A new oil refinery planned for South Texas could bring thousands of jobs and a major energy investment to the region — while also raising concerns about pollution, water use and coastal risks.
President Donald Trump announced Tuesday that a more than 240-acre refinery called America First Refining will be built at the Port of Brownsville, the first new refinery constructed in the U.S. in nearly 50 years.
"THIS IS A HISTORIC $300 BILLION DOLLAR DEAL — THE BIGGEST IN U.S. HISTORY, A MASSIVE WIN for American Workers, Energy, and the GREAT People of South Texas!" Trump posted on social media Tuesday.
According to America First Refining, the project includes a 20-year deal to process U.S. shale oil and produce refined fuels valued at roughly $300 billion. The Texas-based company plans to break ground later this year.
Exports would be sold exclusively to India, which is helping fund the project along with its largest privately held energy company, Reliance Industries. In a press release, America First Refining said the agreement could improve the U.S. trade deficit, which sat at about $901 billion by the end of 2025.
In a statement, Brownsville Mayor John Cowen said the project is expected to "strengthen America's energy security" and bring thousands of new "high-paying jobs" to the region. Ed Hirs, an energy fellow at the University of Houston, agreed the refinery could bring economic benefits to South Texas.
"It's a good thing for the U.S. — it's good for employment, it's good for taxes, it's good for schools, it's good for Texas," Hirs said.
However, Hirs added that this new refinery would likely have little impact on gas prices in Texas, which have recently spiked amid the war in Iran. Because the facility's refined fuels would be exported directly to India, Hirs said, the project is unlikely to affect fuel supplies in the U.S.
Luke Metzger with Environment Texas says the refinery could have a significant effect on the surrounding region. He questions Trump's description of the refinery as "the cleanest refinery in the world." According to America First Refining's website, the refinery will produce and recycle hydrogen to generate cleaner, higher-quality fuels.
"It's hydrogen derived from fossil fuels," Metzger said, "so that might reduce emissions some, but this mostly seems to be a marketing claim."
America First Refining didn't respond to questions about its hydrogen process Wednesday afternoon.
Metzger said Texas refineries routinely emit pollutants linked to cancer and raised concerns about potential impacts on South Texas farmers, saying air pollution could affect crops while the refinery's water use could further strain water supplies during drought conditions. The Port of Brownsville is also near a wildlife refuge and other ecologically sensitive areas.
He also said hurricanes and extreme weather could raise the risk of air pollution or chemical spills if the coastal refinery is damaged during a storm.
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