Leveraging Permian Basin Assets for the Emerging Clean Hydrogen Economy

The Permian Basin, a pivotal energy hub, can utilize hydrogen production to address ongoing energy challenges and decarbonization efforts. Specifically, wind and solar energy play a key role through understanding of utilization, the levelized cost of hydrogen (LCOH), and curtailment. Analyzing these factors reveals that the LCOH becomes more affordable as utilization increases and electricity costs decrease. Furthermore, curtailed wind and solar power could have produced up to 55,000 metric tons of hydrogen in 2022, a value expected to rise in the upcoming years. Lastly, a case study was performed to establish a foundation for optimizing curtailed power, electrolyzer utilization, and LCOH that requires further exploration. As efforts towards a greener world progress, the Permian Basin can become a vital contributor to a more sustainable future in Texas and beyond.