Blue hydrogen is quietly gaining momentum as a key player in the clean energy space. While green hydrogen often dominates the headlines, blue hydrogen—produced using natural gas with carbon capture—is finding serious traction in the U.S. market. Major energy companies like Air Products, CF Industries, ExxonMobil, and ADNOC are not just investing in theory—they’re building large-scale projects that combine energy security with decarbonization.
The Louisiana and Texas Gulf Coast is quickly emerging as the prime hub for blue hydrogen development. With an established natural gas network, carbon storage infrastructure, hydrogen pipelines, industrial customers, and export-ready ports, the region offers everything developers need. According to BTU Analytics, 27 proposed greenfield blue hydrogen projects are currently being tracked across the Lower 48—with the majority clustered along this corridor where logistics, demand, and policy converge.
This concentration of infrastructure and opportunity has made the Gulf Coast a magnet for early investment and long-term strategic planning in hydrogen production.
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A photograph of Air Products' blue hydrogen energy complex in Louisiana, showcasing the facility's infrastructure under daylight conditions.
Because blue hydrogen production is fueled by natural gas, it naturally drives up demand. Should all announced projects progress as planned, the U.S. could see natural gas demand grow by 2.6 billion cubic feet per day (Bcf/d) by 2032. With additional, unconfirmed projects considered, that number could climb to 4.6 Bcf/d.
One significant project in Appalachia could account for nearly half of that potential increase, signaling how single developments may shape broader energy trends. This underscores the potential for localized initiatives to ripple outward, influencing national supply dynamics. If executed successfully, this project could elevate Appalachia’s profile as a hydrogen hub.
While the projected figures are impressive, the majority of these hydrogen projects are still in early development. Around 96% of the forecasted increase in gas demand stems from proposals still navigating the permitting and planning process. This makes delays, downsizing, or cancellations highly possible. That said, a handful of initiatives have progressed beyond the drawing board and offer a clearer path forward.
Air Products made headlines when it reached a final investment decision in 2023 for its Louisiana Clean Energy Complex in Ascension Parish. This facility, which will produce both blue hydrogen and ammonia, is scheduled to begin operations in 2028. The company cited growing demand from Europe and Japan, alongside incentives from the Inflation Reduction Act (IRA), as key drivers.
"We see strong global demand for low-carbon hydrogen and ammonia," said Seifi Ghasemi, Chairman, President and CEO of Air Products. "Our Louisiana project is a significant step forward."
The Blue Point Complex in Ascension Parish, developed by CF Industries with JERA and Mitsui, is expected to begin construction in 2026 and go online by 2029. JERA and Mitsui plan to offtake 60% of the project’s blue ammonia output for use or resale in Asian markets. The partners also expect to benefit from 45Q carbon sequestration tax credits, offered under the IRA.
The Baytown Project in Harris County, Texas, is another large-scale blue hydrogen and ammonia venture. Scheduled to reach final investment decision in the second half of 2025, it has drawn support from Air Liquide and is benefiting from the finalized guidance on the 45V hydrogen production tax credit. Additional subsidies from Japan may help push it across the finish line.
An image of CF Industries' existing ammonia and nitrogen facility in Donaldsonville, Louisiana, which is part of their upcoming Blue Point Complex. The photo captures the expansive plant layout during daytime. Log in or sign up to view +2
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Even as industry support grows, the policy environment remains fluid. Much depends on how the Trump administration navigates federal hydrogen funding, as well as how domestic and international markets respond to low-carbon fuel offerings. For now, a mix of government support, commercial interest, and global demand continues to propel blue hydrogen forward.
For the companies backing blue hydrogen, the goal isn’t just emissions reduction—it’s leadership in a global energy transition. The U.S. is well-positioned to export hydrogen and ammonia, and companies are moving fast to meet demand from partners in Europe and Asia. With ports, pipelines, and policy aligning, the Gulf Coast is becoming the launchpad for American hydrogen exports.
"Scaling hydrogen isn’t optional, it’s necessary," said Jason Rowell, Associate Vice President for Hydrogen at Black & Veatch. "And it will take collaboration across sectors to make that happen."
There’s no guarantee all proposed blue hydrogen projects will break ground, but the direction of travel is clear. The combination of corporate investment, international interest, and favorable policy has created fertile ground for U.S. leadership in low-carbon fuels. As the infrastructure takes shape and first movers set the pace, the Gulf Coast is quickly becoming a blueprint for how blue hydrogen could reshape America’s energy future.
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