Five Point Energy closed its oversubscribed Five Point Energy Fund IV at $1.4 billion. Photo via Getty Images

A local private equity firm announced its latest round of funding that it plans on deploying into the energy transition infrastructure space.

Five Point Energy closed its oversubscribed Five Point Energy Fund IV at $1.4 billion in cumulative capital commitments. The new fund continues the firm's strategy of deploying capital into "an undercapitalized market and attractive long-term value generation," per a news release.

The firm is led by David Capobianco, CEO and managing partner, and Matthew Morrow, COO and managing partner.

"The closing of Fund IV is an endorsement of our team's demonstrated strategy of establishing and operating best-in-class sustainable infrastructure platforms, including the highly successful initial public offering of LandBridge," Capobianco says in the release.

Since its founding in 2012, Five Point has worked in midstream water management systems and addressed the produced water needs of our blue-chip clients, Capobianco says, adding that "the demand for energy, land and water resources is accelerating by the day, across all industries – we sit at the intersection of these macro and infrastructure trends."

To date, Five Point has raised around $4 billion across four funds. The fourth fund's limited partners were not disclosed.

The firm is led by David Capobianco (left), CEO and managing partner, and Matthew Morrow, COO and managing partner. Photos via fivepointenergy.com

This major project will include net-zero hydrogen production to be used onsite to fuel a microgrid, greenhouses, and more. Image courtesy of Fidelis New Energy

Houston company selects site for net-zero hydrogen production facility, low-carbon microgrid

major move

A Houston-based energy transition infrastructure firm has announced where it's planning to build a multiple-phase project that will produce carbon-neutral hydrogen and run a low-carbon microgrid.

Fidelis New Energy selected Mason County, West Virginia, as the site for its carbon neutral hydrogen production facility and low carbon microgrid —The Mountaineer GigaSystem and the Monarch Cloud Campus for data centers powered by net-zero hydrogen.

The facility will be using the company's the proprietary tech, called the FidelisH2, that produces hydrogen using "a combination of natural gas, renewable energy, and carbon capture, utilization, and sequestration," according to a news release.

The four-phase project is estimated to cost $2 billion per phase and will produce over 500 metric tons per day of net-zero carbon hydrogen. The first phase is expected to be completed in 2028.

"I am beyond excited that West Virginia will be the home of the Mountaineer GigaSystem and Monarch Cloud Campus," West Virginia Governor Jim Justice says in a news release. "West Virginia has a long history as an energy powerhouse for our nation, thanks to our hardworking people who know how to get the job done. And now, we're in a great position to make the most of a new fuel – hydrogen – through this incredible project in Mason County.

"There's simply no doubt that Fidelis is going to help shape the future of West Virginia in a major, major way by assisting in the commercial lift-off of some truly exciting new industries," he continues.

The project includes an incentive package from the West Virginia Department of Economic Development.

"The project's four-phase construction plan will not only provide substantial employment opportunities for the local workforce, with 800 full-time jobs and 4,200 construction workers, but it will also have a major positive impact on the region's economy," John Musgrave, the executive director of the Mason County Development Authority, says in the release. "The influx of workers and the establishment of the facility will bring additional business, industry, and new technology to Mason County, the state, and the surrounding region."

In addition to the hydrogen-producing FidelisH2 tool, Fidelis's suite of technologies includes H2PowerCool, which powers and cools data centers, and CO2PowerGrow, which is used for greenhouses to decarbonize and lower the cost of food production.

The new collaborative project is a rising amid the region's bid in the U.S. Department of Energy’s Office of Clean Energy Demonstrations for the regional clean hydrogen hub Funding Opportunity Announcement. The bid, called the Appalachian Regional Clean Hydrogen Hub, or ARCH2, was submitted earlier this year by a multi-state effort.

"Our proprietary net-zero solutions using only proven technologies are attracting significant commercial interest from hydrogen users, data center operators, and greenhouse owners," Bengt Jarlsjo, co-founder, president, and COO at Fidelis, says in the release. "This helps the ARCH2 hub to achieve scale across the hydrogen lifecycle from production through consumption."

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Oxy inks long-term agreements for 2M tons of CO2 capture, transport

carbon contracts

Houston-based Occidental has made two long-term agreements that will expand its carbon management business in the Delaware Basin and the Permian Basin.

Oxy announced Nov. 9 that it has signed agreements with two unnamed project developers to capture and transport approximately 2 million metric tons of CO2 from their existing and new natural gas processing facilities in the Delaware Basin in West Texas annually. The CO2 will be transported for use in Oxy's enhanced oil recovery (EOR) operations in the Permian Basin.

“Securing reliable, long-term sources of CO2 supports Occidental’s advanced recovery strategy to extend the productive life of existing fields and enhance recovery across our conventional and unconventional resource base,” Vishal Gupta, president and general manager of EOR Ventures at Occidental, said in a news release. “The projects, once operational, will help diversify our CO2 supply, improve access to cost-effective resources and create infrastructure that can connect additional carbon capture projects over time. Federal 45Q incentives are an important support for these investments.”

According to the release, the projects have the potential to expand to handle up to 4 million metric tons of C02 per year combined. The first shipments to Oxy are expected in 2029. The unnamed developers will fund and build the infrastructure to capture, transport and deliver the CO2 to Oxy, the company shared in the release.

Additionally, the agreement stipulates that the projects will also include the build-out of nearly 100 miles of new CO2 pipeline infrastructure. The new pipeline is planned to connect with the existing CO2 pipeline network in the Permian Basin. Oxy adds that the pipelines are being designed to handle additional future capacity to "support future conventional and unconventional recovery opportunities" of CO2.

Oxy uses the EOR process to inject stored CO2 back into a producing oil fields to boost the site's performance. The recycled CO2 displaces trapped oil and gas and is then secured in the reservoir. Oxy says that EOR combined with Direct Air Capture (DAC) technology "remove[s] an amount of CO2 equivalent to that emitted during the production and consumption of [its] products."

Oxy subsidiary 1PointFive is developing a $1.3 billion DAC project in the Midland-Odessa area that is slated to be the largest facility of its kind in the world. Known as STRATOS, it's designed to capture up to 500,000 metric tons of CO2 per year. After a component delay, 1PointFive shared in May that it would ramp up operations at the project throughout 2026.

Houston researchers win prestigious DOE early career awards

Researchers at Rice University, the University of Houston and other Texas universities have been awarded the Department of Energy’s Early Career Award for their work in quantum science, AI and more.

Each professor who received the honor will be awarded $875,000 over five years to continue their work.

The Houston-area recipients include:

  • James Shee, assistant professor of chemistry at Rice University
  • Tony Geng, assistant professor of electrical and computer engineering at Rice
  • Naihao Chiang, assistant professor in the department of chemistry at the University of Houston

For Shee, the award will support his work to advance a “first principles platform to simulate the quantum dynamics of chemical systems of relevance to sustainable energy consumption and generation,” according to a news release from Rice.

“Support from the Department of Energy will enable my group to pursue the ambitious quantum chemistry development required to simulate the dynamics of transition metal-based molecular computing paradigms and multi-excitonic processes in a purely ab initio manner,” Shee said in the release.

Geng is developing next-generation AI for real-time digital twins for scientific systems. Geng and his team will make microchips that function as trainable electronic dynamical systems computing through natural, continuous evolution rather than digital instructions, according to the university.

Chiang’s work at UH addresses the DOE’s Quantum Information Science priority. Chiang leads a team that develops and applies “plasmonic-enhanced near-field optical techniques” to investigate fundamental light-matter interactions at the quantum limit before applying them to emerging technologies. In addition, the team will use AI to help with data acquisition and will utilize STEM workforce development.

Dr. Joshua Burby, an assistant professor in the Department of Physics at the University of Texas at Austin, and Junyeong Ahn, who is part of the University’s Texas Quantum Institute, also received early career awards for their work in superconducting and fusion technologies. See the full list of recipients from around the country here.

“The energy and creativity of early-career scientists is crucial for propelling scientific discovery forward. The Department of Energy is committed to nurturing this talent through programs like the Early Career Research Program,” Darío Gil, DOE under secretary for science, added in a release. “These awards provide essential resources and opportunities for collaboration, enabling these researchers to explore novel concepts and accelerate the development of solutions for our nation’s energy and scientific landscape.”

The DOE has also doled out funding to Houston researchers and companies in recent months through its Genesis Mission and geothermal initiatives.

Researchers from Rice, UH and Halliburton were named in July among the nearly 300 projects selected under the Trump administration's Genesis Mission, which aims to address some of the largest science and technology challenges in the country

In September, three Houston companies also received more than $45 million in funding from the DOE's Next-Generation Geothermal Field Tests and Geothermal Resource Characterization and Confirmation initiative to advance geothermal technologies and field tests. The projects were among 21 selected from around the country to receive a total of $99 million. Read more here.

Elon Musk's Tesla to cease cybertruck production in 2027

Tesla Talk

Tesla’s Cybertruck, the hulking, stainless-steel pickup that inspired devotion and derision with its science-fiction looks, will cease production next year.

CEO Elon Musk announced the model’s demise Friday, November 6, with a curt post on X, his social media site, simply noting production of the vehicle “will be winding down” around the middle of 2027 at its facility outside Austin, Texas. Musk said the move was to allow increased production of its Cybercab robotaxi.

For the Cybertruck, a pet project of Musk who insisted it was Tesla’s best product, it marks an unceremonious end to one of the auto industry’s most ballyhooed debuts.

“Few vehicles in history have generated as much attention,” said Armen Hareyan, whose Torque News site covers autos. “The Cybertruck became a cultural symbol – loved, mocked and impossible to ignore.”

The Cybertruck rolled onto the scene in a dramatic unveiling in 2019, when a Tesla designer hurled a metal ball at the vehicle to demonstrate its supposedly unbreakable glass, only to see it shatter. He repeated the stunt on another window of the truck only to shatter that one, too.

Even as some critics scoffed, Musk was steadfast.

“I just wanted to make a futuristic battle tank — something that looks like it could come out of ‘Blade Runner’ or ‘Aliens’ or something like that but was also highly functional,” he told Automotive News. He called it “a better sports car than a Porsche 911” and “a better truck than an F-150.”

It struck some as the perfect vehicular reflection of the brash, convention-busting Musk.

“A really controversial vehicle unveiled by a controversial individual into a market where none of the electric trucks have been able to really capture demand,” said Spencer Penn, a former Tesla executive who left the company before the Cybertruck’s launch and now heads software developer LightSource.

Penn remembered watching the unveiling and feeling initially revolted by the sight of the Cybertruck, calling its appearance “madness.” But the more he looked at it, the more his opinion changed. He signed up for a pre-sale reservation, though ended up not getting a Cybertruck when Musk’s promises of a price tag under $40,000 went unmet and the first trucks sold for double or more. Penn called the Cybertruck part of Tesla’s adventurous spirit that drives innovation.

“Some of these bets work and some of these bets don’t,” he said.

While the decision to end Cybertruck production may be driven by sales realities, it's also a reflection of Tesla’s shift to autonomous vehicles, on which Musk is betting the company’s future.

Musk once forecast he’d make 250,000 Cybertrucks a year. Kelley Blue Book estimated Tesla sold just 20,237 of the vehicles last year, down about half from the year prior. Sales through the end of September this year were down another 28%, according to Kelley Blue Book.

If the imposing, sharp-angled, dystopian appearance of the Cybertruck weren’t enough to turn many potential buyers away, Musk did so himself by allying with a panoply of right-wing figures, most notably U.S. President Donald Trump. He alienated some customers as his image morphed from eccentric innovator to polarizing force trading his billions for political influence.

Once-passionate Tesla drivers rushed to sell off their cars, or slapped stickers on the bumper declaring, “I bought this before Elon went crazy.” Organizers staged demonstrations outside Tesla showrooms and urged investors to dump shares of the company’s stock. Anger spilled into violence, with Molotov cocktails hurled at Tesla vehicles, charging stations set ablaze, and dealerships covered in graffiti.

Lovers of the Cybertruck became targets, too, subjected to shouts of “Nazi!” and extended middle fingers.

Ross Blankenship is one of them. When he first laid eyes on the Cybertruck, he felt transported to a world from his childhood, when he would play “Halo,” the sci-fi video game. He had to have it.

“I had that sort of child in me wanting to be part of something cool that would change the future of automotive,” Blankenship said in a call from his Cybertruck as he drove through Sunnyside, Colorado. Even as Blankenship found he agreed with Musk on politics, he hated seeing a vehicle he loved turned into a political symbol. “I never bought it for any other reason than the fascination with the future technology of trucks … so that was a little heartbreaking.”

He would buy another Cybertruck again in a heartbeat, calling its end “a sad moment.”