The first phase of the Pelican Gulf Coast Carbon Removal project recently received nearly $4.9 million in grants. Photo via Getty Images

The University of Houston is spilling details about its role in a potential direct air capture, or DAC, hub in Louisiana.

The first phase of the Pelican Gulf Coast Carbon Removal project recently received nearly $4.9 million in grants, including almost $3 million from the U.S. Department of Energy. Led by Louisiana State University, the Pelican consortium includes UH and Shell, whose U.S. headquarters is in Houston.

The funding will go toward studying the feasibility of a DAC hub that would pull carbon dioxide from the air and either store it in deep geological formations or use it to manufacture various products, such as concrete.

“This support of development and deployment of direct air capture technologies is a vital part of carbon management and allows us to explore sustainable technological and commercial opportunities,” Ramanan Krishnamoorti, vice president for energy and innovation at UH, says in a news release.

Chemical engineer Joseph Powell, founding executive director of the university’s Energy Transition Institute, will be the primary leader of UH’s work on the Pelican project.

“DAC can be an important technology for addressing difficult-to-decarbonize sectors such as aviation and marine transport as well as chemicals, or to achieve negative emissions goals,” Powell says.

Powell, a fellow of the American Institute of Chemical Engineers, was Shell’s first-ever chief scientist for chemical engineering from 2006 until his retirement in 2020. He joined Shell in 1988.

Shell is the Pelican project’s “technical delivery partner.”

“Advancing carbon management technologies is a critical part of the energy transition, and effectively scaling this technology will require continued collaboration, discipline, and innovation,” says Adam Prince, general manager of carbon capture storage strategy and growth at Shell.

The University of Houston has received a grant from the Baker Hughes Foundation. Photo via UH.edu

University's energy transition hub scores $100,000 grant from energy corporation

just gifted

A Houston school is cashing in a major gift from a local energy company in order to support the industry's future workforce, research, and more.

The University of Houston Energy Transition Institute received a $100,000 grant from the Baker Hughes Foundation this week, which will work towards the ETI’s goals to support workforce development programs, and environmental justice research.

The program addresses the impact of energy transition solutions in geographical areas most-affected by environmental impacts.

“We are proud to support the University of Houston in its environmental justice research and workforce development programs; at Baker Hughes, we strive to take energy forward, and are committed to a fair and just energy transition,” says Chief Sustainability Officer Allyson Book in a news release. “Novel educational approaches centered around social, climate and environmental justice are crucial to creating a sustainable future for generations to come.”

The grant aims to help ETI in analyzing environmental footprints of energy use processes, energy use processes, impact on health, and emissions, as well as support the university’s Energy Scholars Program, which focuses on research programs on carbon management, hydrogen, and circular plastics for undergraduate students.The donation also supports Baker Hughes’ work with the United Nations’ Sustainable Development Goals (SDGs) that work to ensure “inclusive and equitable quality education for all.”

“We look forward to working with the Baker Hughes Foundation to address grand challenges in energy and chemicals and create a sustainable and equitable future for all,” says Ramanan Krishnamoorti, vice president of energy and innovation at UH.

ETI launched a year ago through a $10 million grant from Shell USA Inc. and Shell Global Solutions (US) Inc., and is led by Joe Powell, who opted to take the helm of the program over retiring, telling EnergyCapital that it was an opportunity he couldn't pass up.

UH has announced a central campus innovation hub that will house UH's programs for STEM, social sciences, business and arts. Slated to open in 2025, the 70,000 square foot hub will house a makerspace, the Cyvia and Melvyn Wolff Center for Entrepreneurship, the Energy Transition Institute, innovation programs, and Presidential Frontier Faculty labs and offices.

“The University of Houston aims to transform lives and communities through education, research, innovation and service in a real-world setting," Krishnamoorti says in a news release. “I am confident that working together we will make a greater impact.”

Joseph Powell, founding director of UH Energy Transition Institute, discusses the institute's role in the clean energy landscape and their corporate partnerships. Photo via uh.edu

University of Houston's energy transition exec unpacks future of institute, partnerships, and more

Q&A

Joseph Powell is about six months into his role as the founding director of the University of Houston’s Shell-backed Energy Transition Institute but already is eyeing how the Institute can aid generations to come through clean energy.

The Energy Transition Institute, which launched a year ago through a $10 million grant from Shell USA Inc. and Shell Global Solutions (US) Inc., is focused on three core areas of clean energy: hydrogen, carbon management, and circular plastics. Powell previously served as chief scientist for Shell as a chemical engineer and has co-invented 60 granted patents.

Powell discussed with EnergyCapital the projects ETI is excited for, opportunities for students to get involved, and their partnership with corporations.

EnergyCapitalHTX: To get started with a little bit of background, the University of Houston Energy Transition Institute was established in March 2020 with a $10 million commitment from Shell. So why did the university decide now is the time for an institute like this to be formed?

Joseph Powell: Houston is the energy capital, and the energy transition has been on everyone's mind, and so certainly now is the right time for an offering to industry to look at how to coordinate activities in that space. We reached out to Shell, which has really made strong commitments in terms of making the pivot from being an oil and gas company to being an energy company and really embracing the energy transition and everything that goes along with that. There was a strong relationship between University of Houston and Shell on the recruitment side, so a number of the Shell staff and employees. UH has been one of the principal suppliers of talent to Shell as an organization, also on the research side in terms of research around hydrogen chemical reaction engineering, and other aspects on the social and community benefits side of what happens with energy. So, there's been quite a bit of overlap. I think Shell saw it as really important to be partnering in the energy capital of the world, to be providing that pipeline of talent for what's going to be needed for the energy transition.

EC: You decided to come to UH to lead the Energy Transition Institute over retiring. What inspired you to take on this role? What’s your vision for the organization?

JP: It was an opportunity I couldn't pass up. I had worked 36 years in the industry, for Exxon and 32 years with Shell. The elements of the Energy Transition Institute were something that I was very passionate about working on with Shell, since I've been promoted to chief scientist of chemical engineering for the growth global group in 2006. I was involved in helping Shell set its strategy to become a full energy company and chemicals, not just oil and gas. I was involved in the elements of that transition, and then I also had a very strong interest in sustainability in terms of how to manage not only the greenhouse gas footprints of the company, but also elements on the chemical side that go with sustainability.

Shell wanted to combine those two into an energy transition Institute, circular plastics and chemicals were a major focus of that, along with hydrogen as a clean vector for future energy. I was involved with Shell and helped to put together some of their moonshots for how hydrogen can be used in the future economy. The Biden administration has now termed moonshots as Earthshots for the US to be able to use hydrogen as that clean vector to deliver renewable and other forms of energy going forward, as well as carbon management, so I was heavily involved Shell’s planning for how to deal with CO2, whether to capture it and put it underground, or capture it and use it. I'm on the National Academy study team right now, looking at what is the potential to be using some of that CO2 into products as opposed to storing it underground. All of those elements were important and in line with things that I care about and have been heavily involved with, throughout my career. So, why retire when one can be engaged with all of those types of things and now help the next generation come up to speed and take that over and drive it into 2050 and beyond what needs to be done?

EC: How is UH engaging with corporate partners? Why is a collaboration of this nature important?

JP: This collaboration is important for several reasons. One is that we are that bridge to the students and workforce of the future. It's very important for this generation to be as excited about careers and energy as I was, coming up during the energy crisis of the last century and we thought we were absolutely out of energy. We had rationing of gasoline and other things going on, back when I was in high school. Now we have many sources of energy, in a certain sense an energy abundance, but we really need to be looking at the environmental footprint, impact on the climate and then what forms of energy we want to be using. Then you add to that the issue with the impact of plastics on the environment, and how to drive to a more circular economy where we're recycling those and having less of that escape into the environment; those are all strong drivers of what needs to be done going forward.

It takes a lot of energy to process chemicals, plastics, and materials in a circular manner. Developing that workforce of the future means we need the students who want to engage in these efforts and making sure that those opportunities are available across the board to people of all different economic backgrounds in terms of participating in what is going to be just a tremendous growth engine for the future in terms of jobs and opportunities. You're looking at trillions of dollars of annual investment that's needed to manage the energy transition, so it's a really exciting opportunity for those who want to be going into those careers. It's not just science and engineering, but also jobs in law, policy, and communications, because there's a tremendous need for knowledge and background in the energy transition in order to be effective in that going forward. We want to have all the good talent that can be attracted to that arena as a way to address the problem. It's a grand challenge.

We want to make sure that in addition to the research opportunities, since UH is a Tier 1 research institute, we focus on working very closely with industry; there's a number of multinational and local chemical and energy companies that have their research centers and home offices in the Houston area. We can develop those close relationships between the researchers and business interests involved with the students at the university, because we're right here and co-located and can really develop some very strong working teams in that space. It's been exciting to be responding to the federal grant opportunities, which have been abundant in the last year and a half and putting together proposals, to be engaging the industry investigators along with the university students to work on some of those problems. It's a good win-win for both.

We also get to be a trusted voice in the overall equation because there's a lot to know and understand about energy and circular chemicals. They’re more nuanced and complex than what may appear in the news headlines in terms of understanding the trade-offs that have to be worked out, in order to optimize for everyone who's involved. The university can bring in that broad set of stakeholders and have a conversation and make sure that all those co-benefits are understood and the issues that come with energy infrastructure are also worked through for people impacted by the infrastructure but also the benefits of clean air, cleaner environment, and reduced risk of climate change.

EC: Are there any particular technologies the institute is focusing on or excited about at the moment?

JP: I'm really big on hydrogen as an energy vector for the future. Currently, we use hydrogen primarily in refining petroleum into gasoline and diesel and also making fertilizer which is very important for mankind. There was a Nobel Prize on that, you know, more than 100 years ago, and the importance of being able to grow food at rates the planet’s population requires.

Hydrogen now is being looked at, beyond those applications as essentially the diesel or gasoline of the future and also the liquefied natural gas of the future. It can be a clean vector, because you can put it into a fuel cell and generate energy cleanly where water is the only product of that reaction. That can be used to drive quite a number of energy related processes that are currently using combustion of fossil fuels that contain carbon. One of the interesting things is that hydrogen can be supplied to trucks and buses, agricultural tractors, and such. Most of the goods that you're buying today are produced in warehouses where the forklifts are running on hydrogen fuel cells rather than batteries because they refuel so quickly. It's cleaner than emissions. So then there's good air quality in the warehouses. There are more than 60,000 hydrogen-fueled forklifts now in the US, because of that value proposition. We see that for this heavy duty transportation, hydrogen is that very clean vector, you can make it by taking renewable energy and splitting water into hydrogen so it can be very clean. It can also be made from the abundant natural gas we have in Texas and storing the CO2 underground and then using the clean hydrogen for that fuel. That's one of the very exciting new value propositions that go with the Institute.

The second one is carbon management. The Energy Transition Institute will sit within UH Energy, which was founded a number of years ago and so it's looking at the transition part of energy, but UH Energy has its Center for Carbon Management in Energy, which has been focusing capturing and storing CO2 underground off of the existing facilities that we have up and running. They're run by Chuck McConnell but what we will do with ETI is extend that more onto the research side for some of the new things coming along in terms of capturing and utilizing CO2. I'm on a national academy study looking at where and how we want to be turning that CO2 into usable products, using energy and hydrogen, to make a number of those projects. That synergizes with hydrogen as part of the Institute.

Capturing and converting CO2 into usable products is certainly one of the exciting opportunities and then also to reuse those products we've already been making. There are also so many nice things you can do with hydrogen in terms of energy storage, and also helping to upgrade some of the carbon dioxide into usable products, but then also bio feedstock, you can take crop residues or trees and other energy type materials and use hydrogen to upgrade those into those types of plastic materials as well. That's another place where hydrogen is combined with managing a carbon resource to make a more sustainable plastic or polymer.

EC: With UH’s strong emphasis on research and entrepreneurship, is the Institute playing to these strengths within its programming and opportunities to further this trend and if so how?

JP: The money that's been funded by Shell into the launch of the Institute, and then that's been leveraged up to the $52 million point through various donors matching funds. With that, we will be hiring additional faculty to work in this space so that we can further expand the research that's being done. Each new faculty member becomes the opportunity for three things: more coursework in the area around energy, which impacts the student education; the hiring of graduate students who will be doing research; and then that also translates into undergraduate opportunities to be working in the labs and learning. We're also going to be building a new innovation hub in the center of campus here. It will be right across from the MD Anderson library where the old College of Technology building had been located.

On the first floor, there will be a makerspace where the students with ideas and people from the community will be able to come in and have access to 3D printers and other types of materials to put their widgets and prototypes together. On the second floor, then will be the Wolff Center for Entrepreneurship, which has the top undergraduate program in terms of entrepreneurship so they will hold mentorships, present there, in classroom-like settings, getting people involved with launching an idea and taking it forth into the commercial marketplace. The Energy Transition Institute will be on the third floor because so much of that innovation will be involved in the space of energy transition, which is really the main growth engine for expanding research at the university. Then we'll have on the top floor some laboratories, not only on chemistry and materials, but also on data science. And so we have a Data Science Institute, set up by HPE here at UH, looking at for example how artificial intelligence, machine learning and all those kinds of things help you innovate in the energy materials and processes.

Having a hub that combines all of that together really is an attraction to get all those players together on campus and will be really a key to making all this happen. It's a really exciting place to get involved and if you're a student, having all that in front of you, in terms of opportunity, we think it'd be a great attraction.

------

This conversation has been edited for brevity and clarity.

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Spring-based private equity firm acquires West Texas wind farm

power deal

Spring-based private equity firm Arroyo Investors has teamed up with ONCEnergy, a Portland, Oregon-based developer of clean energy projects, to buy a 60-megawatt wind farm southeast of Amarillo.

Skyline Renewables, which acquired the site, known as the Whirlwind Energy Center, in 2018, was the seller. The purchase price wasn’t disclosed.

Whirlwind Energy Center, located in Floyd County, West Texas, comprises 26 utility-scale wind turbines. The wind farm, built in 2007, supplies power to Austin Energy.

“The acquisition reflects our focus on value-driven investments with strong counterparties, a solid operating track record, and clear relevance to markets with growing capacity needs,” Brandon Wax, a partner at Arroyo, said in a press release. “Partnering with ONCEnergy allows us to leverage deep operational expertise while expanding our investment footprint in the market.”

Arroyo focuses on energy infrastructure investments in the Americas. Its portfolio includes Spring-based Seaside LNG, which produces liquefied natural gas and LNG transportation services.

Last year, Arroyo closed an investment fund with more than $1 billion in total equity commitments.

Since its launch in 2003, Arroyo has “remained committed to investing in high-quality assets, creating value and positioning assets for exit within our expected hold period,” founding partner Chuck Jordan said in 2022.

$524M Texas Hill Country solar project powered by Hyundai kicks off

powering up

Corporate partners—including Hyundai Engineering & Construction, which maintains a Houston office—kicked off a $524 million solar power project in the Texas Hill Country on Jan. 27.

The 350-megawatt, utility-scale Lucy Solar Project is scheduled to go online in mid-2027 and represents one of the largest South Korean-led investments in U.S. renewable energy.

The solar farm, located on nearly 2,900 acres of ranchland in Concho County, will generate 926 gigawatt-hours of solar power each year. That’s enough solar power to supply electricity to roughly 65,000 homes in Texas.

Power to be produced by the hundreds of thousands of the project’s solar panels has already been sold through long-term deals to buyers such as Starbucks, Workday and Plano-based Toyota Motor North America.

The project is Hyundai Engineering & Construction’s largest solar power initiative outside Asia.

“The project is significant because it’s the first time Hyundai E&C has moved beyond its traditional focus on overseas government contracts to solidify its position in the global project financing market,” the company, which is supplying solar modules for the project, says on its website.

Aside from Hyundai Engineering & Construction, a subsidiary of automaker Hyundai, Korean and U.S. partners in the solar project include Korea Midland Power, the Korea Overseas Infrastructure & Urban Development Corp., solar panel manufacturer Topsun, investment firm EIP Asset Management, Primoris Renewable Energy and High Road Energy Marketing.

Primoris Renewable Energy is an Aurora, Colorado-based subsidiary of Dallas-based Primoris Services Corp. Another subsidiary, Primoris Energy Services, is based in Houston.

High Road is based in the Austin suburb of West Lake Hills.

“The Lucy Solar Project shows how international collaboration can deliver local economic development and clean power for Texas communities and businesses,” says a press release from the project’s partners.

Elon Musk vows to put data centers in space and run them on solar power

Outer Space

Elon Musk vowed this week to upend another industry just as he did with cars and rockets — and once again he's taking on long odds.

The world's richest man said he wants to put as many as a million satellites into orbit to form vast, solar-powered data centers in space — a move to allow expanded use of artificial intelligence and chatbots without triggering blackouts and sending utility bills soaring.

To finance that effort, Musk combined SpaceX with his AI business on Monday, February 2, and plans a big initial public offering of the combined company.

“Space-based AI is obviously the only way to scale,” Musk wrote on SpaceX’s website, adding about his solar ambitions, “It’s always sunny in space!”

But scientists and industry experts say even Musk — who outsmarted Detroit to turn Tesla into the world’s most valuable automaker — faces formidable technical, financial and environmental obstacles.

Feeling the heat

Capturing the sun’s energy from space to run chatbots and other AI tools would ease pressure on power grids and cut demand for sprawling computing warehouses that are consuming farms and forests and vast amounts of water to cool.

But space presents its own set of problems.

Data centers generate enormous heat. Space seems to offer a solution because it is cold. But it is also a vacuum, trapping heat inside objects in the same way that a Thermos keeps coffee hot using double walls with no air between them.

“An uncooled computer chip in space would overheat and melt much faster than one on Earth,” said Josep Jornet, a computer and electrical engineering professor at Northeastern University.

One fix is to build giant radiator panels that glow in infrared light to push the heat “out into the dark void,” says Jornet, noting that the technology has worked on a small scale, including on the International Space Station. But for Musk's data centers, he says, it would require an array of “massive, fragile structures that have never been built before.”

Floating debris

Then there is space junk.

A single malfunctioning satellite breaking down or losing orbit could trigger a cascade of collisions, potentially disrupting emergency communications, weather forecasting and other services.

Musk noted in a recent regulatory filing that he has had only one “low-velocity debris generating event" in seven years running Starlink, his satellite communications network. Starlink has operated about 10,000 satellites — but that's a fraction of the million or so he now plans to put in space.

“We could reach a tipping point where the chance of collision is going to be too great," said University at Buffalo's John Crassidis, a former NASA engineer. “And these objects are going fast -- 17,500 miles per hour. There could be very violent collisions."

No repair crews

Even without collisions, satellites fail, chips degrade, parts break.

Special GPU graphics chips used by AI companies, for instance, can become damaged and need to be replaced.

“On Earth, what you would do is send someone down to the data center," said Baiju Bhatt, CEO of Aetherflux, a space-based solar energy company. "You replace the server, you replace the GPU, you’d do some surgery on that thing and you’d slide it back in.”

But no such repair crew exists in orbit, and those GPUs in space could get damaged due to their exposure to high-energy particles from the sun.

Bhatt says one workaround is to overprovision the satellite with extra chips to replace the ones that fail. But that’s an expensive proposition given they are likely to cost tens of thousands of dollars each, and current Starlink satellites only have a lifespan of about five years.

Competition — and leverage

Musk is not alone trying to solve these problems.

A company in Redmond, Washington, called Starcloud, launched a satellite in November carrying a single Nvidia-made AI computer chip to test out how it would fare in space. Google is exploring orbital data centers in a venture it calls Project Suncatcher. And Jeff Bezos’ Blue Origin announced plans in January for a constellation of more than 5,000 satellites to start launching late next year, though its focus has been more on communications than AI.

Still, Musk has an edge: He's got rockets.

Starcloud had to use one of his Falcon rockets to put its chip in space last year. Aetherflux plans to send a set of chips it calls a Galactic Brain to space on a SpaceX rocket later this year. And Google may also need to turn to Musk to get its first two planned prototype satellites off the ground by early next year.

Pierre Lionnet, a research director at the trade association Eurospace, says Musk routinely charges rivals far more than he charges himself —- as much as $20,000 per kilo of payload versus $2,000 internally.

He said Musk’s announcements this week signal that he plans to use that advantage to win this new space race.

“When he says we are going to put these data centers in space, it’s a way of telling the others we will keep these low launch costs for myself,” said Lionnet. “It’s a kind of powerplay.”