US clean energy project developer MMX Resources has applied to the US Department of Energy (DoE) for funding to develop a clean hydrogen hub in the Permian basin.

The proposed Trans Permian H2Hub would span the cities of San Antonio, San Angelo, Big Spring, Midland, Odessa, El Paso, Fort Stockton, Alpine, Presidio and Del Rio. Projects within the hub would include hydrogen bus manufacturing, refuelling stations, green and blue hydrogen production, ammonia and methanol production, solar and wind power, and metropolitan bus transport projects.

“We have filed with the DoE to start the process for the Trans Permian H2Hub. The Bipartisan Infrastructure Law (BIL) and the Inflation Reduction Act (IRA) of 2022 change the landscape dramatically for hydrogen production and use with its supporting tax credits and creation of the regional hydrogen hubs,” says Jack Hanks, president and CEO of MMX, which is based in Texas.

“The Bipartisan Infrastructure Law and the Inflation Reduction Act of 2022 change the landscape dramatically for hydrogen production and use” Hanks, MMX

“With its abundant resources of oil, natural gas, oil and natural gas pipelines, sun, wind, transcontinental interstate highways and railroad access, open space and reusable water resources, the Permian basin has all the requisites to be chosen as one of the regional hubs,” he adds.

The US government has earmarked $8bn of funding for the development of hydrogen hubs under the BIL, with 6-10 proposals expected to be selected.

The IRA, passed in the summer, offers additional support to hydrogen production projects in the form of tax credits of up to $3/kg, positioning the US as one of the world’s most attractive markets for developers. The act also strengthens support for carbon capture and storage (CCS), a key element of most hydrogen hub plans.

As part of its proposed hub, MMX says it would work with natural gas transmission pipelines in the Permian to develop hydrogen blending, as well as cooperating with the four railroads serving the Trans Permian to convert locomotives to hydrogen.

Pecos County projects

MMX is already developing other green and blue hydrogen projects. Last year, it signed a memorandum of understand with electrolyser manufacturer Siemens Energy to develop a green hydrogen project at Pecos County, Texas.

“We are now in discussions with European buyers to purchase green ammonia and/or green methanol converted from the hydrogen,” says Hanks.

MMX is also developing a blue hydrogen project at the Pecos County site, based on autothermal reformer technology coupled with carbon capture powered by renewables. MMX plans to use the hydrogen to fuel Siemens turbines to generate power that would then be marketed by the commodities trading unit of an oil major.

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Author: Stuart Penson