Skip to main content

Day 1 of Future of Global Energy: Houston Has Opportunity and Responsibility to Lead Energy Transition

Published Jun 29, 2021 by A.J. Mistretta

GHPJune2021-5549.jpg

Bobby Tudor presents during the first day of the Future of Global Energy conference

Houston can lure significant investment and hundreds of thousands of new jobs if the region takes decisive action to lead the global energy transition to a low-carbon future. That’s according to a new strategic plan released this week by the Greater Houston Partnership at the Future of Global Energy conference, a three-day event the organization is co-hosting with the Center for Houston’s Future. 

The strategy—Houston: Leading the Transition to a Low-Carbon World—breaks down how Houston can use its expertise and infrastructure in the energy and chemical sectors to accelerate low-carbon solutions. The goal is to position Houston as the leading global hub for energy and clean tech innovation. The strategy will guide the work of the Partnership’s Houston Energy Transition Initiative. 

“The global energy transition can either be viewed as a huge threat or as an extraordinary opportunity for Houston,” said Partnership President and CEO Bob Harvey in opening the conference. “We choose to view this as a tremendous opportunity to enhance the long-term economic future and global competitiveness of Houston.”

Harvey said that Houston has the knowledge base, skill sets, and infrastructure to help guide this work, “and it is simply imperative that we do so.”

Houston Mayor Sylvester Turner, who also spoke at the opening of the conference, referenced the city’s long identity as the Energy Capital of the World. “That title is ours to lose,” Mayor Turner said. “If we move forward in the energy transition in a smart and resilient way, we will stay at the forefront of the energy sector. The City of Houston’s innovation and adaptability will be key as the energy industry diversifies.”

In his keynote address, Bobby Tudor, chair of the Houston Energy Transition Initiative, outlined the elements of the strategy. Tudor, who is also chair of Tudor, Pickering, Holt & Co. LLC, discussed the advantages that will help Houston lead the effort—namely the region’s deep experience and knowledge base in all aspects of the industry as well as its significant existing infrastructure that will enable new technologies and solutions to scale. 

“There is no place in America – and few in the world – that matches Houston for its concentration of energy infrastructure,” Tudor said. See his full presentation here

The strategic plan highlights actions across value chains in three arenas:

  • Jumpstart and scale up emerging carbon-reduction sectors where Houston has a distinct advantage;
  • Focus on attracting and supporting companies in New Energy industries including wind energy, solar power and biofuels, along with advancing the renewable natural gas and low-carbon LNG value chains; and
  • Deploy cross-cutting initiatives to attract and grow companies in additional energy value-chains, ranging from electric vehicle systems to the decarbonization of natural gas and oil, from petrochemicals to nature-based solutions, and from energy efficiency technologies to geothermal energy production.

The plan includes an analysis by McKinsey & Co. that estimates as many as 560,000 jobs could be created by 2050 in the region through the development of low-carbon technologies, new government policies and the reskilling of talent, among other decisive actions. 

“Houston’s energy transition strategy is rooted in the city’s eagerness for innovation; our appetite for high-risk and high-reward business investments; and our capacity for executing on massive, complex projects around the world,” Tudor said. 

Harvey said it’s the Partnership’s responsibility to highlight a path forward for Houston and to help spur the conversations and the work to advance the Houston region. Success on that front will help ensure Houston remains a global city for years to come, he said. 

More than 40 Houston area companies have signed on to a letter of support for the Houston Energy Transition Initiative. See the letter and the signatories to date here. All companies and organizations in the region are invited to join in the commitment. 

Get more details about the Future of Global Energy, presented by Chevron. Learn more about the Houston Energy Transition Initiative and see the full strategic plan

 

Related News

Economic Development

Geothermal Startup Sage Geosystems Highlights Potential for New Energy in Houston

11/12/24
Long known as the energy capital of the world, Houston is proving its merit as the industry embraces an all-inclusive approach to energy sources. Beyond the wealth of oil and gas capital, Houston has become a landing spot for numerous solar, wind and battery storage investments. Companies like Fluence Energy, Renewable Parts and Solar Plus have chosen Houston for its manufacturing of innovative energy products. Geothermal Energy: An Untapped Resource Geothermal energy, often unsung in the new energy landscape, can be found beneath our feet, harnessing the power of heat lying underground. In conventional geothermal power plants, wells are drilled into geothermal reservoirs to access hot water or steam, which is then brought to the surface. This steam is used to drive turbines that generate electricity. Sage Geosystems is changing that by pursuing geothermal potential in rock that is hot but doesn't have the large volumes of water to bring the heat to the surface. Hot, dry rock enables geothermal power generation in many more places as the geology is more prevalent which enables geothermal to now be deployable almost anywhere in the world. Sage Geosystems: Leading Geothermal Innovation Houston is seeing its chance to make a mark with geothermal thanks to companies like Sage Geosystems, founded in 2020 with its headquarters near Bush Intercontinental Airport. Sage works to build the technology that makes this renewable energy a greater force in the worldwide energy transition, engaged in contracts and partnerships with local energy providers, major government agencies like the U.S. Department of Defense (DOD) and hyper-scalers like Meta Platforms. On the public utility side, the company recently partnered with the San Miguel Electric Cooperative to build the first geopressured geothermal system. The technology used can be paired with solar and/or wind to convert these intermittent clean energy sources to 24-hour power generation, or it can be used to move these clean energy sources from a time of day when the demand is low to a time of day when the demand is high, stabilizing the utility grid and helping mitigate the issue of blackouts and brownouts. The facility will be commissioned in December. Sage has three ongoing projects with the DOD. The U.S. Air Force recently provided Sage with $1.9 million in Tactical Funding Increase (TACFI) funding to perform a geothermal demonstration with electricity generation, which will take place in Sage's test well in Starr County, Texas with a targeted completion date of Q3/Q4 2025.  The Defense Innovation Unit (DIU) has funded two geothermal feasibility studies for the U.S. Army installation of Fort Bliss in El Paso and the Naval Air Station CC in Corpus Christi. Sage is performing these feasibility studies with the University of Texas Bureau of Economic Geology. The intent of these studies is to evaluate the technical and economic feasibility of geothermal system installations using Sage's Geopressured Geothermal System (GGS) technology at these two DOD installations. Collaboration Powers Innovation in Houston As evidenced by the above, collaboration plays a central role in the growth of Sage Geosystems. The company has not only partnered with utility companies and major governmental institutions, but also collaborated with the Rice Alliance for Technology and the Greater Houston Partnership to facilitate work with institutions of higher learning like the University of Houston and Rice, venture capital firms, and established energy corporations such as ABB, Chesapeake (now Expand Energy), Nabors, and Geolog. This sense of collaboration is one of the many reasons Sage Geosystems has thrived in Houston, along with the infrastructure, talent and innovative spirit that propels local companies to success. The Houston Advantage for Energy Startups “While Texas is the top energy state in the U.S., Houston is the heart. Houston provides not only access to the O&G industry, but also many utilities and others interested and/or working in energy...The Houston energy ecosystem and the benefits described above will continue to be critical in this scale-up plan." - Sage Geosystems CEO Cindy Taff Looking ahead, Sage is building its first commercial energy storage facility and will be performing a geothermal power generation demonstration with the U.S. Air Force in 2025.  Sage sees Houston as the best place to scale in Texas and throughout the world. "Geothermal energy represents a transformative opportunity for Houston as it further strengthens our position as the global energy capital. Sage Geosystems' innovative approach to harnessing geothermal resources exemplifies the spirit of collaboration, innovation, and commitment to sustainability that defines our region’s energy leadership.” - Partnership Senior Vice President of Economic Development Craig Rhodes  For any new energy startups looking to establish themselves, Taff recommends leveraging Houston’s many assets for future success. “Tap into existing knowledge that can be transferred to clean tech and partner with companies that know where to find the skills needed to give your startup a leg up,” Taff said. “Join local incubators like Rice Alliance for Technology and the Houston Technology Center and others, leverage Greater Houston Partnership and Greentown Labs for networking, collaborate with Rice University and University of Houston, and take advantage of Texas' business-friendly regulatory environment.” Sage Geosystems is a prime example of how energy startups use Houston’s assets as a springboard to meet their potential, along with renowned innovators such as Syzygy Plasmonics, Cemvita Factory, and Fervo Energy. Learn more about the business opportunities within Houston's energy industry and its all-inclusive energy ecosystem.   
Read More
Economic Development

Greater Houston Partnership & Center for Houston’s Future Lead Mission to Japan & Korea to Strengthen Global Clean Hydrogen Partnerships

11/8/24
The Greater Houston Partnership and the Center for Houston’s Future (CHF) recently led a delegation of clean hydrogen sector leaders to Japan and South Korea. This mission aimed to advance collaboration and strengthen ties within the rapidly expanding global clean hydrogen ecosystem, marking a significant step in Houston's leadership in the energy transition.  During the visit, Brett Perlman, Managing Director of CHF, signed a Memorandum of Understanding (MOU) with the leader of the Japanese Hydrogen Association, setting the stage for strategic collaborations that will boost clean hydrogen production both in East Asia and along the U.S. Gulf Coast.  Key moments of the mission included the Japan – U.S. Gulf Coast Clean Hydrogen Roundtable, where Perlman and Partnership Vice President of International Investment and Trade John Cypher shared insights into Houston’s hydrogen leadership.  Delegation members had the opportunity to tour cutting-edge hydrogen facilities across Japan and South Korea, including Chiyoda’s Liquid Organic Hydrogen Carrier (LOHC) production plant, Hanwha Daesan’s green energy fuel cell facility, Hyundai HyNet’s steel hydrogen shipment center, the SK Hydrogen Liquefaction Plant, and Bloom Energy’s fuel cell production facility. The group also met with high-level government officials from Yokohama, Kawasaki City, and Tokyo to discuss future collaborations.  The delegation also participated in H2 Week 2024 in Seoul, Korea, one of the world’s premier hydrogen conferences, where they connected with South Korean government officials, energy leaders and industry innovators.   “Strategic partnerships with key international allies are amplified by these missions and crucial for unlocking the full potential of emerging industries like clean hydrogen. At a time where energy and energy security are paramount, these missions not only reinforce Houston’s position as the global energy capital but also foster prosperity in the region. Together, we’re forging innovative solutions the world urgently needs in today’s energy landscape,” said John Cypher, Partnership Vice President of International Investment and Trade.  Houston’s Gulf Coast region was recently designated as one of the nation’s seven hydrogen hubs by the U.S. Department of Energy and is poised to play a pivotal role in this emerging sector. The Gulf Coast already accounts for more than a third of U.S. hydrogen production and is equipped with over 1,000 miles of hydrogen pipelines spanning 48 production facilities. In addition, the HyVelocity Hydrogen Hub, led by a coalition of seven core industry partners with support from academic and other organizations like CHF, is set to receive up to $1.2 billion in funding from the Bipartisan Infrastructure Law.  The growth of the clean hydrogen sector in the Houston region is expected to create up to 45,000 direct jobs, 35,000 construction jobs, and 10,000 permanent positions. International collaborations with partners like Japan and Korea, Houston’s fourth and seventh largest trading partners, will be essential for sustaining and accelerating this growth.  Learn more about Houston's hydrogen ecosystem.
Read More

Related Events

Executive Partners