AES green hydrogen facility remains one of the largest proposed renewable hydrogen developments in the United States despite significant changes to its ownership structure. Planned for Wilbarger County, Texas, the approximately $4 billion project is now being advanced solely by AES Corporation after Air Products exited the joint venture. As of 2026, the development remains in the planning stage while AES evaluates market conditions, customer demand and investment timing before moving toward construction.
AES green hydrogen facility enters a new development phase
When the project was announced in 2022, it was expected to become the largest green hydrogen production facility in North America. Developers planned to power electrolysers with approximately 1.4GW of new wind and solar generation, producing more than 200 tonnes of green hydrogen daily for heavy transport and industrial customers. The investment also promised more than 1,300 construction jobs, 115 permanent operating positions and hundreds of transport-related jobs.
However, the project has since encountered the same commercial challenges affecting many large hydrogen developments worldwide. In late 2024, Air Products withdrew from the joint venture after confirming the project had not reached a Final Investment Decision (FID). Company executives said the project lacked an anchor customer and therefore did not satisfy internal investment requirements. Air Products subsequently transferred its development rights to AES.
Unlike several cancelled hydrogen projects elsewhere, AES did not abandon the Texas development. Instead, the company confirmed that it continues pursuing the project, although it has not announced a revised construction schedule or commercial operation date. Consequently, the project remains active but is awaiting improved market conditions before construction begins.
AES green hydrogen facility reflects wider hydrogen market realities
The project’s slower progress mirrors broader changes across the North American hydrogen sector. Although federal incentives remain available, developers continue facing higher financing costs, uncertain hydrogen demand and difficulties securing long-term offtake agreements. These factors have delayed investment decisions on several flagship projects.
Even so, the Wilbarger County development retains several competitive advantages. The proposed facility would combine dedicated renewable power generation with large-scale electrolysis, positioning it to supply green hydrogen to heavy-duty transport fleets, industrial users and other hard-to-decarbonise sectors once commercial demand strengthens. If constructed, it would remain among the largest renewable hydrogen facilities announced in the United States.
Construction outlook and Texas project comparison
Construction has not yet started, and AES has not disclosed a revised Final Investment Decision timeline. Nevertheless, industry observers continue to regard the project as strategically important because Texas offers abundant renewable resources, available land and expanding electricity infrastructure for future hydrogen production.
The project’s current position also contrasts with another recent Texas development. While the AES green hydrogen facility remains under evaluation, the Graham Texas Hydrogen Project recently changed direction after its site was sold for a $76.5 million hyperscale data centre development. The contrasting outcomes illustrate how developers increasingly weigh hydrogen opportunities against the rapidly growing demand for data centre infrastructure.
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Expectations for the AES green hydrogen facility
Upon completion, the facility will create over 1,300 construction jobs and 115 permanent operations roles. Additionally, the project would provide about $500 million in tax benefits for the state over the course of its lifespan. The developers expect the green hydrogen facility to be fully operational by 2027.
The AES green hydrogen facility will have an electrolyzer capable of generating over 200 tonnes of green hydrogen a day. However, both partners will own the renewable energy and electrolyzer assets jointly and equally. Air Products will serve as the exclusive off-taker and marketer of the green hydrogen products, under a 30-year contract. Their hydrogen green products will be supplied to industrial, as well as heavy-duty transportation markets.
The developers of the AES green hydrogen facility intend to produce a totally clean source of energy on a massive scale. If all of it serves the heavy-duty truck market, they believe it would avoid 1.6-million-metric-tons of CO2 emissions. Over the project’s lifespan, the developers expect it to reduce the amount of CO2 emissions by 50 million metric tons. This is the equivalent of nearly five billion gallons of diesel fuel.
Project fact sheet
Project name: AES Green Hydrogen Facility
Location: Wilbarger County, Texas, USA
Project value: Approximately $4 billion
Project type: Green hydrogen production project
Current status (2026): Planning stage; awaiting Final Investment Decision
Construction status: Not yet started
Developer: AES Corporation
Former partner: Air Products
Hydrogen production capacity: More than 200 tonnes per day
Renewable energy capacity: Approximately 1.4GW of wind and solar
Technology: Water electrolysis powered by renewable electricity
Primary markets: Heavy transport, industrial manufacturing and energy sectors
Estimated construction employment: More than 1,300 workers
Permanent operational jobs: Approximately 115
Key milestone: Air Products exited the joint venture in 2024; AES retained development rights
Next milestone: Final Investment Decision before construction can begin
Project team
Project owner: AES Corporation
Lead developer: AES Corporation
Former joint venture partner: Air Products
Renewable energy provider: AES Corporation
Project location: Wilbarger County, Texas
Hydrogen production technology: Renewable-powered electrolysis
Potential customers: Heavy-duty transport operators, industrial manufacturers and chemical producers
State stakeholders: Texas state agencies and Wilbarger County authorities
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