As energy majors explore different approaches to the energy transition, many concentrate on different emerging technologies. But electrification is a common theme in large corporate strategies.
Electrification substitutes fossil fuels as power sources with renewable energy sources such as solar and wind energy. It sees use for powering homes, industry, and vehicles — but the latter category still has some hurdles to overcome in the U.S. and in Texas.
The big challenge, according to Chevron Corp.’s Jim Gable, is scaling technology. Gable is the president of Houston-based Chevron Technology Ventures, which both invests in new startups and matches the company’s intellectual property with entrepreneurs looking for a new idea.
“We've had this initial burst in the last five years, folks investing in lower carbon technology — a lot on the generation side, some on the transportation side," Gable said. "And at the end of the day, now we have to scale those technologies."
Federal data from 2022 — the most recent year on record — shows the Lone Star State ranks third in registered EVs, behind California and Florida. As of this week, Harris County has the most registered EVs in Texas, with over 37,000 registered according to DFW Clean Cities.
Nationally, EVs are an increasing presence on American roads. Estimates from Kelley Blue Book show that Americans purchased a record 1.2 million EVs, comprising 7.6% of the total U.S. market — an increase from 5.9% in 2022.
However, other economic factors may ward off some corporate interest in Houston. Data from San Francisco-based Stable Auto, which develops EV charging software, shows that Texans pay $0.50 per kilowatt hour at a charging station, above the national average of $0.45 per kWh and nearly triple the price paid in Nebraska.
“Whether we're electrifying the light-duty vehicle drive trains, or heavy-duty vehicles in the future, you're gonna need a lot more electrons,” Gable said. “And so what are the transmission and distribution technologies that are going to be needed on that side? Increasing the reliability and quantity of the electrons we deliver is a large need for society.”
The U.K.-based Shell PLC, which has its North American headquarters in Houston, emphasized EV charging in its energy transition strategy update, which was released March 14. But the company said it is concentrating new charging stations in Europe and China, which are assessed as faster-growing electric mobility markets.
“We have a major competitive advantage in terms of locations, as our global network of service stations is one of the largest in the world,” Shell reported.
Outlook reports for 2024 show other corporations entering the EV market through their power sources, namely lithium-ion batteries. Spring-based Exxon Mobil Corp. (NYSE: XOM) launched its new Mobil Lithium brand in November with plans to become a leader in lithium production for electric vehicles by 2030.
“To strengthen their control over the supply chain, nearly 80% of surveyed O&G executives are considering securing clean energy manufacturing and critical mineral rights, thereby leveraging their expertise in subsurface and reservoir management and their regulatory knowledge,” Deloitte reported in a 2024 analysis.
From a policy standpoint, Houston made some steps toward transport electrification under previous Mayor Sylvester Turner.
The nonprofit Evolve Houston, which was created through the city’s Climate Action Plan and funded by Detroit-based General Motors Co. (NYSE: GM) and London-based BP PLC (NYSE: BP), has awarded microgrants to 13 community organizations proposing electric mobility infrastructure and vehicle projects.
New Mayor John Whitmire appointed one of Evolve’s founding members, Elizabeth Gonzalez Brock, as the new head of the Metropolitan Transit Authority of Harris County, or Houston Metro.
