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McKinsey makes acquisition, Shell slows solar, and more trending Houston innovation news

Here's what news trended this week on EnergyCapital. Photo via Getty Images

Editor's note: From recent M&A activity to a recent report on AI, these are the top headlines that resonated with EnergyCapital readers on social media and daily newsletter this week.

Shell shrinks renewable portfolio yet again with latest divestment

Shell’s Savion subsidiary, which the energy giant acquired in 2021, plans to sell about one-fourth of its solar generation and storage assets. Photo via shell.us

In a move aimed at focusing more on its oil and gas business, Houston-based Shell USA continues to scale back its wind and solar energy portfolio.

The Reuters news service reported February 29 that Shell’s Savion subsidiary, which the energy giant acquired in 2021, plans to sell about one-fourth of its solar generation and storage assets. These assets represent as much as 10.6 gigawatts of generation and storage capacity.

This development follows the completion in early February of deals for Kansas City, Missouri-based Savion to sell its 50 percent stake in a solar energy project in Ohio and for Houston-based Shell Wind Energy to sell its 60 percent stake in a wind farm in Texas. Continue reading.

Houston rises as emerging hub for $6B global AI in oil and gas industry, per new report

The research outfit says North America leads global AI growth in oil and gas, with Houston playing a pivotal role. Image via Shutterstock

Houston is emerging as a hub for the development of artificial intelligence in the oil and gas industry — a global market projected to be worth nearly $6 billion by 2028.

This fresh insight comes from a report recently published by ResearchAndMarkets.com. The research outfit says North America leads global AI growth in oil and gas, with Houston playing a pivotal role.

“With AI-driven innovation at its core, the oil and gas industry is set to undergo a profound transformation, impacting everything from reservoir optimization to asset management and energy consumption strategies — setting a new standard for the future of the sector,” says ResearchAndMarkets.com. Continue reading.

McKinsey acquires Houston-area co. to enhance sustainability services

According to McKinsey data, more than $3.5 trillion will be invested in green hydrogen, carbon capture, renewable energy, and other projects that are working toward net-zero transition by 2050. Photo via ses-estimating.com

A global management consulting company has executed on an acquisition key to its plans amid the energy transition.

McKinsey & Company announced the acquisition of Strategic Estimating Systems, a Sugar Land-based consulting firm specializing in cost estimation for oil, gas, and chemical process industries. The acquisition provides McKinsey with enhanced benchmarking capabilities across capital project management — especially within the energy transition. The terms of the deal were not disclosed.

"The capital projects ecosystem is presented with a once-in-a-generation chance to aid in transforming economies to achieve net zero," Justin Dahl, partner and global leader of McKinsey & Company's Capital Analytics, says. Continue reading.

Houston orgs name student, industry teams for CERAWeek pitch competition

Nearly 40 climatetech startups will pitch at this upcoming CERAWeek event from HETI, the Rice Alliance, and TEX-E. Photo by Natalie Harms

The Rice Alliance for Technology and Entrepreneurship, the Houston Energy Transition Initiative and the Texas Entrepreneurship Exchange for Energy announced the 39 energy ventures that will pitch at 2024 Energy Venture Day and Pitch Competition during this month's CERAWeek.

The ventures are focused on driving efficiency and advancements toward the energy transition and will each present a 3.5-minute pitch before venture capitalists, corporate innovation groups, industry leaders, academics, and service providers during CERAWeek's Agora program.

The pitch competition is divided up into the TEX-E university track, in which Texas student-led energy startups compete for $50,000 in cash prizes, and the industry ventures track. Continue reading.

Houston-based female business leader named changemaker amid energy transition

EDP Renewables North America announced its CEO Sandhya Ganapathy has been named to CNBC’s inaugural Changemakers: Women Transforming Business list.

A Houston renewable energy developer CEO has scored a prestigious spot on a list of changemakers.

EDP Renewables North America announced its CEO Sandhya Ganapathy has been named to CNBC’s inaugural Changemakers: Women Transforming Business list. Ganapathy was recognized for ESG and ED&I Initiatives while helping to advance the clean energy transition.

The new list recognizes female leaders at companies and philanthropic organizations that have achieved impactful financial and business milestones.

“Thank you to CNBC for recognizing the leadership and groundbreaking initiatives the women on this list have achieved,” the company said in a statement on LinkedIn. “As our renewable energy market sector continues to progress and expand, we will need everyone in our industry to be a #changemaker to ensure #reliable, #costeffective, #homegrown energy is accessible to all.” Continue reading.

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A View From HETI

Scott Gale, executive director for Halliburton Labs, has died after a hard-fought battle with cancer. Photo via Rice University

Houston energy and innovation leader Scott Gale died on September 24 after a years-long fight with cancer. He was 40 years old.

Gale was the inaugural executive director for Halliburton Labs, which launched in 2020. Prior to that role, he lead global strategy initiatives for Halliburton. A Brigham Young University graduate, he received his MBA from Rice University in 2019, where he co-founded the Jones Student Association for Executives. After his graduation, he served on the the Rice Business Alumni Association Board and the Energy Advisory Board for the Rice Alliance Clean Energy Accelerator.

"Scott made an impact with his incredible kindness, energy, and talent," Dale Winger, managing director at Halliburton Labs, tells InnovationMap. "Scott was passionate about his family, his friends, his community, and his work. He provided incredible creativity and drive to bring Halliburton Labs to life within Halliburton, and despite a terrible cancer diagnosis, Scott continued to collaborate and build connections that launched the inaugural Houston Energy and Climate Startup Week. Work and play were always fun with Scott. His generosity and dedication to strengthen the Houston innovation ecosystem will be missed, yet his legacy endures.”

Gale was also a voice actor and the co-host of two podcasts: Rice University's Owl Have You Know Podcast, which shares experiences of Rice's business community, and the Curiosity podcast, which explored optimism and curiosity with guests and co-host Brad Rossacci.

"A rebellious optimist at his core, Scott believed we need a biased toward action, a mission focused belief system, and a healthy dose of rebellion for good measure," Rossacci, who serves as creative director at Accenture, says. "Carving his own path in the universe, Scott discovered his life’s work and unceasingly committed himself to helping humanity deepen their curiosity, building connective tissue across society, and advancing the future of energy on the shoulders of the giants who came before him. Ultimately, fulfilling his infinite ambitions and creating an echo that will reverberate in the cosmos for eternity."

One month ago, he stepped away from his role at Halliburton Labs, sharing his cancer journey in a message shared on LinkedIn. In the post, he encouraged his whole community to "go out and live a life that echoes," and ended with "onward," something Gale regularly imparted when he spoke on progress within energy and innovation.

Earlier this month during the Houston Energy and Climate Startup Week, which Gale was instrumental in creating but unable to attend due to the progression of his illness, the Energy Tech Nexus awarded its Nexus Community Award to Gale, and his father, Andrew Gale, accepted the award on his behalf.

"He is very focused on the community in Houston and the tech industry," Andrew Gale said about his son when accepting the award, "he feels so honored to be given the opportunity to be able to have an influence."

In addition to his father and his mother, JoAnna, Scott is survived by his wife of 18 years, Nicole, and their four children, as well as his seven siblings — Siara, Shanna, Spencer, Seth, Shalya, Sam, and Shane. In honor of his brother, Sam launched a GoFundMe campaign for his nieces and nephew's education, and donations are currently being accepted.

In his obituary, his family shared something Scott regularly said as he battled his cancer with countless hospital visits and experimental treatments: “I’m not a doctor, but I’m pretty sure if you die, the cancer dies at the same time. That’s not a loss. That’s a draw.”

Earlier this year, he joined the Houston Innovators Podcast to discuss Houston Energy and Climate Startup Week and call for collaboration within the ecosystem.

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This article originally ran on InnovationMap.

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