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

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

The project’s first phase is targeted to produce more than 1.1 million tonnes per annum of low-carbon ammonia by the end of 2027. Photo via Houston.org

4 energy companies join forces on low-carbon ammonia project on the Houston Ship Channel

team work

Four companies from all around the world have agreed to work on a large-scale, low-carbon ammonia production and export project on the Houston Ship Channel.

Tokyo-based INPEX Corporation, Paris-based Air Liquide Group, Oklahoma City-based LSB Industries Inc., and Houston-based Vopak Moda Houston LLC have agreed to collaborate on the project, which is expected to deliver its first phase by the end of 2027 with the production of more than 1.1 million tonnes per annum (MTPA) of low-carbon ammonia.

“As we approach the achievement of our net zero target by 2050, the unveiling of our low carbon ammonia project in Texas, USA, stands as a momentous testament to INPEX's strong commitment to environmental leadership," INPEX President and CEO Takayuki Ueda says in a news release. "This innovative endeavor marks a significant milestone to create a clean fuel supply chain for a sustainable future.

"By harnessing the power of cutting-edge technologies and collaborative partnerships with Air Liquide, LSB and Vopak Moda, we are accelerating the transition to a low-carbon world, while solidifying our position as a pioneer in energy transformation and a responsible global energy player,” he continues.

Earlier this year, the project completed a feasibility study. Each of the companies will collaborate in various capacities, according to the release, including: Air Liquide and INPEX partnering on low-carbon hydrogen production with their respective technologies; LSB and INPEX collaborating on low-carbon ammonia production, with LSB selecting the ammonia loop technology provider, the pre-FEED, and the engineering, procurement and construction of the facility and LSB overseeing day-to-day operations; INPEX and LSB would sell the low-carbon ammonia and finalize off-take agreements; and Vopak Moda, which currently operates ammonia storage and handling infrastructure, will maintain its ownership of the existing infrastructure and future storage built.

“This project is well aligned with our strategy to become a leader in the global energy transition through the production of low-carbon ammonia,” Mark Behrman, LSB Industries president and CEO, says in the statement. “As a long-standing, highly experienced nitrogen producer and developer of nitrogen production facilities, we are uniquely positioned to play a key role in a critical element of this project by overseeing the design, construction and operation of the ammonia loop."

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Solar panel-topped bus pilot program to launch with Houston, Dallas routes

all aboard

Texas roadways will soon see buses with solar panels thanks to a new partnership.

FlixBus and Greyhound have teamed up with global solar company Green Energy to install roof-mounted solar panels on its buses. The companies will pilot the program with buses operating between Houston and Dallas.

“Expanding the use of solar panels on buses across the United States, FlixBus and Green Energy demonstrate how innovation, sustainability, and profitability can go hand-in-hand,” James Armstrong, president CEO of the Americas at Green Energy, says in a news release. “This partnership is a great example of how modern technology can contribute to a more sustainable future for the transportation and long-distance travel industry.”

Flix’s buses hope to cut carbon dioxide emissions, reduce idling, lower diesel consumption, and double battery life by utilizing solar technology. Also, using the charge controller with an Internet of Things solution will enable FlixBus to monitor diesel savings and carbon dioxide reduction, solar production, and also gather and analyze data for future improvements.

The initiative aligns with FlixBus's commitment to “advance sustainable and affordable travel for everyone,” according to the company. Plans are currently underway to expand this initiative to additional markets, with New Orleans also currently being used.

“Environmentally responsible operations are a core value for FlixBus, and we’ve been consistently pushing the boundaries of intercity transportation with innovative solutions that can help us reduce our impact,” Jay Miller, head of business development, west region at Flix North America, adds. “We’re thrilled to expand our partnership and bring this technology to the U.S. in yet another key step toward achieving our sustainability goals.”

FlixBus, a German company with its North American headquarters in Dallas, acquired Greyhound in 2021.

The pilot program will be a route between Houston and Dallas. Photo via Green Energy

Chevron partners with HISD for unique training program for maritime industry

future workforce

Chevron Shipping is partnering with Houston Independent School District (HISD) in an effort to enhance Career and Technical Education (CTE) with new programming options.

One of the programs includes the Austin High School Maritime Studies program that is associated with Port of Houston Partnership in Maritime Education. Representatives from Chevron, HISD, and the Port of Houston participated in a signing ceremony at Austin High School in an event that featured a tour of the school's maritime-focused classrooms. The classrooms will serve as a hands-on learning environment that focuses on CTE and maritime careers.

“Chevron Shipping takes great pride in supporting the communities in which we operate, and we are excited to join forces with Austin High,” Barbara Pickering, president of Chevron Shipping Company said in a news release. “With a national and worldwide labor shortage in maritime related careers, this partnership will provide needed resources and open doors for students to pursue the abundant and lucrative career paths in the maritime industry – here in Houston and around the world.”

Students in the program will have access to state-of-the-art simulation equipment, and be able to gain professional certifications.

"Career and Technical Education is a critical component in preparing our students for the high-demand, high-skill jobs that are shaping the future of our workforce,” says Superintendent Mike Miles in a news release.

The program also includes development of skills to help them obtain careers in the maritime industry. Also included in the partnership will be guest lectures, workforce development, and mentorship opportunities with industry experts.

“By aligning our CTE programs with industry needs, we’re ensuring students have a direct pathway to rewarding careers in fields like maritime and shipping,” Miles adds. “This partnership is about giving our students real-world experience and opportunities that position them well after graduation."

Dockworkers in Texas, East Coast start strike with major economic, political consequences on the line

eyes on the picket line

From Maine to Texas, dockworkers at 36 ports across the eastern U.S. are now on strike for the first time in decades. And the work stoppage could snarl supply chains — leading to shortages and higher prices if it stretches on for more than a few weeks.

Workers began walking picket lines early Tuesday in a strike over wages and automation, even though some progress had been reported in latest contract talks. The contract between the ports and about 45,000 members of the International Longshoremen’s Association expired at midnight.

The strike also comes just weeks before next month's tight presidential election, and could become a factor if there are shortages impacting voters.

In early picketing, workers outside the Port of Philadelphia walked in a circle and chanted “No work without a fair contract.” The union, which is striking for the first time since 1977, had message boards on the side of a truck reading: “Automation Hurts Families: ILA Stands For Job Protection.”

Local ILA president Boise Butler said workers want a fair contract that doesn’t allow automation of their jobs.

Shipping companies made billions during the pandemic by charging high prices, he said. “Now we want them to pay back. They’re going to pay back,” Butler said.

He said the union will strike for as long as it needs to get a fair deal, and it has leverage over the companies.

“This is not something that you start and you stop,” he said. “We're not weak,” he added, pointing to the union's importance to the nation's economy.

At Port Houston, at least 50 workers started picketing around midnight local time carrying signs saying “No Work Without a Fair Contract."

The U.S. Maritime Alliance, which represents the ports, said Monday evening that both sides had moved off of their previous wage offers. But no deal was reached.

The union’s opening offer in the talks was for a 77% pay raise over the six-year life of the contract, with President Harold Daggett saying it’s necessary to make up for inflation and years of small raises. ILA members make a base salary of about $81,000 per year, but some can pull in over $200,000 annually with large amounts of overtime.

Monday evening, the alliance said it had increased its offer to 50% raises over six years, and it pledged to keep limits on automation in place from the old contract. The alliance also said its offer tripled employer contributions to retirement plans and strengthened health care options.

The union wants a complete ban on automation. It wasn’t clear just how far apart both sides are.

In a statement early Tuesday, the union said it rejected the alliance's latest proposal because it “fell far short of what ILA rank-and-file members are demanding in wages and protections against automation.” The two sides had not held formal negotiations since June.

Supply chain experts say consumers won’t see an immediate impact from the strike because most retailers stocked up on goods, moving ahead shipments of holiday gift items.

But if it goes more than a few weeks, a work stoppage could lead to higher prices and delays in goods reaching households and businesses.

If drawn out, the strike will force businesses to pay shippers for delays and cause some goods to arrive late for peak holiday shopping season — potentially impacting delivery of anything from toys and artificial Christmas trees to cars, coffee and fruit.

The strike will likely have an almost immediate impact on supplies of perishable imports like bananas, for example. The ports affected by the strike handle 3.8 million metric tons of bananas each year, or 75% of the nation’s supply, according to the American Farm Bureau Federation.

It also could snarl exports from East Coast ports and create traffic jams at ports on the West Coast, where workers are represented by a different union. Railroads say they can ramp up to carry more freight from the West Coast, but analysts say they can’t move enough to make up for the closed Eastern ports.

J.P. Morgan estimated that a strike that shuts down East and Gulf coast ports could cost the economy $3.8 billion to $4.5 billion per day, with some of that recovered over time after normal operations resume.

Retailers, auto parts suppliers and produce importers had hoped for a settlement or that President Joe Biden would intervene and end the strike using the Taft-Hartley Act, which allows him to seek an 80-day cooling off period.

But during a Sunday exchange with reporters, Biden, who has worked to court union votes for Democrats, said “no” when asked if he planned to intervene in the potential work stoppage.

In an update Tuesday morning, the White House maintained that administration officials were working “around the clock” to help negotiations move forward — which included being in direct contact with both USMX and ILA. Biden and Vice President Kamala Harris were also “closely monitoring” potential supply chain impacts, the White House added, enlisting a task force to meet daily and prepare for any disruptions.

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Krisher in reported from Detroit. Associated Press journalists Ben Finley in Norfolk, Virginia, Mae Anderson and Wyatte Grantham-Philips in New York, Dee-Ann Durbin in Detroit, Josh Boak in Washington, and Annie Mulligan in Houston contributed to this report.