Report on Hydrogen Development in Texas

ESMIA was selected to evaluate and quantify the development potential for hydrogen across economic sectors in Texas. Texas is a leader in the hydrogen industry with over 1,000 miles of hydrogen pipelines and several production plants. The RRC project’s objective was to assess infrastructure requirements for hydrogen while optimizing for economic growth and considering US energy policies like the Inflation Reduction Act production tax credits and hydrogen hub funding. In 2024, the Gulf Coast (HyVelocity) hub was selected by the U.S. Department of Energy (DOE) Office of Clean Energy Demonstrations as one of the seven currently designated Hydrogen Hubs.

In addition to modelling the future hydrogen production and consumption mix, the analysis evaluated the economic impacts on GDP and labor and examined how the energy mix may affect gas and electricity rates. ESMIA’s North American TIMES Energy Model (NATEM) was used as the primary tool, supplemented by the RateVision model for rate and household bill impacts. The final report detailed how energy policies, technology evolution, and market conditions affect hydrogen development, infrastructure, and investment and trade opportunities, while emphasizing potential for economic growth.