Recently, two HETI members announced acquisition and investment into carbon capture businesses. Photo via htxenergytransition.org

CCUS will play a pivotal role in the global energy transition by decarbonizing carbon-intensive industries, including energy, chemicals, cement, and steel. CCUS is one of the few proven technologies to significantly lower net emissions. However, the unique nature of decarbonization presents many complex challenges. With greater funding and growing policy support, the widespread adoption of CCUS technologies is becoming more technically feasible and economically viable than ever before.

Houston, with its existing CCUS infrastructure, large concentration of CCUS expertise, and high storage capacity, is the ideal location to deploy and derisk CCUS projects at unprecedented speed and scale. Recently, two HETI members announced acquisition and investment into carbon capture businesses.

SLB + Aker Carbon Capture (ACC)

SLB, a pioneer in carbon capture technologies, announced an agreement to acquire major ownership in Aker Carbon Capture (ACC), a pure-play carbon capture company. The move combines SLB’s established CCUS business with ACC’s innovative CCUS technology to support accelerated industrial decarbonization at scale.

“For CCUS to have the expected impact on supporting global net-zero ambitions, it will need to scale up 100-200 times in less than three decades,” said Olivier Le Peuch, chief executive officer, SLB. “Crucial to this scale-up is the ability to lower capture costs, which often represent as much as 50-70% of the total spend of a CCUS project. We are excited to create this business with ACC to accelerate the deployment of carbon capture technologies that will shift the economics of carbon capture across high-emitting industrial sectors.”

Chevron New Energies + ION Clean Energy

Chevron New Energies, a division of Chevron U.S.A. Inc., announced a lead investment in ION Clean Energy (ION), which provides post-combustion point-source capture technology through its third-generation ICE-31 liquid amine system. This investment expands and complements Chevron’s growing portfolio of CCUS technologies.

“ION’s solvent technology, combined with Chevron’s assets and capabilities, has the potential to reach numerous emitters and support our ambitions of a lower carbon future,” said Chris Powers, vice president of CCUS & Emerging, Chevron New Energies. “We believe collaborations like this are essential to our efforts to grow carbon capture on a global scale.”

“This investment from Chevron is a huge testament to the hard work of our team and the potential of our technology,” said ION founder and executive chairman Buz Brown. “We appreciate their collaboration and with their investment we expect to accelerate commercial deployment of our technology so that we can realize the kind of wide-ranging commercial and environmental impact we’ve long envisioned.”

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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.

This expert acknowledges the energy transition is not happening overnight — but it's never too early for Texans looking to get in on the ground floor. Photo via Shutterstock

Expert shares 5 key factors for evolving the energy transition in Texas

GUEST COLUMN

Humanity faces an inflection point in the coming decade. In order for the world’s population to survive and, ultimately, prosper, especially the population of developing countries such as India, China, and Brazil, significant investment in all forms of energy will be needed. Texas-based energy companies will play a crucial role in developing, advancing and supplying environmentally sensitive forms of energy to meet the world’s insatiable demand.

According to the U.S. Energy Information Administration, global energy consumption is expected to increase by a staggering 50 percent in the next 25 years. Fueled by rapid economic and population growth, this spike in demand is particularly focused within developing Asian countries outside of the Organization for Economic Cooperation and Development (OECD). Taking steps toward energy evolution today is crucial not only for economic progress but also to address the long-term impact of climate change. Research compiled by JLL highlights five key factors to consider.

1. Embracing a gradual evolution

Historically, energy transitions require significant time to be fully realized, often spanning over 50 years. Coal took more than 60 years to grow from a mere 5 percent to a dominant 50 percent share of the world's primary energy supply. Similarly, natural gas took nearly 70 years to increase its market share from 1 percent to 20 percent in the United States. Widespread commercialization of nuclear energy spans as much as 80 years, from the point of initial discovery and application. Major pendulum swings do not occur overnight; the next energy evolution will require adaptability and resilience.

2. Increase in global energy consumption

As non-OECD countries experience periods of economic growth, particularly driven by a growth of the manufacturing sector, these countries’ energy consumption naturally follows suit. Approximately 2.5 billion people live in these regions, which today heavily rely on non-renewable sources to meet basic energy needs.

As OECD countries continue to introduce sustainable technologies like battery power and other alternatives at scale, a transfer of more efficient and eco-friendly sources and technologies to developing communities must occur to reduce the world’s overall carbon footprint.

3. Surging investment in global energy transition

Investments in the global energy transition surpassed $1 trillion in 2022 – a stunning year-over-year increase of 31 percent. These investments are propelling innovative, sustainable solutions and driving the research and development necessary for a more environmentally conscious energy landscape.

4. Diversification and revised renewables forecast

Countries are actively diversifying their energy generation away from natural gas, specifically as a response to the energy crisis sparked by Russia's invasion of Ukraine. This push towards sustainable alternatives has received further validation with the International Energy Agency (IEA) recently revising its five-year renewables forecast, emphasizing a significant 28.4 percent increase. This revision serves as a testament to the increasing significance of sustainable energy sources in ensuring a resilient energy future.

5. United States energy production

Even with the implementation of the Inflation Reduction Act of 2022 (IRA), the United States will maintain its production and export of oil, natural gas, and derivatives. While recognizing the continued role of these traditional energy sources in meeting global energy demands, the United States also acknowledges the imperative of transitioning towards sustainable energy sources. Encouraging companies to embrace alternative energy solutions in line with this transition is now big business, as significant incentives are being provided at federal and state levels.

And what about here in Texas?

In this critical era of global energy evolution, Texas has the opportunity to take center stage, holding the keys not only to its own future but also to those far beyond the state’s borders. With abundant wind power production, vast solar energy potential, a favorable regulatory environment, and attractive tax incentives, Texas is well positioned to be a leader in innovation, research, and production of alternative energy sources. Combined with the presence of many of the country’s leading energy companies, Texas must be a powerhouse for driving a sustainable energy transition on a large scale.

Transforming the global energy landscape will not be accomplished overnight. It requires the collective efforts of governments, industries, companies, and individuals working together towards a common goal. Texas and Texans can serve as a beacon of inspiration, leading the charge in alternative energy adoption and investing today in the next century of energy production and consumption. Ultimately, our example should be one the world can follow.

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Louis Rosenthal is executive managing director at JLL and the global leader of the company's energy and renewables practice group.

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New rule to require railroads in Texas, beyond to provide hazardous cargo details upon derailment

in case of emergency

A new federal rule finalized Monday aims to ensure first responders can find out what hazardous chemicals are on a train almost immediately after a derailment so they can respond appropriately. Texas, a major hub for chemical development, will be affected by the ruling.

Too often in past disasters like last year's fiery Norfolk Southern derailment in East Palestine, Ohio, firefighters risked their lives trying to extinguish a blaze without knowing the right way to respond. The local fire chief in charge of the response said it took him 45 minutes to learn exactly what was in the 11 burning tank cars on the train, but some firefighters from neighboring departments that came to help said they didn't know what they were dealing with until two hours after the February 3, 2023, crash.

First responders need to know exactly which hazardous materials are on a train so they can look it up in the government's official guidebook and make sure they have the right protective gear and firefighting tools, said Tristan Brown, deputy administrator of the Pipelines and Hazardous Materials Safety Administration agency that proposed the rule.

Knowing what chemical is involved and how much of it is aboard also affects how big of an evacuation zone might be required to protect the public.

“There are so many different types of hazardous materials being transported across the country on any given day — one in 10 goods that move across the United States — and each one, poses unique risks and hazards, certainly to the folks who are running towards a fire,” Brown said. “But certainly as well for anybody who may be living or working in that vicinity.”

The rule was published just one day ahead of the National Transportation Safety Board's final hearing on the East Palestine derailment, where they will discuss exactly what caused that crash and recommend steps to prevent similar disasters.

Train crews have long carried lists of their cargo in the cabs of their locomotives, but in the middle of the chaos after a derailment those engineers and conductors, who might have moved their locomotives miles down the track, can't always be found right away.

That's part of why the largest freight railroads developed an app called AskRail roughly a decade ago that enables firefighters to quickly look up the details of what each train carries. But not every firefighter had the app, and cell phones don't always have a signal strong enough to work in a disaster.

Regulators want the railroads to continue expanding access to that app, including to 911 centers, so information reaches first responders sooner. The railroads have been expanding access over the past year. The Association of American Railroads trade group estimates some 2.3 million first responders now have access to that information as a result of the effort to expand into dispatch centers.

The six biggest railroads also make train cargo information immediately available through the chemical industry's hazardous materials hotlines in the U.S. and Canada known as the CHEMTREC and CANUTEC, emergency call centers.

Norfolk Southern said that in addition to AskRail it is working with a different program called RapidSOS that will allow the railroad to directly send information about its trains to first responders after a derailment — instead of forcing them to look up the details in AskRail. The railroad said its work fits well with the new rule.

But the new federal rule also applies to the hundreds of smaller railroads that aren't involved in AskRail. Even railroads that only have one or two employees now must have a plan to get the crucial details of their cargo to the local fire department quickly, even if its as simple as having the fire chief's cell phone number at the ready. Railroads also must test their plan at least once a year.

“In a hazmat incident, firefighters and first responders arriving on scene need to know what kind of hazardous materials are present so they can protect themselves and their communities,” U.S. Transportation Secretary Pete Buttigieg said.

It's not clear how this rule might have changed the outcome in East Palestine, but more information could have helped responding firefighters.

The derailment prompted a nationwide reckoning over railroad safety and prompted Congress to propose changes and regulators like Buttigieg to urge railroads to do more to prevent derailments.

The Federal Railroad Administration has issued various advisories about different aspects of railroad operations, but the reforms in Congress have stalled because Republicans wanted to wait for the final NTSB report and regulators have had only limited success making changes.

From virtual to reality: This Houston extended reality CEO weighs in on energy transition applications

Q&A

Founded in 2023, MadXR is a Houston-based Extended Reality startup. The innovative company specializes in safety training experiences for the energy sector and beyond. From pre-built virtual reality training modules to custom developed, end-to-end XR solutions, MadXR creates interactive, lifelike virtual reality and augmented reality experiences that allow trainees to practice safety procedures in a controlled environment.

Houston Energy Transition Initiative recently connected with Miranda Palmisano, CEO of MadXR, to discuss the applications and benefits of XR—and how it can help energy companies reduce HSE risk and carbon intensity like never before.

HETI: You were at Chevron for nearly 10 years before MadXR. How did your experiences at Chevron shape your approach to starting and running your own company?

Miranda Palmisano: Prior to founding MadXR, I held many different roles at Chevron across upstream and downstream. As the Connected Worker Product Manager, I drove digital acceleration for our global field and maintenance teams in refineries, terminals, and manufacturing sites, elevating efficiency and safety. During that time, I began exploring the value case of VR across Chevron.

I formed the Extended Reality Team and shortly became the Extended Reality Product Manager. Our team began using VR to conduct safety training within a virtual environment. It allowed us to train Chevron’s workforce safer and more efficiently by providing hands-on experience without the risk of real-world errors.

HETI: What inspired you to start your own company?

MP: Extended reality is an exciting new technology, and I quickly discovered the growing need for flexible, cost-effective XR content development in relation to life-saving-action training, such as confined-space entry, lockout/tagout procedures, and working from heights. I believe that affordable and high-quality XR experiences should be accessible to all companies, regardless of budget. That’s why MadXR has transparent pricing options that range from pre-built VR training modules to turnkey teams—and we empower our customers to take full ownership of their content and assets.

HETI: How has being based in Houston helped MadXR?

MP: The network in Houston is unmatched. In the energy capital of the world, it’s much easier to access the companies we’re targeting and hire the talent we need to grow. Innovation hubs like Houston’s Ion District have given us the resources and opportunities to connect with a vast number of forward-thinking businesses.

HETI: Do you believe XR will be instrumental in helping companies reach low carbon or net zero goals?

MP: XR is poised to revolutionize the energy industry, offering unprecedented opportunities for efficiency, engagement, and environmental sustainability. Imagine donning a headset and virtually navigating a facility halfway across the globe in real-time, or preparing your entire team with comprehensive virtual training before they physically enter a site. These scenarios highlight XR’s potential to enhance operational efficiency and employee engagement significantly. Beyond the immediate benefits, XR also plays a crucial role in reducing carbon emissions by eliminating the need for unnecessary travel. This technology isn’t just about improving current processes; it’s about reimagining the future of energy industry operations in a more sustainable, efficient, and engaging way.

HETI: MadXR will be celebrating its first anniversary in April. Can you tell us more about your vision for the future and what you’re focused on in 2024?

MP: In 2023, we were focused on ramping up and generating awareness. This year, we’re dedicated to expanding our reach and impact. We plan to incorporate AI into our learning modules and XR development to make them even more informational and interactive.

While our primary focus is on energy, we’re exploring how we can extend XR training to other industries, including automotive, healthcare, and pharmaceuticals.

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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.

To learn more about MadXR’s mission and XR training modules, visit MadXR.

Houston energy company celebrates new innovation center in Belgium

now open

A Houston-based global leader of innovative chemistries strengthened its research and development capabilities by opening a new international innovation center.

Huntsman Corp. celebrated the opening of the new R&D center in Tienen, Belgium, on June 13.

The 11,000-square-meter facility is a world-scale analytical laboratory; two machine halls; and fully equipped and automated product testing facilities. According to the company, the facility will assist with the “journey from the formulation of initial ideas at lab scale through to the manufacture of novel systems and samples ready for customers to trial.”

The innovation center will house more than 100 scientists from the company's polyurethanes and performance products. In key markets, which include adhesives, coatings and sealants; automotive; elastomers; energy; furniture and bedding, and insulation, will support the application of Huntsman technologies. The polyurethanes division is a global leader in MDI-based polyurethanes, which serves more than 3,000 customers in over 90 countries worldwide.

The inauguration event on June 13 was attended by more than 100 customers, suppliers, the mayor of Tienen and business partners. The event also included presentations from Huntsman's Chairman and Chief Executive Officer Peter Huntsman, and Tony Hankins, President of Huntsman's polyurethane business.

"Today marks a significant milestone as we officially open the doors to our new European innovation center, a facility dedicated to creativity, collaboration and progress," Huntsman says in a news release. "We already have a rich legacy of innovation in Belgium. This center reflects our continuing commitment to exploring new ideas and turning imaginative concepts into practical solutions that can make a positive impact in the world."