A host of Texas-based energy companies, enticed by the prospect of its cleaner and eco-friendly properties, believe hydrogen can revolutionize the fuel industry.
Near Spindletop, the birthplace of modern oil and gas in southeast Texas, French company Air Liquide has erected a hydrogen storage facility, signifying the shift towards a future of clean energy. The site stores some 4.5 billion cubic feet of highly pressurized hydrogen approximately a mile underground. Advocates propose the gas as a climate change solution, envisioning a future wherein it fuels a variety of vehicles and aids energy-intensive sectors.
Nevertheless, clean hydrogen production at a cost competitive with conventional fuels remains a significant barrier. Currently, obtaining hydrogen often requires isolating it from methane, the primary component of natural gas, leading to the emission of climate-worsening carbon dioxide.
Despite these challenges, Texas is advancing as a leader in cheaper hydrogen production. Leaning on the state’s plentiful natural gas supplies, companies like Air Liquide manufacture hydrogen at facilities spread along the state’s coast. These facilities deliver hydrogen via extensive pipelines to businesses across various sectors.
However, clean, emission-reducing hydrogen production is still a rare practice in Texas and the U.S. A shift towards hydrogen with reduced emissions would necessitate governmental support, a skilled workforce, and vast natural gas and renewable energy sources – all of which Texas holds in abundance.
The hydrogen industry’s development is receiving substantial support from the U.S. federal government. Billions in tax credits are being offered for hydrogen production initiatives from gas with carbon capture or water. Additionally, up to $1.2 billion is projected for projects in Texas and Louisiana focused mainly on natural gas-based hydrogen production.
Traditional fossil fuel companies like Chevron and ExxonMobil are aiming to penetrate the industry, hinging their hopes on their financial and experiential wealth. However, environmental groups harbor doubts around their ability to produce hydrogen from natural gas cleanly and fear federal funding may primarily support the oil and gas industry.
Hydrogen is touted as a potential solution to decarbonizing industries that are challenging to electrify. Sectors relying on heavy machinery, plane and truck transportation, and high-heat manufacturing processes could significantly benefit from hydrogen’s adoption. With governmental subsidies, hydrogen production from water or natural gas could compete effectively with fossil fuels in the near future.
Despite this, environmental groups and other critics have expressed concerns. They claim that natural gas derived hydrogen with carbon capture sustains dependence on fossil fuels, rather than reducing it. Furthermore, there is skepticism around oil and gas companies’ promises to make hydrogen production cleaner.
