Peng Zhu (left) and Haotian Wang developed a carbon-capture device prototype. Photos courtesy Jeff Fitlow/Rice University

A Rice University lab has developed an efficient, scalable way to capture carbon dioxide — and it just needs to be plugged into a power outlet to work.

The new technology developed in the lab of chemical and biomolecular engineer Haotian Wang, the William Marsh Rice Trustee Chair and an associate professor at Rice, uses electricity to remove carbon dioxide from air capture to induce a water-and-oxygen-based electrochemical reaction. The findings were shared in a study published in Nature last month.

Traditionally, carbon capture requires very energy intensive processes that need high temperatures and for the carbon that's been captured to be regenerated. The process also often requires large-scale infrastructure.

In the Wang lab's method, the small reactor can continuously remove carbon dioxide from a simulated flue gas with nearly 100 percent efficiency, generating between 10 to 25 liters of high-purity carbon using only the power of a standard lightbulb, according to a statement from Rice.

It does not create or consume chemicals, nor does it need to be heated up or pressurized, according to Wang. And it only requires a simple power source.

"The technology can be scaled up to industrial settings—power plants, chemical plants—but the great thing about it is that it allows for small-scale use as well: I can even use it in my office,” Wang says in the statement. “We could, for example, pull carbon dioxide from the atmosphere and continuously inject that concentrated gas into a greenhouse to stimulate plant growth. We’ve heard from space technology companies interested in using the device on space stations to remove the carbon dioxide astronauts exhale.”

Wang and lab member Peng Zhu, a chemical and biomolecular engineering graduate student at Rice and lead author on the study, initially made the discovery when working on an earlier version of the reactor intended for carbon dioxide utilization.

During this process Zhu noticed that gas bubbles flowed out of the reactor’s middle chamber when producing liquid products like acetic acid and formic acid, and that the number of bubbles would increase when more current was applied to the reactor.

This led the scientists to realize that the reactor was creating carbonate ions that were converted into a continuous flow of high-purity carbon dioxide after passing through the reactor's solid-electrolyte layer.

“Scientific discovery often requires this patient, continuous observation and the curiosity to learn what’s really going on, the choice not to neglect those phenomena that don’t necessarily fit in the experimental frame," Wang said in a statement.

A number of players in the Houston area have been making headway in carbon capture space in recent weeks.

Earlier this summer, the U.S. Department of Energy granted more than $45 million in federal funding to four Houston companies to promote the capture, transportation, use, and storage of tons of carbon dioxide emissions.

The Rice Alliance also recently named 15 startups to its Clean Energy Accelerator. A number of the fledgling companies are focused on carbon management and capture.

Video by Brandon Martin/Rice University

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Fervo Energy officially files for initial public offering

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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.”