Using electrolytic hydrogen for heat supply would increase electricity demand more than direct electric heating methods due to inefficiencies across the hydrogen supply chain . For example, one estimate suggests that replacing natural gas with electrolytic hydrogen for industrial process heating in Texas would require ~5.8 MT/year of hydrogen supply, resulting in a >20 GW of electric power based on typical electrolyzer efficiencies . For context, the peak electric power demand in Texas was 72 GW in 2018, and U.S.-wide annual hydrogen consumption in 2015 was ~10 MT/year. While the electricity demand could be large, the potential for flexible operation, particularly for low-temperature electrolyzers, coupled with the relatively low capital cost of hydrogen storage vs. Li-ion energy storage, creates an opportunity to schedule electrolytic hydrogen production as a flexible load to balance fluctuations of renewables in future power grids. Importantly, flexible hydrogen production can still serve baseload hydrogen demand from industrial applications. While this flexibility in hydrogen production can bring substantial benefits, electrolyzers must be designed for dynamic operation to avoid unintended impacts on stability and efficiency . Figure highlights potential power grid impacts of producing varying levels of hydrogen using flexible electrolyzers + hydrogen storage for a range of grid decarbonization scenarios in Texas. With increasing hydrogen demand, while the overall installed capacity of the power system increases, the analysis reveals that the system-average cost of electricity declines due to improved asset utilization for both the electricity generation assets (i.e., VRE) and electrolyzers. This example illustrates the importance of close coordination between electricity-consuming processes and the grid to maximize the benefits of electrification (Section 7). . Here, the 100% hydrogen demand represents the case where all natural gas used for process heat in the Texas industry in 2016 is replaced with H2 (5.