Hydrogen Production Hub Proposed for US Gulf Coast

SAN RAMON, Calif. — Chevron is among the founders of a new consortium that has proposed developing a large-scale hydrogen hub on the U.S. Gulf Coast.

According to a press release on the multinational energy company’s website, the project will be named “HyVelocity Hub” and consist of both production and transport infrastructure.

“With Texas being a leading producer of natural gas, with extensive infrastructure, geology for carbon sequestration and access to international export facilities, we very much believe the U.S. Gulf Coast is positioned well for a hydrogen hub,” said Justin Kostohryz, Chevron’s commercial advisor for hydrogen, in a written statement included in the release.

Kostohryz noted the Gulf Coast is already home to a large number of natural gas production facilities as well as carbon sequestration geology that makes it an appealing location for a potential hub.

According to Chevron, the Gulf Coast is also already home to about one-third of the existing hydrogen production in the United States — accounting for roughly 3.5 million metric tons of hydrogen per year.

The region also features more than 1,000 miles of hydrogen pipelines and 48 hydrogen production plants, the company’s press release said.

Kostohryz said the appeal of the HyVelocity project for Chevron was the combination of partners and timing.

“When you think about the hydrogen economy and something being commercially viable, you want something that has the complete value chain where there are producers, the ability to move hydrogen and consumers,” he said in a statement. “We were waiting for the right partnerships that would make this a sustainable concept.”

The HyVelocity Hub application, which has been filed with the U.S. Department of Energy, is being led by GTI Energy, a research and training organization. 

In addition to Chevron, the project’s partners include the Center for Houston’s Future, the University of Texas at Austin, Air Liquide, Energy Transfer LP, ExxonMobil Low Carbon Solutions, Ørsted, Sempra Infrastructure and Shell.

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