Houston expert on why companies are investing in sustainable energy technology

guest column

Here's why more and more companies — across industries — are making the switch to sustainable technology. Photo via Getty Images

In a modern business landscape characterized by increasing uncertainty and volatility, energy resilience has emerged as a cornerstone of strategic decision-making.

Let's delve deeper into why executives should view energy resilience as one of the best risk management investments they can make.

Mitigating risks and enhancing stability

Investing in energy resilience isn't solely about averting risks; it's about mitigating the potential losses that could arise from energy-related disruptions. It is estimated that half of today’s businesses lack an effective resilience strategy, even though nearly 97 percent of companies have been impacted by a critical risk event.

Whether it's power outages from extreme weather events, grid emergencies from a changing resource mix that is more weather dependent or cyber-attacks, disruptions can inflict substantial financial and reputational damage on businesses. By implementing resilient energy infrastructure and practices, organizations can minimize the impact of such disruptions, ensuring consistent operations even in the face of adversity. As an added benefit, these investments can also contribute to enhancing the stability of our grid infrastructure, benefiting not just individual businesses but the local community and the entire economy.

Improving costs and operational efficiency

Energy resilience also isn't just a defensive strategy; it's also about optimizing costs and operational efficiency to create competitive advantage. By investing in resilient energy infrastructure, such as backup power systems and microgrids, businesses can reduce the downtime associated with energy disruptions, thus avoiding revenue losses and operational inefficiencies.

Additionally, resilient energy solutions often lead to long-term cost savings through increased energy efficiency and reduced reliance on costly backup systems. As circumstances become increasingly uncertain, businesses that prioritize energy resilience can gain a competitive edge by operating more efficiently and cost-effectively than their counterparts.

Ensuring consistent operations amidst uncertainty

In today's rapidly changing business environment, characterized by geopolitical tensions, climate change, and technological advancements, uncertainty has become the new normal. Amidst this uncertainty, ensuring consistent operations is paramount for business continuity and long-term success. Investing in energy resilience provides businesses with the assurance that they can maintain operations even in the face of unforeseen challenges.

Whether it's a sudden power outage from a storm or the grid is stressed and unable to deliver reliable power, resilient energy infrastructure enables organizations to adapt swiftly and continue delivering products and services to customers without interruption.

Enhancing sustainability efforts

In recent years, a growing emphasis on sustainability and environmental stewardship has led to organizations recognizing the importance of reducing their carbon footprint and transitioning towards cleaner, renewable energy sources. Investing in energy resilience provides an opportunity to align sustainability efforts with business objectives.

By integrating renewable energy technologies and energy-efficient practices into their resilience strategies, organizations can not only enhance their environmental performance but also achieve long-term cost savings, ensure regulatory compliance, and build stakeholder trust.

The value of energy resilience for businesses

It is not enough to successfully handle day-to-day operations anymore; organizations need to be prepared for unpredictable events with a reliable energy supply and backup plan. Recently, a hospital in Texas had to evacuate patients and experienced heavy financial losses due to the failure of their traditional diesel generators during an extended outage.

After reevaluating their resiliency strategy, they decided to implement full-facility backup power using Enchanted Rock’s dual-purpose managed microgrid solution, which kept their power on during the next outage and ensured both patient safety and full operational capabilities. Investing in an energy resilience strategy like a microgrid will mitigate these risks and ensure always-on power in times of uncertainty.

A responsible decision for the greater good

Beyond the immediate benefits to individual businesses, investing in energy resilience is also a responsible decision for the greater good. As businesses become increasingly reliant on the grid infrastructure, ensuring its resilience is essential for the stability and reliability of the entire energy ecosystem. By proactively investing in resilient energy solutions, for themselves, businesses also contribute to strengthening the grid infrastructure, reducing the risk of widespread outages, and promoting the overall resilience of the energy system.

Executives must recognize the strategic imperative of investing in resilient energy infrastructure like microgrid systems, which can provide a competitive advantage against organizations that do not have similar measures in place. In doing so, they can navigate uncertainty with confidence, set their business up for future success, and emerge stronger and more resilient than ever before.

———

Ken Cowan is the senior vice president of Enchanted Rock, a Houston-based provider of microgrid technology.

Ad Placement 300x100

Ad Placement 300x600

CultureMap Emails are Awesome

Property Showcase

Houston university launches global hub to drive innovation in sustainable energy, advanced technologies

incoming, India

Rice University is launching Rice Global India, which is a strategic initiative to expand India’s rapidly growing education and technology sectors.

The new hub will be in the country’s third-largest city and the center of the country’s high-tech industry, Bengaluru, India, and will include collaborations with top-tier research and academic institutions. Rice continues its collaborations with institutions like the Indian Institute of Technology (IIT) Kanpur and the Indian Institute of Science (IISc) Bengaluru. The partnerships are expected to advance research initiatives, student and faculty exchanges and collaborations in artificial intelligence, biotechnology and sustainable energy.

“India is a country of tremendous opportunity, one where we see the potential to make a meaningful impact through collaboration in research, innovation and education,” Rice President Reginald DesRoches says in a news release. “Our presence in India is a critical step in expanding our global reach, and we are excited to engage more with India’s academic leaders and industries to address some of the most pressing challenges of our time.”

India was a prime spot for the location due to the energy, climate change, artificial intelligence and biotechnology studies that align with Rice’s research that is outlined in its strategic plan Momentous: Personalized Scale for Global Impact.

“India’s position as one of the world’s fastest-growing education and technology markets makes it a crucial partner for Rice’s global vision,” vice president for global at Rice Caroline Levander adds. “The U.S.-India relationship, underscored by initiatives like the U.S.-India Initiative on Critical and Emerging Technology, provides fertile ground for educational, technological and research exchanges.”

On November 18, the university hosted a ribbon-cutting ceremony in Bengaluru, India to help launch the project.

“This expansion reflects our commitment to fostering a more interconnected world where education and research transcend borders,” DesRoches says.

———

This article originally ran on InnovationMap.

ExxonMobil names new partner to bolster US lithium supply chain with offtake agreement

ev supplies en route

Spring-headquartered ExxonMobil Corp. has announced a new MOU for an offtake agreement for up to 100,000 metric tons of lithium carbonate.

The agreement is with LG Chem, which is building its cathode plant in Tennessee and expects it to be the largest of its kind in the country. The project broke ground a year ago and expects an annual production capacity of 60,000 tons. The lithium will be supplied by ExxonMobil.

“America needs secure domestic supply of critical minerals like lithium,” Dan Ammann, president of ExxonMobil Low Carbon Solutions, says in a news release. “ExxonMobil is proud to lead the way in establishing domestic lithium production, creating jobs, driving economic growth, and enhancing energy security here in the United States.”

The industry currently has a lithium supply shortage due to the material's use in electric vehicle batteries and the fact that most of production happens overseas.

“Building a lithium supply chain with ExxonMobil, one of the world’s largest energy companies, holds great significance,” Shin Hak-cheol, CEO of LG Chem, adds. “We will continue to strengthen LG Chem’s competitiveness in the global supply chain for critical minerals.”

Per the release, the final investment decision is still pending.

Earlier this year, Exxon entered into another energy transition partnership, teaming up with Japan’s Mitsubishi to potentially produce low-carbon ammonia and nearly carbon-free hydrogen at ExxonMobil’s facility in Baytown.

Last month, the company announced it had signed the biggest offshore carbon dioxide storage lease in the U.S. ExxonMobil says the more than 271,000-acre site, being leased from the Texas General Land Office, complements the onshore CO2 storage portfolio that it’s assembling.

3 Houstonians named to prestigious list of climate leaders

who's who

Three Houston executives — Andrew Chang, Tim Latimer, and Cindy Taff — have been named to Time magazine’s prestigious list of the 100 Most Influential Climate Leaders in Business for 2024.

As managing director of United Airlines Ventures, Chang is striving to reduce the airline’s emissions by promoting the use of sustainable aviation fuel (SAF). Jets contribute to about two percent of global emissions, according to the International Energy Agency.

In 2023, Chang guided the launch of the Sustainable Flight Fund, which invests in climate-enhancing innovations for the airline sector. The fund aims to boost production of SAF and make it an affordable alternative fuel, Time says.

Chang tells Time that he’d like to see passage of climate legislation that would elevate the renewable energy sector.

“One of the most crucial legislative actions we could see in the next year is a focus on faster permitting processes for renewable energy projects,” Chang says. “This, coupled with speeding up the interconnection queue for renewable assets, would significantly reduce the time it takes for clean energy to come online.”

At Fervo Energy, Latimer, who’s co-founder and CEO, is leading efforts to make geothermal power “a viable alternative to fossil fuels,” says Time.

Fervo recently received government approval for a geothermal power project in Utah that the company indicates could power two million homes. In addition, Fervo has teamed up with Google to power the tech giant’s energy-gobbling data centers.

In an interview with Time, Latimer echoes Chang in expressing a need for reforms in the clean energy industry.

“Addressing climate change is going to require us to build an unprecedented amount of infrastructure so we can replace the current fossil fuel-dominated systems with cleaner solutions,” says Latimer. “Right now, many of the solutions we need are stalled out by a convoluted permitting and regulatory system that doesn’t prioritize clean infrastructure.”

Taff, CEO of geothermal energy provider Sage Geosystems, oversees her company’s work to connect what could be the world’s first geopressured geothermal storage to the electric grid, according to Time. In August, Sage announced a deal with Facebook owner Meta to produce 150 megawatts of geothermal energy for the tech company’s data centers.

Asked which climate solution, other than geothermal, deserves more attention or funding, Taff cites pumped storage hydropower.

“While lithium-ion batteries get a lot of the spotlight, pumped storage hydropower offers long-duration energy storage that can provide stability to the grid for days, not just hours,” Taff tells Time. “By storing excess energy during times of low demand and releasing it when renewables like solar and wind are not producing, it can play a critical role in balancing the intermittent nature of renewables. Investing in pumped storage hydropower infrastructure could be a game-changer in achieving a reliable, clean energy future.”

View All Listings

ENERGYCAPITALHTX EMAILS ARE AWESOME