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

Researchers have secured $3.3 million in funding to develop an AI-powered subsurface sensing system aimed at improving the safety and efficiency of underground power line installation. Photo via Getty Images

Researchers from the University of Houston — along with a Hawaiian company — have received $3.3 million in funding to explore artificial intelligence-backed subsurface sensing system for safe and efficient underground power line installation.

Houston's power lines are above ground, but studies show underground power is more reliable. Installing underground power lines is costly and disruptive, but the U.S. Department of Energy, in an effort to find a solution, has put $34 million into its new GOPHURRS program, which stands for Grid Overhaul with Proactive, High-speed Undergrounding for Reliability, Resilience, and Security. The funding has been distributed across 12 projects in 11 states.

“Modernizing our nation’s power grid is essential to building a clean energy future that lowers energy costs for working Americans and strengthens our national security,” U.S. Secretary of Energy Jennifer M. Granholm says in a DOE press release.

UH and Hawaii-based Oceanit are behind one of the funded projects, entitled “Artificial Intelligence and Unmanned Aerial Vehicle Real-Time Advanced Look-Ahead Subsurface Sensor.”

The researchers are looking a developing a subsurface sensing system for underground power line installation, potentially using machine learning, electromagnetic resistivity well logging, and drone technology to predict and sense obstacles to installation.

Jiefu Chen, associate professor of electrical and computer engineering at UH, is a key collaborator on the project, focused on electromagnetic antennas installed on UAV and HDD drilling string. He's working with Yueqin Huang, assistant professor of information science technology, who leads the geophysical signal processing and Xuqing Wu, associate professor of computer information systems, responsible for integrating machine learning.

“Advanced subsurface sensing and characterization technologies are essential for the undergrounding of power lines,” says Chen in the release. “This initiative can enhance the grid's resilience against natural hazards such as wildfires and hurricanes.”

“If proven successful, our proposed look-ahead subsurface sensing system could significantly reduce the costs of horizontal directional drilling for installing underground utilities,” Chen continues. “Promoting HDD offers environmental advantages over traditional trenching methods and enhances the power grid’s resilience.”

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