Friday, June 3, 2022

Houston as the epicenter of a global clean-hydrogen hub | McKinsey

Houston as the epicenter of a global clean-hydrogen hub | McKinsey

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  • Texas already benefits from access to renewables and natural gas, with Texas producing more wind-powered generation and natural gas than any other state.3
  • Clean-hydrogen production costs in Texas are expected to improve from 2022 to 2050, with electrolysis-based hydrogen cost decreases attributable primarily to lower renewable costs and electrolyzer-system capital expenditures (capex), and natural-gas-based hydrogen cost decreases attributable to system efficiency gains and capex reductions.
  • The estimated cost of producing natural-gas-based hydrogen with carbon capture and storage (CCS) in 2030 could meet the DOE’s goal of $1 per kilogram of clean hydrogen; however, electrolysis-based hydrogen is unlikely to achieve this target without government interventions in the form of research and development funding or direct incentives for hydrogen production and supporting technologies, such as renewables and CCS.

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