Published Oct 05, 2022 by A.J. Mistretta
HOUSTON, TX (October 6, 2022) — The Houston Energy Transition Initiative (HETI), a strategic initiative led by the Greater Houston Partnership that is dedicated to strengthening Houston’s leadership as the Energy Capital of the World, released a report today on the Houston region’s positioning to become the leader in funding the energy transition.
The report, developed with significant support from McKinsey & Company, details why Houston is well positioned, the steps necessary to be the funding leader for the energy transition and how new legislation like the Inflation Reduction Act (IRA) can plan a critical role in advancing Houston’s ambition.
The report examines the opportunity for Houston to serve as the capital for future energy transition efforts through the following lenses:
“Houston’s status as the energy capital of the world, based on decades of leadership in energy markets, has fostered an experienced PE and capital markets community. Our city’s financial sector leaders have great appetite to expand focus to the next investment wave—and face a pivotal opportunity in today’s evolving market to grow and scale energy transition-related endeavors,” said Kassia Yanosek, Houston-based partner and global leader in McKinsey’s energy and sustainability practices. “To accomplish this, the Houston’s business community has turned its attention toward attracting financial decision makers, capital, and new talent to the city.”
In just the last few years, Houston has seen a four-fold increase in new energy venture capital investment, over 60 new low-carbon and climate-tech startups, and a fast-growing energy transition innovation ecosystem supporting collaboration across universities, startups, incubators, investors and corporates to enable the development and scaling of impactful solutions to our greatest challenge of climate change.
“This report provides a critical perspective for how our region can continue to position itself as the Energy Transition capital of the world. HETI’s objective is to create a vision and a blueprint for growing the region’s economy, exporting low-carbon products and expertise, equitably creating new jobs, and helping the city of Houston achieve the goals of its Climate Action Plan”, said Jane Stricker, Senior Vice President Energy Transition and Executive Director of HETI. “There is no geography in the world better positioned than Houston to lead the transition to and integration of abundant, low-carbon energy solutions.”
Startups and established energy companies alike see Houston as the place where low-carbon energy solutions will scale and be integrated into the existing energy infrastructure. Companies across all energy value chains – renewables, energy storage, geothermal and even nuclear - can find success in Houston.
“By leveraging our distinct advantages and capabilities, this is an exciting time for the Energy Capital of the World. As a region, Houston is poised extremely well to not only be the Energy Transition Capital, but to fund energy transition efforts and accelerate activities that will enable project financing,” said Sarah Morgan, Partner and co-head of Mergers & Acquisitions and Capital Markets at Vinson & Elkins and HETI capital formation committee member.
Developed by HETI’s Capital Formation Committee with support from McKinsey & Company, the report complements the broader efforts of the initiative, including reports such as “Houston Leading the Energy Transition” (June 2021), and “Houston as the epicenter of a global clean hydrogen hub” (June 2022). Capital Formation is just one of the working groups within HETI, which is also leading efforts on industrial decarbonization; clean hydrogen; carbon capture, utilization, and storage (CCUS); and cross cutting issues like energy policy and climate equity.
HETI | Greater Houston Partnership
The Greater Houston Partnership is dedicated to strengthening Houston’s position as the Energy Capital of the World. The economic vitality and growth of our region’s economy is inextricably tied to the energy industry, and the industry is changing rapidly to meet growing global energy demand while simultaneously lowering emissions. The Partnership's Houston Energy Transition Initiative (HETI) builds on the best of traditional energy skills and systems to leverage Houston's industry leadership to accelerate global solutions for an energy-abundant, low-carbon future.
HETI is a coalition of industry, academic and community partners working together to ensure the long-term economic competitiveness and advancement of the Houston region as leaders of the global energy transition. HETI is committed to strengthening Houston’s position as a leader in this effort by convening key leaders, advocating for sound public policy and attracting innovative companies who share our vision.
CONTACT:
Brina Morales
Senior Manager, Media Relations
bmorales@houston.org
(c) 832-287-5089
A.J. Mistretta
Vice President, Communications
amistretta@houston.org
(c) 504-450-3516
Stay up-to-date on what’s happening with the Partnership and Greater Houston region by opting-in to receive information on upcoming events, news, data releases and more.
Press Releases
