Scott Gale, Executive Director at Halliburton Labs, discusses their investment in clean energy and climate tech innovation. They address Halliburton's controversial past, engagement with startups, the energy transition's trajectory, and Houston's evolving innovation ecosystem.
Halliburton Labs supports startups working on clean energy and climate tech outside of its core business.
Hydrocarbons will continue to play a role in the energy system, requiring investments in carbon capture and storage technologies.
Houston's entrepreneurial community, with its energy expertise, collaboration, and finance support, is driving innovation in energy and climate tech.
Deep dives
Halliburton Labs: Investing in Clean Energy and Climate Tech
Halliburton Labs is an initiative within the century-old oil field services company Halliburton that focuses on clean energy and climate tech. The program supports startups working on technologies outside of Halliburton's core businesses, such as industrial decarbonization, grid-scale energy storage, drone infrastructure, and advanced mining. Halliburton Labs provides funding, resources, and access to its network of experts and stakeholders to help these startups scale and solve engineering challenges. The program operates as a custom experience for each participant, creating a playbook tailored to their specific needs and goals. While Halliburton Labs does not have direct business development pathways with the startups, it offers expertise, connections, and curated problem-solving to support their growth. The program is part of Houston's innovation ecosystem, which boasts a wealth of talent, collaboration, and deep industry knowledge. With its focus on hard tech and collaboration, Halliburton Labs aims to contribute to the energy system of the future through innovation and sustainable practices.
The Role of Hydrocarbons in the Energy Transition
Despite the growing focus on renewable energy, hydrocarbons are expected to play a role in the energy system for the foreseeable future. While the size of the slice of the energy pie occupied by hydrocarbons may decrease, the overall demand for energy and materials will continue to grow. Hydrocarbons are not only used for energy production but also as feedstocks in various industries. Achieving a fully decarbonized future will require investments in carbon capture and storage (CCS) technologies to minimize the emissions footprint of the hydrocarbon industry. Additionally, innovations in materials and infrastructure will be necessary to ensure more sustainable practices in sectors such as concrete, steel, and agriculture. The energy transition requires a balance between affordable, reliable energy sources and the need to reduce carbon emissions.
Houston's Innovation Ecosystem and Climate Tech
Houston is a thriving hub for energy and climate tech innovation. The city benefits from a diverse talent pool, deep industry knowledge, and a collaborative mindset. Houston's energy expertise, including its oil and gas industry, provides a strong foundation for tackling the challenges of the energy transition. The city is witnessing increased interest and investments in early-stage infrastructure finance, particularly for technologies like hydrogen, carbon capture, and geothermal. Houston's entrepreneurial community is focused on the hard tech space, leveraging the knowledge and skills gained from scaling and operating large energy systems. Collaboration among various stakeholders, including startups, corporations, and investors, is crucial to drive innovation and sustainable practices in the Houston ecosystem.
The Challenges of Startup Building in Hard Tech
Building a successful startup in hard tech presents unique challenges. Founders must possess both technological expertise and entrepreneurial abilities, as they navigate partnerships, fundraise, and iterate quickly. Houston's entrepreneurial ecosystem recognizes the importance of supporting founders. Halliburton Labs, for example, places founders first and offers resources, funding, and industry connections to help early-stage startups overcome engineering challenges and scale their innovations. Startups in hard tech often require significant infrastructure financing, which may differ from traditional venture capital models. Houston's ecosystem, with its access to family offices and finance expertise, is well-positioned to support early-stage infrastructure finance and drive growth in the climate tech space.
The Future Outlook: Investing in Sustainable Technologies
The future outlook for sustainable technologies is promising, as the energy system requires innovative solutions to address climate change. Key areas of growth include carbon capture and storage (CCS), energy storage, materials innovation, and decarbonizing existing industries. Balancing the demand for affordable and reliable energy with the need for reduced carbon emissions is crucial. Investments in technologies like nuclear power, CCS, and circular economy practices are expected to contribute to a lower-emissions future. While challenges exist, including securing funding and navigating changing industry dynamics, entrepreneurs and investors play a pivotal role in advancing the development and adoption of sustainable technologies for a more sustainable future.
Halliburton is a complex company. It’s a 100-year-old oil field services giant, known for its extensive fracking operations and infrastructure expertise in the oil and gas sector. It is not an oil and gas distributor like Chevron or Exxon, but it is a powerhouse nonetheless. With their Halliburton Labs program, Scott and team are actively investing in and supporting the innovation ecosystem around clean energy and climate tech. They specifically focus on technologies that are outside the purview of Halliburton's core businesses.
Cody and Scott attempt to address all of this. The conversation covers Halliburton Labs' startup collaborations, the interplay between its core business and these ventures, Scott's views on Halliburton's past controversies, hydrocarbons' economic role, and the energy transition's trajectory. They conclude with reflections on Houston's evolving innovation ecosystem.
In this episode, we cover:
[04:00]: Scott's role and the founding of Halliburton Labs in 2020
[05:18]: Halliburton Labs supporting diverse energy sector startups
[07:01]: Unique engagement and equity model with startups at Halliburton Labs
[09:00]: Strategic differences between Halliburton Labs and typical corporate venture
[11:36]: Halliburton Labs' approach to IP rights and founder-centric model
[13:10]: Halliburton Labs' stance on supporting geothermal energy startups
[14:06]: Scott's vision of a diverse future energy system
[17:47]: The strategic origins of Halliburton Labs
[22:18]: Scott's perspective on Halliburton's evolution and its impact
[27:11]: The difficulty of eliminating industries in energy transition
[33:18]: The balance of cost, reliability, and sustainability in energy systems
[36:19]: Scott's outlook on the oil and gas sector's future
[39:28]: Challenges of reliability in transitioning to renewable energy
[41:56]: Various technologies' roles in the future energy landscape
[44:17]: The changing energy and climate tech ecosystem in Houston
[50:24]: Challenges in early-stage infrastructure finance
