M&A Moves

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 in a news release. "By integrating SES's unmatched capabilities, we're not only enhancing our sustainability services, such as carbon capture, but also expanding the scope of our existing Capital Excellence capabilities to crucial industries and wider geographies."

"This allows our clients to gain an independent perspective on value, cost, and timing at every phase of the capital project lifecycle, thereby improving bottom-up estimating," Dahl continues. "Committed to innovation and excellence, this acquisition empowers us to explore new value dimensions and further refine our expertise in bottom-up estimating for our clients."

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.

"We are thrilled to join McKinsey and expand our footprint to serve more clients on a larger scale," SES Founder and CEO Mike Monteith, who joins as Leader of McKinsey & Company's Capital Analytics, says in the release. "McKinsey is unparalleled in developing scalable and sustainable transformation strategies, leveraging industry leading insight and expertise in capital excellence.

"By working together, we will amplify our strengths, driving greater impact for clients at every stage of the capital project lifecycle, and delivering end-to-end transformations that create lasting value," he continues.

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A View From HETI

Rice University scientists' “recharge-to-recycle” reactor has major implications for the electric vehicle sector. Photo courtesy Jorge Vidal/Rice University.

Engineers at Rice University have developed a cleaner, innovative process to turn end-of-life lithium-ion battery waste into new lithium feedstock.

The findings, recently published in the journal Joule, demonstrate how the team’s new “recharge-to-recycle” reactor recharges the battery’s waste cathode materials to coax out lithium ions into water. The team was then able to form high-purity lithium hydroxide, which was clean enough to feed directly back into battery manufacturing.

The study has major implications for the electric vehicle sector, which significantly contributes to the waste stream from end-of-life battery packs. Additionally, lithium tends to be expensive to mine and refine, and current recycling methods are energy- and chemical-intensive.

“Directly producing high-purity lithium hydroxide shortens the path back into new batteries,” Haotian Wang, associate professor of chemical and biomolecular engineering, co-corresponding author of the study and co-founder of Solidec, said in a news release. “That means fewer processing steps, lower waste and a more resilient supply chain.”

Sibani Lisa Biswal, chair of Rice’s Department of Chemical and Biomolecular Engineering and the William M. McCardell Professor in Chemical Engineering, also served as co-corresponding author on the study.

“We asked a basic question: If charging a battery pulls lithium out of a cathode, why not use that same reaction to recycle?” Biswal added in the release. “By pairing that chemistry with a compact electrochemical reactor, we can separate lithium cleanly and produce the exact salt manufacturers want.”

The new process also showed scalability, according to Rice. The engineers scaled the device to 20 square centimeters, then ran a 1,000-hour stability test and processed 57 grams of industrial black mass supplied by industry partner Houston-based TotalEnergies. The results produced lithium hydroxide that was more than 99 percent pure. It also maintained an average lithium recovery rate of nearly 90 percent over the 1,000-hour test, showing its durability. The process also worked across multiple battery chemistries, including lithium iron phosphate, lithium manganese oxide and nickel-manganese-cobalt variants.

Looking ahead, the team plans to scale the process and consider ways it can sustain high efficiency for greater lithium hydroxide concentrations.

“We’ve made lithium extraction cleaner and simpler,” Biswal added in the release. “Now we see the next bottleneck clearly. Tackle concentration, and you unlock even better sustainability.

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