Collaboration key to preparing energy transition workforce, experts say

Experts say the strategic alliance among industry, education and government serves as the cornerstone for building a skilled, resilient and future-ready energy workforce in Houston. Image via houston.org

As energy companies and the Houston region look to prepare and develop the workforce necessary to support the energy transition, experts say collaboration among companies, educational institutions, the federal government and other organizations is fundamental.

Experts from across the Houston region discussed how organizations and companies are preparing the workforce of the future during a panel discussion at the Greater Houston Partnership’s UpSkill Works Forum on Aug. 3.

According to a BCG analysis, most Houston-based oil and gas workers will rely on just nine capability sets by 2050. “To ensure they have the right mix of competencies for the future, oil and gas companies will need to carry out a skills-based mapping exercise, starting with defining the expertise and capabilities needed to succeed in their chosen business areas, markets, and geographies,” a BCG publication on the energy transition states.

Maria Suarez-Simmons, senior director of energy policy for Energy Workforce & Technology Council, encourages companies to take a “holistic view” of the occupations they offer and adjust them to the needs of the future of energy. Saurez-Simmons added that energy companies should create messaging that communicates there are opportunities for all, not solely engineers.

Scott Marshall, senior group director for the people team in the Americas at Worley, said “We are in the transition today”, adding that companies should start reaching out to students at a much younger age to showcase available career paths if they are going to meet the demand. Worley offers several early career programs, including a global graduate development programs and STEM workshops for children.

Stacy Putman, manager of advocacy, leadership, workforce development and strategic projects at INEOS, shared how INEOS collaborates with schools, working with K – 12th-grade teachers to educate them on opportunities in sustainability, energy transition and manufacturing. Putnam also stressed the importance of being involved in an employee’s career journey.

In alignment with this strategic evolution, a growing number of companies are adopting skills-based hiring as a means to diversify their talent pool. This shift from the traditional reliance on four-year college degrees highlights the need for specialized skills aligned with the demands of the energy transition.

Raul Camba, managing director and Latin America lead at Accenture, helps energy companies navigate the energy transition but also focuses on the industry’s adaptability within its operations, strategies and workforce. Camba said another tool to close the skills gap is to identify adjacent skills or related and transferable skills a worker already has and build upon them. Camba said forums like this one where employers can openly share the tools and resources they’re utilizing will help companies find innovative solutions and colleges and universities design programs based on the region’s needs.

Experts say the strategic alliance among industry, education and government serves as the cornerstone for building a skilled, resilient and future-ready energy workforce in Houston.

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This article originally ran on the Greater Houston Partnership's Houston Energy Transition Initiative blog. HETI exists to support Houston's future as an energy leader. For more information about the Houston Energy Transition Initiative, EnergyCapitalHTX's presenting sponsor, visit htxenergytransition.org.

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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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