Recently, McKinsey published a study for the Center for Houston’s Future predicting that hydrogen could add an estimated $100 billion to Texas’ GDP, which is equivalent to 6% of Texas’ 2019 GDP. Texas is already the largest producer of hydrogen in the United States—producing more hydrogen than all other 49 states combined for use in the refinery and chemical industry. The potential for development of hydrogen is focused on these primary areas — energy storage, export fuels, industrial applications, heavy weight truck transportation and power generation.
Foley & Lardner’s Texas Government Solutions practice group has been working with an advocacy group of hydrogen related companies called the Texas Hydrogen Alliance (THA). THA members comprise a widely diverse group of companies in the hydrogen economy from production, manufacturers of electrolyzers, transportation, energy institutes and large scale industrial facilities.
In January of 2023, the alliance will be heavily engaged in the development of policies to be considered during the 88th Texas Legislature. The Texas Legislature will convene for a 140-day regular session. We anticipate the Legislature will consider a number of hydrogen related proposals. These proposals will help kickstart the diversified use of hydrogen.
THA is also engaged in Texas’ application for a federal hydrogen hub grant. Earlier this month, the Department of Energy noticed a funding opportunity of $7 billion authorized under the Bipartisan Infrastructure Law for the Regional Clean Hydrogen Hubs program to establish six to ten regional clean hydrogen hubs across America. These hydrogen hubs will create networks of hydrogen producers, consumers, and local connective infrastructure to accelerate the use of hydrogen as a clean energy carrier that can deliver or store tremendous amounts of energy.