The DOE has deployed funding for direct air capture, events not to miss, and more things to know this week. Photo via Getty Images

Editor's note: It's a new week — start it strong with three quick things to know in Houston's energy transition ecosystem. The United States Department of Energy doled out some big money last week, two new energy innovation leaders to know, and an event not to miss this week.

DOE grants millions for carbon capture

A handful of direct air capture projects with ties to Houston just received federal funding. Photo via Getty Images

Last week, there were two different DOE funding stories on EnergyCapital — both about federal funding for direct air capture (DAC) projects.

A subsidiary of Houston-based energy company Occidental snagged a roughly $600 million federal grant to establish a hub south of Corpus Christi that’ll remove carbon emissions from the air. The U.S. Department of Energy’s Office of Clean Energy Demonstrations grant, awarded to Occidental subsidiary 1PointFive, will go toward building the South Texas Direct Air Capture (DAC) Hub. It’ll be located on about 106,000 leased acres within a Kleberg County site at the iconic King Ranch. The hub will comprise 30 individual DAC projects. Read more.

Around the same time, four carbon capture projects with ties to the Houston area were announced to have collectively received more than $10 million in funding from the DOE. Chevron, Fervo Energy, and more were involved in those grants. Read more.

HOU to know in energy transition

Two recent appointments were announced last week. Photos courtesy

Two Houston organizations looking to advance the energy transition named new leaders last week.

Activate named Jeremy Pitts as the Houston managing director this month. The nonprofit, which announced its new Houston program earlier this year, was founded in Berkeley, California, in 2015 to bridge the gap between the federal and public sectors to deploy capital and resources into the innovators creating transformative products. Pitts will lead the program locally, including working with the inaugural cohort, to be determined later this year for 2024. Read more.

After a months-long search, Greentown Labs named its next leader. Kevin Knobloch, who served as chief of staff of the United States Department of Energy in President Barack Obama’s second term, will be CEO of Greentown Labs, effective September 5. In his role, Knobloch will oversee both Greentown locations in Houston and Somerville, Massachusetts, outside of Boston. Read more.

Upcoming events to put on your radar

Plan the rest of your August accordingly.

This week:

  • August 22 — The 2nd Annual Renewable Energy Leadership Conference, hosted by Rice Business Executive Education, voices from leading renewable energy companies, the DOE, and capital providers will gather to discuss the impact the IRA has had on Houston and beyond, and what to expect going forward.
  • August 22-23 — SPE Energy Transition Symposium's goal is to deliver a prominent and dedicated energy transition event by collecting and disseminating the knowledge from industry leaders, technical experts, academicians, practitioners, financial community and ESG leaders, and together through collaboration, advance the conversations, technology and exchanges that will move our industry forward.

Later this month:

  • August 28-30 — Industrial IMMERSIVE Week attracts the most industrial, energy, and engineering tech professionals making investment, strategy and tactical decisions, or building, scaling and executing pioneering XR/3D/Simulations, digital twin, reality capture, edge /spatial computing, AI/ML, connected workforce & IIoT projects within their enterprise.
  • August 30-31 — Carbon & ESG Strategies Conference, presented by Hart Energy, will highlight carbon capture and storage projects and technologies onshore and offshore, direct air capture, enhanced oil recovery, responsibly sourced gas, renewable natural gas, federal funding challenges and insurance issues, ESG initiatives, regulatory concerns and much more.

University of Houston gets new funding, events not to miss, and more things to know this week. Photo via UH.edu

3 things to know this week: Baker Hughes makes moves, events not to miss, and more

Hou knew?

Editor's note: It's a new week — start it strong with three quick things to know in Houston's energy transition ecosystem. Baker Hughes makes headlines, a new energy innovation leader has been named, and three events to add to your August calendar.

Baker Hughes's energy transition moves

Last week, if you were reading EnergyCapital carefully, you may have noticed two different stories from Houston-based Baker Hughes.

The Baker Hughes Foundation granted $100,000 to the University of Houston Energy Transition Institute. The funding will work towards the ETI’s goals to support workforce development programs, and environmental justice research. UH's ETI launched a year ago through a $10 million grant from Shell USA Inc. and Shell Global Solutions (US) Inc. Read more.

Also last week, Baker Hughes announced that it has entered into a memorandum of understanding with Virginia-based Avports. The agreement is "to develop, implement and operate onsite microgrid solutions for the airport industry," according to a news release from Baker Hughes, with a goal of reducing emissions and work toward a future with zero-emission infrastructure, including buildings, vehicles, etc.

"Baker Hughes' commitment to emissions reductions has allowed us to develop and successfully deploy low-carbon and hydrogen technologies to advance the energy transition in many industries," Bob Perez, vice president of project development at Baker Hughes, says in a statement. "The opportunity to bring these solutions to airports, in collaboration with Avports' proven track record in airport management, is very promising as the increasing needs and demands of these infrastructures must be more resilient, efficient and cost-effective." Read more.

Person to know: Timmeko Moore Love

Greentown Labs has named its inaugural Greentown Houston general manager. The climatetech incubator named Timmeko Moore Love to the role last week.

“Greentown Labs is committed to ensuring founders’ success and is an agent of action in the fight against climate change,” says Love in the release. “I am excited to continue my service to the Greater Houston climate innovation ecosystem through this esteemed platform, and partner internally and externally to evolve and expand our services and programs.” Read more.

Upcoming events to put on your radar

It's a slow week for energy transition events, but here are three later this month you need to know about.

  • August 22-23 — SPE Energy Transition Symposium's goal is to deliver a prominent and dedicated energy transition event by collecting and disseminating the knowledge from industry leaders, technical experts, academicians, practitioners, financial community and ESG leaders, and together through collaboration, advance the conversations, technology and exchanges that will move our industry forward.
  • August 28-30 — Industrial IMMERSIVE Week attracts the most industrial, energy, and engineering tech professionals making investment, strategy and tactical decisions, or building, scaling and executing pioneering XR/3D/Simulations, digital twin, reality capture, edge /spatial computing, AI/ML, connected workforce & IIoT projects within their enterprise.
  • August 30-31 — Carbon & ESG Strategies Conference, presented by Hart Energy, will highlight carbon capture and storage projects and technologies onshore and offshore, direct air capture, enhanced oil recovery, responsibly sourced gas, renewable natural gas, federal funding challenges and insurance issues, ESG initiatives, regulatory concerns and much more.

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UH's $44 million mass timber building slashed energy use in first year

building up

The University of Houston recently completed assessments on year one of the first mass timber project on campus, and the results show it has had a major impact.

Known as the Retail, Auxiliary, and Dining Center, or RAD Center, the $44 million building showed an 84 percent reduction in predicted energy use intensity, a measure of how much energy a building uses relative to its size, compared to similar buildings. Its Global Warming Potential rating, a ratio determined by the Intergovernmental Panel on Climate Change, shows a 39 percent reduction compared to the benchmark for other buildings of its type.

In comparison to similar structures, the RAD Center saved the equivalent of taking 472 gasoline-powered cars driven for one year off the road, according to architecture firm Perkins & Will.

The RAD Center was created in alignment with the AIA 2030 Commitment to carbon-neutral buildings, designed by Perkins & Will and constructed by Houston-based general contractor Turner Construction.

Perkins & Will’s work reduced the building's carbon footprint by incorporating lighter mass timber structural systems, which allowed the RAD Center to reuse the foundation, columns and beams of the building it replaced. Reused elements account for 45 percent of the RAD Center’s total mass, according to Perkins & Will.

Mass timber is considered a sustainable alternative to steel and concrete construction. The RAD Center, a 41,000-square-foot development, replaced the once popular Satellite, which was a food, retail and hangout center for students on UH’s campus near the Science & Research Building 2 and the Jack J. Valenti School of Communication.

The RAD Center uses more than a million pounds of timber, which can store over 650 metric tons of CO2. Aesthetically, the building complements the surrounding campus woodlands and offers students a view both inside and out.

“Spaces are designed to create a sense of serenity and calm in an ecologically-minded environment,” Diego Rozo, a senior project manager and associate principal at Perkins & Will, said in a news release. “They were conceptually inspired by the notion of ‘unleashing the senses’ – the design celebrating different sights, sounds, smells and tastes alongside the tactile nature of the timber.”

In addition to its mass timber design, the building was also part of an Energy Use Intensity (EUI) reduction effort. It features high-performance insulation and barriers, natural light to illuminate a building's interior, efficient indoor lighting fixtures, and optimized equipment, including HVAC systems.

The RAD Center officially opened Phase I in Spring 2024. The third and final phase of construction is scheduled for this summer, with a planned opening set for the fall.

Experts on U.S. energy infrastructure, sustainability, and the future of data

Guest column

Digital infrastructure is the dominant theme in energy and infrastructure, real estate and technology markets.

Data, the byproduct and primary value generated by digital infrastructure, is referred to as “the fifth utility,” along with water, gas, electricity and telecommunications. Data is created, aggregated, stored, transmitted, shared, traded and sold. Data requires data centers. Data centers require energy. The United States is home to approximately 40% of the world's data centers. The U.S. is set to lead the world in digital infrastructure advancement and has an opportunity to lead on energy for a very long time.

Data centers consume vast amounts of electricity due to their computational and cooling requirements. According to the United States Department of Energy, data centers consume “10 to 50 times the energy per floor space of a typical commercial office building.” Lawrence Berkeley National Laboratory issued a report in December 2024 stating that U.S. data center energy use reached 176 TWh by 2023, “representing 4.4% of total U.S. electricity consumption.” This percentage will increase significantly with near-term investment into high performance computing (HPC) and artificial intelligence (AI). The markets recognize the need for digital infrastructure build-out and, developers, engineers, investors and asset owners are responding at an incredible clip.

However, the energy demands required to meet this digital load growth pose significant challenges to the U.S. power grid. Reliability and cost-efficiency have been, and will continue to be, two non-negotiable priorities of the legal, regulatory and quasi-regulatory regime overlaying the U.S. power grid.

Maintaining and improving reliability requires physical solutions. The grid must be perfectly balanced, with neither too little nor too much electricity at any given time. Specifically, new-build, physical power generation and transmission (a topic worthy of another article) projects must be built. To be sure, innovative financial products such as virtual power purchase agreements (VPPAs), hedges, environmental attributes, and other offtake strategies have been, and will continue to be, critical to growing the U.S. renewable energy markets and facilitating the energy transition, but the U.S. electrical grid needs to generate and move significantly more electrons to support the digital infrastructure transformation.

But there is now a third permanent priority: sustainability. New power generation over the next decade will include a mix of solar (large and small scale, offsite and onsite), wind and natural gas resources, with existing nuclear power, hydro, biomass, and geothermal remaining important in their respective regions.

Solar, in particular, will grow as a percentage of U.S grid generation. The Solar Energy Industries Association (SEIA) reported that solar added 50 gigawatts of new capacity to the U.S. grid in 2024, “the largest single year of new capacity added to the grid by an energy technology in over two decades.” Solar is leading, as it can be flexibly sized and sited.

Under-utilized technology such as carbon capture, utilization and storage (CCUS) will become more prominent. Hydrogen may be a potential game-changer in the medium-to-long-term. Further, a nuclear power renaissance (conventional and small modular reactor (SMR) technologies) appears to be real, with recent commitments from some of the largest companies in the world, led by technology companies. Nuclear is poised to be a part of a “net-zero” future in the United States, also in the medium-to-long term.

The transition from fossil fuels to zero carbon renewable energy is well on its way – this is undeniable – and will continue, regardless of U.S. political and market cycles. Along with reliability and cost efficiency, sustainability has become a permanent third leg of the U.S. power grid stool.

Sustainability is now non-negotiable. Corporate renewable and low carbon energy procurement is strong. State renewable portfolio standards (RPS) and clean energy standards (CES) have established aggressive goals. Domestic manufacturing of the equipment deployed in the U.S. is growing meaningfully and in politically diverse regions of the country. Solar, wind and batteries are increasing less expensive. But, perhaps more importantly, the grid needs as much renewable and low carbon power generation as possible - not in lieu of gas generation, but as an increasingly growing pairing with gas and other technologies. This is not an “R” or “D” issue (as we say in Washington), and it's not an “either, or” issue, it's good business and a physical necessity.

As a result, solar, wind and battery storage deployment, in particular, will continue to accelerate in the U.S. These clean technologies will inevitably become more efficient as the buildout in the U.S. increases, investments continue and technology advances.

At some point in the future (it won’t be in the 2020s, it could be in the 2030s, but, more realistically, in the 2040s), the U.S. will have achieved the remarkable – a truly modern (if not entirely overhauled) grid dependent largely on a mix of zero and low carbon power generation and storage technology. And when this happens, it will have been due in large part to the clean technology deployment and advances over the next 10 to 15 years resulting from the current digital infrastructure boom.

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Hans Dyke and Gabbie Hindera are lawyers at Bracewell. Dyke's experience includes transactions in the electric power and oil and gas midstream space, as well as transactions involving energy intensive industries such as data storage. Hindera focuses on mergers and acquisitions, joint ventures, and public and private capital market offerings.

Rice researchers' quantum breakthrough could pave the way for next-gen superconductors

new findings

A new study from researchers at Rice University, published in Nature Communications, could lead to future advances in superconductors with the potential to transform energy use.

The study revealed that electrons in strange metals, which exhibit unusual resistance to electricity and behave strangely at low temperatures, become more entangled at a specific tipping point, shedding new light on these materials.

A team led by Rice’s Qimiao Si, the Harry C. and Olga K. Wiess Professor of Physics and Astronomy, used quantum Fisher information (QFI), a concept from quantum metrology, to measure how electron interactions evolve under extreme conditions. The research team also included Rice’s Yuan Fang, Yiming Wang, Mounica Mahankali and Lei Chen along with Haoyu Hu of the Donostia International Physics Center and Silke Paschen of the Vienna University of Technology. Their work showed that the quantum phenomenon of electron entanglement peaks at a quantum critical point, which is the transition between two states of matter.

“Our findings reveal that strange metals exhibit a unique entanglement pattern, which offers a new lens to understand their exotic behavior,” Si said in a news release. “By leveraging quantum information theory, we are uncovering deep quantum correlations that were previously inaccessible.”

The researchers examined a theoretical framework known as the Kondo lattice, which explains how magnetic moments interact with surrounding electrons. At a critical transition point, these interactions intensify to the extent that the quasiparticles—key to understanding electrical behavior—disappear. Using QFI, the team traced this loss of quasiparticles to the growing entanglement of electron spins, which peaks precisely at the quantum critical point.

In terms of future use, the materials share a close connection with high-temperature superconductors, which have the potential to transmit electricity without energy loss, according to the researchers. By unblocking their properties, researchers believe this could revolutionize power grids and make energy transmission more efficient.

The team also found that quantum information tools can be applied to other “exotic materials” and quantum technologies.

“By integrating quantum information science with condensed matter physics, we are pivoting in a new direction in materials research,” Si said in the release.