ExxonMobil officially pauses plans for $7B Baytown hydrogen plant

Change of Plans

Plans for the world's largest low-carbon hydrogen plant may be on pause. Photo via exxonmobil.com

As anticipated, Spring-based oil and gas giant ExxonMobil has officially paused plans to build a low-hydrogen plant in Baytown, Chairman and CEO Darren Woods told Reuters in late November.

“The suspension of the project, which had already experienced delays, reflects a wider slowdown in efforts by traditional oil and gas firms to transition to cleaner energy sources as many of the initiatives struggle to turn a profit,” Reuters reported.

Woods signaled during ExxonMobil’s second-quarter earnings call that the company was weighing whether it would move forward with the proposed $7 billion plant.

The Biden-era Inflation Reduction Act created a new 10-year incentive, the 45V tax credit, for production of clean hydrogen. But under President Trump’s "One Big Beautiful Bill Act," the window for starting construction of low-carbon hydrogen projects that qualify for the tax credit has narrowed. The Inflation Reduction Act mandated that construction start by 2033. But the Big Beautiful Bill switched the construction start time to early 2028.

“While our project can meet this timeline, we’re concerned about the development of a broader market, which is critical to transition from government incentives,” ExxonMobil Chairman and CEO Darren Woods said during the company’s second-quarter earnings call.

Woods had said ExxonMobil was figuring out whether a combination of the 45Q tax credit for carbon capture projects and the revised 45V tax credit would enable a broader market for low-carbon hydrogen.

“If we can’t see an eventual path to a market-driven business, we won’t move forward with the [Baytown] project,” Woods said.

“We knew that helping to establish a brand-new product and a brand-new market initially driven by government policy would not be easy or advance in a straight line,” he added.

ExxonMobil announced in 2022 that it would build the low-carbon hydrogen plant at its refining and petrochemical complex in Baytown. The company has said the plant is slated to go online in 2027 and 2028.

ExxonMobil had said the Baytown plant would produce up to 1 billion cubic feet of hydrogen per day made from natural gas, and capture and store more than 98 percent of the associated carbon dioxide. The plant would have been capable of storing as much as 10 million metric tons of CO2 per year.

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This article originally appeared on EnergyCapitalHTX.com; it was updated to include new information about the plant in December 2025.

Prabhdeep Singh Sekhon, CEO of Gold H2, joins the Houston Innovators Podcast. Photo courtesy of Gold H2

Newly named CEO to lead Houston gold hydrogen biotech co. into high-growth phase

HOUSTON INNOVATORS PODCAST EPISODE 239

Using microbes to sustainably unlock low-cost hydrogen sounds like the work of science fiction, but one Houston company is doing just that.

Gold H2, a spin-off company from Cemvita, has bioengineered subsurface microbes to use in wells to consume carbon and generate clean hydrogen. The technology was piloted two years ago by Cemvita, and now, as its own company with a new CEO, it's safe to say Gold H2's on its way.

"First of all, that was groundbreaking," Prabhdeep Singh Sekhon, CEO of Gold H2, says of the 2022 pilot in the Permian Basin, "to be able to use bugs to produce hydrogen within a couple of days."

"2024 is supposed to be the year where Gold H2 takes off," Sekhon, who joined the company in April, tells the Houston Innovators Podcast. "It was one of those opportunities that I couldn't turn down. I had been following the company. I thought, 'here is this innovative tech that's on the verge of providing a ground-breaking solution to the energy transition — what better time to join the team.'"

Sekhon shares on the show how his previous roles at NextEra Energy Resources and Hess have prepared him for Gold H2. Specifically, as a leader on NextEra’s strategy and business development team, he says he was tasked with figuring out what the energy industry looks like in the next five, 10, and 20 years.

"Green hydrogen was a huge buzz, but one of the things I realized when I started looking at green hydrogen was that it's very expensive," Sekhon says. "I wanted to look at alternatives."

This journey led him to what Cemvita was doing with gold hydrogen, Sekhon says, explaining that the ability to use biotechnology to provide a new revenue stream from the mostly used up wells struck him as something with major potential.

"The idea of repurposing existing oil and gas assets to become hydrogen assets, leveraging current infrastructure to drive down overall deliver costs — to me I thought, 'wow, if they can make this works, that's brilliant,'" he says.

Now, as CEO, Sekhon gets to lead the company toward these goals, which include expanding internationally. He explains on the show that Gold H2 is interested in expanding to any part of the world where there's interest in implementing their biotech. In order to support the growth, Sekhon says they are looking to raise funding this year with plans for an additional round, if needed, in 2025.

"When we compare our tech to the rest of the stack, I think we blow the competition out of the water," Sekhon says, explaining that Gold H2's approach to gold hydrogen development is novel when you look at emerging technology in the space. "We're using a biological process — cheap bugs that eat oil for a living."

A new program at Rice University will educate recent graduates or returning learners on key opportunities within energy transition. Photo via Rice.edu

New program to produce innovative, sustainability-focused workforce for energy industry

coming this fall

A Houston university has committed to preparing the workforce for the future of energy with its newest program.

Rice University announced plans to launch the Master of Energy Transition and Sustainability, or METS, in the fall. The 31 credit-hour program, which is a joint initiative between Rice's George R. Brown School of Engineering and the Wiess School of Natural Sciences, "will train graduates to face emergent challenges in the energy sector and drive innovation in sustainability across a wide range of domains from technology to economics and policy," according to the university.

“We believe that METS graduates will emerge as leaders and innovators in the energy industry, equipped with the skills and knowledge to drive sustainable solutions,” Rice President Reginald DesRoches says in the release. “Together we can shape a brighter, more resilient and cleaner future for generations to come.”

Some of the focus points of the program will be geothermal, hydrogen, and critical minerals recovery. Additionally, there will be education around new technologies within traditional oil and gas industry, like carbon capture and sequestration and subsurface storage.

“We are excited to welcome the inaugural cohort of METS students in the fall of 2024,” Thomas Killian, dean of the Wiess School of Natural Sciences and a professor of physics and astronomy, says in the release. “This program offers a unique opportunity for students to delve into cutting-edge research, tackle real-world challenges and make a meaningful impact on the future of energy.”

The new initiative is just the latest stage in Rice's relationship with the energy industry.

“This is an important initiative for Rice that is very much aligned with the university’s long-term commitment to tackle urgent generational challenges, not only in terms of research — we are well positioned to make significant contributions on that front — but also in terms of education,” says Michael Wong, the Tina and Sunit Patel Professor in Molecular Nanotechnology, chair and professor of chemical and biomolecular engineering and a professor of chemistry, materials science and nanotechnology and of civil and environmental engineering. “We want prospective students to know that they can confidently learn the concepts and tools they need to thrive as sustainability and energy transition experts and thought leaders.”

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This article originally ran on EnergyCapital.

A Houston-based initiative has been selected by the DOE to receive funding to develop clean energy innovation programming for startups and entrepreneurs. Photo via Getty Images

Houston initiative selected for DOE program developing hubs for clean energy innovation

seeing green

Houston has been selected as one of the hubs backed by a new program from the United States Department of Energy that's developing communities for clean energy innovation.

The DOE's Office of Technology Transitions announced the the first phase of winners of the Energy Program for Innovation Clusters, or EPIC, Round 3. The local initiative is one of 23 incubators and accelerators that was awarded $150,000 to support programming for energy startups and entrepreneurs.

The Houston-based participant is called "Texas Innovates: Carbon and Hydrogen Innovation and Learning Incubator," or CHILI, and it's a program meant to feed startups into the DOE recognized HyVelocity program and other regional decarbonization efforts.

EPIC was launched to drive innovation at a local level and to inspire commercial success of energy startups. It's the third year of the competition that wraps up with a winning participant negotiating a three-year cooperative agreement with OTT worth up to $1 million.

“Incubators and Accelerators are uniquely positioned to provide startups things they can't get anywhere else -- mentorship, technology validation, and other critical business development support," DOE Chief Commercialization Officer and Director of OTT Vanessa Z. Chan says in a news release. “The EPIC program allows us to provide consistent funding to organizations who are developing robust programming, resources, and support for innovative energy startups and entrepreneurs.”

CHILI, the only participant in Texas, now moves on to the second phase of the competition, where they will design a project continuation plan and programming for the next seven months to be submitted in September.

Phase 2 also includes two national pitch competitions with a total of $165,000 in cash prizes up for grabs for startups. The first EPIC pitch event for 2024 will be in June at the 2024 Small Business Forum & Expo in Minneapolis, Minnesota.

Last fall, the DOE selected the Gulf Coast's project, HyVelocity Hydrogen Hub, as one of the seven regions to receive a part of the $7 billion in Bipartisan Infrastructure Law. The hub was announced to receive up to $1.2 billion — the most any hub will get.

The DOE's OTT selections are nationwide. Photo via energy.gov

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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.”

Houstonians can opt into learning more about the hydrogen economy in this new program from the University of Houston. Photo courtesy of University of Houston

UH launches hydrogen economy program for energy professionals, students

say hi to hydrogen

The University of Houston will launch a new micro-credential program titled “The Hydrogen Economy” starting Feb. 20 and running through May 8.

The program is designed for industry professionals, rising seniors, and graduate students. It aims to present the "opportunities and challenges offered by the growing hydrogen sector," according to a statement from UH.

“The energy field is evolving rapidly, and energy professionals need to do the same," Ramanan Krishnamoorti, vice president of energy and innovation at UH, said in a statement. "What we’re seeing is that the people the companies are going to value are those who can contribute to this transformation.”

The program consists of three badges that are earned via 15-hour modules held over three-week periods. Courses and lectures are held via Zoom weekly with recorded sessions to be viewed independently twice a week.

Participants can complete the entire program (earning all three badges) for $2,000, or earn individual badges for $750 each.

According to UH, the program aims to give participants a solid understanding of:

  • Key characteristics and drivers for hydrogen as the decarbonization fuel of choice
  • Fundamentals for the existing hydrogen market, and how it is poised to change
  • Policy and strategy: Critical factors in building The Hydrogen Economy
  • Hydrogen as a means for transporting and storing renewable energy
  • Current and emerging options for producing hydrogen, including offshore options
  • Basics of hydrogen safety
  • Technical options for storing and transporting hydrogen, including decision factors
  • Fuel cells and their roles in transportation, in the electric grid, and in domestic and commercial power supply
  • Hydrogen fueled vehicles – from forklifts, trains and ships to aircraft
  • Hydrogen as a fuel to decarbonize industry
  • Trade-offs for use of hydrogen vs. electrification vs. advanced renewable hydrocarbon fuels as vectors for decarbonization

The new offering from UH is one of several micro-credential programs UH Energy has launched since 2020. Other programs include:

  • Upstream Energy Data Analytics Program
  • CCUS Executive Education Program
  • Data Analytics for the Process Industries Program
  • Sustainable Energy Development Program
  • Environmental, Social and Governance in Energy
  • Rubbers in Extreme Environments

For more specifics about the Hydrogen Economy Program, click here

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These 5 trailblazing Houston startups are leading the energy transition

meet the finalists

Houston is home to a growing number of startups reshaping what it means to be called the "Energy Capital of the World."

As part of the 2026 Houston Innovation Awards, our Energy Transition Business category honors those innovative startups that are providing solutions within renewables, climatetech, clean energy, alternative materials, circular economy and more.

Five clean energy startups have been named finalists for the 2026 award. The finalists, selected by our esteemed panel of judges, range from a lower-emission steel producer to a diagnostics platform developer working to support batteries used in data centers.

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

Capwell Services

Methane capture company Capwell Services works to eliminate vented oil and gas emissions economically for operators. According to the company, methane emissions are vented from most oil and gas facilities due to safety protocols, and operators are not able to capture the gas cost-effectively, leading operators to emit more than 14 million metric tons of methane per year in the U.S. and Canada. Founded in 2022, Capwell specializes in low and intermittent flow vents for methane capture.

The company began as a University of Pennsylvania senior design project led by CEO Andrew Lane. It has since participated in programs with Greentown Labs, the Rice Clean Energy Accelerator and the Creative Destruction Lab Energy Cohort at Texas A&M University. The company moved to Houston in 2023 and raised a pre-seed round. It deployed two commercial units this year, according to its application.

FlowCellutions

Energytech startup FlowCellutions is developing a chemistry-agnostic diagnostics platform for flow and metal-air batteries supporting data centers and critical infrastructure. The platform is designed to help reduce operating costs, prevent failures and costly downtime, and extend battery lifetime from approximately seven years to more than 30 years. It has deployed four paid pilots and plans to take insights from the programs to develop its next-gen sensor platform technology.

CEO Becca Segel founded the company in 2022. It is a member of Greentown Labs, and Segel was a 2025 Activate Fellow. The company has raised over $2 million in non-dilutive funding and received a $1.5 million NSF SBIR Fast-Track award earlier this year.

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.

Mars Materials

Clean chemical manufacturing business Mars Materials is working to convert captured carbon into resources, such as carbon fiber and wastewater treatment chemicals. The company develops and produces its drop-in chemical products in Houston and uses an in-licensed process for the National Renewable Energy Lab to produce acrylonitrile, which is used to produce plastics, synthetic fibers, and rubbers.

Founded in 2019 by CEO Aaron Fitzgerald, CTO Kristian Gubsch, and vice president of operations Trey Sheridan, the company has secured over $7.2M in financing and is backed by Bill Gates’ Breakthrough Energy, Shell, Black & Veatch, and other organizations. It won in the Minority-founded Business Category in last year's Houston Innovation Awards.

Solidec

Chemical manufacturing company Solidec has developed autonomous generators that extract molecules from water and air and convert them into pure chemicals and fuels that are free of carbon emissions on-site, eliminating the need for transport, storage, and permitting. The company was founded around innovations developed by Rice University associate professor Haotian Wang.

The company was selected for the Chevron Technology Ventures’ Catalyst Program, Greentown Labs, NSF I-Corps and was part of the first cohort of the Activate Houston program. It won first place at the 2024 startup pitch competition at CERAWeek. Solidec was founded in 2023 by Wang, who serves as an advisor, CEO Ryan DuChanois, and CTO Yang Xia. It closed a $2.5 million seed round in 2025.

Houston businessman and philanthropist to receive legendary Texas award

Making History

The Texas State History Museum Foundation (TSHMF) has set the date for its 23rd annual Texas Independence Day Dinner and unveiled the 2027 recipients of its prestigious History-Making Texan Award, which includes a prominent Houston businessman.

Since 2005, the organization has honored "living Texas legends whose contributions to the state and the nation have been truly historic and exceptional in scope and nature." Past galas have recognized prominent Texas figures such as former presidents George H.W. and George W. Bush and former first ladies Barbara and Laura Bush, as well as H-E-B chairman Charles Butt, among others.

The two 2027 History-Making Texan Award recipients are Texas Historical Commission chairman, businessman, and philanthropist John L. Nau, III, and trailblazing Texas actor, director, producer, and writer Taylor Sheridan. The 2027 gala will be held at the Bullock Texas State History Museum in Austin on March 2, Texas Independence Day.

"Our honorees are national leaders whose accomplishments have elevated Texas’ distinctive place on the national and international stage," Debbie Raynor, dinner chair and TSHMF Trustee, said in a statement. "John L. Nau, III and Taylor Sheridan have each, in very different ways, helped tell the Texas story — one through the preservation of our history and treasured places, the other through the power of storytelling that has brought Texas and the American West to audiences around the world.

"Nau is the former chairman and CEO of Silver Eagle Beverages, one of the largest Anheuser-Busch distributors in the U.S. He has served as chairman of the Texas Historical Commission since 2015. Raynor said Nau's "commitment to preservation" extends further than his protection of Texas historic sites "to the stewardship and conservation of the land itself, including his bay area lodge in South Texas and his ranch in West Texas.

"[Nau's] leadership and lifelong dedication to history have earned him national recognition, but perhaps his greatest legacy is his determination to ensure that the stories and places that shaped Texas endure for generations to come," Raynor said.Quadruple-threat filmmaker Sheridan is most widely recognized for his award-winning neo-Western TV series Yellowstone and its associated spin-offs 1883, 1923, Marshals, and Dutton Ranch. Raynor hailed Sheridan for his success in bringing a "remarkable new dimension to the way the world sees Texas and the American West."

"As a creator, writer, director, and executive producer of some of television’s most successful series, he has captured the imagination of audiences across the globe while bringing the people, landscapes, traditions and enduring spirit of the West into millions of homes," she said. "And he does more than tell the Texas story — he lives it, as a native Texan, accomplished horseman and steward of two legendary Texas ranches."

A release estimates about 450 "business, political, and community leaders" attend the Texas Independence Day Dinner each year, and proceeds will benefit the Bullock Museum's educational programs and special projects.

The 2027 Texas Independence Day Dinner will take place March 2, 2027, at the Bullock Museum in Austin. A VIP reception will start at 6:30 pm, followed by a 7 pm reception, and 7:30 dinner and program.

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This article first appeared on CultureMap.com.

Houston bio-based materials startup breaks into footwear

cleaner shoes

A more sustainable shoe can’t be built on a single material swap. From the hard plastics hidden inside a heel to the material covering a sneaker’s upper, footwear is a collection of components—and each presents a different challenge for companies trying to move away from conventional, petroleum-based materials.

Houston-based Rheom Materials wants to change that equation. The biomaterials company has launched a sustainable footwear platform featuring two of its bio-based alternatives: Benree, a biodegradable plastic designed for hard internal components, and ShoraiDura, a durable leather alternative for footwear uppers.

“A shoe is not one material; it is multiple parts working together as a system. Substituting a single material has never moved the needle,” Rheom founder and CEO Zimri Hinshaw said in a news release. “Rheom wants to make it easier for brands to make a positive impact. By providing an assortment of bio-based materials, brands can change the system, not just a swatch of it.”

Benree is Rheom’s alternative to conventional hard plastics used in footwear construction. The company says it is a 100 percent USDA-certified bio-based, biodegradable material with performance comparable to acrylonitrile butadiene styrene (ABS), a widely used engineering plastic.

The material has passed SATRA testing for high-heel applications with Bared Footwear, an Australian footwear brand.

“At Bared, we're constantly on a journey to remove plastic from our shoes. At the same time, our brand won't compromise on quality for the end customer,” Millie Richards, Bared’s head of sustainability, added in the release. “From samples and testing, Rheom has proven to be solving both of those problems for us. We look forward to seeing how they develop as a company and would love to use them in our shoes.”

Rheom says it is also exploring Benree for additional internal components, including toe puffs and heel counters.

Rheom's Benree material was used for a high-heel prototype. Photo courtesy Rheom Materials

The company’s ShoraiDura material addresses another major part of shoe construction: the upper, which must withstand repeated flexing, friction and wear while maintaining its appearance.

Containing about 80 percent bio-based content, ShoraiDura is engineered as a durable leather alternative for footwear. Rheom says the material’s molecular structure is designed to deliver the strength and durability required for demanding applications.

To demonstrate how the material could be used in finished products, Rheom worked with a Los Angeles-based footwear manufacturer to create two prototypes: an athletic sneaker and a textured skater shoe, both featuring ShoraiDura uppers.

The two offerings reflect the company’s broader strategy. Rather than asking brands to evaluate a single material in isolation, Rheom is positioning its platform as a way to explore alternatives across different parts of footwear construction.

The next step is broader industry adoption. Benree’s testing with Bared Footwear and ShoraiDura’s footwear prototypes offer early examples of how the materials could be applied, while commercial use will depend on manufacturers’ evaluations and product-development decisions.

Rheom Materials is a Houston-based biomaterials company developing bio-based alternatives to petrochemical plastics. Its product portfolio includes Shorai, a leather alternative, and Benree, a hard plastic alternative.

The company debuted Shorai at the Houston Livestock Show and Rodeo in 2025 and showed a bio-based "leather" collection in Milan earlier this year. Read more here.

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