DOE Selects Gulf Coast as Regional Clean Hydrogen Hub
The U.S. Department of Energy has selected the Gulf Coast as one of seven regional clean hydrogen hubs in the nation, with operations centered in Houston - positioning the region at the center of a global marketplace for clean hydrogen.
The HyVelocity Hydrogen Hub, which is led by seven core industry partners – AES Corporation, Air Liquide, Chevron, ExxonMobil, Mitsubishi Power Americas, Ørsted and Sempra Infrastructure – and includes other academic and supporting organizations, such as the Center for Houston’s Future, will receive up to $1.2 billion out of $7 billion in Bipartisan Infrastructure Law funding.
“As the energy capital of the world, Houston has the infrastructure, talent, and know-how to create and execute innovative low-carbon solutions to power the world and reduce greenhouse gas emissions,” Greater Houston Partnership President and CEO Bob Harvey said. “It is gratifying to see this being recognized by the Biden Administration as they move forward with the implementation of a wide variety of federal initiatives focused on enabling climate solutions.”
With more than 1,000 miles of dedicated hydrogen pipelines, 48 hydrogen production plants and dozens of hydrogen end-use applications, the Gulf Coast produces a third of the nation’s hydrogen gas annually. HyVelocity will build on the region’s diverse array of energy resources, including hydrogen production facilities and pipelines, renewable energy, a large base of industrial energy consumers, and a skilled workforce.
According to the DOE, the Gulf Coast hydrogen hub is expected to create approximately 45,000 direct jobs –35,000 in construction jobs and 10,000 permanent jobs.
“We look forward to spurring economic growth and development, creating jobs, and reducing emissions in ways that will benefit local communities and the Gulf Coast region as a whole,” said Brett Perlman, President and CEO of Center for Houston’s Future. “HyVelocity will be a model for creating a clean hydrogen ecosystem in an inclusive and equitable manner.”
The DOE’s Regional Clean Hydrogen Hubs (H2Hubs) will kickstart a national network of clean hydrogen producers, consumers and connective infrastructure while supporting the production, storage, delivery, and end-use of clean hydrogen. Clean hydrogen is a flexible energy carrier that can be produced from a diverse mix of domestic clean energy resources, including renewables, nuclear, and fossil resources with safe and responsible carbon capture. The six other hubs include:
Mid-Atlantic Hydrogen Hub (Pennsylvania, Delaware, New Jersey)
Appalachian Hydrogen Hub (West Virginia, Ohio, Pennsylvania)
California Hydrogen Hub
Heartland Hydrogen Hub (Minnesota, North Dakota, South Dakota)
Midwest Hydrogen Hub (Illinois, Indiana, Michigan)
Pacific Northwest Hydrogen Hub (Washington, Oregon, Montana)
Advancing hydrogen projects was a key focus when the Partnership launched the Houston Energy Transition Initiative (HETI) in 2021. HETI's Catalyzing the Energy Transition through Capital Formation report reveals the identification of 12 oil and gas-backed projects, encompassing various hydrogen and carbon capture initiatives. These projects are anticipated to attract approximately $110 billion in capital investment over the next five to ten years.
“Clean hydrogen will play a critical role in decarbonizing major industries and producing a variety of e-fuels,” said Bobby Tudor, HETI chairman and CEO of Artemis Energy Partners. “Being selected as a hydrogen hub is an important step" as it further solidifies Houston’s position as a global leader in energy transition.
See full statements from Bob Harvey and Bobby Tudor and learn about Houston's energy industry.