The University of Houston’s Division of Energy and Innovation recently released an in-depth report titled “The Gulf Coast Hydrogen Ecosystem: Opportunities and Solutions,” following a similarly titled symposium focused on developing a successful Gulf Coast hydrogen ecosystem. The symposium hosted last spring by UH Energy, an umbrella for the University’s energy initiatives and programs, brought together industry experts, policymakers, and academics to explore the potential of hydrogen as a clean energy source.
The report presents a comprehensive roadmap for positioning the Gulf Coast as a global leader in the hydrogen economy. It underscores the region’s critical role, examining opportunities for hydrogen production, storage, distribution and policy challenges that must be addressed.
“The Houston area, already a major hub for the traditional energy sector, is well-positioned to become a leader in the hydrogen economy, supported by existing infrastructure, industry expertise and strategic location,” said Ramanan Krishnamoorti, vice president for energy and innovation at UH.
“However, our analysis shows that achieving this vision will require us to address not only technological challenges but also regulatory and permitting roadblocks, infrastructure challenges, workforce development and community engagement.”
UH Energy continues to be a crucial partner in the global energy transition, earning UH the title “The Energy University.”
Hydrogen: A Key Player in the Energy Transition
The report highlights the importance of hydrogen as a clean fuel that can play a significant role in decarbonizing multiple sectors, including energy, transportation and heavy industry. Hydrogen’s versatility allows it to be used in various applications, from fuel cells for vehicles to large-scale industrial processes. The Gulf Coast region’s established infrastructure, particularly its extensive network of pipelines and storage facilities, places it ahead of many regions in hydrogen deployment.
However, the report emphasizes that technological advancements and cost reductions are needed to scale up hydrogen production and use. Current hydrogen production methods, such as steam methane reforming (SMR) and autothermal reforming (ATR), require carbon capture to achieve lower emissions. Moreover, the discovery of geologic hydrogen offers potential for natural hydrogen extraction, but significant technological research and development are required to understand how to locate and harness these subsurface hydrogen resources.
Addressing Safety, Policies and Public Perception
Hydrogen has been used safely for decades in industrial settings, and its risks are well understood. However, as hydrogen use expands into new sectors, such as transportation and energy storage, a strong safety culture will be vital for its success. The report stresses the importance of educating the public on hydrogen safety, as misconceptions and lack of understanding could hinder its widespread adoption.
“The oil, gas and petrochemical industries upon which our region’s economy is based will continue to be needed for decades,” said Paul Doucette, Hydrogen Program officer with the division. “Research and innovation will continue to drive costs and carbon emissions of fossil energy down. Nevertheless, as the low-carbon energy future emerges, with hydrogen as a cornerstone, it is essential that we address safety, regulatory compliance and proper engagement with the impacted communities to be successful.”
The report calls for collaboration among industry stakeholders, regulators and community leaders to foster a culture of safety. Establishing best practices for hydrogen use, sharing lessons from past incidents and engaging communities early in the development process will help build trust and mitigate concerns. Furthermore, the report recommends enhancing first responder training to ensure that those on the front lines are well-equipped to handle potential hydrogen-related incidents.
Policy and Regulatory Challenges
The Gulf Coast hydrogen ecosystem faces several regulatory challenges, particularly around repurposing existing natural gas pipelines for hydrogen transport and blending hydrogen with natural gas. The U.S. has approximately 1,600 miles of hydrogen pipelines, primarily in Texas and Louisiana but the report calls for clearer regulations and policies to govern the expansion of hydrogen infrastructure.
“Policies at both the state and federal levels are crucial to unlocking hydrogen’s full potential, said Doucette. “The federal government’s Infrastructure Investment and Jobs Act of 2021 and the Inflation Reduction Act of 2022 have set the stage for significant investment in hydrogen, particularly through production tax credits for clean hydrogen. However, additional policy clarity and support are needed to accelerate widespread investment in hydrogen technology development.”
Texas, home to the largest hydrogen production facilities in the U.S., plays a pivotal role in the hydrogen economy. The Texas Railroad Commission’s newly established Hydrogen Production Policy Council is an encouraging step toward developing the necessary regulations for hydrogen infrastructure, but the state must continue to develop policies that support hydrogen innovation and decarbonization efforts.
Workforce Development and Community Engagement
A key component of the report focuses on workforce development and community engagement. The emerging hydrogen economy presents a significant opportunity to create jobs and drive economic growth, particularly in underserved communities. The federal government’s Justice40 Initiative, which aims to direct 40% of the benefits from certain federal investments to disadvantaged communities, highlights the importance of ensuring that hydrogen-related economic opportunities are accessible to all.
Building a skilled workforce will be essential for the success of the hydrogen economy. The University of Houston, with its expertise in energy research and development, is well-positioned to support this effort. UH’s programs in workforce training and development can help equip the future workforce with the skills needed to operate hydrogen facilities and support the growing industry.
The UH partnership with local community colleges and community based organizations working in this area strengthens the entire region.
“UH Energy’s commitment to driving innovation, research, and workforce development will be instrumental in supporting the hydrogen economy’s growth in the Gulf Coast and beyond, said Krishnamoorti. “Through collaboration with industry, government, academia and the community, the hydrogen ecosystem can realize its full potential, contributing to a cleaner, more sustainable future.”
To read “The Gulf Coast Hydrogen Ecosystem: Opportunities and Solutions” report, click here.