autonomous freight

Self-driving trucking facility opens in Houston, readies for 2024 launch in Texas

Texas is one step closer to seeing a Houston-to-Dallas driverless truck route on I-45. Photo courtesy of Aurora

Houston is emerging as a major player in the evolution of self-driving freight trucks.

In October, Aurora Innovation opened a more than 90,000-square-foot terminal at a Fallbrook Drive logistics hub in northwest Houston to support the launch of its first “lane” for driverless trucks — a Houston-to-Dallas route on I-45. Aurora opened its Dallas-area terminal in April.

Close to half of truck freight in Texas moves along I-45 between Houston and Dallas.

“With this corridor’s launch, we’ve defined, refined, and validated the framework for the expansion of our network with the largest partner ecosystem in the autonomous trucking industry,” Sterling Anderson, co-founder and chief product officer at Pittsburgh-based Aurora, says in a news release.

Aurora produces software that controls autonomous vehicles. The software is installed in trucks from Paccar, whose brands include Kenworth and Peterbilt, and Volvo.

Anderson says its Houston and Dallas terminals came online well ahead of its scheduled launch of driverless trucks between the two cities. The terminals house, maintain, and inspect autonomous trucks.

Aurora currently hauls more than 75 loads per week (under the supervision of vehicle operators) from Houston to Dallas and Fort Worth to El Paso. The company’s customers in its pilot project include FedEx, Uber Freight, and Werner.

“We are on track to launch commercial operations at the end of 2024, with Dallas to Houston serving as our first commercial route,” the company says.

In July, Aurora said it raised $820 million in capital to fuel its growth — growth that’s being accompanied by scrutiny. Self-driving taxi service, Cruise, which recently launched in Houston, has put it in park for the time being.

In light of recent controversies surrounding self-driving vehicles, the International Brotherhood of Teamsters, whose union members include over-the-road truckers, recently sent a letter to Lt. Gov. Dan Patrick calling for a ban on autonomous vehicles in Texas.

“The Teamsters believe that a human operator is needed in every vehicle — and that goes beyond partisan politics,” the letter states. “State legislators have a solemn duty in this matter to keep dangerous autonomous vehicles off our streets and keep Texans safe. Autonomous vehicles are not ready for prime time, and we urge you to act before someone in our community gets killed.”

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A View From HETI

ExxonMobil Chairman and CEO Darren Woods said the company was weighing whether it would move forward with a proposed $7 billion low-hydrogen plant in Baytown this summer. Photo via exxonmobil.com

As anticipated, Spring-based oil and gas giant ExxonMobil has paused plans to build a low-hydrogen plant in Baytown, Chairman and CEO Darren Woods told Reuters.

“The suspension of the project, which had already experienced delays, reflects a wider slowdown in efforts by traditional oil and gas firms to transition to cleaner energy sources as many of the initiatives struggle to turn a profit,” Reuters reported.

Woods signaled during ExxonMobil’s second-quarter earnings call that the company was weighing whether it would move forward with the proposed $7 billion plant.

The Biden-era Inflation Reduction Act established a 10-year incentive, the 45V tax credit, for production of clean hydrogen. But under President Trump’s One Big Beautiful Bill Act, the period for beginning construction of low-carbon hydrogen projects that qualify for the tax credit has been compressed. The Inflation Reduction Act called for construction to begin by 2033. The Big Beautiful Bill changed the construction start time to early 2028.

“While our project can meet this timeline, we’re concerned about the development of a broader market, which is critical to transition from government incentives,” Woods said during the earnings call.

Woods had said ExxonMobil was figuring out whether a combination of the 45Q tax credit for carbon capture projects and the revised 45V tax credit would enable a broader market for low-carbon hydrogen.

“If we can’t see an eventual path to a market-driven business, we won’t move forward with the [Baytown] project,” Woods told Wall Street analysts.

“We knew that helping to establish a brand-new product and a brand-new market initially driven by government policy would not be easy or advance in a straight line,” he added.

ExxonMobil announced in 2022 that it would build the low-carbon hydrogen plant at its refining and petrochemical complex in Baytown. The company had indicated the plant would start initial production in 2027.

ExxonMobil had said the Baytown plant would produce up to 1 billion cubic feet of hydrogen per day made from natural gas, and capture and store more than 98 percent of the associated carbon dioxide. The plant would have been capable of storing as much as 10 million metric tons of CO2 per year.

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