Houston is at the heart of an 'all of the above' energy transition strategy

the view from heti

Jane Stricker, executive director of HETI, on two years of the organization and the dual challenge the industry faces. Photo via GHP

As the Houston region continues to have important conversations about energy and climate in the energy capital of the world, it’s helpful to frame the discussion in terms of the dual challenge.

On one hand, our world needs energy companies across all sectors to continue to develop and deliver energy for all parts of the world – energy that is affordable and reliable and can enable the level of population and GDP growth anticipated over the next 30 years. At the same time, we need to find a way to significantly reduce the greenhouse gas emissions associated with the production and distribution of that energy to reduce the risks and impacts associated with climate change on our world.

As the global energy landscape continues to evolve – across the entire value chain, just in the two years since HETI was launched, there is an even greater urgency to leverage all available solutions to address the dual challenge.

We must be able to recognize that there is no silver bullet, no single technology and no single source of energy today that can get the world to net zero by 2050. However, that doesn’t mean we should give up. As the energy transition capital of the world, Houston continues to demonstrate that can lead in developing and deploying “all of the above” energy solutions needed to reach our ambitious goals.

With over 200 new cleantech and climatetech startups alongside some of the largest energy leaders who know how to scale technology, Houston is uniquely positioned to lead the way in technology development and commercial deployment to meet the dual challenge. Whether it’s implementing a carbon capture and storage project along Houston’s ship channel, piloting small modular nuclear reactor technology to enable zero carbon energy for chemical production in Seadrift, or converting an abandoned landfill in the middle of Houston’s Sunnyside community into the largest urban solar farm in the U.S. to create both zero carbon power and economic opportunity for the community, Houston is charging forward on all fronts to meet the dual challenge.

We cannot afford to sacrifice progress in search of a perfect solution, and Houston embraces this perspective in the way our region is coming together across the entire energy ecosystem to build on our leadership and lead the world to an energy-abundant, low-carbon future.

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This article originally ran on the Greater Houston Partnership's Houston Energy Transition Initiative blog. HETI exists to support Houston's future as an energy leader. For more information about the Houston Energy Transition Initiative, EnergyCapitalHTX's presenting sponsor, visit htxenergytransition.org.

Next month, 96 startups will pitch at an annual event focused on the future of energy. Here's who will be there. Photo via rice.edu

Exclusive: Rice Alliance announces participants ahead of 20th annual energy symposium

where to be

Dozens of companies will be a part of an upcoming energy-focused conference at Rice University — from climate tech startups to must-see keynote speakers.

The 20th Annual Rice Alliance Energy Tech Venture Forum will take place on September 21 at Rice University’s Jones Graduate School of Business. Anyone who's interested in learning more about the major players in the low-carbon future in Houston and beyond should join the industry leaders, investors, and promising energy and cleantech startups in attendance.

This year's keynote speakers include Christina Karapataki, partner at Breakthrough Energy Ventures, the venture capital fund backed by Bill Gates; Scott Nyquist, vice chairman at Houston Energy Transition Initiative, founded by the Greater Houston Partnership; and Jeff Tillery, COO at Veriten.

Nearly 100 startups will also be pitching throughout the day, and at the end of the program, the most-promising companies — according to investors — will be revealed. See below for the 2023 selection of companies.

Presenting companies:

Element Resources
Eugenie AI
Flash H2 Synthesis from Waste Plastic at Zero Net Cost
Fluid Efficiency
Galatea Technologies
Heimdal
Impact Technology SystemsAS
INGU
Lithos
Luminescent
Mantel
Mars Materials
Microgrid Labs
Mirico
Mobilus Labs
Muon Vision
Nano Nuclear
NobleAI
Numat
Ourobio
Planckton Data Technologies
Polystyvert
Princeton NuEnergy
Protein Evolution
Qult Technologies
Sage Geosystems
Salient Predictions
Sawback Technologies
SHORELINE AI
Solidec
Spectral Sensor Solutions
Teren
Terradote
TexPower
Thiozen
Technology from the Lab of Dr. James Tour
Volexion
Xecta

CEA Demo Day:

Ayrton Energy
Carbix
CryoDesalination
Digital Carbon Bank
EarthEn
H Quest Vanguard
Highwood Emissions Management
Icarus RT
Khepra
Natrion
Oceanways
Relyion Energy
Triton Anchor
TROES

Office hours only:

1s1 Energy
AKOS Energy
Aperta Systems
Atargis Energy
Ayas
C-Power
C-Quester
Carbon Loop
Deep Anchor Solutions
DG Matrix
Drishya AI Labs
Earthbound.ai
EarthBridge Energy
Enoverra
equipcast
ezNG Solutions
Feelit Technologies
FluxWorks
Forge
Horne Technologies
Imperium Technologies
LiCAP Technologies
Make My Day
Moblyze
MyPass Global
NovaSpark Energy
Octet Scientific
Perceptive Sensor Technologies
PetroBricks
Piersica
Poseidon Minerals
Predyct
RIvotto
Roboze
Talisea
ThermoLift Solutions
Trout Software
Tuebor Energy
Undesert Corporation
Viridos
Vroom Solar
Well Information Technologies
WellWorth
Zsense Systems

Introducing the Houston Energy Transition Initiative

The View from HETI

For over 100 years, Houston has long been considered the energy capital of the world. With newer, cleaner energy initiatives on the rise, Houston is poised to continue with the title.

The economic vitality and growth of our region’s economy is inextricably tied to the energy industry, and the industry is changing rapidly to meet growing global energy demand while simultaneously lowering emissions. The Greater Houston Partnership’s Houston Energy Transition Initiative (HETI) builds on the best of traditional energy skills and systems to leverage Houston’s industry leadership to accelerate global solutions for an energy-abundant, low-carbon future.

“HETI’s objective is to create a vision and a blueprint for growing the region’s economy, exporting low-carbon products and expertise, equitably creating new jobs, and helping the city of Houston achieve the goals of its Climate Action Plan,” said Jane Stricker, Senior Vice President Energy Transition and Executive Director of HETI. “There is no geography in the world better positioned than Houston to lead the transition to and integration of abundant, low-carbon energy solutions.”

HETI harnesses Houston's industry leadership as well as capitalizes on traditional energy expertise and infrastructure to facilitate worldwide solutions for an energy abundant, low-carbon future. Over the last two years, HETI’s developed a strategic plan and fully launched this strategy to help companies meet the dual challenge.

"Houston has both the opportunity and a responsibility to lead the transition. It is our opportunity to embrace, and our challenge to solve. And when we are successful, we will be creating opportunity for the generations of Houstonians to come," said Bobby Tudor, Chair, Houston Energy Transition Initiative

HETI has formed working groups dedicated to driving progress in key sectors where Houston holds a strategic edge. These active sector-specific working groups are: CCUS, Capital Formation, Power Management, Clean Hydrogen, and Industry Decarbonization. All these groups are working closely with HETI members to accelerate solutions to help take on the dual challenge of meeting the world's increasing energy needs, while also reducing CO2 emissions.

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The Greater Houston Partnership's Houston Energy Transition Initiative, or HETI, exists to support Houston's future as an energy leader. For more information about the Houston Energy Transition Initiative, EnergyCapitalHTX's presenting sponsor, visit htxenergytransition.org.

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Fervo Energy officially files for initial public offering

going public

Fervo Energy has officially filed for IPO.

The Houston-based geothermal unicorn filed a registration statement on Form S-1 with the U.S. Securities and Exchange Commission on April 17 to list its Class A common stock on the Nasdaq exchange. Fervo intends to be listed under the ticker symbol "FRVO."

The number and price of the shares have not yet been determined, according to a news release from Fervo. J.P. Morgan, BofA Securities, RBC Capital Markets and Barclays are leading the offering.

The highly anticipated filing comes as Fervo readies its flagship Cape Station geothermal project to deliver its first power later this year

"Today, miles-long lines for gasoline have been replaced by lines for electricity. Tech companies compete for megawatts to claim AI market share. Manufacturers jockey for power to strengthen American industry. Utilities demand clean, firm electricity to stabilize the grid," Fervo CEO Tim Latimer shared in the filing. "Fervo is prepared to serve all of these customers. Not with complex, idiosyncratic projects but with a simplified, standardized product capable of delivering around-the-clock, carbon-free power using proven oil and gas technology."

Fervo has been preparing to file for IPO for months. Axios Pro first reported that the company "quietly" filed for an IPO in January and estimated it would be valued between $2 billion and $3 billion.

Fervo also closed $421 million in non-recourse debt financing for the first phase of Cape Station last month and raised a $462 million Series E in December. The company also announced the addition of four heavyweights to its board of directors last week, including Meg Whitman, former CEO of eBay, Hewlett-Packard, and Spring-based HPE.

Fervo reported a net loss of $70.5 million for the 2025 fiscal year in the S-1 filing and a loss of $41.1 million in 2024.

Tracxn.com estimates that Fervo has raised $1.12 billion over 12 funding rounds. The company was founded in 2017 by Latimer and CTO Jack Norbeck.

Houston lawmaker may kill data center tax breaks due to $8B revenue loss

looking at the data

An influential Houston-area state senator is raising concerns about potentially billions of dollars in lost state revenue from tax breaks for Texas data centers—and is pondering legislation that would abolish the tax incentives.

Citing data from the state comptroller’s office, The Texas Tribune reports the state stands to lose nearly $8 billion in revenue from 2026 to 2030 due to sales tax and use tax exemptions for data centers. During the state’s 2025 fiscal year, which ended on Aug. 31, these tax exemptions caused Texas to lose a little over $1 billion, up from an earlier estimate of $130 million.

“These new numbers are extremely concerning, and I will say they’re unsustainable,” Republican state Sen. Joan Huffman, chairwoman of the state Senate Finance Committee, tells The Texas Tribune. “I plan to look at filing legislation to either repeal the exemption or take a very close look at it and see.”

Texas on track to be No. 1 data center market in U.S.

Scrutiny of the tax breaks comes amid an explosion of data center development in Texas, where data provider Aterio identifies nearly 1,000 centers that are operating, under construction or planned.

A report issued in January by Bloom Energy says the state is poised to become the No. 1 U.S. market for data centers within three years. By 2028, according to the report, Texas is projected to exceed 40 gigawatts of data center capacity—representing nearly 30 percent of total U.S. demand.

Among companies benefiting from the data center boom are:

Tech titans like Apple, Google, Meta Platforms, and Microsoft, which are spending billions of dollars to build data centers in Texas.
Spring-based ExxonMobil and Houston-based Chevron, two oil and energy giants that are developing natural gas plants to supply power for data centers.
Houston-based energy technology company Baker Hughes, which is collaborating with Google Cloud to develop AI-enabled power optimization and sustainability software for data centers.
DataBank, Data Foundry, Equinix, Digital Realty, Lumen Technologies, and IBM, all of which operate data centers in the Houston area.

The Texas Legislature will begin debating tax breaks for data centers in July, when Huffman’s Senate Finance Committee meets for an interim hearing before the 2027 legislative session, according to the Tribune.

Data center industry defends tax breaks

Leaders in the data center industry warn that watering down or halting the tax breaks could slow down or even end Texas’ ascent in the data center sector.

A 2025 report commissioned by the Data Center Coalition found that in 2024, data centers provided more than $1.6 billion in state tax revenue and almost $1.6 billion in local tax revenue in Texas. Over the next several years, according to the report, planned development of data centers in the Lone Star State could generate almost $3.8 billion in state tax revenue and more than $4.9 billion in local tax revenue.

In 2024, the Houston area had 8.1 million gross square feet of data centers, with the properties’ real estate investments sitting at $10 billion, according to the report. That year, data centers in the region produced a little over $700 million in state and local tax revenue. About 60 data centers operate in the Houston area.

Watchdog group warns of tax breaks’ danger to state budgets

On the other side of the debate over tax breaks for data centers, a report released last year by Good Jobs First, a nonprofit, nonpartisan watchdog group that tracks economic development incentives, decries the tax breaks as dangerous to state budgets.

“We know of no other form of state spending that is so out of control. Therefore, we recommend that states cancel their data center tax exemptions,” says Good Jobs research analyst Kasia Tarczynska, co-author of the report. “Shy of that, states should amend … legislation to cap how much any facility and company can avoid paying in taxes each year.”

Helix Earth closes $12M round and more Houston energy headlines

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Editor's note: The top energy transition headlines for the month include Helix Earth's Seed 2 funding and Chevron's plans for a West Texas power plant. Below are the five most-read EnergyCapital stories published April 1-15, 2026:

1. Houston cleantech company closes $12M seed round

Helix Earth is developing a retrofit technology that has the potential to cut HVAC energy use by up to 50 percent. Photo via Getty Images

Houston-based Helix Earth Technologies has closed a $12 million Seed 2 funding round to scale manufacturing of its energy-efficient commercial HVAC add-on technology. Veriten, a Houston-based energy investment firm, led the round. Rua Ventures, Carnrite Ventures, Skywriter LLC and Textbook Ventures also participated. Continue reading.

2. Chevron eyes $7B Texas power plant for Microsoft data center campus

Chevron is in talks with Microsoft and Engine No. 1 about a massive natural gas power plant in Texas. Photo via Getty Images

Software giant Microsoft is negotiating exclusively with Houston-based oil and gas titan Chevron and investment firm Engine No. 1 about the development of a $7 billion power plant in West Texas that would supply electricity for a Microsoft data center campus. Continue reading.

3. 3 strategies to strengthen the Gulf Coast as a global energy hub

The Gulf Coast is one of the most critical energy hubs in the world. Photo via Getty Images.

The Texas-Louisiana Gulf Coast is the backbone of America’s energy and chemical economy. Texas produces roughly 43% of U.S. crude oil and 28% of natural gas, while Texas and Louisiana together account for about half of the nation’s refining capacity, processing 9.3 million barrels of crude per day across 50 refineries. The region also produces approximately 80% of the nation’s primary petrochemicals and ships more than $117 billion in chemical products annually from Texas alone. Continue reading.

4. 8 CERAWeek 2026 takeaways from a new Houston energy leader

Kelsey Kearns (right), the new director of Greentown Houston, shared her takeaways from her first-ever CERAWeek with Energy Capital HTX. Photo courtesy Greentown

My first CERAWeek was a blur. Having top energy executives, policymakers, and technologists all gathered in Houston—over 11,000 of them this year—was both overwhelming and energizing. The theme was “Convergence and Competition: Energy, Technology, and Geopolitics,” and walking through the George R. Brown Convention Center, it was immediately clear that this was no ordinary industry conference. As a first-timer with a Greentown Labs lens, here’s what really stuck with me. Continue reading.

5. Greentown Labs names new COO, appoints new Head of Houston

Lawson Gow and Kelsey Kearns have stepped into new leadership roles at Greentown Labs. Photos courtesy Greentown/LinkedIn

Greentown Labs has reshuffled its leadership, elevating Houston leaders into new roles. Lawson Gow was named COO of the Houston- and Boston-based climatech incubator in February 2026. In his new role, he will focus on optimizing Greentown's structure, building new internal and external systems and developing a plan for growth. Continue reading.

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