Officials in the city of Houston are working to set the city up as the emerging hydrogen hub of the future.
The global shift to decarbonization has accelerated. In just the past few weeks, supermajor oil companies such as ExxonMobil, Shell, TotalEnergies, Chevron and bp have announced various new initiatives to reduce their carbon footprint, with hydrogen recognized as a key component in the energy transition.
As far back as 2019, Houston was being identified as a key area for the development of the hydrogen industry. In that year, the Center for Houston’s Future (CHF) released an economic viability study in a whitepaper, "Houston Region: Becoming a Global Hydrogen Hub," that assessed Houston’s long-term economic outlook given the close ties between the oil and gas (O&G) sector and the region’s economic success.
The study found that Houston had outperformed economically versus peer cities, and that this growth was driven primarily by the O&G sector. However, considering the impact of the 2014 oil price crash, the study concluded that Houston would do well to diversify itself.
“Developing a broader hydrogen economy, for example, was identified as an option among other low-carbon leadership opportunities that would result in new high-multiplier jobs and make use of the region’s significant skills and capabilities,” said CHF officials in the whitepaper.
According to CHF President and CEO Brett Perlman in a recent webinar, "Houston’s Emerging Hydrogen Hub," Houston’s assets include a large engineering workforce with vast energy experience; existing large-scale energy and industrial infrastructure; significant renewable generation capacity; a business-friendly ecosystem; and easy access via the Port of Houston, one of the largest ports in the U.S.
Perlman said in a September op-ed piece in the Houston Chronicle that to decarbonize the globe, “we need a lot of clean hydrogen and we need it soon.”
He said the effort will require billions in government and private sector investment. While it won’t be easy or cheap to transform hydrogen into a fuel to fight climate change, there’s no question the Houston region is the logical place for a clean hydrogen hub, Perlman added.
“Houston is well positioned to lead in the creation of hydrogen from natural gas and carbon capture,” Perlman said. “Texas is not only the nation’s largest hydrogen production sector, but we also lead in wind-powered renewable energy and has led in planned solar installations, which will be key to producing low-cost “green” hydrogen.”
