Management consulting giant McKinsey & Co. plans to spend $100 million over the next decade to pump up Houston’s decarbonization economy.
McKinsey says the initiative will, among other things, focus on:
- Promoting innovations like carbon capture, utilization, and storage (CCUS) and green hydrogen
- Revamping business models for carbon-heavy companies
- Ramping up the community of local startups involved in energy transition
- Developing talent to work on decarbonization
As part of this program, McKinsey has set up a decarbonization hub in its Houston office, at 609 Main St.
“Decarbonization will lead to a new chapter of economic development, while also addressing a critical problem of climate change,” McKinsey partner Nikhil Ati says.
Global decarbonization efforts over the next three decades will require a $100 trillion investment, according to Utility Dive. Houston, home to 40 percent of publicly traded oil and gas companies, stands to gain a substantial share of that opportunity.
McKinsey’s Houston office has worked for several years on Houston’s energy transition initiatives. For instance, the firm helped produce a study and a whitepaper on energy transition here. The whitepaper outlines Houston’s future as the “epicenter of a global clean hydrogen hub.”
“Texas is the nation’s largest renewable energy producer, home to half of the nation’s hydrogen pipelines, and its companies have unparalleled capabilities in building and operating complex projects,” McKinsey senior partner Filipe Barbosa says. “This is Houston’s moment in time on the global stage.”
McKinsey estimates a Houston-based global hub for clean hydrogen that’s in place by 2050 could generate 180,000 jobs and create an economic impact of $100 billion.