Houston scores federal funding for energy transition projects — and more things to know this week. Photo via Getty Images

Editor's note: It's a new week — start it strong with three quick things to know in Houston's energy transition ecosystem: Federal funding deployed in Houston, a podcast to stream, and more.


Federal funding deals in HOU

DOE has granted funds big and small to Houston energy organizations. Photo via Getty Images

The big news last week was that a Houston-area project been announced as one of the seven regions to receive a part of the $7 billion in Bipartisan Infrastructure Law funding to advance domestic hydrogen production. President Biden and Energy Secretary Jennifer Granholm named the seven regions to receive funding in a White House statement on Friday, October 13. The Gulf Coast's project, HyVelocity Hydrogen Hub, will receive up to $1.2 billion — the most any hub will receive. Read more.

Also this month, the U.S. Department of Energy's Advanced Research Projects Agency-Energy deployed $10 million into three projects working on superconducting tape innovation. Two of these projects are based on research from the University of Houston. Superconductivity — found only in certain materials — is a focus point for the DOE because it allows for the conduction of direct electric current without resistance or energy loss. Read more.

Must-attend events

Upcoming events to put on your radar. Photo via Getty Images

Put these upcoming events on your radar.

  • October 30-31 — Fuze is a must-attend event for executives, investors, and founders serious about solving the energy crisis and boosting company efficiency. Learn more.
  • November 1 — The Greentown Labs Climatetech Summit 2023 will feature energy transition startups, thought leaders, and more both in person and online. Learn more.
  • November 8 — The Houston Innovation Awards will honor the city's startups, entrepreneurs, and ecosystem, including energy tech innovators. Learn more.

Today's listen: Energy Tech Startups

Rawand Rasheed, the CEO and founder of Helix Earth Technologies, joins the Energy Tech Startups podcast. Photo via LinkedIn

Excessive energy consumption in air conditioning systems is a pressing issue with far-reaching implications for carbon emissions and climate change.

Rawand Rasheed, the CEO and founder of Helix Earth Technologies, is at the forefront of addressing this challenge. With a distinguished background as an aerospace engineer with NASA, Rawand’s expertise is now channeled towards the built environment and heavy industries.

In a recent episode of Energy Tech Startups, we dive into how Rawand’s journey from space technology innovations is now revolutionizing energy consumption in air conditioning systems.


The HyVelocity Hub, representing the Gulf Coast region, will receive $1.2 billion to strengthen and further build out the region's hydrogen production. Photo via Getty Images

Houston-area selected among 7 regions for $7B federal hydrogen hub investment

HyVelocity

Not only has a Houston-area project been announced as one of the seven regions to receive a part of the $7 billion in Bipartisan Infrastructure Law funding to advance domestic hydrogen production — but the Bayou City is getting one of the largest pieces of the pie.

President Biden and Energy Secretary Jennifer Granholm named the seven regions to receive funding in a White House statement today. The Gulf Coast's project, HyVelocity Hydrogen Hub, will receive up to $1.2 billion — the most any hub will receive, per the release.

“As I’ve stated repeatedly over the past years, we are uniquely positioned to lead a transformational clean hydrogen hub that will deliver economic growth and good jobs, including in historically underserved communities," Houston Mayor Sylvester Turner says in a news release. "HyVelocity will also help scale up national and world clean hydrogen economies, resulting in significant decarbonization gains. I’d also like to thank all the partners who came together to create HyVelocity Hub in a true spirit of public-private collaboration.”

Backed by industry partners AES Corporation, Air Liquide, Chevron, ExxonMobil, Mitsubishi Power Americas, Ørsted, and Sempra Infrastructure, the HyVelocity Hydrogen Hub will connect more than 1,000 miles of hydrogen pipelines, 48 hydrogen production facilities, and dozens of hydrogen end-use applications across Texas and Southwest Louisiana. The hub is planning for large-scale hydrogen production through both natural gas with carbon capture and renewables-powered electrolysis.

The project is spearheaded by GTI Energy and other organizing participants, including the University of Texas at Austin, The Center for Houston’s Future, Houston Advanced Research Center, and around 90 other supporting partners from academia, industry, government, and beyond.

“Prioritizing strong community engagement and demonstrating an innovation ecosystem, the HyVelocity Hub will improve local air quality and create equitable access to clean, reliable, affordable energy for communities across the Gulf Coast region,” says Paula A. Gant, president and CEO of GTI Energy, in a news release.

According to the White House's announcement, the hub will create 45,000 direct jobs — 35,000 in construction jobs and 10,000 permanent jobs. The other selected hubs — and the impact they are expected to have, include:

  • Tied with HyVelocity in terms of funding amount, the California Hydrogen Hub — Alliance for Renewable Clean Hydrogen Energy Systems (ARCHES) — will also receive up to $1.2 billion to create 220,000 direct jobs—130,000 in construction jobs and 90,000 permanent jobs. The project is expected to target decarbonizing public transportation, heavy duty trucking, and port operations.
  • The Midwest Alliance for Clean Hydrogen (MachH2), spanning Illinois, Indiana, and Michigan, will receive up to $1 billion. This region's efforts will be directed at optimizing hydrogen use in steel and glass production, power generation, refining, heavy-duty transportation, and sustainable aviation fuel. It's expected to create 13,600 direct jobs—12,100 in construction jobs and 1,500 permanent jobs.
  • Receiving up to $1 billion and targeting Washington, Oregon, and Montana, the Pacific Northwest Hydrogen Hub — named PNW H2— will produce clean hydrogen from renewable sources and will create over 10,000 direct jobs—8,050 in construction jobs and 350 permanent jobs.
  • The Appalachian Regional Clean Hydrogen Hub (ARCH2), which will be located in West Virginia, Ohio, and Pennsylvania, will tap into existing infrastructure to use low-cost natural gas to produce low-cost clean hydrogen and permanently and safely store the associated carbon emissions. The project, which will receive up to $925 million, will create 21,000 direct jobs—including more than 18,000 in construction and more than 3,000 permanent jobs.
  • Spanning Minnesota, North Dakota, and South Dakota, the Heartland Hydrogen Hub will receive up to $925 million and create around 3,880 direct jobs–3,067 in construction jobs and 703 permanent jobs — to decarbonize the agricultural sector’s production of fertilizer, decrease the regional cost of clean hydrogen, and advance hydrogen use in electric generation and for cold climate space heating.
  • Lastly, the Mid-Atlantic Clean Hydrogen Hub (MACH2), which will include Pennsylvania, Delaware, and New Jersey, hopes to repurposing historic oil infrastructure to develop renewable hydrogen production facilities from renewable and nuclear electricity. The hub, which will receive up to $750 million, anticipates creating 20,800 direct jobs—14,400 in construction jobs and 6,400 permanent jobs.

These seven clean hydrogen hubs are expected to catalyze more than $40 billion in private investment, per the White house, and bring the total public and private investment in hydrogen hubs to nearly $50 billion. Collectively, they aim to produce more than three million metric tons of clean hydrogen annually — which reaches nearly one third of the 2030 U.S. clean hydrogen production goal. Additionally, the hubs will eliminate 25 million metric tons of carbon dioxide emissions from end uses each year. That's roughly equivalent to annual emissions of over 5.5 million gasoline-powered cars.

“Unlocking the full potential of hydrogen—a versatile fuel that can be made from almost any energy resource in virtually every part of the country—is crucial to achieving President Biden’s goal of American industry powered by American clean energy, ensuring less volatility and more affordable clean energy options for American families and businesses,” U.S. Secretary of Energy Jennifer M. Granholm says in the release. “With this historic investment, the Biden-Harris Administration is laying the foundation for a new, American-led industry that will propel the global clean energy transition while creating high quality jobs and delivering healthier communities in every pocket of the nation.”

HyVelocity has been a vision amongst Houston energy leaders for over a year, announcing its bid for regional hydrogen hub funding last November. Another Houston-based clean energy project was recently named a semi-finalist for National Science Foundation funding.

“We are excited to get to work making HyVelocity come to life,” Brett Perlman, president and CEO of Center for Houston’s Future, says in the release. “We look forward to spurring economic growth and development, creating jobs, and reducing emissions in ways that will benefit local communities and the Gulf Coast region as a whole. HyVelocity will be a model for creating a clean hydrogen ecosystem in an inclusive and equitable manner.”

Ad Placement 300x100
Ad Placement 300x600

CultureMap Emails are Awesome

Houston-based Syzygy lands global customer for first commercial SAF plant

clean fuel deal

Houston-based Syzygy Plasmonics has secured a major future customer for its sustainable aviation fuel.

Syzygy announced this week that it has entered into a capacity reservation agreement with World Fuel Services, a global fuel distribution and logistics company.

Through the deal, World Fuel has reserved a portion of Syzygy's SAF production for future plants slated for Central and South America. The clean fuel will be produced at Syzygy’s NovaSAF-1 facility in Uruguay, which is moving toward construction.

The NovaSAF-1 will be the world's first electrified facility to convert biogas into sustainable aviation fuel (SAF). The facility is expected to produce over 350,000 gallons of SAF annually, which would be considered “a breakthrough in cost-effective, scalable clean fuel,” according to Syzygy.

The facility is expected to produce SAF with at least an 80 percent reduction in carbon intensity compared to Jet A fuel and make its first deliveries in 2028.

"Following NovaSAF-1, this agreement reflects continued interest in scalable pathways for producing SAF from biogas," Trevor Best, CEO of Syzygy Plasmonics, said in a news release. "Our NovaSAF platform is designed to deliver cost-competitive fuel while supporting the aviation sector's evolving regulatory and sustainability requirements."

Syzygy will make a portion of future production capacity available to World Fuel from its planned facilities, subject to the development and completion of those projects, according to the deal.

"We continue to evaluate supply opportunities that support increased access to lower carbon fuels in aviation, in line with emerging regulatory requirements and customer demand," Michael Ranger, senior vice president of supply EMEAA at World Fuel, added in the release. "Arrangements such as this are part of our ongoing efforts across the supply chain.”

Syzygy also secured an offtake agreement with Singapore-based commodity company Trafigura from NovaSAF-1 earlier this year.

Texas Gov. Abbott seeks data center crackdown as state grapples with growing power demand

growing pains

Just seven months ago, Gov. Greg Abbott trumpeted Google’s $40 billion plan to add three data center campuses in Texas. Now, amid growing public outcry over such projects, Abbott is pushing for a regulatory crackdown on data centers in the Lone Star State.

Abbott recently sent a letter to leaders of the Public Utility Commission of Texas (PUC) and the Electric Reliability Council of Texas (ERCOT) proposing stricter oversight of the state’s data centers. Texas is home to more than 400 data centers, with many more on the way, and is poised to become the world’s largest data center market.

Among other things, Abbott wants to:

  • Ensure residential electric bills go down — not up — as data centers connect to ERCOT’s grid, which supplies power for about 90 percent of Texans.
  • Require data centers to cover the costs of upgrades to deliver electricity to the power-hungry facilities.
  • Repeal sales tax exemptions and other “outdated or unnecessary” financial incentives for data centers.
  • Institute “best practices,” such as property setbacks and noise-reduction technology, to ease the impact of data centers on nearby residents.
  • Demand that all new data centers, which use a tremendous amount of water, be built with water-efficient technology.
  • Require large data centers to generate annual reports on their use of electricity and water.

Abbott has set a July 17 deadline for the PUC and ERCOT to address his recommendations.

“As Texas continues to welcome innovation and investment, we must ensure that growth strengthens our people and their quality of life without placing undue burdens on Texans and local communities,” Abbott wrote.

Abbott’s call for tighter control of data centers has elicited both praise and skepticism.

In a social media post on X, Texas House Speaker Dustin Burrows, a Lubbock Republican, thanked Abbott for seeking “accountability and reform” in the state’s data center industry. Burrows has made data centers one of his priority issues for the 2027 state legislative session.

State oil and gas regulator Wayne Christian, a member of the Texas Railroad Commission, weighed in with similarly positive comments about Abbott’s directive. He says an outright ban on data centers isn’t the answer to residents’ complaints about new facilities.

“The Texas way is not to answer innovation with government overreach or fear-driven bans,” Christian, whose agency wasn’t cited in Abbott’s letter, said in a statement posted on X. “Our job is to protect prosperity, safeguard taxpayers and ensure the infrastructure that powers our economy remains strong and reliable.”

Gina Hinojosa, an Austin Democrat who’s challenging Abbott in this November’s gubernatorial race, took issue with the governor’s edict on data centers.

“Greg Abbott is changing his tune on data centers because he knows his policies are unpopular,” Hinojosa, a state representative, wrote on X. “Nobody believes the arsonist is gonna be the one to put out the fire.”

Abbott’s call for stepped-up regulation of data centers echoes many of the concerns expressed by the state chapter of the Sierra Club, an environmental nonprofit.

“The growth of data centers reflects a broader transformation taking place across Texas,” the Sierra Club says on its website. “The state is becoming a hub for the technologies that will shape the future economy, from artificial intelligence to advanced computing and cloud services. At the same time, Texans deserve transparency about how these projects affect the communities where they are built.”

Fervo promotes strategy leader to COO as flagship geothermal project nears launch

new leader

Houston geothermal unicorn Fervo Energy has named Sarah Jewett as its new COO.

Jewett steps into the role as the company prepares for its flagship Cape Station geothermal project to deliver its first power later this year.

Jewett joined Fervo in 2020 as director of strategy and most recently served as the company's senior vice president of strategy. She spoke with HETI on the potential of geothermal energy in 2024.

Before Fervo, Jewett served as senior director of corporate development for Houston-based Select Energy Services. She ran hydraulic fracturing crews for Schlumberger in the Permian Basin and Alaska's North Slope early in her career.

In the COO role, Jewett is tasked with creating "the centralized infrastructure required to execute on what the company believes is the most significant commercial opportunity for clean, firm power in history," according to a company release.

“What Sarah has built over the last six years has been foundational to the company’s success. From the time she joined, she has brought an unwavering people-first mindset and outstanding dedication to building things that last,” Tim Latimer, CEO and co-founder of Fervo, added in the release. “As we move into the next phase of our growth, there is no better person to lead the operating core of this company.”

Jewett holds an MBA from Harvard Business School and a bachelor's degree in mechanical engineering from Dartmouth College.

Fervo announced the addition of four heavyweights to its board of directors this spring, including Meg Whitman, former CEO of eBay, Hewlett-Packard, and Spring-based HPE. Shortly after, the company filed for its highly anticipated $1 billion-plus IPO. Read more here.