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U.S. Department of Energy selects HyVelocity to develop Gulf Coast H2 hub

The HyVelocity Hub team has been selected by the U.S Department of Energy (DOE) Office of Clean Energy Demonstrations to begin award negotiations for the development of the HyVelocity Gulf Coast H2 Hub, which is estimated to receive up to $1.2 B in Bipartisan Infrastructure Law funding. HyVelocity will leverage the world’s largest concentration of existing H2 production and end-use assets in Texas and Southwest Louisiana to deliver the benefits of clean H2 and good-paying jobs to local communities.

HyVelocity is an industry-led H2 hub that includes seven core industry partners: AES Corporation, Air Liquide, Chevron, ExxonMobil, Mitsubishi Power Americas, Ørsted and Sempra Infrastructure. HyVelocity is administered by GTI Energy and includes a wide array of organizations, including organizing participants, the University of Texas at Austin, The Center for Houston’s Future, and Houston Advanced Research Center. HyVelocity also has 90+ supporting partners from industry, community engagement and labor organizations, non-profits, academic, and state and local governments.

With more than 1,000 miles of dedicated H2 pipelines, 48 H2 production plants and dozens of H2 end-use applications, the Gulf Coast is already the heart of H2 infrastructure and use in the U.S. HyVelocity will build on the region’s diverse array of energy resources, including H2 production facilities and pipelines, renewable energy, a large base of industrial energy consumers, and a skilled workforce.

The HyVelocity Hub is primed to deliver jobs and economic benefits to the most vulnerable communities in the Gulf Coast, while striving to enhance labor standards, improve local air quality, and ensure that disadvantaged communities receive at least 40% of the clean energy benefits, in accordance with the Biden Administration’s Justice40 Initiative. The HyVelocity Hub will continue to prioritize close collaboration with community and labor organizations to ensure voices are heard and input is addressed.

HyVelocity’s impressive mix of support from industry and diverse sets of regional stakeholder organizations demonstrates strong collaboration and a shared commitment to decarbonize economies. HyVelocity’s partners are contributing decades of experience and keen competencies to achieve DOE's goals to rapidly deploy clean energy benefits to Americans, and accelerate production, delivery, storage and end-use of clean H2 in the U.S.

The DOE’s Regional Clean H2 Hubs (H2Hubs) will kickstart a national network of clean H2 producers, consumers and connective infrastructure while supporting the production, storage, delivery and end use of clean H2. Funded by President Biden's Investing in America agenda, the H2Hubs will accelerate the commercial-scale deployment of clean H2—helping generate clean, dispatchable power, create a new form of energy storage, and decarbonize heavy industry and transportation. Together, they will also reduce 25 MM metric tpy of CO2 emissions from end uses—an amount roughly equivalent to combined annual emissions of 5.5-MM gasoline-powered cars—and create tens of thousands of good-paying jobs across the country while supporting healthier communities and strengthening America's energy security.

“Unlocking the full potential of H2—a versatile fuel that can be made from almost any energy resource in virtually every part of the country—is crucial to achieving President Biden’s goal of American industry powered by American clean energy, ensuring less volatility and more affordable clean energy options for American families and businesses,” said U.S. Secretary of Energy Jennifer M. Granholm. “With this historic investment, the Biden-Harris Administration is laying the foundation for a new, American-led industry that will propel the global clean energy transition while creating high quality jobs and delivering healthier communities in every pocket of the nation.” 

“This historic investment will further cement Texas' position as the national leader in energy and H2 production,” said Texas Governor Greg Abbott. “I thank all the organizations that worked hard to bring this HyVelocity Hub and major investment to Texas. This Regional Hub will leverage our state’s energy infrastructure to meet the growing need for reliable and affordable H2 in the U.S. and boost economic opportunities for businesses and workers in our state. There is no better place to produce American energy than in Texas.”