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Rice, UH launch joint effort to accelerate plastics recycling solutions

plastics partnership

Rice's Baker Institute and UH's Energy Transition Institute have partnered to develop real-world solutions for plastic recycling. Photo courtesy UH

Institutes at two Houston universities are joining forces to help position the city as a global leader in plastics recycling innovation.

The Center for Energy Studies (CES) at Rice University’s Baker Institute for Public Policy and the University of Houston’s Energy Transition Institute (UH-ETI) have announced a strategic partnership that aims to develop real-world solutions for plastic recycling.

The universities will kick off the new initiative with the Annual Sustainability Summit: Innovations and Collaborations in Circularity & Supply Chain Resilience event April 22 at the Baker Institute.

“Houston sits at the center of the global plastics and petrochemical value chain, which makes it uniquely positioned to lead in circular solutions,” Rachel Meidl, deputy director of CES, said in a news release. “This partnership is about moving beyond theory and bringing together data, policy and industry insight to accelerate technologies and frameworks that can scale.”

The partnership—which was made official during CERAWeek—will integrate policy, economics, science and engineering. The universities will work to “share data, insights, networks and connections to advance global work in protecting the environment, economy and society,” according to a news release from Rice.

Initially, the universities will focus on evaluating scalable advanced recycling pathways, developing policy frameworks to improve plastics circularity, analyzing emerging technology and using industry stakeholders for deployment.

Plastics circularity aligns with Rice and UH’s energy transition efforts to advance a circular economy. UH's ETI recently published a white paper that analyzes how the U.S. currently handles plastics recycling and advocates for a new approach. Ramanan Krishnamoorti, author of the paper and vice president of energy and innovation at UH, said the partnership with Rice’s Baker Institute could help bring some of the ideas outlined in the paper to reality.

“Our research has shown that a uniform approach may be the best way for the U.S. to tackle plastic waste,” Krishnamoort said in a news release. “By partnering with Rice’s Baker Institute for Public Policy, we will be better positioned to deliver real-world solutions that advance a circular plastics economy.”

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Quantum Power Systems took home the top TEX-E prize at this year's Energy Venture Day pitch competition during CERAWeek. Photo via LinkedIn

CERAWeek crowns winners of 2026 clean tech pitch competition

top teams

Twelve teams from around the country, including several from Houston, took home top honors at this year's Energy Venture Day and Pitch Competition at CERAWeek.

The fast-paced event, held March 25, put on by Rice Alliance, Houston Energy Transition Initiative and TEX-E, invited 36 industry startups and five Texas-based student teams focused on driving efficiency and advancements in the energy transition to present 3.5-minute pitches before investors and industry partners during CERAWeek's Agora program.

The competition is a qualifying event for the Startup World Cup, where teams compete for a $1 million investment prize.

PolyJoule won in the Track C competition and was named the overall winner of the pitch event. The Boston-based company will go on to compete in the Startup World Cup held this fall in San Francisco.

PolyJoule was spun out of MIT and is developing conductive polymer battery technology for energy storage.

Rice University's Resonant Thermal Systems won the second-place prize and $15,000 in the student track, known as TEX-E. The team's STREED solution converts high-salinity water into fresh water while recovering valuable minerals.

Teams from the University of Texas won first and second place in the TEX-E competition, bringing home $25,000 and $10,000, respectively. The student winners were:

Companies that pitched in the three industry tracts competed for non-monetary awards. Here are the companies named "most-promising" by the judges:

Track A | Industrial Efficiency & Decarbonization

Track B | Advanced Manufacturing, Materials, & Other Advanced Technologies

  • First: Licube, based in Houston
  • Second: ZettaJoule, based in Houston and Maryland
  • Third: Oleo

Track C | Innovations for Traditional Energy, Electricity, & the Grid

The teams at this year's Energy Venture Day have collectively raised $707 million in funding, according to Rice. They represent six countries and 12 states. See the full list of companies and investor groups that participated here.

Heading to CERAWeek? Here's where to find Houston energy leaders on the Agora track. Photo courtesy of CERAWeek

30+ CERAWeek events featuring Houston energy leaders

where to be

CERAWeek returns to Houston March 23-27, bringing more than 1,000 speakers, executives and energy innovators to Houston.

Under this year's theme, "Convergence and Competition: Energy, Technology and Geopolitics,” panels will tackle topics ranging from policy and global relations to the growing role of AI in the energy sector. Most of the innovation-themed events are organized under the Agora track and will feature many Houston-area startups, universities, companies and scientists. Panels will feature leaders from Fortune 500 companies and top U.S. government officials, scientists and founders pushing towards a more carbon-neutral future.

Here are some of the many events featuring Houston leaders on the Agora track you can't miss if you want to learn more about Houston energy innovation.

Monday, March 23rd


Scaling Innovation: Building the ecosystem for the next energy breakthroughs

Featuring: Georgina Campbell Flatter, CEO of Greentown Labs

This event is at 10:30 a.m. Find more info here

Vaulted Deep | The Subsurface as Waste and Carbon Infrastructure

Featuring: Julia Reichelstein, co-founder and CEO of Vaulted Deep

This event is at 11:30 a.m. Find more info here

Collaboration Spotlight | Collision Course: How Houston's Ion District turns proximity into innovation

Featuring: Adrian Tromel, chief innovation officer at Rice University; Rawand Rasheed, co-founder and CEO of Helix Earth Technologies; Marc Davidson, senior technical advisor at Veriten

This event is at 1:30 p.m. Find more info here.

Methane Reduction in Practice: Field learnings

Featuring: Matt Kolesar, chief environmental scientist at ExxonMobil

This event is at 2 p.m. Find more info here.

Time-to-AI: Shrinking the data-center clock

Featuring: Robert Ott, vice president of wholesale origination at NRG Energy; Andrew Johnston, business line director, data centers at SLB

This event is at 2:30 p.m. Find more info here.

Scaling CCUS: Which industries, regions and funding sources?

Featuring: Gino Thielens, vice president of renewables and energy efficiency at SLB; Ian McIntyre, senior vice president, 1PointFive

This event is at 3 p.m. Find more info here.

Democratization of AI: Redefining where work gets done

Featuring: Rob Crane, technology scouting and venturing manager at SLB

This event is at 3:30 p.m. Find more info here.

Tuesday, March 24th


Syzygy Plasmonics | Affordable, Globally Compliant SAF Using Abundant Biogas Feedstock

Featuring: Trevor Best, CEO and founder of Syzygy Plasmonics

This event is at noon. Find more info here.

Accelerating Idea to Impact: Carving new ways to innovation

Featuring: David Sholl, executive vice president for research at Rice University

This event is at 1 p.m. Find more info here.

NRG | From the Front Lines: A deep dive into grid reliability

Featuring: Matthew Pistner, senior vice president of generation at NRG Energy; Robert Patrick, vice president of development engineering and construction at NRG Energy

This event is at 1:30 p.m. Find more info here.

Energy Efficiency: The industrial advantage

Featuring: Jason Urso, CTO of Honeywell Industrial Automation

This event is at 1:30 p.m. Find more info here.

The CEO Blueprint | Strategy

Featuring: Lorenzo Simonelli, CEO and chairman of Baker Hughes

This event is at 2:55 p.m. Find more info here.

Occidental | Beyond the Technology: Turning direct air capture into CDR credits

Featuring: William Barrett, vice president of product development at 1PointFive

This event is at 3:30 p.m. Find more info here.

Wednesday, March 25th


Innovations in Sustainable Steel

Featuring: Laureen Meroueh, founder and CEO of Heartha Metals Inc.

This event is at 9 a.m. Find more info here.

Rice University | The Science of Geologic Carbon Storage

Featuring: Sahar Bakhshian, assistant professor, earth, environmental and planetary sciences at Rice University

This event is at 9:30 a.m. Find more info here.

Sparking Innovation: The impact of interdisciplinary collaboration

Featuring: Marie Contou Carrere, executive director of the Rice Sustainability Institute; Sandy Guitar, executive director of TEX-E

This event is at 10 a.m. Find more info here.

Models of Innovation, Models of Capital

Featuring: Bobby Tudor, chair of Houston Energy Transition Initiative and chairman of the board for Greentown Labs

This event is at 10:30 a.m. Find more info here.

Energy Venture Day and Pitch Competition

This event is at noon. Find more info here. Learn more about the competing teams here.

Baker Hughes | Meeting Industrial and AI-Driven Energy Demand with Flexible, Reliable and Sustainable Power Solutions

Featuring: Daniele Marcucci, industrial power generation product director at Baker Hughes; Florent Rousset, geothermal leader, new energies at Baker Hughes

This event is at noon. Find more info here.

Thursday, March 26th


Mission-driven Minds: How space exploration inspires the next generation of energy innovators

Featuring: Trina Sadberry, head of brand & engagement in the United States at Equinor; Laura Dandridge, corporate affairs advisor at Chevron; Jack Fischer, chief integration officer at Intuitive Machines; Ginger Kerrick Davis, chief strategy officer at Barrios Technology

This event is at 9 a.m. Find more info here.

Rice University | Nature-based Solutions: A focus on biochar and enhanced rock weathering

Featuring: Carrie Masiello, director of the sustainability institute at Rice University; Mark Torres, associate professor, earth, environmental and planetary sciences at Rice University

This event is at 9:30 a.m. Find more info here.

Growing Direct Air Capture

Featuring: Anthony Cottone, resident and general manager at 1PointFive

This event is at 9:30 a.m. Find more info here.

Occidental | Advancement and Growth Opportunities for Enhanced Oil Recovery

Featuring: Vishal Gupta, president and general manager of EOR Ventures at Occidental

This event is at 9:30 a.m. Find more info here.

Geothermal: Charting progress on technological advancements

Featuring: Jonathan Ajo-Franklin, trustee professor, earth, environmental and planetary sciences at Rice University; Florent Rousset, geothermal leader, new energies at Baker Hughes

This event is at 10 a.m. Find more info here.

Newfound Materials | Bridging the Synthesis Gap in AI-Driven Materials Innovation

Featuring: Matt McDermott, founder and CEO of Newfound Materials

This event is at 10 a.m. Find more info here.

Hertha Metals | The Future of Steel Production: Going beyond the blast furnace

Featuring: Laureen Meroueh, founder and CEO of Heartha Metals Inc.

This event is at 11 a.m. Find more info here.

Advanced Materials with Low-Carbon Intensity

Featuring: Matteo Pasquali, director of the Rice Carbon Hub

This event is at 11:30 a.m. Find more info here.

Lessons from the Lab: Common pitfalls of hard tech startups

Featuring: Jeremy Pitts, managing director of Activate Houston

This event is at 11:30 a.m. Find more info here.

TotalEnergies | Accelerating Direct Air Capture

Featuring: Isabelle Betremieux, head of R&T CO2 capture department at TotalEnergies

This event is at 1 p.m. Find more info here.

Spotlight: "NextGen" energy leaders of the future

Featuring: Renu Khator, chancellor and president of the University of Houston

This event is at 3 p.m. Find more info here.

Solidec | On-site, On-demand Production of Essential Chemicals

Featuring: Ryan DuChanois, co-founder and CEO of Solidec

This event is at 3:30 p.m. Find more info here.

U.S. Secretary of the Interior Doug Burgum and U.S. Secretary of Energy Chris Wright will return to CERAWeek this month, along with dozens of energy executives and innovators. Photos courtesy CERAWeek.

CERAWeek 2026 to bring energy leaders to Houston to discuss tech and geopolitics

where to be

CERAWeek returns this month, March 23-27, and will once again bring leading energy executives and government officials to Houston.

The 44th annual event will again host U.S. Secretary of Energy Chris Wright and U.S. Secretary of the Interior Doug Burgum.

Wright will participate in a plenary session focused on energy policy with Daniel Yergin, conference chair and vice chairman of S&P Global, on March 23. The following day, he will be featured in the Celebrating 10 Years of U.S. LNG reception with Jack Fusso, president and CEO, of Cheniere Energy. Both events are part of the Executive Conference track.

Burgum will participate in a leadership dialogue plenary session with Yergin on March 25. It is also part of the Executive Conference track. Burgum is also chairman of the National Energy Dominance Council, established by President Trump in 2025.

Top energy executives, many of whom are based in Houston, will also be featured prominently at the week-long event. Other speakers include:

  • Bill Blevins, director of grid coordination for the Electric Reliability Council of Texas (ERCOT)
  • Trevor Best, CEO of Syzygy Plasmonics
  • Marie Contour Carrere, executive director of the Rice Sustainability Institute
  • Ryan DuChanois, co-founder and CEO of Solidec
  • Reginald DesRoches, president of Rice University
  • Georgina Campbell Flatter, CEO of Greentown Labs
  • Jim Fitterling, chair and CEO of Dow Inc.
  • Vicki Hollub, CEO of Occidental Petroleum Corp.
  • Renu Katon, chancellor and president of the University of Houston
  • Ryan Lance, chairman and CEO of ConocoPhillips
  • Olivier Le Peuch, CEO of SLB
  • Patrick Pouyanné, chairman and CEO of TotalEnergies SE
  • Adrian Tromel, chief innovation officer and interim VP for Innovation at Rice University
  • Bobby Tudor, founder and CEO of Artemis Energy Partners and chairman of HETI
  • Wael Sawan, CEO of Shell plc
  • Lorenzo Simonelli, chairman and CEO of Baker Hughes Co.
  • Mike Wirth, chairman and CEO of Chevron Corp.
  • Jeremy Pitts, managing director of Activate Houston
  • And many others

This year, CERAWeek will center around the theme of Convergence and Competition: Energy, Technology and Geopolitics.

"Change is inescapable," Yergin said in a news release. "The global energy landscape—and to a large extent the entire global economy—is being fundamentally reshaped by the dual forces of convergence and competition. The race for AI is fusing the energy and technology industries like never before, bringing into sharp relief the need to align energy expansion with sustainable economic growth."

"Yet, the potential for collaboration and innovation is increasingly matched by the risk for collision and conflict in a world marked by geopolitical rivalry, tariffs and fragmented supply chains," he continued. "Reconciling an increasingly complex world with the growing demand for energy that is stable, secure and affordable is a complex reality that CERAWeek 2026 will tackle when global energy leaders meet in Houston."

Key topics of discussion will include:

  • Politics, Economics, Trade and Supply Chains
  • Policy, Regulations and Stakeholders
  • Oil Value Chain
  • Power, Renewables, Generation and Grid
  • AI and Digital
  • Minerals and Mining
  • Electrification Technologies
  • Investment and Financing
  • Chemicals and Materials
  • Business Strategies
  • The Innovation Ecosystem
  • Managing Emissions
  • Low-Carbon Fuels and Mobility
  • Climate and Sustainability
  • Workforce Strategy

The CERAWeek Innovation Agora track, which is the program's deeper dive into technology and innovation, will feature thought leadership on "AI, decarbonization, low carbon fuels, cybersecurity, hydrogen, nuclear, mining and minerals, mobility, automation and more," according to the release.

Agora Hubs will return this year and be divided into three zones: new energies, carbon and climate, and AI. The hubs will feature amphitheater-style sessions and panels. Agora Pods will allow energy startups to showcase their ideas in 20- to 30-minute presentations.

Additionally, CERAWeek will introduce a new program this year on Friday, March 27. Known as Look Forward, it will focus on economics, politics and technology.

See the full agenda for the week here. Find more information and register for the event here.

Naomi Halas has pioneered insights into how light and matter interact at small scales, which led to the founding of Houston-based Syzygy Plasmonics. Photo by Jeff Fitlow/Rice University

Houston energy pioneer elected to National Academy of Sciences leadership

top honor

Naomi Halas, a Rice University professor and co-founder of Syzygy Plasmonics, was elected to the Council of the National Academy of Sciences this month.

The council sets priorities for the nonprofit organization, which advises the federal government on scientific and technical matters. Halas will serve a three-year term on the council, beginning July 1.

“The council’s work is focused on the academy’s national leadership and governance,” Halas said in a news release. “It plays an important role in helping set initiatives and priorities for the scientific community, and in supporting the conditions that allow science to move forward in meaningful ways.”

Halas is best known for her pioneering work in nanophotonics and plasmonics. She helped develop nanoshells, or metal-coated nanoparticles that capture light energy, which have led to innovations in renewable energy, cancer therapy and water purification.

Halas co-founded Syzygy Plasmonics with frequent collaborator and fellow Rice professor Peter Nordlander. The company is developing low-cost, light-driven, all-electric chemical reactors for the sustainable production of hydrogen fuel. It was named to Fast Company's energy innovation list last year.

Syzygy Plasmonics is developing its first commercial-scale biogas-to-sustainable aviation fuel project in Uruguay, known as NovaSAF-1. It secured a six-year offtake agreement for the entire production from the project with Singapore-based commodity company Trafigura this month.

Halas was first elected to become a member of the NAS in 2013, and was shortly after named to the National Academy of Engineering in 2014—making her one of the few scientists to hold both distinctions. She received the Benjamin Franklin Medal in Chemistry last year. Many scientists who have received the award have gone on to win Nobel prizes.

She is also the co-founder of Nanospectra Biosciences and a member of the National Academy of Inventors, the American Academy of Arts and Sciences, and the Royal Danish Academy of Science and Letters. She holds more than 25 patents, according to Rice.

DexMat plans to use its seed funding to commercially scale Galvorn, its carbon-based conductive fiber. Photo courtesy DexMat.

Houston climatech startup closes $5M seed round to scale copper alternative

seeing green

Houston-based material science and climatech startup DexMat has closed a $5 million seed round.

The round was led by non sibi ventures, with participation from Governance Partners, Tailwind Futures, BetterWay, Capital Factory and other investors. The company additionally announced that it has secured $3 million of non-dilutive funding.

DexMat plans to use the recent round to commercially scale Galvorn, its carbon-based conductive fiber. The high-performance copper alternative, originally developed at Rice University, is made from carbon nanotube (CNT) fibers, which are less energy- and CO2-intensive to produce.

The company says it will grow its technical and commercial teams and advance pilot-scale production to meet demand from new and existing customers in aerospace, defense and manufacturing industries.

"We’re seeing clear customer pull, particularly in wire and cable applications, as manufacturers look for conductive materials that are less dense, more durable, and resilient at scale,” Bryan Guido Hassin, CEO of DexMat, said in a news release. “This funding allows us to meet near-term demand and expand production capabilities in response to evolving supply-chain constraints."

The recent funding comes after a year of impressive growth. According to the news release, DexMat more than doubled its production and sales of Galvorn in 2025 compared to the previous year.

“We consistently hear the same message from customers: the material performs really well, and they need more of it at a lower cost,” Dmitri Tsentalovich, co-founder and CTO of DexMat, added in the release. “This round supports the production scale-up and cost reductions required to move Galvorn into broader commercial use.”

DexMat raised $3 million in funding in a round led by Shell Ventures in 2023. The company reports a 20-fold increase in capacity since its pre-seed round, along with a 96 percent reduction in production costs.

DexMat's technology was originally developed in the Rice University lab of co-founder Matteo Pasquali, who also serves as director of Rice’s Carbon Hub. According to previous reports, the company was built on over $20 million in non-dilutive funding—including grants from the Air Force Research Laboratory, Air Force Office of Scientific Research, U.S. Department of Energy, NASA, Advanced Functional Fabrics of America and the National Science Foundation—with Rice University included in the list of original investors.

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Major Texas energy port wrestles with water crisis due to years of drought

Resource Report

In parched southern Texas, a yearslong drought has depleted Corpus Christi's water reserves so gravely that the city is scrambling to prevent a shortage that could force painful cutbacks for residents and hobble the refineries and petrochemical plants in a major energy port.

Experts said the city didn't expect such a bad drought, and new sources of reliable water didn't arrive as expected. Those problems arose as the city increased its water sales to big industrial customers.

“We just have not kept up with water supply and water infrastructure like we should have. And it's decades in the making,” said Peter Zanoni, the city manager since 2019.

Corpus Christi, a city of about 317,000 people that also supplies water to nearby counties, is closely tied to its oil and gas industry. The region makes everyday essentials like fuel and steel and ships them to the world.

Zanoni said it is highly unlikely the city will run out of water, but without significant rainfall or new sources, residents may face forced cutbacks and industry may have to do with less. At a time when the Iran war is already raising gas prices, the shortage is hitting an area that produces 5% of the U.S. gasoline supply.

Droughts are common, but this one has dragged on for most of the past seven years. Key reservoirs are at their lowest point ever. The quickest fix is different weather.

“We are actively praying for a hurricane,” former city council member David Loeb said, half in jest. Loeb doesn't want anyone injured, but after wrestling with previous droughts in his time on the council, he feels the lack of rain acutely.

The drought isn't expected to lift by summer, leaving officials scrambling to tap more groundwater to avoid an emergency.

Lessons from last time

After the last drought in the early 2010s, the city approved a pipeline extension to bring in more water from the Colorado River and promoted conservation. In the years that followed, water use actually fell. The city, seeing opportunity, added a petrochemical plant and steel mill to its long list of industrial customers.

City officials had allowed for drought in their calculations — just not this kind of drought, Zanoni said. It has hit especially hard because reservoirs never fully recharged after the last one.

And it's come at a bad time.

After many years, the pipeline extension finally delivered its full capacity only last year. Meanwhile, discussion of building a desalination plant that would remove salt from seawater — a potentially drought-proof solution recommended in 2016 — bogged down over concerns about costs as high as $1.3 billion and environmental impact.

“If the then-city council had followed through on that, we would have had that plant up and running by now,” Zanoni said.

It's an industry town

Corpus Christi has followed its long-established plan for reducing water use. Stage 1 seeks voluntary actions from citizens like taking shorter showers and limiting how often they can water. Currently, the city is in Stage 3, which means pauses on many outdoor water uses.

Many residents are angry that they can’t water their lawns, that their bills are set to rise sharply and that they may face fines, said Isabel Araiza, co-founder of a grassroots group active on water issues. Some don’t feel industry will be asked to share in the pain, she said.

The city's drought plan allows for charging residents and businesses extra if they use lots of water. But big industry, which Zanoni says consumes as much as 60% of the city's water, can opt to pay a permanent surcharge to avoid the possibility of having a much larger fee added in times of drought.

Araiza calls it a bad system. Once industry pays the surcharge, she said, they have no incentive to conserve water.

The city has defended the system, saying in a statement that industry does not “get a pass on water conservation” or forced curtailment. The statement said the business surcharges have raised $6 million a year.

It is wrong to suggest industry isn’t helping, said Bob Paulison, executive director of the Coastal Bend Industry Association. Companies have stopped landscaping, they recycle water for essential cooling needs and they are looking for alternative water sources, he said.

The city hasn't imposed extra costs on anyone yet.

But Zanoni said water rates may eventually double as the city invests roughly $1 billion on infrastructure — costs that some argue will disproportionately benefit industry and make life for residents more expensive.

What's the way out?

The city is in a water emergency when it has 180 days before water supply can't keep up with demand. Officials have run through different scenarios for getting new water and the drought easing, and have said an emergency could come as early as May, as late as October, or not at all.

The city has tapped into millions of gallons of new groundwater, and it hopes to get even more.

The biggest unknown is the Evangeline Groundwater Project, which involves a pipeline and about two dozen wells that could add enough water to head off an emergency. It still needs state approval but the city hopes water could be flowing as soon as November. New sources come with drawbacks – some have raised water quality concerns, and there are worries too much pumping could deplete groundwater.

If the city has to declare a water emergency, it would be able to more aggressively curtail water use – mandatory reductions that would apply evenly to all industry and residents. That is a sensitive decision and is likely to be a “knock-down drag-out bloodbath,” Loeb said.

Because residents on average have already reduced their water use, future mandatory cuts are likely to fall heavier on industry.

“It’ll be an unbelievable disaster,” said Don Roach, former assistant general manager of the San Patricio Municipal Water District that has lots of industrial customers in the area. “When you cut the cooling water off to most of these industries, they just have to shut down. There’s no other way around it.”

Paulison said companies that produce fuel, polymers, iron and steel “have the least amount of flexibility in just cutting water usage.” He added, however, that companies remain optimistic they can reduce usage, adapt and continue operations.

Zanoni said the city's plans should buy time to avert the worst.

“We are hoping we don’t get there, but we don’t work on hope,” he said.

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.”

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