HOUSTON | Ports/Industry Thread

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https://www.chron.com/gulf-coast/art...l-18467432.php

This artist's rendering projects what the USS Texas could look like once it is safely housed along the heart of Galveston's waterfront.

Battleship Texas Foundation

Battleship Texas much closer to securing permanent home in Galveston

The first step is a ten-year lease with the port, coming in at $20,000 a month or more depending on the weather

By Chris Gray
Updated Nov 4, 2023 8:32 a.m.

Battleship Texas cleared an important hurdle in its quest for a permanent home this week. During its regular meeting on Tuesday, the Galveston Wharves board of trustees authorized the creation of a lease between the Port of Galveston and Battleship Texas Foundation, which operates and maintains the historic warship.

“It’s a big step for us,” said Tony Gregory, the foundation’s president and CEO. “We feel like it's a big win. It’s taken a while to convince the port that we should be where we're going to go, but in the end their leadership responded. We think we have a good agreement, and we're excited to move forward on it.”

The proposed lease would be for 10 years with two additional 10-year options, explained port director and CEO of Galveston Wharves Rodger Rees. Once it has been drafted and signed, which Rees said could happen at the board’s next meeting later this month, the foundation would pay the port $20,000 per month in rent; plus $1.2 million (another $20,000 a month) in case an extreme-weather event or other dire scenario forced the port managers to take drastic measures with the ship like towing her out to sea.

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https://www.bizjournals.com/houston/...Pos=6#cxrecs_s

Port of Galveston one step closer to finalizing 4th cruise terminal with approved contract

By Sofia Gonzalez – Reporter, Houston Business Journal
Nov 9, 2023

The fourth cruise terminal at the Port of Galveston is one step closer to coming to fruition thanks to the approval of a $5.3 million engineering and architecture services contract.

The Galveston Wharves Board of Trustees voted to approve the contract for Miami-based Bermello Ajamil & Partners Inc. on Nov. 7. This comes after the board unanimously approved moving forward with a fourth cruise terminal during an Oct. 31 meeting.

The full scope of work that will be performed by BA includes designing the terminal building, a parking garage, marine structure improvements and a passenger boarding bridge. BA will also design civil improvements such as surface parking, access roads and utilities.

Approving the design contract helps the port move closer to finalizing budget and construction plans for the terminal, Rodger Rees, Galveston Wharves port director and CEO, said in a statement.

Preliminary construction estimates are almost $140 million, but efforts are ongoing to trim costs for a final budget, he said. Once the budget is finalized, plans to finance the project with a combination of port cash reserves and revenue bonds can also be finalized.

In March the board engaged BA for preliminary engineering and amended the agreement in April to have the firm develop a schematic-level design, a release says. In addition to engaging BA for engineering and architecture services, the port also approved a construction manager-at-risk contract with Hensel Phelps Construction Co. for preconstruction services in September.

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https://www.houstonchronicle.com/bus...photo-22908133

Port Freeport, Cedar Port awarded combined $26.9M for maritime upgrades from Transportation Department

Dug Begley,
Staff Writer
Nov. 3, 2023

Two major port projects in the Houston area will receive a combined $26.9 million from a competitive federal grant program announced Friday morning, promising not only more efficient goods movement but relief in some ways from air pollution and road congestion.

Federal transportation officials announced the 41 projects chosen for the Port Infrastructure Development Program, operated by the U.S. Department of Transportation Maritime Administration. Maritime Administrator Ann Phillips said the $653 million doled out ensures “that goods move reliably and in greater quantities, strengthening supply chain resiliency across all modes of transportation, and addressing the negative impacts of port operations on public health and the environment that have harmed communities living near the port.”

Port Freeport, in southern Brazoria County, will receive nearly $16 million to expand its Velasco Terminal to both increase its capacity with a 36,900-square foot warehouse, but also redesign operations. The changes will mean work at the terminal does not interfere with other operations at the port, taking goods from ships to the warehouse and then loading them onto trucks.

In Baytown, the Cedar Port Navigation and Improvement District will receive $10.9 million to expand the dock capabilities along the Cedar Port Industrial Park, along with connecting the dock via a heavy haul road to the tenants of the industrial park. In addition to dredging, the proposed work adds six spots for barges and 800 feet of mooring space along the Cedar Bayou space.

Exact schedules for the projects were not available, as details of the work are finalized.

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https://www.dredgingtoday.com/2023/1...-7-in-houston/

Work underway on the new Wharf 7 in Houston

PORT DEVELOPMENT

November 16, 2023,
by Zlatan Hrvacevic

Russell Marine LLC has officially kicked off construction of the new Wharf 7 at Port Houston.

The Wharf 7 project consists of 1,000 linear feet of new wharf construction at Bayport Container Terminal.

The work also includes dredging of approximately 300,000 CY of wet and dry excavation, 68,000 LF of drilled shaft foundations, 20,000 CY of structural concrete, mooring pier, west end retaining wall, fender systems, utilities, and a one-story pre-cast concrete stevedore support building.

Next, the contractor will perform clearing, grubbing, and placement of fill in a dredge material placement area.

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https://www.bizjournals.com/houston/...Pos=1#cxrecs_s

Port Houston Commission approves $745M capital plan, $428M operating budget for 2024

By Sofia Gonzalez – Reporter, Houston Business Journal
Nov 21, 2023

Port Houston is well on its way to continue its growth trajectory following the approval of its fiscal year 2024 budget.

The Port Commission of the Port of Houston Authority approved a $745 million capital plan and $428 million operating budget during a Nov. 13 workshop.

“Going after grants in a big way, the 2024 budget both supports Port Houston’s investments in its community and its landside and waterside infrastructure, while continuing to seek grants from local, state and the unprecedented federal funding to support its stewardship efforts and drive economic prosperity and job creation,” the port said.

The port anticipates nearly $613 million in capital awards to help with operations. Under the capital plan budget, Port Houston will continue to expand its container capacity, as well as its general cargo facility redevelopment work.

In August, the port celebrated the completion of its $91.6 million Bayport Container Terminal Expansion project, also known as Wharf 6. It was made possible through a $21.84 million grant from the federal government's Port Infrastructure Development Program, which aims to improve coastal seaports across the U.S.

Meanwhile, awards estimated at $132 million are also anticipated for Project 11, the Houston Ship Channel’s massive expansion project. The project, which totals $1 billion, previously was said to be lacking about $180 million in federal funding.

The first portion of the project, Segment 1A, which runs from Bolivar Roads to Red Fish Light 1, was completed in February 2023 on schedule and on budget. New Jersey-based Weeks Marine and California-based Curtin Maritime are currently working on the remaining Galveston Bay segments.

Officials with the port previously said the portion under construction is from Redfish to Bayport Ship Channel along with the Bayport Ship Channel itself, also known as Segment 1B and Segment 2. The expansion of the Barbours Cut Terminal — the last portion of the Galveston Bay region expansion — will be executed by the U.S. Army Corp.

The portions of the project that fall within the Galveston Bay region are expected to be completed by late 2024, Ric Campo, chairman of the Port Commission of the Port of Houston Authority, previously said during an event.

As for further efforts to supplement the upcoming fiscal year budget and remain competitive, the Port Commission also approved tariff rate changes to reflect escalating costs and expenses.

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https://www.houstonchronicle.com/bus...d-18506103.php

Port of Houston reports record container exports in October

By Erica Grieder,
Staff writer

Updated Nov 22, 2023 1:21 p.m.

Port Houston had its busiest month for exports in October, authorities said last week, even as total tonnage was slightly down year-to-date after the port’s record-breaking volumes last year.

The port handled 126,011 fully loaded, 20-foot equivalent units during the month compared with 124,739 in September and 118,781 in October 2022. That brings total loaded exports — primarily resins and chemicals, the port said — to 1.15 million through the first 10 months of 2023, an increase of 10% compared with the same period last year.

Loaded import volumes, by contrast, were down 7% for the first 10 months of 2023 compared with last year. Total tonnage through Port Houston, similarly, is down 7% year-to-date compared with 2022, port officials said.

Last year was the Port of Houston’s busiest, as the global economy recovered from the COVID-19 pandemic and congestion at the California ports of Los Angeles and Long Beach spurred some shippers to turn to the Gulf and East Coasts to bypass the bottlenecks. By the end of 2022, Port Houston had become the fifth largest container port in the United States, up from seventh, handling 7% of all container tonnage.

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https://www.railwayage.com/intermoda...modal-service/

November 29, 2023
Intermodal

UP Expanding Port Houston Intermodal Service (UPDATED, 11/29)

Written by Marybeth Luczak,
Executive Editor

Union Pacific (UP) on Dec. 1 will expand its Houston on-dock rail service to four additional markets.

In cooperation with Port Houston, ocean carriers and Beneficial Cargo Owners (BCO) will have access to rail service between Barbours Cut Container Terminal at Port Houston, Tex., and nine key UP-served markets. The on-dock operation, UP says, will “save customers’ time, reduce greenhouse gas (GHG) emissions and simplify the end-to-end supply chain for all of the Class I railroad’s customers.”

Import and export/empty service will be available Dec. 1 for the following UP intermodal facilities:

Chicago Global 4
Kansas City
Memphis (Marion, AR)
Port Laredo

Back in May, Railway Age reported that on June 1 UP would be launching the new on-dock service at Barbours Cut Container Terminal at Port Houston, providing international shippers of consumer goods with direct rail access to Denver, Colo.; Salt Lake City, Utah; Oakland and Los Angeles, Calif.; and El Paso, Tex.

The new service will not only reduce truck traffic and GHG, but also “eliminate the need for containers to be trucked approximately 30 miles from the port to the nearest rail facility in Houston [Settegast Yard] for loading onto railcars, reducing highway congestion in the Houston area,” UP reported in its May 30 announcement.

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https://www.bizjournals.com/houston/...t-cruises.html

Record revenue and cruise activity to fuel Port of Galveston in 2024


By Sofia Gonzalez – Reporter, Houston Business Journal
Nov 29, 2023

Port of Galveston leaders expect 2024 will be a year filled with record revenue, cruise sailings and passenger counts.

The Galveston Wharves Board of Trustees officially adopted its budget for the upcoming year on Nov. 21. It includes projected operating revenue of $72.5 million and $35.5 million in operating expenses, resulting in net income of $37 million, according to officials.

“Record revenues will allow the port to fund major expansion and maintenance projects to maximize port assets, generating regional economic growth and more jobs,” Rodger Rees, Galveston Wharves port director and CEO, said in a statement.

Revenue is forecasted to be 12% higher than in 2023 thanks to cruise industry growth, which is projected to generate $49.8 million in 2024. Other categories that will contribute to revenue growth include real estate with $10.6 million, dockage at $5.6 million, and cargo wharfage at $2.3 million.

With the addition of a third cruise terminal in November 2022, higher occupancies on larger ships and more sailings, the Port of Galveston now expects to end 2023 a 30% year-over-year increase in cruise passengers. The port hopes to end 2023 with as many as 1.4 million passengers — in 2022, it ended with just over 1 million, reaching that milestone on Dec. 22. This year, the Port of Galveston celebrated its 1 millionth cruise passenger of 2023 on Aug. 28.

In 2024, the port anticipates the number of cruise passengers to grow to 1.6 million, or a year-over-year increase of 14%. This is largely due to a new record of about 390 cruise sailings and the addition of new ships such as the Carnival Jubilee, which Carnival Cruise Line is bringing to Galveston in December.

In Galveston, Carnival currently operates Carnival Breeze, which offers four- and five-day cruises; Carnival Dream, which sails mostly six- and eight-day cruises; and Carnival Vista, which offers seven-day cruises. Carnival Jubilee will replace Vista, which sailed out of Galveston for the last time on Nov. 10.

Carnival Miracle will homeport in Galveston from fall 2024 to spring 2025, bringing the company to four ships based in the local port. Carnival Legend will take over the fourth spot in fall 2025.

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https://www.bizjournals.com/houston/...Pos=0#cxrecs_s

LyondellBasell to sell Ethylene Oxide & Derivates business and Bayport facility to Ineos


By Naomi Klinge – Reporter, Houston Business Journal
Dec 8, 2023

LyondellBasell Industries NV (NYSE: LYB) is selling its Ethylene Oxide & Derivates business, along with its Bayport facility, to Ineos Group Ltd.

Ineos, through Ineos Oxide, will buy the fully integrated platform for $700 million. The Bayport facility is located in the Bayport industrial complex between La Porte and Seabrook.

The transaction is expected to close in the second quarter of 2024 following the completion of planned maintenance at the facility.

The news comes after LyondellBasell decided to double down on sustainability goals by focusing on the circular and low-carbon economies.

"This transaction is evidence of our disciplined focus on value creation through the execution of a key pillar of our strategy — growing and upgrading our core," said LyondellBasell CEO Peter Vanacker. "Successful execution of this strategic pillar involves making difficult decisions to divest businesses which are not part of our core. We remain proud of the positive cash generation, access to advantaged feedstocks, reliability and highly skilled team that makes up the EO&D business and are excited to have reached an agreement with Ineos to enable the business to continue generating value under different ownership. We look forward to collaborating closely with Ineos on a seamless transition."

LyondellBasell is in the process of moving out of the refining business with the renovation of its only refinery, which is located along the Houston Ship Channel. The company will repurpose the facility, potentially for advanced recycling. LyondellBasell initially planned to close the refinery by the end of this year, but the planned closure later was delayed to the first quarter of 2025.

The LyondellBasell deal expands Ineos' "Ethylene Oxide & Derivatives business into the U.S., which is the world's largest market," Ineos Oxide CEO Tobias Hannemann said. "It also complements our existing Ethanolamines production facility in Plaquemine, Louisiana."

Ineos recently grew its business in Houston with the acquisition of an acetic acid plant in Texas City from Tennessee-based Eastman Chemical Co. (NYSE: EMN) for $490 million. That deal closed Dec. 1.

Elsewhere in the Houston area, Ineos has certain U.S. headquarters, such as Ineos Olefins & Polymers USA, in League City.

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https://www.bizjournals.com/houston/...Pos=7#cxrecs_s

Moda Midstream sells 50% stake in Houston Ship Channel terminal to Exolum

By Naomi Klinge – Reporter, Houston Business Journal
Dec 14, 2023

A Spanish company is the latest of several international companies to get involved in a new ammonia production and export facility in the Houston Ship Channel.

Exolum, which operates in pipelines and storage terminals in nine countries, is making its U.S. entrance with the acquisition of 50% of the Vopak Moda Houston terminal from Houston-based Moda Midstream LLC, an EnCap Flatrock Midstream portfolio company. Financial terms were not disclosed, but the transaction is expected to close in the first quarter of 2024.

Houston-based Vopak Moda Houston LLC is a 50-50 joint venture between Moda Midstream and Dutch terminals company Royal Vopak, the latter of which retains its 50% stake.

The marine terminal was designed to store and load ammonia for import or export and opened in the end of 2021. It was the first greenfield terminal to open in the Houston Ship Channel in a decade, the companies said at the time.

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https://www.bicmagazine.com/industry...ough-november/

Port Houston handles nearly 3.5M TEUs through November
DECEMBER 27, 2023 8:28 AM

Through November 2023 Port Houston handled nearly 3.5 million TEUs, a 5% decrease compared to the previous year's record volumes.

For the month of November, loaded export TEUs at Port Houston were down 2% compared to last November but have remained strong in 2023, up 9% for the year as compared to last year, with a total of 1,268,034 TEUs year-to-date. Demand for Houston’s exports are largely driven by the resins and petrochemical commodities produced in our region. Loaded imports have softened, and at 137,631 TEUs this month were down 16% in November and 8% year to date.

Also this month, Port Houston’s Bayport Container Terminal welcomed one of its largest vessels to-date, the CMA CGM Lisa Marie, with a capacity of nearly 11,000 TEUs. Port Houston worked the ship with five STS cranes, completing 4,974 moves in less than two days.

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https://www.dredgingtoday.com/2023/1...dredging-deal/

GLDD nabs $95M Freeport dredging deal

DREDGING

December 11, 2023, by Eldin Ganic

Great Lakes Dredge & Dock Co. LLC (GLDD), from Houston, Texas, has won a $95 million firm-fixed-price contract for a dredging work in Freeport Harbor, Texas.

Bids were solicited via the internet with one received, the U.S. Department of Defense (DoD) said.

Work locations and funding will be determined with each order, with an estimated completion date of Dec. 7, 2027.

The U.S. Army Corps of Engineers, Galveston District, is the contracting activity.

The Freeport Harbor Channel was deepened to its current depth of 46 feet in the early 1990s.

Also, the Channel Improvement Project will further deepen the channel to authorized depths of 51-56 feet, making Port Freeport the deepest port in Texas and opening the state to larger ships.

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https://www.galvnews.com/news/msc-cr...lock_id=531919

MSC Cruises announces Galveston dates for 2025
By B. SCOTT McLENDON
The Daily News
Jan 11, 2024

GALVESTON

MSC Cruises said Thursday it would would begin booking 2025 sailings from the Port of Galveston.

The sailings would redefine the cruising experiences in the region with the modern amenities available on MSC Seascape, one of the newest and most environmentally friendly ships in the company’s fleet, the line said.

The news comes as the Port of Galveston irons out an agreement to bring the company to its planned $140 million fourth cruise terminal, which could be complete by 2025.

“MSC’s announcement to open sales for the MSC Seascape is an exciting day for our port and our cruise market,” Port Director Rodger Rees said.

“It indicates how close we are to executing an operating agreement with MSC Cruises to bring this world-class cruise experience for the first time to Galveston. Once the operating agreement is finalized, we’ll announce the port’s plans for a proposed fourth cruise terminal at Pier 16.”

Seascape would offer seven-night sailings to Mexico and Central America beginning in late 2025, according to the company.

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https://www.bizjournals.com/houston/...c-cruises.html

It's official: Galveston Wharves, MSC Cruises ink deal for 4th cruise terminal complex

By Olivia Pulsinelli – Assistant managing editor, Houston Business Journal
Feb 6, 2024

The Port of Galveston's fourth cruise terminal complex will get underway soon thanks to a deal with Switzerland-based MSC Cruises.

The agreement between the Galveston Wharves and MSC, which has been in the works since at least 2022, was signed this week. The project is slated to begin in early 2024 and be complete in time for the MSC Seascape to homeport at the new terminal in November 2025, Galveston Wharves said Feb. 6.

MSC's 20-year operating agreement for the terminal includes four five-year extension options. The company will have a set cruise schedule at the terminal, but the port can negotiate with other cruise lines to use the facility when it's available.

The port will develop the $100 million cruise terminal, $42 million parking garage, internal roadway and other improvements using port cash reserves and revenue bonds. Located at Pier 16, the project includes converting an existing cargo warehouse into the 165,000-square-foot cruise terminal.

In November, the Galveston Wharves Board of Trustees approved a $5.3 million engineering and architecture services contract for Miami-based Bermello Ajamil & Partners Inc. The full scope of work includes designing the terminal building, a parking garage, marine structure improvements and a passenger boarding bridge. BA also will design civil improvements such as surface parking, access roads and utilities.

The 20-year strategic master plan that the board approved in 2019 originally projected the fourth cruise terminal would not be needed until 2031. However, the project is getting underway years earlier than expected — and less than two years after the third terminal opened — because Del Monte Fresh Produce Co., a longtime cargo tenant, outgrew its Port of Galveston facilities.

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https://www.bicmagazine.com/industry...s-2023-strong/

Port Houston finishes 2023 strong

JANUARY 23, 2024
8:45 AM

Port Houston ended the year on a high note with container twenty-foot equivalent units (TEUs) up 11% for the month as compared to last December.

In addition, December 2023 was the biggest December on record for loaded exports, which were also up 11%, totaling 119,970 TEUs. Loaded imports increased 11% for the month compared to the previous December, with the Port handling 150,648 TEUs.

For the full year 2023, cargo volumes handled at Port Houston’s two container terminals were down just 4% compared to the Port’s record-shattering performance in 2022, with a total of 3,824,600 TEUs handled in 2023. This small decrease is mostly attributed to a large drop in empty repositioning volumes. Houston remained insulated against any major decrease in volumes by its strong exports, which thrived in 2023 and were driven largely by the demand for resin.

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https://www.bicmagazine.com/departme...ner-terminals/

Port Houston surges to 5th place among U.S. container terminals
BY JANA STAFFORD,
CONTENT DIRECTOR, BIC MAGAZINE
MARCH 1, 2024 12:00 AM

Port Houston has leapt from being the number seven container terminal in the country to number five and it is continuing to grow with key exports including plastics and petrochemicals, along with 60% of the polyethylene resins produced in the U.S.

Roger Guenther, executive director with Port Houston Authority, told attendees during the recent Greater Houston Port Bureau Annual Meeting that Port Houston has weathered numerous challenges and is moving forward strongly.

"We are in the midst of historic demand after the pandemic and back-to-back years of double-digit, 15% growth," Guenther told the attendees. "Back then we were talking about the challenges in the supply chain, with the ships sitting out that were waiting to get in and wondering whether we’re going to have Christmas toys on the shelf. A lot has changed since then."

Guenther said the port did a study on its economic impact in 2022 versus four years earlier, and it showed $100 billion dollars in economic impact for the nation, 300,000 more jobs produced in the state of Texas and $439 billion generated in Texas.

"The Houston Ship Channel is the most important waterway in the country in terms of tonnage and number of ships," he said to the energy industry audience. "It’s all generated in and around what our people do in our industry along the channel. So it’s still very significant.

"We are handling 30% more volume than we did three years ago. We’re continuing to invest in infrastructure. We’re trying to get ahead of the demand curve and we’re building more docks faster than we had planned to do."

The Bayport Container Terminal opened in August 2023 with new Neo-Panamax container cranes that will be able to serve large ships coming through the Panama Canal, Guenther said. The port is making investments now to accommodate bigger ships.

"There’s a pent-up demand for the Neo-Panamax ships. They can’t call here today until we widen and right now, they’re going to the East Coast and the West Coast," he said.

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https://thefacts.com/news/first-vws-...220535602.html

First VWs arrive at Port Freeport



By EMILY HANSON
emily.hanson@thefacts.com
Mar 15, 2024
Updated Mar 15, 2024

FREEPORT — Volkswagen’s operation at Port Freeport is now in business.

The location received its first shipment of vehicles Wednesday. The arrival of vehicles came about one month after Port CEO Phyllis Saathoff told a Brazosport Area Chamber of Commerce luncheon that Volkswagen’s new processing plant was nearing completion.

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https://www.bizjournals.com/houston/...Pos=8#cxrecs_s

World Energy seeks $2B to convert Houston Ship Channel plant to produce sustainable aviation fuel


A developer is seeking a $2 billion federal loan to turn a long-serving biodiesel facility on the Houston Ship Channel into a plant that can produce 250 million gallons of sustainable aviation fuel annually.

Boston-based World Energy was invited this week to apply for the Department of Energy’s Title 17 Clean Energy Financing program to fund the project.

World Energy CEO Gene Gebolys told the Houston Business Journal that the company expects to reach a final investment decision for the project by the end of the year. Construction is expected to begin next year, and the facility is expected to go online in 2027.

Gebolys said the company’s strategy involves selling decarbonization as a service through aviation fuel — an approach that allows World Energy to reach sustainable aviation fuel customers outside of airlines and upset what he describes as a status quo of aviation.

“Airlines will be an important part of this ecosystem — but not the only part,” Gebolys told the Houston Business Journal. "The most important part is the customer that's got people in those airplanes, moving people and products, that enables us to do what we do."

The company could not disclose the footprint of its Galena Park site but said the plant had been producing biodiesel since World Energy acquired it in 2016. The conversion project would be World Energy’s second SAF facility, after the company acquired the former Paramount Petroleum Corp. facility in Paramount, California, and converted that site into an SAF facility.

Part of World Energy’s value calculations also include the capacity to physically move SAF to airports outside of Houston and Texas, including Kansas City International Airport, Denver International Airport and Eppley Airfield in Omaha, Nebraska, through its connection to a Magellan Midstream Partners pipeline.

Gebolys highlighted some of World Energy’s recent customers as examples of potential customers for the converted local facility. The company had already counted companies like Arlington, Virginia-based aircraft giant Boeing Co. (NYSE: BA) and Chicago-based United Airlines Inc. (NYSE: UAL) by 2022, but last October, technology giant Microsoft Corp. (Nasdaq: MSFT) signed a 10-year agreement intended to replace 43.7 million gallons of standard jet fuel with SAF.

“Once we demonstrate the business works, that brings in more investment that enables us to scale up,” Gebolys said. "It's important that we demonstrate that this is a viable alternative to the status quo of aviation."

The Microsoft contract will take its fuel from the Paramount facility. Gebolys said customer announcements for the Ship Channel facility would come closer to construction.

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https://www.bizjournals.com/houston/...hallenges.html

HyVelocity hub just 'tip of the iceberg': Hydrogen industry growth creates demand for jobs, workforce challenges

By Jishnu Nair – Reporter, Houston Business Journal
Mar 22, 2024

As new hydrogen projects begin to take shape along the Gulf Coast, workforce challenges are emerging as well, according to Houston leaders at CERAWeek by S&P Global.

Brett Perlman, CEO of the Center for Houston’s Future, said the Houston area’s planned HyVelocity Hub will need thousands of workers — the White House has estimated the creation of 45,000 local jobs — which is just a fraction of the total needed to bolster the country's clean hydrogen production.

“HyVelocity is sort of the tip of the iceberg when it comes to workforce development,” Perlman said during a CERAWeek panel. “If you look at that magnitude of [federal] investment, it would imply we need to create more than 3.2 million new jobs, or increase the workforce by 30%.”

Engagement needs to happen at multiple educational levels, and skills involving project development and operations and maintenance need to be added to the workforce’s repertoire, leaders said. Meanwhile, companies of all sizes can get involved through internal training and development for hydrogen-related skillsets.

Rich Byrnes, chief infrastructure officer for the Port of Houston, told the Houston Business Journal that educational engagement needs to happen at the earliest level to inspire future workers.

“The timeframe of the hydrogen hub and clean equipment deployment, it’s not going to happen in a year — it’ll be in a decade,” Byrnes said. “Every region in Houston and Harris County is building new workforce development programs or executing them right now.”

Byrne also touted the port’s collaborations with San Jacinto Community College and Houston Community College as examples of engaging local universities with a focus on hydrogen.

The panel also featured Jon Ackerman, co-founder and CEO of Houston-based Moda Midstream. Ackerman said the company had hired a commissioning manager with experience on the Gulf Coast, who would go on to design the company’s training models for its ammonia programs.

“There are new applications of hydrogen, and it is going to require some different skill sets,” Ackerman said. “But your existing base [on the Gulf Coast] is so fantastic.”

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https://www.bizjournals.com/houston/...ral-funds.html

Houston-area chemicals projects land some of $6B decarbonization funding

By Jishnu Nair – Reporter, Houston Business Journal
Mar 26, 2024

Three chemicals projects near the Houston area and the Texas Gulf Coast have been selected for federal funding to drive their decarbonization goals forward.

Spring-based Exxon Mobil Corp. (NYSE: XOM), Denmark-based Ørsted and Germany-based BASF Corp. will negotiate funding for their projects through the Department of Energy’s $6 billion Industrial Demonstrations Program. The money comes from the 2021 Bipartisan Infrastructure Law and the 2022 Inflation Reduction Act.

The projects selected to move forward with negotiations are:

-Exxon Mobil’s Baytown Olefins Plant Carbon Reduction Project, which plans to use hydrogen in place of natural gas to produce ethylene, a feedstock used for textiles and synthetic rubbers. Exxon is negotiating with the DOE for up to $331.9 million, and the project is expected to create 400 new jobs.

-An Ørsted subsidiary is developing the Star e-methanol plant on the Texas Gulf Coast, which could receive up to $100 million from the DOE. The project will use captured carbon dioxide to create up to 300,000 metric tons of e-methanol annually. It is estimated to create 300 construction jobs and 50 permanent positions.

-BASF Corp. is leading the development of the Syngas Production from Recycled Chemical Byproduct Streams project, which uses liquid products to create syngas, a low-carbon feedstock to replace natural gas-fired incineration. The project is expected to land up to $75 million in DOE funding.

The three projects in the Houston area and the Texas Gulf Coast use either hydrogen, captured carbon or renewable power to decarbonize their industrial processes, aiming to tackle sectors that have difficulty reducing their carbon emissions due to a previous lack of alternative options. The award continues a trend of Houston-area projects and companies landing funding through President Joe Biden’s energy transition agenda.