hi to hydrogen

Texas hydrogen research hub opens to support statewide, DOE-backed initiative

The Center for Electromechanics at The University of Texas, Frontier Energy, Inc., and GTI Energy celebrated the grand opening of a hydrogen research and demonstration facility in Austin. Photo via utexas.edu

A Texas school has cut the ribbon on a new hydrogen-focused research facility that will play a role in a statewide, Department of Energy-funded energy transition initiative.

The Center for Electromechanics at The University of Texas, Frontier Energy, Inc., and GTI Energy celebrated the grand opening of a hydrogen research and demonstration facility in Austin as part of the “Demonstration and Framework for H2@Scale in Texas and Beyond” project, which is supported by the DOE's Hydrogen and Fuel Cell Technologies Office.

The hydrogen proto-hub is first-of-its-kind and part of Texas-wide initiative for a cleaner hydrogen economy and will feature contributions from organizations throughout the state. The facility will generate zero-carbon hydrogen by using water electrolysis powered by solar and wind energy, and steam methane reformation of renewable natural gas from a Texas landfill.

The hydrogen will be used to power a stationary fuel cell for power for the Texas Advanced Computing Center, and it will also supply zero-emission fuel to cell drones and a fleet of Toyota Mirai fuel cell electric vehicles. This method will mark the first time that multiple renewable hydrogen supplies and uses have been networked at one location to show an economical hydrogen ecosystem that is scalable.

“The H2@Scale in Texas project builds on nearly two decades of UT leadership in hydrogen research and development” Michael Lewis, Research Scientist, UT Austin Center for Electromechanics, say in a news release. “With this facility, we aim to provide the educated workforce and the engineering data needed for success. Beyond the current project, the hydrogen research facility is well-positioned for growth and impact in the emerging clean hydrogen industry.”

Over 20 sponsors and industry stakeholders are involved and include Houston-based partners in Center for Houston’s Future and Rice University Baker Institute for Public Policy. Industry heavyweights like Chevron, Toyota, ConocoPhillips, and the Texas Commission on Environmental Quality are also part of the effort.

Texas hydrogen infrastructure and wind and solar resources position the state for clean hydrogen production, as evident in the recently released study, “A Framework for Hydrogen in Texas.” The study was part of a larger effort that started in 2020 with the H2@Scale project, which aims to develop clearer paths to renewable hydrogen as a “clean and cost-effective fuel” according to a news release. The facility will serve as an academic research center, and a model for future large-scale hydrogen deployments.

Participants in the DOE-funded HyVelocity Gulf Coast Hydrogen Hub will aim to gain insights from the H2@Scale project at UT Austin. The project will build towards a development of a comprehensive hydrogen network across the region. HyVelocity is a hub that includes AES Corporation, Air Liquide, Chevron, ExxonMobil, Mitsubishi Power Americas, Orsted, and Sempra Infrastructure. The GTI Energy administered HyVelocity involves The University of Texas at Austin, the Center for Houston’s Future, and Houston Advanced Research Center.

“H2@Scale isn't just about producing low-carbon energy, it's about creating clean energy growth opportunities for communities throughout Texas and the nation,” Adam Walburger, president of Frontier Energy, says in a news release. “By harnessing renewable energy resources to create zero-carbon hydrogen, we can power homes, businesses, transportation, and agriculture – all while creating jobs and reducing emissions.”

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A View From HETI

A unanimous settlement has been reached in Blackstone's $11.5 billion acquisition of TXNM Energy. Photo via Unsplash.

A settlement has been reached in a regulatory dispute over Blackstone Infrastructure’s pending acquisition of TXNM Energy, the parent company of Texas-New Mexico Power Co. , which provides electricity in the Houston area. The settlement still must be approved by the Public Utility Commission of Texas.

Aside from Public Utility Commission staffers, participants in the settlement include TXNM Energy, Texas cities served by Texas-New Mexico Power, the Texas Office of Public Utility Counsel, Texas Industrial Energy Consumers, Walmart and the Texas Energy Association for Marketers.

Texas-New Mexico Power, based in the Dallas-Fort Worth suburb of Lewisville, supplies electricity to more than 280,000 homes and businesses in Texas. Ten cities are in Texas-New Mexico Power’s Houston-area service territory:

  • Alvin
  • Angleton
  • Brazoria
  • Dickinson
  • Friendswood
  • La Marque
  • League City
  • Sweeny
  • Texas City
  • West Columbia

Under the terms of the settlement, Texas-New Mexico Power must:

  • Provide a $45.5 million rate credit to customers over 48 months, once the deal closes
  • Maintain a seven-member board of directors, including three unaffiliated directors as well as the company’s president and CEO
  • Embrace “robust” financial safeguards
  • Keep its headquarters within the utility’s Texas service territory
  • Avoid involuntary layoffs, as well as reductions of wages or benefits related to for-cause terminations or performance issues

The settlement also calls for Texas-New Mexico Power to retain its $4.2 billion five-year capital spending plan through 2029. The plan will help Texas-New Mexico Power cope with rising demand; peak demand increased about 66 percent from 2020 to 2024.

Citing the capital spending plan in testimony submitted to the Public Utility Commission, Sebastian Sherman, senior managing director of Blackstone Infrastructure, said Texas-New Mexico Power “needs the right support to modernize infrastructure, to strengthen the grid against wildfire and other risks, and to meet surging electricity demand in Texas.”

Blackstone Infrastructure, which has more than $64 billion in assets under management, agreed in August to buy TXNM Energy in a $11.5 billion deal.

Neal Walker, president of Texas-New Mexico Power, says the deal will help his company maintain a reliable, resilient grid, and offer “the financial resources necessary to thrive in this rapidly changing energy environment and meet the unprecedented future growth anticipated across Texas.”

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