Hydrogen industry could have major impact on Texas water resources, study says

water works

A new study from the University of Texas at Austin shows that new hydrogen production facilities could account for 2 percent to nearly 7 percent of the state's water demand by 2050. Photo via Getty Images.

Just as the data center industry thrives on electricity, the hydrogen industry thrives on water.

A new study from researchers at the University of Texas at Austin found that by 2050, new hydrogen production facilities could account for 2 percent to nearly 7 percent of water demand in the state. The impact could be especially dramatic along the Gulf Coast, where most of the state’s hydrogen production facilities are already built or are being planned.

The research was published in the journal Sustainability.

The study reported that "most existing and proposed hydrogen production infrastructures are within projected water-strained cities and counties, such as Houston in Harris County and Corpus Christi in Nueces County."

Compared with municipal water supplies or irrigation systems, the hydrogen industry’s demand for water is comparatively small, the study’s lead author, Ning Lin, an energy economist at UT’s Bureau of Economic Geology, said in a news release. But hydrogen-fueled demand could strain communities that already are grappling with current and future water shortages.

“Where you put a project can make a huge difference locally,” Lin says. “With multiple hydrogen facilities planned in water-stressed Gulf Coast counties, this study highlights the urgent need for integrated water and energy planning and provides a solid foundation to help policymakers, industry, and communities make informed decisions about hydrogen and water management.”

To forecast water demand, Lin and her colleagues crunched data from a 2024 National Petroleum Council study that estimated the regional hydrogen demand from 2030 to 2050 based on two energy policy scenarios.

As part of the study, researchers reviewed water use and water quality for various hydrogen production methods that affect whether water remaining from production can be recycled.

“In order to plan for water needs, somebody has to figure out what those future demands might look like, and this paper puts some numbers to (it) that, I think, will be very helpful,” Robert Mace, executive director of the Meadows Center for Water and the Environment at Texas State University, who was not part of the study, added in the release.

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Researchers created a light-driven catalyst for hydrogen production, offering an emission-free alternative to traditional methods. Photo by Jeff Fitlow/Rice University

Houston researchers develop catalyst for emission-free hydrogen production using light instead of heat

switch flipped

Researchers at Rice University have developed a catalyst that could render steam methane reforming, or SMR, entirely emission-free by using light rather than heat to drive the reaction.

The researchers believe the work could prove to be a breakthrough for extending catalyst lifetimes. This will improve efficiencies and reduce costs for a number of industrial processes that are affected by a form of carbon buildup that can deactivate catalysts called coking.

The new copper-rhodium photocatalyst uses an antenna-reactor design. When it is exposed to a specific wavelength of light it breaks down methane and water vapor without external heating into hydrogen and carbon monoxide. The importance of this is it is a chemical industry feedstock that is not a greenhouse gas. Rice’s work also shows that the antenna-reactor technology can overcome catalyst deactivation due to oxidation and coking by employing hot carriers to remove oxygen species and carbon deposits, which effectively regenerates the catalyst with light.

The new SMR reaction pathway build off a 2011 discovery from Peter Nordlander, Rice’s Wiess Chair and Professor of Physics and Astronomy and professor of electrical and computer engineering and materials science and nanoengineering, and Naomi Halas. They are the authors on the study about the research that was published in Nature Catalysis. The study showed that the collective oscillations of electrons that occur when metal nanoparticles are exposed to light can emit “hot carriers” or high-energy electrons and holes that can be used to drive chemical reactions.

“This is one of our most impactful findings so far, because it offers an improved alternative to what is arguably the most important chemical reaction for modern society,” Norlander says in a news release.

The research was supported by Robert A. Welch Foundation (C-1220, C-1222) and the Air Force Office of Scientific Research (FA9550-15-1-0022) with the Shared Equipment Authority at Rice providing data analysis support.

“This research showcases the potential for innovative photochemistry to reshape critical industrial processes, moving us closer to an environmentally sustainable energy future,” Halas adds.

Hydrogen has been studied as it could assist with the transition to a sustainable energy ecosystem, but the chemical process responsible for more than half of the current global hydrogen production is a substantial source of greenhouse gas emissions.Hydrogen is produced in large facilities that require the gas to be transported to its point of use. Light-driven SMR allows for on-demand hydrogen generation,which researchers believe is a key benefit for use in mobility-related applications like hydrogen fueling stations or and possibly vehicles.

The facility, once completed, will be able to produce 165 kilo tons per Annum of hydrogen and 5,000 metric tons per day of ammonia. Photo via Getty Images

Houston company scores agreement to work on Canadian green hydrogen project

contract secured

Houston-headquartered McDermott has reported that it secured an agreement to work on Canada's first commercial green hydrogen and ammonia production facility.

The Early Contractor Involvement agreement is from Abraxas Power Corp. to work on the Exploits Valley Renewable Energy Corporation (EVREC) project located in Central Newfoundland and will include developing a wind farm with up to 530 turbines that will have the ability to generate 3.5 gigawatts of electricity and 150 megawatts solar photo voltaic. Additionally, the facility, once completed, will be able to produce 165 kilo tons per Annum of hydrogen and 5,000 metric tons per day of ammonia.

"The agreement is testament to McDermott's industry-leading delivery and installation expertise, and the breadth of our capabilities across the energy transition," Rob Shaul, McDermott's senior vice president, Low Carbon Solutions, says in a news release. "Our century of experience, from concept to completion, and integrated delivery model, means we can offer Abraxas a repeatable modular implementation solution that is expected to drive cost savings, reduce risk and provide quality assurance."

Per the agreement, the company will provide front-end engineering design, engineering, procurement, and construction execution planning services, and more for the project. According to McDermott, the company's contribution to the project will be led from McDermott's Houston office with support from its office in India.

Recently, another collaboration McDermott is working on reached a new milestone. Houston-based Element Fuels has completed the pre-construction phase of its hydrogen-powered clean fuels refinery and combined-cycle power plant in the Port of Brownsville. McDermott is providing front-end engineering design services for the project.

In October, McDermott announced that it signed a lighthouse agreement with United Kingdom-based industrial software company AVEVA and Massachusetts-based product lifecycle management platform provider Aras. With the new software, McDermott plans "to develop its asset lifecycle management capability across the energy transition, oil and gas, and nuclear sectors," per the news release.

Overall, the project is one of the largest collections of renewable hydrogen production, onsite storage, and end-use technologies that are all located at the same site. Photo via utexas.edu

Texas hydrogen research hub brings on new corporate partner

howdy, partner

A Texas US Department of Energy initiative has added a new corporate player.

Hitachi Energy has joined the DOE's H2@Scale in Texas and Beyond initiative with GTI Energy, Frontier Energy, The University of Texas Austin, and others. The initiative, which opened earlier this year, plans to assist in “integrating utility-scale renewable energy sources with power grids and managing and orchestrating a variety of energy sources” according to a news release.

Most of the ‘H2@Scale project’s activities take place at University of Texas JJ Pickle Research Center in Austin. The project is part of a larger one to expand hydrogen’s role and help to decarbonize Texas. The ‘H2@Scale' project consists of multiple hydrogen production options like a vehicle refueling station alongside a fleet of hydrogen fuel cell vehicles.

Overall, the project is one of the largest collections of renewable hydrogen production, onsite storage, and end-use technologies that are all located at the same site.

Another larger goal is to investigate the efficiency and cost-effectiveness of hydrogen generation from renewable resources, which all aligns with the project’s vision of decarbonization efforts.

Hitachi Energy is part of the full hydrogen value chain from early-stage project origination and design. They also work to ensure grid compliance, power conversion systems and asset management solutions.

“Hitachi Energy is proud to be a key partner in the US Department of Energy’s ‘H2@Scale in Texas and Beyond’ project. The initiative comes at a pivotal moment in our commitment to advancing hydrogen production and its role in the evolving clean energy landscape,” Executive Vice President and Region Head of North America at Hitachi Energy Anthony Allard says in a news release. “As hydrogen emerges as a critical element in decarbonizing hard-to-abate industries, Hitachi Energy remains dedicated to drive innovation and sustainability on a global scale.”

Hitachi’s project teams will undertake feasibility studies for scaling up hydrogen production and use, which will aim to benefit the development of a strategic plan and implementation of the H2@Scale project in the Port of Houston and the region of the Gulf Coast. The teams will also seek opportunities to leverage prospective hydrogen users, pre-existing hydrogen pipelines, and large networks of concentrated industrial infrastructure. Then, they will work to identify environmental and economic benefits of hydrogen deployment in the area.

Earlier this year, Hitachi Energy teamed up with teamed up with Houston-based electrical transmission developer Grid United for a collaboration to work on high-voltage direct current technology for Grid United transmission projects. These projects will aim to interconnect the eastern and western regional power grids in the U.S. The Eastern Interconnection east of the Rocky Mountains, the Western Interconnection west of the Rockies and the Texas Interconnection run by the Electric Reliability Council of Texas, make up the three main power grids.

The pilot project is a cornerstone of an extended agreement between ExxonMobil Technology and Engineering and Danbury, Connecticut-based clean energy company FuelCell Energy. Photo via exxonmobil.be

ExxonMobil extends European fuel cell pilot project

next step

The Esso fuel business of Spring-based ExxonMobil is forging ahead with a pilot project at its Dutch refinery in Rotterdam to test technology aimed at reducing carbon emissions and simultaneously generating electricity and hydrogen.

ExxonMobil and FuelCell announced the pilot project in 2023.

“The unique advantage of this technology is that it not only captures CO2 but also produces low-carbon power, heat, and hydrogen as co-products,” Geoff Richardson, senior vice president of ExxonMobil Low Carbon Solutions, said last year.

The Rotterdam facility, which opened in 1960, will be the first location in the world to test the technology. The technology eventually could be rolled out at additional ExxonMobil sites.

The European Union is among the funders of the pilot project. FuelCell is making carbonate fuel cells for the project at its manufacturing plant in Torrington, Connecticut.

The extended agreement enables FuelCell to incorporate elements of the jointly developed technology into carbon capture products currently being marketed to customers. ExxonMobil and FuelCell are working on formalizing an arrangement for selling the new technology.

“The technology, which captures carbon while simultaneously generating electricity and hydrogen, could improve the economics of carbon capture and could potentially lower the barrier to broader adoption of carbon capture in the marketplace,” according to a FuelCell news release.

FuelCell says its 10-year partnership with ExxonMobil has focused on developing technology that reduces carbon emissions from emission-intensive sectors while generating electricity and hydrogen in the process — “something that no other fuel cell technology or conventional absorption systems can do.”

Houston's HyVelocity Hub has joined in on a joint letter with the other six H2Hubs asking for revised guidelines. Photo via Getty Images

Houston's clean hydrogen hub joins request to revise federal tax credit guidance

edits needed

The group of regional hubs tapped by the United States government to receive funding to develop clean hydrogen projects have banded together to request a revision of the U.S. Department of Treasury's proposed hydrogen production tax credit (45V) guidance.

Houston's HyVelocity Hub, which was selected to receive up to $1.2 billion from the government's initiative, has joined in on a joint letter with the other six H2Hubs asking for revised requirements. HyVelocity also submitted its own letter to the Treasury.

HyVelocity's letter asks for flexibility and certainty the implementation of the “three pillars” for electricity, which include temporality, incrementality, and deliverability.

"It is imperative that to enable the desired environmental, economic, and equity goals of the IRA, private investment in hydrogen production must advance at scale and at an accelerated pace. Hydrogen production project investments require stable market projections and assurance of regulatory stability to ensure the economics of the long-term projects. To support this investment environment, we recommend that projects be granted a 'grandfathered exemption' such that for the project's life, they can use the regulations in place at the time when construction begins," reads the letter from HyVelocity.

HyVelocity, representing the Gulf Coast region, plans to create up to 35,000 construction jobs and 10,000 permanent jobs across nine proposed core projects with a collective investment of more than $10 billion in private capital to bring low-carbon hydrogen to the market.

The Houston-area initiative is backed by industry partners AES Corporation, Air Liquide, Chevron, ExxonMobil, Mitsubishi Power Americas, Ørsted, and Sempra Infrastructure and The spearheaded by GTI Energy and other organizing participants, including the University of Texas at Austin, The Center for Houston’s Future, Houston Advanced Research Center, and around 90 other supporting partners from academia, industry, government, and beyond.

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Houston climatech company signs on to massive carbon capture project in Malaysia

big deal

Houston-based CO2 utilization company HYCO1 has signed a memorandum of understanding with Malaysia LNG Sdn. Bhd., a subsidiary of Petronas, for a carbon capture project in Malaysia, which includes potential utilization and conversion of 1 million tons of carbon dioxide per year.

The project will be located in Bintulu in Sarawak, Malaysia, where Malaysia LNG is based, according to a news release. Malaysia LNG will supply HYCO1 with an initial 1 million tons per year of raw CO2 for 20 years starting no later than 2030. The CCU plant is expected to be completed by 2029.

"This is very exciting for all stakeholders, including HYCO1, MLNG, and Petronas, and will benefit all Malaysians," HYCO1 CEO Gregory Carr said in the release. "We approached Petronas and MLNG in the hopes of helping them solve their decarbonization needs, and we feel honored to collaborate with MLNG to meet their Net Zero Carbon Emissions by 2050.”

The project will convert CO2 into industrial-grade syngas (a versatile mixture of carbon monoxide and hydrogen) using HYCO1’s proprietary CUBE Technology. According to the company, its CUBE technology converts nearly 100 percent of CO2 feed at commercial scale.

“Our revolutionary process and catalyst are game changers in decarbonization because not only do we prevent CO2 from being emitted into the atmosphere, but we transform it into highly valuable and usable downstream products,” Carr added in the release.

As part of the MoU, the companies will conduct a feasibility study evaluating design alternatives to produce low-carbon syngas.

The companies say the project is expected to “become one of the largest CO2 utilization projects in history.”

HYCO1 also recently announced that it is providing syngas technology to UBE Corp.'s new EV electrolyte plant in New Orleans. Read more here.

Tackling methane in the energy transition: Takeaways from Global Methane Hub and HETI

The view from heti

Leaders from across the energy value chain gathered in Houston for a roundtable hosted by the Global Methane Hub (GMH) and the Houston Energy Transition Initiative (HETI). The session underscored the continued progress to reduce methane emissions as the energy industry addresses the dual challenge of producing more energy that the world demands while simultaneously reducing emissions.

The Industry’s Shared Commitment and Challenge

There’s broad recognition across the industry that methane emissions must be tackled with urgency, especially as natural gas demand is projected to grow 30–50% by 2050. This growth makes reducing methane leakage more than a sustainability issue—it’s also a matter of global market access and investor confidence.

Solving this issue, however, requires overcoming technical challenges that span infrastructure, data acquisition, measurement precision, and regulatory alignment.

Getting the Data Right: Top-Down vs. Bottom-Up

Accurate methane leak monitoring and quantification is the cornerstone of any effective mitigation strategy. A key point of discussion was the differentiation between top-down and bottom-up measurement approaches.

Top-down methods such as satellite and aerial monitoring offer broad-area coverage and can identify large emission plumes. Technologies such as satellite-based remote sensing (e.g., using high-resolution imagery) or airborne methane surveys (using aircraft equipped with tunable diode laser absorption spectroscopy) are commonly used for wide-area detection. While these methods are efficient for identifying large-scale emission hotspots, their accuracy is lower when it comes to quantifying emissions at the source, detecting smaller, diffuse leaks, and providing continuous monitoring.

In contrast, bottom-up methods focus on direct, on-site detection at the equipment level, providing more granular and precise measurements. Technologies used here include optical gas imaging (OGI) cameras, flame ionization detectors (FID), and infrared sensors, which can directly detect methane at the point of release. These methods are more accurate but can be resource and infrastructure intensive, requiring frequent manual inspections or continuous monitoring installations, which can be costly and technically challenging in certain environments.

The challenge lies in combining both methods: top-down for large-scale monitoring and bottom-up for detailed, accurate measurements. No single technology is perfect or all-inclusive. An integrated approach that uses both datasets will help to create a more comprehensive picture of emissions and improve mitigation efforts.

From Detection to Action: Bridging the Gap

Data collection is just the first step—effective action follows. Operators are increasingly focused on real-time detection and mitigation. However, operational realities present obstacles. For example, real-time leak detection and repair (LDAR) systems—particularly for continuous monitoring—face challenges due to infrastructure limitations. Remote locations like the Permian Basin may lack the stable power sources needed to run continuous monitoring equipment to individual assets.

Policy, Incentives, and Regulatory Alignment

Another critical aspect of the conversation was the need for policy incentives that both promote best practices and accommodate operational constraints. Methane fees, introduced to penalize emissions, have faced widespread resistance due to their design flaws that in many cases actually disincentivize methane emissions reductions. Industry stakeholders are advocating for better alignment between policy frameworks and operational capabilities.

In the United States, the Subpart W rule, for example, mandates methane reporting for certain facilities, but its implementation has raised concerns about the accuracy of some of the new reporting requirements. Many in the industry continue to work with the EPA to update these regulations to ensure implementation meets desired legislative expectations.

The EU’s demand for quantified methane emissions for imported natural gas is another driving force, prompting a shift toward more detailed emissions accounting and better data transparency. Technologies that provide continuous, real-time monitoring and automated reporting will be crucial in meeting these international standards.

Looking Ahead: Innovation and Collaboration

The roundtable highlighted the critical importance of advancing methane detection and mitigation technologies and integrating them into broader emissions reduction strategies. The United States’ 45V tax policy—focused on incentivizing production of low-carbon intensity hydrogen often via reforming of natural gas—illustrates the growing momentum towards science-based accounting and transparent data management. To qualify for 45V incentives, operators can differentiate their lower emissions intensity natural gas by providing foreground data to the EPA that is precise and auditable, essential for the industry to meet both environmental and regulatory expectations. Ultimately, the success of methane reduction strategies depends on collaboration between the energy industry, technology providers, and regulators.

The roundtable underscored that while significant progress has been made in addressing methane emissions, technical, regulatory, and operational challenges remain. Collaboration across industry, government, and technology providers is essential to overcoming these barriers. With better data, regulatory alignment, and investments in new technologies, the energy sector can continue to reduce methane emissions while supporting global energy demands.

———

HETI thanks Chris Duffy, Baytown Blue Hydrogen Venture Executive, ExxonMobil; Cody Johnson, CEO, SCS Technologies; and Nishadi Davis, Head of Carbon Advisory Americas, wood plc, for their participation in this event.

This article originally appeared on the Greater Houston Partnership's Houston Energy Transition Initiative blog. HETI exists to support Houston's future as an energy leader. For more information about the Houston Energy Transition Initiative, EnergyCapitalHTX's presenting sponsor, visit htxenergytransition.org.

Houston battery recycling company signs 15-year deal to supply Texas flagship facility

green team

Houston- and Singapore-headquartered Ace Green Recycling, a provider of sustainable battery recycling technology solutions, has secured a 15-year battery material supply agreement with Miami-based OM Commodities.

The global commodities trading firm will supply Ace with at least 30,000 metric tons of lead scrap annually, which the company expects to recycle at its planned flagship facility in Texas. Production is expected to commence in 2026.

"We believe that Ace's future Texas facility is poised to play a key role in addressing many of the current challenges in the lead industry in the U.S., while helping the country meet the growing domestic demand for valuable battery materials," Nishchay Chadha, CEO and co-founder of Ace, said in a news release. "This agreement with OM Commodities will provide us with enough supply to support our Texas facility during all of its current planned phases, enabling us to achieve optimal efficiencies as we deploy our solutions in the U.S. market. With OM Commodities being a U.S.-based leader in metals doing business across the Americas and Asia with a specialty in lead batteries, we look forward to leveraging their expertise in the space as we advance our scale-up efforts."

The feedstock will be sufficient to cover 100 percent of Ace's phase one recycling capacity at the Texas facility, according to the statement. The companies are also discussing future lithium battery recycling collaborations.

"Ace is a true pioneer when it comes to providing an environmentally friendly and economically superior solution to recycle valuable material from lead scrap," Yiannis Dumas, president of OM Commodities, added in the news release. "We look forward to supporting Ace with lead feedstock as they scale up their operations in Texas and helping create a more circular and sustainable battery materials supply chain in the U.S."

Additionally, ACE shared that it is expected to close a merger with Athena Technology Acquisition Corp. II (NYSE: ATEK) in the second half of 2025, after which Ace will become a publicly traded company on the Nasdaq Stock Market under the ticker symbol "AGXI."

"As we continue to scale our lead and lithium battery recycling technologies to help support the markets for both internal combustion engines and electric vehicles, we expect that our upcoming listing will be a key accelerator of growth for Ace,” Chada said.

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