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$50M clean fuels investment deal, Houston low-carbon project — and more trending energy transition news

Here are the top stories for the week within Houston energy transition news. Photo via Getty Image

Editor's note: From Christmas tree recycling to a $50 million clean fuels deal, these are the top headlines that resonated with EnergyCapital readers on social media and daily newsletter this week.

What to know about the new emission inspection to register your car in Texas

An inspection is no longer required to renew registration, but an emission evaluation is. Photo by Manuel Velasquez/Unsplash

Beginning January 1, 2025, Texas vehicle owners will no longer need to obtain a safety inspection prior to vehicle registration. House Bill 3297, passed during the 88th Legislature in 2023, eliminates the safety inspection program for non-commercial vehicles.

Under the new law, the $7.50 fee that drivers had to pay as a safety inspection fee has not gone away. It now appears on your registration notice under a new name: "Inspection Program Replacement Fee."

This name change comes courtesy of the legislature, who want to keep collecting this fee because the funds go to state programs such as construction and expansion of state highways — funds they previously collected from the Safety Inspection Fee. Continue reading.

City of Houston provides recycle stations for Christmas tree drop off

Now that it's less merry and bright, do the right thing and recycle your tree with the city of Houston. Photo by Daeun Kim on Unsplash

As the holiday season comes to a close, you might be wondering what's the most sustainable way to say goodbye to your beloved Christmas tree. A city program has your solution.

The city of Houston's Solid Waste Management Department has opened 22 residential tree drop-off recycling locations throughout the area. Locals can take their live trees to one of these centers across the city, where they will be repurposed for mulch or other landscape materials.

This tree recycling program, which runs Thursday, December 26, 2024, through Friday, January 24, 2025, is part of the city of Houston for the 34rd annual tree mulching event. Continue reading.

Houston clean fuels co. secures $50M investment from Diamondback Energy subsidiary

With the deal, Midland, Texas-based Cottonmouth will make a $50 million equity investment into Houston-based Verde. Image via Shutterstock

Verde Clean Fuels announced the entry into a stock purchase agreement with Cottonmouth Ventures, a wholly-owned subsidiary of Diamondback Energy.

With the deal, Midland, Texas-based Cottonmouth will make a $50 million equity investment into Houston-based Verde.

The investment will consist of the purchase of 12.5 million shares of Verde’s Class A common stock at a purchase price of $4.00 per share. Closing of the investment is anticipated to occur during the first quarter of the new year, which will be subject to satisfaction of customary closing conditions. The investment would represent the second investment by Cottonmouth in Verde over the past two years, which would equal a total investment of $70 million. This would make Cottonmouth the second largest shareholder of Verde.

“We are pleased to further our relationship with Diamondback and continue advancing our plans to deploy our technology through the development of commercial production plants,” Ernest Miller, CEO of Verde, says in a news release. “Diamondback is a strategic industry partner at the forefront of bringing sustainable operational practices to the oilfield and supporting the overall transition to clean energy.” Continue reading.

Robotics co. with growing Houston presence closes series B

The advanced submersible robotics company will put the funds toward international expansion. Photo courtesy of Square Robot

Houston- and Boston-based Square Robot Inc. closed a series B round of funding last month.

The advanced submersible robotics company raised $13 million, according to Tracxn.com, and says it will put the funds toward international expansion.

"This Series B round, our largest to date, enables us to accelerate our growth plans and meet the surging global demand for our services,” David Lamont, CEO, said in a statement. Continue reading.

ExxonMobil, Worley to bring low-carbon hydrogen project to Baytown

The facility in Baytown is expected to produce 28.3 million cubic meters of low-carbon hydrogen daily. Photo via exxonmobil.com

ExxonMobil selected Australia-based engineering and professional services company Worley to provide engineering, procurement and construction services for a proposed hydrogen and ammonia production facility in Baytown, which is expected to have a production capacity of 1 billion cubic feet of blue hydrogen per day. ExxonMobil expects the facility will be the largest of its kind in the world.

“We are delighted to continue our strategic, global relationship with ExxonMobil in its execution of upcoming projects, particularly in delivering this EPC project on the US Gulf Coast, which contributes significantly to strengthening Worley’s backlog,” Chris Ashton, CEO of Worley, states, according to Offshore Energy. Continue reading.

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A View From HETI

A federal judge has thrown out President Trump's executive order blocking wind energy development, calling it 'arbitrary and capricious.' Photo by Moritz Lange via Unsplash.

In a win for clean energy and wind projects in Texas and throughout the U.S., a federal judge struck down President Donald Trump’s “Day One” executive order that blocked wind energy development on federal lands and waters, the Associated Press reports.

Judge Patti Saris of the U.S. District Court for the District of Massachusetts vacated Trump’s executive order from Jan. 20, declaring it unlawful and calling it “arbitrary and capricious.”

The challenge was led by a group of state attorneys general from 17 states and Washington, D.C., which was led by New York Attorney General Letitia James. The coalition pushed back against Trump's order , arguing that the administration didn’t have the authority to halt project permitting, and that efforts would critically impact state economies, the energy industry, public health and climate relief efforts.

White House spokesperson Taylor Rogers told the Associated Press that wind projects were given unfair treatment during the Biden Administration and cited that the rest of the energy industry suffered from regulations.

According to the American Clean Power Association, wind is the largest source of renewable energy in the U.S. It provides 10 percent of the electricity generated—and growing. Texas leads the nation in wind electricity generation, accounting for 28 percent of the U.S. total in 2024, according to the U.S. Energy Information Administration.

Several clean-energy initiatives have been disrupted by recent policy changes, impacting Houston projects.

The Biden era Inflation Reduction Act’s 10-year hydrogen incentive was shortened under Trump’s One Big Beautiful Bill Act, prompting ExxonMobil to pause its Baytown low-carbon hydrogen project. That project — and two others in the Houston region — also lost federal support as part of a broader $700 million cancellation tied to DOE cuts.

Meanwhile, Texas House Democrats have urged the administration to restore a $250 million Solar for All grant that would have helped low-income households install solar panels.

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