In his conversation with S&P Global's Daniel Yergin, Bill Gates discussed AI, Texas as an energy transition hub, and more. Photo via CERAWeek

Bill Gates, renowned co-founder of Microsoft and founder of Breakthrough Energy, took the CERAWeek stage to a standing-room-only crowd to discuss his thoughts on the future of energy.

He was joined in conversation with Daniel Yergin, author and vice chairman of S&P Global, at the luncheon on Thursday, March 21. His remarks touched on three themes within the energy transition.

Texas as a hub for energy transition

Yergin started off the conversation inquiring about Gates and his recent tour around Texas, which included visiting energy companies' plants and facilities and their local communities. Though it might surprise people, given the history of oil and gas in the state, Texas has a strong presence in the energy transition, Gates says.

“There is some irony in the fact that so many of the capabilities to embrace (the energy transition) are here in Texas, whether it's the workforce or the permitting,” he says at the event.

Gates adds that while most of the portfolio companies at Breakthrough Energy were founded on the coasts, many turn to Texas when it comes time for their first commercial pilot.

He addressed a progress report on the energy transition as a whole.

“It’s really starting to move. There’s a lot of exciting technologies, and a lot of the big companies are coming in,” he says, specifically noting energy companies' presence at COP28.

“A heroic effort is beginning — I’m very excited about it. But we shouldn’t underestimate how difficult it will be,” he says. “There’s a lot of things that have to happen for these projects to go ahead. It’s far more difficult than anything I worked on at Microsoft.”

Steel and nuclear have big potential for disruption

Gates continued this thought but highlighting that some industries are less advanced than others.

“We’re just at the beginning of many things," he adds, noting that "the steel industry today is 99 percent the traditional process."

With that, steel has a lot of potential to be disrupted, and Breakthrough Energy has two companies working to make the industry greener, but it's an industry that's going to take time to evolve.

Nuclear is another sector Gates is excited about but is developing at a slower pace. Breakthrough Energy has five portfolio companies focused on Nuclear, including TerraPower, which Gates co-founded in 2006.

Despite nearly two decades of development, Gates says TerraPower is a "fast-moving" nuclear company in comparison to other companies out there.

AI's impact is still to be determined

The topic of artificial intelligence inevitably came up, and Gates explains that the technology has come a long way. Microsoft owns a portion of OpenAI, which created ChatGPT. Gates says he expected AI to evolve and to be able to be programmed to understand information to take longer to develop.

“We have achieved a threshold — an unusual threshold because we know how we’ve caused the knowledge represented, but we don’t understand how at a semantic level how that knowledge is being represented,” Gates says.

AI's current applications are within white collar activities, Gates explains, citing writing a regulatory permit or looking at evidence in a lawsuit. He explains that current AI capabilities could continually grow or remain stagnant for a while, he isn't sure.

"The thing that’s daunting is we don’t know how quickly it will improve," he adds.

Gates didn't comment on energy specific AI applications but noted that AI has advanced far past robotics, which would target blue collar roles.

Nearly 40 climatetech startups will pitch at this upcoming CERAWeek event from HETI, the Rice Alliance, and TEX-E. Photo by Natalie Harms

Houston orgs name student, industry teams for CERAWeek pitch competition

taking the stage

The Rice Alliance for Technology and Entrepreneurship, the Houston Energy Transition Initiative and the Texas Entrepreneurship Exchange for Energy announced the 39 energy ventures that will pitch at 2024 Energy Venture Day and Pitch Competition during this month's CERAWeek.

The ventures are focused on driving efficiency and advancements toward the energy transition and will each present a 3.5-minute pitch before venture capitalists, corporate innovation groups, industry leaders, academics, and service providers during CERAWeek's Agora program.

The pitch competition is divided up into the TEX-E university track, in which Texas student-led energy startups compete for $50,000 in cash prizes, and the industry ventures track.

Teams competing in the TEX-E Prize track, many of which come from Houston universities, include:

  • AirMax, University of Texas at Austin
  • BeadBlocker, University of Houston
  • Carvis Energy Solutions, Texas A&M University
  • Coflux Purification, Rice University
  • Solidec, Rice University

Thirty-four companies will present within the industry ventures track, which is further subdivided into three industry tracks, spanning materials to clean energy. The top three companies from each industry track will be named. Click here to see the full list of companies and which investor groups will participate.

The pitch competition will be held Wednesday, March 20, at CERAWeek from 1-5 pm. An Agora pass is required to attend.

For those without passes, a pitch preview will be introduced to the programming for the first time this year. The preview will be held Tuesday, March 19, from 9:30 am to 2:30 pm at the Ion. It's free to attend, but registration is required. Click here to register.

Last year, Houston-based Helix Earth Technologies took home the top TEX-E price and $25,000 cash awards. The venture, founded by Rawand Rasheed and Brad Husick from Rice University, developed high-speed, high-efficiency filter systems derived from technology originating at NASA.

David Pruner, the executive director of TEX-E joined the Houston Innovators Podcast last month. He discussed how the nonprofit is expanding opportunities for students at its five university partners—Rice University, Texas A&M University, Prairie View A&M University, University of Houston, and The University of Texas at Austin. Listen to the episode below.

The CERAWeek by S&P Global 2024 programming will reflect on the reality of the energy transition, including its progress in different regions and across industries, technologies, and politics. Photo by Natalie Harms/InnovationMap

CERAWeek 2024 returns to Houston to feature thought leadership on energy transition

coming soon

For the 42nd time, CERAWeek is convening energy leaders from around the world for a conference the week of March 18 — and the action will all take place in downtown Houston.

CERAWeek by S&P Global 2024, with its theme of "Multidimensional Energy Transition: Markets, climate, technology and geopolitics," will zero in on the world's journey to zero-carbon, specifically exploring "strategies for a multidimensional, multispeed and multifuel energy transition," according to a news release. The programming will reflect on the reality of the energy transition, including its progress in different regions and across industries, technologies, and politics.

This year, the event is chaired by Daniel Yergin, vice chairman of S&P Global and author of The New Map: Energy, Climate and the Clash of Nations.

“The increasing focus on energy transition following COP28 coincides with a growing realization of just how complex the road ahead will be,” Yergin says in the release. “Expectations of a linear path to Net-zero are giving way to recognition that this will be a multidimensional energy transition—one that is inclusive of different situations in different parts of the world and takes into account energy security and affordability.

"The reality of a multispeed transition presents both opportunities and challenges," he continues. "Meeting those challenges, and realizing the promise, of the new energy future will be the focus of the world’s energy leaders at CERAWeek 2024 in Houston.”

CERAWeek's key themes this year tackle everything from power markets and minerals to geopolitics and tech and innovation.

The CERAWeek Innovation Agora track, which is the program's deeper dive into technology and innovation will feature thought leadership "ranging across AI, decarbonization, low carbon fuels, cybersecurity, hydrogen, nuclear, mining and minerals, mobility, automation, and more," per the release.

Additionally, the “Agora Hubs,” which are dedicated areas focused on climate, hydrogen, and carbon, have returned to an expanded capacity.

The full list of CERAWeek 2024 speakers is available online, as is registration.

The pitch day will feature more than 40 energy ventures driving efficiency and advancements toward the energy transition showcasing their companies. Photo via htxenergytransition.org

HETI, collaborators open pitch competition applications for annual CERAWeek event

the view from heti

The Rice Alliance for Technology and Entrepreneurship, the Houston Energy Transition Initiative (HETI) and TEX-E have opened applications for their Energy Venture Day and Pitch Competition at CERAWeek, set to take place in the Agora program on March 20.

The pitch day will feature more than 40 energy ventures driving efficiency and advancements toward the energy transition showcasing their companies. The fast-paced competition is designed to connect energy startups with venture capitalists, corporate innovation groups, industry leaders, academics and service providers.

Ventures will be showcased across three industry tracks, spanning materials to clean energy. Industry experts and investors will judge the pitches, and the top three ventures from each track will be named at the conclusion of the event. The pitches from energy ventures will include a university track, the TEX-E Prize, highlighting the innovation of five Texas student-led energy startups. With mentorship leading up to the competition, these student startups will compete for $50,000 in cash prizes.

“The goal of the TEX-E Prize is to support, encourage and inspire students across the state of Texas to pursue entrepreneurship as a means of reducing emissions and building a healthier, more resilient society,” said David Pruner, executive director at TEX-E.

Energy ventures for all tracks of the competition are asked to apply by Feb. 9. More details about eligibility can be found at alliance.rice.edu/EVD.

“The Energy Venture Day and Pitch Competition at CERAWeek bring together key members of the energy ecosystem, investors and startups to showcase innovations and emerging technologies that create value from the world’s transition to low-carbon energy systems,” said Jane Stricker, senior vice president at the Greater Houston Partnership and executive director of HETI. “We are thrilled to partner with our ecosystem partner, Rice Alliance, on this exciting event at CERAWeek and build on the momentum of the last few years.”

“In addition to the access to investors and awareness at CERAWeek, this is an invaluable opportunity to pitch in front of active investors, corporates and key players in the energy industry,” said Brad Burke, executive director of the Rice Alliance and vice president for industry and new ventures in Rice’s Office of Innovation. “The Energy Venture Day and Pitch Competition at CERAWeek is a platform designed to foster innovation, collaboration and investment in the ever-evolving energy landscape.”

Learn more about this year’s pitch day here.

Looking back at top energy transition news from the year, a podcast to stream, and more of what to know going into the last week of 2023. Photo via Getty Images

LYB buys in on plastics recycling co., a podcast to stream, and more to know this week

take note

Editor's note: It's a new week — start it strong with three quick things to catch up on in Houston's energy transition: looking back on top news from 2023, a podcast to stream, and more.

LYB acquires German plastic waste sourcing and engineering company

Houston-based LyondellBasell, rebranded recently to LYB, announced earlier this month that it has acquired a minority share in Source One GmbH, Leiferde, Germany, a plastic waste sourcing and engineering company, that specializes specifically in solutions for hard-to-recycle post-consumer plastic waste. This investment gives LYB access to Source One's engineering and plastic waste sourcing services, according to a news release.

"We are committed to support the growing demand of our customers for circular solutions," says Yvonne van der Laan, LyondellBasell executive vice president of Circular and Low Carbon Solutions, in the news release. “With the investment in Source One we are taking another important step to secure access to plastic waste for our recycling activities and to strengthen our Circulen product portfolio of material made from recyclable or renewable resources.”

Podcast: Moji Karimi of Cemvita talks COP28, growth of the company, and more

Moji Karimi, CEO and co-founder of Cemvita, joined the Houston Innovators Podcast last week before he had even recovered from jet lag to talk about his biggest takeaways from 2023 United Nations Climate Change Conference or Conference of the Parties, more commonly known as COP28.

"It was a pretty amazing experience," Karimi says, comparing the event to how CERAWeek has evolved to really have a strong presence in its innovation-focused track called Agora. "This year you had a massive section for innovation and sustainability. I think that will become a theme in COP29 and beyond to bring entrepreneurs, investors, and more participating in the event."

Karimi's three big observations are outlined here, as is the full podcast with him sharing more about Cemvita's growth this year.

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3 Houston sustainability startups score prizes at Rice University pitch competition

seeing green

A group of Rice University student-founded companies shared $100,000 of cash prizes at an annual startup competition — and three of those winning companies are focused on sustainable solutions.

Liu Idea Lab for Innovation and Entrepreneurship's H. Albert Napier Rice Launch Challenge, hosted by Rice earlier this month, named its winners for 2024. HEXASpec, a company that's created a new material to improve heat management for the semiconductor industry, won the top prize and $50,000 cash.

Founded by Rice Ph.D. candidates Tianshu Zhai and Chen-Yang Lin, who are a part of Lilie’s 2024 Innovation Fellows program, HEXASpec is improving efficiency and sustainability within the semiconductor industry, which usually consumes millions of gallons of water used to cool data centers. According to Rice's news release, HEXASpec's "next-generation chip packaging offer 20 times higher thermal conductivity and improved protection performance, cooling the chips faster and reducing the operational surface temperature."

A few other sustainability-focused startups won prizes, too. CoFlux Purification, a company that has a technology that breaks down PFAS using a novel absorbent for chemical-free water, won second place and $25,000, as well as the Audience Choice Award, which came with an additional $2,000.

Solidec, a company that's working on a platform to produce chemicals from captured carbon, and HEXASpec won Outstanding Achievement in Climate Solutions Prizes, which came with $1,000.

The NRLC, open to Rice students, is Lilie's hallmark event. Last year's winner was fashion tech startup, Goldie.

“We are the home of everything entrepreneurship, innovation and research commercialization for the entire Rice student, faculty and alumni communities,” Kyle Judah, executive director at Lilie, says in a news release. “We’re a place for you to immerse yourself in a problem you care about, to experiment, to try and fail and keep trying and trying and trying again amongst a community of fellow rebels, coloring outside the lines of convention."

This year, the competition started with 100 student venture teams before being whittled down to the final five at the championship. The program is supported by Lilie’s mentor team, Frank Liu and the Liu Family Foundation, Rice Business, Rice’s Office of Innovation, and other donors

“The heart and soul of what we’re doing to really take it to the next level with entrepreneurship here at Rice is this fantastic team,” Peter Rodriguez, dean of Rice Business, adds. “And they’re doing an outstanding job every year, reaching further, bringing in more students. My understanding is we had more than 100 teams submit applications. It’s an extraordinarily high number. It tells you a lot about what we have at Rice and what this team has been cooking and making happen here at Rice for a long, long time.”

———

This article originally ran on InnovationMap.

ExxonMobil's $60B acquisition gets FTC clearance — with one condition

M&A moves

ExxonMobil's $60 billion deal to buy Pioneer Natural Resources on Thursday received clearance from the Federal Trade Commission, but the former CEO of Pioneer was barred from joining the new company's board of directors.

The FTC said Thursday that Scott Sheffield, who founded Pioneer in 1997, colluded with OPEC and OPEC+ to potentially raise crude oil prices. Sheffield retired from the company in 2016, but he returned as president and CEO in 2019, served as CEO from 2021 to 2023, and continues to serve on the board. Since Jan. 1, he has served as special adviser to the company’s chief executive.

“Through public statements, text messages, in-person meetings, WhatsApp conversations and other communications while at Pioneer, Sheffield sought to align oil production across the Permian Basin in West Texas and New Mexico with OPEC+,” according to the FTC. It proposed a consent order that Exxon won't appoint any Pioneer employee, with a few exceptions, to its board.

Dallas-based Pioneer said in a statement it disagreed with the allegations but would not impede closing of the merger, which was announced in October 2023.

“Sheffield and Pioneer believe that the FTC’s complaint reflects a fundamental misunderstanding of the U.S. and global oil markets and misreads the nature and intent of Mr. Sheffield’s actions,” the company said.

Senate Majority Leader Chuck Schumer, D-N.Y., said it was “disappointing that FTC is making the same mistake they made 25 years ago when I warned about the Exxon and Mobil merger in 1999.”

Schumer and 22 other Democratic senators had urged the FTC to investigate the deal and a separate merger between Chevron and Hess, saying they could lead to higher prices, hurt competition and force families to pay more at the pump.

The deal with Pioneer vastly expands Exxon’s presence in the Permian Basin, a huge oilfield that straddles the border between Texas and New Mexico. Pioneer’s more than 850,000 net acres in the Midland Basin will be combined with Exxon’s 570,000 net acres in the Delaware and Midland Basin, nearly contiguous fields that will allow the combined company to trim costs.