Partners in advanced energy: The Gulf Coast and the Permian Basin
Last month, the U.S. Department of Energy announced a $1.2 billion investment in hydrogen technology through a Gulf Coast-based coalition of companies, universities, and nonprofits. While the HyVelocity Hub has rightfully sparked excitement in Houston, where many of its partners are based, there’s a larger story to tell—a story of spillover benefits for the state of Texas and especially the Permian Basin.
Before we get to that story, let’s address an obvious first question: why should anyone in the Permian care about an initiative on the other side of state?
Despite the distance, these regions are interlinked in Texas' energy framework. There's a robust network of pipelines and infrastructure already in place connecting the Permian to the Gulf Coast. This means the Permian can supply natural gas for the HyVelocity hub’s blue hydrogen projects and renewable energy like wind and solar for green hydrogen initiatives. As renewable energy grows, this partnership will expand, presenting significant clean hydrogen development opportunities for both regions. Those opportunities might involve electricity generated from hydrogen in the Permian and sent to the Gulf by power line or hydrogen made in the Permian and sent to the Gulf by pipeline.
But it's not just about infrastructure; it's about people. Texas has a diverse pool of talent—engineers, entrepreneurs, researchers and nonprofit leaders—who work across both Houston and the Permian. As someone involved in both the HyVelocity hub and the Permian Energy Development Lab, I've seen how these initiatives blend traditional energy expertise with forward-looking insight and aspiration. This collaboration is key to making the most of the federal investment in hydrogen development.
The essence of this investment isn't just technology—it's about transforming entire industries. Sectors like transportation (especially trucking), steel manufacturing and aerospace (rocket propulsion) are poised for big changes thanks to hydrogen technology. Texas, historically known for its dominance in fossil fuels, is now steering toward an advanced energy future—and Houston and the Permian can lead the way.
At the end of the day, this isn't just an upgrade in tech; it's an investment in communities and the economy. Texas has the potential to bolster its energy portfolio and become a global frontrunner in clean energy. The implications are broad—jobs and education opportunities, community engagement, technological innovation, and stronger economies. Texas has long been a trailblazer in energy; we’re positioned once again to chart the course. This hydrogen investment is the starting point for Texas to take a leap toward the future of energy—a leap with the potential to make a global impact.
