One of the biggest obstacles to Texas' net-zero goals is its transportation sector, according to Houston research. Photo via UH.edu

A new report found that one of Texas' biggest roadblocks with reducing emissions is its transportation sector.

In its white paper series, the University of Houston's energy researchers found that — unless something changes — the Lone Star State is not likely to hit its carbon neutrality goals by 2050 within the transportation sector.

“What would it take to make the Texas transportation sector net zero by 2050?” Ramanan Krishnamoorti, UH vice president for energy and innovation, says in a news release. “The answer is a miracle, policy interventions that start as soon as possible, and somewhere between 30 to 50 billion dollars of public money between now and 2050 and at least an equal match from the private sector.”

According to the Net Zero in Texas: The Role of Transportation report, over 230 million metric tons of carbon dioxide gas is released from Texas roads each year. By 2050, estimates show that the remaining gasoline and diesel vehicles on the road will still be contributing about 40 million metric tons of emissions. Krishnamoorti collaborated with UH Energy researcher Aparajita Datta on a white paper.

“The future is crucial not only for Texas, where carbon emissions hinge on transportation solutions but also for our nation. Emissions transcend state lines and considering the size of Texas, its growing population and strong industry, the impact is significant,” Krishnamoorti adds.

Some of the challenges the state faces, per the report, hinge on electric vehicle adoption, which has been slow for a variety of reasons. One is the lack of EV production materials, such as lithium, cobalt, copper, manganese and graphite, due to increased demand, which is slated to be increased by 140 to 500 percent.

The EV workforce development also poses a challenge. Right now, hourly wages in the traditional auto sector range from $26 to $60, but most jobs in the EV industry, which are not unionized, range from $17 to $21 per hour.

The call for EV infrastructure is also estimated to be high. Per a news release about the report, "the change will require an annual expenditure of $250 million to $640 million for Level-2 (L2) charging stations and between $500 million and $1.3 billion for DC Fast Charging (DCFC) stations in 2040."

The transition will include an addition of 40,000 and 180,000 jobs in Texas between now and 2050, as well as an estimated $104 billion addition in public health benefits for Texans – fewer deaths, fewer asthma attacks and fewer sick days, according to the study.

“It is evident that decarbonizing Texas’ transportation sector will be a significant challenge and relying solely on consumer behavior to change is unrealistic,” Krishnamoorti says in the release. “We need robust policies to drive the state’s transportation electrification. Let’s acknowledge the journey ahead; federal mandates alone will not guide us to net zero by 2050. Texas needs to act now.”

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Houston company lands first deal from new Blackstone energy transition fund

M&A activity

Asset manager Blackstone has agreed to buy Houston-based Dresser Utility Solutions from Connecticut private equity firm First Reserve for an undisclosed amount. First Reserve has a major presence in Houston.

The deal represents the first investment from Blackstone Energy Transition Partners V.

“Blackstone’s deep resources and experience in the utility sector make them an ideal partner as we continue to invest in innovation, expand our product portfolio, and deliver value for our customers,” Dresser CEO David Evans said in a news release.

Founded in 1880, Dresser provides metering technology, digital instrumentation and software, pressure and flow controls, and infrastructure repair products for gas and water utilities and industrial customers. The company employs about 850 people worldwide.

“As demands on the energy grid continue to grow, Dresser plays a critical role as a trusted partner to utilities managing essential infrastructure. The company’s products are foundational to the safe and reliable operation of gas and water networks, and its reputation for quality has helped build longstanding customer relationships,” David Foley, global head of Blackstone Energy Transition Partners, and JP Munfa, senior managing director, said in the release.

Blackstone Energy Transition Partners has invested more than $28 billion across the energy transition sector. New York-based Blackstone closed Blackstone Energy Transition Partners Fund IV at $5.6 billion in February 2025. Blackstone Energy Transition Partners Fund III closed in 2020 for $4.4 million, according to Pitchbook.

Other notable energy transition investments from Blackstone funds include Salt Lake City-based Energy Exemplar, French electronics manufacturing company Sediver, Plano-based Westwood Professional Services and others.

Two years ago, Dresser secured a $335 million credit facility from funds managed by asset manager Blue Owl Capital. At the time, Dresser said the money would go toward capital expenses, acquisitions and corporate needs.

This is the second notable investment Blackstone has made in a Houston-based energy company in recent months. In May, Blackstone and energy heavyweight Halliburton made a $1 billion equity investment in Houston power generation startup VoltaGrid, which provides behind-the-meter mobile power generation equipment for data centers, microgrids and industrial customers.

Houston cleantech startup closes $17M round to tap into hot geothermal sector

fresh funding

Houston-area startup Hephae Energy Technology Corp. has closed a $17.8 million Series A financing round to commercialize its geothermal technology.

The round was co-led by Pennsylvania-based Susquehanna Sustainable Investments, which invests in early-stage climatech companies, and Copenhagen-based Underground Ventures, which focuses on geothermal energy startups. Alfa8, Baruch Future Ventures, Centaurus Capital LP, Elemental Impact, Exa Ventures, Future Ventures, Grantham Foundation for the Protection of the Environment, New System Ventures and True North Institute joined the round, along with existing Houston-based investor Nabors Industries. Hyphae reports in a news release that the Series A round brings the company's total capital raised to $24.7 million.

Hephae develops ultra-high-temperature downhole sensing, measurement, communications and control systems that can withstand the heat of geothermal sites, which are hotter and deeper than traditional oil and gas reservoirs. The company's Pandora210 system can operate at up to 400 degrees Fahrenheit.

Hephae reports that it plans to use the new funding to commercialize its Pandora210 tool and to launch research and development into systems that can withstand temperatures of up to 570 degrees Fahrenheit. Houston-based Fervo Energy, for instance, recently tapped its hottest geothermal well to date in western Utah, showing temperatures above 555 degrees Fahrenheit.

"Commercial deployment represents a major milestone in our mission to scalable, always-on, emission-free power globally, with a world-class team to tackle this problem," Steve Krase, CEO of Hephae Energy Technology, said in the release." This investment enables Hephae to transition from development to scale, delivering the ultra-high temperature drilling technologies needed to support the rapid growth of the geothermal industry in the US and international markets."

Hephae has been collaborating with Fervo Energy in the field. The company told the Houston Business JournalHouston Business Journal this spring that it expected its Pandora210 technology to be deployed at its Utah sites.

“Fervo is encouraged by the early progress of our collaboration with Hephae, whose novel high-temperature innovations have the potential to contribute positively to EGS economics, unlock higher-energy geothermal resources, and further cement the competitiveness of next-generation geothermal power," Elliot Howard, director of drilling and completions at Fervo, added in the release.

As the geothermal industry continues to scale, Hephae says it aims for its technology to help companies "unlock hotter, deeper resources that result in lower produced energy costs."

The Spring-based startup was founded in 2020 by CEO Steve Krase and CTO John Clegg. Krase previously launched Navigate Energy Services, which was acquired by Nabors in 2013. Clegg is also an industry veteran and has held numerous leadership positions at energy companies, including Weatherford, NOV, Schlumberger and others.