turner's legacy

In final State of the City speech, Houston mayor addresses resiliency, energy transition efforts

"I am proud of the city that I shall pass forward." Photo courtesy of the city of Houston

For his eighth and final time, Mayor Sylvester Turner delivered the State of the City address last week, and he highlighted some of the gains within his tenure.

"We are greener, more compassionate, more united, and more forward-moving than we can ever imagine," says Mayor Turner. “What I can say to Houstonians is that I have given you my best, and I am proud of the city that I shall pass forward.”

At the event, which boasted a sold-out crowd of 1,500 Houstonians, Mayor turned announced some of the initiatives he's most proud of accomplishing and revealed release of “A Winning Legacy,” a book detailing his legacy.

“Together, we have faced many storms – seven federally declared disasters in eight years. From floods or a freeze, from a Super Bowl or the pandemic, we rose and met the challenges of our times,” says the mayor in his speech. “From inequities in neighborhoods investments to billions of dollars in pension unfunded liabilities, from One Safe Houston to One Clean Houston, we confronted each issue head on and set the city on firmer footing.”

Mayor Turner goes on to name the other storms that hit Houston during his tenure, and how resiliency and the energy transition became major themes of this office.

"We are the energy capital of the world," he says to the crowd. "We purchase more renewable energy than any other city in the United States. ... We lead the country in renewables."

In the address, Mayor Turner mentions his work on a project, announced last year, to convert a former landfill into a solar farm.

"The Sunnyside Solar Farm, which will be the largest urban solar farm in the country, will be operational by 2024," he says.

Mayor Turner wraps up his speech, which is available in its entirety on the city's YouTube page, with noting that he is leaving the next mayor — who will be decided in next month's election — with a $420 million surplus. When Mayor Turner was elected in 2015, the city had a $160 million deficit.

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A View From HETI

ExxonMobil Chairman and CEO Darren Woods said during the company’s recent second-quarter earnings call that the company is "concerned about the development of a broader market" for its low-carbon hydrogen plant in Baytown. Photo via exxonmobil.com

Spring-based ExxonMobil, the country’s largest oil and gas company, might delay or cancel what would be the world’s largest low-carbon hydrogen plant due to a significant change in federal law. The project carries a $7 billion price tag.

The Biden-era Inflation Reduction Act created a new 10-year incentive, the 45V tax credit, for production of clean hydrogen. But under President Trump’s "One Big Beautiful Bill Act," the window for starting construction of low-carbon hydrogen projects that qualify for the tax credit has narrowed. The Inflation Reduction Act mandated that construction start by 2033. But the Big Beautiful Bill switched the construction start time to early 2028.

“While our project can meet this timeline, we’re concerned about the development of a broader market, which is critical to transition from government incentives,” ExxonMobil Chairman and CEO Darren Woods said during the company’s recent second-quarter earnings call.

Woods said ExxonMobil is working to determine whether a combination of the 45Q tax credit for carbon capture projects and the revised 45V tax credit will help pave the way for a “broader” low-carbon hydrogen market.

“If we can’t see an eventual path to a market-driven business, we won’t move forward with the [Baytown] project,” Woods said.

“We knew that helping to establish a brand-new product and a brand-new market initially driven by government policy would not be easy or advance in a straight line,” he added.

Woods said ExxonMobil is trying to nail down sales contracts connected to the project, including exports of ammonia to Asia and Europe and sales of hydrogen in the U.S.

ExxonMobil announced in 2022 that it would build the low-carbon hydrogen plant at its refining and petrochemical complex in Baytown. The company has said the plant is slated to go online in 2027 and 2028.

As it stands now, ExxonMobil wants the Baytown plant to produce up to 1 billion cubic feet of hydrogen per day made from natural gas, and capture and store more than 98 percent of the associated carbon dioxide. The company has said the project could store as much as 10 million metric tons of CO2 per year.

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