Abstract
As the largest oil and gas producer in the United States, Texas confronts significant challenges in its shift toward decarbonization. This study explores the potential for green hydrogen in Texas as a substitute for current development, underscoring numerous advantages such as ample renewables, established demand, and operational infrastructure. We present an hourly-resolution, cross-sector assessment framework to optimize grid-integrated green hydrogen supply paths from managing local applications to meeting potential export opportunities. The analysis indicates that by 2030, Texas could have over 50 million tons of green hydrogen available at $1.5/kg. Even with the incrementality, deliverability, and temporal matching requirements of 45 V, green hydrogen remains more competitive than blue hydrogen. On the supply side, the grid-electrolysis integration results in synergetic benefits, including overall cost reductions, less curtailment of renewables, and enhanced operational flexibility and reliability. On the demand side, this cost-competitive hydrogen could bring the cost of hydrogen fueling and ammonia production down to $4/kg and $350/ton respectively, with a significant impact in replacing fossil fuels in transport and industry. For most of the states, green hydrogen and ammonia imported from Texas could become an affordable alternative to local supplies. Through both onshore pipelines and offshore shipments, Texas has the potential to develop as a major green fuel supplier, aiding in decarbonization efforts not only for the United States but also beyond.