Texas Pushes to Lead in Hydrogen Production with Massive Gulf Coast Investments

Texas is charging ahead as a rising force in hydrogen production, blending old-school energy expertise with federal support and heavyweight private investment to reshape its future around sustainable energy.

From late 2024 into the middle of 2025, the Texas Gulf Coast has taken center stage in America’s hydrogen boom. Thanks to a hefty $1.2 billion federal investment, two major efforts—the Gulf Coast Hydrogen Hub and the industry-led HyVelocity Hub—are laying the foundation for Texas to crank out more than 1.8 million metric tons of hydrogen each year and roll out a brand-new hydrogen infrastructure at scale.

Big names like Air Liquide North America, Chevron, ExxonMobil, and Plug Power are stepping up in a big way, expanding large-scale hydrogen production and developing storage systems. With over 1,000 miles of hydrogen pipelines—some of them decades old—Texas is tapping into its deep-rooted petrochemical base to get a leg up on the competition.

• Air Liquide operates the Spindletop facility, which holds a massive 4.5 billion cubic feet of hydrogen—one of the few sites in the U.S. with that kind of storage muscle.

• Plug Power has its sights set on producing 500 tons of green hydrogen per day in Texas by 2025.

• Chevron and ExxonMobil are teaming up on low-carbon hydrogen production and expanding pipeline networks under the Gulf Coast Hydrogen Hub initiative.

• HyVelocity is taking the lead on building out eight green hydrogen facilities across the Gulf and South Texas regions.

Texas is placing big bets on both green hydrogen—made through electrolysis powered by renewables—and blue hydrogen, which uses carbon capture and storage (CCS) to cut emissions from natural gas-based production.

It’s a natural fit. Texas has an abundance of wind and solar energy, vast natural gas fields, and unique salt domes perfect for underground hydrogen storage. Facilities like Spindletop help balance supply and demand, all while boosting energy security. And with more hydrogen pipelines under construction, the state is gearing up to connect its production centers to national and even global supply chains.

The cooperative muscle behind HyVelocity and the Gulf Coast Hydrogen Hub shows how public and private forces are coming together. The federal dollars flowing in are part of a broader $7 billion Hydrogen Hubs initiative—and the fact that Texas secured over a sixth of that pot speaks volumes about its growing influence in America’s hydrogen strategy.

Still, there’s no such thing as a free lunch. Producing green hydrogen through electrolysis requires a ton of water. A 2025 study shows Texas’s hydrogen industry could end up consuming up to 6.8% of the state’s total water supply by 2050. That could hit already water-stressed Gulf Coast communities especially hard.

There’s no question—Texas has everything going for it to lead the U.S. (and possibly the world) in sustainable energy with hydrogen at its core. The energy experience is here, the hydrogen pipelines are in place, and the policies lean pro-growth. But whether this shift truly delivers on its planet-friendly promise depends on smart management of water, carbon emissions, land use, and how well local communities are brought into the conversation.