A new strategic partnership between a Japanese multinational engineering company and a Houston-based cleantech company is a testament to how and why this region is leading the global energy transition.
Mitsubishi Heavy Industries and Syzygy Plasmonics, a deep-decarbonization company, have signed an investment agreement that enables Syzygy to scale and commercialize its technology poised to transform various industries by reducing costs and emissions. The agreement was executed through Mitsubishi Heavy Industries America (MHIA), headquartered in Houston.
“MHIA has been making moves to establish themselves as one of the leaders in the energy transition,” Syzygy Chief Executive Officer Trevor Best said in a press release. “Formalizing our relationship with them shows their commitment to helping scale cutting edge technology and opens up new avenues for Syzygy and MHIA to work together as we commercialize our industrial decarbonization platform.”
A crucial component in advancing global solutions for a low-carbon, energy-abundant future is financial investment. According to the Partnership’s Houston Energy Transition Initiative (HETI) report, Catalyzing the Energy Transition through Capital Formation, analysis by McKinsey Global Institute (MGI) and Network for Greening the Financial System (NGFS) suggests the U.S. in a net zero pathway will need to grow to $1.5 trillion per year by 2040.
Partnerships and investment agreements, such as the one between MHIA and Syzygy, exemplify why companies are opting to develop and expand clean technologies in the Energy Capital of the World.
“The Houston region is home to more than 4,700 energy-related firms, creating enormous potential for strategic relationships and opportunities to accelerate the commercialization and deployment of technologies critical to reducing emissions and advancing the global energy transition,” said Jane Stricker, the Partnership’s senior vice president of energy transition and executive director of HETI.
According to a Partnership analysis, Houston-based energy transition startups, businesses, and companies secured $6.1 billion in financing from private market investments in 2022, a 62 percent increase compared to 2021.
In the last few years, Houston has developed a fast-growing energy transition innovation ecosystem with more than 220 low-carbon and climatech startups, supported through strong collaboration across universities, incubators, investors and corporates to enable the development and scaling of impactful solutions to climate change.
Discover more about how Houston is leading the energy transition.