Texas companies race to develop hydrogen as a fuel

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Supporters say developing hydrogen as a fuel is critical to slowing climate change. Critics are concerned that producing it with fossil fuels will prop up the oil and gas industry.

Air Liquide’s facility manager Craig Allen at the company's hydrogen storage facility near the site of the historic Spindletop oil well on Sept. 5, 2023 in Beaumont.on emerging energy sources and Texas' role in developing them. Part two, on geothermal energy, publishes Tuesday, and part three, on small nuclear reactors, will publish on Wednesday.

Hydrogen promoters see the gas as a crucial part of addressing climate change. If it’s produced in a way that creates few or no greenhouse gas emissions, it could provide an eco-friendly fuel for cars, planes, 18-wheelers and ships, and could power energy-intensive industries such as steel manufacturing. Hydrogen emits only water when used as fuel.

Little hydrogen is made from gas with carbon capture or from water in the state — or the rest of the country. That effort is getting a boost from the federal government, which is offering billions of dollars’ worth of tax credits to kick-start production of hydrogen from gas with carbon capture or water. The government also plans to divide as much as $7 billion among seven regional clusters of projects to build hydrogen infrastructure, including up to $1.2 billion for projects in Texas and Louisiana that plan to make hydrogen largely from natural gas.

Katie Ellet, left, president of hydrogen energy and mobility for Air Liquide, walks past Facility Manager Craig Allen at the company's hydrogen storage facility.Sitting in a mobile office at the Spindletop site, Katie Ellet, president of hydrogen energy and mobility for Air Liquide, urged critics not to be so puritanical about hydrogen production. She described hydrogen as part of a centuries-long evolution toward progressively cleaner fuels: coal replaced wood, then oil replaced coal.

People have predicted hydrogen was about to take off before. Weeks worked on the idea off and on since the late 1990s, when he was at Texaco and the company believed hydrogen could power cars. At the time, they worried energy prices would keep rising. Weeks recalled it as a heady time for hydrogen, with actors from the hit TV series Baywatch starring in promotional videos.

The Gulf Coast projects aimed to produce more than 1.8 million metric tons of hydrogen per year, more than any of the other winning hubs. Some 80% would be made from natural gas. Back at the same conference where Weeks spoke, Texas Public Utility Commissioner Lori Cobos, whose agency regulates the electricity industry, explained that because it has huge natural gas reserves and is a top producer of wind and solar energy, Texas is “uniquely positioned to be a national and global leader in hydrogen.”

“This is not a transfer off of fossil fuel dependency,” said Jane Patton, campaign manager for U.S. fossil economy at the Center for International Environmental Law. “This is a perpetuation of fossil fuel dependency.” “You’re asking the same people to sacrifice in the same way,” Bullard said at the event. “Can we trust the oil and gas industry to be truthful? I don’t have to write a book on that. We know the answer.”

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