrogen from renewables, gas and nuclear. 

Hydrogen energy is created by separating hydrogen from oxygen in water molecules, producing hydrogen energy.