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Houston Energy Leader: ExxonMobil’s Carbon Capture Innovation Hub Concept ‘Major Step Forward’ in Energy Transition

Published Apr 20, 2021 by Clint Pasche

Port of Houston - Ship Channel

Houston Ship Channel - Port of Houston

HOUSTON (April 20, 2021) – The Greater Houston Partnership, the region’s principal business organization, applauded ExxonMobil’s announcement of the Carbon Capture and Storage Houston Innovation Hub concept.

“The rapid-scaling of carbon capture and storage technology and infrastructure is critical to the global energy transition to a low-carbon future. The concept unveiled by ExxonMobil for the Houston region is a key milestone in this effort,” said Bobby Tudor, chair of the Partnership’s Energy Transition initiative and chair, Tudor, Pickering, Holt, and Co. “The energy transition requires a dual approach that addresses the need to deliver ever-increasing amounts of energy to support a growing, modernizing global population while also achieving net zero emissions to prevent unmanageable impacts from a changing climate. Put simply, ExxonMobil’s commitment to carbon capture and storage here in the Houston region is a major step forward in the transition.”

As the Energy Capital of the World, Houston is at the heart of efforts to transition to a low-carbon future.  The Greater Houston Partnership, as representatives of the Houston business community, has been committed to positioning Houston as the leader of the global energy transition for several years.

In Bobby Tudor’s speech at the organization’s Annual Meeting in January 2020, the then Partnership board chair declared, “As Houston business leaders, we have both an opportunity and a responsibility to lead the transition to a cleaner, more efficient and more sustainable, lower carbon world. There is fantastic business opportunity for us in this effort; it’s necessary and it’s the right thing to do. Houston is about making things happen, and we can lead this energy transition.”

A recent report from the Center for Houston’s Future and the University of Houston noted the “recent National Petroleum Council study on the ‘at-scale deployment of CCUS’ made clear that Houston and Texas offer world-leading advantages because of the unique cluster of industries, geology and business opportunities for not only disposal but commercialization of CO2 as a useful product.”

The global energy transition will be comprehensive and complex requiring enormous investments, innovations, new business models and changing patterns of energy production, distribution and use. The Partnership believes that all forms of energy will be required, including decarbonized oil and gas.  Alignment between private interests and government policy makers at all levels will be required to support the massive investments required.

The Houston region is positioned to lead the transition and capture value for the region from the changes that will result. Houston is positioned to lead thanks to its deep technical and commercial energy expertise, extensive energy and manufacturing infrastructure, experience in large complex projects and problems, burgeoning innovation ecosystem, and availability of capital.  It also benefits from an established City of Houston Climate Action Plan and pragmatic, results-oriented relationships across public and private sectors.

Energy Transition Strategy Roll-Out, Global Energy Transition Event – June 29 – July 1, 2021
Key Houston leaders from across multiple sectors have worked together to develop and lead a bold, long-term regional strategy for competing and leading in the global energy transition.  

The resulting report and regional strategy generated by this work will be presented by the Greater Houston Partnership and the Center for Houston’s Future at a special event this summer entitled The Future of Global Energy: Houston’s Role in Leading the Energy Transition, June 29-July 1. Information will be posted at Houston.org/Events when available.

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Greater Houston Partnership
The Greater Houston Partnership works to make Houston one of the best places to live, work and build a business. As the economic development organization for the Houston region, the Partnership champions growth across 11 counties by bringing together business and civic-minded leaders who are dedicated to the area’s long-term success. Representing 1,000 member organizations and approximately one-fifth of the region’s workforce, the Partnership is the place business leaders come together to make an impact. Learn more at Houston.org.

CONTACT:    
A.J. Mistretta 
Vice President, Communications         
(c) 504-450-3516 | amistretta@houston.org

Maggie Martin 
Senior Manager, Communications 
mmartin@houston.org 

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Day 3 of Future of Global Energy: Hydrogen's Role in the Transition

7/2/21
Houston, already a leading hydrogen producer, has the ingredients to become a global hub for low-carbon hydrogen, a point stressed by leaders from across industry, government and community organizations on the third and final day of The Future of Global Energy conference. Creating a low-carbon hydrogen hub would help us decarbonize locally, bring emissions-reducing products and services to the nation and world, and create new jobs and investment. Doing so will require new levels and models of cooperation. Here is a recap of the conversations about hydrogen on Day 3: Houston’s Role in Leading the Energy Transition The morning began with keynotes setting stage, from local to global. Houston played a leading role in energy transitions over the years, said Daniel Droog, Chevron’s Vice President of Energy Transition, and it’s no different this time around. “Solving the great challenges in energy depends on people,” Droog said. “It is the people in Houston that made it the energy leader and why Houston will remain the world's energy leader.” Chevron is contributing by doing everything from lowering the carbon footprint of its own operations to developing new technologies to bring to market. That involves working in Houston to scale up low-carbon hydrogen businesses, including around heavy-duty transportation and hard-to-abate industries and processes. Global View of the Hydrogen Industry Clean hydrogen will play a growing role across the entire economy as the world moves to net-zero, said keynote speaker Andreas Wagner, who leads hydrogen activities at the Energy Transitions Commission, a global coalition of leaders from across the energy landscape committed to achieving net-zero emissions by mid-century. He highlighted opportunities in a series of sectors, including manufacturing, shipping, aviation, power and steel. “Houston has one of the best hydrogen infrastructures already in place, making it primed to be a leader in clean hydrogen," said Wagner. Sector specific policies, certification standards and a price on carbon will also help grow demand for clean hydrogen, he concluded. Panel 1: What Will it Take to Launch Houston's Hydrogen Hub? Panelists representing government, industry and finance detailed Houston’s strong base of assets and considered what’s needed to mesh them into a thriving low-carbon hydrogen hub. Chris Angelides, Head of U.S. Energy Transition Program, Shell Rich Byrnes, Chief Infrastructure Officer, Port of Houston Scott Doyle, Executive Vice President - Natural Gas, CenterPoint Energy Pierre-Etienne Franc, Chief Executive Officer, 5T Hydrogen AG Vaseem Khan, Global Vice President, Digital and Analytics, McDermott International Moderator: Andy Steinhubl, Vice Chair, Center for Houston’s Future Low-carbon hydrogen can be transformative for the energy industry, be it what’s known as blue hydrogen – hydrogen produced with a fossil fuel base and paired with carbon capture to remove emissions – or hydrogen produced with renewable power and no emissions. But the industry, end-users and/or policymakers must work together to drive down productions costs, prove that robust demand will exist and, in essence, demonstrate how commercial markets can and will work. A successful demonstration effort will help Houston accelerate its success, said Angelides, who noted that Shell is participating in a number of hydrogen projects and sees a future in which low-carbon hydrogen fuels play an important role in both transportation and heavy industry. Doyle also stressed that stakeholders need to come together to figure out ultimate questions around economics and scale. A new level of collaboration is required to make all the pieces come together, emphasized Khan. The panel was optimistic about Houston’s chances as low-carbon hydrogen hub and its ability to lead the energy transition. "It is exciting how far we have already come,” Angelides said. “We are now looking at the transition across the entire value chain.” Panel 2: Who Wins in Producing Hydrogen’s Many-Colored Rainbow? Of the highest importance is the carbon intensity of any carbon type, concluded panelists, who also stressed the need for a variety of types in Houston, creation of transparent trading markets and, again, the need for collaboration. Kathy Ayers, Vice President Research & Development, Nel Hydrogen Deia Bayoumi, Vice President Production Management, Bloom Energy Trevor Best, Chief Executive Officer, Syzygy Plasmonics Andrew Garnett, Director, Special Projects - Corporate Strategy, Air Liquide Roman Kramarchuk, Head Energy Scenarios, Policy & Technology Analytics, S&P Global Platts Moderator: Nichelle McLemore, Managing Director Oil, Gas and Chemicals, Deloitte "There will be multiple technologies in the future, and we will need collaboration,” said Andrew Garnett, Interim President, Air Liquide U.S. Hydrogen Energy. “One company will not be able to build on hydrogen innovation alone." Different circumstances will yield different winners, noted Ayers, who also envisioned a future with a broad mix of hydrogen technologies. Rather than the current rainbow-color-system of labeling hydrogen production (example: grey plus carbon capture’s blue), panelists noted what is important is the “carbon intensity” of the hydrogen and the hydrogen production process. Best noted that some hydrogen fuels don’t have a color – and what is most important is the carbon intensity across a life cycle. The panel also focused on Houston’s strengths: people, infrastructure and industry. Also stressed was the need to act now or risk our advantages slipping away. The group again called for demonstration projects. "Houston can be the leader in the hydrogen market, it already has all the pieces,” Kramarchuk said. Panel 3: How Do We Grow Early Applications for the Hydrogen Hub? Houston has all the makings of a net-zero cluster – from a skilled workforce to infrastructure to R&D – but must act boldly and collaboratively to bring it all together, this panel concluded. Neva Espinoza, Vice President, Energy Supply and Low-Carbon Resources at the Electric Power Research Institute Michael Lewis, Senior Engineering Scientist, University of Texas Brian Rapp, Vice President of Business Development, Texas Brine Company Pradeep Venkataraman, Senior Manager, Investment and Business Development, Mitsubishi Heavy Industries America Brian Weeks, Senior Director, Business Development, GTI Katie Zimmerman, Business Development Manager, Energy Transition, Wood Group “Houston is already a hydrogen hub,” said Espinoza. “You’re trying to be a net-zero hydrogen hub.” The region should undertake a big, bold, banner low-carbon hydrogen project that draws attention, enthusiasm and demonstrates we can do it here, said Zimmerman. We have opportunities to excel in a range of applications such as energy storage, power, industrial processes transportation, hydrogen-derived fuels and exports. One asset Houston should highlight and take advantage of is the global footprint of our energy companies and population, said Weeks. The group stressed the need for policy incentives, regulatory clarity, innovation, financing and drawing start-ups to Houston and research. And, again, collaboration. Policies Shaping the Energy Transition In closing keynotes Congresswoman Lizzie Fletcher, Texas 7th Congressional District, and Jigar Shah, Director of the U.S. Department of Energy Loan Program Office, offered a federal perspective. Fletcher stressed how Houston must and can lead the transition to a low-carbon future. She detailed Biden’s administration legislation rich with provisions to boost investment in the energy transition including tax credits and funding for demonstration projects. Congress is also considering a series of other efforts. Shah detailed how the federal loan program has already helped spur key breakthroughs in solar and electric vehicles. And his office is reviewing applications for low-carbon hydrogen projects. Washington, he said, sees significant opportunity ahead for low-carbon hydrogen. All told, the day’s speakers made a strong case that Houston is the logical place for a world-class low-carbon hydrogen hub. But work remains in weaving all the pieces together. Learn more about the Center for Houston's Future and get more insight from the Future of Global Energy conference and the region's efforts around energy transition.  
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