Water Scarcity and Clean Energy Collide in South Texas

A high-tech chemical company has purchased the last available water in the Nueces River to make hydrogen and ammonia for export.

Avina’s Nueces Green Ammonia plant plans to separate the hydrogen from water, convert it to ammonia and export it as a high-tech fuel alternative to oil and gas. It’s one of several such projects currently proposed in Texas, driven by federal subsidies. Governments and scientists say this technology plays an important role in the transition away from fossil fuels.

“Increased water drawn solely from the Nueces River system could dramatically increase the potential for scarcity,” wrote Corpus Christi’s director of intergovernmental relations, Ryan Skrobarczyk, in a March 1 memo to state lawmakers, first reported by the Corpus Christi Caller-Times. “A new large-volume user of the Nueces River will require extensive and exact monitoring to avoid increased drought restrictions.”

Although Corpus Christi holds rights to the vast majority of Nueces River water, it doesn’t hold them all, as it was recently reminded. The only other significant right belongs to the Nueces County Water Improvement and Control District #3, which serves the towns of Calallen and Robstown. It has rights from 1909 that were originally intended to flood crop fields and haven’t been used in decades.

“In the future, hydrogen will be used to replace diesel,” said Joe Powell, director of the Energy Transition Institute at the University of Houston and a former chief scientist at Shell. “I see it as a good jobs transition opportunity for this [Houston] region to be securing its place in the future.”

One such project in North Texas plans to build 1.4 gigawatts of wind and solar power generation and pump 500,000 gallons of groundwater per day to produce 200,000 kilograms of hydrogen for fuel. Another project on Matagorda Bay will use water to produce hydrogen for so-called “eFuels.” Avina also plans a second electrolysis plant in South Texas to fuel furnaces for steel production.

So instead, scientists devised an alternative: convert the hydrogen to ammonia (a stable liquid made of hydrogen and nitrogen), ship it overseas then re-convert to hydrogen. It’s an inefficient process. Up to 40 percent of the original energy input is lost in the production, conversion and re-conversion of the hydrogen, said Hugh Daigle, an associate professor of petroleum engineering at the University of Texas who has studied the hydrogen economy. But, it produces a carbonless fuel that can power heavy vehicles without harmful emissions.

But, he said, it’s gone too far. He listed the recent, major additions to the region’s waterside industrial sector: Cheniere LNG, Voestalpine steel, Chemours chemicals and a trio of massive new oil export terminals, among others. One new plastics plant by ExxonMobil and the Saudi Basic Industries Corp. has contracts to use up to 25 million gallons of treated water per day.