here's the deal

Investor acquires majority stake in Houston energy storage, CCS co.

Caliche says Sixth Street’s backing will enable it to expand its Golden Storage Triangle complex. Photo via calichestorage.com

Investment firm Sixth Street has purchased a majority stake in Houston-based Caliche Development Partners, which focuses on buying, developing, and operating natural gas and gas storage facilities along with carbon sequestration projects.

Financial terms weren’t disclosed.

The deal includes Caliche’s Golden Triangle Storage facilities and carbon sequestration project in Beaumont, and its Central Valley Gas Storage facilities in Princeton, California.

Caliche says Sixth Street’s backing will enable it to expand its Golden Storage Triangle complex, including the addition of two natural gas caverns.

Caliche’s leadership will continue to oversee day-to-day operations and remain investors in the company. All employees in Caliche’s Texas and California offices and at its facilities are staying aboard.

“We continue to meet the growing demand for the storage of natural gas and industrial gasses, including helium and hydrogen, and provide the infrastructure for lower environmental impact forms of energy through our commitment to safety, deliverability, [and] asset integrity,” Dave Marchese, CEO of Caliche, says in a news release.

Richard Sberlati, a partner at Sixth Street, which has an office in Houston, says Caliche’s success “comes from a combined 65 years of collective storage experience, and we look forward to partnering with the company’s management as they further grow the business.”

Sixth Street’s acquisition of Caliche’s Texas business operations is expected to close in late 2024, and its acquisition of the California business operations is set to close in mid-2025.

Founded in 2016, Caliche announced in 2020 that it had arranged a $150 million debt facility with Houston-based investment firm Orion Infrastructure Capital. Two years later, Caliche gained $268 million in funding from Orion and Chicago-based asset management firm GCM Grosvenor.

Trending News

A View From HETI

The University of Houston landed two major gifts that boost its energy transition leadership. Photo courtesy UH.

The University of Houston announced two major funding awards last month focused on energy transition initiatives and leadership.

Longtime UH supporters Peggy and Chris Seaver made a $1 million gift to the university to establish the Peggy and Chris Seaver Endowed Aspire Professorship, a faculty position “designed to strengthen UH Energy and expand the university’s leadership in addressing the most pressing global energy challenges,” according to a news release.

The new role is the third professorship appointed to UH Energy. The professorship can qualify for a dollar-for-dollar match through the Aspire Fund Challenge, a $50 million matching initiative launched by an anonymous donor.

“This gift will be key to cementing UH’s role as The Energy University,” Ramanan Krishnamoorti, vice president for energy and innovation at UH, said in the release. “By recruiting a highly respected faculty member with international experience, we are further elevating UH Energy’s global profile while deepening our impact here in the energy capital of the world.”

Also in January, the university shared that it would be joining the Urban Enrichment Institute (UEI) and the City of Houston to help train the next generation of energy workers, thanks to a $560,000 grant.

The Gulf Research Program of the National Academies of Sciences, Engineering and Medicine awarded the funding to the UEI, a nonprofit that supports at-risk youth. It will allow the UEI to work with UH’s Energy Transition Institute and the Houston Health Department to launch “Spark Energy Futures: Equipping Youth and Communities for the Energy Transition.”

The new initiative is designed for Houstonians ages 16-25 and will provide hands-on experience, four months of STEM-based training, and industry-aligned certifications without a four-year degree. Participants can also earn credentials and job placement support.

“Our energy systems are going through unprecedented changes to address the growing energy demands in the United States, Gulf Coast and Texas,” Debalina Sengupta, assistant vice president and Chief Operating Officer of ETI at UH, said in a news release.“To meet growing demands, the energy supply, transmission, distribution and markets associated with an ever-increasing energy mix needs a workforce skilled in multidimensional aspects of energy, as well as the flexibility to switch as needed to provide affordable, reliable and sustainable energy to our population.”

Keith Cornelius, executive director of UEI, added that he expects about 50 students to participate in the program’s inaugural year and that the program is looking to attract those interested in entering the energy workforce without a college degree.

“We’re looking to have tremendous success with the Energy Transition Institute,” Cornelius said. “This program is a testament to what can be done between a community-based organization, a major university and the city.”

The award was part of a $2.7 million grant that will fund four projects in the Gulf region, including two others in Texas. The Gulf Research Program Awards also granted $748,175 to launch the “Building the South Texas Energy Workforce” initiative in in Kingsville, Texas and $728,000 for “Texas Green Careers Academy: Activating a New Generation of Energy Professionals” in Austin.

Trending News