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Bill Gates talks AI, future of energy at CERAWeek address in Houston

overheard

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.

Here's what news trended this week on EnergyCapital. Photo via Getty Images

McKinsey makes acquisition, Shell slows solar, and more trending Houston innovation news

top stories

Editor's note: From recent M&A activity to a recent report on AI, these are the top headlines that resonated with EnergyCapital readers on social media and daily newsletter this week.

Shell shrinks renewable portfolio yet again with latest divestment

Shell’s Savion subsidiary, which the energy giant acquired in 2021, plans to sell about one-fourth of its solar generation and storage assets. Photo via shell.us

In a move aimed at focusing more on its oil and gas business, Houston-based Shell USA continues to scale back its wind and solar energy portfolio.

The Reuters news service reported February 29 that Shell’s Savion subsidiary, which the energy giant acquired in 2021, plans to sell about one-fourth of its solar generation and storage assets. These assets represent as much as 10.6 gigawatts of generation and storage capacity.

This development follows the completion in early February of deals for Kansas City, Missouri-based Savion to sell its 50 percent stake in a solar energy project in Ohio and for Houston-based Shell Wind Energy to sell its 60 percent stake in a wind farm in Texas. Continue reading.

Houston rises as emerging hub for $6B global AI in oil and gas industry, per new report

The research outfit says North America leads global AI growth in oil and gas, with Houston playing a pivotal role. Image via Shutterstock

Houston is emerging as a hub for the development of artificial intelligence in the oil and gas industry — a global market projected to be worth nearly $6 billion by 2028.

This fresh insight comes from a report recently published by ResearchAndMarkets.com. The research outfit says North America leads global AI growth in oil and gas, with Houston playing a pivotal role.

“With AI-driven innovation at its core, the oil and gas industry is set to undergo a profound transformation, impacting everything from reservoir optimization to asset management and energy consumption strategies — setting a new standard for the future of the sector,” says ResearchAndMarkets.com. Continue reading.

McKinsey acquires Houston-area co. to enhance sustainability services

According to McKinsey data, more than $3.5 trillion will be invested in green hydrogen, carbon capture, renewable energy, and other projects that are working toward net-zero transition by 2050. Photo via ses-estimating.com

A global management consulting company has executed on an acquisition key to its plans amid the energy transition.

McKinsey & Company announced the acquisition of Strategic Estimating Systems, a Sugar Land-based consulting firm specializing in cost estimation for oil, gas, and chemical process industries. The acquisition provides McKinsey with enhanced benchmarking capabilities across capital project management — especially within the energy transition. The terms of the deal were not disclosed.

"The capital projects ecosystem is presented with a once-in-a-generation chance to aid in transforming economies to achieve net zero," Justin Dahl, partner and global leader of McKinsey & Company's Capital Analytics, says. Continue reading.

Houston orgs name student, industry teams for CERAWeek pitch competition

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

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. Continue reading.

Houston-based female business leader named changemaker amid energy transition

EDP Renewables North America announced its CEO Sandhya Ganapathy has been named to CNBC’s inaugural Changemakers: Women Transforming Business list.

A Houston renewable energy developer CEO has scored a prestigious spot on a list of changemakers.

EDP Renewables North America announced its CEO Sandhya Ganapathy has been named to CNBC’s inaugural Changemakers: Women Transforming Business list. Ganapathy was recognized for ESG and ED&I Initiatives while helping to advance the clean energy transition.

The new list recognizes female leaders at companies and philanthropic organizations that have achieved impactful financial and business milestones.

“Thank you to CNBC for recognizing the leadership and groundbreaking initiatives the women on this list have achieved,” the company said in a statement on LinkedIn. “As our renewable energy market sector continues to progress and expand, we will need everyone in our industry to be a #changemaker to ensure #reliable, #costeffective, #homegrown energy is accessible to all.” Continue reading.

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.

The year in review

All month long, EnergyCapital has been looking back at 2023 — specifically the second half of it, seeing as EC's launch was this summer — to see what articles were the most read by subscribers. Here are a few of these roundups:

Check back for more in our Year in Review series here.

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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CenterPoint's resiliency plan, Chevron starts up new site, and more trending Houston energy transition news

what's trending

Editor'snote: From Chevron's new deepwater project going online to two Texas companies collaborating on energy storage, these are the top headlines that resonated with EnergyCapital readers on social media and daily newsletter this week.

CenterPoint Energy releases details of resiliency plan

As part of the “Taking Action Now” section, more than 2,500 CenterPoint frontline workers and contractors will be taking a series of targeted actions to strengthen the grid and reduce the risk of outages. Photo via Getty Images

To improve resiliency and reduce the risk of outages from storms or hurricanes, CenterPoint Energy announced its Greater Houston Resiliency Initiative.

The initiative will include an “accelerated timeline to execute specific actions to strengthen electric infrastructure across Houston, and more than 40 critical actions in total to strengthen the electric grid, and improve the company's customer communications and emergency coordination before the next hurricane,” according to a news release.

As part of the “Taking Action Now” section, more than 2,500 CenterPoint frontline workers and contractors will be taking a series of targeted actions to strengthen the grid and reduce the risk of outages before the next major storm that includes installing stronger and more storm-resilient poles, trimming or removal of vegetation from lines, and installing 300 automated devices, which CenterPoint says can help reenergize certain lines and lead to less without power. Continue reading.

Chevron launches production at deepwater project that aims to lower carbon intensity off offshore activity

Chevron's newest deepwater oil and natural gas production project, called the Anchor, is an all-electric facility. Photo courtesy of Chevron

Chevron's new massive deepwater oil and natural gas project in the Gulf of Mexico is officially up and running.

Chevron Corp., which recently announced its relocating its global headquarters to Houston, has officially started oil and natural gas production from its Anchor project in the U.S. Gulf of Mexico.

The semi-submersible floating production unit features a high-pressure technology that operates at up to 20,000 psi with reservoir depths reaching 34,000 feet below sea level, Chevron reports, and has a capacity of 75,000 gross barrels of oil per day and 28 million gross cubic feet of natural gas per day. Continue reading.

Two Texas companies combine to enhance hydrogen fueling, storage infrastructure

Celly offers logistics, storage, and dispensing to innovative modular refueling station services. Photo via cellyh2.com

A provider of hydrogen infrastructure solutions Celly H2 has announced its acquisition of ChemTech Energy (CNE) to continue Celly's mission of leading hydrogen fueling and storage infrastructure.

The Willis, Texas-based company offers logistics, storage, and dispensing to innovative modular refueling station services. Montgomery’s Chemtec Energy has a 25-year legacy in the oil and gas market and specializes in modular hydrogen fueling and storage infrastructure solutions.

"This acquisition marks a significant milestone for Celly as we continue to expand our portfolio in the renewable energy market," Founder and CEO of Celly Austin Terry says in a news release. Continue reading.

Houston clean energy provider raises $10.8M series A

Branch Energy aims to provide customers with clean energy at a lower cost than competitors. Photo via Getty Images

A tech-driven retail energy provider based in Houston has secured an oversubscribed series A round of funding.

Branch Energy raised a $10.8 million round led by climate-focused venture capital firm Prelude Ventures with co-investor Zero Infinity Partners, an infrastructure tech-focused firm. The fresh funding will go toward accelerating the company's battery management tech and build out the infrastructure of its field services.

A vertically integrated power provider, Branch Energy aims to provide customers with demand management software and battery storage systems to ensure long-term, stable, and clean energy at a lower cost than competitors. Continue reading.

Woodside to acquire clean ammonia project outside of Houston in  $2.4B deal

OCI broke ground on the project in 2022. Photo via oci-global.com

Woodside Energy has announced its acquiring a Beaumont, Texas, clean ammonia project that's slated to deliver its first ammonia by 2025 and lower carbon ammonia by 2026.

The agreement is for Woodside to acquire 100 percent of OCI Clean Ammonia Holding and its lower carbon ammonia project in Beaumont in an all-cash deal of approximately $2.35 billion. According to Woodside CEO Meg O’Neill, the acquisition positions Woodside as an early mover in clean ammonia within the energy transition.

“This transaction positions Woodside in the growing lower carbon ammonia market," O’Neill says in a news release. "The potential applications for lower carbon ammonia are in power generation, marine fuels and as an industrial feedstock, as it displaces higher-emitting fuels. Continue reading.

New report maps Houston workforce development strategies as companies transition to cleaner energy

to-do list

The University of Houston’s Energy University latest study with UH’s Division of Energy and Innovation with stakeholders from the energy industry, academia have released findings from a collaborative white paper, titled "Workforce Development for the Future of Energy.”

UH Energy’s workforce analysis found that the greatest workforce gains occur with an “all-of-the-above” strategy to address the global shift towards low-carbon energy solutions. This would balance electrification and increased attention to renewables with liquid fuels, biomass, hydrogen, carbon capture, utilization and storage commonly known as CCUS, and carbon dioxide removal, according to a news release.

The authors of the paper believe this would support economic and employment growth, which would leverage workers from traditional energy sectors that may lose jobs during the transition.

The emerging hydrogen ecosystem is expected to create about 180,000 new jobs in the greater Houston area, which will offer an average annual income of approximately $75,000. Currently, 40 percent of Houston’s employment is tied to the energy sector.

“To sustain the Houston region’s growth, it’s important that we broaden workforce participation and opportunities,” Ramanan Krishnamoorti, vice president of energy and innovation at UH, says in a news release. “Ensuring workforce readiness for new energy jobs and making sure we include disadvantaged communities is crucial.”

Some of the key takeaways include strategies that include partnering for success, hands-on training programs, flexible education pathways, comprehensive support services, and early and ongoing outreach initiatives.

“The greater Houston area’s journey towards a low-carbon future is both a challenge and an opportunity,” Krishnamoorti continues. “The region’s ability to adapt and lead in this new era will depend on its commitment to collaboration, innovation, and inclusivity. By preparing its workforce, engaging its communities, and leveraging its industrial heritage, we can redefine our region and continue to thrive as a global energy leader.”

The study was backed by federal funding from the Department of the Treasury through the State of Texas under the Resources and Ecosystems Sustainability, Tourist Opportunities, and Revived Economies of the Gulf Coast States Act of 2012.

Houston geothermal startup selects Texas location for first energy storage facility

major milestone

Houston-based geothermal energy startup Sage Geosystems has teamed up with a utility provider for an energy storage facility in the San Antonio metro area.

The three-megawatt EarthStore facility will be on land controlled by the San Miguel Electric Cooperative, which produces electricity for customers in 47 South Texas counties. The facility will be located in the town of Christine, near the cooperative’s coal-fired power plant.

Sage says its energy storage system will be paired with solar energy to supply power for the grid operated by the Electric Reliability Council of Texas (ERCOT). The facility is set to open later this year.

“Once operational, our EarthStore facility in Christine will be the first geothermal energy storage system to store potential energy deep in the earth and supply electrons to a power grid,” Cindy Taff, CEO of Sage Geosystems, says in a news release.

The facility is being designed to store geothermal energy during six- to 10-hour periods.

“Long-duration energy storage is crucial for the ERCOT utility grid, especially with the increasing integration of intermittent wind and solar power generation,” says Craig Courter, CEO of the San Miguel Electric Cooperative.

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