Exxon has scrapped plans for what would have been one of the world’s largest blue-hydrogen plants. (Reuters)
The Texas project—designed to make 1B cubic feet of blue hydrogen per day—lost its $332M DOE grant this spring, leaving Exxon unable to find enough customers willing to pay a premium over cheaper grey hydrogen.
The setback mirrors broader industry troubles: Federal cuts to the 45V low-carbon hydrogen credit, the shutdown of DOE’s demonstration program, and US efforts to block a global shipping sector carbon price have all eroded market signals needed for large projects to move forward.