December 15, 2025
Since our last update on the Gulf Coast six months ago, there has continued to be considerable interest and activity underway in the region for the hydrogen sector. Two Gulf states in particular, Louisiana and Texas, have significant projects underway that showcase how hydrogen can be a viable commodity, used as a feedstock to generate ammonia, e-Fuels, and other valuable derivatives.
Dr. Bill Cassidy, the senior Senator from Louisiana, has been outspoken about how he sees hydrogen contributing to the state’s energy portfolio and overall U.S. energy security. Last month, FCHEA participated in the 2025 Louisiana Energy Security Summit with the Senator and other public and private sector representatives to engage dialogue on Louisiana’s role in creating jobs, boosting manufacturing, advancing low-carbon energy to power America’s future, including hydrogen, direct air carbon capture, and other innovative technologies.
FCHEA President Frank Wolak moderated a session, “Supporting Louisiana’s Communities and Competitiveness Through Energy Leadership” that featured FCHEA members Air Liquide and Topsoe. Other FCHEA members – Plug Power and JERA Americas – provided updates on the progress of their facilities and developments in Louisiana and across the broader Gulf region.
The Hydrogen Council and McKinsey & Company recently released the Global Hydrogen Compass 2025 which reports that $110 billion in investment is now committed across more than 500 projects worldwide that are past final investment decision (FID), in construction, or already operational – an increase of $35 billion increase since last year. The report ranks North America as second in total committed investments with $23 billion, citing the strong percentage, 85%, of existing global low-carbon hydrogen production already located there. In the “Clean hydrogen case studies” section of the Hydrogen Compass report, the two U.S. projects highlighted, were along the Gulf Coast.
One of the efforts profiled by McKinsey in this report was a low-carbon ammonia project in Louisiana. CF Industries joined with fellow FCHEA member JERA Co. Inc. to form a joint venture with Mitsui & Co., Ltd., to construct a $4 billion, autothermal reforming (ATR) ammonia production facility at CF Industries’ Blue Point Complex in Ascension Parish. The facility will produce around 1.4 million metric tons of low-carbon ammonia and include a carbon dioxide (CO2) dehydration and compression unit at the site to prepare captured CO2 for transportation and sequestration. CF Industries is investing an additional $550 million to build and operate scalable infrastructure at the site, including for storage and loading of the CO2. Approximately 2.3 million metric tons will be transported and stored per year
Another CF carbon capture project is just nine miles south of the Blue Point Complex. In July, the company began operation of a CO2 dehydration and compression facility at its Donaldsonville Complex that will enable the transportation and permanent geological sequestration of up to 2 million metric tons of CO2 per year, with partner ExxonMobil. CF Industries expects to produce approximately 1.9 million tons of low-carbon ammonia per year at the Donaldsonville Complex.
In St. Gabriel, Louisiana, a new 15-ton-per-day (TPD) hydrogen liquefaction plant operated by Hidrogenii, another joint venture between FCHEA members Plug Power and Olin, entered its final commissioning phase. The facility utilizes Olin’s by-product hydrogen from chlorine production, liquifying it for trailer shipments to Plug’s customers.
Texas has also been positioning its existing energy infrastructure to keep investment and projects flowing into the state.
Air Liquide already has an established hydrogen infrastructure and distribution network with its industrial facilities and world’s largest hydrogen storage cavern in Spindletop. After securing new long-term hydrogen supply agreements, the company announced nearly $50 million for strategic upgrades to its pipeline system and new compression and distribution equipment for existing facilities.
Also showcased in the McKinsey report, Electric Hydrogen has one of its 100 megawatt (MW) HYPRPlant electrolyzer system operating at the Roadrunner Power-to-Liquids Facility in Texas. The company was recently selected to supply large-scale electrolyzer plants for another e-Fuels plant currently under construction in south Texas. The $7 billion ‘Matagorda’ project will produce 1.4 million tons of e-methanol per year by combining hydrogen and captured CO2. Electric Hydrogen will manufacture the electrochemical stack at its Devens, Massachusetts, gigafactory, and the rest of the components and equipment will be built in Texas.
There is tremendous opportunity to use or build on existing infrastructure to increase hydrogen production and utilization in the U.S. Seeing the potential to generate valuable low-carbon export fuels such as ammonia and e-Fuels using hydrogen, FCHEA members are moving forward in the Gulf Coast, with technologies, partnerships and innovation to advance the country’s collective goals of energy security and prosperity.
