HVAC innovation has a huge role to play in Houston amid energy transition

guest column

By prioritizing the deployment of smart, energy-efficient technologies, we can ensure that Houston remains at the forefront of the global energy landscape, setting the standard for other cities to follow. Photo via Getty Images

As Houston, the energy capital of the world, navigates the global energy transition, the city is uniquely positioned to lead by example. This transition isn’t just about shifting from fossil fuels to renewable energy; it’s about creating an ecosystem where corporations, research institutions, startups, and investors collaborate to develop and implement innovative technologies.

One of the most promising areas for reducing energy consumption and minimizing environmental impact is in heating, ventilation, and air conditioning, or HVAC, systems.

Houston’s intense weather patterns demand efficient and adaptable climate control solutions. Traditional HVAC systems, while effective in maintaining indoor comfort, often operate on fixed settings that don’t account for real-time changes in occupancy or weather. This results in energy waste and increased utility costs — issues that can be mitigated by integrating artificial intelligence into HVAC systems.

AI-driven HVAC systems offer a dynamic approach to heating and cooling, learning from user preferences and environmental conditions to optimize performance. These systems use advanced algorithms to continuously adjust their operation, ensuring that energy is used only when and where it’s needed. This results in up to 30 percent greater energy efficiency compared to conventional systems, translating into significant savings for consumers and a reduction in overall energy demand.

For a city like Houston, where energy consumption is a critical concern, the widespread adoption of AI-integrated HVAC systems could have a substantial impact. By optimizing energy use in homes, offices, and industrial spaces, these systems help reduce the strain on the electrical grid, particularly during peak usage times. Additionally, they contribute to lowering greenhouse gas emissions, aligning with Houston’s broader sustainability goals.

The potential of AI in HVAC systems extends beyond efficiency and environmental benefits. These systems enhance the user experience by offering precise control over indoor climates, adapting to individual preferences, and responding to external conditions in real-time. This level of customization not only improves comfort but also supports a smarter, more sustainable approach to energy management.

Houston’s energy transition requires the collective efforts of all sectors. While large corporations and government entities play a significant role, the contributions of startups, research institutions, and energy service companies are equally important. These entities are at the forefront of developing technologies that address both the economic and environmental challenges of our time. Investors are increasingly recognizing the value of funding solutions that offer long-term sustainability alongside financial returns, further driving the adoption of innovative energy technologies.

The integration of AI into HVAC systems represents a crucial step forward in this journey. As Houston continues to evolve as a leader in energy innovation, embracing advanced technologies like AI-driven HVAC systems will be key to achieving a more sustainable and resilient energy future. These systems are not just a technological advancement—they are a strategic tool in the broader effort to reduce energy consumption, lower emissions, and create a healthier environment for all.

At the heart of Houston’s energy transition is the commitment to building a future that balances growth with sustainability. By prioritizing the deployment of smart, energy-efficient technologies, we can ensure that Houston remains at the forefront of the global energy landscape, setting the standard for other cities to follow. As we move forward, the integration of AI into our energy infrastructure, particularly in HVAC systems, will be instrumental in shaping a sustainable and prosperous future for Houston and beyond.

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Trevor Schick is the president of KOVA, a Texas company creating sustainable solutions in building development.

This article originally ran on EnergyCapital.
Houston is in the running to receive millions from a program from the National Science Foundation. Photo via Getty Images

Houston named semifinalist for major energy transition funding opportunity

making moves

The National Science Foundation announced 34 semifinalists for a regional innovation program that will deploy up to $160 million in federal funding over the next 10 years. Among the list of potential regions to receive this influx of capital is Houston.

The Greater Houston Partnership and the Houston Energy Transition Initiative developed the application for the NSF Regional Innovation Engine competition in collaboration with economic, civic, and educational leaders from across the city and five regional universities, including the University of Houston, The University of Texas at Austin, Texas Southern University, Rice University, and Texas A&M University.

The proposed project for Houston — called the Accelerating Carbon-Neutral Technologies and Policies for Energy Transition, or ACT, Engine — emphasizes developing sustainable and equitable opportunities for innovators and entrepreneurs while also pursuing sustainable and equitable energy access for all.

“The ACT Engine will leverage our diverse energy innovation ecosystem and talent, creating a true competitive advantage for existing and new energy companies across our region," says Jane Stricker, senior vice president of energy transition and executive director for HETI, in a statement. "Texas is leading the way in nearly every energy and energy transition solution, and this Engine can catalyze our region’s continued growth in low-carbon technology development and deployment."

If Houston's proposal is selected as a finalist, it could receive up to $160 million over 10 years. The final list of NSF Engines awards is expected this fall, and, according to a release, each awardee will initially receiving about $15 million for the first two years.

"Each of these NSF Engines semifinalists represents an emerging hub of innovation and lends their talents and resources to form the fabric of NSF's vision to create opportunities everywhere and enable innovation anywhere," NSF Director Sethuraman Panchanathan says in a news release. "These teams will spring ideas, talent, pathways and resources to create vibrant innovation ecosystems all across our nation."

The NSF selected its 34 semifinalists from 188 original applicants, and the next step for Houston is a virtual site visit that will assess competitive advantages, budget and resource plans for R&D and workforce development, and the proposed leadership’s ability to mobilize plans into action over the first two years.

"Houston is poised, like no other city, to lead the energy transition. The ACT Engine presents a remarkable opportunity to not only leverage the region's unparalleled energy resources and expertise but also harness our can-do spirit. Houston has a proven track record of embracing challenges and finding innovative solutions,” says Renu Khator, president of the University of Houston, in the statement. “Through the collaborative efforts facilitated by the ACT Engine, I am confident that we can make significant strides towards creating a sustainable future that harmonizes economic growth, environmental protection and social equity."

NSF Engines will announce awards this fall after a round of in-person interviews of finalists named in July. With Houston's track record for building thriving industry hubs in energy, health care, aerospace, and the culinary arts, the region is eager to establish the next generation of leaders and dreamers responding to some of the greatest economic and societal challenges ever seen in America.

“Our energy innovation ecosystem is inclusive, dynamic, and fast growing," says Barbara Burger, energy transition adviser and former Chevron executive, in the release. "The ACT Engine has the potential to increase the amount of innovation coming into the ecosystem and the capabilities available to scale technologies needed in the energy transition. I am confident that the members of the ecosystem — incubators, accelerators, investors, universities, and corporates — are ready for the challenge that the ACT Engine will provide."

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This article originally ran on EnergyCapital.

According to a new report, the existing energy infrastructure of Texas makes it a great spot to lead the development of the hydrogen economy. Photo via Getty Images

Report: Texas is the best place to lead hydrogen economy

as the experts say

All signs point to Texas leading the development of a hydrogen market, says one new report out of Rice University.

The Baker Institute for Public Policy released a new report this week about the hydrogen economy and the role Texas will play in it. According to the experts, Texas’ legacy energy industry — as well as its geology — makes it an ideal hub for hydrogen as an energy source. Ken Medlock, senior director of the Baker Institute’s Center for Energy Studies, and Shih Yu (Elsie) Hung, research manager at the center, wrote the report.

“Texas is in a very advantageous position to play a leading role in driving hydrogen market growth, but the evolution of policy and market structure will dictate whether or not this comes to pass,” write the co-authors.

Medlock and Hung make the case for hydrogen's impact on the energy transition in the report.

“It can be produced in a number of different ways — including steam-methane reforming, electrolysis and pyrolysis — so it can leverage a variety of comparative advantages across regions,” they write.

The report explains that — with the state's existing and robust oil and gas infrastructure — Texas is the best spot to affordably develop hydrogen while managing economic challenges. Plus, Texas's coastal geology is an advantageous spot for storage and transport.

One factor to be determined, write the authors, is whether or not the policy will support the industry's growth.

“(Hydrogen’s) expansion as an energy carrier beyond its traditional uses in industrial applications will depend heavily on significant investment in infrastructure and well-designed market structures with appropriate regulatory architectures,” they write. “A lack of either will risk coordination failure along hydrogen supply chains and, thus, threaten to derail any momentum that may currently be building.”

GTI Energy and The Cynthia and George Mitchell Foundation funded this report.

Last summer, the Center for Houston's Future reported how Houston-based assets can be leveraged to lead a global clean hydrogen innovation. The Houston region already produces and consumes a third of the nation’s hydrogen, according to the report, and has more than 50 percent of the country’s dedicated hydrogen pipelines. These assets can be utilized to accelerate a transition to clean hydrogen, and the report lays out how.

"Using this roadmap as a guide and with Houston’s energy sector at the lead, we are ready to create a new clean hydrogen economy that will help fight climate change as it creates jobs and economic growth,” says Center for Houston’s Future CEO Brett Perlman. “We are more than ready, able and willing to take on these goals, as our record of overwhelming success in energy innovation and new market development shows.”

The energy industry is finally prioritizing new technology and greener energy — both in light of and in spite of a global pandemic. Photo via Getty Images

Overheard: Here’s what these energy VCs think of the pandemic’s effect on the energy transition

eavesdropping online

In a lot of ways, venture capital firms are tasked with predicting the future. They put money into tech and business services that are going to disrupt the status quo, and energy VCs are tasked with taking bets on the energy transition.

At a virtual event as a part of the 18th annual Rice Alliance Energy Tech Venture Forum, which is taking place online this week, a group of panelists moderated by Sandy Guitar, managing partner at the HX Venture Fund, discussed how the pandemic has affected the energy transition. The group of experts talked about the future of work, decarbonization, and more.

If you missed the event, here are a few key moments from the discussion.

“The role of digitization is going to be huge. The pandemic really exacerbated just how far oil and gas had been behind in that.”

— Sean Ebert, partner at Altira. Ebert explains that when times are good for energy companies, it's hard to get the attention of executives to introduce new technologies. Now, corporations are having to invest in tech that allows their employees to be mobile and remote.

“There’s never been a better time to invest in energy technology. … We are at a point where we can get the type of returns [we look for.]”

— George Coyle, managing partner at Energy Innovation Capital. Coyle adds that he's seen the pandemic effect major growth opportunities in energy startups in his portfolio.

“What we have is a sense of urgency that didn’t exist 15 years ago. Public companies virtually all have a sustainability report and need to show some sort of progress."

— Cory Steffek, managing director at Ara Partners. He adds, "I really think the opportunity in the near term is de-risking software or hardware technologies and showing people that you can construct assets where they can deploy substantial amounts of capital profitably. If you have that, from a returns standpoint, you have something that should generate significant yield."

“The part we have been focused on is how can you make the conventional more efficient, so energy-on-energy conversion is even better.”

— Hossam Elbadawy, managing director at SCF Ventures and technology partner at SCF Partners. He's referring to the question of whether to prioritize new low-carbon innovations or to make conventional methods more sustainable. His observation is that the solution is going to be a hybrid of both.

“When we think about the future of work, we think about what are the capabilities going to be required in the future to be able to improve operations in the field today?”

— Ricardo Angel, managing director and CEO of PIVA. Angel adds that, "a lot of activities might be replaced by AI," and he and his firm are thinking about how they can go about "developing the skills for the people who will be working with those tools."

The energy industry needs to re-evaluate its priorities for the workplace. Photo courtesy of Thomas Miller/Breitling Energy

Why Houston’s oil and gas leaders need to prioritize becoming a modern energy workplace

Guest column

The oil and gas industry today is being shaped by truly unprecedented conditions. In the face of a global economic crisis, players in this space are grappling with how best to spend and save resources in a way that's smart, deliberate and centered on expanding a company's value.

But even when the price of oil was four times what it is today, only 13 percent of the oil and gas industry's leaders said they were moving fast enough from a tech investment perspective, according to data my company, Quorum Software, pulled back in October. This was the writing on the wall that the industry was unprepared for a crisis of this magnitude, let alone two.

At the same time, there are a number of critical labor challenges that could curb Houston's oil and gas sector's ability to rebound. In order to future proof the energy industry and attract and retain young and innovative talent, Houston's oil and gas leaders need to prioritize investments in technology and start creating specific business advantages through tech.

Create a place young talent will want to land

In the Houston area, millennials age 25 to 34 make up the largest percentage of the adult population, according to the most recent data from the U.S. Census Bureau. Despite this, oil and gas has historically suffered a gap in talent for this employee subset.

As the Houston energy economy seeks to attract talent from Gen Z and millennial pools, they must invest in transformative technology and become a modern energy workplace.

In our recently released industry report, oil and gas decision makers made it clear that they understand having better technology generates more efficient workplaces. What's more, four out of five of these industry leaders think employees will leave without access to sound technology.

Technology will play as an essential part of crisis recovery, and Houston's business leaders in this sector must align their tech investments over the next two quarters in order to both drive business success and also retain and attract a rich talent pool.

Prepare for the long road ahead

Oil and gas leaders in this region are familiar with managing volatility. Prices rise and fall much more quickly than in other industries, with fluctuating regulations, border skirmishes, trade deals, weather and local and global politics all impacting an ever-changing market. We have entered a period when short-term stability and long-term success are both in jeopardy unless you innovate now – especially as the prognosis for long-term structural change in the industry indicates that things might get a lot tougher before they turn around.

In my 30-plus years in the software industry, I've heard thoughtful people talk a lot about disruption. The idea that companies use software and/or technology to disrupt both their internal operations or disrupt markets to make sure that markets don't disrupt them. In just a few months, the commodity pricing shifts have disrupted economic forces on our businesses. As much as we've talked about technology for transformation and modernization, we need to adopt strategies that allows for more agility and sustainability during big market swings.

Judging by the responses in our recent report, oil and gas decision-makers are realistic about the business challenges ahead of them and their inability to solve the problems using the technologies they have in place. Like their IT decision-maker counterparts, 95 percent of oil and gas industry leaders agree that in today's marketplace, a company that doesn't embrace technological advances will not succeed in terms of streamlining operations (land management, accounting, etc.). In fact, in oil and gas, 97 percent of respondents believe the industry will decline if it doesn't adapt to the changes around it.

The takeaway? To survive today — and thrive tomorrow — you don't need to disrupt your business, but you do need to modernize it to be agile and sustain revenue production. You need to bring new technologies into the fold to improve your efficiencies. You need to challenge the status quo, not only to help you endure today's conditions, but also get where you want to go.

This point is only unscored by recent reports that highlight how the Texas Workforce Commission is relying on tech from the 1980s as unemployment claims overwhelm the system. Across industries, and especially those experiencing the volatility that the oil and gas industry is, technology holds the key to attracting and retaining talent, streamlining operations, and staying afloat in these uncharted waters.

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Gene Austin is the CEO of Houston-based Quorum Software.

Houston — known as the Energy Capital of the World — had several trending stories in 2019 focused on energy innovation. Photo courtesy of Thomas Miller/Breitling Energy

These were Houston's top energy innovation stories this year

2019 in review

Editor's note: With 2020 just days away, InnovationMap is looking back at 2019's top stories in Houston innovation. Within the energy category, top stories included game-changing energy tech companies, the future of oil and gas — as told by the industry's emerging leaders, the results of a reverse pitch competition for ExxonMobil, and more.

Rice Alliance names the 10 most promising startups at Houston's Offshore Technology Conference

Startups from across the world pitched at the Rice Alliance Startup Roundup at the Offshore Technology Conference. Getty Images

Over 50 different startups from across the globe gathered at the Offshore Technology Conference for the fifth annual Rice Alliance Startup Roundup event. The full day of speed pitching and presentations, hosted by Rice Alliance Managing Director Brad Burke, took place at NRG Arena on Monday, May 6.

After interacting with all the various startups, the Rice Alliance's panel of experts voted on the 10 most promising startups. Half of the companies that were recognized are based in Houston — and even more have an office or some sort of operations in town. Here's which technologies the offshore oil and gas industry has its eye on. Click here to read more.

Overheard: Here's the future of oil and gas tech, according to this panel at OTC

Three young professionals took the stage to discuss the future tech of offshore operations in oil and gas. Courtesy photos

The oil and gas industry has a reputation for being a slow adapter when it comes to technology advances, but that's changing — as is the workforce. In the next few years, half of the United States workforce will be millennials, according to the Bureau of Labor Statistics.

A panel at the 2019 Offshore Technology Conference discussed the future of oil and gas technology — and the young professionals who are taking over the industry. Click here to read more.

ExxonMobil taps two new technologies in a Houston reverse pitch program

ExxonMobil named two winners in its inaugural reverse pitch competition with BBL Ventures. Courtesy of OctoRD

ExxonMobil and BBL Ventures have teamed up to flip the script on pitch competitions. Rather than have startups pitch themselves, the two companies collaborated on a reverse pitch event where Exxon identifies a few problems and search for companies that can build a solution.

The purpose of the event, says Tim Westhoven, technology scouting and venturing at ExxonMobil at the Baytown refinery, was to get the company out of its day-to-day to spark new ideas and innovation.

"Typically, as an engineer, when we think about how we solve a problem, we start inside the organization," Westhoven says at the event, which took place on Wednesday, June 5, at Station Houston. "Then we think about what problems we want to solve. Sometimes, you don't even think at all about what's available on the outside. This reverse pitch is us thinking about the impact we want to have and what the outside can offer." Click here to read more.

5 emerging energy tech companies in Houston revolutionizing the industry

It might not be surprising to discover that the energy capital of the world is a hub for energy startups. Getty Images

If you thought Houston's wildcatter days were exciting, just you wait. Houston has an emerging ecosystem of tech startups across industries — from facial recognition devices used at event check in to a drone controller that mimics movement in space.

A somewhat obvious space for Houston entrepreneurs is oil and gas. While the energy industry might have a reputation of being slow to adapt new technologies, these five Houston startups are developing the future of the industry — one device at a time. Click here to read more.

Exclusive: Plug and Play announces 15 energy tech companies for inaugural Houston cohort

Plug and Play Technology Center has named its first 15 startups in its Houston Energy and Sustainability cohort. Getty Images

A Silicon Valley accelerator program has announced the companies that will participate in its first Houston cohort just as the program begins to foster energy tech innovation in town.

Plug and Play Technology Center, which announced its entry into the Houston market this summer, named the 15 companies that will complete the program. While there are only two Houston-based companies in the mix this time around, all 15 companies will be operating locally with Houston corporate partners and startup development organizations.

"By being a part of this Plug and Play cohort, our corporate partners have validated that there is an interest in these startups' technology solutions," says Payal Patel, director of corporate partnerships for Plug and Play in Houston. "This will encourage these non-Houston based startups to spend more time in Houston, likely (and hopefully) leading to them doing business with our corporations, raising money from local investors, hiring local talent, and setting up an office in Houston." Click here to read more.

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Houston startups closed $1.75 billion in 2025 VC funding, says report

by the numbers

Going against national trends, Houston-area startups raised 7 percent less venture capital last year than they did in 2024, according to the new PitchBook-NVCA Venture Monitor report.

The report shows local startups collected $1.75 billion in venture capital in 2025, down from $1.89 billion the previous year.

Houston-based geothermal energy company Fervo Energy received a big chunk of the region’s VC funding last year. Altogether, the startup snagged $562 million in investments, as well as a $60 million extension of an existing loan and $45.6 million in debt financing. The bulk of the 2025 haul was a $462 million Series E round.

In the fourth quarter of last year, Houston-area VC funding totaled $627.68 million. That was a 22 percent drop from $765.03 million during the same period in 2024. Still, the Q4 total was the biggest quarterly total in 2025.

Across the country, startups picked up $339.4 trillion in VC funding last year, a 59 percent increase from $213.2 trillion in 2024, according to the report. Over the last 10 years, only the VC total in 2021 ($358.2 trillion) surpassed the total from 2025.

Nationwide, startups in the artificial intelligence and machine learning sector accounted for the biggest share of VC funding (65.4 percent) in 2025, followed by software-as-a-service (SaaS), big data, manufacturing, life sciences and healthtech, according to the report.

“Despite an overall lack of new fundraising and a liquidity market that did not shape up as hoped in 2025, deal activity has begun a phase of regrowth, with deal count estimates showing increases at each stage, and deal value, though concentrated in a small number of deals, falling just [8 percent] short of the 2021 figure,” the report reads.

Sandbox VR brings new gaming center to Houston's tech-savvy population

Get In The Game

Sandbox VR, a futuristic, full-body virtual reality gaming experience, has announced it will enter the Houston market this month, opening its first local gaming center on January 23.

"Houston's reputation as a hub for innovation and technology makes it a perfect fit for Sandbox VR," said Steve Zhao, CEO and founder of Sandbox VR, in a statement. "The city's diverse, tech-savvy population and strong entertainment culture create an ideal environment for our immersive VR experiences. LOL Entertainment continues to exceed our expectations as a partner, and we're excited to bring our cutting-edge virtual reality gaming to Texas's largest city."

The new gaming center opens Friday, January 23 at 797 Sorella Court in CityCentre.

One of the games that stands out is the Stranger Things: Catalyst game, based on the blockbuster Netflix television series. Groups of one to six players will be dropped into the sinister Hawkins Lab and the mysterious Upside Down to fight Demogorgons and other monsters. The game features Matthew Modine reprising his role as Dr. Martin "Papa" Brenner, who imbues players with psychic powers.

Other games include the supernatural pirate title The Curse of Davy Jones and other Netflix tie-ins based on Zack Snyder's Rebel Moon and Squid Game. Sandbox VR offers fully-immersive group play activities that range from combat to puzzle solving for a variety of age groups.

The opening of Sandbox VR is another part of the expansion of LOL Entertainment, who touts itself as one of the pre-eminent hosts of immersive and gaming experiences in the U.S. Sandbox VR will be their first entry into the Houston market, with another immersive group adventure game, Time Mission, set to open at the the Marq'E Entertainment District later this year.

“Bringing Sandbox VR to CityCentre Houston is a big milestone for LOL Entertainment, for Sandbox VR, and for this market,” said Rob Cooper, CEO of LOL Entertainment. “Houston is a fast-growing, experience-driven city, and we’re excited to give locals and visitors a truly immersive, social gaming destination that you can’t replicate anywhere.”

Presale tickets for the grand opening of Sandbox VR are available here. Standard pricing is $55-$65 per event, but Sandbox VR is running a special for 30 percent off with code OPEN30 for those who purchase before Thursday, January 22. Presale buyers are also entered into a drawing for free Sandbox VR for one year.

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This article originally appeared on CultureMap.com.

Baylor College of Medicine names Minnesota med school dean as new president, CEO ​

new leader

Dr. Jakub Tolar, dean of the University of Minnesota Medical School, is taking over as president, CEO and executive dean of Houston’s Baylor College of Medicine on July 1.

Tolar—who’s also vice president for clinical affairs at the University of Minnesota and a university professor—will succeed Dr. Paul Klotman as head of BCM. Klotman is retiring June 30 after leading Texas’ top-ranked medical school since 2010.

In tandem with medical facilities such as Baylor St. Luke’s Medical Center and Texas Children’s Hospital, Baylor trains nearly half of the doctors who work at Texas Medical Center. In addition, Baylor is home to the Dan L Duncan Comprehensive Cancer Center and the Texas Heart Institute.

The hunt for a new leader at Baylor yielded 179 candidates. The medical school’s search firm interviewed 44 candidates, and the pool was narrowed to 10 contenders who were interviewed by the Board of Trustees’ search committee. The full board then interviewed the four finalists, including Tolar.

Greg Brenneman, chair of Baylor’s board and the search committee, says Tolar is “highly accomplished” in the core elements of the medical school’s mission: research, patient care, education and community service.

“Baylor is phenomenal. Baylor is a superpower in academic medicine,” Tolar, a native of the Czech Republic, says in a YouTube video filmed at the medical school. “And everything comes together here because science saves lives. That is the superpower.”

Tolar’s medical specialties include pediatric blood and bone marrow transplants. His research, which he’ll continue at Baylor, focuses on developing cellular therapies for rare genetic disorders. In the research arena, he’s known for his care of patients with recessive dystrophic epidermolysis bullosa, a severe genetic skin disorder.

In a news release, Tolar praises Baylor’s “achievements and foundation,” as well as the school’s potential to advance medicine and health care in “new and impactful ways.”

The Baylor College of Medicine employs more than 9,300 full-time faculty and staff. For the 2025-26 academic year, nearly 1,800 students are enrolled in the School of Medicine, Graduate School of Biomedical Sciences and School of Health Professions. Its M.D. program operates campuses in Houston and Temple.

In the fiscal year that ended June 30, 2024, Baylor recorded $2.72 billion in operating revenue and $2.76 billion in operating expenses.

The college was founded in 1900 in Dallas and relocated to Houston in 1943. It was affiliated with Baylor University in Waco from 1903 to 1969.

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