Hamer: Texas Must Be The Leader In Green Hydrogen

Thanks to our business-friendly climate, embrace of innovation, impeccable resources, and world-class workforce, Texas has been rewarded with a significant opportunity to lead the nation in producing green hydrogen, an increasingly popular option in America's diverse energy mix. State leaders like Governor Greg Abbott have positioned the state to lead the development of green hydrogen and other energy options for America. This is the best possible outcome for the people of Texas and our state's economy, because when businesses choose Texas, everyone wins.

The AES Corporation and Air Products announced plans to invest approximately $4 billion to build, own, and operate a new green hydrogen production facility in Wilbarger County. The investment would support more than 1,300 construction jobs with those workers creating the largest green hydrogen facility of its kind in the nation. When the plant begins commercial expected operation in 2027, it will support hundreds of permanent jobs, strengthening local businesses and growing our economy. Leaders from the company and state officials project that it will generate a half-billion dollars in revenue for the state as well.

The burgeoning green hydrogen industry is increasingly focused on clean mobility applications, including trucking, as well as other industrial markets. Demand is increasing in these legacy Texas industries for solutions that help ensure compliance with federal regulations fast-tracking decarbonization without sacrificing reliability, affordability, or output. Now, thanks to this new proposed facility, Texas businesses are able to find a solution right in their own backyard.

Green hydrogen, which is made by splitting water molecules with electricity generated from renewable energy sources like wind and solar, offers exciting opportunities for broader economic growth, and we are uniquely positioned to capitalize. Texas already produces more wind energy than any other state, and our unique geography makes generating electricity for the production of green hydrogen through solar power favorable as well.

This only increases the importance of making investments to ensure that green hydrogen producers feel at home in the Lone Star State.

Helping our economy thrive well into the future means always looking ahead, embracing opportunity and welcoming innovators. It also means having the right tax and regulatory model so that they have more incentives to grow jobs and paychecks.

Given we continue to see more Uhauls coming our way; given we have won Site Selection's Governor's Cup for 10 consecutive years and CEO Magazine's Best State for Business for 18 consecutive years… the Texas business model is working and paying dividends in manufacturing, business services, health services – and technology. So, if we pave the way, green hydrogen could be the next sector Texas takes over.

State officials and business leaders rightfully celebrated the new green hydrogen production facility in Wilbarger County, but now it's time to carry the momentum of this announcement forward and ensure that the green hydrogen industry knows that in selecting where to plant their flag, that Texas is ripe for the picking.

Editor's Note: The above guest column was penned by Glenn Hamer, CEO of the Texas Association of Business. The column appears in The Rio Grande Guardian International News Service with the permission of the author. Hamer can be reached by email via: hdurbin@mwcllc.com.