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H 2 pipelines of the US Gulf Coast

Peregrine Bush, Senior Director, Data & Technology, Global Energy Infrastructure

The US Gulf Coast is not just a hub for traditional energy sources like oil and gas; it’s also emerging as a leader in the development of hydrogen infrastructure. This cleanburning fuel holds immense potential for a low-carbon future, and a key element of this transition is a robust network of hydrogen pipelines.

The Gulf Coast boasts a significant advantage when it comes to hydrogen transportation. The region already possesses over 1,000 miles of hydrogen pipelines. The existing pipeline networks stretch from the Houston Ship Channel in Texas to New Orleans, Louisiana. These pipelines were built to deliver hydrogen from natural gas to refineries and chemical plants for various industrial processes. Companies are now capitalising on these networks and expanding them further.

Pipelines are a safe and efficient way to move large volumes of hydrogen over long distances. Unlike trucking, pipelines have a lower environmental footprint and can deliver hydrogen at a more competitive price, reducing upfront costs associated with building out new networks by repurposing them from existing gas infrastructure. As the demand for clean energy grows, we can expect to see further expansions. New projects are planned, like the HyVelocity Hub, proposed by seven industry participants including AES Corporation, Air Liquide, Chevron, ExxonMobil, Mitsubishi Power Americas, Orsted, and Sempra Infrastructure, aiming to create a large-scale hydrogen production and transportation infrastructure along the Gulf Coast. These developments are vital for connecting hydrogen production facilities with industrial users and potential future applications like hydrogen fuelling stations for clean transportation.

Despite the promise, challenges remain. Hydrogen requires specialized pipelines due to its different properties compared to natural gas. Ensuring the safety and integrity of these pipelines is paramount. The long-term economic viability of hydrogen pipelines depends on the future price of hydrogen, political intervention and the success of the hydrogen economy.

The network of hydrogen pipelines on the Gulf Coast is a critical piece of the puzzle for a clean energy future. By leveraging existing infrastructure, expanding the network strategically, and addressing the challenges, the region can position itself as a global leader in the production, transportation, and utilisation of hydrogen.

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