Automation company signs on to power up $10 billion hydrogen project in South Texas

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ABB plans to collaborate with Houston-based Green Hydrogen International on the Hydrogen City project. Photo via Getty Images

Electrification and automation company ABB, whose U.S. headquarters for its Energy Industries business is in Houston, has tentatively agreed to supply power for a $10 billion hydrogen project in South Texas.

Under a new memorandum of understanding, ABB plans to collaborate with Houston-based Green Hydrogen International on the Hydrogen City project. The first phase of the project is expected to generate 280,000 tons of green hydrogen per year. This green hydrogen will then be converted to one million tons of green ammonia each year.

“Together, we will enable efforts to decarbonize global industry and progress towards a net-zero future,” Brandon Spencer, president of ABB Energy Industries, says in a news release.

The memorandum of understanding calls for ABB’s technology to be assessed for delivery of solar and onshore wind energy to the 2.2-gigawatt electrolyzer facility at Hydrogen City.

The project will store up to 24,000 tons of green hydrogen in underground salt caverns. A 75-mile pipeline to the nearby Corpus Christi energy port will carry the green hydrogen to an ammonia production facility. At this facility, green hydrogen will be turned into green ammonia that’ll be shipped to Europe and Asia.

Green Hydrogen International is in talks with companies interested in using green hydrogen from Hydrogen City as feedstock for sustainable aviation fuel and e-methane.

Hydrogen City will serve a global green ammonia market whose value is projected to reach $17.9 billion by 2030. Construction on Hydrogen City is scheduled to start in 2026, with initial production set for 2030.

Green Hydrogen International unveiled the multiphase Hydrogen City project in 2022, saying it would be “the world’s largest green hydrogen production and storage hub.” At his month’s CERAWeek in Houston, officials provided an update on Hydrogen City.

“Ammonia has the potential to support decarbonization efforts as part of the energy transition through its use as an alternative fuel for heavy transport such as shipping, as well as its current major use in fertilizer production,” ABB says in the news release.

Last October, Green Hydrogen International announced a Hydrogen City partnership with Japanese oil and gas giant Inpex, whose U.S. outpost is in Houston.

Here's what to attend at CERAWeek. Photo via CERAWeek.com

Things to know this week: Houstonian's guide to CERAWeek 2024

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Editor's note: Dive headfirst into the new week with things to catch up on in Houston's energy transition — a special CERAWeek 2024 edition. Check out these must-attend events at the conference, which is going on all week in Downtown Houston.

Monday, March 18, at 4:30 pm — IRA at One and a Half Years: What is the impact?

Billions of dollars have poured into the energy sector to spur investment and production of technology to fight climate change through the passing of the Inflation Reduction Act (IRA) 18 months ago. Experts weigh in on the successes so far and any challenges and obstacles that have arisen.

Roman Kramarchuk, S&P Global Commodity Insights Head – Climate Markets and Policy Analytics
Jigar Shah, United States Department of Energy Director, Loan Programs Office
Kevin Gresham, RWE Senior Vice President, Government Relations & Regulatory Affairs
Steve Smith, National Grid Group Head of Strategy, Innovation and Market Analytics, National Grid | President, National Grid Partners

Tuesday, March 19, at 1 pm — Everything is Bigger in Texas: Building Hydrogen City

Announced in 2022, the largest green hydrogen production, storage and transport hub is being developed in South Texas. It will be powered by behind-the-meter solar and wind and the first phase is expected to produce 1/4 million tonnes of green hydrogen per year. The project developers will provide an update on the early stages of the project.

Toshiaki Takimoto, INPEX Corporation Director, Senior Managing Executive Officer, Corporate Strategy & Planning and Head of Net Zero Business
Kenneth Medlock, Rice University, Baker Institute Senior Director, Center for Energy Studies
Noah Feingold, S&P Global Consulting Associate Director
Brian Maxwell, Green Hydrogen International Founder & Chief Executive Officer

Wednesday, March 20, at 1 pm — Houston Energy Initiative Energy Venture Day and Pitch Competition

Join The Rice Alliance for Technology and Entrepreneurship, the Houston Energy Transition Initiative and the Texas Entrepreneurship Exchange for Energy (TEX-E) for the third annual Energy Venture Day and Pitch Competition at CERAWeek. The pitch day will feature more than 40 energy ventures driving efficiency and advancements toward the energy transition. The fast-paced competition is designed to connect energy startups with venture capitalists, corporate innovation groups, industry leaders, academics and service providers.

Read more about the event here.

Thursday, March 21, at 1 pm — Luncheon & Dialogue with Bill Gates

Legendary Microsoft founder Bill Gates, who founded Breakthrough Energy and TerraPower, is headed to town for the 2024 CERAWeek. Gates will be featured in a luncheon fireside chat with S&P Global's Daniel Yergin.

HETI House

Drop by the Houston Energy Transition Initiative's HETI House at CERAWeek for a tour or one of the fireside chats.

Commercializing low carbon technology: unique partnerships between industry and academia

Woodside Energy + Rice University

Monday, March 18 | 2 p.m.

Tony Almond – VP of Technology & Innovation, Woodside Energy
Aditya Mohite – Associate Professor, Chemical and Biomolecular Engineering; Associate Professor, Materials Science and Nanoengineering, Rice University

In 2024, Woodside Energy and Rice University in Houston announced a five-year technology collaboration aimed at reducing greenhouse gas emissions and providing lower carbon solutions. Woodside will provide $12.5 million to fund the creation of the Woodside-Rice Decarbonization Accelerator, an initiative that aims to bring breakthrough decarbonization technology from the Rice labs to market, with a specific focus on manufacturing products derived from captured carbon dioxide and methane. Specifically, Rice hopes to leverage cold plasma technology, a unique approach to breaking down carbon dioxide. These products have potential applications to make better batteries, transistors, and other critical materials for energy technologies.

Investing in our academic institutions and talent in the energy capital of the world

Shell + University of Houston Energy Transition Institute

Tuesday, March 19 | 9:30 a.m.

Jenny Philip, Energy Transition U.S. Senior Advisor, Shell
Scott Nyquist, Energy Advisory Board, University of Houston. Vice-Chair, Houston Energy Transition Initiative, Greater Houston Partnership
Ramanan Krishnamoorti, Chief Energy Officer, University of Houston

Funded by Shell USA, Inc and Shell Global Solutions, US Inc, the University of Houston’s new Energy Transition Institute (ETI) empowers the next generation of energy leaders; develops and accelerates energy solutions, including hydrogen, carbon management and circular materials at scale; and informs policies to address our most pressing challenge to provide secure, reliable, affordable and sustainable energy for all. Learn more about how University of Houston’s ETI is driving research, innovation and workforce development to support the transition to a low-carbon, energy-abundant future.

How Houston Leads: Engaging Communities and Creating Opportunity in the Energy Transition

Calpine + Houston Energy Transition Initiative

Wednesday, March 20 | 10 a.m.

Brett Kerr, Vice President, External Affairs, Calpine
Jane Stricker, Houston Energy Transition Initiative + Greater Houston Partnership

Houston has long been regarded as the Energy Capital of the World. As the industry continues to innovate and deploy projects for an energy-abundant, low-carbon future, engaging communities and creating opportunity for all will be critical. In this session, Jane and Brett will discuss the engagement approaches leading energy companies are putting into practice to expand opportunity for all communities. Come learn about best practices, key challenges and new methods for building sustained relationships with communities.

Scaling carbon-neutral gasoline – feed to construction

HIF Global + Bechtel

Thursday, March 21 | 10 a.m.

Brooke Vandygriff, Chief Operations Officer, HIF USA
Rich Wall, Principal Vice President & General Manager Downstream, Chemicals & Advanced Fuels, Bechtel

HIF Global, the world’s leading eFuels company, has selected Bechtel Energy, Siemens Energy, and Topsoe to conduct the front-end engineering and design (“FEED”) of a facility to be constructed in Matagorda County, Texas, to produce carbon-neutral gasoline. When operational, the HIF Matagorda eFuels Facility will produce fuel that can be dropped-in to vehicles in use today without any modification to existing engines or the infrastructure on which they depend. Come hear more about this innovative technology and the Matagorda facility from Bechtel Energy and HIF Global.

24/7 carbon-free energy: from startup to scale in houston

Mitsubishi Heavy Industries + Fervo Energy

Thursday, March 21 | 2 p.m.

Tim Latimer, Chief Executive Officer, Fervo Energy
Takajiro Ishikawa, President & CEO, Mitsubishi Heavy Industries

Mitsubishi Heavy Industries (MHI) announced its investment in Fervo Energy (Fervo), an innovative enhanced geothermal technology startup headquartered in Houston, Texas. MHI joins a consortium of strategic investors, including Devon Energy Corporation (Devon), Marunouchi Innovation Partners (MIP). Over the last few years, Fervo has adapted innovations pioneered by the oil and gas industry, such as horizontal drilling and distributed fiber optic sensing, to make reservoirs of hot rock that exist beneath the earth’s surface into practical, economically viable, carbon-free sources of energy that can be used as heat sources both for industrial and power generation. Learn more about how this clean energy startup is commercializing solutions for the transitions by building relationships with world leading energy and technology companies.

Energy Tech Innovation Lounge (no badge required)

Houston Innovation Leaders and Founders is hosting a free Energy Tech Innovation Lounge that's open daily from 10 am to 5 pm at 808 Travis Street. Each day has programing and networking — click here to learn more.

INPEX Corp. and Green Hydrogen International have agreed to a Joint Study Agreement to advance a South Texas hydrogen production facility called "Hydrogen City." Photo via Getty Images

Japanese company opts into joint initiative for green hydrogen, ammonia project in South Texas

hydrogen city, Texas

An oil and gas exploration and production company has signed on to collaborate on a green hydrogen project in Texas to keep up with growing global market demand.

INPEX Corp. and Green Hydrogen International have agreed to a Joint Study Agreement to advance a South Texas hydrogen production facility called "Hydrogen City." The project's first phase will produce 280,000 tons per year of green hydrogen and 1 million tons per year of green ammonia. Construction is slated to begin in 2026 with commercial operation expected in 2029.

INPEX's "unparalleled expertise in large energy project development combined with a world-class marketing organization will provide enormous advantages to the Hydrogen City project and our goal of producing the world's lowest-cost green hydrogen by 2029," Brian Maxwell, CEO of GHI, says in a news release.

The partnership brings together both entities' expertise, with INPEX's experience developing large scale energy projects and marketing LNG to international customers. Meanwhile, GHI uses salt cavern storage and behind-the-meter renewable power to produce low-cost green hydrogen.

"I am excited to announce this green hydrogen project in Texas, which exemplifies our unwavering commitment to environmental leadership and innovation," INPEX Representative Director, President, and CEO Takayuki Ueda says in the release. "INPEX's dedication to a brighter, greener future remains steadfast, and this endeavor in Texas marks a pivotal step in our vision for a more sustainable tomorrow."

INPEX is also a part of a large-scale, low-carbon ammonia production and export project on the Houston Ship Channel that was anounced ealier this month.

Hydrogen City, located in South Texas atop the Peidras Pintas Salt Dome, was originally announced in March 2022. There will be a 75 mile pipeline from Hydrogen City to Corpus Christi, supplying a 1 Million Tonne Per Annum (MTPA) ammonia production facility and local off-takers.

Image via ghi-corp.com

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Houston nonprofit launches new energy education platform

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The Energy Education Foundation, a Houston-based nonprofit, will roll out a new app-based education platform just in time for back-to-school season.

Starting this fall, EEF will offer its new EnergyXP platform to students in middle schools and through community and education events across the country. The STEM-focused platform aims to boost exposure to oil and gas concepts and career paths, according to a release from the non-profit.

EnergyXP represents a fully redesigned, interactive version of the foundation's former Mobile Energy Learning Units, which now feature upgraded technology, enhanced curricula and app integration.

“EnergyXP marks the most recent development in our educational initiatives. We aim to inspire students nationwide to explore real-world energy concepts and careers,” Kristen Barley, executive director of the Energy Education Foundation, said in the release. “Our collaborative approach involves strong partnerships with educators, industry experts and local organizations to ensure that our programs are responsive to community needs. By prioritizing equitable access to quality STEM education, we can help build a more inclusive, future-ready energy workforce.”

The new platform offers 16 hands-on and digital STEM activities that introduce a variety of energy concepts through real-world applications while "showcasing the relevance of energy in everyday life," according to the release.

EEF will host two virtual sneak peeks of the platform on Aug. 7 and Aug. 8. Register here.

Enbridge's new Texas solar project to power Meta data centers

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Construction is underway on a new 600-megawatt solar project in Texas that will supply renewable energy to Meta Platforms Inc., the owner of Facebook, Instagram and other tech platforms.

Calgary-based Enbridge Inc., whose gas transmission and midstream operations are based in Houston, announced that Meta has agreed to purchase 100 percent of the power generated by its new $900 million solar project known as Clear Fork.

The clean energy developed at Clear Fork will be used to support Meta’s data center operations, according to a news release from Enbridge. Meta has had net-zero emissions across its operational portfolio since 2020, according to its 2024 environmental report. The company matches 100 percent of its data center usage with renewable energy.

"We are thrilled to partner with Enbridge to bring new renewable energy to Texas and help support our operations with 100% clean energy, " Urvi Parekh, Head of Global Energy at Meta, said in a news release.

The Clear Fork project is expected to be operational by the summer of 2027. It will join Enbridge’s first solar power project in Texas, Orange Grove, which was activated earlier this year, as well as the company’s Sequoia solar project, which is scheduled to go online in early 2026.

"Clear Fork demonstrates the growing demand for renewable power across North America from blue-chip companies who are involved in technology and data center operations," Matthew Akman, executive vice president of corporate strategy and president of power at Enbridge, said in the news release. "Enbridge continues to advance its world-class renewables development portfolio using our financial strength, supply chain reach and construction expertise under a low-risk commercial model that delivers strong competitive returns."

Energy experts: Executive order enhances federal permitting for AI data centers

Guest column

In an effort to accelerate the development of artificial intelligence, President Trump signed an executive order (EO) aimed at expediting the federal permitting process for data centers, particularly those supporting AI inference, training, simulation, or synthetic data generation.

Following the White House’s issuance of a broader AI Action Plan, the EO seeks to streamline regulatory burdens and utilize federal resources to encourage the development of data centers supporting AI, as well as the physical components and energy infrastructure needed to construct and provide power to these data centers.

Qualifying Projects

The EO directs several federal agencies to take actions to incentivize the development of “Qualifying Projects,” which the EO defines as “Data Centers” and “Covered Component Projects.” The EO defines “Data Center Projects” as facilities that require over 100 megawatts (MW) of new load dedicated to AI inference, training, simulation, or synthetic data generation. The EO defines Covered Component Projects as materials, products, and infrastructure that are required to build Data Center Projects or upon which Data Center Projects depend, including energy infrastructure projects like transmission lines and substations, dispatchable base load energy sources like natural gas, geothermal, and nuclear used principally to power Data Center Projects, and semiconductors and related equipment. For eligibility as a Qualifying Project, the project sponsor must commit at least $500 million in capital expenditures. Data Center Projects and Covered Component Projects may also meet the definition of Qualifying Project if they protect national security or are otherwise designated as Qualifying Projects by the Secretary of Defense, Secretary of the Interior, Secretary of Commerce, or Secretary of Energy.

Streamlining Permitting of Qualifying Projects

The EO outlines the following strategies aimed at improving the efficiency of environmental reviews and permitting for Qualifying Projects:

NEPA Applicability: The Council on Environmental Quality (CEQ), in coordination with relevant agencies, is directed to utilize existing and new categorical exclusions under the National Environmental Policy Act (NEPA) to cover actions related to Qualifying Projects, which “normally do not have a significant effect on the human environment.” The EO states that where federal financial assistance represents less than 50 percent of total project costs of a Qualifying Project, the Project shall be presumed not to be a “major Federal action” requiring NEPA review.
FAST-41: The Executive Director of the Federal Permitting Improvement Steering Council (FPISC) is empowered to designate a Qualifying Project as a “transparency project” under the Fixing America’s Surface Transportation Act (FAST-41) and expedite its transition from a transparency project to a “covered project” under FAST-41. FPISC is directed to consider all available options to designate a Qualifying Project as a FAST-41 covered project, even where the Qualifying Project may not be eligible.
EPA Permitting: The US Environmental Protection Agency (EPA) is directed to modify applicable regulations under several environmental protection statutes impacting the development of Qualifying Projects on federal and non-federal lands. EPA is also directed to develop guidance to expedite environmental reviews for identification and reuse of Brownfield and Superfund Sites suitable for Qualifying Projects. Importantly, state environmental permitting agencies are not subject to the EO.
Corps Permitting: The US Army Corps of Engineers is directed to review the nationwide permits issued under Section 404 of the Clean Water Act and Section 10 of the Rivers and Harbors Act of 1899 to determine whether an activity-specific nationwide permit is needed to facilitate the efficient permitting of activities related to Qualifying Projects.
Interior Permitting: The US Department of the Interior is directed to consult with the US Department of Commerce regarding the streamlining of Endangered Species Act consultations for Qualifying Projects, and to work with the US Department of Energy to identify federal lands that may be available for use by Qualifying Projects and offer appropriate authorizations to project sponsors.

Federal Incentives for Qualifying Projects

The EO also directs the US Secretary of Commerce to “launch an initiative to provide financial support for Qualifying Projects,” which may include loans, grants, tax incentives, and offtake agreements. The EO further directs all “relevant agencies” to identify and submit to the White House Office of Office of Science and Technology Policy any relevant existing financial support that can be used to assist Qualifying Projects, consistent with the protection of national security.

The EO reinforces the Trump administration’s focus on AI and creates new opportunities for both AI data center developers and energy infrastructure companies providing power or project components to these data centers. Proactive engagement with relevant agencies will be crucial for capitalizing on the opportunities created by this EO and the broader AI Action Plan. By leveraging these financial and environmental incentives, project developers may be able to shorten permitting timelines, reduce costs, and take advantage of federal financial support.

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Jason B. Hutt, Taylor M. Stuart and Anouk Nouet are lawyers at Bracewell. Hutt is chair of the firm’s environment, lands and resources department. Stuart counsels energy, infrastructure, and industrial clients on matters involving environmental and natural resources law and policy. Nouet advises clients on litigation, enforcement and project development matters with a focus on complex environmental and natural resources law and policy.

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