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

big deal

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.

The facility in Baytown is expected to produce 28.3 million cubic meters (1 billion cubic feet) of low-carbon hydrogen daily and nearly 1 million metric tonnes (more than 1 million tons) of ammonia per year, which will also capture more than 98 percent of the associated CO2 emissions.

The facility will leverage advanced carbon capture and storage technologies to reduce emissions associated with hydrogen production. ExxonMobile also said its carbon capture and storage system would be available for use by third-party CO2 emitters in the area.

A final investment decision is expected in 2025 , and an anticipated startup in 2029. “Blue” hydrogen is expected to be a top energy driver in 2025 according to global consultancy Wood Mackenzie who predicts that at least three large-scale blue hydrogen projects in the U.S will reach FID by next year.

The company hopes the new facility will help in creating U.S. jobs and supporting community development initiatives throughout the Houston area, and the state.

The new initiative will take stranded natural gas and turn it into hydrogen. Photo via Getty Images

New York financial firm partners with Houston O&G co. to turn natural gas into blue hydrogen

teamwork

A new partnership between an energy and sustainability investor and a Houston-based company that focuses on cleaner solutions in the oil and gas industry will look into turning stranded natural gas into blue hydrogen.

New York-based Double Zero Holdings and SJ Environmental announced their new partnership this week in an effort to move forward the energy transition. According to the companies, stranded natural gas — mostly methane — usually remains unused where it is not economically viable to transport. By turning these gasses into into blue hydrogen, "the partnership mitigates methane and CO2 emissions while producing hydrogen—a clean fuel that could revolutionize multiple industries," reads the news release.

The initiative will use existing technologies, which can be reduced to the size of a standard shipping container, per the release.

"We're thrilled to partner with SJ Environmental to tackle one of the most pressing environmental issues today," Raja Ramachandran, managing partner of Double Zero Holdings, says in the release. "This collaboration allows us to turn stranded natural gas—a significant environmental liability—into a valuable resource, supporting the global shift toward cleaner energy."

The plan is to lower the amount of natural gas left wasted and provide a low-carbon alternative across transportation, manufacturing, and power generation.

"Our collaboration with Double Zero Holdings reflects our commitment to innovative, sustainable solutions," SJ Environmental Director John Chappell adds. "Together, we're setting a new standard for energy production, delivering hydrogen and food-grade CO₂ where natural gas would typically be flared."

Blue, green, gold — what do all the colors of hydrogen even mean? Photo via Getty Images

Hydrogen's many colors, Houston companies that are focused on it, and more

Guest column

Repeated association of specific colors in defined contexts deeply reinforces themes in the human brain. It’s why most students and alumni of Texas A&M University scoff at the sight of burnt orange, and you’d be hard-pressed to find the home of a Longhorn adorned in shades of crimson or maroon.

The color-coding of hydrogen energy production exemplifies one such ambiguous classification methodology, as the seemingly innocuous labeling of hydrogen as green (for hydrogen produced from renewable sources) and black (for hydrogen produced from coal) initially helped to quickly discern which sources of hydrogen are environmentally friendly or not.

But the coding system quickly became more complicated, as the realization that hydrogen extracted from natural gas (aka grey hydrogen) or coal (again, black hydrogen, or sometimes, brown hydrogen, depending on the carbon content and energy density of the source coal) could be extracted in a less harmful way, by introducing methods of carbon capture and storage.

These cleaner methods for hydrogen extraction earned the lofty color coding of blue, just one shade away from green in the rainbow spectrum and a safe distance from the less delightful and inspiring colors grey, brown, and black.

Then along came pyrolysis — a method for producing hydrogen through methane cracking, plainly, the decomposition of methane, CH₄, into solid carbon and hydrogen gas, without the introduction of oxygen. This method results in significantly less (if any) creation of carbon dioxide as a by-product. Logic would lead one to categorize this process with a color that lies further away from black than exalted cousin, green hydrogen.

However, the solid carbon that remains after pyrolysis retains over one-third of the original energy available from methane and could tip the GHG scales negatively if not utilized in an environmentally responsible manner, so it’s not a clear-cut winner in the game of lower-carbon energy production. Thus, it is nestled between green and blue and often referred to as “turquoise hydrogen” production.

Other hydrogen production methods — pink, purple, and red — defy rainbow logic as they have all proven to result in higher GHG emissions than the original “clean” queen, green hydrogen, despite following a similar electrolysis process to separate hydrogen and oxygen from one another in its original composition as water. The source of electricity used in the electrolysis process determines the color-code here, as pink hydrogen is generated from nuclear power, red hydrogen is generated from nuclear thermal power, and purple hydrogen is generated from a combination of nuclear power and nuclear thermal power.

Yellow hydrogen seems to not yet have found a clear definition. Some argue it refers to green hydrogen produced exclusively from solar-powered electrolysis, while others claim it to be the child of mixed green/gray hydrogen. Artists should probably keep a far distance from this conversation, unless the energy produced from the steam coming out of their ears could perform electrolysis more cleanly than any of the green hydrogen solutions.

Finally, we have white hydrogen, the naturally occurring, zero-carbon emitting, plentiful element found in the earth’s crust – which is also the least understood of all the hydrogen extraction methodologies.

Remember, hydrogen is the first element in the periodic table, meaning it’s density is very low. Hydrogen knows no bounds, and once it escapes from its natural home, it either floats off into outer space or attaches itself to another element to form a more containable compound, like water.

Many believe white hydrogen to be the unquestionable solution to a lower-carbon energy future but there is still much to be understood. Capturing, storing, and transporting white hydrogen remain mostly theoretical, despite recent progress, which includes one recently announced Houston lab dedicated to hydrogen transport. Another Houston company, Syzygy has raised millions with its light-based catalyst for hydrogen production.

For example, Cemvita, a local Houston chemical manufacturing company, predicts a future powered by gold hydrogen: white hydrogen sourced from depleted oil and gas wells. Many wildcatters believe strongly in a new era of exploration for white hydrogen using techniques refined in oil and gas exploration, including reservoir analysis, drilling, and fracking.

Without a doubt, investigating further the various hydrogen extraction theories is surely a craveable new challenge for the sciences. But perhaps the current color-coding nomenclature for hydrogen needs refinement, as well.

Unless used in the scientific context of wavelength, color-based labels represent an ambiguous classification tool, as the psychology of color depends on modern societal norms. The association of colors with the various hydrogen production methodologies does very little to distinguish the climate impact each method produces. Additionally, the existing categorizations do not consider any further distribution or processing of the produced hydrogen — a simple fact that could easily negate any amount of cleanliness implied by the various production methods — and a topic for a future article.

For now, hydrogen represents one of the front-running sources for a lower-carbon energy future, but it’s up to you if that’s best represented by a blue ribbon, gold medal, white star, or cold-hard greenbacks.

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

Scott Nyquist debates both sides of the hydrogen argument in this week’s ECHTX Voices of Energy guest column. Photo courtesy of Aramco.

Will 2023 be hydrogen’s year?

GUEST COLUMN

Yes and no.

Yes, because there is real money, and action, behind it.

Globally, there are 600 projects on the books to build electrolyzers, which separate the oxygen and hydrogen in water, and are critical to creating low-emissions “green hydrogen.” That investment could drive down the cost of low-emissions hydrogen, making it cost competitive with conventional fuels—a major obstacle to its development so far.

In addition, oil companies are interested, too. The industry already uses hydrogen for refining; many see hydrogen as supplemental to their existing operations and perhaps, eventually, supplanting them. In the meantime, it helps them to decarbonize their refining and petrochemical operations, which most of the majors have committed to doing.

Indeed, hydrocarbon-based companies and economies could have a big opportunity in “blue hydrogen,” which uses fossil fuels for production, but then captures and stores emissions. (“Green hydrogen” uses renewables; because it is expensive to produce, it is more distant than blue. “Gray hydrogen” uses fossil fuels, without carbon capture; this accounts for most current production and use.) Oil and gas companies have a head start on related infrastructure, such as pipelines and carbon capture, and also see new business opportunities, such as low-carbon ammonia.

Houston, for example, which likes to call itself the "energy capital of the world,” is going big on hydrogen. The region is well suited to this. It has an extensive pipeline infrastructure, an excellent port system, a pro-business culture, and experience. The Greater Houston Partnership and McKinsey—both of whom I am associated with—estimate that demand for hydrogen will grow 6 to 8 percent a year from 2030 to 2050. No wonder Houston wants a piece of that action.

There are promising, near-term applications for hydrogen, such as ammonia, cement, and steel production, shipping, long-term energy storage, long-haul trucking, and aviation. These bits and pieces add up: steel alone accounts for about 8 percent of global carbon-dioxide emissions. Late last year, Airbus announced it is developing a hydrogen-powered fuel cell engine as part of its effort to build zero-emission aircraft. And Cummins, a US-based engine company, is investing serious money in hydrogen for trains and commercial and industrial vehicles, where batteries are less effective; it already has more than 500 electrolyzers at work.

Then there is recent US legislation. The Infrastructure, Investment and Jobs Act (IIJA) of 2021 allocated $9.5 billion funding for hydrogen. Much more important, though, was last year’s Inflation Reduction Act, which contains generous tax credits to promote hydrogen production. The idea is to narrow the price gap between clean hydrogen and other, more emissions-intensive technologies; in effect, the law seeks to fundamentally change the economics of hydrogen and could be a true game-changer.

This is not without controversy: some Europeans think this money constitutes subsidies that are not allowed under trade rules. For its part, Europe has the hydrogen bug, too. Its REPowerEU plan is based on the idea of “hydrogen-ready infrastructure,” so that natural gas projects can be converted to hydrogen when the technology and economics make sense.

So there is a lot of momentum behind hydrogen, bolstered by the ambitious goals agreed to at the most recent climate conference in Egypt. McKinsey estimates that hydrogen demand could reach 660 million tons by 2050, which could abate 20 percent of total emissions. Total planned production for lower-emission green and blue hydrogen through 2030 has reached more than 26 million metric tons annually—quadruple that of 2020.

No, because major issues have not been figured out.

The plans in the works, while ambitious, are murky. A European official, asked about the REPowerEU strategy, admitted that “it’s not clear how it will work.” The same can be said of the United States. The hydrogen value chain, particularly for green hydrogen, requires a lot of electricity, and that calls for flexible grids and much greater capacity. For the United States to reach its climate goals, the grid needs to grow an estimated 60 percent by 2030.That is not easy: just try siting new transmission lines and watch the NIMBY monsters emerge.

Permitting can be a nightmare, often requiring separate approvals from local, state, interstate, and federal authorities, and from different authorities for each (air, land, water, endangered species, and on and on); money does not solve this. Even a state like Texas, which isn’t allergic to fossil fuels and has a relatively light regulatory touch, can get stuck in permitting limbo. Bill Gates recently noted that “over 1,000 gigawatts worth of potential clean energy projects [in the United States] are waiting for approval—about the current size of the entire U.S. grid—and the primary reason for the bottleneck is the lack of transmission.”

Then there is the matter of moving hydrogen from production site to market. Pipeline networks are not yet in place and shifting natural gas pipelines to hydrogen is a long way off. Liquifying hydrogen and transporting is expensive. In general, because hydrogen is still a new industry, it faces “chicken or egg” problems that are typical of the difficulties big innovations face, such as connecting hydrogen buyers to hydrogen producers and connecting carbon emitters to places to store the carbon dioxide. These challenges add to the complexity of getting projects financed.

Finally, there is money. McKinsey estimates that getting on track to that 600 million tons would require investment of $950 billion by 2030; so far, $240 billion has been announced.

Where I stand: in the middle.

I believe in hydrogen’s potential. More than 3 years ago, I wrote about hydrogen, arguing that while there had been real progress, “many things need to happen, in terms of policy, finance, and infrastructure, before it becomes even a medium-sized deal.” Now, some of those things are happening.

So, I guess I land somewhere in the middle. I think 2023 will see real progress, in decarbonizing refining and petrochemicals operations and producing ammonia, specifically. I am also optimistic that a number of low-emissions electrolysis projects will move ahead. And while such advances might seem less than transformative, they are critical: hydrogen, whether blue or green, needs to prove itself, and 2023 could be the year it does.

Because I take hydrogen’s potential seriously, though, I also see the barriers. If it is to become the big deal its supporters believe it could be, that requires big money, strong engineering and construction project management, sustained commitment, and community support. It’s easy to proclaim the wonders of the hydrogen economy; it’s much more difficult to devise sensible business models, standardized contracts, consistent incentives, and a regulatory system that doesn’t drive producers crazy. But all this matters—a lot.

My conclusion: there will be significant steps forward in 2023—but take-off is still years away.

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Scott Nyquist is a senior advisor at McKinsey & Company and vice chairman, Houston Energy Transition Initiative of the Greater Houston Partnership. The views expressed herein are Nyquist's own and not those of McKinsey & Company or of the Greater Houston Partnership. This article originally ran on LinkedIn.

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7 Houston energy-focused businesses among Time's best midsize companies 2025

new report

Seven Houston-based businesses focused on the energy industry appear on Time magazine and Statista’s new ranking of the country’s best midsize companies.

Time and Statista ranked companies based on employee satisfaction, revenue growth, and transparency about sustainability. All 500 companies on the list have annual revenue from $100 million to $10 billion.

The Houston energy-focused companies on the list are:

No. 141 MRC Global. Score: 85.84
No. 176 National Oilwell Varco. Score: 84.50
No. 266 Nabor Industries. Score: 81.59
No. 296 Archrock. Score: 80.17
No. 327 Superior Energy Services. Score: 79.38
No. 359 CenterPoint Energy. Score: 78.02
No. 461 Oceaneering. Score: 73.87

In total, 13 Houston-based businesses appear, with Houston engineering firm KBR topping the Texas businesses that made the list. KBR earned the No. 30 spot, earning a score of 91.53 out of 100. It is joined by these other Houston companies:

No. 168 Comfort Systems USA. Score: 84.72
No. 175 Crown Castle. Score: 84.51
No. 234 Kirby. Score: 82.48
No. 332 Insperity. Score: 79.15
No. 485 Skyward Specialty Insurance. Score: 73.15

Additional Texas companies on the list include:

No. 95 Austin-based Natera. Score: 87.26
No. 199 Plano-based Tyler Technologies. Score: 86.49
No. 139 McKinney-based Globe Life. Score: 85.88
No. 140 Dallas-based Trinity Industries. Score: 85.87
No. 149 Southlake-based Sabre. Score: 85.58
No. 223 Dallas-based Brinker International. Score: 82.87
No. 226 Irving-based Darling Ingredients. Score: 82.86
No. 256 Dallas-based Copart. Score: 81.78
No. 276 Coppell-based Brink’s. Score: 80.90
No. 279 Dallas-based Topgolf. Score: 80.79
No. 294 Richardson-based Lennox. Score: 80.22
No. 308 Dallas-based Primoris Services. Score: 79.96
No. 322 Dallas-based Wingstop Restaurants. Score: 79.49
No. 335 Fort Worth-based Omnicell. Score: 78.95
No. 337 Plano-based Cinemark. Score: 78.91
No. 345 Dallas-based Dave & Buster’s. Score: 78.64
No. 349 Dallas-based ATI. Score: 78.44
No. 385 Frisco-based Addus HomeCare. Score: 76.86
No. 414 New Braunfels-based Rush Enterprises. Score: 75.75
No. 431 Dallas-based Comerica Bank. Score: 75.20
No. 439 Austin-based Q2 Software. Score: 74.85
No. 458 San Antonio-based Frost Bank. Score: 73.94
No. 475 Fort Worth-based FirstCash. Score: 73.39
No. 498 Irving-based Nexstar Broadcasting Group. Score: 72.71

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This article originally appeared on our sister site, InnovationMap.

TEX-E names Houston VC leader as new executive director

new hire

The Texas Exchange for Energy & Climate Entrepreneurship (TEX-E) has named Houston venture capital and innovation leader Sandy Guitar as its new executive director.

Guitar succeeds David Pruner, who will move into the board chair role.

Guitar previously served as general partner and managing director at Houston-based VC firm HX Venture Fund and is co-founder of Weathergage Capital. She also sits on the advisory board of Rice University's Liu Idea Lab for Innovation and Entrepreneurship (Lilie) and launched the Women Investing in VC in Houston group.

In a LinkedIn post, Guitar shared that she's looking forward to bringing her problem-solving skills to the energy transition.

"Innovating in the energy sector is as significant and intricate a problem as I have ever worked on — one that demands creativity, collaboration, and resourcefulness at every turn," she shared.

"I'm honored to join TEX-E at such a pivotal time in the energy transition," she added in a news release. "Energy and climate innovation is accelerating at the intersection of brilliant minds and bold ideas. I'm excited to help TEX-E amplify that collision between students who think differently and the real-world problems that demand fresh solutions."

According to TEX-E, Guitar will continue to lead the organization's programming that aims to connect student climate entrepreneurs with "industry reality."

"Sandy understands the complexities of the Texas energy ecosystem and brings a forward-looking vision for how related innovation can drive meaningful, lasting impact. She's exactly the leader we need to take TEX-E to the next level and help create the next generation of energy transition innovators," David Baldwin, TEX-E board member, added in the release.

TEX-E was founded in 2022 through partnerships with MIT Martin Trust Center for Entrepreneurship and Greentown Labs. It works with university students from six schools: Rice University, University of Houston, Prairie View A&M University, The University of Texas at Austin, Texas A&M University and MIT.

It's known for its student track within the Energy Venture Day and Pitch Competition at CERAWeek, which awarded $25,000 to HEXASpec, a Rice University-led team, at the 2025 event. It also hosted its inaugural TEX-E Conference, centered on the theme of Energy & Entrepreneurship: Navigating the Future of Climate Tech, earlier this year.

Expert: Debunking the myth that Texas doesn't care about renewable energy

Guest Column

When most people think about Texas, wind turbines and solar panels may not be the first images that come to mind. But in reality, the state now leads the nation in both wind-powered electricity generation and utility-scale solar capacity. In 2024 alone, Texas added approximately 9,700 megawatts of solar and 4,374 megawatts of battery storage, outpacing all other energy sources in new generation capacity that year. So what’s driving Texas’ rapid rise as the renewable energy capital of the United States?

Leader in wind energy

Texas has been a national leader in wind energy for more than a decade, thanks to its vast open landscapes and consistent wind conditions, particularly in regions like West Texas and the Panhandle. These ideal geographic features have enabled the development of massive wind farms, giving Texas the largest installed wind capacity in the United States. Wind energy also plays a strategic role in balancing the grid and complements solar energy well, as it often peaks at night when solar output drops.

Battery storage growth

Increasing battery storage capacity is unlocking more potential from solar and wind. When intermittent energy sources like wind and solar go offline, batteries release stored electricity and provide stability to the Electric Reliability Council of Texas system. Excluding California, Texas has more battery storage than the rest of the United States combined, accounting for over 32% of all the capacity installed nationwide.

Solar electricity generation and utility-scale batteries within ERCOT power grid set records in summer 2024. Between June 1 and August 31, solar contributed nearly 25% of total power demand during mid-day hours. In the evening, as demand stayed high but solar output declined, battery discharges successfully filled the gap. Battery storage solutions are now a core element of ERCOT’s future capacity and demand planning.

Interest in creating a hydrogen economy

Texas is well positioned to become a national hub in the hydrogen economy. The state has everything needed to lead in this emerging space with low-cost natural gas, abundant and growing low carbon electricity, geology well suited for hydrogen and carbon storage, mature hydrogen demand centers, existing hydrogen pipelines, established port infrastructure and more. The state already has an existing hydrogen market with two-thirds of the country’s hydrogen transport infrastructure.

In 2023, the Texas Legislature created the Texas Hydrogen Production Policy Council, which found that:

Hydrogen could represent a grid-scale energy storage solution that can help support the increased development of renewable electricity from wind and solar. Renewable electricity that is converted to hydrogen can improve overall grid reliability, resilience and dispatchability.
The development of the hydrogen industry, along with its supporting infrastructure and its downstream markets within Texas, could attract billions of dollars of investment. This development may create hundreds of thousands of jobs - especially with younger generations who are passionate about climate science - and greatly boost the Texas economy.
Hydrogen supports the current energy economy in Texas as a critical component to both conventional refining and the growing production of new biofuels (such as renewable diesel and sustainable aviation fuel) within the state.

Legislative action and pressure to reduce carbon emissions

Texas has also seen key legislative actions and policies that have supported the growth of renewable energy in Texas. During the most recent legislative session, lawmakers decided that The Texas Energy Fund, a low-interest loan program aimed at encouraging companies to build more power infrastructure, will receive an additional $5 billion on top of the $5 billion lawmakers approved in 2023. Of that amount, $1.8 billion is earmarked to strengthen existing backup generators, which must be powered by a combination of solar, battery storage and natural gas. These funds signal growing institutional support for a diversified and more resilient energy grid.

Furthermore, there is growing pressure from investors, regulators and consumers to reduce carbon emissions, and as a result, private equity firms in the oil and gas sector are diversifying their portfolios to include wind, solar, battery storage and carbon capture projects. In 2022, private equity investment in renewable energy and clean technology surged to a record-high $26 billion.

The future of the renewable energy workforce

With renewable energy jobs projected to grow to 38 million globally by 2030, the sector is poised to be one of the most promising career landscapes of the future. Given that young people today are increasingly environmentally conscious, there is a powerful opportunity to engage students early and help them see how their values align with meaningful, purpose-driven careers in clean energy. Organizations like the Energy Education Foundation play a vital role in this effort by providing accessible, high-quality resources that bridge the gap between energy literacy and real-world impact. The nonprofit employs comprehensive, science-based educational initiatives to help students and educators explore complex energy topics through clear explanations and engaging learning tools, laying a strong foundation for informed, future-ready learners.

STEM and AI education, which are reshaping how young people think, build, and solve problems, provide a natural gateway into the renewable energy field. From robotics and coding to climate modeling and sustainable engineering, these learning experiences equip students with the critical skills and mindsets needed to thrive in a rapidly evolving energy economy. By investing in engaging, future-focused learning environments now and through leveraging trusted educational partners, like the Energy Education Foundation, we can help ensure that the next generation of learners are not just prepared to enter the clean energy workforce but are empowered to lead it.

With its rapidly growing wind, solar, battery and hydrogen sectors, Texas is redefining its energy identity. To sustain this momentum, the state must continue aligning education, policy, and innovation—not only to meet the energy demands of tomorrow, but to inspire and equip the next generation to lead the way toward a more sustainable, resilient and inclusive energy future.

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Kristen Barley is the executive director of the Energy Education Foundation, a nonprofit dedicated to inspiring the next generation of energy leaders by providing comprehensive, engaging education that spans the entire energy spectrum.

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