The Texas Hydrogen Production Policy Council has released its report to the 89th Legislature (PDF). The report’s recommendations are focused on regulatory oversight of hydrogen production, transportation, storage, and maximizing economic opportunities for the development of the hydrogen industry in Texas. A spotlight on the recommendations in the report is below:
Regulatory Oversight
- Recommendation 1: Texas’ state plan for hydrogen production oversight should maintain the current framework of regulatory oversight, with targeted clarifications and improvements.
- Recommendation 2: Rulemaking should address hydrogen infrastructure, such as pipeline and casing materials, separately from infrastructure used for other products when distinction is technically merited based on hydrogen’s unique physical properties.
- Recommendation 3: Texas should identify hydrogen-focused individuals at relevant state agencies to improve the effectiveness and efficiency of oversight in hydrogen applications.
- Recommendation 4: Training and education programs to improve public awareness of hydrogen, which will increase public acceptance of hydrogen and enhance safety, should be encouraged.
- Recommendation 5: Texas should continue streamlining and standardizing its permitting processes.
Maximizing the Economic Opportunity for Texas
- Recommendation 6: Texas should continue to support its efforts to ensure a low-cost, reliable supply of natural gas and electricity, which are foundational to all forms of hydrogen production and to the industries creating hydrogen demand.
- Recommendation 7: To promote the growth of clean hydrogen production derived from natural gas (commonly known as “blue” hydrogen), Texas should prioritize the development of carbon dioxide management infrastructure, including pipelines and underground storage, as well as expand the supply of lower emission natural gas, such as Responsibly Sourced Gas (RSG) and Renewable Natural Gas (RNG).
- Recommendation 8: To support the expansion of clean hydrogen production through electrolysis (commonly known as “green” hydrogen), Texas should adopt an “all of the above” energy approach, encouraging the expansion of low carbon electricity production from existing sources (wind and solar) and emerging ones (nuclear and geothermal).
- Recommendation 9: Texas should encourage significant expansion of infrastructure supporting the entire hydrogen value chain, including: (1) input energy infrastructure (e.g., electricity transmission and natural gas pipeline debottlenecking), (2) hydrogen production infrastructure and facilities, (3) hydrogen transportation and storage infrastructure (e.g., hydrogen pipelines, underground storage, and ammonia terminals), (4) supporting infrastructure (e.g., carbon dioxide pipelines and underground storage), and (5) demand infrastructure (e.g., hydrogen fueling networks and manufacturing facilities consuming hydrogen). Wherever possible, this expansion should leverage existing infrastructure to minimize costs and environmental impact.
- Recommendation 10: Texas’ state policy to support the hydrogen industry should be designed to maximize economic benefits for its citizens while minimizing costs for taxpayers. This can be achieved by: (1) leveraging federal incentives, minimizing the need for state incentives, (2) maintaining a business-friendly environment with efficient permitting processes and property tax abatements to support world scale, strategic projects, (3) fostering industry development that creates hydrogen demand focusing on targeted, high impact end-uses, and (4) aligning production with international standards, which will enhance Texas’ potential as a global exporter of clean energy, hydrogen products and hydrogen derivatives.
