Senate Bill 241, which would appropriate $20,000,000 to the Oklahoma Department of Commerce to fund a rebate program for capital investments in facilities that refine, manufacture or process compounds or elements into hydrogen-based products, was discussed and laid over at a Jan. 1, 2025, meeting of the Senate Subcommittee on Natural Resources and Regulatory Services.

The bill’s sponsor, Senator Kendra Thompson, opened the discussion and moved to strike the title as part of routine committee consideration. After questions from members and testimony from energy experts, Thompson said she would lay the bill over so the subcommittee could continue to review details before advancing it to a full appropriations process.

The subcommittee heard technical and economic testimony from Ken Wagner, identified in the hearing as the former Oklahoma secretary of energy and environment, who described two main methods of hydrogen production and characterized the Ardmore project as an electrolytic facility. "Today, 96% of all hydrogen is made using natural gas as a feedstock," Wagner said. He also said the proposed Ardmore plant would rely primarily on electricity from OG&E and that, when built, it would be large enough to be "the largest electrolytic hydrogen facility in the country." Wagner said Oklahoma’s existing workforce and manufacturing cluster give the state a comparative advantage in hydrogen production, compression, liquefaction and transport.

A representative citing figures from the Ardmore Development Authority told the committee the project is expected to create approximately 30 direct jobs, about 159 additional jobs through the local supply chain and another 72 jobs based on worker spending patterns. Committee members asked questions about energy use and the project’s siting; committee staff and witnesses said the facility would use local water supplies and OG&E power as primary inputs.

Senator Thompson said if SB 241 advances it would be refiled later as a JACAB bill; she then laid the measure over for additional review. No final vote on SB 241 was recorded at the subcommittee meeting.

Why it matters: The appropriation would create a targeted financial incentive for a single large hydrogen project the state has discussed for more than two years. Committee members flagged energy input, local infrastructure and job estimates as central considerations before a final funding decision.

What’s next: The sponsor said SB 241 would return in the form of a JACAB bill later in the session for further committee and legislative consideration.