seeing green

How this Houston hospital is leading sustainable health care

Houston Methodist has several ongoing and future initiatives dedicated to reducing the hospital system's carbon footprint. Photo via HoustonMethodist.org

The United States health care sector contributes around 8.5 percent of greenhouse gas emissions, and one Houston hospital is committed to doing its part in reducing the industry's carbon footprint.

Houston Methodist, which recently opened a new tech hub in the Ion in midtown, has put in place several initiatives that reflect a more sustainable future for health care. The organization, which has seven hospitals in the Houston area, revealed some of these ongoing and planned projects at a recent event.

"Houston Methodist is always looking ahead on ways — not only of how we are taking care of patients — but what are we doing to create this environment and making the right efforts for sustainability, which we should all be doing," Michelle Stansbury, vice president of innovation and IT applications at Houston Methodist, says on this week's episode of the Houston Innovators Podcast. "We have to protect this environment that we have or it may not be the same for our children going forward."

The hospital system is currently in the design phase for installing solar panels on the Josie Roberts Administration Building in the Texas Medical Center. This project, in partnership with Houston Methodist's Energy and Facilities workgroup, will be the first step toward renewable energy consumption for the hospital.

Houston Methodist has already rolled out food composting initiatives at its locations in Sugar Land, The Woodlands, and Willowbrook locations — with plans for additional campuses to follow. According to a presentation from Jason Fischer, director of the Office of Sustainability at Methodist, the hospital system has already diverted nearly 100,000 lbs. of food waste from landfills.

Preventing waste recycling or reusing items is another focus of Houston Methodist, Stansbury says, from creating a workflow that enables reusing items that are able to be sanitized rather than thrown away to sustainably getting rid of expired materials. The U.S. has rules about the shelf lives of health care products, but other countries don't have as strict of mandates.

"We're sending (supplies) to other countries that can still use these products," Stansbury explains. "Knowing that we're helping to care for other individuals, to me I think it's very valuable. Other countries don't have the resources that the United States does."

Another notable initiative is incorporating greenspace for patients to enjoy. Houston Methodist is currently in construction on a 26-story hospital tower in the Texas Medical Center that will feature the Centennial Rooftop Garden on the 14th floor.

The Houston Methodist's sustainability team has several other initiatives both ongoing and in the works. More information is available on the hospital's website.

Centennial Tower’s 14th floor will feature an outdoor rooftop garden. Rendering courtesy of Houston Methodist

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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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