H2Tech - Q2 2021 - 30

SPECIAL FOCUS

PATHWAYS FOR SUSTAINABLE HYDROGEN

Source

Product

Process

Uses

Renewable electricity

Reﬁning and petrochemical

Water
Water electrolysis

Energy storage

CO2
Transportation
Natural gas

Current H2 production
(SMR)

Carbon capture and
storage

Exports

FIG. 2. Typical H2 production options and uses.
Louisiana
Lake Charles
Approx. 10 times
demand
growth projected

H2 demand and mix over time

Illustrative

H2 pipeline continues
to Baton Rouge
and New Orleans

Conroe
Green
(electrolysis)

Liberty
Houston
Baytown

Beaumont

100%
Blue
(SMR + CCUS)

Texas City

Gray (SMR)

Today

Galveston
2,050

Regional H2 strategy drivers

Global H2 market enablers

* Goals: 2,050 net zero or similar
* Funding: Carbon fees or other
* Leverageable assets (blue)
- H2 system
- At-scale CCUS hub
* Leverageable assets (green)
- Renewable generation
- Low power prices

* Cost and supply chain
improvements:
- Electrolyzers
- Renewables
* H2 and renewable synergies

FIG. 3. Strategy and drivers for a mixed H2 production system.

to develop green H2 chains to the extent that renewable energy
resources are available.
Emerging regional and country strategies, therefore, typically focus on the relative role and timing of two factors:
1. Evolving from an existing gray H2 to a blue H2 system
2. In parallel, developing a green H2 system.
An illustration of such an H2 mix strategy, as well as the drivers for how such a strategy would be customized by region, are
shown in FIG. 3.
30

Q2 2021 | H2-Tech.com

Freeport

H2 pipeline
H2 production unit
H2 storage caverns

FIG. 4. Existing H2 system in the U.S. Gulf Coast region. Sources:
H2Tools, USDOT-PHMSA, Air Liquide, Air Products, Praxair.

Texas' role in the H2 economy. The Texas Gulf Coast area an-

chors the world's leading H2 system, producing approximately
one third of U.S. total H2 gas per year. The system encompasses
an expansive network of 48 H2 production plants, more than
900 mi of H2 pipelines (more than half of the U.S. H2 pipelines
and one third of H2 pipelines globally), as well as geologically
unique and at-scale salt cavern storage (FIG. 4).
Today, this system primarily serves the U.S. Gulf Coast's
refining and petrochemical industry. By leveraging this system
through coupling gray H2 production with CCUS, there is the
potential to bring substantial volumes of H2 to new markets
rapidly and at scale.
The eastern portion of the U.S. Gulf Coast H2 system overlays existing CCUS infrastructure-the Denbury system,
which was developed to bring CO2 to recover oil reserves

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