Support of Hydrogen Projects in Texas
Texas is a major hydrogen producing state in the US and hosts a portion of the Gulf Coast dedicated hydrogen pipeline network, the largest in the US. The following are examples of funding that is or is expected to enter the state in support of hydrogen truck implementation projects.
1. HyVelocity, an industry-led, public/private collaboration focused on developing a Gulf Coast Hydrogen Production Hub. HyVelocity was awarded a US DOE grant of up to $1.2billion in October 2023. Seven core industry partners, AES Corporation, Air Liquide, Chevron, ExxonMobil, Mitsubishi Power Americas, Ørsted, and Sempra Infrastructure collaborated to create this Hub.
2. H2@Scale is a US DOE project, bookended at UT Austin and the Port of Houston, with a focus on demonstrating that renewable hydrogen can be a cost-effective fuel for multiple end-use applications, including FCEV, when coupled with large, baseload consumers that use hydrogen for clean, reliable stationary power, including commercial hydrogen production, distribution, storage, and use.
3. Inflation Reduction Act (IRA) The federal IRA provides an investment tax credit (ITC) for the development of advanced industrial facilities such as hydrogen production facilities, and resulted in the IRS § 45V tax credit, which provides a production tax credit (PTC) of up to $3/kg for the production of low-carbon hydrogen. These federal policies will benefit Texas hydrogen production projects.
4. H2LA- Houston to Los Angeles I-10 Hydrogen Corridor Project This project will develop a flexible and scalable blueprint plan for an investment-ready hydrogen fueling and heavy-duty freight truck network from Houston to LA (H2LA) along I-10, including the Texas Triangle region. The methodology developed for H2LA will inform future hydrogen corridor plans across the country.
5. Texas Hydrogen Infrastructure, Vehicle and Equipment Grant Program (THIVE) This program will fund acquisition of hydrogen powered heavy-duty vehicles and accompanying hydrogen fueling infrastructure. It was established under Texas Health and Safety Code (THSC), Chapter 386, by House Bill 4885 and will be administered by the TCEQ.
6. Port of Houston The Port of Houston Clean Air Strategy includes pursuit of state and federal funding to reduce truck emissions, including grants from US EPA, US DOT, TCEQ, Harris County, and the Houston-Galveston Area Council.
7. IH 45 Corridor Zero Emission Vehicle Plan The North Central Texas Council of Governments (NCTCOG), which serves the Dallas-Fort Worth Clean Cities Coalition (DFWCC), has outlined recommendations for build-out of new fueling infrastructure to support ZEV project deployment hydrogen FCEVs, along IH 45. This corridor carries a large amount of freight and is key to advancing air quality efforts in Dallas-Fort Worth and Houston, which have ozone air pollution challenges substantially impacted by heavy-duty diesel trucks. The plan was developed under an award by the Federal Highway Administration.
8. Texas Triangle, FHWA Truck Hydrogen Fueling Station Grant. The North Central Texas Council of Governments was awarded a $70 million Federal Highway Administration (FHWA) grant to build five medium-/heavy-duty hydrogen fueling stations to serve the Dallas-Fort Worth, Houston, Austin and San Antonio freight corridors.
9. Railroad Commission Hydrogen Authority H.B. 2847 authorizes the Texas Railroad Commission (Commission) jurisdiction over the production, pipeline transportation, and storage of hydrogen. The Commission is directed to establish a hydrogen production policy council to study the development of Texas Hydrogen industries, monitor the development of a Texas hydrogen hub, coordinate activities of other state agencies in supporting the regional hydrogen hub, develop a state plan for hydrogen production, and make recommendations to the Texas legislature regarding hydrogen industry regulation.