By: Matt Welch
The Trump administration’s decision to grant Texas primacy over Class VI carbon storage wells is excellent news for the future of energy in the state. It’s also an opportunity to increase investment in the state’s vast natural gas resources by developing a much-needed hydrogen market in the Gulf Coast region.
The Environmental Protection Agency’s decision comes amid the administration’s early focus on accelerating permitting and reigning in government spending, both necessary and long overdue. Cutting waste and ensuring that taxpayer dollars are directed toward programs that align with national priorities is a fundamental responsibility of the federal government.
In an era of heightened geopolitical competition, the United States faces a defining choice: continue to invest in next-generation energy technologies, such as hydrogen and carbon capture, or risk ceding ground to global competitors.
Separating excessive or misaligned spending from investments that secure America’s long-term economic and energy future is crucial. The Department of Energy’s Hydrogen Hubs (H2Hubs) Program falls squarely into the latter category.
The recent decision to cancel federal funding for the Pacific Northwest Hydrogen Hub and California’s ARCHES program could have been done for a variety of reasons. The administration’s energy dominance agenda does not align with projects reliant on renewable energy, and the agency was also reviewing whether to move forward with a second phase of funding for the two hubs.
However, the administration is taking aim at the other five hydrogen hubs, including those that leverage America’s strategic advantage in natural gas. Hubs in the Appalachian, Gulf Coast and Midwest regions offer a market for increased natural gas production and enhanced American energy independence. They represent a clever use of public resources that directly aligns with the administration’s energy agenda.
The HyVelocity Hub is a prime example of harnessing abundant natural gas reserves and pairing them with advanced carbon capture technologies to produce low-carbon hydrogen. With Texas holding primacy over Class VI wells, permitting for the carbon storage needed to support these projects can move more efficiently and predictably. It’s a model that balances economic realism with geopolitical demands — and it’s built on America’s existing energy strengths.
The $1.2 billion in federal funding serves as a catalytic investment, unlocking an additional $10 billion in private capital investment in the Gulf Coast. Texas boasts a skilled energy workforce ready to scale hydrogen capacity by leveraging its world-leading energy infrastructure, which would create 45,000 job opportunities over HyVelocity’s lifetime. Combined with streamlined state-level carbon capture permitting, these advantages position the United States to deploy low-carbon hydrogen more quickly and competitively.
Rather than importing technologies or relying on foreign energy markets, we can lead with our own resources and expertise.
Backing out of the H2Hubs now opens the door for America’s competitors — particularly China — to seize the lead. Beijing is investing $33 billion in hydrogen infrastructure and manufacturing, aiming to control supply chains and dominate future export markets. If the United States steps back, we risk falling behind in a race that directly affects national security and economic strength.
That’s why it’s essential to apply spending cuts with a scalpel, not a sledgehammer. Fiscal responsibility means prioritizing projects that offer high returns — on jobs, technology and global influence. Hydrogen hubs that align with American energy production, especially those rooted in natural gas and supported by industry expertise, meet that test.
Canceling the H2Hubs at this stage doesn’t halt plans; it pulls the rug out from under developers, local partners and workers who have committed significant resources based on the promise of federal support. Abruptly withdrawing funding after contracts have been signed and commitments made sends the wrong message to communities in need of economic revitalization and undermines confidence in America’s ability to follow through on large-scale industrial projects — something global competitors will be quick to exploit.
The hydrogen economy is no longer speculative. It’s real, it’s growing, and it’s geopolitical. Countries that dominate hydrogen production, infrastructure and exports will shape the global energy landscape for decades. America can and should lead that effort on our terms, using our own resources.
The administration is right to challenge the status quo of unchecked spending. As it charts a path forward, preserving targeted hydrogen investments that reinforce energy independence, job growth and American manufacturing should be part of that agenda.
America’s rise as a natural gas superpower was enabled by continuously opening new markets for this abundant and affordable fuel. We’ve never backed down from an opportunity to lead in energy. We shouldn’t start now.
Source: https://dcjournal.com/preserving-hydrogen-hubs-a-strategic-investment-in-american-energy-dominance/
