Just what does 'energy transition' mean, anyway? Photo via Shutterstock

The term “energy transition” is fraught with misconceptions, but not just because of the varied interpretation of the term “transition.” The Energy101 series on EnergyCapitalHTX.com brings clarity to both terms with simple and direct information that anyone can understand. As explored in a previous conversation with ChatGPT, we are all part of the Energy Industry, so its high time we all understood it.

DEFINING TERMINOLOGY

Merriam-Webster defines transition as “a change or shift from one state, subject, place, etc. to another.” The popular interpretation of ‘energy transition’ implies a complete shift away from energy produced from fossil fuels to energy produced from renewable sources. This isn’t entirely accurate–let’s explore why.

“The challenge of our lifetime is addressing [the] dual challenge of meeting increased global energy demand while confronting global climate change” says Jane Stricker, executive director of the Houston Energy Transition Initiative and senior vice president, Greater Houston Partnership. This globally inclusive definition of ‘energy transition’ focuses on addressing objectives instead of proffering solutions–a common project management viewpoint through which opportunities are explored.

It's a simple, but effective, way to expand one’s line of thinking from acute problem solving to broader root-cause analysis. In other words, it is how we elevate from playing checkers to mastering chess.

DEFINING THE OPPORTUNITY

The United Nations tells us the world’s population reached 8 billion in late 2022, an increase of more than one billion people in just over a decade. During the same time frame, the number of people around the world without consistent access to electricity declined from approximately 1.2 billion to 775 million per the International Energy Agency (IEA) 2022 World Energy Outlook report. A commendable feat, no doubt, but the fact remains that about 10% of the world’s population still lives in energy poverty–and that number is increasing.

The first half of Stricker’s sentiment, the challenge of “meeting increased global energy demand” reflects these statistics, albeit almost poetically. To state the issue more plainly, one could ask, “how do we get more energy to more people?” Taking it one step further, we can split that inquiry into two basic questions: (1) how to get more energy, and (2) how to reach more people. This is where it gets interesting.

As explored in the inaugural Energy 101 article, energy is converted into usable form through one of three reactions. Mechanical and nuclear reactions that create electricity for immediate consumption are often deemed “cleaner” than those produced by chemical reaction, but the challenges of delivering more energy consistently and reaching more people are left shortchanged due to intermittent production and limited distribution mechanisms.

In recent history, this has left us to rely upon energy produced by chemical reactions from fossil fuels and/or batteries. Batteries have inherently been the more expensive option, mostly because of the limited supply of minerals necessary to effectively store and transport energy for later use in these contained systems. Hence, the heavy reliance on cheap fossil fuels.

REFINED CONSTRAINTS DEMAND NEW SOLUTIONS

With price as the determining factor influencing the modern world’s energy supply, oil and natural gas have scrambled to compete with coal, which is affordable and easily transportable. However, coal has one major drawback–using it accounts for approximately 20% of carbon emissions, more than oil and gas industrial use, combined, per calculations from the U.S. Energy Information Agency.

We have a duty to get more energy to more people, “while confronting global climate change,” as Stricker states. In the context of energy poverty, where more consistent access to more electricity needs to reach more people, energy needs not only be abundant, reliable, affordable, and accessible, but also, less toxic.

So far, we have yet to find a solution that meets all these conditions, so we have made trade-offs. The ‘energy transition’ merely reflects the energy industry’s latest acceptance of the next hurdle to enhance our lives on earth. As depicted by the image from the IEA below, it most certainly reflects a reduction in the reliance on coal for electricity production, but how that energy reduction will be off set remains yet to be determined.

It's an opportunity ripe for exploration while existing sources push to meet the expanding definition of sustainable energy–a shift in evaluation criteria, some might say. Perhaps even a transition.

Stacked chart showing demand of natural gas, coal, and oil from 1900 to 2050 (estimated)Demand for natural gas and oil are expected to level out, as demand for coal shrinks to meet goals for lower carbon emissions. Photo courtesy of IEA, license CC by 4.0Demand for natural gas and oil are expected to level out, as demand for coal shrinks to meet goals for lower carbon emissions. Photo courtesy of IEA, license CC by 4.0


------

Lindsey Ferrell is a contributing writer to EnergyCapitalHTX and founder of Guerrella & Co.

Ad Placement 300x100
Ad Placement 300x600

CultureMap Emails are Awesome

Houston companies team up on $700M floating solar projects in Texas

float on

Diamond Infrastructure Solutions has given Third Pillar Solar exclusive rights to access Diamond’s Texas reservoirs for the possible launch of utility-scale floating solar installations. Both companies are based in the Houston area.

The potential investment in the floating solar project exceeds $700 million, and the project is expected to generate up to 500 megawatts of solar energy.

“Our agreement with Third Pillar marks a bold step forward in how we think about infrastructure and sustainability. By transforming underutilized water surfaces into clean energy assets, Diamond is advancing its commitment to innovation while delivering long-term value,” Ed Noack, CEO of Diamond Infrastructure Solutions, said in the release.

Dow Chemical Co. and a fund directed by Macquarie Asset Management announced the formation of Diamond in 2024. Dow holds a majority stake in Diamond, which owns Gulf Coast infrastructure used by Dow and other industrial customers at five locations in Texas and Louisiana.

The solar installations are scheduled to be built and in operation by the end of the decade.

The agreement between Diamond and Three Pillar “demonstrates the growing appetite for utility-scale energy solutions and highlights how floating solar can enhance and transform the value of existing infrastructure, all while providing cost-competitive energy, preserving agricultural land, reducing evaporation losses, and existing out of public view,” Jaimeet Gulati, CEO of Third Pillar, added in the realease.

Founded in 2022 and majority-owned by renewable energy investor Glentra Capital, Third Pillar develops, owns and operates floating photovoltaic solar installations. The installations are designed to float in places such as wastewater lagoons, reclaimed sand and gravel pits and industrial reservoirs. Third Pillar’s development pipeline contains more than 60 projects.

Rice Alliance names participants in 22th annual energy forum

where to be

The Rice Alliance for Technology and Entrepreneurship has named the 100 energy technology ventures that will convene next month at the 22nd annual Rice Alliance Energy Tech Venture Forum, as part of the second annual Houston Energy and Climate Startup Week.

Half of the startups, which hail from nine countries and 19 states, will pitch during the event, which culminates in the annual recognition of the “Most Promising Companies." The 12 companies that were named to Class 5 of the Rice Alliance Clean Energy Accelerator will present during Demo Day to wrap up their 10-week program.

In addition to pitches, the event will also host keynotes from Arjun Murti, partner of energy macro and policy at Veriten, and Susan Schofer, partner at HAX and chief science officer at SOSV. Panels will focus on corporate innovation and institutional venture capital. Attendees can also participate in one-on-one office hours with founders and investors.

The forum will take place Sept. 18 at Rice University’s Jones Graduate School of Business.

The 2025 presenting companies include:

  • Aeromine Technologies
  • AlumaPower
  • Ammobia
  • Aqua-Cell Energy
  • Aquafortus
  • Aquora Biosystems
  • Arculus Solutions
  • Artemis Production Solutions
  • AtmoSpark Technologies
  • AtoMe
  • Badwater Alchemy
  • C+UP
  • Carbon Blade
  • Circul8 Energy & Environment
  • CO2 Lock
  • Direct C
  • DirectH2
  • Ekona Power
  • Exum Instruments
  • Fathom Storage
  • Flyscan Systems
  • Geokiln Energy Innovation
  • Glint Solar
  • Hive Autonomy
  • Horne Technologies
  • Hydrogenious LOHC Maritime
  • Innowind Energy Solutions
  • Iron IQ
  • Kewazo
  • LiNova Energy
  • Lukera Energy
  • Lydian
  • Mcatalysis
  • Metal Light
  • Mithril Minerals
  • Moment Energy
  • Moonshot Hydrogen
  • Muon Vision
  • PolyQor
  • Polystyvert dba UpSolv
  • Precision Additive
  • RapiCure Solutions
  • Resollant
  • SiriNor
  • Skyven Technologies
  • Sperra
  • SpiroPak
  • Sweetch Energy
  • Teverra
  • Utility Global
  • Xplorobot

Companies participating in office hours include:

  • Active Surfaces
  • Advanced Reactor Technologies
  • Advanced Thermovoltaic Systems
  • Ai Driller
  • Airbridge
  • Airworks Compressors
  • Austere Environmental
  • Brint Tech
  • CarbonX Solutions
  • Cavern Energy Storage
  • Celadyne Technologies
  • CERT Systems
  • CubeNexus
  • Deep Anchor Solutions
  • Ellexco
  • Emerald Battery Labs
  • Equipt.ai
  • FAST Metals
  • FieldMesh
  • FlowCellutions
  • Fluidsdata
  • GrapheneTX
  • GS VORTEX SYSTEMS
  • Installer
  • Kanin Energy
  • MacroCycle Technologies
  • Modular MOPU
  • NANOBORNE
  • NetForwards
  • Oxylus Energy
  • PetroBricks
  • PHNXX
  • RASMAG Energy
  • RedShift Energy
  • RENASYS
  • RenewCO2
  • Resonantia Diagnostics
  • Respire Energy
  • Safety Radar
  • SeaStock
  • Secant Fuel
  • SolGrapH
  • Stratos Perception
  • Terraflow Energy
  • Think Energy Holdings
  • Turnover Labs
  • Utiltyx
  • Zenthos Energy

Find information about the full day of events here, or click here to register.

Houston environmental firm makes partnership to deliver low-carbon ship fuel

renewable shipping

Houston-headquartered environmental services firm Anew Climate and Vancouver-based ship-to-ship marine bunkering of liquified natural gas company Seaspan Energy have entered into a first-of-its-kind strategic agreement to offer the delivery of renewable liquefied natural gas (R-LNG) to customers on the North American West Coast.

“We’re proud to collaborate with Anew Climate to forge a new path for lower-carbon marine fuel,” Harly Penner, president of Seaspan Energy, said in a news release. “This partnership supports our goal to provide cleaner energy solutions to the maritime industry and demonstrates our dedication to innovation and environmental leadership.”

Anew will supply renewable natural gas (RNG) certified by the International Sustainability and Carbon Certification (ISCC). The RNG will comply with the International Maritime Organization's (IMO) Net-Zero Framework, which recently approved measures to encourage emissions reductions, and the FuelEU Maritime Regulation in the European Union.

Together, the companies aim to identify and develop commercial opportunities to promote the adoption of lower-carbon fuels and deliver ISCC-certified renewable liquified natural gas (R-LNG) to ships throughout the North American West Coast.

The partnership builds upon Anew Climate’s bio-LNG bunkering, which was developed in 2021 when the company was known as Element Markets. It was the first bio-LNG bunkering, or refueling with bio-LNG, in the U.S.

“At a time when global shipping is under pressure to decarbonize, this partnership brings together two innovators committed to advancing sustainable solutions,” Andy Brosnan, president of Anew Climate Low Carbon Fuels, said in a news release. “By combining Anew’s expertise in RNG with Seaspan’s marine logistic capabilities, we’re offering a market-leading approach to help shipowners meet evolving emissions requirements and reduce their environmental impact without compromising performance.”

In July, Anew also extended its agreement with CNX Resources to market remediated mine gas, which is an ultra-low carbon intensity energy source from captured waste methane. It also announced a 10-year agreement earlier this summer with Aurora Sustainable Lands and Microsoft to deliver 4.8 million nature-based carbon removal credits. Anew Climate, founded in 2001, states that its mission is to reduce emissions, environmental restoration and impact the climate in a positive way.