Texas Positioned to Lead the Global Hydrogen Market
Key Ideas
  • China and the United States are aggressively pursuing hydrogen opportunities, with Texas emerging as a key player in the global market.
  • Texas has the infrastructure, expertise, and resources to become a dominant hub for hydrogen production, potentially creating over 45,000 new jobs and $100 billion in GDP.
  • Policy uncertainty, particularly around the hydrogen production tax credit, poses a risk to Texas' competitive edge against global competitors like China, Europe, and the Middle East.
  • Maintaining policies like the hydrogen production tax credit (45V) is crucial to ensuring American businesses can compete globally and drive economic growth.
Governments worldwide are focusing on hydrogen as the next frontier of energy production, with China and the United States leading the charge. China, accounting for over 60% of global electrolyzer manufacturing capacity, is boosting its low-carbon hydrogen sector. The US has introduced the Regional Hydrogen Hub Program and the Section 45V Clean Hydrogen Production Tax Credit to attract investment. Texas, already a leader in energy production, is poised to become a global hydrogen hub with existing infrastructure and expertise. The Department of Energy has selected Texas's HyVelocity Hydrogen Hub to advance domestic hydrogen production, expecting significant economic contributions. However, policy uncertainty, particularly around the hydrogen production tax credit, poses a threat to Texas' competitiveness. Maintaining policies like 45V is essential to support American businesses and ensure they can compete on a global scale. There are positive indications that Congress may support these policies, with several representatives and senators defending energy tax credits. The potential for hydrogen in Texas is immense, with projections of significant job creation and economic benefits, but ongoing support for key policies is crucial for the state to maintain its position in the global hydrogen market.
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