the view from HETI

Houston Energy Transition Initiative celebrates milestones of 2024 amid global energy innovation

Jane Stricker and Bobby Tudor reflect on the Houston Energy Transition Initiative's three years of advancing Houston's leadership in the global energy transition through innovation, collaboration, and investment in a low-carbon future. Photos courtesy

As we wrap up our third year, the Houston Energy Transition Initiative and our region have much to celebrate. Alongside our members and partners, HETI strengthens Houston’s position as the global leader in meeting the dual challenge, leading the world to an affordable, secure, and low-carbon energy future.

Across our region, we continue to see strong growth in the number of energy and energy transition projects announced, energy and cleantech companies of all sizes and across all segments calling Houston home, and the volume of energy related capital investment flowing into Houston and Houston-headquartered companies.

As detailed in our year-end recap, HETI has engaged domestic and international business leaders, policymakers, and dignitaries across the US and the world, showcasing Houston as a destination for and producer of energy transition talent and innovation. Through those engagements and our members’ efforts in HETI Working Groups, we have continued to demonstrate the critical role Houston companies play in providing the world with affordable and reliable energy while also accelerating the development and deployment of innovative technologies in support of our collective climate goals.

As Bill Gates noted during his visit to Houston for CERAWeek this year, Texas has the potential to be the “Silicon Valley of Energy” and is “showing the world how to power a clean tomorrow.”

Through our collective efforts, the world is recognizing something we Houstonians have known for years – the world’s ability to meet the dual challenge of more energy with significantly less emissions requires a new level of collaboration across our entire energy ecosystem – including government, academia, startups, incubators, investors, and our incumbent energy industry – which has the assets, the resources, and the know-how to scale solutions for an energy-abundant, low-carbon future.

It’s been another tremendous year for HETI, but we still have a lot of work ahead. Your continued support and engagement will allow us to further Houston’s position as the global leader in a rapidly changing energy landscape. As we head into 2025, we will continue to convene, communicate, advocate, and engage in support of our collective vision – leveraging Houston’s energy leadership to accelerate solutions for an energy-abundant, low-carbon future.

To learn more about HETI’s 2024 Year, view the full year in review, click here.

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This letter — written by Jane Stricker, senior vice president, and Bobby Tudor, chair, of HETI — originally ran on the Greater Houston Partnership's Houston Energy Transition Initiative blog. HETI exists to support Houston's future as an energy leader. For more information about the Houston Energy Transition Initiative, EnergyCapitalHTX's presenting sponsor, visit htxenergytransition.org.

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A View From HETI

Chevron is in talks with Microsoft and Engine No. 1 about a massive natural gas power plant in Texas. Photo via Getty Images

Software giant Microsoft is negotiating exclusively with Houston-based oil and gas titan Chevron and investment firm Engine No. 1 about the development of a $7 billion power plant in West Texas that would supply electricity for a Microsoft data center campus.

The proposed natural-gas-fired plant initially would generate 2,500 megawatts of electricity, Bloomberg reports. The plant would be built near Pecos, a Permian Basin city, in an area where Microsoft plans to build a 2,500-megawatt data center campus on a 7,000-acre site.

A deal with Microsoft would secure a long-term customer for the plant’s output and help finance its construction, Bloomberg says. The project, expected to be producing power by 2030, still requires tax and environmental approvals as well an agreement to terms among Chevron, Engine No. 1, and Microsoft.

In a statement issued after Bloomberg reported the news, Chevron acknowledged it was in exclusive talks with Engine No. 1 and Microsoft, but the oil and gas company offered no details.

Chevron says the proposed plant “reflects an emerging shift in how power for AI is being developed, bringing energy supply closer to demand through co-located, behind-the-meter generation to deliver reliability while helping avoid added strain on regional electricity systems. It pairs sustained, always-on demand from advanced computing with proven capability to design, build, and operate large-scale energy infrastructure.”

Development of gas-powered electrical plants for AI data centers represents a new—and potentially lucrative— business line for Chevron. In 2025, Chevron, Engine No. 1 and GE Vernova announced a partnership to produce natural gas for AI data centers in the U.S.

Chevron’s collaboration with Engine No. 1 has already secured an order for seven large natural gas turbines from GE Vernova, according to Bloomberg.

“Energy is the key to America’s AI dominance,” Chris James, founder and chief investment officer of Engine No. 1, said last year. “By using abundant domestic natural gas to generate electricity directly connected to data centers, we can secure AI leadership, drive productivity gains across our economy, and restore America’s standing as an industrial superpower.”

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