Offshore staff
SAN RAMON, Calif. — The US 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, according to Chevron.
The company is among the founders of a consortium that is working to develop a large-scale hydrogen hub along the US Gulf Coast. The HyVelocity Hub 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 US Gulf Coast is positioned well for a hydrogen hub,” said Justin Kostohryz, Chevron commercial adviser for hydrogen.
Kostohryz said the US 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 US 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. 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.
Nearby projects
In October 2022, Air Liquide, Chevron, LyondellBasell and Uniper SE announced their intent to collaborate on a joint study that will evaluate and potentially advance the development of a hydrogen and ammonia production facility along the US Gulf Coast. The facility could support industrial decarbonization and mobility applications in the region and expand clean ammonia exports, helping to increase the supply of lower carbon power internationally.
Also in the region, in mid-2021, Talos Energy and Storegga Geotechnologies agreed to jointly assess and develop carbon capture and storage (CCS) project opportunities on the US Gulf Coast and in the Gulf of Mexico.
And in late 2021, Talos and Freeport LNG Development executed a letter of intent to develop the Freeport LNG CCS project on the Gulf Coast. The companies anticipate first injection could occur by the end of 2024.
01.30.2023
