How is energy produced?

ENERGY 101

Energy sources are often categorized as renewable or not, but perhaps a more accurate classification focuses on the type of reaction that converts energy into useful matter. Photo by simpson33/Getty Images

Many think of the Energy Industry as a dichotomy–old vs. new, renewable vs. nonrenewable, good vs. bad. But like most things, energy comes from an array of sources, and each kind has its own unique benefits and challenges. Understanding the multi-faceted identity of currently available energy sources creates an environment in which new ideas for cleaner and more sustainable energy sourcing can proliferate.

At a high level, energy can be broadly categorized by the process of extracting and converting it into a useful form.

Energy Produced from Chemical Reaction

Energy derived from coal, crude oil, natural gas, and biomass is primarily produced as a result of bonds breaking during a chemical reaction. When heated, burned, or fermented, organic matter releases energy, which is converted into mechanical or electrical energy.

These sources can be stored, distributed, and shared relatively easily and do not have to be converted immediately for power consumption. However, the resulting chemical reaction produces environmentally harmful waste products.

Though the processes to extract these organic sources of energy have been refined for many years to achieve reliable and cheap energy, they can be risky and are perceived as invasive to mother nature.

According to the 2022 bp Statistical Review of World Energy, approximately 50% of the world’s energy consumption comes from petroleum and natural gas; another 25% from coal. Though there was a small decline in demand for oil from 2019 to 2021, the overall demand for fossil fuels remained unchanged during the same time frame, mostly due to the increase in natural gas and coal consumption.

Energy Produced from Mechanical Reaction

Energy captured from the earth’s heat or the movement of wind and water results from the mechanical processes enabled by the turning of turbines in source-rich environments. These turbines spin to produce electricity inside a generator.

Solar energy does not require the use of a generator but produces electricity due to the release of electrons from the semiconducting materials found on a solar panel. The electricity produced by geothermal, wind, solar, and hydropower is then converted from direct current to alternating current electricity.

Electricity is most useful for immediate consumption, as storage requires the use of batteries–a process that turns electrical energy into chemical energy that can then be accessed in much the same way that coal, crude oil, natural gas, and biomass produce energy.

Energy Produced from a Combination of Reactions

Hydrogen energy comes from a unique blend of both electrical and chemical energy processes. Despite hydrogen being the most abundant element on earth, it is rarely found on its own, requiring a two-step process to extract and convert energy into a usable form. Hydrogen is primarily produced as a by-product of fossil fuels, with its own set of emissions challenges related to separating the hydrogen from the hydrocarbons.

Many use electrolysis to separate hydrogen from other elements before performing a chemical reaction to create electrical energy inside of a contained fuel cell. The electrolysis process is certainly a more environmentally-friendly solution, but there are still great risks with hydrogen energy–it is highly flammable, and its general energy output is less than that of other electricity-generating methods.

Energy Produced from Nuclear Reaction

Finally, energy originating from the splitting of an atom’s nucleus, mostly through nuclear fission, is yet another way to produce energy. A large volume of heat is released when an atom is bombarded by neutrons in a nuclear power plant, which is then converted to electrical energy.

This process also produces a particularly sensitive by-product known as radiation, and with it, radioactive waste. The proper handling of radiation and radioactive waste is of utmost concern, as its effects can be incredibly damaging to the environment surrounding a nuclear power plant.

Nuclear fission produces minimal carbon, so nuclear energy is oft considered environmentally safe–as long as strict protocols are followed to ensure proper storage and disposal of radiation and radioactive waste.

Nuclear to Mechanical to Chemical?

Interestingly enough, the Earth’s heat comes from the decay of radioactive materials in the Earth’s core, loosely linking nuclear power production back to geothermal energy production.

It’s also clear the conversion of energy into electricity is the cleanest option for the environment, yet adequate infrastructure remains limited in supply and accessibility. If not consumed immediately as electricity, energy is thus converted into a chemical form for the convenience of storage and distribution it provides.

Perhaps the expertise and talent of Houstonians serving the flourishing academic and industrial sectors of energy development will soon resolve many of our current energy challenges by exploring further the circular dynamic of the energy environment. Be sure to check out our Events Page to find the networking event that best serves your interest in the Energy Transition.


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Lindsey Ferrell is a contributing writer to EnergyCapitalHTX and founder of Guerrella & Co.

Lignium combats greenhouse gasses with a green fuel that boasts an enviably low carbon footprint. Photo courtesy of Lignium

Why this growing Chilean clean energy company moved its HQ to Houston

future of farming

In Houston, air pollution is usually more of an abstract concept than a harsh reality. But in parts of Chile, the consequences of heating homes with wet wood are catching up to residents.

“Given all the contamination, there are times kids aren’t allowed to go to school. The air pollution is really affecting people’s health,” says Agustín Ríos, COO of Lignium Energy.

Additionally, the methane and nitrous oxide produced by cattle farming are a problem. But Lignium Energy, an international company started in Chile and now headquartered in Houston’s Greentown Labs, has a solution that can solve both problems by upending the latter.

“There’s a lack of solutions with the problem of manure. Methane gases are destroying our planet,” says CEO and co-founder Enrique Guzmán. He goes on to say that most solutions currently being developed are expensive and complex. But not Lignium Energy’s method, invented by co-founder José Antonio Caraball.

Caraball has patented an extraordinarily simple concept. Lignium separates the solid from liquid excretions, then cleans the solid to generate a hay-like biomass. Biomass refers to organic matter that can be used as fuel. What Lignium makes from the cattle evacuations is a clean, odorless and highly calorific biomass.

Essentially, Lignium combats greenhouse gasses with a green fuel that boasts an enviably low carbon footprint. “Our process is very cheap and very simple. That’s why we are a great solution,” explains Guzmán.

Caraball, an industrial engineer, came up with the idea six years ago, says Guzmán. Five years ago, he began working with the company, one year ago, Guzmán and Ríos picked up and moved to Houston.

“We decided to move out of Chile due to market size,” says Ríos. However, the product is already being sold to consumers in its homeland.

Why Houston? The reason was twofold. As an energy company, Ríos says that they wanted to be in “the energy capital of the world.” But Texas is also one of the largest sites of cattle farming on the planet. Lignium prefers to work with farms with more than 500 head to optimize harvesting the waste that becomes biomass.

With that in mind, Lignium has partnered with Southwest Regional Dairy Center in Stephenville, Texas, a little more than an hour southwest of Fort Worth, a town known as the world’s rodeo capital. The facility is associated with Texas A&M, though Guzmán says Lignium is not officially associated with the university.

Guzmán says that the company is currently hiring a team member to help Lignium figure out commercial logistics, as well as four or five other Houstonians who will help them take their product to market in the United States, and eventually around the globe. For now, he predicts that they will be able to sell to consumers in this country by early next year, if not the fourth quarter of 2023.

“We are very committed to the solution because, at the end of the day, if we do good work with the company, we are sure we can give better conditions to the cattle industry,” says Guzmán. “Then we can make a big impact on a real problem.

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This article originally ran on InnovationMap.

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Houston researcher develops efficient method to cool AI data centers

cool findings

A University of Houston professor has developed a new cooling method that can remove heat at least three times more effectively from AI data centers than current technologies.

Hadi Ghasemi, a distinguished professor of Mechanical & Aerospace Engineering at UH, published his findings in two articles in the International Journal of Heat and Mass Transfer. The findings solve a critical issue in the growing AI sector, according to UH.

High-powered AI data centers generate huge amounts of heat due to the GPU and operating systems they use with extreme power densities, which introduce complex thermal challenges. Traditionally, cooling methods, like microchannels, which use flow and spray cooling, have had limitations when exposed to extreme heat flux, according to UH.

Ghasemi’s research, however, found a more effective way to design thin-film evaporation structures to release heat from data centers and electronics at record performance.

Ghasem’s solution coupled topology optimization and AI modeling to determine the best shapes for thin film efficiency, ultimately landing on a branch-like structure—resembling a tree.

The model found that the “branches” needed to be about 50 percent solid and 50 percent empty space for optimum efficiency, and that they could sustain high heat fluxes with minimal thermal resistance.

“These structures could achieve high critical heat flux at much lower superheat compared to traditionally studied structures,” Ghasemi said in a news release. “The new structures can remove heat without having to get as hot as previous removal systems.

Ghasemi’s doctoral candidates, Amirmohammad Jahanbakhsh and Saber Badkoobeh Hezave, also worked on the project. The team believes their results show the impact of a physics-aware, AI design and can help ensure reliability, longevity and stability of AI data centers.

“Beyond achieving record performance, these new findings provide fundamental insight into the governing heat-transfer physics and establishes a rational pathway toward even higher thermal dissipation capacities,” Ghasemi added in the release

Texas federal judge allows lawsuit against California AG over ExxonMobil remarks

In the News

A federal judge in Texas ruled that ExxonMobil can bring a defamation lawsuit against California’s attorney general over comments about the company’s plastic recycling efforts.

U.S. District Judge Michael J. Truncale in the Eastern District of Texas said in a ruling in February that California Attorney General Rob Bonta cannot claim official immunity in regards to several statements he made, including one in a campaign email sent to Texas residents.

Bonta sued Exxon in September 2024, saying that the oil giant encouraged consumers to purchase plastics products with the promise that the products would be recycled. He said less than 5% of plastic is recycled into another plastic product, and that recycling processes touted by Exxon don't work. Exxon said the problem is with California's recycling system.

Exxon later sued Bonta in his individual capacity and environmental groups for defamation, saying that the comments harmed current and future business contracts. The lawsuit was filed in Texas, near its principal place of business.

Truncale dismissed the lawsuit against the environmental groups but allowed it to proceed against Bonta.

The judge pointed to a campaign email Bonta sent to Texas residents saying that only 5% is recycled and the rest ends up in the environment and in our bodies: “Exxon Mobil knew, and Exxon Mobil lied.” Bonta, a Democrat, argued he was simply updating email recipients on his office's activities.

But Truncale said a campaign contribution link on the email turned the communication into a campaign activity not protected by immunity in Bonta's official capacity as attorney general.

“Here, the contribution request betrays the email's true nature: a campaign promotion. Campaigning is not within Bonta's scope of employment,” the judge wrote.

Bonta has filed a notice of appeal.

“The Attorney General looks forward to vigorously litigating this case, and is proud to advance his lawsuit against ExxonMobil,” his press office said.

ExxonMobil said in a statement that the “campaign of lies designed to derail our advanced recycling business must stop.”

Houston startup debuts sustainable, bio-based 'leather' fashions

sustainable fashion

Last month, Houston-based Rheom Materials and India’s conscious design studio Econock unveiled a collaborative capsule collection that signaled more than just a product launch.

Hosted at Lineapelle—long considered the global epicenter of the world's premier leather supply chain—in the vaulted exhibition halls of Rho-Fiera Milano, the collection centered around Rheom’s 91 percent bio-based leather alternative, Shorai.

It was a bold move, one that shifted sustainability from a concept discussed in panel sessions to garments that buyers could touch and wear.

The collection featured a bomber-style jacket, an asymmetrical skirt and a suite of accessories—all fabricated from Shorai.

The standout piece, a sculptural jacket featuring a funnel neck and dual-zip closure, was designed for movement, challenging assumptions about performance limitations in bio-based materials. The design of the asymmetrical skirt was drawn from Indian armored warrior traditions, according to Rheom, with biodegradable corozo fasteners.

Built as a modular wardrobe rather than isolated pieces, the collection reflects a shared belief between Rheom and Econock in designing objects that adapt to daily life, according to the companies.

The collection was born out of a new partnership between Rheom and Econock, focused on bringing biobased materials to the market. According to Rheom, the partnership solves a problem that has stalled the adoption of many next-gen textiles: supply chain friction.

While Rheom focuses on engineering scalable bio-based materials, New Delhi-based Econock brings the complementary design and manufacturing ecosystem that integrates artisans, circular materials and production expertise to translate the innovative material into finished goods.

"This partnership removes one of the biggest barriers brands face when adopting next-generation materials,” Megan Beck, Rheom’s director of product, shared in a news release. “By reducing friction across the supply chain, Rheom can connect brands directly with manufacturers who already know how to work with Shorai, making the transition to more sustainable materials far more accessible.”

Sanyam Kapur, advisor of growth and impact at Econock, added: “Our partnership with Rheom Materials represents the benchmark of responsible design where next-gen materials meet craft, creativity, and real-world scalability.”

Rheom, formerly known as Bucha Bio, has developed Shorai, a sustainable leather alternative that can be used for apparel, accessories, car interiors and more; and Benree, an alternative to plastic without the carbon footprint. In 2025, Rheom was a finalist for Startup of the Year in the Houston Innovation Awards.

Shorai is already used by fashion lines like Wuxly and LuckyNelly, according to Rheom. The company scaled production of the sugar-based material last year and says it is now produced in rolls that brands can take to market with the right manufacturer.

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This article originally appeared on our sister site, InnovationMap.