Hydrogen Hub Developments Across the U.S.

January 19, 2022

With 2022 upon us, states across the U.S. are kicking off their legislative sessions and governors are or will soon deliver their State of the State addresses. While 2021 marked robust actions by the federal government to support hydrogen, 2022 should feature multiple states enacting policies to propel the industry at the local level.

Thanks to the Infrastructure and Jobs Act that was signed into law last year, states are mobilizing to host at least four regional hydrogen hubs, which will each leverage various hydrogen production pathways and a diverse set of end-uses.

In this edition of Hydrogen Forward’s monthly newsletter, we highlight several states across the country and their progress toward developing hydrogen hubs.

California

  • California policymakers have displayed the long-term political will to achieve their emissions reduction goals, with hydrogen playing a key role especially in the transportation sector through the buildout of 200 hydrogen refueling stations (HRSs) by 2025. Industry is also mobilizing resources to deploy an additional 200 HRSs for heavy-duty vehicles by 2035. Further, the state boasts major projects that will expand hydrogen’s penetration on an economy-wide scale, most notably HyDeal LA. Armed with a massive budget surplus, expect California policymakers to make waves and leverage its already impressive energy assets. With these and other potential developments, California may become fertile ground for a hydrogen hub.

Louisiana

  • Louisiana Governor John Bel Edwards is positioning the major petrochemical state to become a clean industry hub through major climate targets and establishing a Climate Initiatives Task Force. Louisiana is the second-largest chemical products producer and the third-largest natural gas producer. The state has an opportunity to fuel switch its industrial sectors to hydrogen and achieve emissions reductions in some of the hardest-to-abate sectors. Last year, one company announced plans to establish a $4.5 billion clean hydrogen hub in the state.

New York

  • Since the passage of the Infrastructure and Jobs Act, Governor Kathy Hochul has projected New York’s intent to establish a clean hydrogen hub by directing Empire State Development, New York State Energy Research and Development Authority, and the New York Power Authority to compete for a share of federal funds. The governor’s proposal would incorporate cities across the state and target power generation using hydrogen. Canadian hydropower crossing the border into New York and a nuclear hydrogen production pilot project offer unique low-carbon hydrogen production opportunities in the Empire State.

New Mexico

  • Governor Michelle Lujan Grisham is perhaps one of the most vocal proponents of establishing a hydrogen hub in her home state of New Mexico. Members of the legislature are expected to introduce the Hydrogen Hub Act, which includes a tiered incentive system based on the carbon intensity of the hydrogen produced. The bill is expected to have the backing of Grisham, who is bullish to pass tax incentives for low-carbon hydrogen infrastructure and supply chain development. The state is a top 10 fossil fuel producer and intends to ramp up its hydrogen production, especially from its robust natural gas (paired with carbon capture) and renewable energy assets.

Texas

  • Texas is one of the best-equipped states to establish a hydrogen hub and enable widespread hydrogen adoption. The Lone Star State represents about 30 percent of U.S. refining capacity and 40 percent of petrochemical capacity. Texas already has one-third of the U.S. hydrogen production capacity and is positioning itself to become a global hydrogen hub. The region features salt caverns to store vast amounts of hydrogen and undersea caverns to store carbon dioxide. Robust liquified natural gas export facilities along the Texas Gulf Coast could one day house carbon-free hydrogen. Expect Texas to ramp up decarbonized hydrogen production soon.

But Don’t Overlook These…

Mississippi

  • Last year, HyStor Energy announced plans to develop a green hydrogen storage hub in Mississippi, which could produce up to 110 million kg of hydrogen and store 70 million kg in salt caverns in its initial phases – currently the largest proposed green hydrogen project in the U.S.

North Dakota

  • Bakken Energy and Mitsubishi Power have entered a partnership to build a hydrogen hub in North Dakota that will produce 310,000 metric tons of hydrogen through autothermal reforming (ATR) and capture and sequester carbon locally.

Ohio River Valley (Ohio, Pennsylvania, West Virginia)

  • Norwegian oil company Equinor has partnered with U.S. Steel for a potential partnership in the region, which has geological advantages for storing hydrogen in rock formations and salt caverns.

To learn more about the rapid hydrogen developments taking place across the country, visit Hydrogen Forward’s United States of Hydrogen interactive map, which tracks the latest projects and announcements.

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