Research

The Hydrogen Economy

The energy industry continues to face growing energy demands from an increasing population, while also being called to reduce carbon emissions on a significant scale. Innovations in technology and process, including Carbon Capture, Utilization, and Storage, provide one pathway for an array of industries both to meet demand and to attempt to achieve carbon neutrality. Toward that end, industry and government are increasingly focused on the use of hydrogen, an energy source touted as an affordable, reliable, clean, and secure energy by the U.S. Department of Energy (DOE) and industry groups alike. The DOE has billed hydrogen as the fuel product that can “enable U.S. energy security, resiliency, and economic prosperity.”i As a key player in the oil and gas industry, Texas has the opportunity to lead the way in providing that energy stability and reliability, while also seeing the economic benefits of advancing the potential future of fuel.

Carbon Capture, Utilization, and Storage: Incentives

The Texas energy industry faces a significant challenge today. The oil and gas industry is being asked to continue to provide reliable energy for an increasing population as well as for developing and emerging economies who strive to lift themselves out of ‘energy poverty’, while simultaneously meeting growing calls to reduce carbon emissions and address climate change. The pressure from financial institutions, in concert with federal regulatory agencies, means that the state must incentivize large-scale deployment of carbon capture technology.

Electricity Grid

Establishing a more reliable electric grid is an issue critical to the state, as significant effects from unexpected weather extremes exposed our need for more dispatchable energy. At the same time, Washington and Wall Street have increased demand for energy that is carbon neutral, if not carbon free. The ability to meet carbon neutral goals, while ensuring thermal baseload and dispatchable generation on the grid, will be challenged by the need to effectively integrate and effectively utilize our mix of coal, natural gas, wind, solar, nuclear and other sources.

CARBON CAPTURE, UTILIZATION AND STORAGE (CCUS)

CCUS is an acronym that represents Carbon Capture, Utilization and Storage. The carbon that is captured is the carbon dioxide that is emitted from producing facilities such as oil and gas refineries, petrochemical plants, electric power plants, cement, steel and other manufacturing facilities. The combustion of fossil fuels such as coal, oil, natural gas and other hydrocarbons produces this CO2 emission, and it represents a significant portion of these industrial process plants’ “carbon footprint.”

Texas and a Hydrogen Economy

Carbon Capture, Utilization, and Storage: Incentives

ELECTRICITY GRID

CARBON CAPTURE, UTILIZATION AND STORAGE (CCUS)

The Hydrogen Economy