A new report from the Houston Energy Transition Initiative finds that the energy transition sector should commit $150 billion in capital by 2040. Photo via Getty Images

In Houston’s quest to become the world’s energy transition capital, the region should aim for $150 billion in capital earmarked for the sector by 2040, a new report says.

The report, released by the Houston Energy Transition Initiative, or HETI, and supported by consulting giant McKinsey & Co., indicates about $15 billion in energy transition capital is flowing into the region each year and about $25 billion is flowing out of the region. Of the $25 billion, oil and gas players with headquarters or a significant presence in Houston account for more than 80 percent.

“Increased energy transition capital commitment from energy incumbents raises investor confidence in Houston’s potential for energy transition leadership,” according to the report.

The report identifies several primary targets for energy transition capital, such as:

  • Carbon capture, utilization, and storage (CCUS)
  • Hydrogen
  • Renewable fuels
  • Chemicals and plastics
  • Power generation

Such sources would represent $85 billion of the $150 billion in energy transition capital envisioned for 2040, according to the report. The $150 billion in capital would be the equivalent of up to 80 percent of capital expenditures by the U.S. oil and gas sector in 2021.

The $150 billion “would help the diversity of the city’s economy, workforce, and infrastructure,” the report says.

“There is no geography in the world better positioned than Houston to lead the transition to and integration of abundant, low-carbon energy solutions,” Jane Stricker, executive director of HETI, says in a news release from the Greater Houston Partnership.

The report says that to reach the $150 billion mark, the Houston area must step up the amount of investment in local energy transition startups. As it stands now, more energy transition capital (about $25 billion) is going out of the region than is coming into the region (about $15 billion). Much of that capital supports startups.

Funding for energy transition ventures in the region needs to be supplied by players in venture capital, debt capital, and private equity, the report points out.

Aside from the money required to evolve into the world’s energy transition capital, the report notes that the region also needs to:

  • Become a talent and innovation hub. Among other things, this would involve attracting more startup incubators and accelerators, boosting recruitment at area and out-of-state universities, ramping up financial commitments from major energy companies here, and encouraging major energy companies with headquarters outside the region to base their energy transition operations here.
  • Increase marketing of Houston as a hub for financing of energy transition efforts. This would include reaching out to financiers outside Houston (in places such as New York City, the Middle East, and Singapore), holding energy transition events in Houston, and wooing energy transition companies and financiers.

“Houston’s status as the energy capital of the world, based on decades of leadership in energy markets, has fostered an experienced [private equity] and capital markets community,” says Kassia Yanosek, Houston- based partner and global leader in McKinsey’s energy and sustainability practices. “Our city’s financial sector leaders have great appetite to expand focus to the next investment wave — and face a pivotal opportunity in today’s evolving market to grow and scale energy transition-related endeavors.”

At Greentown Houston's first anniversary event, Mayor Sylvester Turner says he wants Houston to be a hub for hydrogen innovation. Photo via GreentownLabs/Twitter

Houston has all the ingredients to be a major hub for hydrogen innovation, mayor says

seeing green

The government is gearing up to dole out billions of dollars in funding to support innovation within hydrogen — and the city of Houston wants a chunk of that cash.

The Bipartisan Infrastructure Law, which was announced by the The U.S. Department of Energy to seek out opportunities in hydrogen, includes $8 billion to go toward establishing Regional Clean Hydrogen Hubs. At Greentown Houston's first anniversary event, Mayor Sylvester Turner announced he's determined to position the city as one of those hubs.

"Houston and the Gulf Coast are ideally suited to scale up and become a leader in the hydrogen economy," Mayor Turner says. "We have the knowledge, the workforce, and infrastructure to produce clean hydrogen."

"The Gulf Coast has the nation's largest concentration of hydrogen production assets, dedicated hydrogen pipeline infrastructure, and many industrial hydrogen customers," he continues. "I am confident we have the tools in our toolbox at our disposal right here in Texas — and especially right here in Houston — to lead the global energy transition initiative."

The city has made other efforts to advance Houston as an energy transition leader, including the Greater Houston Partnership establishing the Houston Energy Transition Initiative, led by Executive Director Jane Stricker.

"We have the right assets, the right infrastructure — all of that exists. This is where all of the big investment decisions get made in the energy industry," Stricker says on Greentown's panel that followed Mayor Turner's address.

She continues, adding that something that should be top of mind for the energy industry and local universities is the workforce.

"If we're going to create 600,000 jobs in Houston over the next 30 years through this energy transition — and that's what we need to do — we need to be thinking about what those jobs are," she says on the panel.

Greentown's Low-Carbon Hydrogen Accelerator, which kicked off earlier this month, is another ongoing initiative in collaboration with the city to support innovation within hydrogen and low-carbon technologies.

"In Houston, we dream big, and make big things happen," Mayor Turner says on the future of Houston as a leader in this space. "When we play as a team, we do well."

This week's roundup of Houston innovators includes Allie Danziger of Ampersand Professionals, Jane Stricker of the Greater Houston Partnership, and Summer Reeves of Accenture's Houston Fjord Studio. Courtesy photos

3 Houston innovators to know this week

who's who

Editor's note: In this week's roundup of Houston innovators to know, I'm introducing you to three local innovators across industries — from energy to design innovation — recently making headlines in Houston innovation.


Allie Danziger, co-founder and CEO of Ampersand Professionals

The ongoing trend of businesses struggling to onboard new employees is likely going to continue through the new year. Allie Danziger shares what you need to know. Photo courtesy of Ampersand

The Great Resignation is among us, and companies need to respond accordingly, Allie Danziger, CEO and co-founder of Ampersand Professionals, writes in her guest column for InnovationMap.

"It has been particularly difficult to hire and retain Gen Z employees, the newest generation in the workforce, as we navigate the expectations of these employees, as compared to past generations," she writes. "Fortunately, businesses can bounce back from 'The Great Resignation' or protect themselves before they experience a similar mass exodus by taking the time to understand employees' preferences and motivations, and make a few small changes accordingly."

Danziger shares four tips with hiring and retaining talent in this challenging time. Click here to read more.

Jane Stricker, executive director of the Houston Energy Transition Initiative at the GHP

The former BP executive will lead Houston's role in the energy transition as the executive director of the Houston Energy Transition Initiative, a brand new position at the Greater Houston Partnership. Photo courtesy of GHP

Jane Stricker, a longtime Houston-based executive at oil and gas giant BP, has been tapped to be the executive director of the Houston Energy Transition Initiative and senior vice president of energy transition.

The Greater Houston Partnership unveiled HETI in June. As the partnership explained then, HETI "aims to drive sustainable and equitable economic growth in the Greater Houston region through a portfolio of technology, policy, and market initiatives that scale and export solutions for realizing a low-carbon energy world."

"This is an exciting time for Houston and our energy ecosystem as we focus our efforts on leading the global energy transition," Stricker says. "The challenge of our lifetime is addressing this dual challenge of meeting increased global energy demand while confronting global climate change. Houston is known for solving problems that matter. I believe through innovation, collaboration, and focus, our region can lead the way and deliver solutions that change the world." Click here to read more.

Summer Reeves, director of Accenture's Houston Fjord studio

Summer Reeves says Houston is changing for the better when it comes to attracting design talent. Photo courtesy of Accenture

The winds have changed in Houston when it comes to attracting design talent, Summer Reeves — the director of Accenture's Houston Fjord studio — says on last week's episode of the Houston Innovators Podcast. Reeves is currently responsible for growing the team of Accenture's new Houston Fjord studio. She say she's excited for the way the design industry in Houston has developed. It's been second chair to Austin on the Texas landscape, but that's changing.

"There's a reason why Accenture is building a Fjord studio here in Houston — and now, versus in the past," Reeves says.

She describes Austin employers overly competitive for designers — making it hard to attract and retain design talent. This has caused a wave of designers coming to Houston. She's also seeing Houston employers — mostly in the energy industry — shift their thinking in hiring these types of positions. Click here to read more and stream the episode.

The former BP executive will lead Houston's role in the energy transition as the executive director of the Houston Energy Transition Initiative, a brand new position at the Greater Houston Partnership. Photo courtesy of GHP

Greater Houston Partnership names former BP exec to lead energy transition

seeing green

Jane Stricker, a longtime Houston-based executive at oil and gas giant BP, has been tapped to lead the Greater Houston Partnership's new initiative designed to boost the Bayou City's profile in the shift toward low-carbon energy.

The partnership announced Stricker's hiring November 11. She'll join the organization effective January 1 as executive director of the Houston Energy Transition Initiative (HETI) and senior vice president of energy transition.

The Greater Houston Partnership unveiled HETI in June. As the partnership explained then, HETI "aims to drive sustainable and equitable economic growth in the Greater Houston region through a portfolio of technology, policy, and market initiatives that scale and export solutions for realizing a low-carbon energy world."

A report from the University of Houston's Gutierrez Energy Management Institute, UH Energy, and the Center for Houston's Future suggests the region is poised to become the "low-carbon energy capital."

In a business-as-usual scenario, Houston's energy-based economy stands to lose anywhere from 270,000 to 650,000 jobs if it fails to act in response to the low-carbon transition, according to a partnership report published in June. But if Houston takes "decisive action" to lead the energy transition, the region could gain as many as 560,000 jobs.

Among other things, HETI says it will:

  • Jumpstart carbon-reduction efforts, such as carbon capture, hydrogen production, and battery technology.
  • Attract companies operating in spaces like wind energy, solar power, and biofuels.
  • Bolster companies involved in projects like development of electric vehicles, decarbonization of oil and natural gas, and production of geothermal energy.

It now will be Stricker's responsibility to oversee the multifaceted initiative, bringing together industry, academic, and community partners to advance the Houston area's role in global energy transition.

"Jane is a thought leader in the energy industry who brings an extensive knowledge of the global energy ecosystem and the pathways to a low-carbon future," Bob Harvey, president and CEO of the partnership, says in a news release. "She understands the importance of collaboration across the ecosystem to get results, and I am confident the work she will facilitate will position Houston as the global hub of the energy transition, driving our region's long-term economic success."

Stricker has spent more than 20 years at BP, most recently as a senior relationship manager working with an array of organizations on issues such as carbon capture and energy decarbonization. While at BP, she spearheaded the National Petroleum Council's 2019 study on carbon capture, use, and sequestration.

"This is an exciting time for Houston and our energy ecosystem as we focus our efforts on leading the global energy transition," Stricker says. "The challenge of our lifetime is addressing this dual challenge of meeting increased global energy demand while confronting global climate change. Houston is known for solving problems that matter. I believe through innovation, collaboration, and focus, our region can lead the way and deliver solutions that change the world."

Aside from her previous role at BP, Stricker is a contributing faculty member for the University of Houston's Sustainable Energy Development Program, an advisory board member of the Energy Industries Council Connect Energy USA, and a graduate of the Center for Houston's 2020 Future Leadership Forum.

Stricker takes the helm of the energy initiative at a critical time.

The International Energy Agency predicts energy-related carbon emissions will soar by more than 1.65 billion tons this year, or nearly 5 percent, driven in large part by coal-fueled generation of electricity. That would be the second largest rise in annual carbon missions in history.

In a report released earlier this year, the International Monetary Fund noted that additional public investments in infrastructure to support the move to net-zero emissions will need to equal roughly 2 percent of gross domestic product (GDP) over the next decade. That would easily amount to billions of dollars in global spending.

Taken together — the jump in carbon emissions and the need for more spending to combat them — the Global Commission on the Economy and Climate conservatively estimated in 2018 that the low-carbon economy could deliver at least $26 trillion in economic benefits through 2030. Lux Research forecasts the global market solely for carbon capture and recycling could reach $70 billion by 2030.

Looking farther down the road, the United Nations Development Programme says a heightened commitment to green energy — propelled largely by low-carbon strategies — could boost global GDP by $98 trillion by 2050.

"The investments needed for low-carbon infrastructure are substantial but manageable, and economic recovery in the wake of the COVID-19 crisis presents an opportunity to speed up the low-carbon transition," the Global Commission on the Economy and Climate observes.

Greentown Labs CEO Emily Reichert called on members of Houston's energy community to speak at Greentown Houston's grand opening. Photo by Lee Bond/Greentown Labs

Overheard: Houston's energy sector welcomes Greentown Labs

eavesdropping in Houston

Greentown Houston is officially open for business, and it's safe to say the energy innovation community is excited about it. The 40,000-square-foot space is expecting to move its inaugural 30 companies in throughout the summer.

The grand opening event, which was streamed online with an outdoor invite-only event, took place on Earth Day and featured speakers from across the energy sector. The speakers represented some of the almost 30 corporate partners Greentown Houston has announced.

Click here to read more about the grand opening and take a peek inside the facility.

Missed the discussion or just want a refresher on on the highlights? Here are some significant overheard moments from the Greentown Houston Grand Opening.

"Houston has all the necessary ingredients and it has momentum."

Photo by Lee Bond/Greentown Labs

— Barbara Burger, vice president of innovation at Chevron and president of Chevron Technology Ventures. "Let's celebrate. And then let's get busy."

"Houston, as the energy capital of the world, has a moral obligation to reduce carbon emissions."

Photo by Lee Bond/Greentown Labs

— Mayor Sylvester Turner. "We need to invest in our innovation ecosystem and support the climatech and clean tech entrepreneurs who will be building Houston's new energy economy and creating the new jobs of tomorrow."

"Houston has the talent, know how, and can-do spirit to tackle the dual challenge of leading dual energy demand while aggressively lowering the carbon footprint."

Photo by Lee Bond/Greentown Labs

— Bob Harvey, president and CEO of the Greater Houston Partnership.

"Houston must remain the center of the future energy industry, and today is an important step in restoring that."

Photo by Natalie Harms/InnovationMap

— David Leebron, president of Rice University. "We look forward to our strong partnership."

"We can't solve climate change from the coasts. We need the whole United States to be engaged, and I'm bullish on Houston leading this transition for many reasons."

Photo by Lee Bond/Greentown Labs

— Emily Reichert, CEO of Greentown Labs. "Houston is home to world-leading energy organizations, incredible engineering strength, talent, and assets, that can, and frankly must, be redeployed to decarbonize resources."

"This is a city that does not stand still."

Photo by Lee Bond/Greentown Labs

— Ajay Mehta, General Manager of Shell. "At Shell, we have a mission to reach net zero emissions by 2050."

"For bp, partnering with Greentown Labs represents living our purpose to reimagine energy."

Photo by Lee Bond/Greentown Labs

— Jane Stricker, senior relationship manager, regions, cities and solutions at bp.

"Innovation is like oxygen, and it breathes life into hope and possibility. The work we are doing around the energy transition is hard and challenging, and frankly is going to take all of us."

Photo by Lee Bond/Greentown Labs

— Darryl Willis, corporate vice president, energy industry, at Microsoft. "We think that the future is all about partnerships and platforms, and our mission is to help from Microsoft's vantage point to accelerate the energy transition and to help the city of Houston around its aspirations around the energy transition as well."

"We appreciate being part of not only maintaining Houston's position as the energy capital of the world but also establishing it as the energy transition capital of the world."

Photo by Lee Bond/Greentown Labs

— Scott Burns, vice president of retail innovation, customer experience, and market intelligence at NRG.

"[Greentown Houston] will provide this center of gravity for the energy community to come together and work toward the transition plan."

Photo by Lee Bond/Greentown Labs

— Tim Ong, head of innovation at BHP Petroleum. "


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3 Houston innovators to know this week

who's who

Editor's note: In this week's roundup of Houston innovators to know, I'm introducing you to three local innovators across industries — from esports to biomaterials — recently making headlines in Houston innovation.

Zimri Hinshaw, CEO of BUCHA BIO

Zimri T. Hinshaw, CEO of BUCHA BIO, joins the Houston Innovators Podcast to discuss how he's planning to scale his biomaterials startup to reduce plastic waste. Photo courtesy of BUCHA BIO

After raising a seed round of funding, BUCHA BIO is gearing up to move into its new facility. The biomaterials company was founded in New York City in 2020, but CEO Zimri T. Hinshaw shares how he started looking for a new headquarters for the company — one that was more affordable, had a solid talent pool, and offered a better quality of life for employees. He narrowed it down from over 20 cities to two — San Diego and Houston — before ultimately deciding on the Bayou City.

Since officially relocating, Hinshaw says he's fully committed to the city's innovation ecosystem. BUCHA BIO has a presence at the University of Houston, Greentown Labs, and the East End Maker Hub — where the startup is building out a new space to fit the growing team.

"By the end of this month, our laboratories will be up and running, we'll have office space adjacent, as well as chemical storage," Hinshaw says on the Houston Innovators Podcast. Listen to the episode and read more.

Kelly Klein, development director of Easter Seals Greater Houston

A nonprofit organization has rolled out an esports platform and event to raise awareness and funding for those with disabilities. Photo via Easter Seals

For many video games is getaway from reality, but for those with disabilities — thanks to a nonprofit organization —gaming can mean a lot more. On Saturday Dec. 3 — International Day of Persons with Disabilities — from 1 to 9 pm, Easter Seals Greater Houston will be joining forces with ES Gaming for the inaugural Game4Access Streamathon.

Gaming helps enhance cognitive skills, motor skills, improve mental well-being, and can help reduce feelings of social isolation due to the interactive nature of playing with others.

“This is really a unique way for (people) to form a community without having to leave their house, and being part of an inclusive environment,” says Kelly Klein, development director of Easter Seals Greater Houston. ”The adaptive equipment and specialized technology just does so many miraculous things for people with disabilities on so many levels — not just gaming. With gaming, it is an entrance into a whole new world.” Read more.

John Mooz, senior managing director at Hines

Levit Green has announced its latest to-be tenant. Photo courtesy

Levit Green, a 53-acre mixed-use life science district next to the Texas Medical Center and expected to deliver this year, has leased approximately 10,000 square feet of commercial lab and office space to Sino Biological Inc. The Bejing-based company is an international reagent supplier and service provider. Houston-based real estate investor, development, and property manager Hines announced the new lease in partnership with 2ML Real Estate Interests and Harrison Street.

“Levit Green was meticulously designed to provide best-in-class life science space that can accommodate a multitude of uses. Welcoming Sino Biological is a testament to the market need for sophisticated, flexible space that allows diversified firms to perform a variety of research,” says John Mooz, senior managing director at Hines, in a press release. “Sino is an excellent addition to the district’s growing life science ecosystem, and we look forward to supporting their continued growth and success.” Read more.Read more.

Houston company premieres new platform for gig economy workforce

tech support

As the independent workforce continues to grow, a Houston-based company is aiming to connect these workers with companies that match their specific needs with a new digital platform.

FlexTek, a 14-year old recruiting and staffing company, launched a first gig site tailored to the needs of the individual worker. The platform, Workz360, is built to be able to manage projects, maintain quality control, and manage billing and year-end financial reporting.The company is also working to expanding the platform to provide infrastructure to assist independent workers with education, access to savings programs, tax compliance through vetted third-party CPA firms, and hopes in the future to assist with access to liability and medical insurance.

With a younger workforce and a shifting economy, the “gig economy,” which is another way to describe how people can earn a living as a 1099 worker, offers an alternative option to the corporate grind in a post-pandemic workscape. Chief Marketing Officer Bill Penczak of Workz360 calls this era “Gig 2.0,” and attributes the success of this type of workforce to how during the COVID-19 pandemic people learned how to work, and thrive in non-traditional work environments. The site also boasts the fact it won’t take a bite out of the worker’s pay, which could be an attractive sell for many since other sites can take up to 65 percent of profit.

“In the past few years, with the advent of gig job platforms, the Independent workers have been squeezed by gig work platforms taking a disproportionate amount of the workers’ income,” said FlexTek CEO and founder Stephen Morel in a news release. “As a result, there has been what we refer to as ‘pay padding,’ a phenomenon in which workers are raising their hourly or project rates to compensate for the bite taken by other platforms.

"Workz360 is designed to promote greater transparency, and we believe the net result will be for workers to thrive and companies to save money by using the platform,” he continues.

As the workforce has continued to change over the years, a third of the current U.S. workforce are independent workers according to FlexTek, workers have gained the ability to have more freedom where and how they work. Workz360 aims to cater to this workforce by believing in a simple mantra of treating your workers well.

“We’ve had a lot of conversations about this, but we like the Southwest Airlines model,” Penczak tells InnovationMap. “Southwest Airlines treats their people very well, and as a result those employees treat the passengers really well. We believe the same thing holds true. If we can provide resources, and transparency, and not take a bite out of what the gig worker is charging, then we will get the best and the brightest people since they feel like they won’t be taken advantage of. We think there is an opportunity to be a little different and put the people first.”

NASA launches new research projects toward astronauts on ISS

ready to research

For the 26th time, SpaceX has sent up supplies to the International Space Station, facilitating several new research projects that will bring valuable information to the future of space.

On Saturday at 1:20 pm, the SpaceX Dragon spacecraft launched on the Falcon 9 rocket from NASA’s Kennedy Space Center in Florida — bringing with it more than 7,700 pounds of science experiments, crew supplies, and other cargo. The anticipated docking time is Sunday morning, and the cargo spacecraft will remain aboard the ISS for 45 days, according to a news release from NASA.

Among the supplies delivered to the seven international astronauts residing on the ISS are six research experiments — from health tech to vegetation. Here's a glimpse of the new projects sent up to the scientists in orbit:

Moon Microscope

Image via NASA.gov

Seeing as astronauts are 254 miles away from a hospital on Earth — and astronauts on the moon would be almost 1,000 times further — the need for health technology in space is top of mind for researchers. One new device, the Moon Microscope, has just been sent up to provide in-flight medical diagnosis. The device includes a portable hand-held microscope and a small self-contained blood sample staining tool, which can communicate information to Earth for diagnosis.

"The kit could provide diagnostic capabilities for crew members in space or on the surface of the Moon or Mars," reads a news release. "The hardware also may provide a variety of other capabilities, such as testing water, food, and surfaces for contamination and imaging lunar surface samples."

Fresh produce production

Salads simply aren't on the ISS menu, but fresh technology might be changing that. Researchers have been testing a plant growth unit on station known as Veggie, which has successfully grown a variety of leafy greens, and the latest addition is Veg-05 — focused on growing dwarf tomatoes.

Expanded solar panels

Thanks to SpaceX's 22nd commercial resupply mission in 2021, the ISS installed Roll-Out Solar Arrays. Headed to the ISS is the second of three packages to complete the panels that will increase power for the station by 20 to 30 percent. This technology was first tested in space in 2017 and is a key ingredient in future ISS and lunar development.

Construction innovation

Image via NASA.gov

Due to the difference of gravity — and lack thereof — astronauts have had to rethink constructing structures in space. Through a process called extrusion, liquid resin is used to create shapes and forms that cannot be created on Earth. Photocurable resin, which uses light to harden the material into its final form, is injected into pre-made flexible forms and a camera captures footage of the process, per the news release.

"The capability for using these forms could enable in-space construction of structures such as space stations, solar arrays, and equipment," reads the release. "The experiment is packed inside a Nanoracks Black Box with several other experiments from the Massachusetts Institute of Technology Media Lab and is sponsored by the ISS National Lab."

Transition goggles

It's a bizarre transition to go from one gravity field to another — and one that can affect spatial orientation, head-eye and hand-eye coordination, balance, and locomotion, and cause some crew members to experience space motion sickness, according to the release.

"The Falcon Goggles hardware captures high-speed video of a subject’s eyes, providing precise data on ocular alignment and balance," reads the release.

On-demand nutrients

Image via NASA.gov

NASA is already thinking about long-term space missions, and vitamins, nutrients, and pharmaceuticals have limited shelf-life. The latest installment in the five-year BioNutrients program is BioNutrients-2 , which tests a system for producing key nutrients from yogurt, a fermented milk product known as kefir, and a yeast-based beverage, per the release.

"The researchers also are working to find efficient ways to use local resources to make bulk products such as plastics, construction binders, and feedstock chemicals. Such technologies are designed to reduce launch costs and increase self-sufficiency, extending the horizons of human exploration," reads the release.