More on Hydrogen and Texas…

How many hydrogen revolutions and sub-revolutions could happen in Texas? Hard to say. The answer is limited first by imagination and then by the normal constraints on any innovation.

But Texans are pretty good at imagining and at getting around constraints. So, specifically…Could commercially feasible green hydrogen be produced in the Texas Panhandle using wind-powered electricity generation?

Here’s the opportunity and problem to be solved:

Hydrogen produced by electrolysis requires electricity. But even if the hydrogen produced by the electrolysis is used downstream as a clean-burning fuel, if the electricity used to produce the hydrogen was generated by burning fossil fuels, then the net emissions reduction for that entire process is reduced. (Note that this is also a problem that electric vehicles have. Sure, no operating emissions. But what about the electricity used to power the EV? Is that electricity green?).

The Texas Panhandle is one of the few places in North America where wind power is abundant and effective in generating reduced emissions electricity and receiving the positive benefits of the lower-carbon economy:

 According to the American Wind Energy Association (AWEA), as of 2020, Texas has the most installed wind capacity in the United States, with over 34 GW of installed capacity. A significant portion of this capacity is located in the Texas Panhandle.

 Wind power in the Texas Panhandle has also brought significant economic benefits to the region. As of 2020, the wind industry in Texas supports over 27,000 jobs, and it is estimated that over $1.5 billion in new investment was attracted to Texas.

 According to the Electric Reliability Council of Texas (ERCOT), in 2020, wind energy generated 22% of the electricity in the state. The Texas Panhandle was responsible for a large percentage of this generation.

 The construction and operation of wind farms in the Texas Panhandle has brought significant revenue to local rural communities. According to the AWEA, landowners in Texas can earn between $3,000 and $10,000 per wind turbine per year in lease payments. This is a good revenue source for farmers and ranchers who perpetually contend with market and weather volatility. Indirectly, then, Texas agriculture benefits from this additional revenue.

 Wind power in the Texas Panhandle has also contributed to reducing the state’s greenhouse gas emissions. In 2020, wind power in Texas prevented the emission of approximately 18 million metric tons of carbon dioxide, equivalent to the emissions of 4 million cars.

 The capacity factor for wind farms in the Texas Panhandle is around 45%, which means that the turbines are able to generate a significant amount of electricity compared to other areas with lower wind speeds and capacity factor.

So, wind power in the Texas Panhandle really is a win for Texans, a win for the Texas economy, a win for the environment, and might become, in time, with investment and development, a win for large scale users of greener electricity such as green hydrogen producers.

The challenge after production of green hydrogen would be finding a buyer, and then getting the green hydrogen to that buyer. But perhaps an answer to those challenges is not that far off?

The Texas Panhandle consumes a lot of fertilizer in its vast cotton, wheat and sorghum farming operations. Most of that fertilizer is made with ammonia from natural gas feedstock. But could hydrogen become a cost-effective and logistically feasible feedstock for ammonia to be used in fertilizer for the region?

This the challenge and opportunity for smart and ambitious Texans to reckon with. And if history is a guide, my bet would be that someone is already working on an answer. That’s why I’m betting on the hydrogen revolution in Texas.