The Texas Public Utilities Commission struck the hydrogen component from an Entergy proposal to build a power generation facility that would burn both natural gas and hydrogen.
In a ruling last week, the PUC said that Entergy did not sufficiently demonstrate reliability or economic benefits to ratepayers associated with hydrogen co-firing at the Orange County station, a new combined-cycle combustion turbine facility with a nominal output of l,215 MW.
The commission added that “there are concerns regarding the environmental effect of emissions to produce gray hydrogen from natural gas as Entergy proposed.”
“Hydrogen co-firing capability is simply not needed by the Orange County station at this time,” the commission added.
However, the commission recognized that Texas is positioned to lead in the development of hydrogen and that the Orange County station is in a favorable location, further noting that Entergy may amend its application in a future proceeding when “there is more robust evidence on the reliability or economic benefits, or both, associated with hydrogen co-firing” at the plant.
Executives at New Fortress Energy said recently they were considering the Orange County power station as a potential offtaker for the company’s Beaumont, Texas green hydrogen facility.
