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Houston energy leader on why the future of fuels is more than electric vehicles

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The future of transportation fuels will be shaped by a mix of innovation, government policies, and what consumers want. Photo by Engin Akyurt/Pexels

Gasoline, diesel, bunker fuel, and jet fuel. Four liquid hydrocarbons that have been powering transportation for the last 100-plus years.

Gas stations, truck stops, ports, and airport fuel terminals have been built up over the last century to make transportation easy and reliable.

These conventional fuels release Greenhouse Gases (GHG) when they are used, and governments all over the world are working on plans to shift towards cleaner fuels in an effort to lower emissions and minimize the effects of climate change.

For passenger cars, it’s clear that electricity will be the cleaner fuel type, with most countries adopting electric vehicles (EVs), and in some cases, providing their citizens with incentives to make the switch.

While many articles have been written about EVs and the benefits that come along with them, they fail to look at the transportation system as a whole.

Trucks, cargo ships, and airplanes are modes of transportation that are used every day, but they don’t often get the spotlight like EVs do.

For governments to be effective in curbing transportation-related greenhouse emissions, they must consider all forms of transportation and cleaner fuel options for them as well.

43 percent of GHG emissions comes from these modes of transportation. Therefore, using electricity to reduce GHG emissions in light duty vehicles only accounts for part of the total transportation emissions equation.

The path to cleaner fuels for these transportation modes has its challenges.

According to Ed Emmett, Fellow in Energy and Transportation Policy at the Baker Institute Center for Energy Studies (CES);

  • "Airplanes cannot be realistically powered by electricity, at least not currently, and handle the same requisite freight and passenger loads"
  • "The long-haul trucking industry [...] pushed back against electrification as being impractical due to the size and weight of batteries, their limited range, and the cost of adoption"
  • "Shipowners have expressed reluctance to scrap existing bunker fueled ships for newer, more expensive ships, especially when other fueling options, e.g. biofuels and hydrocarbon derivatives-for fleets can be made available"

Finding low-cost, reliable, and environmentally sound fuels for the various segments of transportation is complex. As Emmett suggests in his latest article;

"Hovering over the transition to other fuels for almost every transportation mode is the question of dependability of supply. For the trucking industry, the truck stop industry must be able to adapt to new fuel requirements. For ocean shipping, ports must be able to meet the fuel needs of new ships. Airlines, air cargo carriers and airports need to be on the same page when it comes to aviation fuels. In other words, the adoption equation in transitions in transportation is not only a function of the availability and cost of the new technology but also a function of the cost of the full supply chain needed to support fuel production and delivery to the point of use. Going forward, the transportation industry is facing a dilemma: How are environmental concerns addressed while simultaneously maintaining operational efficiency and avoiding unnecessary upward cost shifts for moving goods and people? In answering that question, for the first time in history, modes of transportation may end up going in multiple different directions when it comes to the fuels each mode ultimately chooses."

This is why many forecasts predict that hydrocarbon demand will continue through 2050, despite ambitious aspirations of achieving net zero emissions by that year. The McKinsey "slow evolution" scenario has global liquid hydrocarbon demand in 2050 at 92mmb/d versus 103 mmb/d in 2023. With their "continued momentum" scenario, oil demand is 75 mmb/d. Proportionally, global oil demand related to GHG emissions from transportation would decline 11-27 percent. The global uptake of EVs is the primary driver of uncertainty around future oil demand. In all the McKinsey scenarios, the share of EVs in passenger cars sales is expected to be above 90 percent by 2050.

The Good News

Despite the relatively slow progress expected for reducing GHG emissions in the global transportation sector, there are solutions emerging that lower the carbon footprint tied to traditional petroleum-based fuels. Emmett highlights some of the methods under study, noting that "sustainable biofuels sourced from cooking oils, animal fats, and agriculture products, as well as hydrogen, methanol, ammonia, and various e-fuels are among the options being tested. Some ocean carriers are already ordering ships powered by liquified natural gas, bio-e-methanol, bio/e-methane, ammonia, and hydrogen. Airlines are already using sustainable aviation fuel as a supplement to basic aviation fuel. Railroads are testing hydrogen locomotives. The trucking industry is decarbonizing local delivery by using vehicles powered by electricity, compressed natural gas, and sustainable diesel. Long-haul trucking companies are considering sustainable diesel as a drop-in fuel for existing equipment, and fuel suppliers are researching new engines fueled by hydrogen and other alternative fuels."

Most of these options will require a combination of increased government incentives, along with advancements in technology and cost reductions.

McKinsey's "sustainable transformation" scenario, which considers potential shifts in government regulations as well as advancements in technology and cost, suggests there is moderate growth in alternative fuels alongside growth in EVs. Mckinsey projects;

  • EV demand could grow to over 90 percent of total passenger car sales by 2050
  • EVs to make up around 80 percent of commercial truck sales by 2050
  • In aviation, low carbon fuels such as biofuels, synfuels, hydrogen and electricity are projected to grow to 49 percent by 2050.

According to McKinsey, the combination of these alternatives along with demand changes in power and chemicals could reduce global oil demand to 60 mmb/d in 2050. The shift to cleaner fuels, for modes of transportation other than EVs, is underway but the progress and adoption will take decades to achieve according to McKinsey’s forecasts.

Looking more closely at EVs, the story may not be as dire globally as it seems to be in the West. While the U.S. appears to be losing momentum on electric vehicle adoption, China is roaring ahead. New electric car registrations in China reached 8.1 million in 2023, increasing by 35 percent relative to 2022. McKinsey’s forecasts have underestimated global EV sales in the past, with China surpassing their estimates, while the U.S. lags behind. It’s clear that China is the winner in EV adoption; could they also lead the way to adopt cleaner fuels for other modes of transport? That is something governments and the transportation industry will be watching in the years ahead.

Conclusion

While we are not on a trajectory to meet the aspirations to reduce global GHG emissions in the transportation sector, there are emerging solutions that could be adopted should governments around the world decide to put in place the incentives to get there. Moving forward, the future of transportation fuels will be shaped by a mix of innovation, government policies, and what consumers want. The focus will be on ensuring that the transportation sector remains reliable, secure, and economically robust, while also reducing GHG emissions. But, decarbonizing the transportation sector is much more than just EV's – it's a broader effort that will require continued global progress in each of the multiple transportation segments.

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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 ran on LinkedIn on October 9, 2024.

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The layoffs could affect about 14,000 of the 140,473 workers employed by the Austin, Texas, company at the end of last year. Photo courtesy of Tesla

Tesla plans to lay off 10 percent of workforce after dismal quarterly sales

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After reporting dismal first-quarter sales, Tesla is planning to lay off about a tenth of its workforce as it tries to cut costs, multiple media outlets reported Monday.

CEO Elon Musk detailed the plans in a memo sent to employees. The layoffs could affect about 14,000 of the 140,473 workers employed by the Austin, Texas, company at the end of last year.

Musk's memo said that as Tesla prepares for its next phase of growth, “it is extremely important to look at every aspect of the company for cost reductions and increasing productivity,” The New York Times and CNBC reported. News of the layoffs was first reported by electric vehicle website Electrek.

Also Monday, two key Tesla executives announced on the social media platform X that they are leaving the company. Andrew Baglino, senior vice president of powertrain and energy engineering, wrote that he had made the decision to leave after 18 years with the company.

Rohan Patel, senior global director of public policy and business development, also wrote on X that he was leaving Tesla, after eight years.

Baglino, who held several top engineering jobs at the company and was chief technology officer, wrote that the decision to leave was difficult. “I loved tackling nearly every problem we solved as a team and feel gratified to have contributed to the mission of accelerating the transition to sustainable energy,” he wrote.

He has no concrete plans beyond spending more time with family and his young children, but wrote that he has difficulty staying still for long.

Musk thanked Baglino in a reply. “Few have contributed as much as you,” he wrote.

Shares of Tesla fell 4.8 percent Monday afternoon, hours after news of the layoffs and departures broke. Shares of Tesla Inc. have lost about one-third of their value so far this year as sales of electric vehicles soften.

Tesla sales fell sharply last quarter as competition increased worldwide, electric vehicle sales growth slowed, and price cuts failed to draw more buyers. The company said it delivered 386,810 vehicles from January through March, nearly 9 percent below the 423,000 it sold in the same quarter of last year.

Since last year, Tesla has cut prices as much as $20,000 on some models as it faced increasing competition and slowing demand. The price cuts caused used electric vehicle values to drop and clipped Tesla's profit margins.

The company has said it will reveal an autonomous robotaxi at an event in August.

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10+ must-attend Houston energy transition events happening in Q3 2025

Must-Attend Meetings

Editor's note: Q3 is here, and with it, a full slate of must-attend events for Houston energy professionals. On the agenda are casual mixers, exciting showcases, week-long happenings, and more. Mark your calendars for these top Houston energy transition events coming up from July to September 2025, and begin registering today. Please note: this article may be updated to include additional events.

July 17 — TEX-E Energy, Innovation, and Entrepreneurship networking mixer

The Texas Exchange for Energy & Climate Entrepreneurship hosts this casual networking event to connect the Houston energy and climate tech ecosystem.

This event takes place Thursday, July 17 at 5 pm at Second Draught. Click here to register.

July 29 — Center for Houston's Future presents Summer Salon

This year's Summer Salon breakfast program is titled "Digital Technology and AI: Challenges and Opportunities for Driving Energy Innovation." Sponsored by bp, it will feature a timely conversation about the intersection of digital technology (including AI) and energy innovation.

This event takes place Tuesday, July 29 at 7:30 am at Junior League of Houston. Click here to register.

August 21 — Transition on Tap

Greentown Labs’ signature networking event returns in August to foster conversations and connections within Houston's climate and energy transition ecosystem. Entrepreneurs, investors, students, philanthropists, and more are invited to attend, meet colleagues, discuss solutions, and engage with the growing community.

This event takes place Thursday, August 21 at 5:30 pm at Greentown Labs. Click here to register.

August 22 – Determined to Lead Women Lunch: Investing Through Market Cycles with Ellen Wilkirson

EnergyTech Nexus hosts a monthly Determined to Lead Women’s Lunch as part of its ongoing efforts to create safe spaces for women leaders in the energy transition to connect, learn, and lead. The August session features Ellen Wilkirson, principal at Rev Innovations. With deep experience across traditional and transition energy sectors, Wilkirson will share how she’s approached investing through multiple market and commodity cycles and what it means to be a clean energy investor in today’s evolving landscape.

This event takes place Friday, August 22 at 1 pm. Click here to register.

August 27-28 — 6th Texas Energy Forum 2025

The 6th Texas Energy Forum will dive deep into the strategies, policies, and innovative solutions that reinforce energy security for the United States and its allies and fuel economic growth — centered on Texas’ pivotal role in the global energy landscape. Key discussions will address the future of regulatory reform, tariffs, and tax incentives; advancements in oil, gas, and LNG markets; the expansion of power generation; and breakthroughs in EVs and charging infrastructure. This year's topic is "Texas: The Energy Innovation Powerhouse."

This event begins Wednesday, August 27 at the Petroleum Club of Houston. Click here to register.

September 3-4 — 11th Annual Digitalization in Oil & Gas Conference

This conference will delve deep into the intersection of digitalization and decarbonization, highlighting the transformation required for the oil and gas sector to stay relevant, resilient, and achieve business value. This year, the focus is on leveraging AI and generative AI, driving sustainability and workforce development, and achieving operational excellence through digitalization. Key objectives include building future-ready facilities, planning for a lower carbon market, and realizing business value through innovative solutions.

This event begins Wednesday, September 3 at Hilton Americas Houston. Click here to register.

September 8-10 — SPE Energy Transition Symposium

The SPE Energy Transition Symposium brings together professionals from multiple disciplines across the energy sector, offering a comprehensive platform for learning, networking, and collaboration. Its primary objective is to facilitate the exchange and dissemination of knowledge drawn from the insights of industry leaders, technical experts, academics, practitioners, representatives from the financial community, and environmental, social, and governance (ESG) leaders. This year's symposium is titled "Synergizing Innovation and Collaboration: Transforming Energy for a Sustainable Future."

This event begins Monday, September 8 at Houston Marriott Sugar Land. Click here to register.

September 15-19 — Houston Energy & Climate Week

Houston Energy & Climate Week utilizes Houston's potential to propel global climate action. This gathering welcomes an unparalleled selection of global energy leaders and communities, giving participants opportunities to interact and discuss capital, technology, workforce, and policy needs. It is organized by Allies in Energy, a nonprofit dedicated to building energy and climate literacy and a pathway to the workforce of the future.

Following an invite-only dinner on Sunday, September 14, this event begins with Opening Ceremonies on Monday, September 15. Click here for details.

September 15-19 — Houston Energy + Climate Startup Week

Launched in 2024, the official Houston Energy and Climate Startup Week returns for its second year, showcasing how Houston is developing and scaling real solutions for the dual challenge of meeting growing global energy demand while reducing carbon emissions. Join leading energy and climate venture capital investors, industry leaders, and startups from around the world for this showcase of the most innovative companies and technologies that are transforming the energy industry while driving a sustainable, low-carbon energy future.

This event begins Monday, September 15 with a kickoff event at the Ion Plaza. Click here for details.

September 16 — Pilotathon 2025 & Company Showcase

EnergyTech Nexus hosts its annual Pilotathon — a high-impact event designed to fast-track pilot deployments for climate and energy tech startups. Expect a full day of curated startup pitches, a 50-plus company innovation showcase, and direct engagement with corporate partners, investors, and ecosystem leaders. The afternoon will also feature participants from the ETN CoPilot Accelerator. Startup applications and event registration is now open at www.pilotathon.com.

This event takes place Tuesday, September 16 at 8 am at GreenStreet. Click here to register.

September 18 — ACCEL Year 3 Showcase

As part of Houston Energy and Climate Startup Week, Greentown Labs will celebrate ACCEL, an accelerator program for startups led by BIPOC and other underrepresented founders. The third ACCEL cohort will present a showcase featuring their technologies, what they’ve accomplished in the first six months of the program, and where they’re headed next. Attendees will also have the opportunity to network with industry leaders who are passionate about and building an inclusive and sustainable future.

This event takes place Thursday, September 18 at 5 pm at Greentown Labs. Click here to register.

Greentown Labs adds 6 Texas clean energy startups to Houston incubator

green team

Greentown Labs announced the six startups to join its Houston community in Q2 of 2025.

The companies are among a group of 13 that joined the climatetech incubator, which is co-located in Houston and Boston, in the same time period. The companies that joined the Houston-based lab specialize in a number of clean energy applications, from long-duration energy storage systems to 3D solar towers.

The new Houston members include:

  • Encore CO2, a Louisiana-based company that converts CO2 into ethanol, acetate, ethylene and other sustainable chemicals through its innovative electrolysis technology
  • Janta Power, a Dallas-based company with proprietary 3D-solar-tower technology that deploys solar power vertically rather than flatly, increasing power and energy generation
  • Licube, an Austin-based company focused on sustainable lithium recovery from underutilized sources using its proprietary and patented electrodialysis technology
  • Newfound Materials, a Houston-based company that has developed a predictive engine for materials R&D
  • Pix Force, a Houston-based company that develops AI algorithms to inspect substations, transmission lines and photovoltaic plants using drones
  • Wattsto Energy, a Houston-based manufacturer of a long-duration-energy-storage system with a unique hybrid design that provides fast, safe, sustainable and cost-effective energy storage at the microgrid and grid levels

Seven other companies will join Greentown Boston's incubator. See the full list here.

Greentown Houston also added five startups to its local lab in Q1. Read more about the companies here.

How Planckton Data is building the sustainability label every industry will need

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There’s a reason “carbon footprint” became a buzzword. It sounds like something we should know. Something we should measure. Something that should be printed next to the calorie count on a label.

But unlike calories, a carbon footprint isn’t universal, standardized, or easy to calculate. In fact, for most companies—especially in energy and heavy industry—it’s still a black box.

That’s the problem Planckton Data is solving.

On this episode of the Energy Tech Startups Podcast, Planckton Data co-founders Robin Goswami and Sandeep Roy sit down to explain how they’re turning complex, inconsistent, and often incomplete emissions data into usable insight. Not for PR. Not for green washing. For real operational and regulatory decisions.

And they’re doing it in a way that turns sustainability from a compliance burden into a competitive advantage.

From calories to carbon: The label analogy that actually works

If you’ve ever picked up two snack bars and compared their calorie counts, you’ve made a decision based on transparency. Robin and Sandeep want that same kind of clarity for industrial products.

Whether it’s a shampoo bottle, a plastic feedstock, or a specialty chemical—there’s now consumer and regulatory pressure to know exactly how sustainable a product is. And to report it.

But that’s where the simplicity ends.

Because unlike food labels, carbon labels can’t be standardized across a single factory. They depend on where and how a product was made, what inputs were used, how far it traveled, and what method was used to calculate the data.

Even two otherwise identical chemicals—one sourced from a refinery in Texas and the other in Europe—can carry very different carbon footprints, depending on logistics, local emission factors, and energy sources.

Planckton’s solution is built to handle exactly this level of complexity.

AI that doesn’t just analyze

For most companies, supply chain emissions data is scattered, outdated, and full of gaps.

That’s where Planckton’s use of AI becomes transformative.

  • It standardizes data from multiple suppliers, geographies, and formats.
  • It uses probabilistic models to fill in the blanks when suppliers don’t provide details.
  • It applies industry-specific product category rules (PCRs) and aligns them with evolving global frameworks like ISO standards and GHG Protocol.
  • It helps companies model decarbonization pathways, not just calculate baselines.

This isn’t generative AI for show. It’s applied machine learning with a purpose: helping large industrial players move from reporting to real action.

And it’s not a side tool. For many of Planckton’s clients, it’s becoming the foundation of their sustainability strategy.

From boardrooms to smokestacks: Where the pressure is coming from

Planckton isn’t just chasing early adopters. They’re helping midstream and upstream industrial suppliers respond to pressure coming from two directions:

  1. Downstream consumer brands—especially in cosmetics, retail, and CPG—are demanding footprint data from every input supplier.
  2. Upstream regulations—especially in Europe—are introducing reporting requirements, carbon taxes, and supply chain disclosure laws.

The team gave a real-world example: a shampoo brand wants to differentiate based on lower emissions. That pressure flows up the value chain to the chemical suppliers. Who, in turn, must track data back to their own suppliers.

It’s a game of carbon traceability—and Planckton helps make it possible.

Why Planckton focused on chemicals first

With backgrounds at Infosys and McKinsey, Robin and Sandeep know how to navigate large-scale digital transformations. They also know that industry specificity matters—especially in sustainability.

So they chose to focus first on the chemicals sector—a space where:

  • Supply chains are complex and often opaque.
  • Product formulations are sensitive.
  • And pressure from cosmetics, packaging, and consumer brands is pushing for measurable, auditable impact data.

It’s a wedge into other verticals like energy, plastics, fertilizers, and industrial manufacturing—but one that’s already showing results.

Carbon accounting needs a financial system

What makes this conversation unique isn’t just the product. It’s the co-founders’ view of the ecosystem.

They see a world where sustainability reporting becomes as robust as financial reporting. Where every company knows its Scope 1, 2, and 3 emissions the way it knows revenue, gross margin, and EBITDA.

But that world doesn’t exist yet. The data infrastructure isn’t there. The standards are still in flux. And the tooling—until recently—was clunky, manual, and impossible to scale.

Planckton is building that infrastructure—starting with the industries that need it most.

Houston as a launchpad (not just a legacy hub)

Though Planckton has global ambitions, its roots in Houston matter.

The city’s legacy in energy and chemicals gives it a unique edge in understanding real-world industrial challenges. And the growing ecosystem around energy transition—investors, incubators, and founders—is helping companies like Planckton move fast.

“We thought we’d have to move to San Francisco,” Robin shares. “But the resources we needed were already here—just waiting to be activated.”

The future of sustainability is measurable—and monetizable

The takeaway from this episode is clear: measuring your carbon footprint isn’t just good PR—it’s increasingly tied to market access, regulatory approval, and bottom-line efficiency.

And the companies that embrace this shift now—using platforms like Planckton—won’t just stay compliant. They’ll gain a competitive edge.

Listen to the full conversation with Planckton Data on the Energy Tech Startups Podcast:

Hosted by Jason Ethier and Nada Ahmed, the Digital Wildcatters’ podcast, Energy Tech Startups, delves into Houston's pivotal role in the energy transition, spotlighting entrepreneurs and industry leaders shaping a low-carbon future.


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