Houston energy giant makes moves on emissions with Astros deal, new tech in the Permian Basin

oxy updates

Oxy's Permian Basin carbon capture project has a news partner and the Astros are thinking about their climate goals. Rendering via 1pointfive.com

Houston-based energy company Occidental is capturing a ton of attention with its carbon capture initiative.

Occidental’s carbon capture subsidiary, 1PointFive, recently said it’s developing a carbon capture and sequestration hub on a 55,000-acre site along the Gulf Coast in Southeast Texas. The hub will be able to hold about 1.2 billion metric tons of carbon dioxide.

The Bluebonnet Hub, expected to be operating in 2026, will be located in Chambers, Liberty, and Jefferson counties near coastal refineries, chemical plants, and manufacturing facilities. Chambers County is the Houston metro area.

“This hub is located between two of the largest industrial corridors in Texas so captured CO2 can be efficiently transported and safely sequestered,” says Jeff Alvarez, president of sequestration at 1PointFive. “Rather than starting from scratch with individual capture and sequestration projects, companies can plug into this hub for access to shared carbon infrastructure.”

Home run on emissions

Another development at 1PointFive involves the Houston Astros baseball team.

The Astros recently agreed to buy CO2 removal credits from 1PointFive’s carbon capture plant being built in Ector County, whose county seat is Odessa. Under this deal, CO2 captured by the company’s equipment will be sequestered in underground saline reservoirs that aren’t affiliated with oil and gas production.

Over the next three years, the Astros will use the removal credits to help the team achieve a carbon-neutral footprint at Minute Maid Park.

“We remain committed to continuous improvement of our stadium for our fans, and purchasing carbon removal credits is an important investment for us,” Marcel Braithwaite, senior vice president of business operations for the Astros, says in a news release.

Progress in the Permian Basin

Furthermore, 1PointFive is making progress on its carbon capture plant being developed in West Texas’ Permian Basin. The company recently tapped Orlando, Florida-based Siemens Energy to supply two compressors for the plant, which is set to capture more than 500,000 metric tons of CO2 per year.

Vicki Hollub, president and CEO of Occidental, says in a news release that the Permian Basin plant will help meet the Paris Agreement’s Paris climate change goals and reduce global emissions.

The Permian Basin facility, with an estimated price tag of $800 million to $1 billion, is on track to open by late 2024.

Cemvita reported a successful pilot program on its gold hydrogen project in the Permian Basin. Photo courtesy of Cemvita

Houston cleantech company sees shining success with gold hydrogen

bling, bling

Houston-based cleantech startup Cemvita Factory is kicking things into high gear with its Gold Hydrogen product.

After successfully completing a pilot test of Gold Hydrogen in the oil-rich Permian Basin of West Texas, Cemvita has raised an undisclosed amount of funding through its new Gold H2 LLC spin-out. The lead investors are Georgia-based equipment manufacturer Chart Industries and 8090 Industries, an investment consortium with offices in New York City and Los Angeles.

Gold Hydrogen provides carbon-neutral hydrogen obtained from depleted oil and gas wells. This is achieved through bioengineering subsurface microbes in the wells to consume carbon and generate clean hydrogen.

Cemvita says it set up Gold H2 to commercialize the business via licensing, joint ventures, and outright ownership of hydrogen assets.

“We have incredible conviction in next-generation clean hydrogen production methods that leverage the vast and sprawling existing infrastructure and know-how of the oil and gas industry,” Rayyan Islam, co-founder and general partner of 8090 Industries, says in a news release.

Traditional methods of producing hydrogen without greenhouse gas emissions include electrolysis powered by renewable sources like wind, solar or water, according to Cemvita. However, production of green hydrogen through normal avenues eats up a lot of energy and money, the startup says.

By contrast, Cemvita relies on depleted oil and gas wells to cheaply produce carbon-free hydrogen.

“The commercialization and economics of the hydrogen economy will require technologies that produce the hydrogen molecule at a meaningful scale with no carbon emissions. Gold H2 is leading the charge … ,” says Jill Evanko, president and CEO of Chart Industries.

Investors in Cemvita include Oxy Low Carbon Ventures, an investment arm of Houston-based Occidental Petroleum, as well as BHP Group, Mitsubishi, and United Airlines Ventures.

Oxy Low Carbon Ventures and United Airlines Ventures are financing Cemvita’s work on sustainable jet fuel. United Airlines operates a hub at George Bush Intercontinental Airport Houston.

Founded by brother-and-sister team Moji and Tara Karimi in 2017, Cemvita uses synthetic biology to turn carbon dioxide into chemicals and alternative fuels.

Oxy is working on a direct air carbon capture facility in the Permian Basin — and is committing to up to a $1 billion price tag for the project. Rendering via 1pointfive.com

Houston oil and gas company reveals details on $1B carbon capture facility

seeing green

Ramping up its investment in clean energy, Houston-based Occidental Petroleum plans to spend up to $1 billion on a facility in the Permian Basin that will pull carbon dioxide from the air.

During a March 23 investor update, executives at Occidental laid out their strategy for developing direct air carbon capture plants and carbon sequestration hubs.

Executives said Occidental’s first direct air capture facility is set to be built in the Permian Basin, a massive oil-producing region in West Texas and southeastern New Mexico. The industrial-scale facility, with an estimated price tag of $800 million to $1 billion, is on track to open in late 2024. Construction is supposed to start later this year.

Occidental expects as many as 135 of its direct air carbon capture plants to be operating by 2035.

According to the International Energy Agency, direct air capture (DAC) technologies extract carbon dioxide, or CO2, directly from the atmosphere. The CO2 can be permanently stored in deep geological formations, or it can be used in food processing or can be combined with hydrogen to produce synthetic fuels.

As of November, 19 DAC facilities were operating around the world, according to the energy agency. Occidental envisions the Permian Basin plant pulling 1 million metric tons of CO2 from the air each year — an amount that would far exceed the combined capacity of the 19 facilities that already are online.

Aside from DAC facilities, Occidental plans to put three carbon sequestration hubs online by 2025. These hubs take carbon dioxide from the air and several other sources, such as factories and power plants, and then transport and store it using shared infrastructure, the Oil and Gas Climate Initiative explains.

Beyond the three locations already accounted for, several more Occidental sequestration hubs are in the works. Some of those sites will be in the Gulf Coast region.

During the investor presentation, Occidental President and CEO Vicki Hollub reiterated that she believes the company’s 1PointFive carbon capture initiative will ultimately create more value than its petrochemical business. The petrochemical unit generated $5.2 billion in revenue last year.

Hollub called carbon capture “a sure opportunity” for Occidental.

“There’s just not going to be enough other alternatives for CO2 offsets for corporate America and … corporations around the world,” Hollub said.

Occidental already is gaining value from DAC. For instance, aircraft manufacturer Airbus recently said it would buy 400,000 metric tons of carbon removal credits from Occidental’s first DAC facility over a four-year span.

Occidental is among numerous companies — including Houston energy heavyweights BP, ExxonMobil, and Shell — seeking to capitalize on the carbon capture and sequestration market. Fortune Business Insights forecasts the value of the global market will grow from $2 billion in 2021 to $7 billion by 2028.

Houston-based Data Gumbo is entering a new phase of business within oil and gas.Courtesy of Data Gumbo

Houston oil and gas blockchain company expands into new sector

Building blockchain

With a new partnership, Houston-based Data Gumbo Corp. will move into a new sector within oil and gas, allowing the startup to tap into the Permian Basin.

Austin-based Antelope Water Management, which provides sustainable water solutions within the O&G industry, has partnered with Data Gumbo on its blockchain network, called GumboNet™, allowing the Houston startup to go beyond the drilling sector. The partnership means Data Gumbo will have life operations in both onshore and offshore drilling, including in the shale basins, according to a news release.

"As an integrated water management company in the Permian Basin providing tailored management services for water infrastructure, we look forward to incorporating Data Gumbo into each of our business units," says Dustin Brownlow, CEO of Antelope, in the release. "Data Gumbo is a game changer enabling us to provide customers, vendors, and regulators the best experience that smart contracts can offer."

According to the release, this partnership is the first use of a blockchain platform for water management services in U.S. shale sites in the industry.

"Data Gumbo was the first blockchain in offshore drilling and now we are the first in oil and gas water management. We anticipate continuing to break ground across the industry as companies realize the vast benefits we afford them such as security, certainty of data and, most of all, savings to the bottom line," says Andrew Bruce, CEO of Data Gumbo, in the release.

The technology allows for valuable cost-saving initiatives, including lower overhead expenditures, fewer outstanding payments between parties, and data certainty for business transactions.

Data Gumbo operates as a blockchain-as-a-service company, where clients across midstream, drilling and completions opt into the network service. The company was founded in 2016 and recently closed a $6 million Series A round.

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World's largest student startup competition names teams for 2025 Houston event

ready, set, pitch

The Rice Alliance for Technology and Entrepreneurship has announced the 42 student-led teams worldwide that will compete in the 25th annual Rice Business Plan Competition this spring.

The highly competitive event, known as one of the world’s largest and richest intercollegiate student startup challenges, will take place April 10–12 at Houston's The Ion. Teams in this year's competition represent 34 universities from four countries, including one team from Rice.

Graduate student-led teams from colleges or universities around the world will present their plans before more than 300 angel, venture capital, and corporate investors to compete for more than $1 million in prizes. Last year, top teams were awarded $1.5 million in investment and cash prizes.

The 2025 invitees include:

  • 3rd-i, University of Miami
  • AG3 Labs, Michigan State University
  • Arcticedge Technologies, University of Waterloo
  • Ark Health, University of Chicago
  • Automatic AI, University of Mississippi and University of New Orleans
  • Bobica Bars, Rowan University
  • Carbon Salary, Washington University in St. Louis
  • Carmine Minerals, California State University, San Bernardino
  • Celal-Mex, Monterrey Institute of Technology and Higher Education
  • CELLECT Laboratories, University of Waterloo
  • ECHO Solutions, University of Houston
  • EDUrain, University of Missouri-St. Louis
  • Eutrobac, University of California, Santa Cruz
  • FarmSmart.ai, Louisiana State University
  • Fetal Therapy Technologies, Johns Hopkins University
  • GreenLIB Materials, University of Ottawa
  • Humimic Biosystems, University of Arkansas
  • HydroHaul, Harvard University
  • Intero Biosystems, University of Michigan
  • Interplay, University of Missouri-Kansas City
  • MabLab, Harvard University
  • Microvitality, Tufts University
  • Mito Robotics, Carnegie Mellon University
  • Motmot, Michigan State University
  • Mud Rat, University of Connecticut
  • Nanoborne, University of Texas at Austin
  • NerView Surgical, McMaster University
  • NeuroFore, Washington University in St. Louis
  • Novus, Stanford University
  • OAQ, University of Toronto
  • Parthian Baattery Solutions, Columbia University
  • Pattern Materials, Rice University
  • Photon Queue, University of Illinois, Urbana-Champaign
  • re.solution, RWTH Aachen University
  • Rise Media, Yale University
  • Rivulet, University of Cambridge and Dartmouth College
  • Sabana, Carnegie Mellon University
  • SearchOwl, Case Western Reserve University
  • Six Carbons, Indiana University
  • Songscription, Stanford University
  • Watermarked.ai, University of Illinois, Urbana-Champaign
  • Xatoms, University of Toronto

This year's group joins more than 868 RBPC alums that have raised more than $6.1 billion in capital with 59 successful exits, according to the Rice Alliance.

Last year, Harvard's MesaQuantum, which was developing accurate and precise chip-scale clocks, took home the biggest sum of $335,000. While not named as a finalist, the team secured the most funding across a few prizes.

Protein Pints, a high-protein, low-sugar ice cream product from Michigan State University, won first place and the $150,000 GOOSE Capital Investment Grand Prize, as well as other prizes, bringing its total to $251,000.

Tesla recalling more than 375,000 vehicles due to power steering issue

Tesla Talk

Tesla is recalling more than 375,000 vehicles due to a power steering issue.

The recall is for certain 2023 Model 3 and Model Y vehicles operating software prior to 2023.38.4, according to the National Highway Traffic Safety Administration.

The printed circuit board for the electronic power steering assist may become overstressed, causing a loss of power steering assist when the vehicle reaches a stop and then accelerates again, the agency said.

The loss of power could required more effort to control the car by drivers, particularly at low speeds, increasing the risk of a crash.

Tesla isn't aware of any crashes, injuries, or deaths related to the condition.

The electric vehicle maker headed by Elon Musk has released a free software update to address the issue.

Letters are expected to be sent to vehicle owners on March 25. Owners may contact Tesla customer service at 1-877-798-3752 or the NHTSA at 1-888-327-4236.

Houston space tech companies land $25 million from Texas commission

Out Of This World

Two Houston aerospace companies have collectively received $25 million in grants from the Texas Space Commission.

Starlab Space picked up a $15 million grant, and Intuitive Machines gained a $10 million grant, according to a Space Commission news release.

Starlab Space says the money will help it develop the Systems Integration Lab in Webster, which will feature two components — the main lab and a software verification facility. The integration lab will aid creation of Starlab’s commercial space station.

“To ensure the success of our future space missions, we are starting with state-of-the-art testing facilities that will include the closest approximation to the flight environment as possible and allow us to verify requirements and validate the design of the Starlab space station,” Starlab CEO Tim Kopra said in a news release.

Starlab’s grant comes on top of a $217.5 million award from NASA to help eventually transition activity from the soon-to-be-retired International Space Station to new commercial destinations.

Intuitive Machines is a space exploration, infrastructure and services company. Among its projects are a lunar lander designed to land on the moon and a lunar rover designed for astronauts to travel on the moon’s surface.

The grants come from the Space Commission’s Space Exploration and Aeronautics Research Fund, which recently awarded $47.7 million to Texas companies.

Other recipients were:

  • Cedar Park-based Firefly Aerospace, which received $8.2 million
  • Brownsville-based Space Exploration Technologies (SpaceX), which received $7.5 million
  • Van Horn-based Blue Origin, which received $7 million

Gwen Griffin, chair of the commission, says the grants “will support Texas companies as we grow commercial, military, and civil aerospace activity across the state.”

State lawmakers established the commission in 2023, along with the Texas Aerospace Research & Space Economy Consortium, to bolster the state’s space industry.

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