Mayor Sylvester Turner and other local leaders joined the stage for the Ten Across summit in Houston this week. Photo by Natalie Harms/InnovationMap

Houston has an integral role to play in the energy transition, and that role was thoroughly discussed at a recent conference taking place in the Bayou City.

This week, Houston hosted the 10X Summit: The Future Is Here, an event by Ten Across — an organization that focuses on social, economic, and climate change issues across the region around Interstate 10 from Los Angeles to Jacksonville. The three-day conference featured guest speakers who spoke to resiliency, water, the future of energy, and more.

Among these speakers included a handful of Houston researchers, political figures, and innovators — and much of their conversations overlapped related topics and themes, from Hurricane Harvey's legacy and impact on the business community to the role the city will play in the energy transition.

When it comes to the energy transition, here are the key messages Houston leaders shared with 10X attendees.

The energy transition can't happen without Houston

The topic of the energy transition came up right out of the gate for the summit. At the welcome reception on Tuesday, Bobby Tudor, CEO of Artemis Energy Partners and founder and former CEO of Tudor, Pickering, Holt & Co., spoke to the evolution of the industry and how Houston is a major factor in the energy transition's success.

“I don’t think (the energy transition) is going to happen without (Houston)," Tudor says at the fireside chat with Wellington Reiter, executive director of Ten Across. "There's a notion that the transition is inevitable. It’s inevitable — only if our technology continues to advance and improve, only if new assets get deployed, only if capital supports it, and only if the people who know and understand the energy systems are leaning in to make it happen.”

For Tudor, who served as chair of the Greater Houston Partnership in 2020 and made it his mission to communicate the importance of industry evolution during his tenure, Houston businesses motivated by opportunities in business should be looking at the energy transition.

“We’re very good in Houston that, when we see a dollar bill lying on the ground, we bend over and pick it up. Right now, there’s fantastic opportunity in the energy transition space," he says. "We have both a responsibility and an opportunity to be the leaders in the global energy transition.”

Mayor Sylvester Turner in his chat with Reiter on Thursday addressed how some might think that Houston — a headquarters for some of the biggest oil and gas giants — might not be the right city to lead a cleaner energy system, but Turner argued that's exactly why it has to happen here.

“We are the energy capital of the world," he says. "The reality is we have some of the largest greenhouse gas emitters principally located right here in Houston. To the extent of leading an energy transition, the impact is not just locally. The impact is globally.”

Barbara Burger, former president of Chevron Technology Ventures and an energy tech startup adviser, explained how integral the relationship between the energy industry and Houston is.

“As the energy system evolves, so does Houston," she says. “I think it’s our opportunity to lose."

The role of corporate incumbents 

Burger's discussion, which took place on Wednesday, spoke to the role of incumbents — corporations that have been operating in the energy industry for decades — in the transition. She explained how the process can't move forward without these parties.

“The incumbents need to be a part of the energy transition. There are parts of our society that don’t want them to be, and I find that unfortunate," she says. "For one, we’re not going to decarbonize the energy system unless they are a part of it. Two, there are a lot of skills and capabilities and assets in the incumbents to do that.

"What I don’t think the incumbents will do is they won’t lead it," she continues. "Many will be leaders in the new energy system, but they won’t be the ones first up the hill.”

Burger compares the energy and the automotive industries. Tesla acted as a disruptor to major auto companies, and then they followed suit. The disruptors and catalysts the energy industry will be a combination of startups, investors, governments, universities, and employee bases.

“We’re not going to throw away the current energy system," she says. "We’re going to evolve it and repurpose it.”

Houston has the ingredients

Tudor addressed the existing infrastructure — from physical pipes to expertise and workforce — that Houston has, which makes for an ideal location for innovation and progress in the transition.

“For a lot of reasons, it’s very clear that unless Houston leans in, we’re not going to find the solutions we need to transition our energy systems to much lower CO2 emissions," he says.

The GHP established the Houston Energy Transition Initiative in 2021 to concentrate Houston efforts within the future of energy. Tudor says this initiative is focused on what can be done now in town — attracting clean energy startups, developing a hydrogen hub, building facilities for green hydrogen production — to lead to a better future.

“We want to look up 20 years from now and find Houston is still — if not more than ever — the energy capital of the world," he says. "We believe that energy systems globally in 20 years will look quite different from how they look today. And that means Houston will look very different from how it looks today."

Burger emphasized some of the challenges — as well as opportunities — the city has considering its long history within the sector.

“Houston has benefitted from a vibrant, strong U.S. energy industry,” she says. “Keeping strong companies and keeping Houston attractive for the energy business is critical.”

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Houston-based Fervo Energy bumps up IPO target to $1.82 billion

IPO update

Houston-based geothermal power company Fervo Energy is now eyeing an IPO that would raise $1.75 billion to $1.82 billion, up from the previous target of $1.33 billion.

In paperwork filed Monday, May 11 with the U.S. Securities and Exchange Commission, Fervo says it plans to sell 70 million shares of Class A common stock at $25 to $26 per share.

In addition, Fervo expects to grant underwriters 30-day options to buy up to 8.33 million additional shares of Class A common stock. This could raise nearly $200 million.

When it announced the IPO on May 4, Fervo aimed to sell 55.56 million shares at $21 to $24 per share, which would have raised $1.17 billion to $1.33 billion. The initial valuation target was $6.5 billion.

A date for the IPO hasn’t been scheduled. Fervo’s stock will be listed on Nasdaq under the ticker symbol FRVO.

Fervo, founded in 2017, has attracted about $1.5 billion in funding from investors such as Bill Gates-founded Breakthrough Energy Ventures, Google, Mitsubishi Heavy Industries, Devon Energy (which is moving its headquarters to Houston), Tesla co-founder JB Straubel, CalSTRS, Liberty Mutual Investments, AllianceBernstein, JPMorgan, Bank of America and Sumitomo Mitsui Trust Bank.

Fervo’s marquee project is Cape Station in Beaver County, Utah, the world’s largest EGS (enhanced geothermal system) project. The first phase will deliver 100 megawatts of baseload clean power, with the second phase adding another 400 megawatts. The site can accommodate 2 gigawatts of geothermal energy. Fervo holds more than 595,000 leased acres for potential expansion.

Cape Station has secured power purchase agreements for the entire 500-megawatt capacity. Customers include Houston-based Shell Energy North America and Southern California Edison.

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This article originally appeared on our sister site, EnergyCapitalHTX.com.

Texas university's new flight academy opens at Houston Spaceport

cleared for takeoff

The vehicles may not have “student driver” stickers on them, but Texas Southern University has moved a dozen planes into its new training facility at the Houston Spaceport, opening the way for student flyers to use the facility.

TSU previously reached a deal with Houston Airports and the City of Houston in 2023 to house its prospective Flight Academy at Ellington Field. At the time, TSU had a small fleet of nine planes for student use, but a $5.5 million investment from the city greatly expanded the space available.

The Flight Academy includes a 20,000-square-foot hangar that serves as a TSU satellite campus. The school now has a fleet of 12 Cirrus SR20 aircraft that were acquired last year through state and alumni funding. An additional 4,500 square feet is used as classroom and office space. An 8,000-gallon fuel tank will support flight training operations.

TSU first launched its Aviation Science Management program in 1986 and added a professional pilot program in 2016. The school is now part of the United Airlines pipeline program and has also forged relationships with Delta and Southwest.

“I want to commend Texas Southern University and Houston Airports for their leadership and partnership in advancing aviation education right here in our city,” Houston City Councilwoman Dr. Carolyn Evans-Shabazz in a press release.

“It connects our students to high-paying, high-demand careers in aviation and aerospace. This is how we grow a city in the right way—by investing in workforce development, aligning education with industry and making sure our residents are prepared to lead in the industries of tomorrow. Houston is already a global leader in aerospace and projects like this strengthen that position even further, especially here at Ellington, where innovation and opportunity continue to take flight.”

The City of Houston signed an agreement to continue funding the academy for five years.

Amazon launches ultrafast, 30-minute delivery service across Houston

Amazon Now

More than 20 years after it redefined fast shipping, Amazon is preparing to raise the bar on consumer expectations again by offering to fulfill customers' most urgent product needs in Houston and other parts of the world in a half-hour or less for an extra fee.

The company, which revolutionized online shopping in 2005 with two-day deliveries for Prime members, is rapidly opening small order-processing hubs in dozens of U.S. and foreign cities to cater to shoppers who can't or don't want to wait for cough medicine to relieve flu symptoms or tomatoes for tonight's dinner salad.

The ultrafast service, called Amazon Now, first launched in India last June. Amazon says 30-minute deliveries now are also available in urban areas of the United States, Brazil, Mexico, Japan, the United Arab Emirates, the United Kingdom.

The mini-warehouses devoted to Amazon Now are about the size of a CVS drugstore. They stock about 3,500 products for expedited delivery, including beer, diapers, pet food, meat, nonprescription medications, playing cards and cellphone charging cables.

“We know that customers love speed and always have,” Beryl Tomay, Amazon’s head of transportation, told The Associated Press on Monday. “What we see customers doing, when we offer faster speeds, are they purchase more from Amazon. And Amazon becomes more top of mind for that or other types of items as well.”

In the U.S., the company first tested Amazon Now in Seattle, the home of its headquarters, and in Philadelphia. Most residents of the Dallas-Fort Worth area and Atlanta now have access as well. The service is also live in Dallas-Fort Worth, Denver, Minneapolis, Phoenix, Oklahoma City, Orlando, and dozens of other cities, Amazon said, with New York City and others expected by year-end.

The service charges for Amazon Now start at $3.99 for Prime members, who pay an annual fee of $139, and $13.99 for non-members. A $1.99 small basket fee applies to orders under $15, Amazon said.

The company's bet on a need for speed also comes as some consumers are rebelling against rushed deliveries as they weigh the potential impact on the environment and the workers tasked with preparing orders at a rapid rate.

Amazon’s approach
A relentless focus on speed helped Amazon build a logistics and e-commerce empire. After it made two days the new delivery time normal, Amazon moved into one-day and same-day deliveries for its Prime members. This spring, the company began making 90,000 products available in one hour or three hours at an extra cost.

The scaled down and sped up microhubs that are designed to handle 30-minute orders represent another step in Amazon's pursuit.

Only a handful of people prepare orders from aisles of shelves in the 5,000- to 10,000-square-foot facilities, unlike the sprawling fulfillment centers storing millions of items where Amazon employs a mix of human workers and robotics to pick and pack orders.

Amazon tailors the product inventory to each location and uses artificial intelligence and other technology to analyze what customers buy, as well as when and how often. The most popular U.S. purchases so far include soap, toothpaste, mouthwash, toilet plungers, bananas, limes and wireless earbuds, Amazon said.

The competition
Amazon’s attempt to up the instant gratification ante provides direct competition to on-demand food delivery platforms like Instacart, Uber Eats, DoorDash and Grubhub, which don't have the scale of the e-commerce titan, according to independent retail analyst Bruce Winder.

“What Amazon brings is their prowess in supply chain,” Winder said.

These smaller companies said they don't see Amazon as a threat, though, citing the hundreds of thousands of items they are able to deliver to users' doorsteps by partnering with various merchants and restaurants.

“DoorDash has a mission to empower grocers and retailers and augment their existing footprint, not to replace them,” DoorDash spokesperson Ali Musa said in an emailed statement. “We win only when they win, which is how we can offer over half a million grocery and retail items in under an hour across the country.”

Amazon also is in a race with Walmart to become the retailer that reliably gets orders to online shoppers in under an hour.

For an additional $10 on top of standard delivery charges, shoppers can place Walmart Express Delivery orders from among more than 100,000 products that are guaranteed to arrive in an hour. Many customers, however, are receiving the items under 30 minutes, Walmart CEO John Furner told analysts in February.

Domino's cautionary tale
Companies have promised deliveries in 30 minutes or less before, but the landscape also is littered with failed attempts to break the speed barrier.

The COVID-19 pandemic produced a flurry of companies that promised 10- to 15-minute grocery deliveries from microwarehouses in dense neighborhoods, according to Sucharita Kodali, an analyst at market research firm Forrester Research.

But soaring operating costs, low customer loyalty and the drying up of investor money ultimately caused most to fail before the pandemic was over, analysts said.

Domino’s in 1984 pushed a guarantee that customers would receive their pizzas for free if they weren't delivered in under a half-hour. The company amended the “30 minutes or it’s free” policy after two years, providing only a $3 discount for late deliveries.

The promotion helped Domino’s win market share, but it ended up tarnishing the company's reputation. It dropped the guarantee in December 1993 after a string of crashes and lawsuits involving drivers racing to meet the deadline.

Brad Jashinsky, a retail analyst at information technology research and consulting firm Gartner, said he thinks Amazon should take the pizza chain's experience as a cautionary tale.

“You get in trouble when you start overpromising something like that,” he said.

Amazon won't be making any time guarantees and instead plans to keep customers who chose the 30-minute delivery option updated on the progress of their orders, Tomay said.

“There's no rushing either in our building workers or the gig workers,” she said.

Taking it slow
Kodali thinks Amazon will need a lot of people placing orders around the same time from the same or adjacent apartment buildings for the 30-minute service to be cost-effective.

Consumers may appreciate rapid receipt of products like toilet paper and batteries, but retailers and logistics experts said they also see some online shoppers, especially members of Generation Z, choosing no-rush shipping for products they don't need in a hurry.

Amazon for several years has invited customers to skip one- or two-day delivery and to receive their orders on the same day in as few parcels as possible. Consolidating orders into fewer packages by electing to have them delivered at the same time cuts down on boxes, shipping envelopes and fuel use, analysts said.

“The millennials who came to age in an era that was on fast delivery came to expect it de facto, whereas ... Gen Z is more accepting of a slower speed than previous generations before them,” said Darby Meegan, a general manager at Flexport, a supply chain and logistics company that fulfills orders for thousands of online merchants.

Still, Amazon executives have cited positive early results for Amazon Now in India, where they said Prime members tripled their requests for 30-minute deliveries once they started using the service.

Amazon Now also is attracting more repeat American customers, Tomay said.

“It’s in early days and time will tell,” she said. “I think that it will be interesting to see how it evolves.”