The Texas Climate Tech Collective issued its 2023 report tracking Houston's progress as a climatetech hub. Photo via Getty Images

Three Houston energy tech innovators sought to quantify Houston's growth as an energy tech ecosystem, and, after 200 survey respondents and dozens of interviews, they've created six calls to action for the city.

Taylor Chapman, Gabe Malek, and Deanna Zhang created the Texas Climate Tech Collective to issue the Houston's Climate Tech Ecosystem 2023 report. The trio revealed some of its key takeaways at Greentown Houston's Climatetech Summit last month.

"We wanted to understand how the city has evolved," Malek, who's also chief of staff at Fervo Energy, said at the event. "We went into this project with a shared belief that Houston has unique characteristics that set it apart from the other cities thinking about climate, and if we could really lean into those characteristics, develop them, and amplify them, we could help grow the ecosystem in Houston and build climate solutions ... to accelerate the energy transition."

The full report, which is available online, highlighted six key takeaways paired with six action items.

1. "Houston has a perception problem."

Houston is known as a leader in the energy industry, which positions it well in a lot of ways, but in other ways, as Zhang points out, Houston might be being left out.

"People in this community like to talk about energy because we are the energy capital of the world, so we use a lot of energy-centric terms," she says, using "energy transition" as an example. "We don't use the word climate enough."

It might just be semantics, but it could be a reason the city isn't as regarded as a climatetech leader.

"If other ecosystems are using 'climate' and 'climatetech,' we need to be using these terms," she continues. "It's like SEO but for the ecosystem."

2. "Houston needs more risk capital, especially at the earlier stages." 

Money is a huge factor, which comes as no surprise. While the city has a lot of corporations and private equity here, as Zhang explains, there seems to be room for improvement for early-stage resources.

"If you're a founder raising pre-seed, seed, or even series A, often times you have to go outside of Houston to meet those investors," she says.

According to the report, about half of survey respondents chose "access to venture capital" as one of the biggest challenges facing the ecosystem.

3. "Houston’s startup scene has improved radically."

The report found that 80 percent of responders agreed to the statement: “the ecosystem has improved dramatically over the last 5 years.” Meanwhile, 75 percent of respondents agreed that “Houston is more innovative than outsiders perceive it to be."

So what's holding the city back? According to the collective, "Shameless self-promotion of ecosystem accomplishments."

"We need to be shouting from the rooftops what is happening in this city. It's really a PR game," Zhang says.

4. "Houston’s energy resources and infrastructure have massive potential to create change, but are underutilized by the climate ecosystem."

The collective and survey respondents acknowledge that Houston has a lot of infrastructure already in place, but the call to action is for coordination of these resources.

"Greentown, Ion, Halliburton Labs, HETI — the list goes on and on, but people don't know where to start," Chapman says.

The report says the city's resources are "woefully undertapped" and "29 percent of respondents highlighted partnerships, coordination of existing assets, and Houston’s own future investments in infrastructure as potential accelerants to growth."

5. "Houston’s strong workforce and human capital are one of its greatest strengths – and it should be investing in transitioning that workforce to new opportunities."

Cultivating the workforce for the energy transition needs to be a major priority, according to the collective. The city has a talented workforce for engineering, technical, and project management talent.

"How do we reach and transition this workforce?" Chapman asks. "It's a huge opportunity and critical for Houston to ensure that its economic development continues to grow."

6. "Houston knows how to build...but needs to put expertise that towards climate innovation."

Houston as a major, sprawling city needs to continue to become "greener" in every way. While Chapman praises the city has done with its Climate Action Plan, Houston still lags other major cities like Los Angeles and New York in this way, per the report. Fourteen percent of respondents cited better climate-friendly infrastructure as a priority issue.

Chapman urged the audience to get involved locally to move the needle on more green initiatives for the city.

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Houston startup launches groundbreaking mineral hydrogen pilot

pilot project

Houston climatech company Vema Hydrogen recently completed drilling its first two pilot wells in Quebec for its Engineered Mineral Hydrogen (EMH) pilot. The company says the project is the first EMH pilot of its kind.

Vema’s EMH technology produces low-cost, high-purity hydrogen from subsurface rock formations. It has the capacity to support e-fuel and clean mobility industries and the shipping and air transport markets. The pilot project is the first field deployment of the company’s technology.

“This pilot will provide the critical data needed to validate Engineered Mineral Hydrogen at commercial scale and demonstrate that Quebec can lead the world in this emerging clean energy category,” Pierre Levin, CEO of Vema Hydrogen, said in a news release.

Levin added that the sample collected thus far in the pilot is “exactly what we expected, and is very promising for hydrogen yields.”

Through the pilot, Vema will collect core samples and begin subsurface analysis to evaluate fluid movement and monitor hydrogen production from the wells. The data collected from the pilot will shape Vema's plans for commercialization and provide documentation for proof of concept in the field, according to the news release.

“Vema Hydrogen perfectly embodies the spirit of the grey to green movement: transforming mining liabilities into drivers of innovation and ecological transition,” Ludovic Beauregard, circular economy commissioner at the Thetford Region Economic Development Corporation, added in the release.

“This project demonstrates that it is possible to reconcile the revitalization of mining regions, clean energy and sustainable economic development for these areas.”

In addition to its pilot in Canada, Vema also recently signed a 10-year hydrogen purchase and sale agreement with San Francisco-based Verne Power to supply clean hydrogen for data centers across California. The company was selected as a Qualified Supplier by The First Public Hydrogen Authority, which will allow it to supply clean hydrogen at scale to California’s municipalities, transit agencies and businesses through the FPH2 network.

Vema aims to produce Engineered Mineral Hydrogen for less than $1 per kilogram. The company, founded in 2024, is working toward a gigawatt-scale hydrogen supply in North America.

Houston startup wins funding through new Bezos Earth Fund initiative

global winner

A Houston-based climatech startup is one of the first 16 companies in the world to receive funding through a new partnership between The Bezos Earth Fund and The Earthshot Prize.

Mati Carbon will receive $100,000 through the Bezos Earth Fund’s Acceleration Initiative. The initiative will provide $4.8 million over three years to support climate and nature solutions startups. It's backed by The Bezos Earth Fund, which was founded through a $10 billion gift from Amazon founder Jeff Bezos and aims to "transform the fight against climate change."

The Acceleration Initiative will choose 16 startups each year from The Earthshot Prize’s global pool of nominations that were not selected as finalists. The Earthshot Prize, founded by Prince William, awards £1 million to five energy startups each year over a decade.

"The Earthshot Prize selects 15 finalists each year, but our wider pool of nominations represents a global pipeline of innovators and investable solutions that benefit both people and planet. Collaborating with the Bezos Earth Fund to support additional high-potential solutions is at the heart of commitment to working with partners who share our vision," Jason Knauf, CEO of The Earthshot Prize, said in a news release. "By combining our strengths to support 48 carefully selected grantees from The Earthshot Prize’s pool of nominations, our partnership with the Bezos Earth Fund means we will continue to drive systemic change beyond our annual Prize cycle, delivering real-world impact at scale and speed.”

Mati Carbon was founded in 2022 by co-directors Shantanu Agarwal and Rwitwika Bhattacharya. It removes carbon through its Enhanced Rock Weathering (ERW) program and works with agricultural farms in Africa and India. Mati Carbon says the farmers it partners with are some of the most vulnerable to the impacts of climate change.

"As one of the first 16 organizations selected, this support enables us to expand our operations, move faster and think bigger about the impact we can create," the company shared in a LinkedIn post.

The other grantees from around the world include:

  • Air Protein Inc.
  • Climatenza Solar
  • Instituto Floresta Viva
  • Forum Konservasi Leuser
  • Fundación Rewilding Argentina
  • Hyperion Robotics
  • InPlanet
  • Lasso
  • Mandai Nature
  • MERMAID
  • Asociación Conservacionista Misión Tiburón
  • Simple Planet
  • Snowchange Cooperative
  • tHEMEat Company
  • UP Catalyst

Mati Carbon also won the $50 million grand prize in the XPRIZE Carbon Removal competition, backed by Elon Musk’s charitable organization, The Musk Foundation, last year.

Texas' oil and gas foundation could boost its geothermal future, UH says

future of geothermal

Equipped with the proper policies and investments, Texas could capitalize on its oil and gas infrastructure and expertise to lead the U.S. in development of advanced geothermal power, a new University of Houston white paper says.

Drilling, reservoir development and subsurface engineering are among the Texas oil and gas industry’s capabilities that could translate to geothermal energy, according to a news release. Furthermore, oil and gas skills, data, technology and supply chains could help make geothermal power more cost-effective.

Up to 80 percent of the investment required for a geothermal project involves capacity and skills that are common in the oil and gas industry, the white paper points out.

Building on its existing oil-and-gas foundation, Texas could help accelerate production of geothermal energy, lower geothermal energy costs and create more jobs in the energy workforce, according to the news release.

The paper also highlights geothermal progress made by Houston-based companies Fervo Energy, Quaise Energy and Sage Geosystems, as well as Canada-based Eavor Technologies Inc.

UH’s Division of Energy published the white paper, Advanced Geothermal: Opportunities and Challenges, in partnership with the C.T. Bauer College of Business’ Gutierrez Energy Management Institute.

“Energy demand, especially electricity demand, is continuing to grow, and we need to develop new low-carbon energy sources to meet those needs,” Greg Bean, executive director of the institute and author of the white paper, said of geothermal’s potential.