The Port of Corpus Christi Authority and Howard Midstream Energy Partners (HEP) have executed a memorandum of understanding (MoU) stating their intention to convert Howard’s Javelina refinery services facility into the region’s first carbon-neutral hydrogen production facility.
Howard’s Javelina facility is strategically positioned in the Port of Corpus Christi with pipeline connectivity to all six of the local refineries. Javelina controls approximately 60 MMcf/d of hydrogen production through a combination of hydrogen entrained in the refineries’ waste gas that the facility processes and hydrogen produced through a steam methane reformer process. This hydrogen is currently sold back to refineries and other industries where it is used to remove impurities like sulfur during the refining process. The Port of Corpus Christi and Howard ultimately hope to scale hydrogen production for exports to overseas demand centers.
“With this exciting project and progressive partnership with the Port of Corpus Christi, we are demonstrating yet again our commitment to delivering clean, reliable energy that powers communities and business around the world,” said Mike Howard, HEP chairman and CEO.
Hydrogen is a flexible energy carrier with high energy density. It has many of the same applications as traditional fossil fuels, yet produces no carbon emissions. It can be combusted directly or used in fuel cells and offers the most viable path to reducing emissions in the steel, cement and shipping industries. Hydrogen atoms can be separated from water (H2O) or from natural gas (CH4), the latter of which is in abundance at the Port of Corpus Christi due to direct connections to the Permian Basin and Eagle Ford shale production fields.
According to the MoU, Howard intends to capture its carbon emissions at Javelina, avoiding atmospheric release which contributes to global warming. The Parties will collaborate to identify uses for the residual CO2 as well as capture and storage options. Captured CO2 can be directed to industries that require it for production, such as steel, or that assimilate it, like cement.
The Port of Corpus Christi is uniquely suited to become the nation’s premier carbon capture and sequestration management hub based on the high density of industrial CO2 emitters, a robust network of existing pipeline infrastructure, and the Port Authority’s ownership of lands leading to state waters in the Gulf of Mexico.
Academics from the University of Texas at Austin have mapped the geology of the Texas Gulf Coast and have determined this region is uniquely suited for injection and storage of pressurized CO2. The Port of Corpus Christi has committed to developing much needed infrastructure to collect and pressurize CO2 for injection in permanent geological storage formations offshore in the Gulf of Mexico. In May, the Port of Corpus Christi partnered with Stabilis Solutions Inc., a leading provider of energy transition services, to facilitate the use of LNG as a marine fuel at the port.
“To the extent that our identity as the leading export gateway for U.S. produced hydrocarbons has been solidified, we see an elegant symmetry in the prospect of becoming the nation’s premier hub for carbon management,” said Jeff Pollack, Chief Strategy and Sustainability Officer for the Port of Corpus Christi.
On Aug. 9, the Intergovernmental Panel on Climate Change (IPCC) released its Sixth Assessment Report, which calls for immediate, unified and aggressive action if the nations of the world are to avoid the most dire impacts of climate change, such as devastating drought and more frequent and intense storms. The report defines the imperative for elimination of all CO2 emissions by 2050 and for the development of infrastructure to capture and permanently store carbon.
In the wake of the IPCC report, the Port of Corpus Christi has redoubled its commitment to lead atmospheric decarbonization of the energy sector and to embrace the energy transition.
“The mandate in the latest IPCC report is clear, and while the energy sector certainly can’t shoulder this responsibility on its own, we must lead by example,” said Sean Strawbridge, CEO for the Port of Corpus Christi. “Our future as the ‘Energy Port of the Americas’ starts with building a scalable carbon capture and storage solution to serve the needs of our existing customers and convert more Texas gas into carbon neutral hydrogen for the global markets.”
Recommended Reading
Scout Taps Trades, Farm-Outs, M&A for Uinta Basin Growth
2024-11-29 - With M&A activity all around its Utah asset, private producer Scout Energy Partners aims to grow larger in the emerging Uinta horizontal play.
NOG Commits Up to $160MM to Appalachian Basin Joint Venture
2024-12-12 - Northern Oil and Gas has entered a joint development program with an Appalachian Basin operator, which wasn’t named, in exchange for a 15% working interest, the company said.
Q&A: Exxon Mobil Pioneers the Permian and Guyana
2024-12-03 - Liam Mallon, Exxon Mobil’s upstream president, discusses how XOM liquids production has hit a 40-year high on the 25th anniversary of the Exxon-Mobil merger, and plans for the future.
After Big, Oily M&A Year, Upstream E&Ps, Majors May Chase Gas Deals
2025-01-29 - Upstream M&A hit a high of $105 billion in 2024 even as deal values declined in the fourth quarter with just $9.6 billion in announced transactions.
Oxy CEO Hollub Sees More Consolidation Coming in Permian, Globally
2024-11-21 - Occidental Petroleum CEO Vicki Hollub names emissions and water management as top challenges for Permian operators and an incentive for growth.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.