Full Title: Houston As the Epicenter of a Global Clean-Hydrogen Hub
Author(s): McKinsey & Company, Center for Houston's Future, Greater Houston Partnership, Houston Energy Transition Initiative
Publisher(s): McKinsey & Company, Center for Houston's Future, Greater Houston Partnership, Houston Energy Transition Initiative
Publication Date: June 2, 2022
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Around the world, governments are recognizing the importance of clean hydrogen in building an energy system to reach net-zero carbon emissions. As of October 2021, 17 governments had published hydrogen strategies and more than 20 were in the process of developing strategies. The US Department of Energy (DOE) has declared clean hydrogen crucial to achieving President Biden’s goals of a 100 percent clean electrical grid by 2035 and net-zero carbon emissions by 2050.
The current economics of clean-hydrogen production and distribution do not currently support large-scale adoption by customers to replace lower-cost, higher-carbon-intensity alternatives. Regional hydrogen hubs have the potential to accelerate the scaling of hydrogen through concerted development of demand, supply, and infrastructure. But policy interventions will be required to drive down costs and incentivize the adoption of clean hydrogen.
A Houston-led clean-hydrogen hub could have sizeable and lasting impact on the region. Based on the estimated potential, the economic, environmental, and social benefits in 2050 could be substantial, fundamentally shaping the long-term vision of the hydrogen hub.