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Houston energy transition events not to miss, expert commentary on climate crisis, and more things to know

Houston energy transition folks — here's what to know to start your week. Photo via Getty Images

Editor's note: Start your week off strong with three quick things to catch up on in Houston's energy transition: a roundup of events not to miss, a new Houston energy executive to know, and more.

Events not to miss

Put these Houston-area energy-related events on your calendar.

    • Future of Energy Summit is Tuesday, February 6, at AC Hotel by Marriott Houston Downtown. Register.
    • The 2024 NAPE Summit is Wednesday, February 7, to Friday, February 9, at the George R. Brown Convention Center. It's the energy industry’s marketplace for the buying, selling and trading of prospects and producing properties. Register.
    • The De Lange Conference, taking place February 9 and 10 at Rice University's Baker Institute for Public Policy, is centered around the theme “Brave New Worlds: Who Decides? Research, Risk and Responsibility” this year. Register.
    • The Future of Energy Across the Americas: Helping Lawyers Predict and Adapt — the 2024 Houston Energy Conference — is February 27 to March 1. Register.
    • CERAWeek 2024 is Monday, March 18, to Friday, March 22, in the George R. Brown Convention Center. Register.

    ​Commentary: Chris Wood, co-founder of Moonshot Compost, on loving the climate apocalypse​

    Chris Wood knows that the last thing anyone wants to be reminded of in 2024 is the impending climate apocalypse, but, as he writes in his guest column, "There is a scientific consensus that the world climate is trending towards uninhabitable for many species, including humans, due in large part to results of human activity."

    He cites a report that 93 percent “believe that climate change poses a serious and imminent threat to the planet.”

    "Until recently reviewing this report, I was unaware that 93 percent of any of us could agree on anything," he writes. "It got me thinking, how much of our problem today is based on misunderstanding both the nature of the problem and the solution?" Read more.

    New hire: Bracewell names new partner to advise clients on energy transition tax incentives

    Bracewell announced that Jennifer Speck has joined the firm's tax department as a partner in the Houston office. Speck will advise clients on energy transition tax incentives.

    Some of her experiences include onshore and offshore wind, solar, carbon capture, clean hydrogen and clean fuel projects. She recently served as senior manager of tax and regulatory compliance at Navigator CO2 Ventures LLC. She graduated in 2010 with a B.F.A. in mental health psychology from Northeastern State University, and received her J.D., with honors, from The University of Tulsa College of Law in 2012. Read more.

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    A View From HETI

    Fervo Energy has closed financing to support the remaining construction costs for the first phase of Cape Station. Photo via fervoenergy.com

    Houston geothermal unicorn Fervo Energy has closed $421 million in non-recourse debt financing for the first phase of its flagship Cape Station project in Beaver County, Utah.

    Fervo believes Cape Station can meet the needs of surging power demand from data centers, domestic manufacturing and an energy market aiming to use clean and reliable power. According to the company, Cape Station will begin delivering its first power to the grid this year and is expected to reach approximately 100 megwatts of operating capacity by early 2027. Fervo added that it plans to scale to 500 megawatts.

    The $421 million financing package includes a $309 million construction-to-term loan, a $61 million tax credit bridge loan, and a $51 million letter of credit facility. The facilities will fund the remaining construction costs for the first phase of Cape Station, and will also support the project’s counterparty credit support requirements.

    Coordinating lead arrangers include Barclays, BBVA, HSBC, MUFG, RBC and Société Générale, with additional participation from Bank of America, J.P. Morgan and Sumitomo Mitsui Trust Bank, Limited, New York Branch.

    “As demand for firm, clean, affordable power accelerates, EGS (Enhanced Geothermal Systems) is set to become a core energy asset class for infrastructure lenders,” Sean Pollock, managing director, project Finance at RBC Capital Markets, said in a news release. “Fervo is pioneering this step change with Cape Station, a vital contribution to American energy security that RBC is proud to support.”

    The oversubscribed financing marks Cape Station’s shift from early-stage and bridge funding to a long-term, non-recourse capital structure, according to the news release.

    “Non-recourse financing has historically been considered out of reach for first-of-a-kind projects,” David Ulrey, CFO of Fervo Energy, said in a news release. “Cape Station disrupts that narrative. With proven oil and gas technology paired with AI-enabled drilling and exploration, robust commercial offtake, operational consistency, and an unrelenting focus on health and safety, we have shown that EGS is a highly bankable asset class.”

    Fervo continues to be one of the top-funded startups in the Houston area. The company has raised about $1.5 billion prior to the latest $421 million. It also closed a $462 million Series E in December.

    According to Axios Pro, Fervo filed for an IPO that would value the company between $2 billion and $3 billion in January.

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