report card

Houston O&G services company lays out 2022 wins in new report

Houston-based oil and gas engineering and construction services provider McDermott outlines company's progress toward sustainability with new report. Image via mcdermott-investors.com

People. Planet. Progress. These are the first three words on the homepage for the a new report on sustainability from a Houston company.

Published this month, the 2022 Sustainability Report from McDermott — a global leader in engineering, procurement, and construction solutions for the energy industry — showcases the organization's dedication to developing sustainable solutions and innovative technologies.

"As our customers set ESG targets and work to meet and exceed their stakeholder expectations, they increasingly rely on McDermott for innovative methods and low-carbon solutions leveraging our more than 100 years of complex project experience," says Michael McKelvy, McDermott's president and CEO, in the news release. "With our customers, we are advancing global decarbonization through low-emissions options across our engineering, procurement and construction operations."

In the third annual report of its kind, McDermott highlights key climate and sustainability accomplishments achieved in 2022 in each of the three aforementioned focus areas.

People

  • Joining the Massachusetts Institute of Technology Energy Initiative to further ingrain McDermott with academic institutions collaborating to achieve net-zero targets
  • Launch of the RISE Female Development Program as part of the commitment to diversity and inclusion, and specifically, gender equality, across the organization

Planet

  • Voluntary, inaugural submission of ESG metrics to the Carbon Disclosure Project platform
  • Introduction of a new Carbon Footprint Dashboard that established a baseline against which 2023 KPIs and targets will be assessed to measure project-related emissions
  • 62 percent increase in project water reuse compared to 2020
  • Elimination of the need for plastic water bottles on all maritime fleet vessels with the introduction of onboard filtration systems

Progress

  • Awarding of Borwin6, the largest renewables energy project for McDermott to-date
  • Application of modular solution delivery practiced for over 50 years to construct and deliver Green and Blue hydrogen facilities
  • Scaling up technology for liquefied hydrogen spheres and development of fully integrated renewable and low-carbon hydrogen demonstration and framework in Texas
  • Completion of Phase 1 rollout of a vehicle utilization AI platform that measures emissions and provides fleet management teams with actionable insights

"McDermott is committed to sustainable, positive improvement in the communities where we operate, for our customers, and for our employees and the world," states Rachel Clingman, McDermott's executive vice president, sustainability, and governance in the announcement. "We matured our strategy and focus in 2022. We are aligned and working hand-in-hand with customers and stakeholders on specific plans and goals."

The 74-page report offers additional details on these initiatives, as well as commentary on the task force on climate-related financial disclosures compliance and environmental performance data for the year ended on December 31, 2022.

McDermott outlined its sustainability wins from 2022. Image via mcdermott-investors.com

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A View From HETI

Lydian Energy has secured financing for three battery storage system projects in Texas. Photo via Getty Images.

The Electricity Reliability Council of Texas’ grid will get a boost courtesy of Lydian Energy.

The D.C.-based company announced the successful financial close of its first institutional project financing totaling $233 million, backed by ING Group and KeyBank. The financing will support three battery energy storage system (BESS) projects in Texas.

Lydian is an independent power producer that specializes in the development, construction and operation of utility-scale solar and battery energy storage projects. The company reports that it plans to add 550 megawatts of energy—which can power approximately 412,500 homes—to the Texas grid administered by ERCOT.

“This financing marks an important step forward as we continue executing on our vision to scale transformative battery storage projects that meet the evolving energy needs of the communities we serve,” Emre Ersenkal, CEO at Lydian Energy, said in a news release.

The projects include:

Pintail 

  • Located in San Patricio county
  • 200 megawatts
  • Backed by ING

Crane

  • Located in Crane county
  • 200 megawatts
  • Backed by ING

Headcamp

  • Located in Pecos county
  • 150 megawatts
  • Backed by KeyBank

ING served as the lender for Pintail and Crane projects valued at a combined total of approximately $139 million.

KeyBank provided a $94 million financing package for the Headcamp project. KeyBanc Capital Markets also structured the financing package for Headcamp.

The three projects are being developed under Excelsior Energy Capital’s Fund II. Lydian’s current portfolio comprises 20 solar and storage projects, totaling 4.7 gigawatts of capacity.

“Our support of Lydian’s portfolio reflects ING’s focus on identifying strategic funding opportunities that align with the accelerating demand for sustainable power,” Sven Wellock, managing director and head of energy–renewables and power at ING, said in the release. “Battery storage plays a central role in supporting grid resilience, and we’re pleased to back a platform with strong fundamentals and a clear execution path.”

The facilities are expected to be placed in service by Q4 2025. Lydian is also pursuing additional financing for further projects, which are expected to commence construction by the end of 2025.

“These financings represent more than capital – they reflect the strong demand for reliable energy infrastructure in high-growth U.S. markets,” Anne Marie Denman, co-founding partner at Excelsior Energy Capital and chair of the board at Lydian Energy, added in the news release. “We’re proud to stand behind Lydian’s talented team as they deliver on the promise of battery storage with bankable projects, proven partners, and disciplined execution. In the midst of a lot of noise, these financings are a reminder that capital flows where infrastructure is satisfying fundamental needs of our society – in this case, the need for reliable, sustainable, domestic, and affordable energy.”

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