Gulf Coast Hydrogen Hub (HyVelocity H2Hub)

By Veronica Serrano - Texas Climate Jobs, January 24, 2024

Austin, Texas – Today the Texas AFL-CIO, a state federation of labor unions representing more than 240,000 members in Texas, passed a resolution on the HyVelocity Hub at the 2024 COPE Convention. The resolution urges HyVelocity “to immediately resolve its differences with Texas labor organizations by committing to binding community workforce agreements and labor peace agreements to ensure a just transition for unionized fossil fuel workers impacted by the transition to clean hydrogen” and “urges the Department of Energy, and all Texas policymakers to hold HyVelocity accountable to union concerns.”

Additional information: Texas Unions, Community, and Climate Groups Release Statement on HyVelocity Hydrogen Hub

Additional Information: Texas Climate Jobs Project statement on DOE’s HyVelocity’s decision 

Additional information: Texas Climate Jobs Project files HyVelocity public information requests

By Abbe Ramanan, Amanda McKay, David Schlissel, Anika Juhn, et. al. - Clean Energy Group, January 18, 2024

By Abbe Ramanan - Linked In, October 30, 2023

On October 13th, the U.S. Department of Energy announced the recipients of the Regional Clean Hydrogen Hubs (“H2Hubs”) funding. H2Hubs will award up to $7 billion to seven regional hydrogen hubs around the country. Disappointingly, more than half of the money from this massive federal investment will go towards Hubs producing hydrogen from fossil fuels with carbon capture and storage (CCS), also known as blue hydrogen. This massive investment ignores major concerns cited by climate scientists, environmental justice advocates, and clean energy experts.

One major concern identified by climate scientists is especially worrying: hydrogen gas leaked into the atmosphere is an indirect greenhouse gas that extends the lifetime of methane in the atmosphere, which means hydrogen has 35 times the climate warming impacts of CO2. A massive buildout of hydrogen infrastructure at this scale, without further research into how to safely and securely transport and store hydrogen, will almost certainly lead to significant short-term warming.

Although DOE has stated that each Hub’s projected benefits played a large role in determining awards, the H2Hubs process has suffered from a lack of transparency. Prospective awardees were not required to publish their proposals publicly, so while many of the Hubs promise community benefits, how these community benefits will be generated – and how those benefits will outweigh the potential harms of each Hub – remain opaque. DOE is hosting a series of local engagement opportunities for each Hub, which will hopefully provide opportunities to cut through the hype and learn more about what these projects will mean for the communities impacted.

While we don’t know much about these Hubs, what we do know suggests that most of these projects will do more harm than good:

By staff - Texas Climate Jobs Project, October 25, 2023

HyVelocity is poised to receive $1.2 billion to build Texas Gulf hydrogen hub

Houston, Texas – Today the Texas Climate Jobs Project, Commission Shift, Air Alliance Houston, West Street Recovery, the Coalition for Environment, Equity, and Resilience, Sierra Club Lone Star Chapter, Sunrise Movement ATX, Texas AFL-CIO, and the Texas Gulf Coast Area Labor Federation released the following statement in response to the Department of Energy’s decision to move forward and negotiate with HyVelocity to award $1.2 billion to build a hydrogen hub in the Texas Gulf:

“We are deeply distressed by the Department of Energy’s decision to advance the HyVelocity hydrogen application in Texas. Through the Department of Energy Regional Clean Hydrogen Hub program, the Biden administration is poised to transfer $1.2 billion in taxpayer dollars to HyVelocity, whose application sponsors include ExxonMobil and Chevron, and whose supporting partners include Amazon, Governor Greg Abbott, and the Texas Railroad Commission.” 

“Our organizations are on the front lines of environmental justice, labor organizing, and community work to reduce carbon emissions and improve living conditions across the Texas Gulf, and HyVelocity’s lack of transparency and refusal to make adequate concrete commitments leave us concerned. We urge the Department of Energy to compel HyVelocity to resolve its differences with our organizations before choosing to move the applicant further in the process.” 

“This includes, at a minimum: prioritizing projects that use renewable energy like wind and solar to help reduce overall carbon emissions; binding community workforce agreements for construction workers with strong Justice40 commitments; and binding labor peace agreements to ensure a just transition for fossil fuel workers.”

By Veronica Serrano - Texas Climate Jobs Project, October 13, 2023

Houston, Texas – Today Texas Climate Jobs Project, a nonprofit organization working with more than twenty labor organizations in Texas including the Texas AFL-CIO, announced it has filed public information requests with public bodies across Texas that are listed as partners on HyVelocity’s website. 

Today’s announcement to pursue more information about the HyVelocity hydrogen hub comes after the Department of Energy’s decision to select the HyVelocity application as one of its regional clean hydrogen hubs.

“Enough is enough,” said Bo Delp, executive director of Texas Climate Jobs Project. “HyVelocity, which is partnered with some of the largest and wealthiest corporations on Earth, is poised to receive $1.2 billion in hard earned taxpayer dollars and Texas families deserve to evaluate these projects in the light of day.”

“While we welcome the concept of a hydrogen hub in Texas, without concrete agreements in place with labor organizations this application could have profoundly negative impacts on working people in Texas.” 

Workers in Texas face growing racial and economic inequality and worsening safety standards, and HyVelocity has failed to provide meaningful answers for how it intends to mitigate these deeply concerning dynamics in the Texas economy. 

Texas Climate Jobs Project and its coalition of more than twenty Texas labor organizations are calling on HyVelocity to commit to binding community workforce agreements and labor peace agreements to address these concerns and ensure a just transition for fossil fuel workers.

Link: Website

Link: Digital thread on today’s announcement

By Veronica Serrano - Texas Climate Jobs Project, October 13, 2023

Texas Climate Jobs Project and the Texas AFL-CIO released the following statement in response to the Department of Energy’s decision to award the HyVelocity Hub application federal grant dollars to continue its pursuit of developing a hydrogen hub in the Gulf Coast region of Texas:

“A hydrogen hub in the Gulf Coast region has the potential to transform industries in Texas, and for more than a year labor organizations in Texas have raised concerns about the lack of transparency involved in the project as well as its impact on workers. Now that these corporations are poised to receive taxpayer dollars to develop this hub, it is critical to ensure that all involved in this project redouble efforts to ensure that public funds are used to create safe, family-sustaining jobs.

We support the concept of hydrogen hubs and what they can bring to Texas, but we are disappointed in the lack of any real commitment from Texas applicants to ensure that workers have a voice in the process. The Biden administration has consistently delivered for workers around clean energy projects across the country and we urge them to hold Texas applicants accountable to make sure that the needs of workers and communities in Texas are addressed on these hydrogen hub projects. 

Workers in Texas face growing racial and economic inequality and worsening safety standards, which makes strong labor standards ever more necessary today. Texas is the only state in the U.S. that doesn’t require employers to provide workers’ compensation insurance and Texas also leads in worker deaths. We are ready to work together to ensure that the growing hydrogen industry in Texas creates jobs in which workers can support their families and where they can go home safely every night.”

By Patrick Sullivan, Center for Biological Diversity; Karen Feridun, Better Path Coalition; Peter Hart, Food and Water Watch; Maya van Rossum, Delaware Riverkeeper Network - Carbon Capture and Storage (CCS) Facts, October 13, 2023

WASHINGTON, D.C. – The Biden administration announced today that it will fund seven hydrogen hubs with $7 billion in taxpayer dollars to rapidly expand the production, transport, and use of hydrogen across the nation – sacrificing communities, worsening localized pollution and water crises, doubling down on national sacrifice zones, and perpetuating our reliance on fossil fuels. 

“Throwing billions at hydrogen hubs deepens our dependence on fossil fuels and worsens the climate emergency,” said Maggie Coulter, an attorney at the Center for Biological Diversity’s Climate Law Institute. “President Biden should be urgently investing in proven and increasingly affordable solar and wind energy. It’s wasteful and misguided to fund false solutions like hydrogen that only further burden frontline communities.”

The Department of Energy’s announcement to fund regional hydrogen hubs in the Mid-Atlantic, Appalachia, the Gulf Coast, California, the Midwest, the Dakotas/Minnesota, and the Pacific Northwest flies in the face of the numerous adverse impacts such hubs will have on communities. Billions of dollars in funding for the planned hydrogen buildout subjects already disproportionately adversely affected communities to more pollution and dangerous infrastructure.

“Today’s announcement is a pledge of allegiance to dirty energy by the Biden administration. It is at once a betrayal of environmental justice communities that have been suffering at the hands of the same polluting industries that will now benefit from this misappropriation of taxpayer dollars and of future generations who will suffer the climate chaos hydrogen hub development guarantees,” said Karen Feridun, Co-founder of the Better Path Coalition in Pennsylvania.

Earlier this year, over 180 regional and national climate, community and environmental groups urged the Department of Energy to reject the “hydrogen hype” and ditch funding to expand hydrogen-based technologies touted as climate solutions by the fossil fuel industry. In fact, the vast majority of hydrogen is generated from fossil fuels, and it itself is an indirect greenhouse gas. 

“The build out of massive hydrogen infrastructure is little more than an industry ploy to rebrand fracked gas. The Biden Administration has clearly fallen for this scam hook, line and sinker. This multi-billion dollar bet on greenwashed dirty energy will undermine efforts to address the climate crisis, while increasing pollution of our air and water, and milk taxpayers for billions in new fossil fuel subsidies,” said Jim Walsh, Policy Director of Food & Water Watch. 

“The avalanche of funding from the Infrastructure Law to create Hydrogen Hubs threatens to doom our national commitment to keep the earth from global climate catastrophe. Efforts to replace greenhouse gas emitting energy sources with renewable and truly clean energy will be undone by these subsidies to support methane and other polluting fuels that will make matters worse. Our government must stop investing in dirty energy and instead launch a full-on campaign for non-polluting renewables,” said Maya van Rossum, the Delaware Riverkeeper, leader of Delaware Riverkeeper Network.

Hydrogen production requires massive amounts of water; takes more energy to produce than it generates; is more likely to explode and burns hotter than conventional fossil fuels; and is more corrosive to pipelines – increasing threats in already overburdened communities, and extending our nation’s reliance on fossil fuels. 

“We need an ambitious transition away from dirty energy, not another taxpayer subsidy that enables Big Oil to repackage fossil fuels as so-called clean energy,” said Sarah Lutz, Climate Campaigner at Friends of the Earth US. “The Biden Administration should not be funding hydrogen infrastructure that will lock in decades more of dirty energy production in frontline communities already overburdened with pollution.”

By Veronica Serrano - Texas Climate Jobs Project, October 11, 2023

TEXAS UNIONS, FAITH COMMUNITY CALL FOR TRANSPARENCY AND LABOR STANDARDS IN HYDROGEN ENERGY PLANNING

Department of Energy expected to announce next steps for $8 billion program on Friday

Union members and community activists took part in a banner drop to bring attention to lack of transparency, commitment to strong labor standards around a planned hydrogen hub in the Houston area 

Action follows concerns raised by Texas congressional delegation

Houston, TX — Union members and community activists gathered near the outside of the Hydrogen North America conference and dropped a 15-foot banner from a Houston overpass and picketed, demanding transparency and a commitment now to strong labor standards from HyVelocity Hub planners.

The HyVelocity Hub is applying for taxpayer dollars to build a clean hydrogen hub in the Gulf as part of the Department of Energy’s $8 billion Regional Clean Hydrogen Hub program. HyVelocity states its vision for a Texas hydrogen economy “could add an estimated $100 billion to Texas’ GDP.”

“The HyVelocity Hub is seeking taxpayer assistance for this project, and we have a collective responsibility to ensure that our dollars result in high-paying jobs performed by skilled union workers, and that safety is at the forefront,” said Bo Delp, executive director of Texas Climate Jobs Project.