Texas energy companies are betting hydrogen can become a cleaner fuel for transportation

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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 Liquides 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.

If companies can produce clean hydrogen at a price that’s competitive with gasoline or diesel, supporters say it would revolutionize the fuel industry.Hydrogen is among the most common elements in the universe, but on Earth it’s typically found bonded with something else, such as carbon. Today, hydrogen is often obtained by isolating it from methane, a mix of carbon and hydrogen that is the main component of natural gas.

Some academics, policy advisers and companies that make hydrogen say Texas and the Gulf Coast should be where hydrogen created with fewer emissions takes off. A majority of the country’s hydrogen pipelines are already here, Texas’ petrochemical workers have skills that easily transfer to hydrogen production — which involves chemical reactions — and the state has the natural gas and renewable energy needed to produce it.

Competing to break into the industry are traditional fossil fuel companies, including Chevron and ExxonMobil. Hydrogen advocates say interest by the oil giants is good because they have the money and expertise to tackle such an ambitious project. Ellet believes now is hydrogen’s Spindletop moment. She believes the technology, economics and interest are in place to allow the industry to boom.

But hydrogen didn’t catch. Technology for producing it remained expensive, while oil production instead got a giant boost. Hydraulic fracturing technology allowed the United States to rapidly increase how much oil it produced. Brett Perlman, CEO of the nonprofit Center for Houston’s Future, poses for a portrait at the Houstonian Hotel in Houston on March 24, 2024.Local and state leaders are cheering on the industry’s growth. Brett Perlman, CEO of the nonprofit Center for Houston’s Future, supported the hydrogen hub effort. Perlman’s job is to consider Houston’s economy and what will happen to it as the world works to address climate change and wean itself off fossil fuels.

The easy path to selling hydrogen made in these new ways would be to start by converting places already using hydrogen for purposes such as making fertilizer, refining petroleum and treating metals. But even more environmental benefits would come if it could also be used in new applications, said John Hensley, vice president of markets and policy analysisHydrogen believers envision the fuel could decarbonize industries that are considered hard to electrify.

With money from the Rockefeller Family Fund, which has an initiative focused on slowing oil and gas production because it drives climate change, organizers brought in the big guns to tell the other side of the story. The day began with a speech from Bob Bullard, founding director of the Bullard Center for Environmental and Climate Justice at Texas Southern University, known by many as the father of environmental justice.

Schlissel, the director of resource planning analysis for the Institute for Energy, Economics and Financial Analysis, believes the government is using a badly built model to judge how clean hydrogen projects are when they’re evaluated for federal support.

 

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