M&A moves, innovative water co. expands, and more trending Houston energy transition news

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An innovative water production company has plans to create Houston-area plants — and more trending Houston energy transition news. Photo via skyh2o.com

Editor's note: It's been a busy news week for energy transition in Houston, and some of this week's headlines resonated with EnergyCapital readers on social media and daily newsletter. Trending news included a unique water-producing company expanding in Texas new deals and partnerships, and more.

Innovative California company taps Houston area for purified water projects

A California tech company is planning on rolling out a handful of atmospheric water generation projects near Houston. Photo via skyh2o.com

Houstonians are used to filtering their water, but few really ponder why they’re doing it.

“Most people, when they think about water stress, they think about water scarcity, like what you see happening in Northern Africa or maybe the Southern U.S.,” says Alexander von Welczeck, chairman, president and CEO of SkyH2O. “A bigger, creeping issue, particularly in the industrialized world, is water toxicity.”

Some Houston tap water contains “forever chemicals” that can be toxic, as some reports have found. In fact, says von Welczeck, water toxicity is a problem across the Gulf Coast. That’s why the California-based businessman has identified Houston as the first region to benefit from SkyH2O’s technology. Read more.

Houston company closes offshore JV deal to drive innovation, efficiency in subsea production

The new joint venture, OneSubsea, is based in Oslo, Norway, and Houston. Photo courtesy

A new joint venture with co-headquarters in Houston will explore opportunities in the market for subsea systems that tap into offshore energy reserves.

The business, called OneSubsea, is a joint venture of Houston-based energy technology company SLB (Schlumberger), Norwegian energy engineering company Aker Solutions, and Luxembourg-based energy engineering company Subsea7. SLB holds a 70 percent stake in OneSubsea, with Aker’s share at 20 percent and Subsea7’s share at 10 percent.

The financial foundation of the joint venture is a combination of $700.5 million in stock, cash, and a promissory note. In addition, SLB and Aker folded their subsea businesses into the joint venture, which was announced in 2022. Read more.

Clean tech co. with U.S. HQ selected for UAE carbon capture project

Carbon Clean develops carbon capture technology for customers such as cement producers, steelmakers, refineries, and waste-to-energy plants. Photo via Carbon Clean

Abu Dhabi National Oil Co. (ADNOC), the state-owned oil company of the United Arab Emirates, has chosen technology from United Kingdom-based company Carbon Clean for a carbon capture project in Abu Dhabi. Carbon Clean’s U.S. headquarters is in Houston.

Carbon Clean’s modular CycloneCC technology will be used for a carbon capture project at a Fertiglobe nitrogen fertilizer plant. Fertiglobe is a joint venture between ADNOC and OCI Global, a Netherlands-based chemical company.

“This project is hugely significant given it’s the first industrial deployment of our award-winning CycloneCC technology anywhere in the world,” says Aniruddha Sharma, chairman and CEO of Carbon Clean. “We are moving a step closer to achieving full commercialization of this modular solution, which will play a vital role in decarbonizing heavy industries and achieving net-zero targets.” Read more.

Houston carbon storage solutions company names new energy transition leader at pivotal time of growth

Graham Payne, the new director of energy transition at Caliche Development Partners II, is bullish on Houston. Photo courtesy

Graham Payne sees a bright future for the multibillion-dollar energy transition economy in Houston.

“It’s been said that Houston is poised, like no other city, to lead the energy transition. And I’d have to agree, because we have all the requisite natural resources, industry, and talent,” says Payne, the new director of energy transition at Houston-based carbon capture, utilization, and storage (CCUS) company Caliche Development Partners II.

Caliche and other Houston-based energy transition companies secured $6.1 billion in private funding last year, up 62 percent from 2022, according to the Greater Houston Partnership. Read more.

Airline fuels up for new flights from Houston to oil-and-gas country

It's wheels up to Midland-Odessa in January. Photo courtesy of JSX

Hop-on jet service JSX is adding a new, year-round destination for the millions of Texans who work in oil and gas: Midland-Odessa.

Starting January 15, 2024, JSX will fly nonstop from Houston and Dallas to Odessa Airport-Schlemeyer Field (ODT). Read more.

A California tech company is planning on rolling out a handful of atmospheric water generation projects near Houston. Photo via skyh2o.com

Innovative California company taps Houston area for purified water projects

PFA-free H2O

Houstonians are used to filtering their water, but few really ponder why they’re doing it.

The company will break ground on its first SkyH2O Station in the first quarter of 2024 in Dickinson, strategically placed between Houston and Galveston. That will be followed by another in Angleton. Eventually, says von Welczeck, there will be eight SkyH2O stations in the greater Houston area.

Von Welczek describes a SkyH2O Station as bearing a resemblance to “a big, modern gas station, but as opposed to gas, the primary product is fresh, healthy water.” With everything from charging stations for electric vehicles to a farmers market-style set-up of sustainable food, the stations will indeed be like a futuristic gas station.

Water will be distributed both in recyclable packaging for smaller businesses and homes, and in bulk to fill water tankers for ranches and other larger customers. Von Welczeck foresees, for example, Galveston cruise ships filling up with a supply of water at that station.

But where will this fresh, clean water come from? SkyH2O uses atmospheric water generation, or AWG, systems to pull humidity from the air and turn it into potable water. The higher the humidity, the more water can be produced.

“Obviously in and around Houston, we have tremendous humidity,” von Welczeck says.

This is all done using the Maximus 4260, the latest and greatest of the company’s AWG systems. The machine is rated to produce 10,500 litres of fresh, potable water a day. It produces net zero water, meaning that it doesn’t come from any existing water resource.

What comes out initially is a semi-distilled, purified water. The next step is further filtering it and adding minerals to make the product potable for customers. Von Welczeck says that SkyH2O’s water meets the Texas Commission on Environmental Quality’s water standards.

The serial entrepreneur has been working in the climate tech space since 2002 and has a proven track record. Von Welczeck says that he sold his company, Solar Power Partners, to NRG in 2010.

“From my perspective, most everything in climate technology, whether it's clean energy, recycling, even food and water, they're all interrelated,” he says.

After opening around 20 Texas locations, von Welczeck has his sights set on covering the entire Gulf Coast. After that, he hopes to expand to Mediterranean Europe, particularly water-strapped islands. He’s even in discussions with potential clients in the Middle East. But Houston will be the first to taste SkyH2O’s potentially globe-altering water.

Meet the new arrivals at Greentown Houston. Photo courtesy of Greentown Labs

9 startups join Houston climatech accelerator to tackle carbon capture, energy efficiency, and more

FRESH CROP

Greentown Labs closed out the second quarter with the addition of 17 startups, and just over half are collaborating with the Houston location.

The technology represented by the new additions span the industries of energy, agriculture, and manufacturing, with a focus on carbon capture, electrical usage efficiency, and resource accessibility.

Carbon capture

Two of the newest Houston members, Capture6 and C-Quester, are also part of the Carbon2Value Initiative, a global partnership between the Greentown Labs, Urban Future Lab in New York, and Fraunhofer, headquartered in Michigan. C2V focuses on accelerating technology solutions that capture carbon dioxide for conversion into value-adding products and services.

Similar to the way a sponge is moistened and later wrung out, C-Quester pulls CO2 from flue gas into a temperature-sensitive material that can be heated later to release carbon, making the storage and transport of CO2 easier to manage.

Capture6 uses CO2 pulled from the atmosphere through their Direct Air Capture technology in combination with water treatment methodologies to remove excess salinity from saltwater and brine, resulting in greater freshwater recovery, usable elements for a variety of industries, and carbonates transformed into mineralized form to prevent continued carbon emissions.

Energy efficiency

The Helix MICRA filters created by Helix Earth Technologies can remove CO2 from power plants and other pollutants commonly encountered in the shipping industry. The filtering technology, initially developed for NASA, also dehumidifies air conditioning systems for more efficient energy use.

H2PRO uses its water-splitting technology, E-TAC, to produce green hydrogen in a two-step process that requires less energy to perform than the more common process of electrolysis with improved safety aspects.

Steam production and distribution get an upgrade with Imperium Technologies, the first electromechanical solution that enables previously unseen systems monitoring for reduction in greenhouse gas emissions by 20%, on average.

With a keen focus on predictive insights, eologix deploys smart sensors to give operators advance warning of situations that could cause rotor imbalances to keep wind turbines – and the energy they produce – optimized.

Resource accessibility

NW NA supports the goals of stability, predictability, and accessibility of electric-powered vehicle use with its high-power EV-charging station, mobile electricity storage units, and renewable energy measurement and forecasting tool.

From the Metaversity under development, to its oil and gas line leak detection systems, Kauel goes all-in on AI for its clients, even helping children with kinesthetic rehabilitation through augmented and virtual reality programs.

Finally, SkyH2O brings fresh, clean water to areas with limited access to existing infrastructure or natural water resources for commercial, military, and industrial use.

Another eight startups join the cohort named above as members of the Greentown Labs Boston location: Capro-X, Carbon2Stone, Cottage, Dioxycle, enaDyne, Global Algae Innovations, Terrafixing, and Thola.

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Italian clean energy co. selects The Woodlands for North American HQ

new HQ

An Italian renewable energy company has picked The Woodlands for its North American headquarters.

AB Energy USA will occupy about 11,000 square feet in The Woodlands Towers at The Waterway. The company expects to add about 45 jobs in The Woodlands this year. Beginning in 2027, AB Energy USA will add another 30 jobs over a five-year period.

The new headquarters will be the corporate and governance hub for all of AB Energy’s North American subsidiaries. AB Energy, an arm of Italy-based AB, supplies renewable natural gas systems for industrial, commercial and data center customers. AB has operated in the U.S. since 2014.

“Establishing our North American headquarters in the Energy Capital of the World is a strategic step in AB’s long-term commitment to the U.S. market,” Paolo Ruggeri, North American CEO for AB Energy USA, said in a news release. “Houston gives us access to world-class engineering and energy talent, and strengthens our ability to attract and grow a high-performing team.”

Jevon Gibb, CEO of The Woodlands Area Economic Development Partnership, said several markets competed for AB Energy’s North American headquarters.

“AB’s decision to establish its North American headquarters here demonstrates The Woodlands’ competitiveness for both international companies and energy sector leaders,” Gibb said.

40+ teams to pitch at annual CERAWeek clean energy competition

energy venture day

The Rice Alliance for Technology and Entrepreneurship, the Houston Energy Transition Initiative (HETI), the Texas Entrepreneurship Exchange for Energy (TEX-E) and the Ion have named the 30-plus energy ventures and teams that will pitch at the 2026 Energy Venture Day and Pitch Competition during CERAWeek this month.

The selected ventures are "driving efficiency and advancements toward the energy transition," according to the Rice Alliance. Each will each present a 3.5-minute pitch before a network of investors and industry partners during CERAWeek's Agora program on Wednesday, March 25, from noon-5:30 p.m.

The competition is divided up into the TEX-E university track, in which Texas student-led energy startups compete for $50,000 in cash prizes, and the industry ventures track.

Teams competing in the TEX-E Prize track include:

GOES
Quantum Power System
Quas
Resonant Thermal Systems
Srijan

The industry track is subdivided into three additional tracks, spanning materials to clean energy and will feature 37 companies. A group of expert judges will name the top three companies from each industry track. The winner of the CERAWeek competition will also have the chance to advance and compete for the $1 million investment prize at the Startup World Cup in November 2026.

Teams come from around the world, including several Houston-based ventures, such as Agellus Tank Robotics, Capwell Services and Corrolytics.

The full list of companies pitching at CERAWeek includes:

Agellus Tank Robotics
Airovation Technologies
Anax Power
Armeta
ATS Energy
Capwell Services
CarbonLume
Cogniprise
Corrolytics
Daphne Technology
Gemini Energy
Grid8
H Quest Vanguard
intcom
Ionada Canada
Junipix
Kunin Technologies
LAVA Power
Licube
LNK Energies
Maverick X
Membravo
Mirico
Mocean Energy
Monitorai
OCOchem
Oleo
Pix Force
PolyJoule
Power to Hydrogen
Sotaog
Spotlight
Tierra Climate
Verdagy
Via Separations
Vycarb
ZettaJoule

Those not attending CERAWeek can catch these companies and more than a dozen others at a pitch preview at the Ion. The free Pitch Preview will be held Tuesday, March 24, from 9 a.m.-2:30 p.m. Click here to register.

Additional companies pitching during the free preview include:

Ammobia
Arolytics
Ayrton Energy
ChainWeave
Cybereum
Energytech
ENP Technologies
KP Labs
Mcatalysis
Mitico
Mote
Nanos
New Horizon Oil and Gas
Predyct
Salem Robotics
Toluai

Two Rice University student teams took home top prizes during last year's TEX-E competition, while ventures from New Jersey, Wyoming and Virgina won in their respective industry tracks. See the full list of last year's winners here.

ExxonMobil to move legal home to Texas, citing business-friendliness

ExxonMobil is poised to move its legal headquarters from New Jersey to Texas in search of a more friendly business environment, the company announced March 10.

The board of directors for the largest U.S.-based oil producing company, which already runs its operations from the Houston suburb of Spring, unanimously recommended to its shareholders that they vote to redomicile the company in Texas.

Shareholders will vote on the change at the company’s annual meeting on May 27. If successful, it will move Exxon’s legal home for the first time since it registered in New Jersey in 1882 as Standard Oil Company — the company later changed its name to Exxon, then merged with Mobil Oil Corp.

“Over the past several years, Texas has made a noticeable effort to embrace the business community,” ExxonMobil Chair and CEO Darren Woods wrote in a statement Tuesday. “In doing so, it has created a policy and regulatory environment that can allow the company to maximize shareholder value. Aligning our legal home with our operating home, in a state that understands our business and has a stake in the company’s success, is important.”

The proposed move will not affect the company’s business operations or employee locations, the company said.

ExxonMobil has been headquartered in Texas since 1989, and about 30% of its employees currently work in the state.

The location of a company’s incorporation dictates the legal, tax and regulatory landscape for the business.

Exxon would join Tesla, Space X and Coinbase as major U.S. companies to redomicile in Texas in recent years as the state moves to become more business friendly.

In 2023, the Legislature passed and Gov. Greg Abbott signed a law that created the Texas Business Court and the 15th Court of Appeals, specialized legal venues designed to handle business and commercial disputes. Those courts began operating in 2024.

Last year, the Legislature also approved a law that made it more difficult to sue board members of companies incorporated in Texas.

“Freed from the stranglehold of over-regulation, Texas is where global brand leaders thrive and jobs for hardworking Texans grow,” Abbott wrote in a Tuesday statement. “I thank ExxonMobil for their decision to redomicile in Texas and for their long-standing partnership with our state. With this decision, Texas will further dominate the corporate landscape and ensure our economic growth reaches new heights.”

Exxon noted the creation of the business courts and other recent legal reforms made by Texas in its statement announcing the decision.

“In making its recommendation, the Board considered Texas’ legal and regulatory environment, including its modernized business statutes and the Texas Business Court, which is designed to resolve complex disputes efficiently,” the statement said.

Texas has benefited from growing frustration among company executives with traditional corporate havens of New Jersey and Delaware. New Jersey sued Exxon in 2022, alleging the company contributed to climate change, which forced the state to pay for cleanup after natural disasters. The lawsuit was dismissed last year.

Delaware remains the nation’s top state for U.S. companies’ legal home.

Coinbase’s CEO wrote last year that the company was reincorporating from Delaware to Texas because the Lone Star State’s legal framework is more predictable and efficient. Tesla reincorporated from Delaware to Texas after a 2024 court ruling ordered CEO Elon Musk to give up a compensation package, finding that the package’s shareholder approval process was “deeply flawed.”

___

This story was originally published by The Texas Tribune and distributed through a partnership with The Associated Press.

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