The deal will enable transportation of ExxonMobil’s low-carbon hydrogen through Air Liquide’s pipeline network. Photo via exxonmobil.com

Spring-based energy giant ExxonMobil has enlisted Air Liquide as a partner for what’s being billed as the world’s largest low-carbon hydrogen project.

The deal will enable transportation of ExxonMobil’s low-carbon hydrogen through Air Liquide’s pipeline network. Furthermore, Air Liquide will build and operate four units to supply 9,000 metric tons of oxygen and up to 6,500 metric tons of nitrogen each day for the ExxonMobil project.

Air Liquide’s U.S. headquarters is in Houston.

ExxonMobil’s hydrogen production facility is planned for the company’s 3,400-acre Baytown refining and petrochemical complex. The project is expected to produce 1 billion cubic feet of low-carbon hydrogen daily from natural gas and more than 1 million tons of low-carbon ammonia annually while capturing more than 98 percent of the associated carbon emissions.

“Momentum continues to build for the world’s largest low-carbon hydrogen project and the emerging hydrogen market,” Dan Ammann, president of ExxonMobil Low Carbon Solutions, says in a news release.

The hydrogen project is expected to come online in 2027 or 2028.

ExxonMobil says using hydrogen to fuel its olefins plant at Baytown could reduce sitewide carbon emissions by as much as 30 percent. Meanwhile, the carbon capture and storage (CSUS) component of the project would be capable of storing 10 million metric tons of carbon each year, the company says.

Two Rice University researchers just received DOE funding for carbon storage research. Photo by Gustavo Raskosky/Rice University

Research team lands DOE grant to investigate carbon storage in soil

planting climate change impact

Two researchers at Rice University are digging into how soil is formed with hopes to better understand carbon storage and potential new methods for combating climate change.

Backed by a three-year grant from the Department of Energy, the research is led by Mark Torres, an assistant professor of Earth, environmental and planetary sciences; and Evan Ramos, a postdoctoral fellow in the Torres lab. Co-investigators include professors and scientists with the Brown University, University of Massachusetts Amherst and Lawrence Berkeley National Laboratory.

According to a release from Rice, the team aims to investigate the processes that allow soil to store roughly three times as much carbon as organic matter compared to Earth's atmosphere.

“Maybe there’s a way to harness Earth’s natural mechanisms of sequestering carbon to combat climate change,” Torres said in a statement. “But to do that, we first have to understand how soils actually work.”

The team will analyze samples collected from different areas of the East River watershed in Colorado. Prior research has shown that rivers have been great resources for investigating chemical reactions that have taken place as soil is formed. Additionally, research supports that "clay plays a role in storing carbon derived from organic sources," according to Rice.

"We want to know when and how clay minerals form because they’re these big, platy, flat minerals with a high surface area that basically shield the organic carbon in the soil," Ramos said in the statement. "We think they protect that organic carbon from breakdown and allow it to grow in abundance.”

Additionally, the researchers plan to create a model that better quantifies the stabilization of organic carbon over time. According to Torres, the model could provide a basis for predicting carbon dioxide changes in Earth's atmosphere.

"We’re trying to understand what keeps carbon in soils, so we can get better at factoring in their role in climate models and render predictions of carbon dioxide changes in the atmosphere more detailed and accurate,” Torres explained in the statement.

The DOE and Rice have partnered on a number of projects related to the energy transition in recent months. Last week, Rice announced that it would host the Carbon Management Community Summit this fall, sponsored by the DOE, and in partnership with the city of Houston and climate change-focused multimedia company Climate Now.

In July the DOE announced $100 million in funding for its SCALEUP program at an event for more than 100 energy innovators at the university.

Rice also recently opened its 250,000-square-foot Ralph S. O’Connor Building for Engineering and Science. The state-of-the-art facility is the new home for four key research areas at Rice: advanced materials, quantum science and computing, urban research and innovation, and the energy transition.

The world can't keep on with what it's doing and expect to reach its goals when it comes to climate change. Radical innovations are needed at this point, writes Scott Nyquist. Photo via Getty Images

Only radical innovation can get the world to its climate goals, says this Houston expert

guest column

Almost 3 years ago, McKinsey published a report arguing that limiting global temperature rises to 1.5 degrees Celsius above pre-industrial levels was “technically achievable,” but that the “math is daunting.” Indeed, when the 1.5°C figure was agreed to at the 2015 Paris climate conference, the assumption was that emissions would peak before 2025, and then fall 43 percent by 2030.

Given that 2022 saw the highest emissions ever—36.8 gigatons—the math is now more daunting still: cuts would need to be greater, and faster, than envisioned in Paris. Perhaps that is why the Intergovernmental Panel on Climate Change (IPCC) noted March 20 (with “high confidence”) that it was “likely that warming will exceed 1.5°C during the 21st century.”

I agree with that gloomy assessment. Given the rate of progress so far, 1.5°C looks all but impossible. That puts me in the company of people like Bill Gates; the Economist; the Australian Academy of Science, and apparently many IPCC scientists. McKinsey has estimated that even if all countries deliver on their net zero commitments, temperatures will likely be 1.7°C higher in 2100.

In October, the UN Environment Program argued that there was “no credible pathway to 1.5°C in place” and called for “an urgent system-wide transformation” to change the trajectory. Among the changes it considers necessary: carbon taxes, land use reform, dietary changes in which individuals “consume food for environmental sustainability and carbon reduction,” investment of $4 trillion to $6 trillion a year; applying current technology to all new buildings; no new fossil fuel infrastructure. And so on.

Let’s assume that the UNEP is right. What are the chances of all this happening in the next few years? Or, indeed, any of it? President Obama’s former science adviser, Daniel Schrag, put it this way: “ Who believes that we can halve global emissions by 2030?... It’s so far from reality that it’s kind of absurd.”

Having a goal is useful, concentrating minds and organizing effort. And I think that has been the case with 1.5°C, or recent commitments to get to net zero. Targets create a sense of urgency that has led to real progress on decarbonization.

The 2020 McKinsey report set out how to get on the 1.5°C pathway, and was careful to note that this was not a description of probability or reality but “a picture of a world that could be.” Three years later, that “world that could be” looks even more remote.

Consider the United States, the world’s second-largest emitter. In 2021, 79 percent of primary energy demand (see chart) was met by fossil fuels, about the same as a decade before. Globally, the figures are similar, with renewables accounting for just 12.5 percent of consumption and low-emissions nuclear another 4 percent. Those numbers would have to basically reverse in the next decade or so to get on track. I don’t see how that can happen.

No alt text provided for this image

Credit: Energy Information Administration

But even if 1.5°C is improbable in the short term, that doesn’t mean that missing the target won’t have consequences. And it certainly doesn’t mean giving up on addressing climate change. And in fact, there are some positive trends. Many companies are developing comprehensive plans for achieving net-zero emissions and are making those plans part of their long-term strategy. Moreover, while global emissions grew 0.9 percent in 2022, that was much less than GDP growth (3.2 percent). It’s worth noting, too, that much of the increase came from switching from gas to coal in response to the Russian invasion of Ukraine; that is the kind of supply shock that can be reversed. The point is that growth and emissions no longer move in lockstep; rather the opposite. That is critical because poorer countries are never going to take serious climate action if they believe it threatens their future prosperity.

Another implication is that limiting emissions means addressing the use of fossil fuels. As noted, even with the substantial rise in the use of renewables, coal, gas, and oil are still the core of the global energy system. They cannot be wished away. Perhaps it is time to think differently—that is, making fossil fuels more emissions efficient, by using carbon capture or other technologies; cutting methane emissions; and electrifying oil and gas operations. This is not popular among many climate advocates, who would prefer to see fossil fuels “stay in the ground.” That just isn’t happening. The much likelier scenario is that they are gradually displaced. McKinsey projects peak oil demand later this decade, for example, and for gas, maybe sometime in the late 2030s. Even after the peak, though, oil and gas will still be important for decades.

Second, in the longer term, it may be possible to get back onto 1.5°C if, in addition to reducing emissions, we actually remove them from the atmosphere, in the form of “negative emissions,” such as direct air capture and bioenergy with carbon capture and storage in power and heavy industry. The IPCC itself assumed negative emissions would play a major role in reaching the 1.5°C target; in fact, because of cost and deployment problems, it’s been tiny.

Finally, as I have argued before, it’s hard to see how we limit warming even to 2°C without more nuclear power, which can provide low-emissions energy 24/7, and is the largest single source of such power right now.

None of these things is particularly popular; none get the publicity of things like a cool new electric truck or an offshore wind farm (of which two are operating now in the United States, generating enough power for about 20,000 homes; another 40 are in development). And we cannot assume fast development of offshore wind. NIMBY concerns have already derailed some high-profile projects, and are also emerging in regard to land-based wind farms.

Carbon capture, negative emissions, and nuclear will have to face NIMBY, too. But they all have the potential to move the needle on emissions. Think of the potential if fast-growing India and China, for example, were to develop an assembly line of small nuclear reactors. Of course, the economics have to make sense—something that is true for all climate-change technologies.

And as the UN points out, there needs to be progress on other issues, such as food, buildings, and finance. I don’t think we can assume that such progress will happen on a massive scale in the next few years; the actual record since Paris demonstrates the opposite. That is troubling: the IPCC notes that the risks of abrupt and damaging impacts, such as flooding and crop yields, rise “with every increment of global warming.” But it is the reality.

There is one way to get us to 1.5°C, although not in the Paris timeframe: a radical acceleration of innovation. The approaches being scaled now, such as wind, solar, and batteries, are the same ideas that were being discussed 30 years ago. We are benefiting from long-term, incremental improvements, not disruptive innovation. To move the ball down the field quickly, though, we need to complete a Hail Mary pass.

It’s a long shot. But we’re entering an era of accelerated innovation, driven by advanced computing, artificial intelligence, and machine learning that could narrow the odds. For example, could carbon nanotubes displace demand for high-emissions steel? Might it be possible to store carbon deep in the ocean? Could geo-engineering bend the curve?

I believe that, on the whole, the world is serious about climate change. I am certain that the energy transition is happening. But I don’t think we are anywhere near to being on track to hit the 1.5°C target. And I don’t see how doing more of the same will get us there.

------

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.

In M&A news, Buckeye Partners has acquired a carbon capture and storage company from Oklahoma. Photo via Getty Images

Houston energy services company acquires carbon capture, storage biz

M&A Moves

Another Houston energy company has announced an acquisition in the carbon capture space.

Buckeye Partners, a Houston-headquartered energy infrastructure and logistics provider, announced this week that it has acquired Oklahoma City-based Elysian Carbon Management from EnCap Flatrock Midstream. The terms of the deal were not disclosed.

Elysian, founded in 2018, secured an initial capital commitment of $350 million from EnCap Flatrock Midstream in 2021. The company's technology includes end-to-end carbon capture and storage solutions.

“This acquisition reflects Buckeye’s commitment to continue to provide essential infrastructure and logistics solutions to meet our customers’ evolving needs in the energy transition,” say Buckeye CEO Todd Russo in a news release. “Rapidly developing CCS-related technologies and solutions offer abundant synergies across Buckeye’s project development capabilities and existing pipeline network and are essential to enabling the energy transition’s success."

With the acquisition, Russo continues, the Elysian team will join the Buckeye platform to integrate the two companies' expertise. Per the release, Buckeye hopes to become a net-zero energy business by 2040, across scope 1 and 2 GHG emissions.

“Buckeye continues to demonstrate resiliency and emissions-reduction results across its increasingly diversified energy solutions portfolio,” says Elysian CEO Bret Logue in the release. “We’re fully aligned with their decarbonization mission and look forward to adding immediate value to Buckeye’s customer base and their momentum in the energy transition by integrating CCS technologies across the energy value chain.”

Less than a week before Buckey's M&A news, ExxonMobil announced its acquisition of a carbon capture company in a $4.9 billion deal.

Ad Placement 300x100
Ad Placement 300x600

CultureMap Emails are Awesome

Houston's hydrogen revolution gets up to $1.2B federal boost to power Gulf Coast’s clean energy future

HyVelocity funding

The emerging low-carbon hydrogen ecosystem in Houston and along the Texas Gulf Coast is getting as much as a $1.2 billion lift from the federal government.

The U.S. Department of Energy funding, announced November 20, is earmarked for the new HyVelocity Hub. The hub — backed by energy companies, schools, nonprofits, and other organizations — will serve the country’s biggest hydrogen-producing area. The region earns that status thanks to more than 1,000 miles of dedicated hydrogen pipelines and almost 50 hydrogen production plants.

“The HyVelocity Hub demonstrates the power of collaboration in catalyzing economic growth and creating value for communities as we build a regional hydrogen economy that delivers benefits to Gulf Coast communities,” says Paula Gant, president and CEO of Des Plaines, Illinois-based GTI Energy, which is administering the hub.

HyVelocity, which aims to become the largest hydrogen hub in the country, has already received about $22 million of the $1.2 billion in federal funding to kickstart the project.

Organizers of the hydrogen project include:

  • Arlington, Virginia-based AES Corp.
  • Air Liquide, whose U.S. headquarters is in Houston
  • Chevron, which is moving its headquarters to Houston
  • Spring-based ExxonMobil
  • Lake Mary, Florida-based Mitsubishi Power Americas
  • Denmark-based Ørsted
  • Center for Houston’s Future
  • Houston Advanced Research Center
  • University of Texas at Austin

The hub’s primary contractor is HyVelocity LLC. The company says the hub could reduce carbon dioxide emissions by up to seven million metric tons per year and create as many as 45,000 over the life of the project.

HyVelocity is looking at several locations in the Houston area and along the Gulf Coast for large-scale production of hydrogen. The process will rely on water from electrolysis along with natural gas from carbon capture and storage. To improve distribution and lower storage costs, the hub envisions creating a hydrogen pipeline system.

Clean hydrogen generated by the hub will help power fuel-cell electric trucks, factories, ammonia plants, refineries, petrochemical facilities, and marine fuel operations.

CenterPoint’s Greater Houston Resiliency Initiative makes advancements on progress

step by step

CenterPoint Energy has released the first of its public progress updates on the actions being taken throughout the Greater Houston 12-county area, which is part of Phase Two of its Greater Houston Resiliency Initiative.

The GHRI Phase Two will lead to more than 125 million fewer outage minutes annually, according to CenterPoint.

According to CenterPoint, they have installed around 4,600 storm-resilient poles, installed more than 100 miles of power lines underground, cleared more than 800 miles of hazardous vegetation to improve reliability, and installed more self-healing automation all during the first two months of the program in preparation for the 2025 hurricane season.

"This summer, we accomplished a significant level of increased system hardening in the first phase of the Greater Houston Resilience Initiative,” Darin Carroll, senior vice president of CenterPoint Energy's Electric Business, says in a news release.

”Since then, as we have been fully engaged in delivering the additional set of actions in our second phase of GHRI, we continue to make significant progress as we work toward our ultimate goal of becoming the most resilient coastal grid in the country,” he continues.

The GHRI is a series of actions to “ strengthen resilience, enable a self-healing grid and reduce the duration and impact of power outages” according to a news release. The following progress through early November include:

The second phase of GHRI will run through May 31, 2025. During this time, CenterPoint teams will be installing 4,500 automated reliability devices to minimize sustained interruptions during major storms, reduce restoration times, and establish a network of 100 new weather monitoring stations. CenterPoint plans to complete each of these actions before the start of the next hurricane season.

“Now, and in the months to come, we will remain laser-focused on completing these critical resiliency actions and building the more reliable and more resilient energy system our customers expect and deserve," Carroll adds.

CenterPoint also announced that it has completed all 42 of the critical actions the company committed to taking in the aftermath of Hurricane Beryl. Some of the actions were trimming or removing higher-risk vegetation from more than 2,000 power line miles, installing more than 1,100 more storm-resilient poles, installing over 300 automated devices to reduce sustained outages, launching a new, cloud-based outage tracker, improving CenterPoint's Power Alert Service, hosting listening sessions across the service area and using feedback.

In October, CenterPoint Energy announced an agreement with Artificial Intelligence-powered infrastructure modeling platform Neara for engineering-grade simulations and analytics, and to deploy Neara’s AI capabilities across CenterPoint’s Greater Houston service area.