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.

---

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

Two Houston-based companies made it into this new clean tech accelerator. Photo via greentownlabs.com

Houston clean tech startup accelerator announces 7 companies to inaugural cohort

seeing green

The Low-Carbon Hydrogen Accelerator announced its inaugural class of clean tech startups — two of which hail from right here in Hosuton.

In all, seven startups have been chosen to participate this year in the Low-Carbon Hydrogen Accelerator, which was announced in November. The six-month accelerator program offers collaboration and engagement opportunities with the Electric Power Research Institute and its member utilities, as well as with Shell. Through the accelerator, the institute and Shell will provide startups with two innovation paths: a technology validation track and a technology demonstration track.

The accelerator — part of the Green Go program, affiliated with Greentown Labs — is aimed at coming up with innovations in low-carbon hydrogen production, storage, and distribution.

“Accelerating low-carbon hydrogen technologies is an essential part of achieving global net-zero targets by 2050,” Neva Espinoza, vice president of energy supply and low-carbon resources at the Electric Power Research Institute, says in a news release.

The inaugural LCHA cohort includes:

Advanced Ionics, based in Milwaukee, is enabling green hydrogen production without the green premium.
Arco Technologies from Bologna, Italy, is developing a proprietary Anion Exchange Membrane electrolyzer with the lowest capital expenditures and operating expenses possible today.
Based in Manchester in the United Kingdom, Clean Power is developing a novel, low-cost, highly durable hydrogen polymer electrolyte membrane fuel cell delivering zero-emission electricity.
Element Resources, based in Houston, is enabling compressed hydrogen storage tank technology.
Another local company, Smartpipe Technologies is developing a robust self-monitored repurposed pipeline system for hydrogen with minimal environmental disruption.
SPEC Sensors from California is creating a robust and reliable meshed sensor network for hydrogen leak detection and line-monitoring systems.
Canadian company RUNWITHIT Synthetics is creating a live, digital twin modeling platform that generates decision-support data for regional hydrogen-demand scenarios.

Element Resources, which produces hydrogen from renewables for mobility, power production, and energy storage, is collaborating with Zhifeng Ren, M.D. Anderson chair professor in physics and director of the Texas Center for Superconductivity at the University of Houston.

The other Houston startup, Smartpipe Technologies, announced earlier this month that Canadian pipeline company Enbridge had made a $6.6 million investment in the startup.

For 2022, the accelerator received applications from 88 startups in 18 countries. The five other participants this year are from California; Wisconsin; Alberta, Canada; Italy; and the United Kingdom.

Aside from the Electric Power Research Institute, Shell USA, and Greentown, the accelerator’s partners are the City of Houston and the Urban Future Lab at New York University’s Tandon School of Engineering.

“Creating a robust hydrogen economy will require a systems-oriented approach and unparalleled cooperation between corporate partners and emerging companies,” says Ryan Dings, chief operating officer and general counsel at Greentown Labs.

Greentown operates startup incubators in Somerville, Massachusetts, and Houston.

Among this week's top news was an article about how some of TMCx's Digital Health cohort that have made strategic partnerships in Houston. Cody Duty/TMC

5 most popular innovation stories in Houston this week

What's trending

Editor's note: All types of news trended this week — health, tech, real estate, energy and more. Readers gravitated toward news about the TMCx Demo Day, downtown coworking projects en route to Houston, overheard quotes from oil and gas leaders, and more.

These are the 3 downtown Houston coworking concepts expecting to deliver by end of 2020

Downtown Houston has over 100,000-square-feet of new coworking space expected to open by the end of 2020. Shobeir Ansari/Getty Images

Recently, Houston got a "needs improvement" on its coworking space report card — but the tide is changing as more and more coworking spaces plan to open in town — especially in the downtown sector.

Houston's current coworking space volume ranked it No. 15, according to a report from Colliers International, which fell behind Dallas and Austin. However, Houston has many future projects due to deliver in the next 18 months or so — including over 100,000 square feet of space in downtown alone. Continue reading the story.

Houston entrepreneur launches an app that matches patients to their ideal therapist

Ryan Schwartz realized online dating was easier than finding a therapist. He created a tool to change that. Courtesy of Mental Health Match

Nearly five years ago, Ryan Schwartz sat in a coffee shop in crisis mode. His mother had just died suddenly and he was struggling to find an appropriate therapist. Across the table, his friend sat making a profile on a dating app. Quickly, her endeavor was complete and she was ready to swipe right, but Schwartz was still on the hunt for mental help.

"In two minutes she could have a profile matching her with a partner potentially for the rest of her life and I was sitting there for hours and hours trying to find a therapist," he recalls. "I thought it should be easier to find a therapist than a life partner. That's what sent me on my journey."

That journey reached a watershed last month when Schwartz launched Mental Health Match, a website designed to pair patients with their ideal therapist. The idea gained traction as Schwartz described it to people he met and found that many said they had experienced similar difficulties in finding the right practitioner for their needs. Continue reading the story.

Overheard: Oil and gas experts weigh in on the future of low-carbon energy and Houston's role in the movement

From Rex Tillerson's thoughts on leadership and politics to Houston's role in the low-carbon energy movement, check out these powerful quotes from the 2020 KPMG Global Energy Conference. Getty Images

As the energy capital of the world, Houston can't get complacent. The oil and gas industry is changing — carbon is out and finding clean energy alternatives is in.

At the 2020 KPMG Global Energy Conference on June 5 and 6, hundreds of energy professionals listened to the O&G elite — even including former Secretary of State and former ExxonMobil CEO Rex Tillerson — give their two cents about the revolution. Day two of the conference featured the Houston Low Carbon Energy Climate Summit by the Center for Houston's Future. Continue reading the story.

TMCx companies plant Houston roots with pilots, partnerships, and more

At TMCx's Demo Day, the cohort's companies boasted of local deals and accomplishments. Courtesy of TMC

At the conclusion of TMCx's recent Digital Health cohort — the most international group to date — there was only one Houston company among the 19. However, most of that group have developed a presence in Houston throughout the program.

Besides just being based here in Houston for four months, TMCx associate director, Lance Black, says the city has a lot to offer these startups.

"Why Houston? Why are these companies coming from everywhere to be here? Three big reasons," he says to the crowd at Demo Day. "The size and scale of the Texas Medical Center, the diversity of Houston, and the willingness and hunger of Houstonians wanting to be involved in innovation." Continue reading the story.

3 Houston innovators to know this week

These three movers and shakers in innovation are ones to know going into this week. Courtesy photos

This week's Houston innovators to know covers all the bases, from a freshly started startup to one that closed a multimillion-dollar raise. Here's who in Houston innovation that you need to know. Continue reading the story.

Overheard: Oil and gas experts weigh in on the future of low-carbon energy and Houston's role in the movement

Eavesdropping in Houston

As the energy capital of the world, Houston can't get complacent. The oil and gas industry is changing — carbon is out and finding clean energy alternatives is in.

In case you missed it, here are a few powerful quotes from both days of the program — from Houston's role in the low-carbon energy movement to Tillerson's leadership expertise.

"Texas is one of those places where you can just get stuff done.”

— Cindy Yeilding, senior vice president at BP, says Texans are willing to collaborate on this. In the "Visions of our Energy Future" panel during the Low Carbon Energy Summit on Thursday, June 6, she predicted Houston will be a net zero carbon city by 2040 or 2035.

“One of the things we need to focus on is being able to attract and retain talent.”

— Mary Anne Brelinsky, CEO of EDF Trading, stressing the importance of talent in the effort to keep Houston the energy capital of the world. Brelinsky advocated for corporations and its execs getting involved with local universities. "We're competing against Silicon Valley," she says in the panel.

"You’ve got the source, and you’ve got the sinks. … Houston is going to be one of our focal points.”

— Charlene Olivia Russell, vice president of Low Carbon Strategies at Oxy, on how Houston is set up for success when it comes to staying as a power player in the global low carbon energy platform, but, during the panel, she emphasizes collaboration needs to continue happening.

“When Shell agreed to sponsor this summit, it was pitched as a climate change summit. It was changed to a low-carbon summit because some people in this room are uncomfortable with the phrase 'climate change.'"

— Jason Klein, vice president of U.S. Energy Transition Strategy at Shell, says at the "Energy Transformations" panel during the Low Carbon Energy Summit on Thursday, June 6.

"If we want to be the leader and the energy capital of the world, we need to attract talent, capital investment, and innovation, and if the people are going to do those things think that we don’t even like to talk about those things, then they aren’t going to come here — they’re going to go to San Francisco.”

— Klein continues. The audience responded with a round of applause.

“I think it is important as Americans to remember that our greatest strength and the most important element to our national security has been that we are a nation that has many allies and friends. Our adversaries — Russia, China, North Korea, Iran — have no allies or friends.”

— Former Secretary of State Rex Tillerson who served as CEO of ExxonMobil from 2006 to 2016. Tillerson discussed a wide range of topics on Wednesday, June 5, at the 2020 KPMG Global Energy Conference in his fireside chat with Regina Mayor, global sector head and U.S. national sector leader of energy and natural resources at KPMG US. Click here to watch the full interview.

“We’re all a work in progress. You’re never done. I’m not done — I’m still a work in progress. If you have that view and you have that set of values that are never going to change … [then] I can keep developing as a human being.”

— Tillerson says of leadership lessons learned. He's an avid proponent of the Boy Scouts of America organization, and cited many valuable lessons he's learned about himself and about leading people from his involvement in the nonprofit.

Ad Placement 300x100

Ad Placement 300x600

CultureMap Emails are Awesome

Property Showcase

UH lands $3M grant to expand opioid overdose training

Overdose Response

The University of Houston has received a $3 million federal grant to expand its potentially life-saving overdose response training program.

The grant will support the Houston Health Department’s FRONTLINES program that trains first responders in Harris and Fort Bend counties to recognize opioid overdoses and administer the drug naloxone, which can counter the effects of an opioid overdose. The four-year grant comes from the Substance Abuse and Mental Health Services Administration within the Department of Health and Human Services, and it builds on eight years of work at UH, according to a release from the university.

As part of the expansion, UH medical, social work and psychology students will now also be able to take part in FRONTLINES’ overdose-response training. Some of the students will also be selected to help train community members, ultimately passing along the life-saving skills throughout Houston.

FRONTLINES is a collaboration with the City of Houston, the Fertitta College of Medicine, Baylor College of Medicine and the Houston Recovery Center. It was co-founded by Dr. James Bray, chair of the Department of Behavioral and Social Sciences at the University of Houston’s Tilman J. Fertitta Family College of Medicine, in 2018.

“When someone experiencing an opioid overdose is reached in time, naloxone can save their life,” Bray said in a news release. “We’ve seen the impact this training can have in Houston, and now we have an opportunity to extend that reach across Harris and Fort Bend counties, putting lifesaving knowledge and tools into the hands of more first responders.”

In 2024, around 450 residents of Harris County died from opioid overdoses, according to a Texas Department of State Health Services report. The report found that fentanyl was involved in about three-quarters of the deaths.

In 2025, UH also received a $2.6 million gift from the estate of Dr. William A. Gibson to expand its opioid research and develop a vaccine to help block fentanyl's effectiveness in entering the brain. The vaccine research is part of the Michael C. Gibson Addiction Research Program led by UH professor of psychology Therese Kosten and founding member of the UH Drug Discovery Institute Colin Haile. Read more about the grant and the vaccine’s development here.

Texas public libraries drive billions in economic impact, report finds

Beyond the Stacks

A new statewide study examining the economic impacts of public libraries has revealed they have generated over $3.8 billion in value to local communities — a return of $4.74 for every $1 invested.

The report, "Beyond the Stacks: Measuring the Economic and Community Value of Texas Public Libraries" was conducted by third-party consultancy JBK Economics Group in partnership with the Texas Library Association. About 300 of the total 513 public libraries in Texas participated in a survey for the report.

A major finding from the survey revealed that public libraries create billions in economic value for the communities they serve at a fraction of what it costs to pay employee wages and benefits, operating expenditures, and capital expenditures. About 11,200 jobs were directly and indirectly supported by public libraries, the report found.

The report found its $4.74 to $1 ratio by adding up the total value of the services provided by these institutions (an estimated $2.48 billion), and comparing it to total expenditures ($808.6 million).

"Public libraries had about the same economic footprint as the Texas motion picture and sound recording industry ($2.9 billion in Gross Domestic Product in 2024) or the Texas paper manufacturing industry ($4.0 billion in Gross Domestic Product in 2024)," the report said.

Many Houstonians are already familiar with Houston Public Library's expansive catalog and programming, but there are many more services the library provides that might fly under the radar. A few examples include access to subscription-based research databases and news outlets, and the Library of Things, a collection of cookware and bake ware, musical instruments, craft kits, and other tools or activity materials that are available for cardholders to borrow. Individual branches also provide free Wi-Fi, computer access, and meeting spaces.

Houston-area residents also have access to services at several other local libraries depending on their address, such as the Harris County Public Library, Montgomery County Memorial Library System, or Fort Bend County Libraries, just to name a few.

These are additional services and partnerships that Texas public libraries commonly provide, per the survey results:

93 percent provide voter registration and/or serve as voting locations
84 percent provide partnerships with local social services agencies
82 percent provide job application assistance
68 percent facilitate applications for government benefits
38 percent provide on-site social services
30 percent provide telehealth rooms and/or resources

"Public libraries are practical, welcoming and rooted in the communities they serve — they are unmistakably Texan," said Texas Library Association executive director Shirley Robinson in a press release. "This study puts a dollar value on the opportunities libraries create every day. Whether someone visits a library to apply for a job, access the internet, learn a new skill or simply find a new favorite book, those services create real value for Texans and their communities."

------

This article first appeared on CultureMap.com.

Rice University launches new venture fund for university-affiliated startups

startup support

Rice University has launched its new One Giant Leap Ventures Fund I, which will invest in the university’s spinouts and alumni-founded startups.

The early-stage institutional venture fund will function with a hybrid structure that allows for participation from traditional equity investors and philanthropic investors. According to the university, the fund will invest up to $500,000 per Rice-affiliated company.

To be considered eligible for funds, companies must use intellectual property licensed by the university or be led or founded by alumni.

One Giant Leap will draw on support and mentorship from Rice’s pool of 60,000 alumni and aims to create educational opportunities within the investment phases, work with graduate and undergraduate venture students, explore the scaling and commercialization of their ideas, and help investigate all the facets of venture capital.

“Rice alumni bring an extraordinary depth of experience as entrepreneurs, investors and industry leaders, and One Giant Leap creates new ways to put that expertise to work for the next generation of Rice innovators,” Stephen Bayer, vice president for development and alumni relations, said in a news release. “It strengthens the connection between our alumni and the university while giving them meaningful opportunities to mentor, advise and support Rice-affiliated companies as they grow.”

The fund held its first close in August and made its first investment into Rice brain health spinout Motif Neurotech. Led by Rice faculty member Jacob Robinson, Motif is working to commercialize a minimally invasive neurostimulator that targets treatment-resistant depression. In May, the FDA approved the company to move forward with its first clinical trial.

“Research produces breakthrough technologies and our academic environment forms outstanding entrepreneurs,” said Adrian Trömel, the fund’s managing director, a Rice alumnus and a startup founder who also serves as Rice’s interim chief innovation officer.

One Giant Leap joins the already long list of Rice-led programs that foster innovation, including the Liu Idea Labs for Innovation and Entrepreneurship’s Innovation Fellows and Summer Venture Studio, the Rice Alliance’s Business Plan Competition, the Ion District, Woodside Rice Decarbonization Accelerator, Rice Nexus, the Biotech Launchpad and RBL Ventures and its upcoming 200,000 square-foot research lab the Arc.

“With One Giant Leap, I am excited that we are creating a unique structure that brings together traditional investment and philanthropic participation to invest in and help catalyze our startups, engage the deep expertise within the Rice ecosystem and transform those strengths into real-world impact,” Trömel added in the release.

View All Listings

INNOVATIONMAP EMAILS ARE AWESOME