It's all about the money — or lack thereof. Photo by Natalie Harms/EnergyCapital

Houston has a ton of potential to be a major hub for hydrogen — but who's to pick up the tab on the progress that is needed to advance the alternative energy source? A panel at a recent event sat down to talk it out.

The Hydrogen Technology Expo, a two-day conference at NRG Center last week, brought in dozens of companies and hundreds of attendees to Houston to discuss the most pressing topics of the energy transition. One panel — moderated by Brett Perlman, CEO of the Center for Houston's Future — looked specifically at the challenges for the hydrogen economy.

The biggest challenge: Money. Perlman starts the conversation asking panelists if Wall Street is showing up to back hydrogen projects.

"Everyone talks about investing in hydrogen, and very few people actually do it," says Sean Shafer, managing partner of Energy and Industrial Advisor Partners, "outside of the big strategics and some technology plays — electrolyzers, fuel cells, and stuff like that."

Timing is an issue, adds Brian Hodges, partner at Aurum Capital Connect. Hodges, who previously was at Bank of America, saw first hand the money that a bank was willing to put into clean energy and decarbonization. But, when presenting options to deploy this funding, Hodges hears a familiar refrain — it's too early, it's too small, the pieces aren't in place yet.

"There is a gigantic pool of capital out there — whether its traditional banks, financial institutions, sovereign wealth funds," he says. "Literally everyone and their dog is interested in the space. ... We're right on the cusp of this, but when you look at Europe, they're 10 years ahead of us."

And that decade of experience is what attracts more funding, Hodges says. And it's not just Europe when it comes to markets getting ahead. Texas can't compete with the likes of California, says Roxana Bekemohammadi, founder and executive director of US Hydrogen Alliance, especially when it comes to policy. The state has had legislation addressing zero-emission vehicles since 1989.

"California policies are unique beasts, and I like to explain this because it's really important when I talk to other state legislators," Bekemohammadi says, explaining that the state mandates action and has larger teams to put policy into place. "You're looking at such a mature industry, if you want to call it an industry, but it's really a policy institution."

The panelists agree on the obstacle of policy. Tanya Peacock, managing director of EcoEngineers, works directly with project developers looking for financing and investment funds and financiers looking for projects.

"Everybody is waiting for the guidance on the IRA 45V Production Tax Credit," she says. "I think that's really the game changer for the industry, but the uncertainty around how the credit is going to be implemented is what's holding back a lot of the investment at the moment."

Texas doesn't have state incentives, Shafer points out, but the work is easy to get done with the workforce in the region, so that's also a missed opportunity. Some other factors, he adds, include offtake and lack of debt providers. He says the demand hasn't been established yet to provide a good opportunity for offtake negotiations — it's a chicken and egg problem. Meanwhile, project finance tends to have a debt provider involved, but there aren't providers willing to underwrite debt hydrogen projects.

"One of the other big things is there seems to be a lack of middle capital to get smaller companies to get their projects more backed," Shafer continues his list. "People want to write the big checks. They don't want to write the small checks — and I think one of the reasons is they don't want to lose all their capital. There's no downside protection in this industry."

Perlman, who addressed the crowd in a presentation about Texas as a hydrogen hub earlier in the day, remains bullish on the city's future in the space. Last year, CHF and several other organizations worked together to create the plan for the HyVelocity Hub — and a pitch to receive U.S. Department of Energy Regional Clean Hydrogen Hub funding to make it a reality.

"What we want to do in Texas is jumpstart the market," Perlman says, adding that HyVelocity can help accomplish this goal. "This market can happen in Texas because we are the right place with the right resources. ... What we need to do as an industry is accelerate development."

Ad Placement 300x100
Ad Placement 300x600

CultureMap Emails are Awesome

Houston Methodist leader on the push for sustainable health care and new local event

Q&A

Every industry can play a role in the energy transition, and Houston Methodist is leading the charge in the health care sector.

Culminating at this week’s inaugural Green ICU Conference, part of Houston Energy and Climate Startup Week, the health care system has spent the last three years taking a closer look at its environmental footprint—and showing other hospital systems and medical organizations how they too can make simple changes to reduce emissions.

The event, held tomorrow, Sept. 17, at TMC Helix Park, will bring together health care professionals, industry leaders, policymakers and innovators to explore solutions for building a more sustainable healthcare system.

In an interview with EnergyCapital, Dr. Faisal N. Masud, medical director of critical care at Houston Methodist and a champion for sustainability efforts across the system, shares the inspiration behind the event and what attendees can expect to take away.

Tell us about how the Green ICU Conference came to be.

Houston Methodist’s inaugural Green ICU conference is about three years in the making. It originated because Houston Methodist recognized the significant impact health care has on sustainability and the lack of similar initiatives in the U.S.

The Center for Critical Care at Houston Methodist launched a sustainability-focused ICU initiative, published a roadmap and became involved in international efforts to develop guidelines that many other organizations now use. Our work led to the creation of the first Green ICU Collaborative in the country, and the Green ICU Conference was established to share best practices and address the global impact of critical care on the environment.

What were some of the biggest takeaways from the collaborative, and how are they represented in this new event?

Through the Green ICU Collaborative, we’ve seen that health care professionals can make a significant impact on sustainability through simple, practical changes, and many solutions can be implemented without major costs or compromising patient care. Additionally, there’s a strong link between environmental stewardship and patient safety and quality. These lessons will be represented in the new Green ICU Conference by showcasing easy-to-adopt best practices, emphasizing the importance of sustainability in daily health care operations, and fostering a sense of shared responsibility among attendees to improve both patient outcomes and environmental impact.

Why are ICUs considered to be such carbon hot spots?

ICUs are considered carbon hot spots because they care for the sickest patients, requiring intensive therapies, numerous medications and a large amount of equipment, such as ventilators and pumps. This makes them the most resource- and energy-intensive areas in a hospital. A single day in the ICU can have a greenhouse gas impact equivalent to driving a car 1,000 kilometers.

The U.S. health care sector is responsible for approximately 8.5 percent of greenhouse gas emissions, and hospitals are the second-most energy-intensive commercial buildings in the country. With the Texas Medical Center being in the heart of Houston, it’s critical that health care organizations play a role in this area.

That’s why the Center for Critical Care launched a system-wide Green ICU Initiative with the Houston Methodist Office of Sustainability to help reduce our carbon impact and waste while continuing to provide unparalleled patient care. Innovation is part of our culture, and that extends into our sustainability efforts. Houston Methodist’s Green ICU initiative is the first-of-its-kind in the U.S.

What efforts has Houston Methodist taken to cut emissions?

The first step to cutting emissions is measuring an organization’s carbon footprint to determine the best path forward. Houston Methodist’s Office of Sustainability has aggregated two years of baseline emissions data pending third-party validation. The hospital has taken several steps to cut emissions, including implementing composting programs, installing solar panels, improving energy utilization and participating in global plastic recycling initiatives. These efforts are part of a broader commitment led by our Office of Sustainability to reduce the hospital’s environmental footprint.

Tell us a little more about the event. Who should attend? What do you expect to be some of the highlights?

The Green ICU Conference, taking place during Houston Energy and Climate Week, is focused on health care sustainability, bringing together health care professionals, engineers, experts and anyone interested in reducing health care’s environmental impact. With participants and speakers from six countries, the conference brings together leading experts who aim to raise awareness, share best practices and offer practical, easy-to-adopt solutions for making health care more sustainable.

Highlights include perspectives from leading voices in health care sustainability, real-world examples of successful sustainability initiatives and opportunities for networking and collaboration. Anyone interested in health care, sustainability,or making a positive impact in their community should consider attending.

And, because of increasing interest, we’ve opened up the opportunity for attendees to join virtually at no cost or in person.

What do you hope attendees take away? What are your major goals for the event?

The main goals of hosting the Green ICU Conference for the first time are to raise awareness about the environmental impact of health care; engage and empower attendees to implement easy, practical sustainability solutions; and foster a sense of shared community and responsibility.

I hope attendees leave the event feeling motivated and equipped to make meaningful changes in their own practices, whether that’s improving patient care, supporting their colleagues, or leaving their organization and environment in a better place for future generations.

Texas House Democrats urge Trump administration to restore $250M solar grant

solar grants

Eight Democratic members of the U.S. House from Texas, including two from Houston, are calling on the Trump administration to restore a nearly $250 million solar energy grant for Texas that’s being slashed by the U.S. Environmental Protection Agency (EPA).

In a letter to Lee Zeldin, head of the EPA, and Russell Vought, director of the federal Office of Management and Budget (OMB), the House members urged the two officials to reinstate the nearly $250 million grant, which was awarded to Texas under the $7 billion Biden-era Solar for All program. The Texas grant was designed to assist 28,000 low-income households in installing solar panels, aiming to reduce their energy bills.

“This administration has improperly withheld billions in congressionally appropriated funding that was intended to benefit everyday Americans,” the letter stated.

The letter claimed that numerous court rulings have determined the EPA cannot repeal already allocated funding.

“Congress made a commitment to families, small businesses, and communities across this country to lower their utility bills and reduce harmful pollution through investments in clean energy. The Solar for All program was part of that commitment, and the EPA’s actions to rescind this funding effectively undermine that congressional intent,” the House members wrote.

The six House members who signed the letter are:

  • U.S. Rep. Sylvia Garcia of Houston
  • U.S. Rep. Al Green of Houston
  • U.S. Rep. Greg Casar of Austin
  • U.S. Rep. Jasmine Crockett of Dallas
  • U.S. Rep. Lloyd Doggett of Austin
  • U.S. Rep. Julie Johnson of Dallas
  • U.S. Rep. Marc Veasey of Fort Worth

The nearly $250 million grant was awarded last year to the Harris County-led Texas Solar for All Coalition.

In a post on the X social media platform, Zeldin said the recently passed “One Big Beautiful Bill” killed the Greenhouse Gas Reduction Fund, which would have financed the $7 billion Solar for All program.

“The bottom line is this: EPA no longer has the statutory authority to administer the program or the appropriated funds to keep this boondoggle alive,” Zeldin said.