Between the Coasts: Texas

You may have heard “Everything is bigger in Texas”, and energy is no exception to that popular saying. In 2018, Texas was the number one producer of energy in the United States, at a total of 20,421 trillion British Thermal Units (BTU, a unit of energy), dwarfing the next biggest state by over 11,000 trillion BTU. With natural gas making up the bulk of energy production in the Lone Star state, that also applies to pollution. In 2017, Texas had the highest carbon emission of all 50 states, at a whopping 707 million metric tons, nearly double the second-ranking state of California. Industry, academics, and government officials in Texas are taking notice and advocating for cleaner forms of energy production. Positioned almost perfectly between the hydrogen-leading East and West coasts, Texas is geared for a hydrogen surge that could revolutionize its already thriving energy industry by providing a clean fuel that will cut emissions and the state can export to others in need.

Renewable Hydrogen

Texas already produces an enormous amount of hydrogen through large-scale production facilities for industrial purposes. While this sounds ideal, this hydrogen is mostly produced through steam methane reformation, a process that produces carbon dioxide. However, Texas’s promise for revolutionary hydrogen production for energy and transportation comes from the high potential to deploy production facilities alongside existing renewable energy sites, to make the production renewable. While Texas has an abundance of natural gas, its sheer size and geography have also allowed renewable energy to thrive. According to the American Wind Energy Association, Texas ranks first in the country for both installed and under construction wind capacity, with a current capacity of 30,217 megawatts (MW) and another 15,121 MW on the way (as of April 2020). For solar, Texas ranks fifth in the country with 4,606 MW installed and 14,466 MW expected over the next five years (as of first quarter 2020). Excess renewable energy can be used to generate hydrogen for vehicles, industry, storage, and more.

The availability of wind and solar is promising for Texas, with an added bonus that these renewable technologies are seeing decreasing costs. Companies are recognizing that they can utilize these resources to produce clean hydrogen. Dr. Alan Lloyd, a senior research fellow at the Energy Institute at the University of Texas at Austin states: “I’ve seen the greatest interest I’ve seen in hydrogen for two decades. Why is that? I think the major reason is the recognition from major companies now that if they’re going to do something about looking at a sustainable energy transition, if they are going to take climate change for real, they’ve got to look at decarbonization.”

Ideal for Hydrogen Vision

In 2019, the U.S. Department of Energy, through its H2@Scale initiative, funded a project focusing on Texas to develop wide-scale hydrogen production and utilization due to the state’s abundance of energy production, and current status as the largest hydrogen producer. In addition, there are key fuel cell and hydrogen industry players with a presence in Texas, such as FCHEA members Air Liquide and Toyota.

Air Liquide owns, near Beaumont, Texas, the world's largest hydrogen storage cavern which is connected to one of its two hydrogen pipeline systems totaling over 300 miles along the Texas Gulf Coast, supplying over 1,000 tons per day through its five facilities across the state.

Frontier Energy and The University of Texas at Austin, leading that project, have a plan that consists of two research and development tracks that focus on renewable hydrogen generation options with fueling for fuel cell vehicles, as well as the development of a framework for H2@Scale projects at the Port of Houston and the Gulf Coast Region. The project was awarded $5,400,000.

In September 2020, the project launched, adding more partners including FCHEA member PowerCell. The full H2@Scale project is broken into two parts, one that integrates commercial hydrogen production, distribution, and storage with solar- and wind-powered electrolysis, and a large-scale feasibility study for hydrogen production and use at the Port of Houston. The study will investigate policies, regulations, and economics surrounding bringing hydrogen to scale.

As mentioned earlier, Texas produces a great deal of hydrogen already through steam methane reformation. Due to the vast amount of hydrogen produced, Texas already has access to approximately 1,600 miles of hydrogen pipeline infrastructure throughout the Gulf Coast. Texas has the potential to introduce renewable hydrogen into the pipelines, transporting renewable energy across states and further decarbonizing the country.

An excellent example of Texas’s hydrogen pipeline infrastructure capabilities is the January 2020 investment from FCHEA member Air Products. The industrial gas company committed $500 million to build its largest-ever steam methane reformer in Texas City, Texas, and connect the facility to its Gulf Coast pipeline, while also extending the pipeline to 700 miles. In total, Air Products is expecting to supply customers with over 1.7 billion feet of hydrogen per day using its 24 production facilities. Hydrogen of all kinds has the potential to benefit from the expanding infrastructure, making investments of this kind critical to the development of the hydrogen economy.

Texas also has many interested parties of all kinds. FCHEA newcomer Baker Botts, with offices in Austin, Dallas, and Houston, Texas, is an international law firm that is deeply entrenched in the energy and technology fields, and they are looking to grow their hydrogen business in anticipation of the hydrogen economy.

Texas as a Leader

Texas is an influential state, especially with its hold on the energy market. By bringing hydrogen fuel into the fold, and proving its viability, Texas has the potential to spread the technology to surrounding states and be integral to a nationwide hydrogen economy. It is time that Texas focuses on clean hydrogen energy as a component of the larger clean energy future.