In his conversation with S&P Global's Daniel Yergin, Bill Gates discussed AI, Texas as an energy transition hub, and more. Photo via CERAWeek

Bill Gates, renowned co-founder of Microsoft and founder of Breakthrough Energy, took the CERAWeek stage to a standing-room-only crowd to discuss his thoughts on the future of energy.

He was joined in conversation with Daniel Yergin, author and vice chairman of S&P Global, at the luncheon on Thursday, March 21. His remarks touched on three themes within the energy transition.

Texas as a hub for energy transition

Yergin started off the conversation inquiring about Gates and his recent tour around Texas, which included visiting energy companies' plants and facilities and their local communities. Though it might surprise people, given the history of oil and gas in the state, Texas has a strong presence in the energy transition, Gates says.

“There is some irony in the fact that so many of the capabilities to embrace (the energy transition) are here in Texas, whether it's the workforce or the permitting,” he says at the event.

Gates adds that while most of the portfolio companies at Breakthrough Energy were founded on the coasts, many turn to Texas when it comes time for their first commercial pilot.

He addressed a progress report on the energy transition as a whole.

“It’s really starting to move. There’s a lot of exciting technologies, and a lot of the big companies are coming in,” he says, specifically noting energy companies' presence at COP28.

“A heroic effort is beginning — I’m very excited about it. But we shouldn’t underestimate how difficult it will be,” he says. “There’s a lot of things that have to happen for these projects to go ahead. It’s far more difficult than anything I worked on at Microsoft.”

Steel and nuclear have big potential for disruption

Gates continued this thought but highlighting that some industries are less advanced than others.

“We’re just at the beginning of many things," he adds, noting that "the steel industry today is 99 percent the traditional process."

With that, steel has a lot of potential to be disrupted, and Breakthrough Energy has two companies working to make the industry greener, but it's an industry that's going to take time to evolve.

Nuclear is another sector Gates is excited about but is developing at a slower pace. Breakthrough Energy has five portfolio companies focused on Nuclear, including TerraPower, which Gates co-founded in 2006.

Despite nearly two decades of development, Gates says TerraPower is a "fast-moving" nuclear company in comparison to other companies out there.

AI's impact is still to be determined

The topic of artificial intelligence inevitably came up, and Gates explains that the technology has come a long way. Microsoft owns a portion of OpenAI, which created ChatGPT. Gates says he expected AI to evolve and to be able to be programmed to understand information to take longer to develop.

“We have achieved a threshold — an unusual threshold because we know how we’ve caused the knowledge represented, but we don’t understand how at a semantic level how that knowledge is being represented,” Gates says.

AI's current applications are within white collar activities, Gates explains, citing writing a regulatory permit or looking at evidence in a lawsuit. He explains that current AI capabilities could continually grow or remain stagnant for a while, he isn't sure.

"The thing that’s daunting is we don’t know how quickly it will improve," he adds.

Gates didn't comment on energy specific AI applications but noted that AI has advanced far past robotics, which would target blue collar roles.

Houston energy transition folks — here's what to know to start your week. Photo via Getty Images

Meet TEX-E's new exec, a deadline not to miss, and more Houston energy transition things to know

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Editor's note: Start your week off strong with three quick things to catch up on in Houston's energy transition: a roundup of events not to miss, a Houston energy executive to know, and more.

Calling all energy tech startups

The Rice Alliance for Technology and Entrepreneurship, the Houston Energy Transition Initiative (HETI) and TEX-E have opened applications for their Energy Venture Day and Pitch Competition at CERAWeek, set to take place in the Agora program on March 20.

The pitch day will feature more than 40 energy ventures driving efficiency and advancements toward the energy transition showcasing their companies. The fast-paced competition is designed to connect energy startups with venture capitalists, corporate innovation groups, industry leaders, academics and service providers.

Energy ventures for all tracks of the competition are asked to apply online by Feb. 9. Read more.

David Pruner named executive director of Texas Entrepreneurship Exchange for Energy (TEX-E)

David Pruner will lead the Texas Entrepreneurship Exchange for Energy, known as TEX-E, which is comprised of partners including Greentown Labs, MIT’s Martin Trust Center for Entrepreneurship, and universities across Texas. Additionally, Julia Johansson was appointed chief of staff for TEX-E and will oversee operations and administration responsibilities.

“Dave is the ideal leader for TEX-E to build on the great work that’s been done to develop a robust entrepreneurial energy ecosystem across these five impressive universities in Texas and to directly inspire and support university students to pursue entrepreneurial careers that will power our clean energy future,” Greentown Labs CEO and President Kevin Knobloch says in a news release. Read more.

Events not to miss

Put these Houston-area energy-related events on your calendar.

  • Future of Energy Summit is Tuesday, February 6, at AC Hotel by Marriott Houston Downtown. Register.
  • The De Lange Conference, taking place February 9 and 10 at Rice University's Baker Institute for Public Policy, is centered around the theme “Brave New Worlds: Who Decides? Research, Risk and Responsibility” this year. Register.

Here are three things to know in Houston energy transition news. Photo via Getty Images

Texas EV climate disappoints, a new renewable exec, and more Houston energy transition things to know

take note

Editor's note: Start your week off strong with three quick things to catch up on in Houston's energy transition: a roundup of events not to miss, a Houston energy executive to know, and more.

Needs improvement: Texas finishes low on list of EV charging stations despite increased efforts in Houston

A SmartAsset study looked at the closest EV charging stations equivalent to a trip to the gas station — factoring in each state's population. California, with its 14,500 charging stations, has five times the EV charging stations as New York (3,327), Florida (2,913) and Texas (2,472). While California ranked No. 1 on the list, Texas found itself at No. 41.

The report used EV charger and station data for each state from the U.S. Department of Energy for 2022 and 2021. Population data is for 2022 and comes from the U.S. Census Bureau 1-Year American Community Survey. Cities were also ranked by the number of fast chargers per capita. In 2022, Texas had 1,386 fast DC chargers, 2,472 EV charging stations, and a fast charger growth year over year 53.5 percent. Read more.

Incoming:  Houston recycling company names new CEO

David Hudson has been named CEO of Elemental Recycling. The company, founded in 2019, is an investment of Freestone, a portfolio company of Tailwater Capital. He succeeds Tom Samuels, former CEO and board chair of the company.

"With over two decades of proven expertise in driving strategic growth and profitability across the recycling, waste management, sustainability, and decarbonization sectors, David brings a wealth of experience that makes him the ideal leader to take the reins and guide Elemental into its next phase of innovation and growth," Samuels says in a news release. "I am excited about the possibilities that lie ahead for the company under David's leadership. His proven track record and passion for driving positive change make him the perfect steward for the next chapter of Elemental's journey." Read more.

Events not to miss

Put these Houston-area energy-related events on your calendar.

  • The Houston Oil and Gas Executive Leadership Summit is an meeting of executives, policymakers, academics, and other professionals with a particular interest related to energy. The event is January 25 at the DoubleTree by Hilton Hotel Houston. Register.
  • Future of Energy Summit is Tuesday, February 6, at AC Hotel by Marriott Houston Downtown. Register.
  • The De Lange Conference, taking place February 9 and 10 at Rice University's Baker Institute for Public Policy, is centered around the theme “Brave New Worlds: Who Decides? Research, Risk and Responsibility” this year. Register.

Here are three things to know in Houston energy transition news. Photo via Getty Images

Deloitte's new energy lead, a $7.4B deal, and more things to know this week

take note

Editor's note: It's a new week — start it strong with three quick things to catch up on in Houston's energy transition: a roundup of events not to miss, a Houston energy executive to know, and more.

Incoming: Deloitte names new head of energy, chemicals practice

Teresa Thomas was named vice chair and national sector leader for energy and chemicals at Deloitte. She takes over the role from Amy Chronis, partner at Deloitte LLP, who will continue to serve within the energy and chemicals practice until her retirement in June 2024.

"I am fortunate to have worked in the energy and chemicals industry for most of my career, and I'm honored to continue working with companies that are playing a pivotal role in powering progress and purpose," Thomas says in a news release. "Our industry is at the epicenter of the energy transition that can fuel tremendous potential for society, and I'm excited to be leading during this important and transformational time."

Last year, Chronis announced her retirement from Deloitte, and the company named Melinda Yee as the incoming Houston managing partner at Deloitte, a role Chronis held in addition to the title of vice chair and US energy and chemicals leader. Chronis is slated to retire in June 2024, and Yee's new role became effective this month. Read more.

Events not to miss

Put these Houston-area energy-related events on your calendar.

  • Energy Underground's January meeting is on January 18 at noon at the Esperson Building. Register.
  • The Houston Oil and Gas Executive Leadership Summit is an meeting of executives, policymakers, academics, and other professionals with a particular interest related to energy. The event is January 25 at the DoubleTree by Hilton Hotel Houston. Register.
  • Future of Energy Summit is Tuesday, February 6, at AC Hotel by Marriott Houston Downtown. Register.
  • The De Lange Conference, taking place February 9 and 10 at Rice University's Baker Institute for Public Policy, is centered around the theme “Brave New Worlds: Who Decides? Research, Risk and Responsibility” this year. Register.

Really big deal: Southwestern Energy to combine with Chesapeake in $7.4B deal

Chesapeake Energy and Southwestern Energy are combining in a $7.4 billion all-stock deal to form one of the biggest natural gas producers in the U.S.

The transaction, valued at $6.69 per share, will create a company that has large scale acreage in the Appalachia region and Haynesville, Louisiana. It has current net production of approximately 7.9 Bcfe/d with more than 5,000 gross locations and 15 years of inventory.

“The world is short energy and demand for our products is growing, both in the U.S. and overseas," Chesapeake CEO Nick Dell’Osso said in a prepared statement Thursday. "We will be positioned to deliver more natural gas at a lower cost, accelerating America’s energy reach and fueling a more affordable, reliable, and lower carbon future." Read more.

The De Lange Conference is taking place February 9 and 10 at Rice University's Baker Institute for Public Policy. Photo by Gustavo Raskosky/Rice University

Upcoming Houston conference to address biology, technology and climate change

on the radar

Every other year, Rice University hosts a conference that addresses "issues of great concern to society," and this year will look at the intersection of technology, biology, and climate change.

The De Lange Conference, taking place February 9 and 10 at Rice University's Baker Institute for Public Policy, is centered around the theme “Brave New Worlds: Who Decides? Research, Risk and Responsibility” this year. Chaired by Luis Campos, Baker College Chair for the History of Science, Technology and Innovation, the conference is an initiative of Rice’s faculty-led consortium Scientia Institute.

“We wanted to have a broad topic that would connect a lot of different disciplines and parts of campus,” Campos says in a news release. “Synthetic biology, the uses of data, climate change—whatever our field, job or profession, we have all heard of these things, and we all want to know more about them. So we’re bringing in scholars, scientists and artists to think about how these frontiers of scientific innovation and research relate to larger social contexts.

“Everybody is concerned with the future of their health, the future of their society, the future of the climate that they live in and the future of how their data is being used. This is a conference that weaves all those realms together with forms of artistic intervention and creative practice.”

Rice’s De Lange Conference explores future of synthetic biology, data technology and climate changewww.youtube.com

Attendees of the event can anticipate two days of discussions led by thought leaders, artistic interventions, screenings, and more from a roster of scientists, researchers, scholars, and artists. The full schedule is listed online.

The event is free to attend, but registration is required.

Here are three things to know in Houston energy transition news this week. Photo via Getty Images

3 things to know: Houston energy events not to miss, podcast to stream, and more

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Editor's note: It's a new week — start it strong with three quick things to know in Houston's energy transition: events not to miss, a podcast to stream, and more.

Events not to miss:

Add these events to your radar:

    • November 30 - Carbon to Value Initiative Year 3 Final Showcase will be streamed online. Register.
    • December 4 - Pumps & Pipes Annual Event is Houston's premier innovation gathering bringing together cross-industry leaders for engaging discussions and top tier networking opportunities. Register.
    • December 7 - Greentown Labs Investor Speaker Series: Both Sides of the Coin will host a thoughtful fireside chat followed by networking. Register.

    Deadline to be aware of: EnergyTech UP

    The Rice Alliance for Technology and Entrepreneurship will host the regional qualifier for a Department of Energy-backed student competition, and the application deadline to participate is coming up.

    The DOE's EnergyTech University Prize, or EnergyTech UP, a virtual regional qualifier hosted by the Rice Alliance will take place in February, and applications for students and faculty are now open. A $400,000 collegiate competition, the program challenges student teams to develop a business plan based off of National Laboratory-developed or other emerging energy technology.

    The application deadline is February 1 for students, and faculty have until January 5 to apply. Learn more.

    Podcast to stream: Andrew Chang, managing director of United Airlines Ventures, on the Houston Innovators Podcast

    When it comes to the future of aviation — namely, making it more sustainable, a rising tide lifts all boats. Or, in this case, planes.

    Andrew Chang, managing director of United Airlines Ventures, explains that working together is the key for advancing sustainable aviation fuel, or SAF. That's why United Airlines started the Sustainable Flight Fund, a $200 million initiative with support from industry leaders, including Air Canada, Boeing, GE Aerospace, JPMorgan Chase, Honeywell, Aramco Ventures, Bank of America, Hawaiian Airlines, JetBlue Ventures, and several others.

    "We all recognize that we may compete in our core business, but with the importance of sustainable aviation fuel and given that it's an industry that doesn't exist — you can't compete for something that doesn't exist — let's collaborate and work together to explore technologies that can directly or indirectly support the commercialization and production of sustainable aviation fuel," he says on the Houston Innovators Podcast. Read more.

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    Houston geothermal co. expands DOD partnership with South Texas initiative

    seeing green

    Expanding on its partnership with the United States Department of Defense's Defense Innovation Unit, Sage Geosystems has been selected to conduct geothermal project development initiatives at Naval Air Station in Corpus Christi.

    Along with the Environmental Security Technology Certification Program, Sage will provide its proprietary Geopressured Geothermal Systems technology, will be able to evaluate the potential for geothermal baseload power generation to provide clean and consistent energy at the Naval Air Station base.

    “We’re pleased to expand our partnership with the DOD at NAS Corpus Christi to demonstrate the advantages of geothermal technology for military energy independence,” Cindy Taff, CEO of Sage Geosystems, says in a news release.

    Sage is also conducting initiatives at Fort Bliss and has completed an analysis at the Ellington Field Joint Reserve Base. The analyses could “pave the way for expanding geothermal energy solutions across additional U.S. military installations,” according to Sage.

    The company’s proprietary technology works by leveraging hot dry rock, which is a more abundant geothermal resource compared to traditional hydrothermal formations, and it provides energy resilience for infrastructures. In addition, Sage is building a 3 megawatt commercial EarthStore geothermal energy storage facility in Christine, Texas, which is expected to be completed by December. Sage also announced a partnership with Meta Platforms. With Meta Platforms, Sage will deliver up to 150 megawatt of geothermal power generation east of the Rocky Mountains.

    The Naval Air Station Corpus Christi is considered a critical training and operations hub for the U.S. Navy, and the partnership with Sage shows the Navy's commitment to achieving net-zero carbon emissions by 2045. Sage’s technology will be assessed for its ability to create a microgrid, which can reduce reliance on the utility grid and ensure power supply during outages.

    “As we advance our Geopressured Geothermal Systems, we see tremendous potential to not only provide carbon-free power, but also strengthen the operational capabilities of U.S. military installations in an increasingly digital and electric world,” Taff adds.

    In September, the Air Force awarded Sage a grant of $1.9 million in a first-of-its kind contract to determine whether a power plant using Geopressured Geothermal Systems is able to generate clean energy needed for a base to achieve energy resilience.

    Expert shares tips on ways to make solar panels more accessible to Houstonians

    guest column

    There’s no question that some homeowners feel a twinge of envy when they see solar panels appearing on homes in their neighborhood. The twin benefits of cutting utility costs and participating in renewable energy are alluring to many.

    But as those homeowners consider going solar, many never take the plunge because of concerns about affordability, maintenance and uncertainties around qualifying for tax credits and other state and local rebates. For all its appeal, going solar can seem a bit daunting.

    But there are more plentiful financing options available to many Texas homeowners that offer accommodating paths for acquiring solar. They also provide solutions to concerns around maintenance and affordability.

    Two innovative strategies for switching to solar

    Solar energy providers have been working diligently to deliver more convenient pathways for consumers to make the switch. Recently, two new strategies were introduced in Texas: direct, loan-based ownership, and third-party ownership.

    Direct system ownership

    With this option, homeowners take out a loan to cover the cost of their solar system and its installation. They can then repay that loan over timeframes ranging from five to twenty-five years.

    There are varying rates and terms available to accommodate the preferences and goals of individual homeowners. And while manufacturer warranties and installer workmanship warranties have been available to homeowners, it is important to look for companies that offer guarantees for an extended period of time given that most systems can last several decades. For example, Freedom Forever offers a 25-year production guarantee that provides consumers with a measure of comfort around the long-term costs of owning these systems.

    Third-party ownership

    Another solar financing option involves third-party ownership using a Power Purchase Agreement (PPA) or lease. With a PPA option, a third-party owns the system, and homeowners either agree to buy power at a pre-defined rate per kWh or through a set monthly payment. Homeowners also have the option of leasing the panels for comparable pre-defined rates or monthly payments. (Maybe add one more sentence that explains the difference between PPAs vs lease).

    With these two options, the third party insures and maintains the system. This alleviates some of the maintenance and up front cost concerns that have held some back from solar.

    Issues to consider before making the switch

    Even with the availability of these new options, solar power doesn’t always make sense for everyone. Your personal energy goals and preferences, as well as your tax situation, are important factors to consider when making this decision. Here are some questions folks should ask before making the switch:

    • Would I prefer owning the system outright or relying on a third-party to handle insurance and maintenance?
    • Am I looking for monthly savings now through a PPA or lease or would I prefer the quickest payback and return on investment?
    • Do I have a tax liability that enables me to get a Federal Tax Credit?

    The answers to these questions will help you determine which option, if any, makes sense for you. It’s important to remember there is no “best solution for everyone” when considering your options; there’s only the question of what’s right for you.

    Other important considerations

    Keep in mind that not everyone will qualify for one of the solar options described above. Even in these cases, your state, local utility or a regional credit union may offer alternative financing options that can help you access solar.

    Home equity lines of credit may also be a fitting option for some. Dsireusa.org is an excellent resource to help you investigate what incentives and programs are available in your area.

    Final tips

    As with any important financial decision, it’s a homeowner’s’ responsibility to practice due diligence in terms of assessing what they can afford and who they buy from. Here are some recommended best practices:

    1. Always get several quotes from various companies.
    2. Ask about production guarantees and warranties.
    3. Ask about the need of a service panel upgrade at the start.
    4. Verify that the company you choose offers products that will work with your home construction and roof.
    5. Prioritize solar providers with an extensive list of authorized dealers, such as Freedom Forever.
    6. Confirm that your prospective solar partner has purchasing options around loans and financing and can help you identify the option that best suits your needs.

    The good news is that more homeowners than ever before can now feel more comfortable moving to solar. The new options described above for financing and maintenance can make that switch considerably less daunting than it seemed only a few years ago.

    ———

    Robert Angell is the vice president of sales operations at Freedom Forever, one the nation’s largest solar installers.