Texas leans on natural gas to jump-start H2: Report

Texas leans on natural gas to jump-start H2: Report

Washington, 24 May (Argus) — Natural gas could play a significant role in hydrogen production in Texas for decades to come, requiring a ramp-up in carbon capture and storage (CCS) projects to meet broader emissions goals, according to a new report from the nonprofit Center for Houston's Future and consulting firm McKinsey.

The Center's report estimates that Texas could produce as much as 21 metric tonnes (mt) of hydrogen by 2050 — with around 10mt available for exporting. But this assumes that 70-90pc of production would be from natural gas by 2035, meaning aggressive CCS measures would be needed to reach net-zero goals by 2050.

The report predicts Texas would need 45-55mt of CO2 storage by 2035, assuming a 98pc carbon capture rate. Houston accounts for a third of all US hydrogen production with 48 hydrogen plants fulfilling 3.6mt of demand in the state. Nearly all of those plants are gray, or natural gas-powered without CCS. These existing plants could be considered "clean" if fitted with CCS technology that would leverage storage in the many salt caverns along the Texas Gulf Coast.

But while stakeholders around the world have planned clean energy strategies to slice greenhouse gas emissions over the next three decades,