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Energy tech expert: Recent report shines light on clean tech progress needed by 2030

"Companies and stakeholders across the energy spectrum need to act together and act fast." Photo via Getty Images

Houston is home to some of the nation's largest oil and gas exploration and production firms, making it one of the world’s most important energy capitals. Growing regional support for pioneering clean tech, such as carbon capture, will help achieve the crucial transition to net zero whilst maintaining economic stability, boosting local industries and creating jobs.

According to the International Energy Agency (IEA), North America and Asia Pacific are expected to hold the largest share in carbon capture capacity. North America’s world-leading carbon capture potential comes as no surprise given the nation’s dominance in oil and gas, and ideal geology for sequestration.

The IEA’s recently published World Energy Outlook 2023 depicts a global market that is in transition. With more companies, world leaders and governments recognizing that a shift towards sustainable energy is both inevitable and transformative, the question is no longer whether we switch to clean energy, but rather how soon the transition can happen.

For every $1 in investment spending on fossil fuels globally, $1.8 is now being spent to develop clean energy, according to the IEA. Although the clean energy market has almost doubled in the past five years to reach an estimated $2.8 trillion in 2023, investment needs to hit $4.2 trillion per year by 2030 to achieve the universally shared goal of net zero. The IEA believes around 1 Gigaton of CO2 must be captured in 2030, rising to 6 Gigatons by 2050 to achieve the Net Zero Emissions by 2050 Scenario (termed NZE Scenario). This presents a tremendous opportunity for government stakeholders and the business community in Houston to turbocharge the economy and protect the planet from the impact of climate change.

While volatility around the energy market lingers, sustainable technologies remain one of the most dynamic areas of global energy investment. An essential ingredient to its success is bringing on board innovators, entrepreneurs, corporations, and financiers to ensure technology innovation is front and center in facilitating the clean energy transition.

Carbon capture technology is critical, but energy leaders and hard-to-abate industries are under pressure to move faster. To do that, the carbon capture industry must scale up its deployment and increase adoption if hard-to-abate sectors are to address the 30 percent of global CO2 emissions for which they are responsible. Governments have a pivotal role to play in providing financial, regulatory and policy incentives, facilitating a collaborative environment between financiers, hard-to-abate operators, and clean tech companies. While we are moving in the right direction, there is no room for complacency or procrastination given the short timescales for meaningful action.

Over the past several years, Carbon Clean, a global company that is revolutionizing carbon capture, has enjoyed significant expansion in North America. Following the passage of the Inflation Reduction Act (IRA) in August 2022, we saw huge interest in our modular industrial carbon capture technology almost overnight, resulting in a 64 percent increase in inquiries from the U.S. To meet this booming demand, we have opened a U.S. headquarters in Houston, and have plans to double our U.S. headcount to meet industry requirements for our scalable and cost-effective technology, CycloneCC. In short, the United States is poised to become our biggest market. Given our latest lead investor and partner is Houston-based Chevron New Energies, there is no better place than Houston to drive innovation in the country’s energy sector.

The IRA did more than just bring in new inquiries for our breakthrough technology – it also signaled to the energy sector that the federal government is getting serious about bringing emissions down. The impact of the IRA cannot be overstated, especially for the point-source carbon capture technology pioneered by Carbon Clean. While the IRA involves billions of dollars of public investment, it is set up in such a way that companies must make substantial investments first, acting as a down payment on fostering jobs and ensuring the business community is delivering ambitious climate action. The benefits are being felt locally as well – cities like Houston are at the forefront of what the IRA has to offer, taking advantage of these investments and reducing emissions.

Companies and stakeholders across the energy spectrum need to act together and act fast. With the dramatic growth required for carbon capture to have full effect, it will be essential for government, industry, and innovators to join together to concentrate on a number of projects and clusters. We are confident that with new cutting-edge technology and broad collaboration we can rapidly get the world on the right path to net zero.

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Prateek Bumb is CTO and co-founder of Carbon Clean and the principal innovator of Carbon Clean’s industrial carbon capture technologies.

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A View From HETI

A View From UH

Katie Mehnert reflects on the progress Houston has made within the energy transition and future of work following her experience ringing the bell at the New York Stock Exchange. Photo courtesy of ALLY

As I stood on the platform at the world’s largest stock exchange to ring the closing bell, surrounded by 130 people from across the energy industry, I saw it clearly: how the private sector will play a major role in getting us to an era of net zero. The people who power the energy industry will do the hard work. We’ve already begun. And we’re unafraid of the long journey ahead — something more than 40 of us exemplified that weekend by running a marathon.

The trip to New York City days ago was an exhilarating whirlwind. But it was also something much more: A chance to show the markets, the nation, and the world that Houston is leading the energy transition. (It didn’t hurt that we popped up on Good Morning America.)

From the beginning, the idea behind this pair of events — ringing the bell at the New York Stock Exchange and running the TCS New York City Marathon — was aimed at sending crucial messages. That recognizing climate change and building solutions is an obligation and an opportunity. That the energy industry understands this. That investors have good reason to support climate tech, one of the most exciting and fastest growing sectors. And, last but not least, that people’s perceptions of Houston as being all about oil and gas are simply wrong.

The dozens of us who gathered came from across the country and around the world, But by far, the largest contingent was from right here in Houston. Executives, engineers, entrepreneurs, and other innovators took part. People spearheading projects in every facet of energy, from wind to solar, carbon capture, and other methods of dramatically reducing carbon emissions. All as one team.

Those who traveled from “the energy capital” knew how important it was to highlight our Houston pride. As a new report from the Texas Climate Tech Collective points out, the biggest problem in the city’s climate tech ecosystem is its image. “Outsider perceptions of Houston often draw on negative stereotypes,” the report explains. “The number one disadvantage survey respondents chose – even more than access to VC capital – was Houston’s anti-climate reputation outside the state.”

It’s a problem I’ve been trying to combat for years, including through op-eds in national and international media outlets. Fortunately, the idea is starting to get through. Just days ago, the Financial Times reported that Houston claimed the top spot in this year’s FT-Nikkei Investing in America rankings by “moving beyond oil.” Our city, the paper said, “has become a hub for green energy innovation by building on its hydrocarbon past.”

Houston, and Texas a whole, should be immensely proud of this. But the energy industry has a long history of failing to tell its own stories. It’s time to change that. In fact, the recommendations in the collective’s report include “campaigning to improve Houston’s reputation, improving promotion of Houston’s energy transition initiatives and accomplishments, educating politicians and consumers, reversing anti-climate perception.”

Photo courtesy of ALLY

Building bridges

All of the challenges we face, including the perception problem, will only be overcome if we work together. So the era of siloes must end. Climate change is an “all hands on deck” situation. This means companies large and small, as well as businesses focusing on all forms of energy, need to develop a “one-team” mentality.

We also need to step up our engagement with public sector entities. A great deal of public sector investment is being poured into renewable energy programs. Since I’ve served as an ambassador to the Department of Energy’s Equity in Energy initiative and a member of the National Petroleum Council, I’ve met many people in government who are eager to cooperate with us to help ensure that the United States leads the way in the energy transition.

The need for building these kinds of bridges is another reason that many of the participants in our Women & Allies in Energy team saw the New York City marathon as such a strong metaphor. It’s known for its bridges. And having run across all of them — and stopped for a quick selfie on the toughest one of all, the Queensboro Bridge — I’m reminded of their importance. I was happy to see that another recommendation in the collective’s report speaks directly to this. It calls for, “Building bridges between public and private, energy corporates and startups, universities and startups, and startups and mentors; seeking partnerships with other ecosystems; improving resources for early stage startups.”

We also need to build bridges among groups of people. More than ever, the industry needs diversity, equity and inclusion. (See my recent piece for Fast Company about why the C-Suite should double down, not shy away from, DEI.) We need to welcome people with all sorts of backgrounds, experiences, and perspectives. The greatest form of capital the energy sector has in building the future is not financial. It’s human capital. And the greatest natural resource we have is not one form of energy. It’s the people whose hard work, creativity, collaboration, and grit will get us to the finish line.

To help make all this happen, I’m calling for Houston to come together on climate change. Capitalizing on the annual Climate Week in New York City, and building on an event the City of Houston organized in 2021, let’s bring all industries and all people together next fall to show that we recognize climate reality, and are ready to take action together.

The next generation

While I did have the chance to lead the delegation at the NYSE closing bell, I did not hold the gavel — at least, not by myself. Instead, I handed it to my 12-year-old daughter, Ally. (Yes, her name is a big part of the inspiration behind our company name, ALLY Energy.)

As leaders in energy, we have to keep our eyes firmly focused on the next generation. This means not only giving them a strong supply of energy and healthier conditions on the planet. It also means giving them future job opportunities.

It’s up to us to build the pipeline for future talent. We need to improve STEAM (science, technology, engineering, arts and math) education. And we need to demonstrate to people who are currently underrepresented in our industry — such as women and members of minority groups — that they have a future in the world’s most exciting industry.

We can do this. We can get out of our bubble, show our Houston pride to the world, and lead the way to “energy 2.0” — an era of plentiful energy supplies and net-zero emissions. After all, dozens of us have returned from New York City with a mission: capitalize on all that momentum, join together as a team, and run the race to net zero.

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Katie Mehnert is founder and CEO of Ally Energy, a Houston-based talent and culture platform for the energy industry and 2023 Houston Innovation Award recipient.

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