ready to grow

Houston carbon storage solutions company names new energy transition leader at pivotal time of growth

Graham Payne, the new director of energy transition at Caliche Development Partners II, is bullish on Houston. Photo courtesy

Graham Payne sees a bright future for the multibillion-dollar energy transition economy in Houston.

“It’s been said that Houston is poised, like no other city, to lead the energy transition. And I’d have to agree, because we have all the requisite natural resources, industry, and talent,” says Payne, the new director of energy transition at Houston-based carbon capture, utilization, and storage (CCUS) company Caliche Development Partners II.

Caliche and other Houston-based energy transition companies secured $6.1 billion in private funding last year, up 62 percent from 2022, according to the Greater Houston Partnership.

“As the region positions itself as the leader in the global energy transition, Houston has seen constant growth in annual energy transition investments over the last five years,” the partnership says.

Payne, a geologist, comes to Caliche after holding roles at Battelle and Schlumberger, among other companies. Houston-based Sudduth Search recruited Payne for the Caliche job.

In his new position, Payne is overseeing permitting and completion of a leased 4,000-acre site in Beaumont for sequestration of carbon dioxide. Payne will also work on current and potential gas storage projects, which he says “will continue to play an important role in the energy mix.”

At previous employers, Payne has tackled various aspects of CCUS.

“The really enticing part about this job is the chance to put it all together, and then operate a full-scale operation,” he says. “I want this technology to move firmly out of the research phase and start making a measurable difference against climate change.”

Payne says Caliche is capable of successfully straddling the worlds of CCUS, natural gas storage, and industrial gas storage. The Beaumont project alone will be able sequester at least 30 million metric tons of carbon, a Caliche estimate indicates.

In November, Caliche announced the acquisition of its first CCUS assets, Golden Triangle Storage and Central Valley Gas Storage, following a $268 million infusion of capital from Orion Infrastructure Capital and GCM Grosvenor. Orion maintains offices in Houston, New York City, and London. GCM is based in Chicago.

The Golden Triangle and Central Valley deals were valued at a combined $186 million.

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A View From HETI

Syzygy Plasmonics has partnered with Volycys on its NovaSAF 1 project, which will convert biogas into sustainable aviation fuel in Uruguay. Photo courtesy of Syzygy

Houston-based Syzygy Plasmonics has announced a partnership with Velocys, another Houston company, on its first-of-its-kind sustainable aviation fuel (SAF) production project in Uruguay.

Velocys was selected to provide Fischer-Tropsch technology for the project. Fischer-Tropsch technology converts synthesis gas into liquid hydrocarbons, which is key for producing synthetic fuels like SAF.

Syzygy estimates that the project, known as NovaSAF 1, will produce over 350,000 gallons of SAF annually. It is backed by Uruguay’s largest dairy and agri-energy operations, Estancias del Lago, with permitting and equipment sourcing ongoing. Syzygy hopes to start operations by 2027.

"This project proves that profitable SAF production doesn't have to wait on future infrastructure," Trevor Best, CEO of Syzygy Plasmonics, said in a news release. "With Velocys, we're bringing in a complete, modular solution that drives down overall production costs and is ready to scale. Uruguay is only the start."

The NovaSAF 1 facility will convert dairy waste and biogas into drop-in jet fuel using renewable electricity and waste gas via its light-driven GHG e-Reforming technology. The facility is expected to produce SAF with at least an 80 percent reduction in carbon intensity compared to Jet A fuel.

Syzygy will use Velocys’ microFTL technology to convert syngas into high-yield jet fuel. Velocys’ microFTL will help maximize fuel output, which will assist in driving down the cost required to produce synthetic fuel.

"We're proud to bring our FT technology into a project that's changing the game," Matthew Viergutz, CEO of Velocys, added in the release. "This is what innovation looks like—fast, flexible, and focused on making SAF production affordable."

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