H2Tech - Q2 2021 - 34

SPECIAL FOCUS

PATHWAYS FOR SUSTAINABLE HYDROGEN

the medium term-now through the 2030s or 2040s, while at
the same time accelerating green H2 development. The timing
and extent of low-carbon policy could change overall H2 demand and the mix of blue H2 vs. green H2.
Cost-competitive green H2 with scale volume potential is
anticipated to emerge in the 2030s and beyond as electrolysis
costs and technology improve, as fuel-cost manufacturing and
scale economies improve, and as more ubiquitous and low-cost
renewable power is available.
The substantial demand for clean H2 in the near and medium term, favoring blue H2 , followed by improving and expanding green H2 opportunities, presents a unique opportunity for
the Texas region. Leveraging its world-class H2 infrastructure,
personnel and corporate assets, Texas can globalize its H2 leadership and emerge as a leading global H2 hub, driving lower

FIG. 12. Schematic of Humber, UK industrial area. Source: Equinor.

emissions and bridging between old and new energy systems as
a path to continue energy leadership, economic expansion and
job growth (FIG. 12).
To tap this longer-term potential-as blue and green H2
technologies and costs advance and macro-policy goals regarding decarbonization take shape-additional and adaptive policies and funding mechanisms will be required. Early establishment of these policies would help the Texas region keep pace
with decarbonization initiatives in other parts of the world.
Takeaway. Research commissioned by The Center for Houston's Future and the University of Houston shows that Texas
has a significant opportunity to both reduce its carbon emissions from existing H2 production while creating new market
opportunities from the energy transition (FIG. 13).
Furthermore, the opportunity exists to globalize Texas H2
leadership. There is no question that the energy system is changing; the issue is whether Texas will transition rapidly enough to
capture its potential. This report shows the path forward.
ANDY STEINHUBL serves as Vice Chair of the Board and sits on
the Executive and Nominating Committees of the Center for
Houston's Future. He recently retired with more than 35 yr of
energy experience, having launched and led KPMG's U.S.
Energy and Chemicals strategy group. Prior to joining KPMG,
he worked for Booz & Co., where he served as the Houston
office's Managing Partner and in a variety of North American
and global energy sector leadership roles. He began his career at ExxonMobil.
At present, Mr. Steinhubl is collaborating with the Center for Houston's Future
on a variety of projects regarding Houston's role in the energy transition,
including the role of H2 in the decarbonization of Houston's energy system.
Mr. Steinhubl earned a BS degree in chemical engineering at Purdue University
and an MBA degree from Stanford University's Graduate School of Business.

Electrolyzer
plants

Vision 2050: global H2 hub
Lake Charles
Dallas

H2 storage

Fuel cell

California
(LCFS)

Airport H2 loading equipment

Low-cost natural
gas pipeline

H2
Reﬁnery

C02 pipeline
for EOR

Permian

* Rapid go-to-market at-scale, gray/blue H2
* Drive integration of green H2
* Anchor local and national heavy
transportation markets
* Exporter, market maker
* Mitigate core industry carbon risks

Petchemical plants

SMR H2

Houston
San Antonio
Converted
gas pipeline

Rock cap

Blue ATR H2

Port H2 loading
equipment

Salt cavern
H2 salt cavern
storage
H2-ﬁred power plant

H2 carrier

Steel plant

King Ranch
Corpus Christi
FIG. 13. The 2050 vision for a Texas H2 economy.

Q2 2021 | H2-Tech.com

H2 pipeline

Floating wind +
electrolyzers

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H2Tech - Q2 2021

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