How ExxonMobil’s Baytown Project Could Make the

The overlooked path to hydrogen leadership: natural gas

Hydrogen’s buzz isn’t slowing down. But the real energy play might surprise some folks—it’s not solar panels or wind farms. It’s natural gas, especially when paired with carbon capture. And ExxonMobil is betting big on it.

While headlines scream about clean hydrogen, the truth is, most of the world’s hydrogen still comes from steam methane reforming (SMR)—a process using natural gas. In fact, over 95% of global hydrogen is made this way. The U.S. is already producing around 10 million metric tons annually, and thanks to domestic gas abundance, it’s doing it at scale.

This isn't about clinging to the past. It's about recognizing what already works—and using it to lead.

Baytown: A bold move by ExxonMobil

Let’s talk scale. Over in Texas, ExxonMobil is building something huge at its Baytown facility. If completed, it could become the largest low-carbon hydrogen plant in the world. The plan? Produce 1 billion cubic feet of hydrogen per day and capture 10 million metric tons of CO₂ annually.

That’s not a prototype. It’s a working model of how the U.S. could power industrial sectors—like steel and shipping—without waiting decades for green hydrogen tech to catch up.

But it hinges on one thing: policy support. Specifically, the 45V tax credit, part of the Inflation Reduction Act. According to Darren Woods, CEO of ExxonMobil, “Without 45V locked in, the facility won’t move forward.” That’s not a bluff. It’s economics.

Why natural gas still matters

Critics call it dirty. But U.S. natural gas is some of the cleanest on the planet, thanks to methane leak controls and strict regulations. Plus, it’s abundant and cheap—two words energy execs love.

Unlike China or the UAE, the U.S. doesn't have to worry about supply chains or foreign imports. It has everything it needs right at home. And when you add CCS into the mix, blue hydrogen becomes a low-emission, scalable solution—not just a placeholder.

The International Energy Agency even noted in 2023 that “blue hydrogen will be critical to meeting global decarbonization goals in hard-to-electrify sectors.”

America’s secret weapon: infrastructure

Here’s something most people don’t know. The U.S. already has more than 1,600 miles of hydrogen pipelines, mostly along the Gulf Coast. That’s infrastructure other countries are still dreaming of.

And it’s not just pipelines. America’s industrial know-how, workforce, and CCS expertise—built from decades in oil and gas—gives it a massive head start.

So while Australia experiments with electrolysis, and China doubles down on coal-heavy hydrogen, the U.S. could win the race simply by doing more of what it already knows how to do.

The global race is heating up

Hydrogen isn’t just a climate story anymore. It’s a trade story.

By 2050, Europe, Japan, and South Korea are expected to import over 50 million metric tons of hydrogen per year. These countries aren’t just looking for fuel—they want data-backed, transparent, low-carbon options. America can offer that.

South Korea’s Hydrogen Economy Roadmap highlights a strong demand for blue hydrogen imports starting this decade.

If the U.S. moves fast, hydrogen could become the next liquefied natural gas (LNG) moment—another major export boom.

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Three reasons America can lead

1. Domestic natural gas advantage

The shale revolution made natural gas cheap, reliable, and secure. No other country can match this mix of price and control. With massive reserves and decades of production experience, the U.S. has the upper hand in cost and supply chain stability. It’s also less vulnerable to the geopolitical risks that plague other energy sources—a huge plus in today’s uncertain global climate.

2. Existing hydrogen infrastructure

From Gulf Coast pipelines to Baytown’s planned output, the U.S. already has the bones of a global hydrogen leader. This head start means less time spent building from scratch—and more time producing, moving, and exporting hydrogen at scale. That infrastructure isn’t just pipes and plants—it’s also the trained workforce and regulatory familiarity that other countries are still trying to develop.

3. Policy levers like the 45V tax credit

Getting 45V right could unlock billions in hydrogen investment. Without it, projects stall, and rivals move in. It’s a make-or-break incentive that signals whether America is serious about clean energy leadership. If implemented well, it could trigger a wave of new projects across the country—fueling job growth, emissions reductions, and a competitive edge in global trade.

Don’t wait—scale now

While the world waits for green hydrogen costs to drop, blue hydrogen can scale today. It’s not perfect, but it’s practical.

If the U.S. acts now—supporting CCS, easing permitting for plants and pipelines, and aggressively promoting exports—it could lead the hydrogen economy for decades.

But that window? It won’t stay open forever.

The Next Move Is Ours

Baytown isn’t just a hydrogen plant. It’s a message. It says the U.S. doesn’t need to reinvent the wheel to lead in clean energy. It just needs to use what it already has—and use it smartly.

The global hydrogen game is on. And if the U.S. plays its cards right, it won’t just participate—it’ll dominate.

How ExxonMobil’s Baytown Project Could Make the U.S. a Hydrogen Powerhouse