About the Gulf Coast Hydrogen Hub in Texas
The Gulf Coast H2Hub, also known as the HyVelocity Hub, is an industry-led clean hydrogen development effort managed by GTI Energy, and includes a wide array of organizations and supporters, including industry participants, educational and research facilities, community engagement and labor organizations, non-profits, academics, and state and local governments. With a total funding grant of up to $1.2 billion, the HyVelocity Hub will focus on sustainable hydrogen production and energy infrastructure development in Texas, a state traditionally known for its fossil fuel industry.
Key Features of the Gulf Coast H2Hub:
- Production Methods: The HyVelocity Hub will utilize electrolysis to produce green hydrogen, which involves splitting water into hydrogen and oxygen using renewable electricity. Additionally, it will use natural gas combined with carbon capture and storage technology to produce blue hydrogen, which reduces carbon dioxide emissions associated with hydrogen production.
- Job Creation: This project is expected to create 45,000 direct jobs and generate additional economic impact across the Gulf Coast’s energy ecosystem.
- Strategic Infrastructure: The Gulf Coast is already the nation’s largest hydrogen producer in the U.S. producing one third of the region’s annual hydrogen production, or 3.5 million metric tons, with over 1,000 miles of dedicated hydrogen pipelines and 48 production plants. The HyVelocity will use this grant opportunity to further utilize regionally advantaged, co-located geology which is well-suited for carbon capture and sequestration and for commercial-scale hydrogen storage.
About the Midwest Hydrogen Hub in Illinois, Indiana, Iowa, and Michigan
The Midwest Hydrogen Hub, also known as MachH2, is set to receive up to $1 billion in funding, with a focus on decarbonizing industrial sectors such as steelmaking, glass production, and automotive manufacturing. In addition, MachH2 aims to advance electrolyzer technologies and explore innovative hydrogen production methods, including pink hydrogen, which is generated from nuclear power.
Key Features of the Midwest H2Hub:
- Decarbonization of Industry: MachH2 will target high-emission industries, listed above, providing them alternatives to reduce their dependence on fossil fuels. Decarbonizing these sectors within the Midwest could help reduce carbon emissions by approximately 3.9 million metric tons per year — equivalent to the annual emissions of more than 867,000 gasoline-powered cars.
- Energy Sources: Hydrogen production will rely on a mix of energy sources, including wind, nuclear, and natural gas. Illinois, a leader in nuclear energy production, will play a key role in this process.
- Job Creation: The hub is expected to create around 12,000 direct jobs, many of which will be in high-skilled fields such as engineering and technology.
- Decarbonization of Transportation: The Midwest’s extensive rail and road networks make it the U.S.’s key transportation corridor and an ideal location for testing hydrogen-powered trucks.
Looking Ahead: Challenges and Opportunities for the U.S. Hydrogen Sector
By 2030, the seven H2Hubs funded under the DOE’s program are expected to produce millions of metric tons of hydrogen annually, significantly reducing carbon dioxide emissions. If all the projects meet their targets, they could collectively eliminate tens of millions of metric tons of carbon dioxide each year—equivalent to removing millions of petrol-powered cars from the road.
Certain components of the MachH2 project are still awaiting clarity from the U.S. Treasury Department regarding eligibility for 45V, a clean hydrogen production tax credit part of the 2022 Inflation Reduction Act. To connect production to a myriad of end uses, MachH2 has proposed to develop transport and storage infrastructure including pipelines, truck transportation, gaseous storage, liquefaction, liquid hydrogen storage and distribution, and refueling stations. This credit will influence the viability, progress, and success of these projects.
Given the new Trump administration, the success of these H2Hubs created by the Biden-Harris administration will depend on continued collaboration among federal, state, and local governments, as well as the private sector. With increasing attention on hydrogen as a critical part of America’s local energy security and resilience, these initiatives have the potential to reshape the U.S. energy landscape in the coming decades.
