Environmental and Emissions Impact
- Ports’ Energy Use & Emissions: Ports use 4% of U.S. energy and contribute heavily to diesel emissions. Hydrogen helps clean up port operations.
- Zero-Emission, Diesel-Equivalent Fuel: Hydrogen is the only zero-emission fuel with the same range and fast refueling as diesel, making it ideal for heavy-duty vehicles.
- Local Pyrolysis-Based Production: Pyrolysis (using heat to break methane) creates low-cost, low-emission hydrogen and produces carbon black for industrial use.
Economic and Market Growth
- Inflation Reduction Act Support: The Inflation Reduction Act offers $3/kg tax credits for hydrogen, making it competitive with other fuels today.
- Market Growth & Infrastructure: By 2030, the U.S. plans to produce 10 million metric tons of hydrogen per year, creating 100,000 jobs. Texas could see $120 billion in economic growth and 750,000 new jobs by 2050.
- Global Demand & U.S. Targets: Global hydrogen demand is set to grow 1.5 times by 2030, with the U.S. aiming to meet 1% of its energy needs from hydrogen by then.
Technological Advancements and Production Methods
- Cost Reduction through Local Pyrolysis: Pyrolysis-based hydrogen is cheaper and cleaner, making it a competitive production method.
- Technological Advancements: Companies like Monolith are already producing hydrogen at a large scale using pyrolysis, proving the technology works.
Texas' Strategic Advantage
- Texas’ Competitive Advantage: Texas has many natural gas plants near hydrogen pipelines, making it easier to blend hydrogen with natural gas and scale up production.