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New Rice study details how carbon capture could reduce AI data center emissions

by the numbers

A new report estimates that more than 90 percent of data center-related carbon dioxide emissions could potentially be mitigated through carbon capture and storage. Photo via Unsplash

A new study out of Rice University points to carbon capture and storage methods as pivotal solutions to addressing emissions from AI-driven data centers.

The study was authored by Hon Chung Lau, an adjunct professor in the Department of Chemical and Biomolecular Engineering at Rice University and founder of Low Carbon Energies LLC, and Steve C. Tsai, an energy transition consultant at Low Carbon Energies LLC, and published in the journal Energy & Fuels.

According to the study, U.S. data center power capacity could more than quadruple in five years, growing from 40 gigawatts in 2025 to 169 gigawatts by 2030. Without proper regulation of emissions, the report estimates that carbon dioxide produced by fossil-fuel power plants supplying electricity to data centers could grow at the same scale, increasing from 90 million metric tons to more than 404 million metric tons over the same time period.

The researchers analyzed publicly available data on announced U.S. data centers, which included energy sources, locations, and projected power capacity before estimating data center-related carbon emissions based on each state’s electricity mix. From there, they examined whether those emissions could be captured and stored underground in saline aquifers.

The team estimates that 34 states have enough saline aquifer storage capacity to store more than 100 years of projected data center-related carbon dioxide emissions beyond 2030. Aquifers could store an estimated 59 million metric tons of data center-related carbon dioxide, or about 66 percent of the sector’s emissions in 2025. However, that calculation could grow to 299 million metric tons, or about 74 percent of projected data center-related emissions by 2030.

The researchers found that more than 90 percent of data center-related carbon dioxide emissions could potentially be mitigated through carbon capture and storage when out-of-state storage options are included, even though they note that carbon capture isn’t the only solution.

“It does show that the geology exists to make a meaningful impact, especially in states where data center growth is strongest,” Lau said in a news release.

Rapid growth in states including Texas, Virginia, Pennsylvania, Ohio, Arizona, Colorado, Utah and Illinois was considered in the study. According to the findings, Texas would need to add 25 gigawatts of power capacity by 2030 to meet projected data center demand, as data centers require reliable electricity 24/7.

“Data centers are becoming one of the defining energy challenges of the AI era,” Lau added in the news release. “The question is not only whether we can build enough computing infrastructure, but whether we can power it in a way that is reliable, affordable and compatible with decarbonization goals.”

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Jane Stricker reflects on four years at HETI. Courtesy photo

Houston positioned to lead in Carbon Capture Utilization (CCU), study shows

The View From HETI

With global demand for energy production while lowering emissions continues to grow, Houston and the Gulf Coast region are uniquely positioned to lead with carbon capture, utilization and sequestration (CCUS). A new study developed by the Houston Energy Transition Initiative (HETI) in collaboration with Deloitte Consulting explores how the region can transform captured CO₂ into valuable products while supporting continued economic growth and industrial competitiveness.

Key takeaways from the report include:

Houston and the Gulf Coast are uniquely advantaged to utilize and store carbon.As a global hub for chemicals and refining industries, Houston has access to world-class infrastructure, a skilled workforce, and access to global markets. The region also has one of the nation’s highest concentrations of industrial CO2 and creates the opportunity to capture waste material streams to deliver lower carbon intensity products that continue to deliver economic benefits to the region.

While carbon capture and sequestration (CCS) projects continue to advance, CCU requires coordinated action across policy, infrastructure, technology and market demand to scale successfully. Utilization and sequestration are complementary strategies that support and protect investment deployments. CCS acts as an early foundation while markets and infrastructure evolve toward broader CO₂ utilization, and CCU is essential to developing low-carbon-intensity value chains and products.

“Our collaboration with Deloitte highlights how Houston and the Gulf Coast continue to build on the strengths that have long made our region an energy leader. Houston’s infrastructure, workforce, and industrial ecosystem uniquely position the region to scale CCU,” said Jane Stricker, Senior Vice President, Energy Transition, and Executive Director of HETI. “With supportive policy, continued innovation, and strong industry partnerships, we can accelerate CCU deployment, create new low-carbon value chains, and ensure Houston remains at the forefront of the global energy transition.”

Download the full report here.

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This article originally appeared on the Greater Houston Partnership's Houston Energy Transition Initiative blog. HETI exists to support Houston's future as an energy leader. For more information about the Houston Energy Transition Initiative, EnergyCapitalHTX's presenting sponsor, visit htxenergytransition.org.
This move could help the U.S. cut emissions while staying competitive in the global energy game. Image via Getty Images

What EPA’s carbon capture and storage permitting announcement means for Texas

The View From HETI

Earlier this month, Texas was granted authority by the federal government for permitting carbon capture and storage (CCS) projects. This move could help the U.S. cut emissions while staying competitive in the global energy game.

In June, the U.S. Environmental Protection Agency (EPA) proposed approving Texas’ request for permitting authority under the Safe Drinking Water Act (SDWA) for Class VI underground injection wells for carbon capture and storage (CCS) in the state under a process called “primacy.” The State of Texas already has permitting authority for other injection wells (Classes I-V). In November, the EPA announced final approval of Texas’ primacy request.

Why This Matters for Texas

Texas is the headquarters for virtually every segment of the energy industry. According to the U.S. Energy Information Administration, Texas is the top crude oil- and natural-gas producing state in the nation. The state has more crude oil refineries and refining capacity than any other state in the nation. Texas produces more electricity than any other state, and the demand for electricity will grow with the development of data centers and artificial intelligence (AI). Simply put, Texas is the backbone of the nation’s energy security and competitiveness. For the nation’s economic competitiveness, it is important that Texas continue to produce more energy with less emissions. CCS is widely regarded as necessary to continue to lower the emissions intensity of the U.S. industrial sector for critical products including power generation, refining, chemicals, steel, cement and other products that our country and world demand.

The Greater Houston Partnership’s Houston Energy Transition Initiative (HETI) has supported efforts to bring CCUS to a broader commercial scale since the initiative’s inception.

“Texas is uniquely positioned to deploy CCUS at scale, with world-class geology, a skilled workforce, and strong infrastructure. We applaud the EPA for granting Texas the authority to permit wells for CCUS, which we believe will result in safe and efficient permitting while advancing technologies that strengthen Texas’ leadership in the global energy market,” said Jane Stricker, Executive Director of HETI and Senior Vice President, Energy Transition at the Greater Houston Partnership.

What is Primacy, and Why is it Important?

Primacy grants permitting authority for Class VI wells for CCS to the Texas Railroad Commission instead of the EPA. Texas is required to follow the same strict standards the EPA uses. The EPA has reviewed Texas’ application and determined it meets those requirements.

Research suggests that Texas has strong geological formations for CO2 storage, a world-class, highly skilled workforce, and robust infrastructure primed for the deployment of CCS. However, federal permitting delays are stalling billions of dollars of private sector investment. There are currently 257 applications under review, nearly one-quarter of which are located in Texas, with some applications surpassing the EPA’s target review period of 24 months. This creates uncertainty for developers and investors and keeps thousands of potential jobs out of reach. By transferring permitting to the state, Texas will apply local resources to issue Class VI permits across the states in a timely manner.

Texas joins North Dakota, Wyoming, Louisiana, West Virginia and Arizona with the authority for regulating Class VI wells.

Is CCS safe?

A 2025 study by Texas A&M University reviewed operational history and academic literature on CCS in the United States. The study analyzed common concerns related to CCS efficacy and safety and found that CCS reduces pollutants including carbon dioxide, particulate matter, sulfur oxides and nitrogen oxides. The research found that the risks of CCS present a low probability of impacting human life and can be effectively managed through existing state and federal regulations and technical monitoring and safety protocols.

What’s Next?

The final rule granting Texas’ primacy will become effective 30 days after publication in the Federal Register. Once in effect, the Texas Railroad Commission will be responsible for permitting wells for carbon capture, use and storage and enforcing their safe operation.

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This article originally ran on the Greater Houston Partnership's Houston Energy Transition Initiative blog. HETI exists to support Houston's future as an energy leader. For more information about the Houston Energy Transition Initiative, EnergyCapitalHTX's presenting sponsor, visit htxenergytransition.org.

Greenhouse gases continue to rise, and the challenges they pose are not going away. Photo via Getty Images

Houston energy expert: How the U.S. can turn carbon into growth

Guets Column

For the past 40 years, climate policy has often felt like two steps forward, one step back. Regulations shift with politics, incentives get diluted, and long-term aspirations like net-zero by 2050 seem increasingly out of reach. Yet greenhouse gases continue to rise, and the challenges they pose are not going away.

This matters because the costs are real. Extreme weather is already straining U.S. power grids, damaging homes, and disrupting supply chains. Communities are spending more on recovery while businesses face rising risks to operations and assets. So, how can the U.S. prepare and respond?

The Baker Institute Center for Energy Studies (CES) points to two complementary strategies. First, invest in large-scale public adaptation to protect communities and infrastructure. Second, reframe carbon as a resource, not just a waste stream to be reduced.

Why Focusing on Emissions Alone Falls Short

Peter Hartley argues that decades of global efforts to curb emissions have done little to slow the rise of CO₂. International cooperation is difficult, the costs are felt immediately, and the technologies needed are often expensive. Emissions reduction has been the central policy tool for decades, and it has been neither sufficient nor effective.

One practical response is adaptation, which means preparing for climate impacts we can’t avoid. Some of these measures are private, taken by households or businesses to reduce their own risks, such as farmers shifting crop types, property owners installing fire-resistant materials, or families improving insulation. Others are public goods that require policy action. These include building stronger levees and flood defenses, reinforcing power grids, upgrading water systems, revising building codes, and planning for wildfire risks. Such efforts protect people today while reducing long-term costs, and they work regardless of the source of extreme weather. Adaptation also does not depend on global consensus; each country, state, or city can act in its own interest. Many of these measures even deliver benefits beyond weather resilience, such as stronger infrastructure and improved security against broader threats.

McKinsey research reinforces this logic. Without a rapid scale-up of climate adaptation, the U.S. will face serious socioeconomic risks. These include damage to infrastructure and property from storms, floods, and heat waves, as well as greater stress on vulnerable populations and disrupted supply chains.

Making Carbon Work for Us

While adaptation addresses immediate risks, Ken Medlock points to a longer-term opportunity: turning carbon into value.

Carbon can serve as a building block for advanced materials in construction, transportation, power transmission, and agriculture. Biochar to improve soils, carbon composites for stronger and lighter products, and next-generation fuels are all examples. As Ken points out, carbon-to-value strategies can extend into construction and infrastructure. Beyond creating new markets, carbon conversion could deliver lighter and more resilient materials, helping the U.S. build infrastructure that is stronger, longer-lasting, and better able to withstand climate stress.

A carbon-to-value economy can help the U.S. strengthen its manufacturing base and position itself as a global supplier of advanced materials.

These solutions are not yet economic at scale, but smart policies can change that. Expanding the 45Q tax credit to cover carbon use in materials, funding research at DOE labs and universities, and supporting early markets would help create the conditions for growth.

Conclusion

Instead of choosing between “doing nothing” and “net zero at any cost,” we need a third approach that invests in both climate resilience and carbon conversion.

Public adaptation strengthens and improves the infrastructure we rely on every day, including levees, power grids, water systems, and building standards that protect communities from climate shocks. Carbon-to-value strategies can complement these efforts by creating lighter, more resilient carbon-based infrastructure.

CES suggests this combination is a pragmatic way forward. As Peter emphasizes, adaptation works because it is in each nation’s self-interest. And as Ken reminds us, “The U.S. has a comparative advantage in carbon. Leveraging it to its fullest extent puts the U.S. in a position of strength now and well into the future.”

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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 appeared on LinkedIn.

Chevron plans to launch its first AI data center power project in West Texas in 2027. Photo via Chevron.com

Chevron and ExxonMobil feed the need for gas-powered data centers

data center demand

Two of the Houston area’s oil and gas goliaths, Chevron and ExxonMobil, are duking it out in the emerging market for natural gas-powered data centers—centers that would ease the burden on electric grids.

Chevron said it’s negotiating with an unnamed company to supply natural gas-generated power for the data center industry, whose energy consumption is soaring mostly due to AI. The power would come from a 2.5-gigawatt plant that Chevron plans to build in West Texas. The company says the plant could eventually accommodate 5 gigawatts of power generation.

The Chevron plant is expected to come online in 2027. A final decision on investing in the plant will be made next year, Jeff Gustavson, vice president of Chevron’s low-carbon energy business, said at a recent gathering for investors.

“Demand for gas is expected to grow even faster than for oil, including the critical role gas will play [in] providing the energy backbone for data centers and advanced computing,” Gustavson said.

In January, the company’s Chevron USA subsidiary unveiled a partnership with investment firm Engine No. 1 and energy equipment manufacturer GE Vernova to develop large-scale natural gas power plants co-located with data centers.

The plants will feature behind-the-meter energy generation and storage systems on the customer side of the electricity meter, meaning they supply power directly to a customer without being connected to an electric grid. The venture is expected to start delivering power by the end of 2027.

Chevron rival ExxonMobil is focusing on data centers in a slightly different way.

ExxonMobil Chairman and CEO Darren Woods said the company aims to enable the capture of more than 90 percent of emissions from data centers. The company would achieve this by building natural gas plants that incorporate carbon capture and storage technology. These plants would “bring a unique advantage” to the power market for data centers, Woods said.

“In the near to medium term, we are probably the only realistic game in town to accomplish that,” he said during ExxonMobil’s third-quarter earnings call. “I think we can do it pretty effectively.”

Woods said ExxonMobil is in advanced talks with hyperscalers, or large-scale providers of cloud computing services, to equip their data centers with low-carbon energy.

“We will see what gets translated into actual contracts and then into construction,” he said.

Carbon Clean's modular columnless carbon capture unit, CycloneCC. Photo courtesy Carbon Clean.

Houston companies partner to advance industrial carbon capture tech

green team

Carbon Clean and Samsung E&A, both of which maintain their U.S. headquarters in Houston, have formed a partnership to accelerate the global use of industrial carbon capture systems.

Carbon Clean provides industrial carbon capture technology. Samsung E&A offers engineering, construction and procurement services. The companies say their partnership will speed up industrial decarbonization and make carbon capture more accessible for sectors that face challenges in decarbonizing their operations.

Carbon Clean says its fully modular columnless carbon capture unit, known as CycloneCC, is up to 50 percent smaller than traditional units and each "train" can capture up to 100,000 tonnes of CO2 per year.

“Our partnership with Samsung E&A marks a major milestone in scaling industrial carbon capture,” Aniruddha Sharma, chair and CEO of Carbon Clean, said in a news release.

Hong Namkoong, CEO of Samsung E&A, added that the partnership with Carbon Clean will accelerate the global rollout of carbon capture systems that “are efficient, reliable, and ready for the energy transition.”

Carbon Clean and Samsung E&A had previously worked together on carbon capture projects for Aramco, an oil and gas giant, and Modec, a supplier of floating production systems for offshore oil and gas facilities. Aramco’s Americas headquarters is also in Houston, as is Modec’s U.S. headquarters.

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Energy AI startup chooses Houston for first U.S. office after $20M raise

welcome to houston

London-based AI firm Applied Computing has announced a $20 million Series A round and a new office in Houston.

The new Bayou City office is Applied Computing’s first in the United States and part of its North American expansion. The company is known for its Orbital AI platform, which is tailored for energy operations.

The funding round was led by Houston-based KBR Inc., with participation from San Francisco-based Databricks Ventures. KBR’s investment was first announced in March.

KBR and Applied Computing have also entered into a multi-year agreement to deliver exclusive AI products for the energy sector. KBR already has integrated Orbital into its INSITE 3.0 platform for energy projects, and is also using the product for ammonia production.

Applied Computing’s Orbital platform combines physics-grounded intelligence with models across chemical engineering, time-series forecasting and language, according to the company. The system analyzes sensor readings and can recognize a facility’s equipment constraints and operator activity. The platform can also allow technicians to run simulations of how a change to a facility could affect the rest of its operations.

According to TechCrunch, Applied Computing will use the $20 million to further explore projects and deployments with the energy sector, hire engineering and research positions, and continue to expand internationally, potentially into the Middle East.

The company is also working on deals with a major U.S. stream operator, TechCrunch reports. And Applied Computing shared on LinkedIn that it plans to announce its first partnership with a major European oil company in the coming weeks.

“Yesterday we showed Orbital live in deployments at our demo day at the Energy Institute in London,” Callum Adamson, CEO and co-founder of Applied Computing, posted on LinkedIn on July 16. “Today, we're announcing the capital to scale it globally as well as the launch of our new offices in Houston and Bangalore. In the weeks following, there will be more announcements on our progress, partnerships and deployments.”

The company opened its Bangalore offices in December.

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This article originally appeared on our sister site, InnovationMap.com.

Automakers enter the energy space with vehicles offering backup power

Power Boost

Winter Storm Uri, the multiday freeze that slammed Texas in February 2021 and pummeled the state's power grid, has been on Kenneth Kovar's mind ever since. Though the resident of New Braunfels didn't lose power at the time, he wasn't able to run his septic tank — it is independent from local systems. He had to fill his toilets with water from his backyard pool.

So when Kovar, 64, bought a Ford F-150 last fall, his hope was to be better prepared for any new crisis.

“I was interested in trying to find some sort of power backup situation,” he said.

Now, Kovar has a setup from Ford that allows drivers of certain F-150 models to plug their vehicle directly into their electric meter to power parts of their home during an outage.

It is the latest example of automakers broadly adapting their electrification technologies to the home energy business, especially as demand on the grid increases and sales of electric vehicles slow. Car companies are looking to leverage their multibillion dollar EV investments to tap into a promising market in vehicle, home and grid technology, both for backup power and for supporting electrical grid resiliency.

“They’re trying to look for other businesses that they might sell into,” said Parth Vaishnav, assistant professor of sustainable systems at the University of Michigan.

Ford's latest connects F-150 drivers to their meter

Drivers of the F-150 PowerBoost hybrid and F-150 Lightning electric pickup trucks can now plug in a one-foot long adapter to a 240-volt outlet onboard. That adapter — which Ford made with company Global Power Products — makes the vehicle compatible to plug into a longer, separate cable. That cable connects to a transfer switch installed directly on one's electric meter.

Through the adapter and cable series, homeowners can connect their vehicle essentially right to their home’s breaker box. The homeowner simply turns on and off which breaker switches they want for which devices they want powered.

“The way we think about it, especially for customers who already have a compatible vehicle is, you already own the power source, it’s in your driveway,” said Amanda Roraff, Ford's grid and energy services business acceleration lead.

The Lightning might provide power for two to three days, depending on what home devices are being used, and the PowerBoost Hybrid, up to five days on a single tank of gas.

The automaker says its solution is a less expensive way to supply backup power. Conventional, diesel-powered portable generators and full-home standby setups require expensive installation, costing several thousands of dollars. This solution, which also requires professional installation at the meter, starts around $1,100.

The setup only applies to about 200,000 vehicles so far, and it is also exclusively for outages. Ford also offers its Home Integration System for bidirectionality, sending power both from the vehicle to the home and from the home to the vehicle, while also being able to feed the grid.

Other automakers are boosting their energy solutions

Over 630,000 U.S. vehicles already have this functionality, estimates say, and automakers are rapidly expanding their available options with the goal of full vehicle-to-grid support in the long run.

South Korean auto brand Kia and Wallbox, an EV charging company, have teamed up so that drivers of eligible compatible vehicles can have home power backup during outages or during periods of high demand, to cut their utility use. They can send power back to the grid.

Tesla’s technology is similar — allowing drivers of equipped vehicles to connect to their home using additional Tesla hardware. The Cybertruck provides full vehicle-to-home capability, where other Tesla models can only connect to and power specific devices or appliances.

General Motors is also in the energy space.

A recent partnership with WeaveGrid, for instance, allows homeowners who drive certain GM EVs — and have the automaker’s home system and a proper grid interconnection — to enroll in some grid reliability utility programs. Once an outage is detected, GM’s vehicle-to-home tech has the capability to disconnect one's home from the grid and start supplying power from their GM EV.

“If you can imagine the future as we go forward, it's having the ability — now that we have this single platform — that allows our customer to experience our system,” said Wade Sheffer, vice president of GM energy, “but also can have the full control of the energy.”

The capability is an important lifeline amid EV sales slowdown

Not only is this business critical amid growing grid demand and increasing power outages, experts say automakers need to pivot with the EV market less active under current U.S. federal policy. Pure EV sales in the U.S. year-over-year are down 23.8%, according to a July Cox Automotive report on the first half of 2026. This demonstrates what an asset that EV and hybrid ownership can be.

The tech is not without challenges.

On the industry side, these systems have to undergo third-party testing to ensure they meet safety standards, and the vehicle and the charger need to be programmed to communicate. It also requires the approval of the utility where the capability is being used. It could take years to get an interconnect agreement.

On the customer side, homeowners need to understand their vehicles' abilities and how to self-manage their system. It also just brings another generator of power into the home mix.

Still, experts see opportunity, especially with interest in EV sales high outside of the U.S.

“We already know during an outage, its impact, providing electricity to the home,” said Scott Samuelsen, engineering professor emeritus at the University of California, Irvine. “This is going to become very, very popular.”

Rice, UH join major quantum, nuclear energy initiatives

energy impact

Rice University and the University of Houston will be playing a part in the future of energy in Texas and beyond, as Rice has joined the U.S. Department of Energy Quantum Science Center and UH has been added to the Texas Nuclear Alliance.

Rice’s role with the DOE Quantum Science Center will expand the university’s work in helping to develop “fault-tolerant quantum computers capable of solving scientific problems,” according to Rice. Tirthak Patel, an assistant professor of computer science, will develop and evaluate quantum error-correction decoding methods on high-performance computing platforms. Patel’s team will receive $900,000 over 5 years from a DOE-funded center at Oak Ridge National Laboratory.

The Quantum Science Center was established in 2020 under the National Quantum Initiative Act, and brings together national laboratories, universities and industry partners like IBM, AMD, IQM, Quantinuum and Riverlane, and others to advance quantum information science. The Quantum Science Center is one of the DOE’s five National Quantum Information Science Research Centers, and has planned funding of $125 million over 5 years.

“Reliable error correction is one of the biggest challenges in making quantum computing useful for accelerating scientific discovery,” Patel said in a news release. “Our work is focused on developing methods that can scale to future systems and support practical scientific applications.”

Meanwhile, as power demand continues to rise in Texas and North America, the Texas Nuclear Alliance brings industry, academic, and government leaders together to advance nuclear technologies to meet growing energy demands, support economic efforts, bolster domestic manufacturing, and protect overall energy security.

UH brings expertise to the Texas Nuclear Alliance from UH Energy, the Texas Center for Superconductivity at UH (TcSUH), and the Advanced Manufacturing Institute (AMI). UH says that 11 of its 16 colleges will contribute research to the alliance.

“Texas and the University of Houston have long led the nation in energy innovation and research,” Ramanan Krishnamoorti, vice president of energy and innovation, said in a news release. “As demand for reliable, affordable and secure energy continues to grow, advanced nuclear technologies will become increasingly important. The University of Houston is uniquely positioned to contribute through world-class research and deep industry partnerships that help transform breakthrough discoveries into real-world solutions. We look forward to working with the Texas Nuclear Alliance to accelerate technologies that will shape the future of the energy industry.”

Projects from both Rice and UH were selected this week to participate in the DOE's Genesis Mission. Read more here.

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