How Mitsubishi Heavy Industries America is advancing the hydrogen economy

The View from HETI

MHIA has invested in a geologic hydrogen exploration startup. Photo courtesy of HETI

Mitsubishi Heavy Industries America (MHIA), a steering-level member company of the Houston Energy Transition Initiative, is leveraging engineering expertise and global capabilities to develop and deploy technologies that will decarbonize existing infrastructure and build the hydrogen economy of the future. The company’s recent investment in Koloma, a Colorado-based geologic hydrogen exploration startup, demonstrates its commitment to breakthrough innovations that can transform how the world produces and uses clean energy.

Traditional hydrogen production methods, whether from natural gas with carbon capture or from electrolysis using renewable electricity, require significant energy inputs and infrastructure investments. Geologic hydrogen represents a potentially transformative alternative: naturally occurring hydrogen deposits that can be extracted from underground reservoirs.

Koloma is pioneering the exploration and commercialization of geologic hydrogen using proprietary technology, unique data sets, and specialized expertise to identify and develop these resources globally. If successful at scale, geologic hydrogen could provide clean, affordable hydrogen without the energy penalty of production.

MHIA’s investment in Koloma joins a syndicate of strategic partners committed to accelerating hydrogen development:

Breakthrough Energy Ventures: Bill Gates’ climate investment fund focused on breakthrough technologies

Amazon’s Climate Pledge Fund: Supporting technologies that enable Amazon’s path to net zero

United Airlines’ Sustainable Flight Fund: Investing in solutions for aviation decarbonization

This partnership brings together technology innovation, capital, and potential customers to create the ecosystem needed to move from exploration to commercial deployment.

MHIA’s investment in geologic hydrogen is part of the company’s broader strategy to develop the complete hydrogen value chain:

Production: Beyond geologic hydrogen, MHIA is advancing technologies for hydrogen production from diverse sources, including natural gas with carbon capture and renewable-powered electrolysis.

Infrastructure: The company is developing the compression, storage, and transportation systems needed to move hydrogen from production sites to end users.

End-Use Applications: MHIA’s expertise spans power generation, industrial processes, and transportation applications that can utilize hydrogen as a clean fuel.

Integration: The company is working to integrate hydrogen systems with existing infrastructure, enabling decarbonization without requiring complete infrastructure replacement.

While new technologies like geologic hydrogen offer exciting possibilities, MHIA recognizes that much of the world’s energy infrastructure will continue operating for decades. The company is also investing in technologies that decarbonize existing systems:

MHIA is developing and deploying carbon capture systems that can be retrofitted to existing power plants and industrial facilities, allowing them to continue operating while dramatically reducing emissions.

The company’s gas turbine technologies can operate on blends of natural gas and hydrogen, enabling progressive decarbonization as hydrogen availability increases.

Through advanced controls, materials, and designs, MHIA is improving the efficiency of existing infrastructure—reducing fuel consumption and emissions without requiring replacement.

MHIA’s approach to the energy transition is guided by a clear mission: develop innovative technologies that help achieve a decarbonized society while maintaining energy security and affordability. This mission recognizes several important realities:

Energy Access Matters: Billions of people still lack access to reliable, affordable energy. Solutions must scale globally and work across diverse economic contexts.

Existing Infrastructure Represents Enormous Investment: The world has trillions of dollars invested in energy infrastructure. Solutions that work with this infrastructure can deploy faster than those requiring complete replacement.

Multiple Pathways Are Needed: No single technology will solve the climate challenge. Success requires parallel development of multiple solutions—hydrogen, carbon capture, renewables, nuclear, efficiency, and others.

Speed Matters: Climate change is a time-sensitive challenge. Technologies that can deploy at scale in the 2020s and 2030s matter more than perfect solutions that might be available in the 2040s or 2050s.

From Technology to Impact

MHIA’s investment in Koloma reflects the company’s belief that breakthrough technologies require patient capital, technical expertise, and strategic partnerships to move from concept to commercial reality. Geologic hydrogen has the potential to provide clean, affordable hydrogen at scale—but only if exploration techniques are validated, production methods are proven, and commercial models are demonstrated.

By investing early and providing both capital and technical support, MHIA is helping to accelerate this timeline. If Koloma succeeds, the impact could extend far beyond a single project and could unlock a vast new resource for the global energy transition.

The energy transition requires engineering excellence, patient capital, and willingness to back breakthrough innovations before they’re fully proven. Through HETI member companies like Mitsubishi Heavy Industries America, Houston is demonstrating the leadership, technical capabilities, and strategic vision needed to build a hydrogen economy that can help decarbonize the world’s energy system.

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This article originally appeared on the Greater Houston Partnership's Houston Energy Transition Initiative blog . Learn more about MHIA’s energy transition initiatives at MHI Group Sustainability and read the full analysis here.

Air Liquide and Hyundai agreed to expand hydrogen refuelling networks, storage capacity and more at a meeting in Seoul last week. Photo courtesy Air Liquide.

Air Liquide and Hyundai ink partnership to scale hydrogen economy

green team

Air Liquide, which maintains its U.S. headquarters in Houston, and South Korea-based Hyundai Motor Group are expanding their strategic partnership to accelerate the growth of the global hydrogen ecosystem.

The renewal of the companies’ Memorandum of Understanding (MoU) was announced at the Hydrogen Council CEO Summit in Seoul last week. Together, the companies will work to scale hydrogen production, storage, transportation and utilization across Europe, Korea and the United States with a concentration on heavy-duty transport, logistics and public transportation.

Hyundai hopes Air Liquide's technical expertise will help contribute to more sustainable energy and carbon neutrality.

The companies plan to develop hydrogen refueling networks and storage capacity that can meet growing demands. They also plan to commercialize fuel cell electric vehicles (FCEVs) for diverse applications like public transportation, logistics fleets and ports.

"We are delighted to strengthen our partnership with Hyundai Motor Group,” Armelle Levieux, vice president of innovation, electronics and hydrogen at Air Liquide, said in a news release. “Collaborations like this between leaders across the value chain are essential to building the hydrogen economy.”

The partnership has already shown strong progress in South Korea, according to the companies, with Hyundai rolling out more than 2,000 hydrogen buses and 37,000 passenger fuel cell vehicles, with more expected by 2026. Additionally, Air Liquide has boosted supply capabilities in the region with the new state-of-the-art high-pressure hydrogen filling center, Lotte-Air Liquide Ener’Hy, in Daesan, an industrial hub near Seoul.

Air Liquide and Hyundai previously signed an MoU in 2018, along with other major South Korean players, agreeing to grow the hydrogen economy.

"Driving the Energy Transition” will air on Houston Public Media’s KUHF News 88.7 every other Monday. Photo courtesy of UH

University of Houston launches web, radio series to address key energy transition topics

tune in

The University of Houston Energy Transition Institute — in its mission to address challenges in the energy field and the ongoing energy transition — is launching two educational series via radio program and web seminars.

“Both these programs are ways for us to reach and share information with our stakeholders in the Houston ecosystem, region, nation and world about the latest trends in research and policy related to the energy transition,” Debalina Sengupta, chief operating officer at ETI, says in a news release.

"Driving the Energy Transition” will air on Houston Public Media’s KUHF News 88.7, and new episodes will be available every other Monday. The Energy Transition Webinar series will run biweekly on Tuesdays and offer online discussions that will feature UH experts and other experts in the field.

The radio series plans to explore innovations, policies and technologies around shifting the world to lower-carbon resources. The webinar series promises a “deep dive” into topics like the hydrogen economy, carbon capture, the circular economy, and sustainable energy practices, according to a news release. The webinars will include strategies for the energy landscape from Texas to globally, from UH faculty, students, industry leaders, and energy pioneers.

“UH is The Energy University, and 'Energy Transition' is the topic that should be on everyone’s mind right now,” ETI founding executive director Joe Powell adds. “How do we meet the dual challenge of expanding supply for equitable global access to energy, while also reducing fossil carbon dioxide emissions to address climate change? How do we continue to produce but also recycle the high-performance hydrocarbon products, which underpin our quality of life?”

The ETI focuses on hydrogen, carbon management, and circular plastics, and was founded in 2022 with a $10 million commitment from Shell. The institute also received a $100,000 grant from Baker Hughes in 2023.The institute also works closely with UH’s Hewlett Packard Enterprise Data Science Institute and researchers across the University, and with other colleges, universities and industry partners. The ETI has helped catalyze “cross-disciplinary cooperation” to expand funding opportunities for UH faculty, which includes direct funding of over 24 projects via seed grants.

“Our aim is to provide reliable scientific evidence-based knowledge for all, to enable them to make informed decisions for the future of energy,” Sengupta says.

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.”

Blue, green, gold — what do all the colors of hydrogen even mean? Photo via Getty Images

Hydrogen's many colors, Houston companies that are focused on it, and more

Guest column

Repeated association of specific colors in defined contexts deeply reinforces themes in the human brain. It’s why most students and alumni of Texas A&M University scoff at the sight of burnt orange, and you’d be hard-pressed to find the home of a Longhorn adorned in shades of crimson or maroon.

The color-coding of hydrogen energy production exemplifies one such ambiguous classification methodology, as the seemingly innocuous labeling of hydrogen as green (for hydrogen produced from renewable sources) and black (for hydrogen produced from coal) initially helped to quickly discern which sources of hydrogen are environmentally friendly or not.

But the coding system quickly became more complicated, as the realization that hydrogen extracted from natural gas (aka grey hydrogen) or coal (again, black hydrogen, or sometimes, brown hydrogen, depending on the carbon content and energy density of the source coal) could be extracted in a less harmful way, by introducing methods of carbon capture and storage.

These cleaner methods for hydrogen extraction earned the lofty color coding of blue, just one shade away from green in the rainbow spectrum and a safe distance from the less delightful and inspiring colors grey, brown, and black.

Then along came pyrolysis — a method for producing hydrogen through methane cracking, plainly, the decomposition of methane, CH₄, into solid carbon and hydrogen gas, without the introduction of oxygen. This method results in significantly less (if any) creation of carbon dioxide as a by-product. Logic would lead one to categorize this process with a color that lies further away from black than exalted cousin, green hydrogen.

However, the solid carbon that remains after pyrolysis retains over one-third of the original energy available from methane and could tip the GHG scales negatively if not utilized in an environmentally responsible manner, so it’s not a clear-cut winner in the game of lower-carbon energy production. Thus, it is nestled between green and blue and often referred to as “turquoise hydrogen” production.

Other hydrogen production methods — pink, purple, and red — defy rainbow logic as they have all proven to result in higher GHG emissions than the original “clean” queen, green hydrogen, despite following a similar electrolysis process to separate hydrogen and oxygen from one another in its original composition as water. The source of electricity used in the electrolysis process determines the color-code here, as pink hydrogen is generated from nuclear power, red hydrogen is generated from nuclear thermal power, and purple hydrogen is generated from a combination of nuclear power and nuclear thermal power.

Yellow hydrogen seems to not yet have found a clear definition. Some argue it refers to green hydrogen produced exclusively from solar-powered electrolysis, while others claim it to be the child of mixed green/gray hydrogen. Artists should probably keep a far distance from this conversation, unless the energy produced from the steam coming out of their ears could perform electrolysis more cleanly than any of the green hydrogen solutions.

Finally, we have white hydrogen, the naturally occurring, zero-carbon emitting, plentiful element found in the earth’s crust – which is also the least understood of all the hydrogen extraction methodologies.

Remember, hydrogen is the first element in the periodic table, meaning it’s density is very low. Hydrogen knows no bounds, and once it escapes from its natural home, it either floats off into outer space or attaches itself to another element to form a more containable compound, like water.

Many believe white hydrogen to be the unquestionable solution to a lower-carbon energy future but there is still much to be understood. Capturing, storing, and transporting white hydrogen remain mostly theoretical, despite recent progress, which includes one recently announced Houston lab dedicated to hydrogen transport. Another Houston company, Syzygy has raised millions with its light-based catalyst for hydrogen production.

For example, Cemvita, a local Houston chemical manufacturing company, predicts a future powered by gold hydrogen: white hydrogen sourced from depleted oil and gas wells. Many wildcatters believe strongly in a new era of exploration for white hydrogen using techniques refined in oil and gas exploration, including reservoir analysis, drilling, and fracking.

Without a doubt, investigating further the various hydrogen extraction theories is surely a craveable new challenge for the sciences. But perhaps the current color-coding nomenclature for hydrogen needs refinement, as well.

Unless used in the scientific context of wavelength, color-based labels represent an ambiguous classification tool, as the psychology of color depends on modern societal norms. The association of colors with the various hydrogen production methodologies does very little to distinguish the climate impact each method produces. Additionally, the existing categorizations do not consider any further distribution or processing of the produced hydrogen — a simple fact that could easily negate any amount of cleanliness implied by the various production methods — and a topic for a future article.

For now, hydrogen represents one of the front-running sources for a lower-carbon energy future, but it’s up to you if that’s best represented by a blue ribbon, gold medal, white star, or cold-hard greenbacks.

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Lindsey Ferrell is a contributing writer to EnergyCapitalHTX and founder of Guerrella & Co.

Oceanit's lab, H2XCEL — short for “Hydrogen Accelerator” — aims to integrate hydrogen into the current energy infrastructure, a serious cost-saver for companies looking to make the energy transition. Photo via Getty Images

New lab opens in Houston to help make pipelines safer for hydrogen transport

HOU-DRYGEN

An innovative Hawaii-based technology company is saying aloha to Houston with the opening of a unique test laboratory that aims to increase hydrogen pipeline safety. It is the latest sign that Houston is at the forefront of the movement to hydrogen energy.

The lab, H2XCEL — short for “Hydrogen Accelerator” — aims to integrate hydrogen into the current energy infrastructure, a serious cost-saver for companies looking to make the energy transition. Oceanit, a Honolulu-based technology company, is behind the lab.

H2XCEL will be the only lab in the U.S. capable of testing hydrogen and methane mixtures at high temperatures and pressures. Its aim is to protect pipelines from hydrogen embrittlement — when small hydrogen molecules penetrate pipe walls and damage the metal, potentially causing cracks, leaks, and failures.

The lab uses Oceanit’s HydroPel pipeline nanotechnology, developed with the support of the U.S. Department of Energy. Photo courtesy of Oceanit

“The launch of this testing facility is a major milestone. It is the only lab of its kind in the U.S. and the work underway at H2XCEL will accelerate the transition toward a hydrogen-driven economy,” Patrick Sullivan, the CEO and founder of Oceanit, says in a news release. “We see a toolset emerging that will enable the U.S. to accelerate toward a low-carbon future.”

Houston was the obvious choice to launch the new lab, says Oceanit’s Direct of Marketing James Andrews.

“Houston is the energy capital of the world," Andrews explains. "Oceanit knew that if we wanted to make inroads with decarbonization technologies, we needed to be physically present there.”

H2XCEL uses Oceanit’s HydroPel pipeline nanotechnology, developed with the support of the U.S. Department of Energy. It is a surface treatment that protects metals, eliminating the need to build new pipelines using expensive, hydrogen-resistant metals. The estimated cost of building new hydrogen pipelines is approximately $4.65 million per mile, according to a press release from the company. In contrast, HydroPel can be applied to existing pipelines to prevent damage, and the cost to refurbish one mile of existing steel pipeline is less than 10 percent of the cost per mile for new pipeline construction.

One of the main objectives of the new Houston lab will be to test hydrogen-methane blends under varying conditions to determine how to use HydroPel safely. By enabling the energy sector to reduce its climate impact while continuing to provide energy using existing infrastructure, methane-hydrogen blends capitalize on hydrogen’s carbon-free energy potential and its positive impact on climate change.

“We want to create a situation where we can speed up energy transition,” says Andrews. “By blending it into a safer environment, we can make it attractive to bigger players.”

Oceanit already has a Houston presence where the team is focused on several other technologies related to hydrogen, including HeatX, a water-based technology for heat transfer surfaces in refineries, power plants, and more, as well as their HALO system, which utilizes directed energy to produce clean hydrogen wastewater and other waste byproducts produced in industrial businesses.

A recent report issued by Rice University’s Baker Institute for Public Policy about the hydrogen economy

in Texas insists that the Lone Star State is an ideal hub for hydrogen as an energy source. The report explains that with the state’s existing oil and gas infrastructure, Texas is the best spot to affordably develop hydrogen while managing economic challenges. The Houston region already produces and consumes a third of the nation’s hydrogen, according to the report, and has more than 50 percent of the country’s dedicated hydrogen pipelines.

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SLB to expand data center cooling business via $4 billion acquisition

cool deal

Houston’s SLB has announced plans to acquire German thermal management and heat exchange technology organization Kelvion for approximately $4 billion.

SLB reports in a news release that the acquisition is expected to boost its Data Center Solutions business, as thermal management technologies are key to cooling artificial-intelligence-related infrastructure. Data centers continue to pose numerous challenges, but SLB believes thermal management technology can help ease energy burdens.

“Data centers are becoming more sophisticated and energy-intensive, and customers are increasingly looking for partners that can optimize how critical systems work together across the facility and help bring new capacity online faster,” Gavin Rennick, president of SLB’s New Energy and Industrial business, said in the release. “Thermal management is central to that challenge, and this acquisition allows us to address it directly by delivering more integrated cooling solutions, accelerating innovation, optimizing thermal efficiency, and more directly embedding thermal management into our modular infrastructure offering.”

SLB will acquire Kelvion from funds managed by New York-based financial services group Apollo Global Management Inc. for approximately $3.4 billion in cash and will assume about $700 million of debt, according to the release. The deal is expected to close in Q1 of 2027.

SLB says the acquisition will help it dramatically scale revenue generated by the data center sector.

“This transaction accelerates our ambition to become an industrial technology partner to the data center industry and help customers address the growing infrastructure complexity required to scale AI,” Olivier Le Peuch, CEO of SLB, added in a news release. “Kelvion advances our path toward more integrated data center infrastructure solutions, expands our addressable market — more than doubling our revenue opportunity per gigawatt of delivered capacity — and allows us to scale both our offerings and the global reach of the business.”

SLB reports that it expects its Data Center Solutions business revenues to grow by more than 90 percent annually between 2024 and 2026.

If the acquisition is approved, the combined company will target revenue of $4.5 billion to $5 billion for its data center solutions business in 2028, according to the release.

Kelvion has previously served customers in AI infrastructure, energy system transformation and energy/ industrial markets. Its past work focuses on heat pumps, renewables, carbon capture and processing solutions for thermal management. According to the news release, Kelvion's data center revenue is expected to reach about $1.2 billion in 2026, and the sector is considered the company’s "largest and fastest-growing end market.

Tesla files plans for Houston-area solar plant & more top energy news

Trending news

Editor's note: Houston energy news in August was fueled by Tesla solar plans, a massive deal for ERock, and Halliburton Labs' newest cohort. Below are the five most-read EnergyCapitalHTX stories published during the second half of the month.

Telsa eyes Houston area for $10 billion solar manufacturing plant

Electric vehicle and clean energy company Tesla is considering building a new $10.1 billion solar cell manufacturing facility in Fort Bend County, according to documents filed with the Texas Comptroller’s Office. If approved, the plant, called Project Sun City, would be located on a 3,050-acre site off FM 762 and FM 1994 in Richmond, Texas. Tesla aims to finish construction in 2028, with the plant being operational by early 2029. Continue reading.

Houston’s data center capacity set to grow 80%, report says

Houston stands to benefit from constraints dogging data center markets elsewhere in Texas, a new report indicates. This comes against the backdrop of Texas surpassing Virginia as the country’s top state for data centers — and amid deepening opposition to these facilities. The report, published by commercial real estate services provider JLL, foresees Houston continuing to gain traction in data center development as occupants seek “scalable alternatives” to Texas markets experiencing supply-and-demand imbalances. Continue reading.

EV surge could shutter 40 refineries by 2040, Wood Mackenzie report warns

The rise of electric vehicles could spell trouble for Houston’s oil and gas sector, a new report suggests. But the oil and gas industry stands to benefit from potential sluggishness in U.S. adoption of EVs. If worldwide EV adoption rises as expected, global oil demand could fall by five million barrels per day by 2040, accelerating the closure of about 40 oil refineries, says the report, published by energy research and consulting firm Wood Mackenzie. The firm’s North American hub is in Houston. Continue reading.

ERock scores Anthropic deal, sees order backlog soar to $1.7B

Two months after its $400 million IPO, Houston-based ERock (NYSE: EROC) has landed a power-generator deal with AI powerhouse Anthropic, owner of the Claude platform. In its Q2 earnings report, ERock says it will provide equipment to Anthropic with a 470-megawatt capacity. ERock specializes in utility-grade, onsite microgrid power systems for data centers and other customers. The company previously did business as Enchanted Rock. Continue reading.

Halliburton Labs adds 3 energy, materials startups to Houston incubator

Three new companies have joined Halliburton Labs, the incubator for early-stage energy and hardtech startups run by Houston energy giant Halliburton. Halliburton Labs provides the emerging companies with mentorship, industry connections, laboratory access and other resources as they work toward commercialization. The latest companies to join the incubator focus on battery materials, resource recovery and gas separation solutions to address some of the "key bottlenecks in the energy and industrial landscape." Continue reading.

Houston geothermal startup bumps Series B to $180M with Nabors investment

fresh funding

Houston-based geothermal startup Quaise Energy has closed its Series B fundraising round at $180 million after inking a significant investment from another local energy leader.

Quaise, which is developing a 50-megawatt superhot geothermal plant in Oregon, announced a "first close" of the round last month at $134 million, led by San Francisco-based investment firm Prelude Ventures. The $46 million bump has been fueled by a $35 million investment from Houston-based Nabors Industries.

The funding will go toward the continued development of the company's superhot geothermal plant, Project Obsidian, as well as the commercialization of Quaise's millimeter-wave drilling system, according to a news release.

“We are unlocking the most powerful clean energy source on Earth, and the Series B signals deep conviction across a wide range of investors,” Carlos Araque, Quaise CEO and president, said in the release. “Nabors is an invaluable partner as we move millimeter wave drilling to full commercial operations at Project Obsidian and beyond.”

Nabors, a repeat investor in Quaise, has also entered into a strategic framework agreement with Quaise. Under the agreement, Quaise will have access to a dedicated Nabors land rig and drilling platform. Nabors will also provide expertise in reservoir modeling, well design and drilling strategy.

Last year, Quaise drilled to a depth of about 330 feet using its millimeter-wave technology at its field site in Central Texas. Canary Media previously reported that Quaise plans to drill to nearly 3,300 feet later this year and to deploy its millimeter-wave technology at its power plant in 2027. The plant is expected to deliver power to the Pacific Northwest in 2030.

Quaise and Nabors say the partnership will improve drilling performance, reduce costs and accelerate project timelines.

“Superhot geothermal has the potential to make clean energy ubiquitous. That is why we are excited about our close relationship with Quaise,” Anthony Petrello, president and CEO of Nabors, added in the release. “Quaise’s millimeter wave technology changes the equation entirely by reaching superhot rock at temperatures and depths that are inaccessible with conventional drilling, transforming geothermal from a location-dependent resource into a global energy solution. Combined with Nabors’ drilling expertise and infrastructure, we see a path to gigawatt-scale geothermal power that no other company can offer today.”

Quaise reports that with the latest funding, it has now raised $280 million. It raised $21 million in a Series A1 financing round in 2024 and a $52 million Series A in 2022.

The company announced in March that it was aiming to raise $200 million for Project Obsidian through $100 million in Series B funding, plus an additional $100 million from grants, debt and project-level finance.

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