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Houston is at the heart of an 'all of the above' energy transition strategy

the view from heti

Jane Stricker, executive director of HETI, on two years of the organization and the dual challenge the industry faces. Photo via GHP

As the Houston region continues to have important conversations about energy and climate in the energy capital of the world, it’s helpful to frame the discussion in terms of the dual challenge.

On one hand, our world needs energy companies across all sectors to continue to develop and deliver energy for all parts of the world – energy that is affordable and reliable and can enable the level of population and GDP growth anticipated over the next 30 years. At the same time, we need to find a way to significantly reduce the greenhouse gas emissions associated with the production and distribution of that energy to reduce the risks and impacts associated with climate change on our world.

As the global energy landscape continues to evolve – across the entire value chain, just in the two years since HETI was launched, there is an even greater urgency to leverage all available solutions to address the dual challenge.

We must be able to recognize that there is no silver bullet, no single technology and no single source of energy today that can get the world to net zero by 2050. However, that doesn’t mean we should give up. As the energy transition capital of the world, Houston continues to demonstrate that can lead in developing and deploying “all of the above” energy solutions needed to reach our ambitious goals.

With over 200 new cleantech and climatetech startups alongside some of the largest energy leaders who know how to scale technology, Houston is uniquely positioned to lead the way in technology development and commercial deployment to meet the dual challenge. Whether it’s implementing a carbon capture and storage project along Houston’s ship channel, piloting small modular nuclear reactor technology to enable zero carbon energy for chemical production in Seadrift, or converting an abandoned landfill in the middle of Houston’s Sunnyside community into the largest urban solar farm in the U.S. to create both zero carbon power and economic opportunity for the community, Houston is charging forward on all fronts to meet the dual challenge.

We cannot afford to sacrifice progress in search of a perfect solution, and Houston embraces this perspective in the way our region is coming together across the entire energy ecosystem to build on our leadership and lead the world to an energy-abundant, low-carbon future.

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This article originally ran on the Greater Houston Partnership's Houston Energy Transition Initiative blog. HETI exists to support Houston's future as an energy leader. For more information about the Houston Energy Transition Initiative, EnergyCapitalHTX's presenting sponsor, visit htxenergytransition.org.

Just what does 'energy transition' mean, anyway? Photo via Shutterstock

Defining ‘energy transition’ — and the semantics involved in it

Guest column

The term “energy transition” is fraught with misconceptions, but not just because of the varied interpretation of the term “transition.” The Energy101 series on EnergyCapitalHTX.com brings clarity to both terms with simple and direct information that anyone can understand. As explored in a previous conversation with ChatGPT, we are all part of the Energy Industry, so its high time we all understood it.

DEFINING TERMINOLOGY

Merriam-Webster defines transition as “a change or shift from one state, subject, place, etc. to another.” The popular interpretation of ‘energy transition’ implies a complete shift away from energy produced from fossil fuels to energy produced from renewable sources. This isn’t entirely accurate–let’s explore why.

“The challenge of our lifetime is addressing [the] dual challenge of meeting increased global energy demand while confronting global climate change” says Jane Stricker, executive director of the Houston Energy Transition Initiative and senior vice president, Greater Houston Partnership. This globally inclusive definition of ‘energy transition’ focuses on addressing objectives instead of proffering solutions–a common project management viewpoint through which opportunities are explored.

It's a simple, but effective, way to expand one’s line of thinking from acute problem solving to broader root-cause analysis. In other words, it is how we elevate from playing checkers to mastering chess.

DEFINING THE OPPORTUNITY

The United Nations tells us the world’s population reached 8 billion in late 2022, an increase of more than one billion people in just over a decade. During the same time frame, the number of people around the world without consistent access to electricity declined from approximately 1.2 billion to 775 million per the International Energy Agency (IEA) 2022 World Energy Outlook report. A commendable feat, no doubt, but the fact remains that about 10% of the world’s population still lives in energy poverty–and that number is increasing.

The first half of Stricker’s sentiment, the challenge of “meeting increased global energy demand” reflects these statistics, albeit almost poetically. To state the issue more plainly, one could ask, “how do we get more energy to more people?” Taking it one step further, we can split that inquiry into two basic questions: (1) how to get more energy, and (2) how to reach more people. This is where it gets interesting.

As explored in the inaugural Energy 101 article, energy is converted into usable form through one of three reactions. Mechanical and nuclear reactions that create electricity for immediate consumption are often deemed “cleaner” than those produced by chemical reaction, but the challenges of delivering more energy consistently and reaching more people are left shortchanged due to intermittent production and limited distribution mechanisms.

In recent history, this has left us to rely upon energy produced by chemical reactions from fossil fuels and/or batteries. Batteries have inherently been the more expensive option, mostly because of the limited supply of minerals necessary to effectively store and transport energy for later use in these contained systems. Hence, the heavy reliance on cheap fossil fuels.

REFINED CONSTRAINTS DEMAND NEW SOLUTIONS

With price as the determining factor influencing the modern world’s energy supply, oil and natural gas have scrambled to compete with coal, which is affordable and easily transportable. However, coal has one major drawback–using it accounts for approximately 20% of carbon emissions, more than oil and gas industrial use, combined, per calculations from the U.S. Energy Information Agency.

We have a duty to get more energy to more people, “while confronting global climate change,” as Stricker states. In the context of energy poverty, where more consistent access to more electricity needs to reach more people, energy needs not only be abundant, reliable, affordable, and accessible, but also, less toxic.

So far, we have yet to find a solution that meets all these conditions, so we have made trade-offs. The ‘energy transition’ merely reflects the energy industry’s latest acceptance of the next hurdle to enhance our lives on earth. As depicted by the image from the IEA below, it most certainly reflects a reduction in the reliance on coal for electricity production, but how that energy reduction will be off set remains yet to be determined.

It's an opportunity ripe for exploration while existing sources push to meet the expanding definition of sustainable energy–a shift in evaluation criteria, some might say. Perhaps even a transition.

Stacked chart showing demand of natural gas, coal, and oil from 1900 to 2050 (estimated)Demand for natural gas and oil are expected to level out, as demand for coal shrinks to meet goals for lower carbon emissions. Photo courtesy of IEA, license CC by 4.0Demand for natural gas and oil are expected to level out, as demand for coal shrinks to meet goals for lower carbon emissions. Photo courtesy of IEA, license CC by 4.0


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Lindsey Ferrell is a contributing writer to EnergyCapitalHTX and founder of Guerrella & Co.

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UH's $44 million mass timber building slashed energy use in first year

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The University of Houston recently completed assessments on year one of the first mass timber project on campus, and the results show it has had a major impact.

Known as the Retail, Auxiliary, and Dining Center, or RAD Center, the $44 million building showed an 84 percent reduction in predicted energy use intensity, a measure of how much energy a building uses relative to its size, compared to similar buildings. Its Global Warming Potential rating, a ratio determined by the Intergovernmental Panel on Climate Change, shows a 39 percent reduction compared to the benchmark for other buildings of its type.

In comparison to similar structures, the RAD Center saved the equivalent of taking 472 gasoline-powered cars driven for one year off the road, according to architecture firm Perkins & Will.

The RAD Center was created in alignment with the AIA 2030 Commitment to carbon-neutral buildings, designed by Perkins & Will and constructed by Houston-based general contractor Turner Construction.

Perkins & Will’s work reduced the building's carbon footprint by incorporating lighter mass timber structural systems, which allowed the RAD Center to reuse the foundation, columns and beams of the building it replaced. Reused elements account for 45 percent of the RAD Center’s total mass, according to Perkins & Will.

Mass timber is considered a sustainable alternative to steel and concrete construction. The RAD Center, a 41,000-square-foot development, replaced the once popular Satellite, which was a food, retail and hangout center for students on UH’s campus near the Science & Research Building 2 and the Jack J. Valenti School of Communication.

The RAD Center uses more than a million pounds of timber, which can store over 650 metric tons of CO2. Aesthetically, the building complements the surrounding campus woodlands and offers students a view both inside and out.

“Spaces are designed to create a sense of serenity and calm in an ecologically-minded environment,” Diego Rozo, a senior project manager and associate principal at Perkins & Will, said in a news release. “They were conceptually inspired by the notion of ‘unleashing the senses’ – the design celebrating different sights, sounds, smells and tastes alongside the tactile nature of the timber.”

In addition to its mass timber design, the building was also part of an Energy Use Intensity (EUI) reduction effort. It features high-performance insulation and barriers, natural light to illuminate a building's interior, efficient indoor lighting fixtures, and optimized equipment, including HVAC systems.

The RAD Center officially opened Phase I in Spring 2024. The third and final phase of construction is scheduled for this summer, with a planned opening set for the fall.

Experts on U.S. energy infrastructure, sustainability, and the future of data

Guest column

Digital infrastructure is the dominant theme in energy and infrastructure, real estate and technology markets.

Data, the byproduct and primary value generated by digital infrastructure, is referred to as “the fifth utility,” along with water, gas, electricity and telecommunications. Data is created, aggregated, stored, transmitted, shared, traded and sold. Data requires data centers. Data centers require energy. The United States is home to approximately 40% of the world's data centers. The U.S. is set to lead the world in digital infrastructure advancement and has an opportunity to lead on energy for a very long time.

Data centers consume vast amounts of electricity due to their computational and cooling requirements. According to the United States Department of Energy, data centers consume “10 to 50 times the energy per floor space of a typical commercial office building.” Lawrence Berkeley National Laboratory issued a report in December 2024 stating that U.S. data center energy use reached 176 TWh by 2023, “representing 4.4% of total U.S. electricity consumption.” This percentage will increase significantly with near-term investment into high performance computing (HPC) and artificial intelligence (AI). The markets recognize the need for digital infrastructure build-out and, developers, engineers, investors and asset owners are responding at an incredible clip.

However, the energy demands required to meet this digital load growth pose significant challenges to the U.S. power grid. Reliability and cost-efficiency have been, and will continue to be, two non-negotiable priorities of the legal, regulatory and quasi-regulatory regime overlaying the U.S. power grid.

Maintaining and improving reliability requires physical solutions. The grid must be perfectly balanced, with neither too little nor too much electricity at any given time. Specifically, new-build, physical power generation and transmission (a topic worthy of another article) projects must be built. To be sure, innovative financial products such as virtual power purchase agreements (VPPAs), hedges, environmental attributes, and other offtake strategies have been, and will continue to be, critical to growing the U.S. renewable energy markets and facilitating the energy transition, but the U.S. electrical grid needs to generate and move significantly more electrons to support the digital infrastructure transformation.

But there is now a third permanent priority: sustainability. New power generation over the next decade will include a mix of solar (large and small scale, offsite and onsite), wind and natural gas resources, with existing nuclear power, hydro, biomass, and geothermal remaining important in their respective regions.

Solar, in particular, will grow as a percentage of U.S grid generation. The Solar Energy Industries Association (SEIA) reported that solar added 50 gigawatts of new capacity to the U.S. grid in 2024, “the largest single year of new capacity added to the grid by an energy technology in over two decades.” Solar is leading, as it can be flexibly sized and sited.

Under-utilized technology such as carbon capture, utilization and storage (CCUS) will become more prominent. Hydrogen may be a potential game-changer in the medium-to-long-term. Further, a nuclear power renaissance (conventional and small modular reactor (SMR) technologies) appears to be real, with recent commitments from some of the largest companies in the world, led by technology companies. Nuclear is poised to be a part of a “net-zero” future in the United States, also in the medium-to-long term.

The transition from fossil fuels to zero carbon renewable energy is well on its way – this is undeniable – and will continue, regardless of U.S. political and market cycles. Along with reliability and cost efficiency, sustainability has become a permanent third leg of the U.S. power grid stool.

Sustainability is now non-negotiable. Corporate renewable and low carbon energy procurement is strong. State renewable portfolio standards (RPS) and clean energy standards (CES) have established aggressive goals. Domestic manufacturing of the equipment deployed in the U.S. is growing meaningfully and in politically diverse regions of the country. Solar, wind and batteries are increasing less expensive. But, perhaps more importantly, the grid needs as much renewable and low carbon power generation as possible - not in lieu of gas generation, but as an increasingly growing pairing with gas and other technologies. This is not an “R” or “D” issue (as we say in Washington), and it's not an “either, or” issue, it's good business and a physical necessity.

As a result, solar, wind and battery storage deployment, in particular, will continue to accelerate in the U.S. These clean technologies will inevitably become more efficient as the buildout in the U.S. increases, investments continue and technology advances.

At some point in the future (it won’t be in the 2020s, it could be in the 2030s, but, more realistically, in the 2040s), the U.S. will have achieved the remarkable – a truly modern (if not entirely overhauled) grid dependent largely on a mix of zero and low carbon power generation and storage technology. And when this happens, it will have been due in large part to the clean technology deployment and advances over the next 10 to 15 years resulting from the current digital infrastructure boom.

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Hans Dyke and Gabbie Hindera are lawyers at Bracewell. Dyke's experience includes transactions in the electric power and oil and gas midstream space, as well as transactions involving energy intensive industries such as data storage. Hindera focuses on mergers and acquisitions, joint ventures, and public and private capital market offerings.

Rice researchers' quantum breakthrough could pave the way for next-gen superconductors

new findings

A new study from researchers at Rice University, published in Nature Communications, could lead to future advances in superconductors with the potential to transform energy use.

The study revealed that electrons in strange metals, which exhibit unusual resistance to electricity and behave strangely at low temperatures, become more entangled at a specific tipping point, shedding new light on these materials.

A team led by Rice’s Qimiao Si, the Harry C. and Olga K. Wiess Professor of Physics and Astronomy, used quantum Fisher information (QFI), a concept from quantum metrology, to measure how electron interactions evolve under extreme conditions. The research team also included Rice’s Yuan Fang, Yiming Wang, Mounica Mahankali and Lei Chen along with Haoyu Hu of the Donostia International Physics Center and Silke Paschen of the Vienna University of Technology. Their work showed that the quantum phenomenon of electron entanglement peaks at a quantum critical point, which is the transition between two states of matter.

“Our findings reveal that strange metals exhibit a unique entanglement pattern, which offers a new lens to understand their exotic behavior,” Si said in a news release. “By leveraging quantum information theory, we are uncovering deep quantum correlations that were previously inaccessible.”

The researchers examined a theoretical framework known as the Kondo lattice, which explains how magnetic moments interact with surrounding electrons. At a critical transition point, these interactions intensify to the extent that the quasiparticles—key to understanding electrical behavior—disappear. Using QFI, the team traced this loss of quasiparticles to the growing entanglement of electron spins, which peaks precisely at the quantum critical point.

In terms of future use, the materials share a close connection with high-temperature superconductors, which have the potential to transmit electricity without energy loss, according to the researchers. By unblocking their properties, researchers believe this could revolutionize power grids and make energy transmission more efficient.

The team also found that quantum information tools can be applied to other “exotic materials” and quantum technologies.

“By integrating quantum information science with condensed matter physics, we are pivoting in a new direction in materials research,” Si said in the release.

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