Harnessing hydrogen: A southwest opportunity for energy and growth
Hydrogen: the most abundant element in the universe and a potent potential driver of economic growth and reduced emissions.
Thanks to the bipartisan infrastructure law's investment of $7 billion to develop regional clusters of hydrogen production, transportation and use, we have reached a pivotal moment. This public investment provides an opportunity to expand private and philanthropic action and highlights the crucial role hydrogen will play in shaping America's energy future.
In honor of hydrogen’s atomic weight of 1.008, October 8th is National Hydrogen and Fuel Cell Day. Not exactly a well-known event, but we’re here to change that—at least in Texas and New Mexico. This pair of states is well-positioned to seize the energy and economic growth opportunities from hydrogen.
Why Hydrogen Matters
Hydrogen is more than just an environmental solution, it's a catalyst for economic growth, with far-reaching implications for the energy sector and global economy.
Take, for instance, long-haul trucking, a sector known for substantial carbon emissions. Hydrogen can be used to power internal combustion engines or fuel cells. The combustion approach is a cost-effective strategy for truck fleets wanting to move to hydrogen technology now. For heavy-duty trucks moving to all-electric platforms, hydrogen fuel cells offer an advantage over batteries in greater range and fast fueling.
Hydrogen's economic potential extends beyond transportation, with fundamental industries like ammonia production, metals manufacturing, electronics and even aerospace and rocket propulsion already incorporating hydrogen into their processes. Consider steel manufacturing, a sector historically linked to significant carbon emissions. Hydrogen, used as a reducing agent, has the potential to transform this industry by curbing emissions and offering a more sustainable process.
Crucially for Texas and New Mexico, the success of a hydrogen economy relies on leveraging existing oil and gas infrastructure. With our states’ network of pipelines and storage facilities, we are well-positioned to distribute hydrogen and accelerate industrial activity and growth.
Hydrogen means job creation and economic diversification. Texas and New Mexico can invigorate communities and regions traditionally dependent on fossil fuels by investing in hydrogen production, transportation, and infrastructure.
This isn't just about reducing emissions; it's about strengthening our state economies and enhancing energy security.
The Permian Basin: A Hydrogen Hotspot
This vast two-state area offers more than its oil and gas activity. It boasts a wealth of talent and expertise honed over a hundred years of energy exploration and production.
The Permian’s oil and gas infrastructure is more than a legacy of fossil fuel extraction; it's a foundation upon which a hydrogen economy can be built. The pipelines and right of way that have transported hydrocarbons for generations can be repurposed to transport hydrogen, giving the region a head start in the race to an advanced energy future. The vast quantities of currently unusable “produced” water in the Permian add to the potential for making and using hydrogen. The Permian may also have natural hydrogen in its sedimentary layers, an intriguing possibility in a new and growing area of energy research.
A network of universities and research institutions bolsters the region. This network includes our places of work: the University of Texas at Austin and Sandia National Laboratories. Our institutions are hubs of cutting-edge research and development, providing the critical expertise to drive hydrogen technology forward.
It’s also worth noting the Permian Energy Development Lab, a new initiative we helped found last spring. Supported by public and private stakeholders, the Lab is dedicated to building on the Permian’s status at the center of the global energy economy —and engaging the community in the process. It symbolizes the convergence of traditional energy expertise with the aspirations of an advanced energy future.
Innovation, determination, and a pioneering spirit are part of the Southwest’s cultural fabric. When you think about it, embracing hydrogen's potential is not just an opportunity but a responsibility. The Permian Basin is poised to forge a hydrogen-powered economy that transcends boundaries and benefits future generations.
As we celebrate National Hydrogen and Fuel Cell Day, let’s focus on the promise of hydrogen. It's not just about industrial chemistry; it's about changing the energy landscape and ensuring a prosperous future for all.
