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DOE-backed summit to come to Houston to address carbon management

This fall, Rice University's research hub will host a DOE-backed event focused on carbon management. Photo via Rice/Facebook

Climate change-focused multimedia company Climate Now announced this week that it will partner with the city of Houston and Rice University to host a Carbon Management Community Summit this fall.

The summit, sponsored by the U.S. Department of Energy, will be held at Rice University Bioscience Research Collaborative on November 16 and 17, and will feature interactive workshops and breakout learning sessions, as well as presentations and discussions from excerpts in the field. It will also be broadcasted virtually for those who cannot attend the event in person.

Key topics are set to include:

  • Carbon management technologies
  • The regulatory process for implementation and oversight
  • How to get involved in project development
  • How to minimize and mitigate risks
  • How to ensure that projects benefit local communities and workforce development

The summit will also focus on the DOE's plans to launch the Responsible Carbon Management Initiative, which aims to promote safety and accountability in carbon management projects, according to the department.

"The Department of Energy is committed to supporting carbon management opportunities that build on Houston's current initiatives while also ensuring that communities and other impacted stakeholders are at the center of those efforts,” Brad Crabtree, assistant secretary of Fossil Energy and Carbon Management at the DOE, said in a statement. “Ultimately, communities and stakeholders can become project partners whose ideas and concerns can improve project design and outcomes, and ensure that tangible economic and environmental benefits flow to affected communities.”

The event also aims to bring the community, industry leaders, government officials and educational institutions to the same table.

"“It is our responsibility to develop innovative technologies and practices that will reduce carbon emissions, and as we do this, we also have a responsibility to address environmental injustices and lift up communities that have been historically under-resourced,” Mayor Sylvester Turner added in the statement.

The event, which has registration open online, is free to attend, and a speaker list and agenda are slated to be announced in the coming weeks. Participants can attend one or both days of the event. A Spanish translation will be available onsite and virtually.

The Carbon Management Community Summit marks the second time Rice and the DOE have partnered on an energy innovation event. In July the DOE announced $100 million in funding for its SCALEUP program at an event for more than 100 energy innovators at the university.

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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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