HyVelocity Gulf Coast Hydrogen Hub Applies for U.S. Department of Energy Regional Clean Hydrogen Hub Funding
April 10, 2023
Today, the HyVelocity Hub team announced that it has applied for funding from the U.S. Department of Energy’s (DOE) $8 billion Regional Clean Hydrogen Hubs to rapidly scale clean hydrogen supply and demand along the U.S. Gulf Coast in Texas and Southwest Louisiana, and help deliver affordable, reliable, and abundant clean energy and well-paying jobs to local communities. The HyVelocity team was encouraged by the DOE to officially apply for funding after submitting an initial concept paper in November.
The Gulf Coast is well situated for a clean hydrogen hub as it contains the world’s largest concentration of existing hydrogen production assets, customers, and energy infrastructure, with a network of 48 hydrogen production plants and over 1,000 miles of dedicated hydrogen pipelines. The HyVelocity Hub builds on the Gulf Coast’s unrivaled energy assets and will leverage federal investments to advance the global clean hydrogen market, help to decarbonize multiple sectors of the economy, and deliver the benefits of clean energy to historically disadvantaged communities.
HyVelocity’s plans will accelerate DOE’s clean hydrogen policy goals, including its Hydrogen Shot, which is seeking to decrease carbon emissions to not more than 2 kilograms of carbon per 1 kilogram of hydrogen produced, and reduce the cost of clean hydrogen by 80% to $1 per 1 kilogram in 1 decade.
Organized by GTI Energy, The Center for Houston’s Future, University of Texas at Austin, and seven major corporate participants—including Air Liquide, Chevron, Orsted, and Sempra Infrastructure—HyVelocity has grown additional support from more than 90 commercial, academic, nonprofit, and government supporters. The hub also has bipartisan support from elected leaders at the federal, state, and local levels of government. Seven academic institutions are participating in HyVelocity, including Texas’ two largest public universities, two major private universities and Historically Black Colleges and Universities.
“Scaling up clean hydrogen production, storage, and delivery systems will be vital for energy, environmental, and economic security for communities in the Gulf Coast region, while ensuring that prosperity is accessible to all,” said Paula A. Gant, PhD, President and CEO, GTI Energy. “We are proud to collaborate with a diverse set of partners to lead the way in further building the hydrogen ecosystem to provide secure, low-carbon energy supplies and well-paying jobs to fuel local economies—with a particular emphasis on meeting the needs of underserved communities.”
“A large team has worked hard to create the hub, and it has taken much time and effort, innovative thinking, and a willingness to collaborate,” said Brett Perlman, CEO, The Center for Houston’s Future. “I would like to thank all involved, especially RMI and KPMG for their invaluable pro bono contributions to this important effort.”
“Port Houston supports HyVelocity because of its strategic importance to the nation and its alignment to our stakeholders’ ambitions for cleaner energy and air quality, stronger communities, and environmental and social justice,” said Rich Byrnes, Chief Infrastructure Officer, Port Houston. “HyVelocity, situated within the world’s energy capital in the Gulf Coast, will help reduce harmful emissions from the transportation sector, catalyze near-term benefits for our communities, and accelerate America’s economic competitiveness and environmental leadership for decades to come."
“Air Liquide is proud to contribute its 60 years of expertise along the entire hydrogen value chain to the HyVelocity Hub, in support of the U.S. Department of Energy’s Regional Clean Hydrogen Hubs initiative,” said Adam Peters, CEO, Air Liquide North America. “By leveraging the energy leadership of the Gulf Coast, HyVelocity will support the development and deployment of a regional clean hydrogen ecosystem in Texas. Together with hubs across the country, we can foster a robust, reliable and energy-secure national hydrogen economy which is essential to achieving U.S. decarbonization goals while providing economic, environmental and career benefits to communities here in the Gulf Coast and across the nation.”
“At Sempra Infrastructure, we develop energy infrastructure to help our customers meet the need for cleaner and more secure energy,” said Justin Bird, CEO, Sempra Infrastructure. “We are excited to participate in the HyVelocity Gulf Coast Hydrogen Hub and to collaborate with other companies and stakeholders to advance hydrogen infrastructure in the Gulf Coast.”
“The Gulf Coast is well-positioned to be a leader in the production of green hydrogen and e-fuels, building on its legacy of American energy leadership,” said Melissa Peterson, Head of Ørsted Americas P2X. “As Ørsted develops a greater presence in the region with our Power-to-X business, we are proud to join the HyVelocity Hub application to support green hydrogen deployment. As the industry progresses, we look forward to the opportunities that a DOE hydrogen hub designation would provide and our key role in the industry's growth.”
“Chevron is proud to support the HyVelocity Hub to advance lower carbon energy progress in the Gulf Coast Region,” said Austin Knight, Vice President, Chevron New Energies for Hydrogen. “We are pursuing commercial opportunities with partners that demonstrate our desire to develop technology, build infrastructure, connect and grow the supply and value chains, which are all key components to deliver hydrogen at-scale.”
“The University of Texas is honored to be a part of the HyVelocity Hub’s application for DOE’s Regional Clean Hydrogen Hubs funding. UT Austin is one of the world’s leading research institutions with an established history of leadership in energy research and the advancement of the hydrogen energy economy,” said Brian Korgel, Rashid Engineering Regents Chair Professor in the McKetta Department of Chemical Engineering and Director of the Energy Institute, UT Austin. “UT Austin recognizes the importance of a rapidly expanding role of hydrogen in the future of the Texas energy economy and looks forward to offering its capabilities and expertise for the HyVelocity Hub.”
The HyVelocity Hub team has collaborated with several regional hub teams to facilitate an interconnected, national framework for hydrogen production and end use. HyVelocity continues to discuss potential projects and new partnerships in Texas and the Gulf Coast region.