Offshore wind in the Gulf of Mexico could power clean hydrogen hubs in Texas and Louisiana

January 4, 2023
 | 
2 min read
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Will Texas and Louisiana become ‘clean’ hydrogen hubs with the help of offshore wind?

The Bureau of Ocean Energy Management’s offshore Wind Energy Areas in the Gulf of Mexico are next in line in the bureau’s offshore wind auction plans, and they are ideally located to produce power for green hydrogen production.

THE BIGGEST HYDROGEN NETWORK IN THE US
Galveston and Charleston Wind Energy Areas are located offshore Texas and Louisiana with potential to connect to the US’ biggest existing network of hydrogen producers and consumers, linked by more than 1400 miles of dedicated hydrogen pipes.

The hydrogen currently flowing in the Texas-Louisiana network is primarily made from natural gas – commonly called grey hydrogen.

But with funding for “clean hydrogen hubs” from the federal government available through the Infrastructure and Jobs Act, and attractive tax credits for ‘clean’ hydrogen available through 2022’s Inflation Reduction Act (IRA), the arguments for the biggest grey hydrogen hub in the US to branch out and become a ‘clean’ hydrogen hub are strong.

LOUISIANA LEADING THE CHARGE TOWARDS OFFSHORE WIND
Offshore wind could help bring scale to ‘clean’ hydrogen production, and the Climate Action Plan of Louisiana places offshore wind front and center of efforts to decarbonize the state’s heavy, hydrogen-dependent industries. Louisiana has also introduced a target of 5 GW offshore wind by 2035.

AEGIR INSIGHTS’ SUBSCRIPTION SERVICE
Aegir Insights recently released our US Gulf of Mexico offshore wind market report to our clients. Reach out to learn more about our market intelligence subscriptions service.

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