INPEX Corp. and Green Hydrogen International have agreed to a Joint Study Agreement to advance a South Texas hydrogen production facility called "Hydrogen City." Photo via Getty Images

An oil and gas exploration and production company has signed on to collaborate on a green hydrogen project in Texas to keep up with growing global market demand.

INPEX Corp. and Green Hydrogen International have agreed to a Joint Study Agreement to advance a South Texas hydrogen production facility called "Hydrogen City." The project's first phase will produce 280,000 tons per year of green hydrogen and 1 million tons per year of green ammonia. Construction is slated to begin in 2026 with commercial operation expected in 2029.

INPEX's "unparalleled expertise in large energy project development combined with a world-class marketing organization will provide enormous advantages to the Hydrogen City project and our goal of producing the world's lowest-cost green hydrogen by 2029," Brian Maxwell, CEO of GHI, says in a news release.

The partnership brings together both entities' expertise, with INPEX's experience developing large scale energy projects and marketing LNG to international customers. Meanwhile, GHI uses salt cavern storage and behind-the-meter renewable power to produce low-cost green hydrogen.

"I am excited to announce this green hydrogen project in Texas, which exemplifies our unwavering commitment to environmental leadership and innovation," INPEX Representative Director, President, and CEO Takayuki Ueda says in the release. "INPEX's dedication to a brighter, greener future remains steadfast, and this endeavor in Texas marks a pivotal step in our vision for a more sustainable tomorrow."

INPEX is also a part of a large-scale, low-carbon ammonia production and export project on the Houston Ship Channel that was anounced ealier this month.

Hydrogen City, located in South Texas atop the Peidras Pintas Salt Dome, was originally announced in March 2022. There will be a 75 mile pipeline from Hydrogen City to Corpus Christi, supplying a 1 Million Tonne Per Annum (MTPA) ammonia production facility and local off-takers.

Image via ghi-corp.com

The project’s first phase is targeted to produce more than 1.1 million tonnes per annum of low-carbon ammonia by the end of 2027. Photo via Houston.org

4 energy companies join forces on low-carbon ammonia project on the Houston Ship Channel

team work

Four companies from all around the world have agreed to work on a large-scale, low-carbon ammonia production and export project on the Houston Ship Channel.

Tokyo-based INPEX Corporation, Paris-based Air Liquide Group, Oklahoma City-based LSB Industries Inc., and Houston-based Vopak Moda Houston LLC have agreed to collaborate on the project, which is expected to deliver its first phase by the end of 2027 with the production of more than 1.1 million tonnes per annum (MTPA) of low-carbon ammonia.

“As we approach the achievement of our net zero target by 2050, the unveiling of our low carbon ammonia project in Texas, USA, stands as a momentous testament to INPEX's strong commitment to environmental leadership," INPEX President and CEO Takayuki Ueda says in a news release. "This innovative endeavor marks a significant milestone to create a clean fuel supply chain for a sustainable future.

"By harnessing the power of cutting-edge technologies and collaborative partnerships with Air Liquide, LSB and Vopak Moda, we are accelerating the transition to a low-carbon world, while solidifying our position as a pioneer in energy transformation and a responsible global energy player,” he continues.

Earlier this year, the project completed a feasibility study. Each of the companies will collaborate in various capacities, according to the release, including: Air Liquide and INPEX partnering on low-carbon hydrogen production with their respective technologies; LSB and INPEX collaborating on low-carbon ammonia production, with LSB selecting the ammonia loop technology provider, the pre-FEED, and the engineering, procurement and construction of the facility and LSB overseeing day-to-day operations; INPEX and LSB would sell the low-carbon ammonia and finalize off-take agreements; and Vopak Moda, which currently operates ammonia storage and handling infrastructure, will maintain its ownership of the existing infrastructure and future storage built.

“This project is well aligned with our strategy to become a leader in the global energy transition through the production of low-carbon ammonia,” Mark Behrman, LSB Industries president and CEO, says in the statement. “As a long-standing, highly experienced nitrogen producer and developer of nitrogen production facilities, we are uniquely positioned to play a key role in a critical element of this project by overseeing the design, construction and operation of the ammonia loop."

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How Mitsubishi Heavy Industries America is advancing the hydrogen economy

The View from HETI

Mitsubishi Heavy Industries America (MHIA), a steering-level member company of the Houston Energy Transition Initiative, is leveraging engineering expertise and global capabilities to develop and deploy technologies that will decarbonize existing infrastructure and build the hydrogen economy of the future. The company’s recent investment in Koloma, a Colorado-based geologic hydrogen exploration startup, demonstrates its commitment to breakthrough innovations that can transform how the world produces and uses clean energy.

Traditional hydrogen production methods, whether from natural gas with carbon capture or from electrolysis using renewable electricity, require significant energy inputs and infrastructure investments. Geologic hydrogen represents a potentially transformative alternative: naturally occurring hydrogen deposits that can be extracted from underground reservoirs.

Koloma is pioneering the exploration and commercialization of geologic hydrogen using proprietary technology, unique data sets, and specialized expertise to identify and develop these resources globally. If successful at scale, geologic hydrogen could provide clean, affordable hydrogen without the energy penalty of production.

MHIA’s investment in Koloma joins a syndicate of strategic partners committed to accelerating hydrogen development:

  • Breakthrough Energy Ventures: Bill Gates’ climate investment fund focused on breakthrough technologies
  • Amazon’s Climate Pledge Fund: Supporting technologies that enable Amazon’s path to net zero
  • United Airlines’ Sustainable Flight Fund: Investing in solutions for aviation decarbonization

This partnership brings together technology innovation, capital, and potential customers to create the ecosystem needed to move from exploration to commercial deployment.

MHIA’s investment in geologic hydrogen is part of the company’s broader strategy to develop the complete hydrogen value chain:

Production: Beyond geologic hydrogen, MHIA is advancing technologies for hydrogen production from diverse sources, including natural gas with carbon capture and renewable-powered electrolysis.

Infrastructure: The company is developing the compression, storage, and transportation systems needed to move hydrogen from production sites to end users.

End-Use Applications: MHIA’s expertise spans power generation, industrial processes, and transportation applications that can utilize hydrogen as a clean fuel.

Integration: The company is working to integrate hydrogen systems with existing infrastructure, enabling decarbonization without requiring complete infrastructure replacement.

While new technologies like geologic hydrogen offer exciting possibilities, MHIA recognizes that much of the world’s energy infrastructure will continue operating for decades. The company is also investing in technologies that decarbonize existing systems:

  • MHIA is developing and deploying carbon capture systems that can be retrofitted to existing power plants and industrial facilities, allowing them to continue operating while dramatically reducing emissions.
  • The company’s gas turbine technologies can operate on blends of natural gas and hydrogen, enabling progressive decarbonization as hydrogen availability increases.
  • Through advanced controls, materials, and designs, MHIA is improving the efficiency of existing infrastructure—reducing fuel consumption and emissions without requiring replacement.

MHIA’s approach to the energy transition is guided by a clear mission: develop innovative technologies that help achieve a decarbonized society while maintaining energy security and affordability. This mission recognizes several important realities:

Energy Access Matters: Billions of people still lack access to reliable, affordable energy. Solutions must scale globally and work across diverse economic contexts.

Existing Infrastructure Represents Enormous Investment: The world has trillions of dollars invested in energy infrastructure. Solutions that work with this infrastructure can deploy faster than those requiring complete replacement.

Multiple Pathways Are Needed: No single technology will solve the climate challenge. Success requires parallel development of multiple solutions—hydrogen, carbon capture, renewables, nuclear, efficiency, and others.

Speed Matters: Climate change is a time-sensitive challenge. Technologies that can deploy at scale in the 2020s and 2030s matter more than perfect solutions that might be available in the 2040s or 2050s.

From Technology to Impact

MHIA’s investment in Koloma reflects the company’s belief that breakthrough technologies require patient capital, technical expertise, and strategic partnerships to move from concept to commercial reality. Geologic hydrogen has the potential to provide clean, affordable hydrogen at scale—but only if exploration techniques are validated, production methods are proven, and commercial models are demonstrated.

By investing early and providing both capital and technical support, MHIA is helping to accelerate this timeline. If Koloma succeeds, the impact could extend far beyond a single project and could unlock a vast new resource for the global energy transition.

The energy transition requires engineering excellence, patient capital, and willingness to back breakthrough innovations before they’re fully proven. Through HETI member companies like Mitsubishi Heavy Industries America, Houston is demonstrating the leadership, technical capabilities, and strategic vision needed to build a hydrogen economy that can help decarbonize the world’s energy system.

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This article originally appeared on the Greater Houston Partnership's Houston Energy Transition Initiative blog. Learn more about MHIA’s energy transition initiatives at MHI Group Sustainability and read the full analysis here.

Energy expert: Houston welcomed the world — can Texas power what's next?

guest column

For a few weeks this summer, Houston welcomed the world.

The FIFA World Cup 2026 showcased our city's ability to host one of the largest international events on the planet. Millions watched from around the globe while hundreds of thousands of visitors experienced firsthand what Houston has become: a world-class destination for business, culture and global events.

But once the final match is played and the visitors return home, a more important question remains: Can Texas build the energy infrastructure needed to power what comes next?

The World Cup wasn't the finish line. It was a glimpse into the future.

That future is being shaped not only by population growth, but also by artificial intelligence, hyperscale data centers, advanced manufacturing, electrification, LNG expansion and continued industrial investment. Together, these forces are creating an unprecedented demand for electricity and placing new expectations on the infrastructure that supports it.

Energy Has Become Economic Infrastructure

For decades, economic development centered around highways, ports, airports and workforce.

Today, another asset has moved to the top of that list: energy infrastructure.

Reliable electricity is no longer simply a utility service. It has become a competitive advantage.

Companies evaluating where to build the next AI campus, manufacturing facility or industrial complex are increasingly asking different questions. How quickly can power be delivered? Is there enough transmission capacity? Can substations support future expansion? Is water infrastructure available? What is the long-term reliability of the local grid?

These questions are becoming just as important as tax incentives and available real estate.

Recent comments from Governor Greg Abbott that future AI developments should provide their own power generation and water illustrate just how dramatically the conversation has evolved. The challenge is no longer limited to meeting today's demand. It is preparing for a future where entirely new industries require unprecedented amounts of electricity while ensuring existing homes and businesses continue to receive reliable, affordable service.

The Next Energy Race Has Already Begun

Texas remains the nation's energy leader, producing more electricity than any other state while continuing to expand natural gas, wind, solar and emerging technologies.

But leadership in the next decade will be measured differently.

Success will depend on how quickly we can expand transmission infrastructure, modernize distribution systems, accelerate interconnection, strengthen grid resilience and support new generation where economic growth is occurring.

The conversation has shifted from producing more electricity to delivering it smarter.

That requires planning years before demand arrives.

Houston Is the Proving Ground

Houston sits at the center of this transformation.

Already recognized as the Energy Capital of the World, the region continues attracting major employers, global headquarters, industrial expansion and technology investment. The Port of Houston continues to grow. Advanced manufacturing is expanding. AI companies are evaluating Texas alongside other national markets.

Every one of these investments depends on reliable infrastructure.

While the World Cup demonstrated Houston's ability to manage a temporary surge of visitors, the more significant challenge lies ahead. Permanent economic growth creates sustained electricity demand that cannot be addressed with temporary solutions.

Meeting that demand will require coordinated investment across generation, transmission, distribution, storage and increasingly, digital technologies capable of forecasting and managing electricity in real time.

Smarter Infrastructure for a Smarter Grid

The future electric grid will look very different from the one that built modern Texas.

Artificial intelligence, predictive analytics, advanced sensors and distributed energy resources will allow operators to anticipate demand, identify equipment failures before they occur and optimize energy delivery across increasingly complex networks.

Infrastructure is no longer simply about building more. It is about building smarter.

At the same time, resilience must remain central to every investment. Texans understand better than most that hurricanes, flooding, winter storms and prolonged heat waves are no longer rare events. Modern infrastructure must not only support growth but also withstand increasingly volatile weather.

Building Beyond the Headlines

The World Cup generated headlines because of what happened on the field.

Its lasting legacy may be what it revealed about the city beyond the stadium.

Houston demonstrated that it can host the world. The next challenge is ensuring it can continue to power one of the fastest-growing economies in North America.

That will require continued investment, thoughtful policy and long-term planning that recognizes energy infrastructure as essential economic infrastructure.

Texas has spent decades leading the world in energy production.

The next opportunity is even greater.

To become the global leader in how energy systems are planned, built and operated for a future defined by artificial intelligence, industrial growth and rapidly evolving consumer demand.

Because the cities that lead tomorrow won't simply generate the most energy.

They'll be the ones best prepared to deliver it where opportunity is growing.

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Sam Luna is director at BKV Energy, where he oversees brand and go-to-market strategy, customer experience, marketing execution, and more.

Houston company lands first deal from new Blackstone energy transition fund

M&A activity

Asset manager Blackstone has agreed to buy Houston-based Dresser Utility Solutions from Connecticut private equity firm First Reserve for an undisclosed amount. First Reserve has a major presence in Houston.

The deal represents the first investment from Blackstone Energy Transition Partners V.

“Blackstone’s deep resources and experience in the utility sector make them an ideal partner as we continue to invest in innovation, expand our product portfolio, and deliver value for our customers,” Dresser CEO David Evans said in a news release.

Founded in 1880, Dresser provides metering technology, digital instrumentation and software, pressure and flow controls, and infrastructure repair products for gas and water utilities and industrial customers. The company employs about 850 people worldwide.

“As demands on the energy grid continue to grow, Dresser plays a critical role as a trusted partner to utilities managing essential infrastructure. The company’s products are foundational to the safe and reliable operation of gas and water networks, and its reputation for quality has helped build longstanding customer relationships,” David Foley, global head of Blackstone Energy Transition Partners, and JP Munfa, senior managing director, said in the release.

Blackstone Energy Transition Partners has invested more than $28 billion across the energy transition sector. New York-based Blackstone closed Blackstone Energy Transition Partners Fund IV at $5.6 billion in February 2025. Blackstone Energy Transition Partners Fund III closed in 2020 for $4.4 million, according to Pitchbook.

Other notable energy transition investments from Blackstone funds include Salt Lake City-based Energy Exemplar, French electronics manufacturing company Sediver, Plano-based Westwood Professional Services and others.

Two years ago, Dresser secured a $335 million credit facility from funds managed by asset manager Blue Owl Capital. At the time, Dresser said the money would go toward capital expenses, acquisitions and corporate needs.

This is the second notable investment Blackstone has made in a Houston-based energy company in recent months. In May, Blackstone and energy heavyweight Halliburton made a $1 billion equity investment in Houston power generation startup VoltaGrid, which provides behind-the-meter mobile power generation equipment for data centers, microgrids and industrial customers.