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Texas hydrogen sector urges certainty, ports coordination and targeted incentives as projects proceed

House Committee on Energy Resources · April 21, 2026

Summary

Industry groups and developers told the committee that Texas retains large hydrogen assets and projects but that federal incentive uncertainty and permitting bottlenecks have shelved many proposals; developers urged streamlined permitting, port engagement and targeted incentives to keep projects viable.

Susan Shiflett of the Texas Hydrogen Alliance and David Burns of Linde told the committee that Texas retains a large existing hydrogen footprint — from refinery and chemical hydrogen to pipelines and storage — and that while some early clean-hydrogen proposals have been shelved, several market‑anchored projects continue to move forward. Burns described Linde’s planned Jefferson County facility that will produce hydrogen from natural gas, capture roughly 2.2 million tons of CO2 per year and use permanent sequestration arranged with an industry partner. He said the project supports more than 1,200 construction jobs and about 38 permanent positions once commissioned.

Shiflett urged the Legislature and regulators to provide predictable timelines, streamlined permitting pathways, and early port engagement so export-oriented derivatives (ammonia, methanol) can reach international markets without bottlenecks. Both witnesses said federal tax credits and hub funding (including 45Q and recent DOE allocations) shaped investment decisions; uncertainty and shortened eligibility timelines have delayed or shelved some projects. Panelists urged targeted state-level measures — not broad mandates — to sustain projects that are market‑anchored and tied to credible offtake. "Hydrogen is still here," Shiflett said. "Capital is ready, but we do need certainty." Committee members asked the Railroad Commission about rulemakings on hydrogen pipeline materials and about timelines; the Commission said it has begun work and will report back with a schedule.

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