Report: Houston's energy transition economy sees momentum, including $6.1B in financing in 2022

Houston facts

According to the facts, Houston's energy transition is moving in the right direction. Photo via Getty Images

In Houston, the energy transition movement is in full effect — at least, according to the facts and figures from a recently released report.

The Greater Houston Partnership released its 2023 Houston Facts report, which analyzes the business community across sectors. The report highlights the fact that last year Houston's energy transition brought in $6.1 billion in financing from private market investments, which represents a 61.9 percent increase compared to 2021.

"Over the last five years, Houston has seen constant growth in annual energy transition investments, with a notable surge observed from 2020 onwards," reads the report.

Corporate and strategic merger and acquisition investments are what dominated the five deal types, according to the report, representing 68.8 percent of the total investment in 2022. Additionally, private equity accounted for 19.3 percent of all deals, with venture capital comprising 9.5 percent.

Source: GHP analysis of data from the U.S. Environmental Protection Agency, Greenhouse Gas Reporting Program (GHGRP)

According to Houston Facts, there are 550 Houston-based energy transition companies working in battery/energy storage, biofuels, carbon capture, use, and storage, circular economy, and other energy value chains.

The report also looked at clean energy job growth, which increased from 66,047 professionals in the Houston metro area in 2021 to projected increase to 71,305 jobs in 2022. The fastest growing type of clean energy job is within energy efficiency, a section that accounts for 68.1 percent of total clean energy employment last year, which increased 28.2 percent from 2021. Additionally, clean vehicle employment also saw a 14.7 percent increase while job counts in grid and storage and clean fuel applications declined notably in 2022, per the report.

Compared nationally, personal finance website SmartAsset recently ranked the Houston metro area as the fifth best place in the U.S. for green jobs, which pay an average of 21 percent more than other jobs. The SmartAsset study found that 2.23 percent of workers in the Houston area hold down jobs classified as “green.”

Source: GHP analysis and estimates of data from the U.S. Energy and Employment Report (USEER) and The Energy Futures Initiative (EFI), the National Association of State Energy Officials (NASEO), BW Research Partnership (BWRP) and E2 (Environmental Entrepreneurs)

The report also analyzed Houston's progress when it comes to emissions. Here are some of the Houston Facts on emission data from the U.S. Environment Protection Agency and the Greenhouse Gas Reporting Program:

Houston's power plant sector was as the largest greenhouse gas emitter with 43.2 percent of the region's total industrial emissions, and the sector has had an overall increasing trend over the past few years.
With 27.5 percent of industrial emissions, the chemicals sector came in No. 2, but the sector peaked in 2018, slightly declined in 2019, and have remained relatively constant through 2021.
Refineries ranked third, with for 21.2 percent of emissions, and have remained stable without notable increase over the past few years.
Petroleum and natural gas sector emissions have consistently increased since 2012, except for 2017. That year, Houston's overall emission rate reached its lowest point in the past decade at 225.1 mtCO2e.
Currently, Houston's emission rate is slightly below the highest point of the past ten years, which was 243.2 mtCO2e recorded in 2012.

Houston Facts, as well as other reports and resources, is available on GHP's website.

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ENGIE strikes clean energy deal with Houston biomanufacturer

energy match

ENGIE North America has signed an agreement with Aker BioMarine to supply around-the-clock, Texas-sourced clean energy to the Norwegian company's Houston manufacturing facility.

The deal is through ENGIE's 24/7 offering, which allows users to "match electricity consumption with local renewable generation on an hourly basis," rather than annual renewable energy matching, according to a news release.

Houston-based ENGIE NA will match 90% of Aker BioMarine's hourly electricity consumption at its Houston facility through renewable energy certificates that link electricity consumed to clean power generated. The renewable energy will be sourced largely from ENGIE's Impact Solar Project in Lamar County, Texas.

“Working with companies that have made sustainability a core part of their strategy is essential to delivering meaningful progress,” Taymur Bunkheila, regional VP and retail supply lead for ENGIE’s U.S. 24/7 product, said in the release. “By aligning energy solutions with operational needs, we can help organizations improve transparency, strengthen accountability, and deliver measurable outcomes. This agreement demonstrates how companies can take practical steps today while building toward long-term sustainability objectives.”

Aker BioMarine, which develops sustainable marine-based ingredients, processes the majority of its krill and algae products at its Houston facility. The company says the deal with ENGIE marks an important step in reducing the environmental footprint of its operations.

“Through this agreement, we expect to reduce our Scope 2 emissions, marking an important milestone in our broader sustainability journey,” Matts Johansen, CEO at Aker BioMarine, added in the release. “ENGIE has delivered an affordable, innovative and transparent solution that allows us to match our electricity consumption for our Houston manufacturing facility with renewable power generation. The transparent data ENGIE provides strengthens our climate reporting while helping us continue delivering high-quality products with a lower environmental footprint."

ENGIE has more than 11 gigawatts of renewable energy projects in operation or under construction in the U.S. and Canada. The company is targeting 95 gigawatts by 2030

ExxonMobil announces date to move legal headquarters to Texas

save the date

Energy giant Exxon Mobil Corp. has set a date to move its legal headquarters to Texas.

The Spring-based company announced this week that the redomiciliation from New Jersey to Texas is expected to be effective July 1. Exxon's board of directors unanimously recommended redomiciling in the Lone Star State in March, and shareholders approved the move to Texas at the company’s annual meeting in May.

As part of the move, ExxonMobil Holdings Corp. will replace Exxon Mobil Corp. of New Jersey and become the publicly traded parent company. Exxon reports that its shares will continue to trade on the New York Stock Exchange under the ticker symbol “XOM,” and that shareholders do not need to take action.

At the time of the recommendation, Exxon said the move would not affect business operations, management, strategy, assets or employee locations.

Exxon Chairman and CEO Darren Woods added that the redomiciliation was in part due to Texas' business-friendly environment and policies.

"Over the past several years, Texas has made a noticeable effort to embrace the business community. In doing so, it has created a policy and regulatory environment that can allow the company to maximize shareholder value,” Woods said in a news release. "Aligning our legal home with our operating home, in a state that understands our business and has a stake in the company’s success, is important.”

The Associated Press reports that about 30 percent of Exxon's employees work in Texas. Exxon's legal headquarters has been based in New Jersey since 1882, when it was Standard Oil Company.

Exxon moved its operational headquarters from Irving, Texas, to the Houston area in 2023.

Exxon was the highest-ranking Houston-area company on this year's Fortune 500 list, coming in at No. 9. Houston tied with Chicago for the second-most Fortune 500 headquarters on this year's list, with Texas leading the nation for the most Fortune 500 headquarters (57).

“Texas is the undisputed headquarters of headquarters,” Gov. Greg Abbott said in a news release. “The world’s leading businesses invest with confidence in Texas because of our welcoming business climate, predictable regulatory environment, and skilled and growing workforce. People and businesses are choosing Texas because Texas works.”

Houston startups named to World Economic Forum cohort for carbon removal, clean technologies

top honor

Two Houston-based startups have been selected to join the World Economic Forum's Technology Pioneers community.

The two-year program aims to help mission-driven, early-stage start-ups scale their innovations through multi-stakeholder initiatives, co-creating partnerships and other gatherings for community members. One-hundred startups are selected each year from around the globe, this year hailing from 23 countries and working in AI, energy, space, biotech markets and more.

Cleantech startup Vaulted Deep was one of 11 energy and climate companies to be named to the cohort. Julia Reichelstein and Omar Abou-Sayed founded the company in 2023. Its technology injects excess organic waste underground to remove carbon dioxide from the atmosphere.

Last year, Vaulted Deep inked a 12-year deal with Microsoft to remove up to 4.9 million metric tons of carbon dioxide from the environment.

The startup has earned several accolades in recent years, including a No. 3 spot on Fast Company’s list of the World’s Most Innovative Companies of 2026. It was also recently named to market intelligence and advisory firm Cleantech Group's annual Global Cleantech 100 list for a second year in a row.

"Waste management is one of the world's great invisible infrastructure systems ... The need for new infrastructure is growing as disposal challenges become more complex and regulations evolve. Vaulted is building the first new disposal pathway for organic waste in decades by putting it deep underground, permanently," the company shared in a LinkedIn post. "This year, we're joining the World Economic Forum's 2026 Tech Pioneers alongside innovators working on the many interconnected challenges shaping our future."

Houston-based Venus Aerospace was also selected to join the cohort, along with six other spacetech companies. The company was founded in 2020 by Sassie and Andrew Duggleby.

The startup specializes in next-generation rocket engine propulsion as a cleaner alternative to traditional combustion engines. The company's rotating detonation rocket engine (RDRE) burns fuel more efficiently and completed a successful high-thrust test flight last year. Venus says it’s the only company in the world that makes a flight-proven, high-thrust RDRE with a “clear path to scaled production.”

"Frontier technologies matter most when they expand what people, industries, and nations can do," Sassie Duggleby, co-founder and CEO of Venus, said in a news release. "For Venus, RDRE does not just represent a more efficient engine. It is a foundation for faster movement, more capable space systems, and new forms of connectivity across the planet. Being named a Technology Pioneer validates the potential of this technology to help shape a future where distance is less limiting."

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