Can Houston stay a leader in the future of energy? Scott Nyquist weighs in. Photo via Getty Images

Houston has a legacy in in the energy industry — but can it remain the energy capital of the world? In short, yes.

That may sound counterintuitive, given that the energy system is transitioning — slowly, but inexorably — away from the city’s strengths in oil and gas. But that is the point: to an extent that may be overlooked, the O&G industry is critical to the transition, in two ways. Houston is well placed to take the lead on both.

First, there is the simple fact that oil and gas are essential, and will be for decades to come. About 99 percent of vehicles on the road right now use fossil fuels, and there are no readily available substitutes for their uses as feedstock for other industries, such as chemicals. Oil and gas account for almost 70 percent of US primary energy demand.

I do believe that their influence will diminish, as the energy system transitions to cleaner, lower-emission sources. McKinsey’s most recent Global Energy Perspective projected demand for oil will peak by 2027 and for gas a decade later. The International Energy Agency (IEA) sees the same evolution, but somewhat more slowly. Even after demand peaks, whenever that is, oil and gas will still be used, just not as much. I don’t see any reasonable scenario in which oil and gas disappears or is left in the ground for decades to come.

Second, and more interestingly, the O&G industry itself is essential to the goal of reducing greenhouse-gas emissions. If that sounds counterintuitive, too—well, it is. But bear with me. Under almost all emissions-reduction scenarios, carbon capture and storage (CCS), including direct air capture, and hydrogen play huge roles--accounting for more than 20 percent of future cuts in the IEA’s projection, for example. The Intergovernmental Panel on Climate Change also sees a big role for CCS, while noting that “global rates of CCS deployment are far below those in modelled pathways limiting global warming to 1.5°C or 2°C.” In other words, it matters, and there’s not enough of it. Hydrogen has been many people’s favorite technology of the future since at least the 1990s; the World Energy Council says it could account for as much as 25 percent of total final energy consumption by 2050, though likely less.

Let’s consider CCS first. This refers to reducing carbon-dioxide (CO2) emissions, particularly from industry, by capturing it on-site and then storing it underground: it is therefore never released into the atmosphere. Direct air capture sucks out carbon from the atmosphere, and then stores it. There is more than enough storage capacity, according to the IEA, and the technologies work.

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Credit: Global CCS Institute

The problem has been regulation and economics—CCS is relatively expensive. About half of US emissions come from power generation and industry, such as cement; carbon capture works for both. And that is just what is possible now. Eventually, captured CO2 could be used to make a wide array of products, including building materials, carbon fiber, synthetic fuels, and plastics.

The Biden Administration is allocating $3.5 billion for direct air capture projects and $8 billion for hydrogen; those are not huge sums, given how costly large-scale energy projects are, but it just might be the beginning of bigger things. In addition, companies that have committed to net zero are beginning to put serious money behind carbon capture—almost $2 billion so far this year, compared to just $50 million in the past.

All this is relevant to Houston because Texas is the largest single US producer of both oil and gas, and these are the only players that now routinely use CCS, for gas processing and enhanced oil recovery. Houston is, by far, the national leader in carbon capture. Moreover, CCS can help to scale up “blue” or lower-emissions hydrogen, which could be an even bigger opportunity.

Hydrogen is not a source of energy, but a carrier of it. Once the hydrogen is produced—that is, separated from other elements, such as the oxygen in water—it can be stored and then released, either through combustion or via a fuel cell that converts hydrogen into electricity. Hydrogen could be used in a wide variety of ways, including powering vehicles, heating buildings, and fueling industry. Indeed, its potential is so broad and deep that the Hydrogen Council (with help from McKinsey) estimated late last year that hydrogen could contribute more than 20 percent of emissions abatement to 2050. The Council is a trade group and may therefore be a little optimistic (or a lot), but no one questions the potential of hydrogen in cutting emissions.

Right now, the primary use of hydrogen is in oil refining, which is one of Houston’s major industries. In addition, O&G companies are already looking into the conversion of methane in natural gas to hydrogen as well as the possibility of blending hydrogen into natural gas to lower the carbon content.

The Houston region already produces and consumes a third of the nation’s hydrogen, and is home to most of its dedicated hydrogen pipelines; its massive and efficient pipeline and transport system for gas can be adapted to move hydrogen. For the production of “green” or very-low emissions hydrogen, Houston also has a significant—and growing--renewable energy infrastructure. Indeed, if Texas was a country, it would be the world’s fifth-largest generator of wind power, and it is second in solar in the United States.

In short, when it comes to hydrogen, Houston is well ahead of the competitive pack, not only in physical terms, but in the human expertise that will count most of all to turn hydrogen from boutique to big. According to a recent report by the Center for Houston’s Future, Houston-based hydrogen assets could abate 220 million tons of carbon emissions by 2050, or more than half of Texas’s current emissions. Plus, it could create $100 billion in economic value.

The bottom line: there is no practical emissions reduction on the scale that the United States has committed to—net zero by 2050—without the development of CCS and hydrogen. And the O&G industry is leading the way in both these technologies. That puts Houston in an enviable position to both be part of the transition and to benefit from it. All told, according to the Houston Energy Transition Initiative, which includes 17 major energy-industry players, the region could gain up to 400,000 jobs in an accelerated scenario of adopting lower-carbon technologies. (McKinsey helped with this research, too.) To use a term beloved of consultants, that looks like a win-win.

Houston calls itself the “energy capital of the world”—and this isn’t a case of all hat and no cattle. The city is home to a critical mass of capital, innovation, expertise, and entrepreneurship. To continue to deserve that title, however, will require Houston to embrace the challenge of the energy transition: providing the reliable energy the world needs while also reducing emissions.

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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.

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Houston-area company leads Texas businesses on Time's most sustainable list

Spring-based IT company Hewlett Packard Enterprise leads the list of eight Texas businesses that appear in Time magazine’s and data provider Statista’s World’s Most Sustainable Companies list for 2025.

HPE landed at No. 68, earning a score of 74.36 out of 100.

Time and Statista said the ranking highlights corporate responsibility and promotes sustainable practices.

“In an era marked by significant environmental challenges and social inequalities, it is crucial to recognize and reward companies prioritizing sustainability,” according to an article on Time’s website. “By featuring these leading entities, the ranking sets a benchmark for other businesses, fostering transparency and accountability and encouraging the integration of sustainability into core corporate strategies.”

Time and Statista’s ranking process started with a list of more than 5,000 of the world’s largest, most influential companies based on factors such as revenue and public prominence. They identified the top 500 companies based on more than 20 data points.

The process weeded out non-sustainable businesses, such as those involved in producing fossil fuels, and zeroed in on:

  • External sustainability ratings
  • Availability and quality of sustainability reports
  • Performance regarding environmental and social responsibility measures

HPE is targeting net-zero status across its supply chain by 2040. Working toward that goal, the company predicts its carbon emissions will decrease by 33 percent from 2020 to 2028.

“The climate transition demands collective action across our entire value chain, and I am resolute in my commitment to ensure that HPE plays a central role in showcasing the attainability of net-zero emissions through our technologies and actions,” said Antonio Neri, HPE’s president and CEO.

Among the ways HPE is reducing carbon emissions are:

  • Shipping certain products in bigger bundles
  • Incorporating environmentally responsible design
  • Using more renewable energy
  • Improving energy efficiency in buildings
  • Eventually shifting to an all-electric automotive fleet

Here’s a rundown of the eight Texas-based companies that made the sustainability list, including their global rankings and scores.

  • No. 68 Spring-based Hewlett Packard Enterprise. Score: 74.36
  • No. 81 Dallas-based CBRE. Score: 73.49
  • No. 142 Dallas-based AMN Healthcare Services. Score: 69.8
  • No. 165 Austin-based Digital Realty. Score: 68.64
  • No. 257 Round Rock-based Dell Technologies. Score: 64.89
  • No. 295 Frisco-based Keurig Dr Pepper. Score: 63.25
  • No. 335 Dallas-based Jacobs Engineering. Score: 61.98
  • No. 471 Dallas-based AT&T. Score: 57.28

France-based Schneider Electric claimed the top spot on the global list. The company opened a 10,500-square-foot, state-of-the-art Energy Innovation Center in Houston earlier this year.

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.