Hydrogen Hub on the Gulf Coast Set for Development of Clean Energy and Jobs
Scientists have long sought to effectively harness hydrogen as a clean power source. The earliest hydrogen fuel cell prototype, in fact, was developed in 1839, though American hydrogen research really took off after NASA used hydrogen fuel cells to power rockets in their race to space.
The Gulf Coast was famously instrumental in journeying to the stars, and with plans for a massive new hydrogen hub on the way, it is also poised to help build the clean energy infrastructure of the future.
The HyVelocity Hydrogen Hub is a collaboration between seven energy producers in the Houston area and is receiving funding from the Biden administration’s Bipartisan Infrastructure Law. It’s one of seven such hubs being developed around the country and is expected to create 45,000 direct jobs – 35,000 in construction and 10,000 permanent positions — according to the Department of Energy. With this influx of funding and passion, the energy sector in Texas could be at the center of a clean power renaissance.
Why the Gulf Coast?
In some ways, the Gulf Coast is already a “hydrogen hub.” The region has 48 hydrogen plants and dozens of hydrogen end-use applications. It currently produces one third of America’s hydrogen gas every year.
“There’s been a hydrogen economy here for a very long time, whereas some of the other hubs are essentially building it from scratch,” Alan Alexander, a Houston-based partner at law firm Vinson & Elkins specializing in hydrogen deals, told Canary Media.
However, the current industry isn’t much more environmentally friendly than other energy production. Air Liquide alone makes 116.5 million standard cubic feet of hydrogen per day at their La Porte steam methane reforming facility, but they and other reformers in the area vent carbon dioxide into the atmosphere during the process. Methane reforming to produce hydrogen currently generates about one quarter of industrial emissions in the greater Houston area, contributing to greenhouse gasses.
The major goal of the new HyVelocity hub is to build infrastructure for more environmentally-friendly ways to produce hydrogen—and do it at scale. DOE funding will go into building new facilities in the region as well as collaborative projects between groups producing hydrogen. Using solar, wind, and other renewable power available in Texas, water molecules are split, and hydrogen can be produced completely cardon-free. Capturing and storing CO2 underground when generating hydrogen from natural gas will also significantly help to reduce emissions.
“So there’s two technologies becoming cost competitive,” Brian Kogel, director of the Energy institute at UT Austin and the lead academic partner for HyVelocity, told the Texas Standard news show. “I think this hub funding is going to be the catalyst to start to scale the technologies and make it cost-effective.”
Readying the Workforce
Besides reducing pollution and curbing climate change, the clean hydrogen economy will require many skilled workers to build and maintain pipelines and storage caverns, as well as handle pressurized gas. The work of the HyVelocity hub will also center on workforce education and development.
Texas schools will be a major part of the hydrogen renaissance. The University of Texas at Austin has already cut the ribbon on a hydrogen ‘proto-hub’ that is focusing on research, demonstration, and education while powering projects with clean hydrogen. The university facility will be a pivotal testing ground for projects across the HyVelocity hub.
Resources for Starting or Relocating Your Business in the Gulf Coast
As funds flow into the region for forward-thinking energy projects, you might be interested in being part of the exciting Texas Gulf Coast economic development happening every day. If you want to start a new business or relocate your business to Texas, sign up for the Texas Economic Development Corporation E-Newsletter to keep up with news and opportunities.
