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DOE dishes out funding to 2 Houston carbon caption projects

In all, DOE recently allocated $518 million to 23 CCUS projects in the U.S. Photo via Getty Images

Two Houston companies have received federal funding to develop carbon capture and storage projects.

Evergreen Sequestration Hub LLC, a partnership of Houston-based Trace Carbon Solutions and Jacksonville, Mississippi-based Molpus Woodlands Group, got more than $27.8 million from the U.S. Department of Energy for its Evergreen Sequestration Hub project in Louisiana. DOE says the project is valued at $34.8 million.

The hub will be built on about 20,000 acres of timberland in Louisiana’s Calcasieu and Beauregard parishes for an unidentified customer. It’ll be capable of storing about 250 million metric tons of carbon dioxide.

Trace Carbon Solutions, a subsidiary of Trace Midstream Partners, is developing CCS assets and supporting midstream infrastructure across North America. Molpus, an investment advisory firm, buys, manages, and sells timberland as an investment vehicle for pension funds, college endowments, foundations, insurance companies, and high-net-worth investors.

Another Houston company, RPS Expansion LLC, has received $9 million from the DOE to expand the River Parish Sequestration Project. Following the expansion, the project will be able to store up to 384 million metric tons of carbon dioxide. The CCUS hub is between Baton Rouge and New Orleans.

DOE says the River Parish expansion is valued at $11.8 million.

Also receiving DOE funding is a CCUS project to be developed off the coast of Corpus Christi. The developer is the Southern States Energy Board, based in Peachtree Corners, Georgia.

DOE is chipping in more than $51.1 million for the nearly $64 million hub. It’s estimated that about 35 million metric tons of carbon dioxide emissions are released each year from about 50 industrial and power facilities within a 100-mile radius of Mustang Island. Port Aransas is located on the 18-mile-long island.

In all, DOE recently allocated $518 million to 23 CCUS projects in the U.S.

“The funding … will help ensure that carbon storage projects — crucial to slashing harmful carbon pollution — are designed, built, and operated safely and responsibly across all phases of development to deliver healthier communities as well as high-quality American jobs,” Brad Crabtree, assistant DOE secretary for fossil energy and carbon management, says in a news release.

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A View From HETI

Freedom CNG, a distributor of compressed renewable natural gas, has closed three acquisitions in recent months. Photo courtesy Freedom CNG.

Houston-based Freedom CNG, a provider and distributor of compressed renewable natural gas, has acquired ComTech Energy, a Canada-based provider of on-site mobile refueling for compressed renewable natural gas. The purchase price wasn’t disclosed.

The acquisition allows Freedom CNG to adopt a hub-and-spoke operational model, allowing customers to move away from fixed fueling infrastructure with low-carbon energy solutions across North America, according to a news release.

In conjunction with the deal, ComTech President James Ro has joined Freedom CNG as chief commercial and strategy officer.

“As we expand our footprint in low‑carbon fuel solutions, acquiring ComTech Energy marks an important step in enhancing our ability to deliver efficient, innovative fueling infrastructure,” Nick Kurtenbach, president and chief financial officer of Freedom CNG, said in the release. The acquisition, he added, “allows us to offer a more comprehensive suite of solutions that support the transition to cleaner energy and meet the evolving needs of our customers.”

Freedom CNG’s North American footprint now spans more than 25 fueling stations for compressed renewable natural gas and over 60 operations and maintenance sites across the U.S. and Canada.

This is the third acquisition for Freedom CNG in the last two months. It also recently acquired Colorado-based X3 CNG and Utah-based Lancer Energy, according to a representative from Freedom CNG, this summer. The company services regional trucks, buses and service vehicles, as well as heavy construction, agriculture, data centers and other sectors.

Last year, funds affiliated with alternative asset manager Apollo bought a majority stake in Freedom CNG, which was founded in 2012. The value of the deal wasn’t disclosed.

“Freedom has developed a strong portfolio of [renewable natural gas] fueling stations with meaningful growth potential driven by established relationships with blue-chip customers and attractive new development opportunities,” Apollo partner Scott Browning said in 2024.

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