The Greater Houston Partnership and the Center for Houston’s Future (CHF) recently led a delegation of clean hydrogen sector leaders to Japan and South Korea. This mission aimed to advance collaboration and strengthen ties within the rapidly expanding global clean hydrogen ecosystem, marking a significant step in Houston's leadership in the energy transition.  During the visit, Brett Perlman, Managing Director of CHF, signed a Memorandum of Understanding (MOU) with the leader of the Japanese Hydrogen Association, setting the stage for strategic collaborations that will boost clean hydrogen production both in East Asia and along the U.S. Gulf Coast.  Key moments of the mission included the Japan – U.S. Gulf Coast Clean Hydrogen Roundtable, where Perlman and Partnership Vice President of International Investment and Trade John Cypher shared insights into Houston’s hydrogen leadership.  Delegation members had the opportunity to tour cutting-edge hydrogen facilities across Japan and South Korea, including Chiyoda’s Liquid Organic Hydrogen Carrier (LOHC) production plant, Hanwha Daesan’s green energy fuel cell facility, Hyundai HyNet’s steel hydrogen shipment center, the SK Hydrogen Liquefaction Plant, and Bloom Energy’s fuel cell production facility. The group also met with high-level government officials from Yokohama, Kawasaki City, and Tokyo to discuss future collaborations.  The delegation also participated in H2 Week 2024 in Seoul, Korea, one of the world’s premier hydrogen conferences, where they connected with South Korean government officials, energy leaders and industry innovators.   “Strategic partnerships with key international allies are amplified by these missions and crucial for unlocking the full potential of emerging industries like clean hydrogen. At a time where energy and energy security are paramount, these missions not only reinforce Houston’s position as the global energy capital but also foster prosperity in the region. Together, we’re forging innovative solutions the world urgently needs in today’s energy landscape,” said John Cypher, Partnership Vice President of International Investment and Trade.  Houston’s Gulf Coast region was recently designated as one of the nation’s seven hydrogen hubs by the U.S. Department of Energy and is poised to play a pivotal role in this emerging sector. The Gulf Coast already accounts for more than a third of U.S. hydrogen production and is equipped with over 1,000 miles of hydrogen pipelines spanning 48 production facilities. In addition, the HyVelocity Hydrogen Hub, led by a coalition of seven core industry partners with support from academic and other organizations like CHF, is set to receive up to $1.2 billion in funding from the Bipartisan Infrastructure Law.  The growth of the clean hydrogen sector in the Houston region is expected to create up to 45,000 direct jobs, 35,000 construction jobs, and 10,000 permanent positions. International collaborations with partners like Japan and Korea, Houston’s fourth and seventh largest trading partners, will be essential for sustaining and accelerating this growth.  Learn more about Houston's hydrogen ecosystem.

People are moving to Texas, and businesses are building new facilities. That rapid growth is straining resources, particularly water. According to a new report, Texas must invest $154 billion over the next 50 years in new water supply and infrastructure—critical needs to support the state’s expanding population and booming industries. The report from Texas 2036, a nonpartisan public policy think tank, highlights the urgency of this investment. Without reliable water infrastructure, Texas could face the loss of a million jobs and more than $160 billion in economic impact over the next five decades. The report underscores a stark reality: a comprehensive, sustainable funding strategy for water is necessary to keep Texas economically resilient and competitive. Investment Needs The 2022 Texas Water Plan and US EPA initially estimated that Texas would need $132 billion in water infrastructure investments over the next 50 years. However, Texas 2036 has adjusted this figure for inflation, raising the projected cost to $154 billion. While state and federal programs—such as the State Water Implementation Fund for Texas (SWIFT) and the newly established Texas Water Fund—are expected to provide around $40-45 billion in financial support over the coming decades, a significant long-term funding gap persists.   Click to expand Texas 2036 graphic showing cost estimate for water infrastructure needs Dual Challenges According to the report, Texas faces two challenges. First, the state must develop a broad, diversified water supply portfolio to meet the demands of a rapidly growing population and economy while strengthening resilience to future droughts. The water supply gap poses additional risks to the state’s electricity generation, as low water levels during droughts could limit power from natural gas, nuclear and coal plants. Second, aging and deteriorating drinking water and wastewater systems. Over the past five years, nearly 3,000 boil water notices have been issued annually, leaving communities without reliable water service.  Impact on Industries A severe, prolonged drought would have widespread effects on industries across Texas. Manufacturing, a key driver of the state’s economy, is one example.  The top five manufacturing regions—Dallas-Fort Worth, the Greater Houston area, East Texas (Beaumont, Tyler, Lufkin), Central Texas (College Station, Temple, Waco), and South Central Texas (San Antonio, Victoria)—together account for 82% of the state’s manufacturing GDP and 77% of its manufacturing jobs. According to research from Rice University’s Baker Institute for Public Policy, within the next 20 years, these regions could face nearly $20.8 billion in lost manufacturing GDP and over 116,000 job losses due to water shortages during a drought of record. The potential economic fallout underscores the need for immediate and strategic investments in water infrastructure to safeguard key industries and the communities that rely on them. Advocacy at the Capitol  Water infrastructure is one of the executive priorities for the Greater Houston Partnership for the 89th Texas Legislative Session. These priorities serve as a roadmap for the upcoming session, highlighting key areas of interest for the business community. The Partnership supports increased funding for the Texas Water Fund, preferably establishing a dedicated funding stream to ensure long-term, sustainable investments in the state’s water resources.   Learn more about how the Partnership advances strong policy that fosters long-term growth and upward economic mobility for the region.