the view from heti

Houston: Where energy leaders create a low-carbon future

Learn more about the specific missions the Houston Energy Transition Initiative is focused on — from carbon management to finding funding. Photo via htxenergytransition.com

Houston is the energy capital of the world, and it faces a dual challenge: fulfilling growing global energy demand while actively reducing carbon dioxide emissions.

This is why energy leaders have come together at the Houston Energy Transition Initiative, within the Greater Houston Partnership, to strengthen the region’s position for an energy-abundant, low-carbon future. HETI’s impact work is conducted through sector-specific working groups that leverage Houston’s competitive advantage. These working groups include: Carbon Capture, Use and Storage (CCUS), Clean Hydrogen, Capital Formation, Power Management, and Industry Decarbonization.

Texas Gulf Coast as a hub for carbon management

The International Energy Agency (IEA) states that CCUS is a requirement to any realistic pathway to a low-carbon, even net-zero future. This is especially true in the Houston area, which is home to one of the nation’s largest concentrated sources of carbon dioxide. Houston has the geology, knowledge, and infrastructure to support CCUS at scale. The CCUS Working Group at HETI supports key policy enablers of scaling CCUS, including supporting the state to earn permitting authority (primacy) over carbon capture (Class VI) wells. The working group is also analyzing the cumulative impacts of carbon capture on the region’s existing infrastructure and identifying key infrastructure needs for CCUS to reach scale.

Gulf Coast preparing for clean hydrogen liftoff

The Clean Hydrogen working group has created an ecosystem for Houston to lead the clean hydrogen market. The Texas Gulf Coast region is currently home to the world’s largest hydrogen system. By assessing the impact of hydrogen on the economy and the environment, this working group is positioning Houston to be a leading clean hydrogen hub.

Houston as a leader in Industry decarbonization

Houston needs technologies including but not limited to clean hydrogen and CCUS for decarbonization. The HETI Decarbonization Working Group partners with the Mission Possible Partnership and Rocky Mountain Institute to provide a measurable baseline of emissions and identify recommendations for decarbonization pathways in the Houston region.

An energy-abundant, low-carbon future will impact our region’s power management

It is expected that there will be changes in supply and demand of electricity associated with proposed energy transition and decarbonization projects in the Houston area. HETI has partnered with Mission Possible Partnership and Rocky Mountain Institute to assess the impact of energy transition and decarbonization on the growth and resilience of Houston’s regional power grid and the transmission and distribution of energy.

Making Houston a hub for energy transition finance

Financing energy projects is extremely capital intensive. Houston currently serves as a hub for implementing new technologies, and it has the potential to become a major center for financing innovative energy solutions. This includes everything from more efficient, lower-carbon production of existing resources to technological breakthroughs in energy efficiency, renewables, energy storage, and nature-based solutions. For technological breakthroughs, Houston needs a consistent flow of capital to the region, including sources and financing models from venture capital to growth capital, to debt markets and government grants. HETI’s Capital Formation Working Group has mapped inflows and outflows of capital for the energy transition in Houston and found that we need to grow Houston’s capital inflows ten times by 2040 to $150 billion per year to lead the transition. The Working Group regularly convenes for learning sessions on capital markets.

Over the last year, HETI’s working groups have moved from strategy to impact. To learn more about the outcomes of these working groups, check out these resources.

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This article 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

Four energy companies are putting their money where their mouths are following Hurricane Beryl. Photo by Brandon Bell/Getty Images

Four major energy companies in the Houston area have chipped in more than $400,000 to support relief efforts for Hurricane Beryl in Southeast Texas. Nationwide, it’s estimated that the storm caused at least $28 billion in damage and economic losses.

Here’s a breakdown of contributions announced by the four energy companies.

Baker Hughes Foundation

The Baker Hughes Foundation, the philanthropic arm of Houston-based energy technology company Baker Hughes, gave a $75,000 grant to the Houston chapter of the American Red Cross for Hurricane Beryl relief efforts.

“We understand recovery and rebuilding can take weeks or months, and we support the American Red Cross’ mission of providing people with clean water, safe shelter, and food when they need them most,” says Lorenzo Simonelli, chairman and CEO of Baker Hughes.

CenterPoint Energy

Houston-based CenterPoint Energy, which at one point had more than 2 million customers without power due to Hurricane Beryl, says its foundation has donated to several disaster relief organizations in the region. These include the American Red Cross of Coastal Bend, Catholic Charities of the Archdiocese of Galveston-Houston, Combined Arms, and the 4B Disaster Response Network in Brazoria and Galveston counties.

As of July 11, the company had also provided:

  • More than 30,000 bottles of water to cooling centers and distribution centers in the Houston area.
  • Meals to local first responders.
  • Mobile power generation at cooling centers, hospitals, senior living centers, and water treatment plants.

CenterPoint didn’t assign a dollar value to its contributions.

“Our first priority is getting the lights back on. At the same time, we have seen firsthand the devastation our neighbors are facing, and our commitment to the community goes beyond restoration efforts,” says Lynnae Wilson, senior vice president of CenterPoint’s electric business.

ConocoPhillips

Houston-based ConocoPhillips contributed $200,000 to relief efforts for Hurricane Beryl. The company also is matching donations from U.S. employees of ConocoPhillips.

The money is being split among the Houston Food Bank, Salvation Army and American Red Cross.

“Houston is our hometown, and many of our employees and neighbors have been impacted by Hurricane Beryl,” says Ryan Lance, chairman and CEO of ConocoPhillip.

Entergy Texas

Entergy Texas, based in The Woodlands, donated $125,000 to the American Red Cross for Hurricane Beryl relief efforts. The money will go toward emergency needs such as food, shelter, and medical care.

“Our commitment to helping communities in distress remains unwavering, and we are hopeful that our contribution will offer relief and comfort to those facing hardships in the storm’s aftermath,” says Eliecer Viamontes, president and CEO of Entergy Texas.

Entergy Texas supplies electricity to about 512,000 customers in 27 counties. It’s a subsidiary of New Orleans-based Entergy Corp.

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