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hydrogen hub proposed for US gulf coast

1/26/2023

The U.S. Gulf Coast could one day serve as a major hub for the production and deployment of hydrogen, considered a key fuel in a lower carbon future.

Chevron is among the founders of a consortium that is working to develop a large-scale hydrogen hub along the U.S. Gulf Coast. Named HyVelocity Hub, the project would include a variety of production and transport infrastructure.

“With Texas being a leading producer of natural gas, with extensive infrastructure, geology for carbon sequestration and access to international export facilities, we very much believe the U.S. Gulf Coast is positioned well for a hydrogen hub,” said Justin Kostohryz, Chevron commercial advisor for hydrogen.

Kostohryz said the U.S. Gulf Coast is home to existing natural gas production facilities as well as carbon sequestration geology that makes it an appealing location for a potential hub. The Bipartisan Infrastructure Law was passed earlier this year to spur production of lower carbon energy to achieve climate goals.

commercial viability
The Gulf Coast is home to one-third of U.S. hydrogen production. That’s 3.5 million metric tons of hydrogen per year. The region also features more than 1,000 miles of hydrogen pipelines and 48 hydrogen production plants.

The HyVelocity project aligns with Chevron’s pursuit of commercial opportunities through partnerships. Chevron looks to develop technology, build infrastructure and stimulate demand for a large-scale hydrogen economy.

Some of the components of a hydrogen hub would include end-use applications, infrastructure, pipelines and trucked hydrogen delivery.

Kostohryz said the appeal of the HyVelocity project for Chevron was the combination of partners and timing.

“When you think about the hydrogen economy and something being commercially viable, you want something that has the complete value chain where there are producers, the ability to move hydrogen and consumers,” he said. “We were waiting for the right partnerships that would make this a sustainable concept.”

The HyVelocity Hub application is being led by GTI Energy, a research and training organization. In addition to Chevron, the project’s partners include the Center for Houston’s Future, the University of Texas at Austin, Air Liquide, Energy Transfer LP, ExxonMobil Low Carbon Solutions, Ørsted, Sempra Infrastructure and Shell.