Gulf Coast Hydrogen Hub Officially Launches U.S. Department of Energy to award up to $1.2 billion to deliver low carbon hydrogen and benefits to Texas and Gulf Coast communities

November 20, 2024
Houston, TX

The HyVelocity Hub has executed a cooperative agreement with the U.S. Department of Energy’s (DOE) Office of Clean Energy Demonstrations (OCED) to receive up to $1.2 billion in federal funding to build and expand low-carbon hydrogen and hydrogen infrastructure across Texas and the Gulf Coast.

Kicking off with about $22 million in the first tranche of federal funding, HyVelocity could create up to 45,000 jobs over its lifetime and reduce carbon dioxide emissions by up to seven million metric tons per year. This transformative federal investment will expand Gulf Coast energy resources, ensuring energy security and the benefits of clean hydrogen and high-quality jobs for communities.

HyVelocity aims to become the largest hydrogen hub in the nation. With its leaders contributing decades of experience and competency in low-carbon energy deployment, HyVelocity is positioned to catalyze production and delivery of hydrogen across the value chain, and create real, meaningful impacts for communities. The hub will leverage the Gulf Coast region’s high concentration of existing hydrogen production and end-use assets to develop clean hydrogen that can power fuel cell electric trucks, industrial process, ammonia production, refining and petrochemical production, and marine shipping fuel.

This award follows HyVelocity’s selection last October as one of seven awardees of OCED’s Regional Clean Hydrogen Hubs – which catalyzed a national network of clean hydrogen producers, consumers, and connective infrastructure. Read more in the statements from HyVelocity Hub leadership below:

Industry partners

“Building a clean hydrogen market is key to support a sustainable energy future. The HyVelocity Hub is strategically positioned in a critical geography to lead this transformation by leveraging existing infrastructure to expand low-carbon hydrogen development,” said Neeraj Bhat, Head of U.S. Hydrogen, AES. “Our project will utilize renewable energy to produce clean hydrogen for industrial use along the U.S. Gulf Coast. We are proud to drive energy innovation and support the region's long-term economic and environmental goals.”

“As a founding member of the HyVelocity Hub, we are proud to reach this milestone, laying the groundwork for a robust and thriving hydrogen ecosystem in the Gulf Coast,” said Laura Parkan, Vice President of Hydrogen Energy & Mobility, North America, Air Liquide. “Air Liquide recognizes the region's vast potential, which is reflected in two projects that offer sustainable and scalable solutions to drive energy expansion and support long-term growth.”

“Chevron is proud to be a founding member of the HyVelocity Hub to advance lower carbon energy progress in the Gulf Coast region,” said Austin Knight, Vice President, Chevron New Energies for Hydrogen. “We believe partnering and helping to connect value chains are key components to make hydrogen happen at scale.”

“We’re pleased to be part of HyVelocity and look forward to continued collaboration with our partners from industry, academia, and government to help advance the low-carbon hydrogen industry,” said Dan Holton, Senior Vice President of ExxonMobil Low Carbon Solutions. “DOE’s support is a key enabler in developing this emerging market, and this award marks an important step in that direction.”

“The launch of the HyVelocity Hub is a landmark achievement in our global effort to advance sustainable energy solutions," said Mike Ducker, President & CEO, MHI Hydrogen Infrastructure. “We are honored to partner in this initiative, which will not only drive innovation in low-carbon hydrogen production but also create significant economic opportunities and environmental benefits for Gulf Coast communities. Our involvement in the HyVelocity hub highlights our commitment to supporting the global transition to clean energy and leverages our expertise to contribute to a more sustainable and resilient energy system worldwide.”

“Alongside our HyVelocity partners, Ørsted is thrilled to receive the award funding from the Department of Energy as the Hub launches the Gulf Coast clean hydrogen economy,” said Tommy Gerrity, Head of P2X Americas, Ørsted. “Star e-Methanol, our green hydrogen and e-methanol project, will help diversify our energy economy, create well-paying jobs across Texas, and advance decarbonization of the maritime sector.”

Organizing partners

“The HyVelocity Hub demonstrates the power of collaboration in catalyzing economic growth and creating value for communities as we build a regional hydrogen economy that delivers benefits to Gulf Coast communities,” said Paula A. Gant, Ph.D., President & CEO, GTI Energy.

“Texas is the nation’s energy capital and UT is the energy university, and we are no stranger to playing a leading role in America’s energy innovation,” said Jay Hartzell, President, University of Texas at Austin. “The success of the HyVelocity Hydrogen Hub is critical to our nation’s future energy security. We are excited to work with our industry partners and apply our vast energy, business, and policy expertise to develop the hydrogen workforce and accelerate production along the Gulf Coast.”

“HARC believes hydrogen has the potential to produce local and lasting economic, social, and health benefits for communities, which is why we are proud to lead HyVelocity’s community engagement activities,” said John Hall, President & CEO, Houston Advanced Research Center. “We welcome the opportunity to collaborate with fence line and disadvantaged communities to identify priorities and develop solutions that will meet community needs and improve wellbeing. We are committed to ensuring communities are fully involved in the process and experience the health and economic benefits low-carbon hydrogen deployment can deliver.”

“We owe a debt of gratitude to a list of individuals and organizations too numerous to name for their support for the shared vision of accelerating the development of the Gulf Coast’s clean hydrogen future. But it underscores just how transformative collaborating for our low-carbon future can be," said Brett Perlman of the Center for Houston's Future. "We are thrilled to be able to move to the day-to-day work of taking HyVelocity from vision to reality. HyVelocity, with this significant public investment behind it, will create jobs, reduce emissions, provide benefits to local communities and kickstart other investments and projects around it. I look forward to the progress ahead."

To learn more about the HyVelocity Hub, visit www.hyvelocityhub.com, or contact us at engage@hyvelocityhub.com. HyVelocity will share additional details on the hub’s projects, community benefits plans, and Phase 1 engagement actions during an upcoming OCED-hosted webinar.

Further Information

More information on HyVelocity is available here:

About the HyVelocity Hub
The HyVelocity Hub, an industry-led hub administered by GTI Energy, will leverage the world’s largest concentration of existing hydrogen production and end-use assets in Texas and the Gulf Coast to deliver the benefits of clean hydrogen and good-paying jobs to local communities. HyVelocity is led by core industry-owned hub sponsors and consists of a wide array of supporting partners.

About the Office of Clean Energy Demonstrations
OCED’s mission is to deliver clean energy demonstration projects at scale in partnership with the private sector to accelerate deployment, market adoption, and the equitable transition to a decarbonized energy system. Visit energy.gov/oced to learn more.