f

UnlockingFirst-of-a-KindProjectsthrough

CleanIndustrialHubs

LessonslearnedfromCaliforniaandTexas

Report/May2025

hRMi

AboutRMI

RockyMountainInstitute(RMI)isanindependent,nonpartisannonprofitfoundedin1982thattransformsglobalenergysystemsthroughmarket-drivensolutionstosecureaprosperous,resilient,cleanenergy

futureforall.Incollaborationwithbusinesses,policymakers,funders,communities,andotherpartners,

RMIdrivesinvestmenttoscalecleanenergysolutions,reduceenergywaste,andboostaccesstoaffordablecleanenergyinwaysthatenhancesecurity,strengthentheeconomy,andimprovepeopleslivelihoods.RMIisactiveinover60countries.

AboutMissionPossiblePartnership

MissionPossiblePartnership(MPP)isanindependentnon-profitorganisationadvancingglobalclean

industrytransformation.Since2019,wehavebeenworkingwithsomeofthemostenergy-intensive

industriesaluminium,cement,chemicals,shipping,aviationandsteeltocuttheirglobalGHGemissions.

o-i-tihcKPnhii,wirijai,.e2

AuthorsandAcknowledgments

ThisreportwaspreparedbyMissionPossiblePartnershipandRMI.

Contacts

BryanFisher,bfisher@

FaustineDelasalle,faustine.delasalle@

MiaReback,mreback@

RachelHoward,rachel.howard@

CopyrightsandCitation

UnlockingFirst-of-a-KindProjectsThroughCleanIndustrialHubs:LessonsLearnedfromCaliforniaandTexas,MissionPossiblePartnershipandRMI,2025,

/insight/unlocking-first-of-a-kind-projects

-through-clean-industrial-hubs.

RMIvaluescollaborationandaimstoacceleratetheenergytransitionthroughsharingknowledgeand

insights.Wethereforeallowinterestedpartiestoreference,share,andciteourworkthroughtheCreativeCommonsCCBY-SA4.0license.

/licenses/by-sa/4.0/

.

AllimagesarefromRMIunlessotherwisenoted.

BEZOSEARTHFUND

Acknowledgments

WewouldliketothanktheBezosEarthFundforitspartnershipandsupportforthiswork.Wewouldalsoliketothankourcolleagues,thebusinessesandcommunitiesacrossCaliforniaandTexas,workshopparticipants,andothercollaboratorsfortheirtimeandcommitmenttothecreationofcleanindustrialhubs.

UnlockingFirst-of-a-KindProjectsthroughCleanIndustrialHubs3

TableofContents

ForewordfromFaustineDelasalle 5

ExecutiveSummary 7

Introduction 11

Californiacleanindustrialhub 13

Texascleanindustrialhub 14

Howcleanindustrialhubscreateimpact 14

CreatingSuccessfulCleanIndustrialHubs 16

BuildingtheIndustrialDecarbonizationEcosystem 19

Policiesforindustrialdecarbonization 19

Communityengagementandsocialimpact 20

Connectiveinfrastructure 22

Financingcleanindustry 22

UnlockingFOAKandNOAKProjects 24

Low-emissionshydrogenplants 25

Sustainableaviationfuelplants 28

E-methanolandE-ammoniaplants 30

Low-emissionsconcreteandcementplants 32

Low-emissionssteelplants 34

Truckchargingdepotandhydrogenrefuelingstations 36

Conclusion 40

Abbreviations 41

Endnotes 42

UnlockingFirst-of-a-KindProjectsthroughCleanIndustrialHubs4

ForewordfromFaustineDelasalle,

CEO,MissionPossiblePartnership

Anewcleanindustrialrevolutionisunderway,anditishappeninginmajorindustrialhubs.

Overthelastdecade,I’vewitnessedsignificantchangeinmyexchangeswithindustryleadersacrosssomeofthemostenergy-intensivevaluechains,likesteel,cement,andchemicals:we’vegonefromdisbeliefthatacleantransformationofheavyindustryispossibletoindustry-

endorseddecarbonizationplanstocommercial-scalecleanindustrialplantsbeingbuiltand

operational.

Thisnewcleanindustryisonethatcanunderpinaflourishingglobalsociety,onewhereclean

materials,chemicals,andfuelscansupportqualityoflifefortheworld’spopulationinasustainableandresilientway.

MissionPossiblePartnership’sGlobalProjectTrackershowsthatthepipelineofclean

industrialplantsgloballyisgrowing.That’s

becausecompaniesunderstandthatclean

industryisaneconomicopportunityaswellasasustainabilityimperative.Forindustry

playersthatarethinkingaboutindustrialasset

toactionand,inanever-changingworld,findingroutesforward.In2022,wesawanopportunitytoleveragethepowerofindustrialhubstofast-trackFOAKprojects.Ourhypothesisthen,whichisnowsupportedbydirectobservation,wasthatcollaborationamongcompaniescolocatedin

industrialhubscouldaddresscriticalbarriersto

investment.TheUSfederalpolicyimpulsecreatedafavorablebusinessenvironmenttostresstest

thisapproach.

investmentswitha20-yearlifespan,takingthelongview,buildingcleantechnologyleadership,andanticipatinginevitablegovernmentactionsinthewakeofworseningimpactsofclimate

breakdownaresurerwaystofutureproofacompanyandbuilditscompetitiveedge.

Butpioneeringnewindustrialprocessesisa

challengingjourney.First-of-a-kind(FOAK)

projectsarerarelybankable.AtMissionPossiblePartnership,weprideourselvesonliftingbarriers

UnlockingFirst-of-a-KindProjectsthroughCleanIndustrialHubs5

BypartneringwiththeBezosEarthFund,RMI,

andlocalpartnersliketheHoustonEnergy

TransitionInitiativeandthePortofLosAngeles,wewereabletogainthetrustofbigandsmall

projectdevelopersintwokeygloballyconnectedindustrialhubs,intheGulfCoastandCalifornia.Weuncoveredthespecificbarrierstoclean

industryinvestmentonthegroundandfosteredcollaborationsamongcorporate,finance,andpolicyplayerstoeffectivelyaddressthese

barriers.Theresultisthat50%oftheprojects

weworkedwithhavereachedfinalinvestment

decisions—meaningconstructionhasstartedorisabouttostart.

Thisreportrevealsawealthoflearningsfromthreeyearsofworkontheground,working

shouldertoshoulderwithprojectdevelopers.Amongtheportfolioofactionswe’vepursued,threestickoutasissuesthatcanuniquelybeaddressedthroughcollaborationatthelevelofanindustrialhub:

?Thedevelopmentofasharedambition

acrossalocalbusinesscommunitythatcanemboldencorporateleadersandgalvanizesupportfromlocalandstatepolicymakers

?Theplanningandbuildupofacleanenergyinfrastructurecommensuratetothe

aggregatedneedsofalllocalindustryplayers

?Theengagementofthelocalcommunity

toboostthebenefitsoftheclean

transformationofindustrialactivitiesforthepeoplewholiveandworkinthearea

Ithasbeenanhonorandpleasuretohave

workedwithsuchtremendouspeopleand

partnerswhostoodwithusboldlyandbravelyonthecuspofanewerainindustry.The

collectivemomentumenabledindividual

companiestotakebigstrides,whichopenthewayforotherstofollow.

Nowin2025,wefindourselvesatadifferent

juncture.Momentuminthecleanindustrial

revolutionisshifting;newentrantsarejoiningtheracetoglobalcleanindustrialleadership

fromemerginganddevelopingcountriesacrosstheSunbeltoftheworld,asisborneoutby

MissionPossiblePartnership’sGlobalProject

Trackerdata.Forthosewhowanttosecure

anearly-moveradvantage,thedevelopment

ofcleanindustrialhubsisaneffectivewayto

start.AsIlookforwardtothenewpartnershipsweareforming,fromBraziltoAustralia,Iam

confidentthatwecantakelearningsfromtheUScleanindustrialhubsandadaptthemtodiversegeographies.Ihopethat,withourblueprint,

otherstakeholdersaroundtheworldarespurredontomobilizecompaniesintheirlocalindustrialhubstoadvancecleanindustrialtransformation.

FaustineDelasalle,

CEOofMissionPossiblePartnership

UnlockingFirst-of-a-KindProjectsthroughCleanIndustrialHubs6

ExecutiveSummary

Heavyindustryisonthebrinkofamajortransformation.Developinglow-emissionsproductsand

decarbonizingexistingindustrialfacilitiescanincreasedomesticandglobaleconomies,protectenergysecurityandresilience,createhundredsofthousandsofjobs,andimprovethequalityoflifeforpeopleacrosstheplanetbyreducingpollutionandsupportingglobalclimategoals.

Enablingthetriplebottomlineofeconomy,community,andenvironmentrequiresatremendousinvestmentinnewprojectsthisdecade.Trillionsofdollarsofcapitalwillbeneededinindustryandtransportation.Butfinancingaloneisnotenough.Buildingtheseprojectsrequiresacollaborativeecosystemofprojectdevelopers,policymakers,communityorganizations,andfinancierstosupportinnovation,sustainability,andeconomicgrowth.

Heavyindustryandtransportationsectors—cement,steel,aluminum,chemicalproduction,aviation,

shipping,andtrucking—togethergeneratemorethan30%ofglobalgreenhousegas(GHG)emissions.

Meetingglobalclimategoalswillrequirebuildingmorethan700net-zeroindustrialprojectsanddeploying7millionzero-emissionstrucksby2030.1Sofar,just12%oftheseprojectsareoperational.Mostwillbeinregionalindustrialhubs,orclusters,wherethereisaconcentrationofexistingindustrialactivityandwherethephysical,social,regulatory,andeconomicinfrastructureisinplacetosupportrapidscale-up.Today,first-of-a-kind(FOAK)andnth-of-a-kind(NOAK)decarbonizationprojectsfacetremendoushurdles,butouron-the-groundexperienceandresearchshowthereisakeytounlockingthem.

FromAugust2022toDecember2024,MissionPossiblePartnershipandRMI,withsupportfromthe

BezosEarthFund,acceleratedthedevelopmentofcleanindustrialhubsinCaliforniaandTexas,directly

partneringwith18FOAKcleanindustrialprojectstogrowregionaleconomies,strengthenlocalworkforces,andprotectenergysecuritywhilereducingindustry’senvironmentalimpacts.

Cleanindustrialhubsbringtogetherprojectdevelopers,policymakers,financialinstitutions,and

community-basedorganizationstoadvanceregionalclustersofcleanenergyandindustrialdecarbonizationprojects.Thesestakeholdersworktogethertobenefitthelocaleconomybysharinginfrastructure,creatingdemandforlow-emissionsfuelsandmaterials,andimplementinginnovativetechnologywhileminimizingenvironmentalimpact.Cleanindustrialhubshelpspureconomicgrowth,createemploymentopportunities,andunlocknewtechnologies.

Cleanindustrialhubsbringtogetherprojectdevelopers,

policymakers,financialinstitutions,andcommunity-based

organizationstoadvanceregionalclustersofcleanenergyandindustrialdecarbonizationprojects.

Theirimpactcanbesignificant:50%ofthe18projectswesupportedreachedafinalinvestmentdecision(FID),comparedwith20%globally.Oncebuilt,theseprojectswilladditionallymobilize$34billionof

publicandprivateinvestmentandreduceemissionsbyhalfabilliontonsofcarbondioxideequivalent

UnlockingFirst-of-a-KindProjectsthroughCleanIndustrialHubs7

(CO2e)by2050.iAsuccessfulcleanindustrialhubincludesthreemaincomponents:asupportiveecosystem,avarietyofdecarbonizationandcleanenergyprojects,andreliableconnectiveinfrastructure(seeExhibitES1).

Thisreportsharesinsightsfromthedevelopmentofthesecleanindustrialhubsanddemonstrateshow

participatinginahubenhancesoutcomesforprojects,theclimate,andcommunities.Itdetailshowcreatinganenablingecosystemofprivatefinance,publicpolicy,andcommunityengagementisessentialtode-riskprojectsandhelpinnovativefirstmovers.Italsodocumentsstepstotaketosuccessfullydevelopaclean

industrialhub(seeExhibitES2,nextpage).

ExhibitES1Modelofacleanindustrialhub

ECOSYSTEM

DECARBONIZATIONPROJECTS

CapitalinvestmentsinFOAK/NOAKassetsreduceoreliminateGHGemissionsfromindustry,heavytransportation,andenergysectors.

CONNECTIVEINFRASTRUCTURE

Safe,eficient,andresilientmethodsdelivercleanenergyfromproducerstoconsumersviapipelines

Astrongfoundationofpolicy,finance,research,andcommunityengagementimprovesoutcomesandacceleratesprogressoffirst-of-a-kind(FOAK)andnth-of-a-kind(NOAK)projectsandother

efortsneededforindustrialdecarbonization.

Industrial

electrificationproject

ortransmissionlines.

Sustainableaviationfuel(SAF)

Net-zerosteel

Equity&environmentaljustice

Windpower

Connectiveinfrastructure: electricitytransmission

Electrictruck

Solarpower

Energystorage

SAFairportinfrastructure

charging

Zero-emissions

portoperations

Aluminumplant

Low

Policy

emissionshydrogenproduction

Hydrogen

E-fuels formarinetransportation

Net-zero

trucking

infrastructure

Communityengagement

cement

&concrete

Finance

Labor&workforcedevelopment

Connective

infrastructure:pipelines

Research&development

Chemicalplant

RMIGraphic.Source:MissionPossiblePartnershipandRMI

8

iTheseestimatesassumethatallprojectsbecomeoperational.UnlockingFirst-of-a-KindProjectsthroughCleanIndustrialHubs

ExhibitES2Stepstocreateacleanindustrialhub

STEP1

IdentifyHubRegion

?Highpotentialtoproducerenewable

electricity,low-emissionshydrogen,andlow-emissionsfuels.

STEP2

?Suficientscaleofprojectannouncements.

ConductFoundationalAnalysis

?Conducteconomicandprojectfeasibilityevaluation.

?Greenhousegasemissionsbaseline.

?Decarbonizationpathwaysforexistingindustries.

?Potentialtodevelopnewnet-zeroindustries.

?Cleanenergy(electricityandhydrogen)needed.

?Airpollutionbaseline.

?Engagedpolicymakers,financialinstitutions,utilities,communityorganizations,andNGOs.

STEP3

MobilizetheEcosystem/Stakeholders

?Identifyandmapkeystakeholders.

?Holdbilateralmeetingsand

STEP4

needsassessmentswithprojectdevelopers,financialinstitutions,policymakers,andcommunityorganizations/EJgroups.

DevelopaSharedVision

?Basedonfoundationalanalysisandconvenings,settargetsfordecarbonization,cleanenergyproduction,capital

expenditures,jobscreated,andcommunitybenefits.

?Thisworkwillbeongoingandwillneedtobeupdated.

?Bringtogetherecosystemactorsinconvenings.

-、、介,--

STEP5

SupportStakeholdersto

AdvanceFoundationalHubSuccessFactors

?Supportenablingpoliciesatthelocal,state,andfederallevel.

?Workwithfinancialinstitutionstomobilizecapital.

STEP6

ProvideTechnicalAssistancetoFOAKandNOAKProjects

?Buildcapacitywithcommunity-basedorganizations.

?Planforrenewableenergyandinfrastructure.

STEP7

?Pick,scope,andlaunchFOAK/NOAKprojects.

Track,Monitor,DocumentImpact

small/medium-sizeddevelopers.

?Balancetechnologytypesandreductionpathways.

?Balancelargeenterpriseswithstartupsand

?ProjectsreachingFIDandbecomingoperational.

?DirectimpactsonGHGs,airpollutants,jobscreated,andmoneyinvested.

?Indirectimpactstohealthandeconomicdevelopment.

RMIGraphic.Source:MissionPossiblePartnershipandRMI

UnlockingFirst-of-a-KindProjectsthroughCleanIndustrialHubs9

Toscaleprojectstonewgeographiesaroundtheworld,thesecondhalfofthisreportincludeslessonslearnedandcasestudiesfromFOAKandNOAKprojectsinsixkeysectors:low-emissionshydrogen,sustainableaviationfuel,electrolyticmethanolandelectrolyticammonia,concreteandcement,low-emissionssteel,andzero-emissionstrucking.

Thegoalofthisreportistocatalyzestakeholdersinothergeographiestotakethelessonssharedinthisreportandadvancecleanindustrialhubs—andtheFOAKandNOAKprojectsattheircore—innew

geographies(seeExhibitES3).

ExhibitES3Currentandpotentiallocationsforcleanindustrialclusters

RMIGraphic.Source:MissionPossiblePartnership,RMI,andtheWorldEconomicForum

UnlockingFirst-of-a-KindProjectsthroughCleanIndustrialHubs10

Introduction

Decarbonizingindustryandheavytransportationsectorspresentsanopportunitytoachieveeconomicandjobgrowth,createmoreresilientcommunities,andmeetclimateandenvironmentalgoals.Globally,thereisaneedtoinvesttrillionsofdollarsindecarbonizationprojects.Theseinvestmentsindecarbonization

technologiescancreatehundredsofthousandsofjobsandprovidebenefitstocommunitiesthatareclosetoprojectswhiledramaticallyreducingcarbonemissions.

Heavyindustryandtransportationtogethergenerate23%ofUSgreenhousegas(GHG)emissionsand30%ofglobalemissions.2Thisincludesemissionsfromcement,steel,aluminum,andchemicalproduction,aswellasaviation,shipping,andtrucking.Meetingglobalclimategoalswillrequirebuildingmorethan700net-zeroindustrialprojectsanddeploying7millionzero-emissionstrucksby2030.3

Mostoftheselow-tozero-carbonprojectswillbebuiltinregionalindustrialhubs,orclusters,wherethe

physical,social,regulatory,andeconomicinfrastructureisinplacetosupportrapidscale-up.Although

hundredsofnetzero–alignedprojectshavebeenannouncedgloballysince2022,asofNovember2024,only83projectswereonlineandanother53projectshadreachedafinalinvestmentdecision(FID).4Thatmeansthereareonlyfiveyearslefttofinanceandconstructmorethan600cleanindustrialprojects.

That’swhyMissionPossiblePartnershipandRMI,incollaborationwiththeBezosEarthFund,areworkingtocreatecleanindustrialhubs(seeExhibit1,nextpage).Cleanindustrialhubsbringtogetherproject

developers,policymakers,financialinstitutions,andcommunity-basedorganizationstosupportregionalclustersofindustrialdecarbonizationprojects.

UnlockingFirst-of-a-KindProjectsthroughCleanIndustrialHubs11

Ourregional-basedapproachbringstogetherindustrialassetswithsocialinfrastructure—ahub—

leveragingfirst-of-a-kind(FOAK)andothercutting-edgeprojectstoachieveeconomiesofscaleandtippingpointsfordecarbonization.Ourhubs-supportmodelconcentrateseffortsinadefinedgeographicalregionthroughatwo-prongedapproachof(1)providingtechnicalassistancetospecificindustrialandclean

energyprojectscombinedwith(2)buildinganoverallecosystemofpolicies,finance,sharedinfrastructure,andcommunityengagementtoimproveoutcomesandaccelerateprogress.

Exhibit1Modelofacleanindustrialhub

ECOSYSTEM

DECARBONIZATIONPROJECTS

CapitalinvestmentsinFOAK/NOAKassetsreduceoreliminateGHGemissionsfromindustry,heavytransportation,andenergysectors.

CONNECTIVEINFRASTRUCTURE

Safe,eficient,andresilientmethodsdelivercleanenergyfromproducerstoconsumersviapipelines

Astrongfoundationofpolicy,finance,research,andcommunityengagementimprovesoutcomesandacceleratesprogressoffirst-of-a-kind(FOAK)andnth-of-a-kind(NOAK)projectsandother

efortsneededforindustrialdecarbonization.

Industrial

electrificationproject

ortransmissionlines.

Sustainableaviationfuel(SAF)

Net-zerosteel

Equity&environmentaljustice

Windpower

Connectiveinfrastructure: electricitytransmission

Electrictruck

Solarpower

Energystorage

SAFairportinfrastructure

charging

Zero-emissions

portoperations

Aluminumplant

Low

Policy

emissionshydrogenproduction

Hydrogen

E-fuels formarinetransportation

Net-zero

trucking

infrastructure

Communityengagement

cement

&concrete

Finance

Labor&workforcedevelopment

Connective

infrastructure:pipelines

Research&development

Chemicalplant

RMIGraphic.Source:MissionPossiblePartnershipandRMI

12

UnlockingFirst-of-a-KindProjectsthroughCleanIndustrialHubs

Participatinginacleanindustrialhubcanhelpindividualprojectsbyreducingtechnologyrisk,

loweringprojectcosts,poolingdemand,increasingavailabilityofcleanenergysupplyforindustrialdecarbonizationprojects,settingmarketstandardsforcleanproducts(e.g.,levelofemissions),andestablishingwillingnesstopay.Cleanindustrialhubsalsohelpovercometheremaininghurdlesforthecleanenergytransitionbydevelopinganecosystemthatsupportsprojectdevelopment.Theycanfacilitatecommunityengagement,developlocalworkforces,createasupportivepolicyenvironment,reduceriskforprivatefinance,helpdevelopersaccesslow-costpubliccapital(grantsandloans),andestablishasharedvisionforsuccess.

Toestablishtheframeworkforacleanindustrialhubandexploreopportunitiesandchallenges,MissionPossiblePartnershipandRMI,incollaborationwiththeBezosEarthFund,supportedtheaccelerationofcleanindustrialhubdevelopmentinSouthernCaliforniaandtheTexasGulfCoast.

Californiacleanindustrialhub

Californiaisanationalleaderinclimateactionwithstatemandatestoachievecarbonneutralityby2045.Itisalsothenation’slargeststateeconomy,contributingmorethan$3.9trilliontothegrossdomestic

product(GDP)in2023.5YetCaliforniaisthethird-largestindustrialemitterintheUnitedStates,drivenbythestate’srefineries,heavy-dutytrucks,airports,andports.In2022,industrialfacilitiesinCaliforniareleasedmorethan80milliontonsofCO2,6%ofallindustrialemissionsintheUnitedStates.6

InvestmentstotransitionandbuildnewcleanfacilitiesandvehicleswillreducepollutionandhelpthestatereachitsclimatepolicytargetswhilecreatingagreeneconomyforCaliforniaworkers.Stateanalysishas

shownclimate-alignedinvestmentscansupportmorethan75,600jobs,demonstratingthepotentialofclimateinvestmentsinspurringeconomicgrowthintheregion.7

InSouthernCalifornia,ourteamadvancedheavytransportationandportdecarbonization,low-emissionscementproduction,low-emissionshydrogen,andindustrialelectrificationbyprovidingtechnical

assistanceto10proposedFOAKdecarbonizationprojects(seeExhibit2,page13).Thisincludedidentifyingandadvancingdecarbonizationpathwaysfortwomajorports,theheavy-dutytruckingsector,andexistingindustrialfacilities,withafocusoncement.Wealsoworkedonacceleratingproductionandadoptionofsustainableaviationfuel(SAF)andlow-emissionshydrogentoenabledecarbonizationintheaviation,

shipping,andtruckingsectors.

InCalifornia,theteamalsoworkedtostrengthenthestakeholderecosystembyengagingwith

policymakerstostreamlinethepermittingprocess,financialinstitutionstoincreaseinvestmentsin

SAFandlow-emissionshydrogen,community-basedorganizationstounderstandwhatisneededforasuccessfulcommunitybenefitsplan(CBP)andcommunitybenefitsagreement(CBA),iiandutilitiesandinfrastructureproviderstoincreaseavailabilityofelectricityandlow-emissionshydrogenforprojects.

iiCBPsarenonbindingagreementsthataretypicallydevelopedbycommunityorganizationsanddevelopers.Theyoutlinethecommunity’sprioritiesforadevelopmentprojectandthedeveloper’scommitmentstothosepriorities,whichcaninclude

thingssuchasaffordablehousing,jobcreation,andlocalhiringpreferences.CBPsarenotlegallyenforceable.CBAs,ontheotherhand,arelegallybindingagreementsthatarenegotiatedbetweencommunityorganizationsanddevelopers.They

outlinethespecificbenefitsthatthedeveloperwillprovidetothecommunityinexchangeforthecommunity’ssupportoftheproject.CBAsareenforceableincourt,whichgivescommunitiesastrongerguaranteethatthedeveloperwillfollowthroughonitscommitments.

UnlockingFirst-of-a-KindProjectsthroughCleanIndustrialHubs13

Texascleanindustrialhub

TexashasthelargestindustrialandenergyeconomyintheUnitedStates.Itproduces25%ofUS

domesticenergy,8ishometo25%ofthecountry’spubliclytradedoilandgasexplorationandproductioncompanies,andsupports15%ofthenation’stotalrefiningcapacityand44%ofthenation’spetrochemicalmanufacturingcapacity.9Thestate’s640industrialfacilitiesemit291milliontonsofcarbondioxide

equivalent(MtCO2e)peryear,23%ofindustrialemissionsintheUnitedStates.

Texasisalsomakingstridestobecomeacleanenergyleader.10Since2013,Texaspowerproviderthe

ElectricReliabilityCouncilofTexas(ERCOT),hasreducedthecarbonintensityofpowergenerationby

11%whileincreasingpowergenerationcapacityby26%.WindandsolarproductioninTexashavegrownsignificantly,leadingtheUnitedStatesin2023byproducing108,000gigawatthours(GWh)ofwindpowerand32,000GWhofsolarpower.

MissionPossiblePartnershipandRMIleveragedHouston’sacumenincleanenergy,manufacturing,

andheavyindustrytofocusonacceleratingtheproductionandadoptionoflow-emissionshydrogen

anditsderivativestoenabledecarbonizationinthecement,shipping,steel,andaviationsectors(see

Exhibit2).TheteamanalyzedfuturedecarbonizationpathwaysforheavyindustryinmetroHouston

andforecastthepowerneedsoftheregionalelectricgridtomeetnet-zeroambitions.Thisworkshowedthatdecarbonizationeffortsintheregionareprojectedtodrivesignificanteconomicgrowth,potentiallycreatingnearly530,000newjobsby2050whilesimultaneouslyreducingemissions.11

TheteamprovidedtechnicalassistancetoeightproposedFOAKdecarbonizationprojectsinTexas.This

workincludedidentifyingandadvancingdetaileddecarbonizationpathwaysforcementandsteelplants,andacceleratingproductionandadoptionofSAFandlow-emissionshydrogenanditsderivativestoenabledecarbonizationintheaviation,shipping,steel,andtruckingsectors.

InTexas,theteamcreatedasupportiveecosystemfortheseprojectsbyconnectingpolicy,finance,

infrastructure,andcommunityorganizationstodefineandhelpovercomebarriersthatslowprogress.Ourworkprovidedpracticaltoolsandinsightsthathel