ADVERTISEABOUT USSUBMIT A STORYSUBSCRIBETERMS OF USEPRIVACY POLICY
Visit our family of Brands

Panel: Experts weigh in on what's holding hydrogen development back​ in Houston and beyond

hiccups in hydrogen

It's all about the money — or lack thereof. Photo by Natalie Harms/EnergyCapital

Houston has a ton of potential to be a major hub for hydrogen — but who's to pick up the tab on the progress that is needed to advance the alternative energy source? A panel at a recent event sat down to talk it out.

The Hydrogen Technology Expo, a two-day conference at NRG Center last week, brought in dozens of companies and hundreds of attendees to Houston to discuss the most pressing topics of the energy transition. One panel — moderated by Brett Perlman, CEO of the Center for Houston's Future — looked specifically at the challenges for the hydrogen economy.

The biggest challenge: Money. Perlman starts the conversation asking panelists if Wall Street is showing up to back hydrogen projects.

"Everyone talks about investing in hydrogen, and very few people actually do it," says Sean Shafer, managing partner of Energy and Industrial Advisor Partners, "outside of the big strategics and some technology plays — electrolyzers, fuel cells, and stuff like that."

Timing is an issue, adds Brian Hodges, partner at Aurum Capital Connect. Hodges, who previously was at Bank of America, saw first hand the money that a bank was willing to put into clean energy and decarbonization. But, when presenting options to deploy this funding, Hodges hears a familiar refrain — it's too early, it's too small, the pieces aren't in place yet.

"There is a gigantic pool of capital out there — whether its traditional banks, financial institutions, sovereign wealth funds," he says. "Literally everyone and their dog is interested in the space. ... We're right on the cusp of this, but when you look at Europe, they're 10 years ahead of us."

And that decade of experience is what attracts more funding, Hodges says. And it's not just Europe when it comes to markets getting ahead. Texas can't compete with the likes of California, says Roxana Bekemohammadi, founder and executive director of US Hydrogen Alliance, especially when it comes to policy. The state has had legislation addressing zero-emission vehicles since 1989.

"California policies are unique beasts, and I like to explain this because it's really important when I talk to other state legislators," Bekemohammadi says, explaining that the state mandates action and has larger teams to put policy into place. "You're looking at such a mature industry, if you want to call it an industry, but it's really a policy institution."

The panelists agree on the obstacle of policy. Tanya Peacock, managing director of EcoEngineers, works directly with project developers looking for financing and investment funds and financiers looking for projects.

"Everybody is waiting for the guidance on the IRA 45V Production Tax Credit," she says. "I think that's really the game changer for the industry, but the uncertainty around how the credit is going to be implemented is what's holding back a lot of the investment at the moment."

Texas doesn't have state incentives, Shafer points out, but the work is easy to get done with the workforce in the region, so that's also a missed opportunity. Some other factors, he adds, include offtake and lack of debt providers. He says the demand hasn't been established yet to provide a good opportunity for offtake negotiations — it's a chicken and egg problem. Meanwhile, project finance tends to have a debt provider involved, but there aren't providers willing to underwrite debt hydrogen projects.

"One of the other big things is there seems to be a lack of middle capital to get smaller companies to get their projects more backed," Shafer continues his list. "People want to write the big checks. They don't want to write the small checks — and I think one of the reasons is they don't want to lose all their capital. There's no downside protection in this industry."

Perlman, who addressed the crowd in a presentation about Texas as a hydrogen hub earlier in the day, remains bullish on the city's future in the space. Last year, CHF and several other organizations worked together to create the plan for the HyVelocity Hub — and a pitch to receive U.S. Department of Energy Regional Clean Hydrogen Hub funding to make it a reality.

"What we want to do in Texas is jumpstart the market," Perlman says, adding that HyVelocity can help accomplish this goal. "This market can happen in Texas because we are the right place with the right resources. ... What we need to do as an industry is accelerate development."

These organizations are teaming up to advance development of a regional clean industrial hub. Photo by Katya Horner

Houston organizations announce new partner, plans for clean industrial hub

seeing green

Two Houston organizations that are on a mission to make Houston a leader in the energy transition have announced new plans for a hub focused on decarbonization.

The Houston Energy Transition Initiative and the Center for Houston’s Future have teamed up with the Mission Possible Partnership, with support from the Bezos Earth Fund, to lead the city of Houston through the accelerated development of a regional clean industrial hub geared at decarbonization of the industrial sector, including petrochemicals, cement plants, heavy transportation, and more.

The two-year project is focused on development and deployment of clean energy projects — such as "low-carbon hydrogen, carbon capture, use and storage, electrification of industrial processes, and the production and use of low carbon fuels," according to a press release.

“There is no geography in the world better positioned to support the transition to and integration of abundant, low-carbon energy solutions than Houston," says Jane Stricker, executive director and senior vice president of HETI, in the release. "As the Energy Transition Capital of the World, Houston is leveraging its energy leadership to accelerate global solutions for a low-carbon future. This partnership with MPP is a critical component in the region’s efforts to develop and deploy technologies, policies and strategies for broad decarbonization."

MPP, a nonprofit alliance of climate leaders launched in 2020 focused on energizing decarbonization, is supported by RMI, the Bezos Earth Fund, the Energy Transition Commission, World Economic Forum, and We Mean Business.

“The Center for Houston’s Future has been leading HETI’s clean hydrogen initiative with the goal of making Houston a global clean hydrogen leader," says Brett Perlman, CEO of the Center for Houston’s Future. "We’re now pleased to work with Mission Possible Project and leverage the MPP team’s deep subject matter expertise in clean hydrogen and experience in creating hydrogen ecosystems."

In October, HETI released a report calling for the region to aim for $150 billion in capital earmarked for the sector by 2040. The report indicated that about $15 billion in energy transition capital is flowing into the region each year and about $25 billion is flowing out of the region. Of the $25 billion, oil and gas players with headquarters or a significant presence in Houston account for more than 80 percent.

“Increased energy transition capital commitment from energy incumbents raises investor confidence in Houston’s potential for energy transition leadership,” reads the report.

The Center for Houston's Future had a report of its own that published earlier this year and makes the argument of how Houston-based assets can be leveraged to lead a global clean hydrogen innovation.

“It should come as no surprise that Houston, the energy capital of the world, is taking the lead in the emerging low emissions energy ecosystem,” says Bryan Fisher, director of hubs at MPP and managing director of RMI’s Climate-Aligned Industries, in the release. “MPP’s work with HETI and the Center for Houston’s Future will focus on a portfolio of solutions, including low carbon fuels, clean hydrogen, and CCUS to drive sustainability and equitable economic growth for the region.”

------

This article originally ran on InnovationMap.

Ad Placement 300x100
Ad Placement 300x600

CultureMap Emails are Awesome

Property Showcase

Danish renewable company’s largest solar project to power Texas grid, preserve prairie habitat

seeds planted

The largest solar project in the global portfolio of Danish renewable energy company Ørsted is now supplying power to the Electric Reliability Council of Texas (ERCOT) grid.

Ørsted, which maintains offices in Houston and Austin, just flipped the switch on its 468-megawatt Mockingbird Solar Center in Lamar County, which is northeast of Dallas-Fort Worth and directly south of the Texas-Oklahoma border. The $500 million project can produce enough power for 80,000 homes and businesses.

ERCOT provides power to more than 25 million Texas customers, representing 90 percent of the state’s electric load.

In conjunction with the solar project, Ørsted donated 953 acres to The Nature Conservancy to establish the Smiley Meadow Preserve. This area, adjacent to the Mockingbird facility, protects a tallgrass prairie habitat featuring more than 400 species of grasses and wildflowers. Accounting for land already owned by the conservancy, Smiley Meadow exceeds 1,000 acres.

“Through the power of partnership, Ørsted has helped The Nature Conservancy protect an irreplaceable landscape that might otherwise have been lost to development,” Suzanne Scott, The Nature Conservancy’s Texas state director, says in a news release.

Mockingbird Solar Center is part of Ørsted’s $20 billion investment in U.S. energy generation. With this project now online, Ørsted owns a portfolio of more than six gigawatts of onshore wind, solar, and battery storage projects that either are operating or are being built.

Fueling the future: Houston expert on how to build a workforce to meet America’s growing energy demands

guest column

U.S. energy consumption is projected to rise nearly 20 percent over the next decade — driven by advancements like AI, increasing electrification, and the growing demand for electric vehicles. While attention often centers on the technologies that generate power, the driver behind this transformation is the skilled workforce, which comprises men and women dedicated to enabling the nation's growth. Ensuring a steady supply of qualified workers is imperative for meeting the energy demands of the coming decade.

Developing this talent pipeline starts with a commitment to education. As the energy landscape evolves rapidly, educators play a crucial role in equipping the next generation with the skills to embrace new technologies and adapt to changing industry demands. This commitment to education is central to the Energy Education Foundation's (EEF) mission. It's also a cornerstone of EEF partner and board member, Coterra Energy's, efforts to be recognized as a leader in energy education.

At a recent Energy Education Exchange, hosted by Coterra and EEF, in collaboration with industry partners such as the American Petroleum Institute (API) and the Consumer Energy Alliance, over 50 educators and industry leaders gathered in Houston to address this need.

During the three-day event, educators, administrators, and industry professionals were immersed in the many facets of the oil and gas industry, learning best practices for incorporating energy education into their programs.

Educators experienced an in-depth tour of the San Jacinto College Center for Petrochemical, Energy, and Technology. As the largest petrochemical training facility in the Gulf Coast region, the center offered a unique look at industry-standard equipment, including a multifunctional glass pilot plant lab, a glycol distillation unit, and 35 specialized training labs. Participants engaged in demonstrations led by faculty and students, exploring circuits, on-campus refineries, and advanced machinery — essential experiences that bring classroom lessons to life.

The event also highlighted efforts at the high school level, exemplified by a presentation and tour at Energy Institute High School in Houston's historic Third Ward. The Institute showcased how project-based learning, robotics, and hands-on fabrication labs are shaping students' skills for the energy sector. The high school's mission aligns perfectly with EEF’s goals: sparking interest in energy among younger students, developing their skills, and paving a pathway toward lifelong careers in the industry.

API's "Lights On" reception concluded the first day, promoting networking among educators and industry professionals. By facilitating these connections, we are ensuring that educators learn about energy careers and establish ongoing relationships that can translate into opportunities for their students.

Keynotes throughout the exchange included Peter Beard, Senior Vice President of the Greater Houston Partnership, and Chris Menefee, President of Unit Drilling Company, who further emphasized the critical need for workforce development. Beard noted, "As our economy grows, we must ensure we have the electrons and the workforce to support that growth." He stressed that aligning skills with job requirements is more than just matching credentials; it's about upskilling and offering real career mobility.

Menefee echoed this sentiment, acknowledging the pressures on educators to prepare students for an ever-changing job market. He underscored his company's commitment to "quality over quantity" in hiring, prioritizing well-trained individuals, and emphasizing the value of strong foundational skills, which begin in the classroom, especially career and technology classrooms.

The Energy Day Festival in Houston provided an additional opportunity for educators and administrators to engage directly with the industry. Thousands attended, visiting booths set up by companies, trade groups, and educational institutions. EEF's own Mobile Energy Learning Units offered interactive exhibits designed to teach students of all ages about energy and career opportunities. The Units appearance at Energy Day was made possible by the American Petroleum Institute.

Looking forward, the U.S. must expand opportunities for the next generation of energy workers and provide educators with the necessary resources. The Energy Education Exchange is a significant step forward, but one initiative alone cannot shape an entire workforce. All stakeholders involved must invest in tools, training, and programs that empower educators and provide opportunities for students. As Domestic Policy Advisor Neera Tanden recently stated, "Apprenticeships are essential for advancing the economy and building critical skills."

It's time for a broader approach to ensure that the U.S. meets energy demands and leads the world in innovation and education. At the Energy Education Foundation, we are proud to be at the forefront of this mission, working alongside Coterra and other partners. By empowering educators, we empower the next generation—one that will fuel our nation's future. Together, we can build a workforce ready for the challenges ahead.

———

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

Houston to host cleantech collaboration with delegation from Belgium

this week

A delegation of nine startups from Antwerp, Belgium, along with industry experts will visit Houston from December 2 through December 6, which will include The Greater Houston Partnership, Greentown Labs, The Ion, and The Cannon.

The delegation will represent cleantech, sustainable chemistry, and energy tech sectors to engage with Houston’s energy transition ecosystem and identify collaboration and investment opportunities.

Houston-based energy tech-oriented companies will be invited to the pitching event for Antwerp and Houston Cleantech Entrepreneurs from 2 to 5 pm on December 3 at The Ion. Interested entrepreneurs can register at this link.

Antwerp and Houston are considered two of the world's largest petrochemical hubs, and also part of the leading innovators in the cleantech, sustainable chemistry, and energy tech sectors. The event will be organized by the Port of Antwerp-Bruges, BlueChem (an Antwerp-based sustainable chemistry incubator), the city of Antwerp, and Flanders Investment and Trade.

“Antwerp and Houston are known for their ports and petrochemical industries, but fewer people realize the remarkable cleantech, sustainable chemistry, and energytech ecosystems that have emerged around these hubs,” Nathalie Mathys, head of office at FIT Houston, says in a news release.

The Port of Antwerp-Bruges is known for innovating new technologies, which includes 5G, digital twins, artificial intelligence, drones, and advanced sensors. Antwerp has over 350 startups and nine incubators and accelerators.

“This delegation visit highlights the potential for collaboration between two of the most dynamic regions in these fields, paving the way for a cleaner, more sustainable future,” adds Mathys.

View All Listings