Houston could have ranked higher on a global report of top cities in the world if it had a bit more business diversification. Photo via Getty Images

A new analysis positions the Energy Capital of the World as an economic dynamo, albeit a flawed one.

The recently released Oxford Economics Global Cities Index, which assesses the strengths and weaknesses of the world’s 1,000 largest cities, puts Houston at No. 25.

Houston ranks well for economics (No. 15) and human capital (No. 18), but ranks poorly for governance (No. 184), environment (No. 271), and quality of life (No. 298).

New York City appears at No. 1 on the index, followed by London; San Jose, California; Tokyo; and Paris. Dallas lands at No. 18 and Austin at No. 39.

In its Global Cities Index report, Oxford Economics says Houston’s status as “an international and vertically integrated hub for the oil and gas sector makes it an economic powerhouse. Most aspects of the industry — downstream, midstream, and upstream — are managed from here, including the major fuel refining and petrochemicals sectors.”

“And although the city has notable aerospace and logistics sectors and has diversified into other areas such as biomedical research and tech, its fortunes remain very much tied to oil and gas,” the report adds. “As such, its economic stability and growth lag other leading cities in the index.”

The report points out that Houston ranks highly in the human capital category thanks to the large number of corporate headquarters in the region. The Houston area is home to the headquarters of 26 Fortune 500 companies, including ExxonMobil, Hewlett Packard Enterprise, and Sysco.

Another contributor to Houston’s human capital ranking, the report says, is the presence of Rice University, the University of Houston and the Texas Medical Center.

“Despite this,” says the report, “it lacks the number of world-leading universities that other cities have, and only performs moderately in terms of the educational attainment of its residents.”

Slower-than-expected population growth and an aging population weaken Houston’s human capital score, the report says.

Meanwhile, Houston’s score for quality is life is hurt by a high level of income inequality, along with a low life expectancy compared with nearly half the 1,000 cities on the list, says the report.

Also in the quality-of-life bucket, the report underscores the region’s variety of arts, cultural, and recreational activities. But that’s offset by urban sprawl, traffic congestion, an underdeveloped public transportation system, decreased air quality, and high carbon emissions.

Furthermore, the report downgrades Houston’s environmental stature due to the risks of hurricanes and flooding.

“Undoubtedly, Houston is a leading business [center] that plays a key role in supporting the U.S. economy,” says the report, “but given its shortcomings in other categories, it will need to follow the path of some of its more well-rounded peers in order to move up in the rankings.”

Known as Ike Dike, the proposed project received federal funding from U.S. Army Corps of Engineers. Photo courtesy

Innovative coastline project on Bolivar Peninsula receives federal funding

flood mitigation

The Galveston’s Coastal Barrier Project recently received federal funding to the tune of $500,000 to support construction on its flood mitigation plans for the area previously devastated by Hurricane Ike in 2008.

Known as Ike Dike, the proposed project includes implementing the Galveston Bay Storm Surge Barrier System, including eight Gulf and Bay defense projects. The Bolivar Roads Gate System, a two-mile-long closure structure situated between Galveston Island and Bolivar Peninsula, is included in the plans and would protect against storm surge volumes entering the bay.

The funding support comes from U.S. Army Corps of Engineers (USACE) and will go toward the preconstruction engineering and design phase of Ecosystem Restoration feature G-28, the first segment of the Bolivar Peninsula and West Bay Gulf Intracoastal Waterway Shoreline and Island Protection.

Coastal Barrier Project - Galveston Projects

The project also includes protection of critical fish and wildlife habitat against coastal storms and erosion.

“The Coastal Texas Project is one of the largest projects in the history of the U.S. Army Corps of Engineers,” says Col. Rhett A. Blackmon, USACE Galveston District commander, in a statement. “This project is important to the nation for many reasons. Not only will it reduce risk to the vulnerable populations along the Texas coast, but it will also protect vital ecosystems and economically critical infrastructure vital to the U.S. supply chain and the many global industries located here.”

Hurricane Ike resulted in over $30 billion in storm-related damages to the Texas coast, reports the Coastal Barrier Project, and created a debris line 15 feet tall and 40 miles long in Chambers County. The estimated economic disruption due to Hurricane Ike exceeded $150 billion, FEMA reported.

The Coastal Texas Project is estimated to take 20 years to complete after construction starts and will cost $34.4 billion, reports the USACE.

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Correction: This article previously reported the incorrect project valuation and timeline. It has been updated to reflect the corrrect information.

Texas has one of the worst environmental records in the U.S., a new study finds. Photo courtesy of Union of Concerned Scientists

New report lands Texas among 10 worst states for the environment

Not so green

Everything is bigger in Texas, even the negative impact it has on the environment, a new study finds.

Ahead of Earth Day (April 22), personal finance site WalletHub analyzed all 50 states, looking at 27 metrics across three categories: environmental quality, eco-friendly behaviors, and climate-change contributions.

Texas' overall ranking is an abysmal No. 41, making it one of the least green places in America.

The Lone Star State comes in at No. 48 in environmental quality, No. 28 in eco-friendly behaviors, and No. 37 in climate-change contributions. Under climate-change contributions, WalletHub analyzed carbon-dioxide, methane, nitrous-oxide, and fluorinated greenhouse-gas emissions per capita. The higher the number, the worse a state performs in that category.

Despite an overall poor showing, Texas claims a few top spots in individual metrics, performing best in renewable portfolio standards (No. 1), states with electronic waste recycling programs (No. 1), and corporate clean energy procurement index score (No. 5). On the other side of the spectrum, Texas performs worst in the number of alternative-fuel stations per capita (No. 40), air quality (No. 41), water quality (No. 44), and energy consumption per capita (No. 45).

So why exactly is this a WalletHub story? What does this have to do with your money?

"Eco-friendliness and personal finance are related," the report says. "Our environmental and financial needs are the same in many areas: providing ourselves with sustainable, clean drinking water and food, for example. We also spend money through our own consumption and taxes in support of environmental security."

Vermont ranks first in environmentally friendliness, landing at No. 1 in environmental quality, No. 3 in eco-friendly behaviors, and No. 25 climate-change contributions.

Eight states have worse records than Texas: Oklahoma, Mississippi, Arkansas, Alabama, North Dakota, Wyoming, Kentucky, West Virginia, and Louisiana.

While not so green right now, Texas has made great strides in wind energy in recent years. The American Wind Energy Association's annual report for 2018 shows the Lone Star State is home to roughly one-fourth of all U.S. wind power production. If Texas were a country, the wind energy group says, it would rank fifth in the world for wind power capacity, with nearly 25,000 megawatts installed. And with nearly 7,000 megawatts of wind energy projects under construction or development at the end of 2018, Texas is adding more wind energy capacity than what all but two other states actually have installed.

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This story originally ran on CultureMap.

BP has partnered with an environmental nonprofit to reduce emissions of methane. Getty Images

BP forms new partnership to reduce methane emissions

Greener thinking

When it comes to greenhouse gas emissions in oil and gas, methane is a less talked about, sneakier culprit compared to carbon dioxide. While it remains in the atmosphere for a shorter period than CO2, methane is 84 times more potent than CO2 during its first 20 years after being emitted into the air.

BP, which has its North American headquarters in Houston, has set out a strategy to minimize its contributions of methane to the atmosphere. The company made a three-year deal with New York-based Environmental Defense Fund to reduce methane emissions in its global supply chain by incorporating new technologies and practices, which will be identified by the new partnership.

"BP is taking a leading role in addressing methane emissions, and this collaboration with EDF is another important step forward for us and for our industry," says Bernard Looney, BP's upstream chief executive, in a release. "We've made great progress driving down emissions across our own business, including meeting our industry-leading methane intensity target of 0.2 percent, but there is much more work to do and partnering with the committed and capable team at EDF will help us develop and share best practices."

BP and EDF will work with universities and third-party experts in order to identify cutting-edge technology for the new initiative, and the company hopes to serve as a leader in reducing greenhouse gas emissions, which is no small undertaking, says Fred Krupp, EDF president, in the release.

"The scale of the methane challenge is enormous, but so is the opportunity," Krupp says. "Whether natural gas can play a constructive role in the energy transition depends on aggressive measures to reduce emissions that include methane. BP took such a step today."

EDF, a nonprofit, won't be paid by BP — per EDF's policy —but BP will assist with funding when it comes to employing experts tasked with finding better technologies to minimize emissions.

"EDF and BP don't agree on everything, but we're finding common ground on methane," Krupp says in the release. "BP has shown early ambition to lead on methane technology. We hope to see more as BP delivers on its own stringent methane goal and we work together to spread solutions industrywide."

BP and EDF have identified three key areas the initiative will focus on this year.

New detection technology
BP will grant up to $500,000 to a detection and quantification technology project at Colorado State University. The initiative includes drone technology and stationary monitoring that hopes to speed up methane emission detection time.

"CSU welcomes this support from BP and EDF for this critical research work, and this provides the necessary confidence and momentum for other stakeholders to contribute in a collaborative environment, in which the results and tools will benefit the wider industry," says Dan Zimmerle, senior research associate for Colorado State University's Energy Institute, in the release.

Advances in digital technology
This year, BP and EDF will announce a digitization project for reducing methane emissions. An EDF report, Fueling the Digital Methane Future, which produced with Accenture Strategy, identified solutions such as machine learning, artificial intelligence, and augmented reality as potential pathways to fewer emissions.

Joint ventures
A 2018 EDF report proved that oil and gas companies can team up to reduce emissions together. BP and EDF plan to host a workshop to find best practices for emission reductions on a larger scale.

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Rice University breaks ground on new innovation hub, The Arc

breaking ground

Construction is officially underway on Rice University's The Arc in Houston’s Ion District.

The university broke ground on the 200,000-square-foot research, corporate innovation and office building on Nov. 4. The facility will share a plaza with the existing Ion building, fostering collaboration within the innovation space, according to Rice.

“The Arc will bring Rice’s extraordinary research and talent and Houston’s impactful innovation ecosystem into even closer connection with the industries and innovators working to solve some of the world’s most consequential challenges,” Rice President Reginald DesRoches said in an announcement. “That constant exchange of ideas and expertise will help move discoveries more rapidly from the laboratory to real-world impact.”

Construction is scheduled to be completed by Q2 2028. Rice Real Estate Co. is developing the project, and Rice University will occupy about 80,000 square feet in the building (about 40 percent). Preleasing has begun, with floor plans ranging from 28,000 to 31,000 square feet.

The Arc will feature conference and meeting spaces, an amenity lounge, fitness center, outdoor plazas, underground parking, and on-site retail and dining, according to the release.

It aims to host tenants focused on artificial intelligence and machine learning, data science, robotics, quantum science and engineering and energy, including Rice's new AI Foundry.

Rice says the AI Foundry will be a space where university experts and partners can support organizations with AI challenges. Rice recently committed to hiring 75 new AI-focused faculty and announced plans to launch a new Master of Artificial Intelligence (MAI) next fall.

“The AI Foundry is exactly the kind of collaboration the Arc is designed to enable,” Amy Dittmar, the Howard R. Hughes Provost and executive vice president for academic affairs at Rice, added in the release. “By bringing Rice researchers together with industry partners in a shared environment, we can accelerate the movement of ideas from research into practical applications while helping organizations build the capabilities they need to succeed as AI continues to evolve.

Developers of The Arc are targeting LEED Gold certification by incorporating smart building automation and energy-saving features into the project's design. Rice first announced the project in September 2025.

Rendering courtesy Bogza

Houston battery tech startup FlowCellutions acquired by Katy energy co.

M&A

Katy-based TerraFlow Energy, an energy storage and infrastructure company, has acquired Houston-based battery technology startup FlowCellutions. Financial terms weren’t disclosed.

FlowCellutions still operates under its established name, but with the tagline “A TerraFlow Energy Company.” Becca Segel, founder and CEO of FlowCellutions, now runs the business as its president.

FlowCellutions specializes in electrochemical sensing, diagnostics, analytics, and testing that offer insights into battery chemistry, charging capabilities, and system performance.

“FlowCellutions has always been focused on developing better ways to understand what is happening inside a flow battery and using that information to improve how these systems perform,” Segal said in a press release. “Joining TerraFlow gives us the opportunity to apply that work at a much larger scale while continuing to build the capabilities and expertise that make FlowCellutions unique.”

The FlowCellutions platform supports data centers and other heavy users of power. It’s designed to help reduce operating costs, prevent failures and costly downtime, and extend battery lifetime from about seven years to more than 30 years.

Segel founded the company in 2022. A member of Greentown Labs, the company raised more than $2 million in non-dilutive funding and received $1.5 million in National Science Foundation funding earlier this year.

FlowCellutions is one of five finalists in the Energy Transition Business category of InnovationMap’s 2026 Houston Innovation Awards.

“FlowCellutions brings a depth of scientific and technical expertise that fits naturally with where TerraFlow is going,” Jon Parrella, CEO of TerraFlow, said in the release.

“As we move from developing these systems to deploying them at commercial scale, understanding performance at a deeper level matters,” he said. “Bringing FlowCellutions into TerraFlow strengthens that capability and gives both teams more opportunity to advance the technology.”TerraFlow, founded in 2024, develops long-duration energy storage and power infrastructure for data centers, industrial facilities, utilities and other large power consumers.

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This article originally appeared on EnergyCapitalHTX.com.

3 fast-growing Houston scaleups named Innovation Awards finalists

meet the finalists

From IPOs to groundbreakings, some of Houston's most innovative companies reached major milestones this year.

As part of the 2026 Houston Innovation Awards, our Scaleup of the Year category honors innovative later-stage startups that have recently reached a significant milestone in company growth. Three scaleups have been named finalists for the 2026 award.

Read more about these businesses, their founders and their breakthrough technologies below. The 2026 winners will be announced on InnovationMap.com in mid-November.

Erock

Energy infrastructure company Erock, previously known as Enchanted Rock, develops dual-purpose microgrids that rely on natural gas and renewable natural gas to produce lower carbon emissions and air pollutants than diesel generators. Its products can provide bridge power before grid interconnection, backup power during outages and dispatchable capacity that supports long-term grid reliability. The company has more than 1,100 megawatts of installed capacity and over 20 years of experience serving commercial, municipal and large-scale technology customers.

Erock completed its initial public offering this year, raising approximately $600 million in gross proceeds. It also grew its contracted power system sales backlog to approximately $1.7 billion, up tenfold year-over-year, with production sold out through 2028, according to the company's application. The company secured a major equipment order from Anthropic, began construction of the 366-megawatt El Paso Electric project supporting Meta's data center campus, and started assembly operations at its Hyperion facility in Cypress, Texas.

Hertha Metals

Hertha Metals produces lower-cost, lower-emission steel and high-purity iron. The company has developed a single-step process that uses natural gas as a direct reductant instead of metallurgical coal, which cuts production costs by more than 25 percent and emissions by up to 50 percent, according to the company. The same process produces high-purity iron needed for high-purity steels and rare earth magnets. The company says it aims to "re-industrialize America’s production of critical materials."

Hertha Metals was founded by CEO Laureen Meroueh in 2022 and emerged from stealth last year with more than $17 million in venture capital funding. The company closed a $133.65 million Series A this month and also broke ground on its $100M high-purity iron factory known as Chalyx in Conroe.

Venus Aerospace

Spacetech company Venus Aerospace is developing a high-thrust rotating detonation rocket engine (RDRE) that replaces the subsonic combustion used in conventional rocket engines. The RDRE is a compact, simpler engine that can deliver up to 15 percent greater efficiency for defense and space applications. It completed its first U.S. flight test of the engine last summer.

Venus Aerospace was founded in 2020 by CEO Cassie Duggleby and CTO Andrew Duggleby. It raised a $20 million Series A in 2022 and $42 million Series A2 in 2025. It closed a $91 million Series B earlier this year and expanded its leadership team. The company is working toward longer-duration and higher-thrust testing and advancing its flight program.