ADVERTISEABOUT USSUBMIT A STORYSUBSCRIBETERMS OF USEPRIVACY POLICY
Visit our family of Brands

Houston university's compost program reaches major milestone

seeing green

Rice University, which works with Houston-based Moonshot Compost, reported a milestone achievement this month. Photo via Getty Images

Rice University and its campus community have officially diverted over 1 million pounds of food waste from landfills.

The university, which works with Houston-based Moonshot Compost, reported the milestone achievement this month. The program was originally launched in November 2020.

“The genesis of the current composting program was a partnership between Housing and Dining, the Office of Sustainability and an undergraduate student named Ashley Fitzpatrick,” says Richard Johnson, senior executive director for sustainability at Rice, in a news release.

“We spent quite a bit of time developing options for food waste composting at Rice with those efforts really ramping up in 2019. After a pilot project, further reflection and an interruption due to the pandemic, we found Moonshot Compost, and they proved to be the partner we needed.”

Fitzpatrick, the student who started it all went on to graduate and now works for Moonshot Compost. She did leave a legacy of student involvement in the program, and Isabelle Chang now serves as an undergraduate student intern in the Office of Sustainability. The role includes liaising with students and other major players on campus who have feedback for the program.

Rice previously had a composting program, but it never reached the same level of scale, per the news release.

“Many years ago — from the late 1990s to about 2007 — we had an on-campus composting device called the Earth Tub that provided food waste composting at one campus kitchen,” Johnson said. “However, the device failed, and frankly, the process of operating the device, getting the food waste into the device and maintaining it all proved onerous. Interest in composting remained after we decommissioned the Earth Tub, and for years we looked for alternatives [before finding Moonshot Compost].”

Launched in July 2020 by Chris Wood and Joe Villa, Moonshot operates with a team of drivers utilizing its data platform to quantify the environmental benefits of composting. The duo went on to team up with energy industry veteran Rene Ramirez to harness their compost into clean hydrogen power.

Last fall, Moonshot Hydrogen signed a memorandum of understanding with the Purdue Innovates Office of Technology Commercialization. The agreement includes facilitating the first operating commercial pilot that biologically turns food waste into hydrogen.

ESG has certainly come a long way, but has it come too far, actually? Photo via Getty Images

Houston energy tech entrepreneur on if 'ESG' is a dirty word

guest column

Whose responsibility is it to care for the social good? That’s an important, yet hopelessly complex question, particularly when aimed at sustainability.

When it comes to businesses and other profit-seeking firms, they tend to search for a balance between success today and success overtime. Too much focus in either direction can be deadly.

An apt analogy is a virus: too much reproduction too fast and the host dies, which is why the most successful viruses find the threshold for maximizing reproduction without overly weakening the host.

Payment is about to be due, but from whom?

The ESG movement encapsulates targets from ethical investing related to environmental issues, social values and corporate governance. As it relates to climate, people are working hard to determine how much cumulative effect of human activity is too much for our survival. And there continues to be open questions about how businesses should react to the scientific consensus that climate conditions will continue getting worse, without immediate and severe corrective action. If the consensus is that this is a problem for businesses to fix, whose money do they spend to do it?

Greed was good, once

Nobel-winning economist Milton Friedman famously advocated for firms to focus primarily on returning value to shareholders. With respect to social good, he advocated that shareholders use their returns to pursue them; businesses should just chase profit. His 1970 article in the New York Times Magazine is worth a read, particularly his last paragraph, where he observes that corporate dollars spent advancing social responsibility represent the theft of money from investors, customers, or employees. The challenge is, how many negative externalities do we absorb before seeking to redirect corporate profits?

Making impact be part of the analysis

Others have argued that firms have a social responsibility and should pursue, using the term John Elkington coined in 1994, a triple bottom line approach, focusing on profit, people, and planet. Adherents to this approach believe you only get what you measure, and therefore,businesses should measure more than just profit. The challenge is, who is smart enough to balance these accounts?

ESG to the rescue?

The term ESG itself was the result of good intentioned actors in the investment space who wanted to track the efficacy of investing in businesses that scored well for social responsibility. They theorized, and had some support, that these companies outperformed the market. The result was the formation of the Principles for Responsible Investment in 2013, with its six core principles for “incorporating ESG issues into investment practice.”

ESG has certainly come a long way from Milton Friendmen, though it’s challenging to say how the movement is going. From one perspective, it looks like everyone is in trouble. Banks for investing in companies who are not moving fast enough. Energy companies and other producers of consumer products for greenwashing their efforts. Private equity firms for forcing ESG standards that some view as a step-too-far. Financial service companies for assisting in greenwashing. And, of course, the worst offenders are “the woke.” From the other perspective, we are finally starting to see some incentives for companies to address and solve long-ignored problems.

One size fits no one

The question of “Who is responsible for ESG?” reminds me of a presentation I attended in spring 2022, given by a senior executive of a large landfill operator. Before he began his discussion of the environmental impacts of operating a landfill, he noted that his billion dollar company did not really create any trash, it simply collected and received trash from all of us! He was begging the question, “Am I solely responsible for your bad decisions?”

And that’s really the issue with ESG, is it not? Who, for example, is responsible for creating pollution? The energy companies for producing oil and natural gas from underground reserves, or the members of the public who drive cars, buy plastic goods, and flip on the lights? The government for letting those things happen? The answer is sadly both none of us and all of us.

Regulators, mount up

Regulating and investing are often in conflict, but they share one common characteristic: few people have ever done either well. That doesn’t mean we quit trying. There are those among us who can find the signal in the noise, who can stare at a pile of numbers and find the rule that answers the question, or at least correlates well to the desired outcome.

People change expensive behaviors

Charlie Munger famously said, “Show me the incentive, and I’ll show you the outcome.” If I had a magic wand, I would want the power to create global markets for the right to release harmful pollutants / emissions or deposit certain types of waste in landfills. It has worked before, and it will likely be what leads us where we need to go. Until we create marketplaces limiting the release of pollutants and disposal of waste, society will continue to fall prey to complex regulatory solutions that are easy for incumbent industries to strike down. Instead, putting a price on these activities will allow the incumbents to innovate and new companies to compete.

When it comes to ESG, I think we fear two outcomes equally: a world that feels a little out of control and a class of people, or institutions of government, who appear all too confident they have the answers. Maybe we can turn the heat down in the ESG debate by prioritizing what we measure and report and creating marketplaces that incentivize people to solve the most pressing problems.

———

Chris Wood is the co-founder of Houston-based Moonshot Compost.

Houston energy transition folks — here's what to know to start your week. Photo via Getty Images

Houston energy transition events not to miss, expert commentary on climate crisis, and more things to know

take note

Editor's note: Start your week off strong with three quick things to catch up on in Houston's energy transition: a roundup of events not to miss, a new Houston energy executive to know, and more.

Events not to miss

Put these Houston-area energy-related events on your calendar.

    • Future of Energy Summit is Tuesday, February 6, at AC Hotel by Marriott Houston Downtown. Register.
    • The 2024 NAPE Summit is Wednesday, February 7, to Friday, February 9, at the George R. Brown Convention Center. It's the energy industry’s marketplace for the buying, selling and trading of prospects and producing properties. Register.
    • The De Lange Conference, taking place February 9 and 10 at Rice University's Baker Institute for Public Policy, is centered around the theme “Brave New Worlds: Who Decides? Research, Risk and Responsibility” this year. Register.
    • The Future of Energy Across the Americas: Helping Lawyers Predict and Adapt — the 2024 Houston Energy Conference — is February 27 to March 1. Register.
    • CERAWeek 2024 is Monday, March 18, to Friday, March 22, in the George R. Brown Convention Center. Register.

    ​Commentary: Chris Wood, co-founder of Moonshot Compost, on loving the climate apocalypse​

    Chris Wood knows that the last thing anyone wants to be reminded of in 2024 is the impending climate apocalypse, but, as he writes in his guest column, "There is a scientific consensus that the world climate is trending towards uninhabitable for many species, including humans, due in large part to results of human activity."

    He cites a report that 93 percent “believe that climate change poses a serious and imminent threat to the planet.”

    "Until recently reviewing this report, I was unaware that 93 percent of any of us could agree on anything," he writes. "It got me thinking, how much of our problem today is based on misunderstanding both the nature of the problem and the solution?" Read more.

    New hire: Bracewell names new partner to advise clients on energy transition tax incentives

    Bracewell announced that Jennifer Speck has joined the firm's tax department as a partner in the Houston office. Speck will advise clients on energy transition tax incentives.

    Some of her experiences include onshore and offshore wind, solar, carbon capture, clean hydrogen and clean fuel projects. She recently served as senior manager of tax and regulatory compliance at Navigator CO2 Ventures LLC. She graduated in 2010 with a B.F.A. in mental health psychology from Northeastern State University, and received her J.D., with honors, from The University of Tulsa College of Law in 2012. Read more.

    Houston climate tech founder weighs in on his observations on what's true, what's exaggerated, and what all humans can agree on about the climate crisis. Photo via Getty Imagees

    Houston expert: Why climate action needs better PR and how to love the climate apocalypse

    guest column

    The last thing anyone wants in 2024 is a reminder of the impending climate apocalypse, but here it is: There is a scientific consensus that the world climate is trending towards uninhabitable for many species, including humans, due in large part to results of human activity.

    Psychologists today observe a growing trend of patients with eco-anxiety or climate doom, reflecting some people’s inability to cope with their climate fears. The Edelman Trust Barometer, in its most recent survey respondents in 14 countries, reports that 93 percent “believe that climate change poses a serious and imminent threat to the planet.”

    Until recently reviewing this report, I was unaware that 93 percent of any of us could agree on anything. It got me thinking, how much of our problem today is based on misunderstanding both the nature of the problem and the solution?

    We’ve been worried for good reason before 

    It’s worth keeping in mind that climate change is not the first time smart people thought humans were doomed by our own successes or failures. Robert Malthus theorized at the end of the 18th century that projected human fertility would certainly outpace agricultural production. Just a century and a half later, about half of all Americans expected a nuclear war, and the number jumped to as high as 80 percent expecting the next war to be nuclear. Yes, global hunger and nuclear threats still exist, but our results have outperformed the worst of those dire projections.

    We are worried for good reason today 

    Today changing climate conditions have grabbed the headlines. The world’s climate is changing at a rate faster than we can model effectively, though our best modeling suggests significant, coordinated, global efforts are necessary to reverse current trends. While there’s still lots to learn, the consensus is that we are approaching a global temperature barrier across which we may not be able to quickly return. These conclusions are worrisome.

    How did we get here?

    Our reliance on hydrocarbons is at the heart of our climate challenge. If combusting them is so damaging, why do we keep doing it? We know enough about our human cognitive biases to say that humans tend to “live in the moment” when it comes to decision making. Nobel Prize-winning economic research suggests we choose behaviors that reward us today rather than those with longer term payoffs. Also, changing behaviors around hydrocarbons is hard. Crude oil, natural gas and coal have played a central role in the reduction of human suffering over time, helping to lift entire populations out of poverty, providing the power for our modern lives and even supplying instrumental materials for clothes and packaging. It’s hard to stop relying on a resource so plentiful, versatile and reliable.

    How do we get out of here?

    Technological advances in the future may help us address climate in new and unexpected ways. If we do nothing and hope for the best, what’s the alternative? We can take confidence that we’ve addressed difficult problems before. We can also take confidence that advancements like nuclear, solar, geothermal and wind power are already supplementing our primary reliance on hydrocarbons.

    The path forward will be extending the utility of these existing alternatives and identifying new technologies. We need to reduce emissions and to withdraw greenhouse gasses (GHGs) that have already been emitted. The nascent energy transition will continue to be funded by venture capitalists, government spending/incentives and private philanthropy. Larger funding sources will come from private equity and public markets, as successful technologies compete for more traditional sources of capital.

    Climate Tech will be a large piece of the climate puzzle

    My biases are likely clear: the same global capitalism that brought about our complicated modern world, with its apparent abundance and related climate consequences, has the best chance to save us. Early stage climate tech funding is increasing, even if it’s still too small. It has been observed that climate tech startups receiving funding today fail to track solutions for industries in proportion to their related production of GHGs. For instance, the agriculture and food sector creates about 18 percent of global GHGs, while climate tech companies seeking to address that sector receive about 9 percent of climate tech funding. These misalignments aside, the trendlines are in the right direction.

    What can you do?

    From a psychological perspective, healthy coping means making small decisions that address your fears, even if you can’t eliminate the root causes. Where does that leave you?

    Be a voice for reasonable change. Make changes in your behavior where and when you can. Also, take comfort when you see existing industries adopting meaningful sustainable practices at faster rates. Support the companies you believe are part of the solution.

    We are already seeing a burgeoning climate tech industry across the globe and here at home. With concerted efforts like the Ion and Greentown Labs, the Houston climate tech sector is helping to lead the charge. In what was even recently an unthinkable reality, the United States has taken a leadership role. Tellingly, we are not leading necessarily by setting targets, but instead by funding young startups and new infrastructure like the hydrogen hubs. We don’t know when or where the next Thomas Edison will emerge to shine a new light in a dark world. However, I do suspect that that woman or man is alive today, and it’s our job to keep building a world worth that person saving.

    ---

    Chris Wood is the co-founder of Houston-based Moonshot Compost.

    Moonshot Compost has announced its plans to create green hydrogen at scale. Photo via Getty Images

    Houston startup launches clean energy business to turn compost into hydrogen

    waste to power

    You may already know Moonshot Compost, a Houston company devoted to collecting food waste all over Texas. Now, meet Moonshot Hydrogen.

    Founders and brothers-in-law Chris Wood and Joe Villa have joined forces with energy industry veteran Rene Ramirez to harness their compost into clean hydrogen power.

    Earlier this month, the new branch of the existing company signed a memorandum of understanding with the Purdue Innovates Office of Technology Commercialization. The agreement comes close to a year after Ramirez first began working with Purdue University Northwest professors, Robert Kramer and Libbie Pelter, and Purdue University’s professor, John Patterson. The result is the first operating commercial pilot that biologically turns food waste into hydrogen.

    This revelation comes just days after the Biden-Harris administration announced that it had set aside $7 billion to H2Hubs, a collection of seven regional hydrogen power stations, including one in the Houston area.

    “We love the timing. There’s just a lot of interest right now,” Wood tells EnergyCapital in a video call with Villa and Ramirez. “It's been fun to watch Rene's long relationship with Purdue come to fruition on behalf of that hydrogen at the same time that the DoD is moving forward with their announcement on the hydrogen hubs.”

    Wood and Villa founded Moonshot Compost three years ago.

    “The thought was, 'waste is so valuable, and there's so much of it in the trash.' So we wanted to focus on, ‘Let's get our hands on as much food waste as possible,’ and always be focused on doing the best thing with our food waste,” Wood says.

    Initially, that meant making compost, which saved the waste from a landfill and produced high-quality, nutrient-rich soil. Customers include both private homes and commercial accounts. Those include heavy hitters like Rice University, Conoco Phillips and Texas Children’s Hospital, as well as beloved restaurants ranging from Bludorn to Tacodeli. And that’s just in Houston. The company now collects from businesses in Austin, Dallas and Waco, too.

    That extended footprint will be important to Moonshot Hydrogen.

    “Our big dream is ideally that we have one of these hydrogen facilities in almost every city that we can think of. Your city has that ability to charge up or refuel the cars with hydrogen at-location and not have to worry about going 300 miles away,” says Ramirez.

    Filling up your car with zero-emission hydrogen made from compost? It could be a reality sooner than you think. According to Wood, Moonshot is already in the preliminary stages of discussions with a facility to pilot just such a program.

    “We’ve been thrilled with how receptive people are. There does seem to be a general acknowledgment that this would fit well with Houston’s desire to be the energy transition capital of the world,” he says.

    Their patent-protected technology assures that Moonshot is the only company with this novel solution to food waste. Most exciting is the fact that the institutions with which Moonshot already partners could be on the ground floor of being at least partially powered by their own discarded scraps.

    “Everyone loves the circularity aspect of it,” says Ramirez. And with a potential launch as soon as next March, it’s one step closer to a reality for the Energy Transition Capital.

    By opting into composting, Moonshot customers are avoiding contributing to landfill methane emissions. Photo via Moonshot Compost/Facebook

    Houston sustainability startup increases Texas impact, diverts 3.5M lbs of landfill waste

    the power of composting

    Houston-based Moonshot Compost is marking its three-year anniversary this month, demonstrating a successful execution of a sustainable waste management model.

    Chris Wood and Joe Villa started the company in July 2020, collecting and measuring food waste in their personal vehicles. Today, Moonshot operates with a team of drivers utilizing its data platform to quantify the environmental benefits of composting.

    “People like to compost with us,” Wood said. “When we first started, I don't think we ever thought we would get to so much weight so quickly. We've diverted over 3.5 million pounds of food waste since we launched, and our rate of collection is about 250,000 pounds a month now.”

    Moonshot ensures every collection is weighed to calculate its precise impact. Its proprietary system uses QR codes, allowing users to understand both their individual and collective contribution to the composting effort.

    Despite starting in the midst of the COVID-19 pandemic, the service has solidly grown. Currently, Moonshot serves 65 commercial and over 600 residential subscribers across Houston, Austin, Dallas, and Waco.

    One of Moonshots significant achievements is its Diversion Dashboard, which presents the climate equivalencies of the diverted food waste, highlighting how composting contributes to the reduction of greenhouse gases.

    "By composting, you're avoiding landfill methane emissions, which constitute 10 percent of global greenhouse emissions," Wood said.

    Moonshot offers subscription programs for both residential and commercial clients. The residential subscription includes a drop-off option for $10 per month or an at-home pick-up service for $29 per month. Each pick-up includes a clean bin exchange. For commercial clients, the base fee is $110 per month, with weekly pick-ups and bin exchanges.

    The company's next significant milestone, Wood said, is to divert 5 million pounds of food waste in Houston. As of now, Moonshot expects to reach its 5 million pound goal by mid-2024.

    “We think that Houston is sending 5 million pounds of food waste to the landfill every day,” Wood said. “Once we've diverted 5 million pounds in Houston, that'll be the first time that we've diverted a day's worth of food waste in Houston.”

    As part of Moonshots most recent compost result update, Moonshot subscribers based in Houston have diverted 3,444,704 pounds of waste from landfills and saved 2,328,366 pounds of carbon dioxide. Visit here for more information on its impact across Austin, Dallas and Houston.

    Wood emphasized the importance of changing perceptions on composting: "It’s not disgusting. You already generate food waste at home and work. Composting makes your trash cleaner."

    With this mission, Moonshot Compost continues to transform perceptions and practices around waste management and sustainability.

    Chris Wood and Joe Villa started the company in July 2020. Photo via Moonshot Compost/Facebook

    Ad Placement 300x100
    Ad Placement 300x600

    CultureMap Emails are Awesome

    Property Showcase

    Movers and shakers: Top executive moves in Houston energy transition of 2024

    year in review

    Editor's note: As the year comes to a close, EnergyCapital is looking back at the year's top stories in Houston energy transition. From new board seats to internal promotions, this year marked a big one for some of Houston's energy leaders. Here were the top five most-read articles covering the mover and shaker news of 2024 — be sure to click through to read the full story.

    Growing Houston biotech company expands leadership as it commercializes sustainable products

    Nádia Skorupa Parachin joined Cemvita as vice president of industrial biotechnology. Photo courtesy of Cemvita

    Houston-based biotech company Cemvita recently tapped two executives to help commercialize its sustainable fuel made from carbon waste.

    Nádia Skorupa Parachin came aboard as vice president of industrial biotechnology, and Phil Garcia was promoted to vice president of commercialization.

    Parachin most recently oversaw several projects at Boston-based biotech company Ginkjo Bioworks. She previously co-founded Brazilian biotech startup Integra Bioprocessos. Continue reading.

    California geothermal co. grows C-suite, grows presence in Houston

    XGS has leased 10,000 square feet of office space in Houston. Photo via Getty Images

    A geothermal company with its headquarters in Palo Alto, California, has named new members of its C-suite and, at the same time, has expanded its operational footprint in Houston.

    XGS Energy promoted Axel-Pierre Bois to CTO and Lucy Darago to chief commercial officer. Darago is based in Austin, and Bois, from France, lists his role as based in Houston on LinkedIn. Both have worked at XGS since February of last year.

    “Axel and Lucy’s proven operational excellence and technical knowledge has helped propel XGS forward as we enter our next phase of growth,” Josh Prueher, CEO of XGS Energy, says in a news release. “I’m thrilled to have them both join XGS’ C-suite and have their support as we continue to grow our team, further advance our next-generation geothermal technology, and invest in our multi-gigawatt project pipeline.” Continue reading.

    CenterPoint names 40-year industry veteran as exec for emergency response

    Don Daigler will be tasked to lead CenterPoint Energy's yearly work in preparation for, response to and recovery from all emergencies, which includes both natural disasters and man-made events. Photo via CenterPoint Energy/LinkedIn

    CenterPoint Energy announced the hiring of industry veteran Don Daigler as the new senior vice president of CenterPoint’s Emergency Preparedness and Response.

    Daigler will be tasked to lead the company’s yearly work in preparation for, response to and recovery from all emergencies, which includes both natural disasters and man-made events. Daigler and his team will coordinate with all public safety partners.

    “I’m pleased to join CenterPoint Energy and lead its Emergency Preparedness and Response team to transform how we prepare, mitigate and respond to the impacts of hurricanes, extreme weather and other emergencies,” Daigler says in a news release. ”The year-round work of our team will help position CenterPoint to deliver the service our customers expect and deserve before, during and after emergencies when the need is greatest.” Continue reading.

    Houston private equity professional tapped to lead growth development at firm focused on decarbonization

    Climate Investment announced Patrick Yip will lead the firm's growth investment strategy as managing director, head of growth. Photo via LinkedIn

    A London-based energy transition investment firm has named a new Houston-based leader.

    Climate Investment announced Patrick Yip will lead the firm's growth investment strategy as managing director, head of growth. In his new role, he will oversee the development of CI’s growth-stage portfolio, including deal sourcing, operational function of strategy, and working with the team that manages the firm's early-stage Catalyst program. He reports to the CEO, Pratima Rangarajan.

    “We are excited to welcome Patrick to Climate Investment,” Rangarajan says in a news release. “The decarbonization investment opportunity continues to grow rapidly, and Patrick’s extensive experience will help us capitalize on that. He will also provide leadership and develop the market partnerships that will drive our growth investment strategy forward, playing a key role in supporting portfolio market adoption and accelerating the next stage of development for CI.” Continue reading.

    Firm hires top Houston-based energy banker to grow energy transition team

    Top Houston banker Stephen Trauber has joined publicly traded investment bank Moelis & Co. Image via Shutterstock

    Houston energy dealmaker Stephen Trauber has been tapped as chairman and global head of the energy and clean technology business at publicly traded investment bank Moelis & Co.

    In 2010, The Wall Street Journalcalled Trauber “one of the best-connected energy bankers in Houston.”

    Trauber comes to New York City-based Moelis from Citi, where he recently retired as vice chairman and global co-head of natural resources and clean energy transition. Before that, he was vice chairman and global head of energy at UBS Investment Bank, where he worked with Ken Moelis, who’s now chairman and CEO of Moelis. Continue reading.

    Houston expert: Is China leading the global energy transition?

    guest column

    China plays a big role in the global push to shift from fossil fuels to cleaner energy. It's the world's largest carbon emitter but also a global leader in solar, wind, and battery technologies. This combination makes China a critical player in the energy transition. China may not be doing enough to reduce its own greenhouse gas emissions, but it is leading the way in producing low-cost, low-carbon solutions.

    Why Materials Matter

    One of the biggest challenges in switching to alternative energy is the need for specific materials like lithium, cobalt, and rare earth metals. These are essential for making things like solar panels, wind turbines, and batteries. In her report, "Minerals and Materials Challenges for Our Energy Future(s): Dateline 2024," Michelle Michot Foss emphasizes the critical role of materials in energy transitions:

    "Energy transitions require materials transitions; sustainability is multifaceted; and innovation and growth will shape the future of energy and economies."

    China controls much of the supply and processing of these materials. For example, it produces most of the world’s rare earth metals and has the largest capacity for making batteries. This gives China a big advantage but also creates risks. Michot Foss points out:

    "China’s command over material supply chains presents both opportunities and risks. On one hand, it enables rapid scaling of technologies like wind, solar, and batteries. On the other hand, it exposes the global market to potential vulnerabilities, as geopolitical tensions and trade barriers could disrupt these critical flows."

    China’s strategy for dominating alternative energy materials is also closely tied to its national security interests. By securing control over these critical supply chains, China not only hopes to guarantee its own energy independence but also gains significant geopolitical leverage.

    “Is China’s leadership strategic or accidental? China’s dominance is a consequence of enormous excess materials supply chain and manufacturing capacity. A flood of exports are undermining materials and “green tech” businesses everywhere. It heightens vulnerabilities and geopolitical tensions. How do we in the US find our own comparative advantage?” Michot Foss notes that advanced materials should be a priority for US responses, especially as attention shifts to nuclear energy possibilities and as carbon capture and hydrogen initiatives play out.

    Balancing Energy Growth and Emissions

    GabrielCollins, in his report "Reality Is Setting In: Asian Countries to Lead Transitions in 2024 and 2025," offers another perspective. He focuses on how developing nations, especially in Asia, are shaping the energy transition:

    "The developing world, including many countries in Asia, increasingly demand that developed nations’ policy advocacy stop treating the economic and environmental needs of the developing world as an afterthought."

    Collins highlights China’s dual strategy: investing heavily in renewables while still using coal to meet its growing energy demand. He explains:

    "China, which now has installed a terawatt combined of wind and solar capacity while still ramping up coal output and moving to dominate EV and renewables supply chains and manufacturing."

    This strategy appeals to other developing nations, which face similar challenges of balancing energy needs with environmental goals while fostering economic growth and expanding industries.

    The Numbers: Progress and Challenges

    McKinsey’s Global Energy Perspective 2024 provides some useful data. On the bright side, China is installing renewable energy faster than any other country. In 2023, it added over 100 gigawatts of solar capacity, a world record. Wind energy is growing quickly too, and China leads in producing electric vehicle batteries.

    But McKinsey also notes the challenges. Coal still generates more than half of China’s electricity. While renewable energy is growing fast, it’s not replacing coal yet—it’s just adding to China’s total energy capacity.

    McKinsey sums it up: China is leading in renewable energy deployment, but its reliance on coal highlights the slow pace of deep decarbonization. The country is transitioning, but not fast enough to meet global climate targets.

    Is China Leading or Lagging?

    So, is China leading the energy transition? The answer is: it depends on how you define “leading.”

    If leadership means building more solar and wind farms, dominating the materials supply chain, and being the leading supplier of low-carbon solutions, then yes, China is ahead of everyone else. But if leadership means cutting their own emissions quickly and shifting away from fossil fuels, China still has work to do.

    China’s approach is practical. It’s making progress where it can—like scaling up renewables—but it’s also sticking with coal to ensure its economy and energy needs stay stable.

    Final Thoughts

    China is both a leader and a work in progress when it comes to the energy transition. Its achievements in renewable energy are impressive, but its reliance on coal and the challenges of balancing growth with sustainability show there’s still a long road ahead.

    China’s story reminds us that the energy transition isn’t a straight path. It’s a journey full of trade-offs and complexities, and China’s experience reflects the challenges the whole world faces. At the same time, its focus on national security through energy independence and industrial strategy to build low-carbon export businesses signals a strategic move that is reshaping global power dynamics, leaving the United States and other nations to reevaluate their energy policies.

    ———

    Scott Nyquist is a senior advisor at McKinsey & Company and vice chairman, Houston Energy Transition Initiative of the Greater Houston Partnership. The views expressed herein are Nyquist's own and not those of McKinsey & Company or of the Greater Houston Partnership. This article originally ran on LinkedIn on December 5, 2024.


    Robotics co. with growing Houston presence closes series B

    money moves

    Houston- and Boston-based Square Robot Inc. closed a series B round of funding last month.

    The advanced submersible robotics company raised $13 million, according to Tracxn.com, and says it will put the funds toward international expansion.

    "This Series B round, our largest to date, enables us to accelerate our growth plans and meet the surging global demand for our services,” David Lamont, CEO, said in a statement.

    The company aims to establish a permanent presence in Europe and the Middle East and grow its delivery services to reach four more countries and one new continent in Q1 2025.

    Additionally, Square Robot plans to release a new robot early next year. The robot is expected to be able to operate in extreme temperatures up to 60 C. The company will also introduce its first AI-enabled tools to improve data collection.

    Square Robot launched its Houston office in 2019. Its autonomous, submersible robots are used for storage tank inspections and eliminate the need for humans to enter dangerous and toxic environments.

    The company was one of the first group of finalists for the Houston Innovation Awards' Scaleup of the Year, which honors a Bayou City company that's seen impressive growth in 2024. Click here to read more about the company's growth.

    View All Listings