Axios Event: Hydrogen is area of opportunity for Houston’s clean energy push

HOUSTON – Often referred to as "the energy capital of the world," Houston is straddling the priorities of emerging industries and legacy oil and gas companies in its clean energy transition.

• Axios Houston reporters Jay Jordan and Shafaq Patel moderated conversations with Rice University's Baker Institute for Public Policy senior director of the Center for Energy Studies Kenneth Medlock, Rep. Lizzie Fletcher (D-Texas) and Center for Houston's Future managing director Brett Perlman at the event. The event was sponsored by American Chemistry Council.

Why it matters: Hydrogen is a key clean energy focus that has drawn strong investment but there are challenges in growing the industry, local leaders said.

What they're saying: "There's still a lot of unknowns with the IRA, largely because some of the tax credits guidance has not been finalized," said Medlock.

• The 45V tax credit for low-carbon hydrogen needs more guidance from policymakers in order to propel new hydrogen capabilities and avoid losing investors, he continued.

Perlman said that Houston has an opportunity to take the existing high-emissions hydrogen industry and transform it into something different.

• "In Houston, we are fortunate because of our heritage in the energy industry, to produce on the Gulf Coast about a third of the hydrogen in the country, and so we are already a hydrogen hub," Perlman said. "What we're not today is a clean hydrogen hub," he continued.

In terms of balancing the influx of clean energy startups with the legacy energy industries Houston was built on, Fletcher said that "I think you see actually a lot of that same work is in collaboration with some of those industries."

Sponsored content:

In a View From the Top sponsored segment, American Chemistry Council CEO Chris Jahn emphasized the need for alignment between Washington D.C. as a policy capital and Houston as an energy capital.

• "We need to get D.C. and Houston aligned on some key priorities going forward, things like advancing safety, reducing emissions and driving innovation and economic growth in our country," Jahn said.