H2Tech - Q2 2021 - 29

SPECIAL FOCUS: PATHWAYS FOR SUSTAINABLE HYDROGEN

Transforming Texas into a
global hydrogen hub
A. STEINHUBL, Vice Chair of the Board, The Center for Houston's Future, Houston, Texas

The global shift to decarbonization, earlier catalyzed by the
Paris Accord and the related realization of the imperative to
limit future global warming, has accelerated. The COVID-19
pandemic has raised awareness of the relationship between economic activity, energy consumption and the environment. The
presently carbon-intensive energy system must be decarbonized to meet the dual challenges of expanding energy demand
and producing cleaner energy. The potential for economic recovery stimulus through investment in clean energy infrastructure has been embraced by multiple regions and nations. The
US is among them, upon the election of President Joe Biden
and his stated priorities and initial actions to move toward a less
carbon-intensive energy system.
These global and national trends overlay Texas energy transition imperatives, and perhaps surprisingly, the state's new
opportunities. An expanded hydrogen economy is one option
among other, interrelated, low-carbon leadership opportunities
that include increased application of carbon capture, use and
storage (CCUS), expanded electrification and further penetration of renewable power.
Moreover, an expanded Texas H2 sector would leverage
multiple aspects of existing energy system infrastructure and
other Texas resources. Additionally, H2 system expansion
would take advantage of the state's significant labor, corporate,
and academic institution capabilities, enabling the delivery of
capital-intensive commodities to global customers both safely
and cost efficiently.
The Center for Houston's Future and the University of
Houston, with support from other key collaborators, conducted assessments to identify opportunities for expanding clean H2
value chains in Texas and to develop a vision and roadmap to
enter and expand new markets for H2. The institutions looked
beyond the considerable existing H2 production and use in the
Houston Gulf Coast region, which is predominantly used for
oil refining and petrochemical feedstock. The purpose of this
article is to summarize the outcomes of that work.
Hydrogen's role in decarbonization. The push by many
regions and nations to develop decarbonization plans has increased the focus on the unique and multiple potential roles of
H2 in a low-carbon energy system (FIG. 1).
Since the start of 2020, multiple regions have developed strategies to use H2 in achieving decarbonization goals, including the
European Commission and several European countries (Germany, the Netherlands, Norway, Portugal, Spain and France).

Preeminent energy companies, including Shell, BP and Repsol, have also made low-carbon commitments and announced
plans for H2 projects to help meet their commitments. Such
plans help explain why substantial growth in the market for H2
gas and related equipment, such as electrolyzers and fuel cells, is
projected by the Hydrogen Council at $2.5 T by 2050.
Today, most H2 is manufactured using natural gas (or in
some regions, coal) to provide methane input for steam methane reforming (SMR). H2 is stripped in the process, creating
CO2 as a byproduct. H2 produced in this manner is known as
gray H2. When gray H2 production is coupled with CCUS, it is
termed blue H2.
An alternative pathway to creating H2 is via electrolysis of
water, splitting a water molecule into H2 and O2. When such
electrolysis is powered with renewable energy, such as wind or
solar, the H2 produced is known as green H2. FIG. 2 illustrates
these two primary H2 pathways.
The preferred path, or combination of paths, to achieve the
required rampant expansion in H2 will vary by region. Industrial areas with existing refining operations and petrochemicals
production (e.g., the Netherlands, Germany and the U.S. Gulf
Coast), which currently produce extensive H2 through SMR
technology, will look to exploit their existing infrastructure to
create blue H2. Less industrialized countries and those without
indigenous fossil resources will likely either import H2 or seek

FIG. 1. Hydrogen's unique advantages and critical roles in
decarbonization.
H2Tech | Q2 2021

H2Tech - Q2 2021

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