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Talos Energy sells off low carbon arm to TotalEnergies in $148M deal

M&A moves

Talos Energy announced that it has entered into an agreement for the sale of its wholly owned subsidiary Talos Low Carbon Solutions to TotalEnergies. Photo via Getty Images

A Houston-based company is divesting its low-carbon subsidiary to TotalEnergies, which has its United States headquarters in Houston.

Talos Energy announced that it has entered into an agreement for the sale of its wholly owned subsidiary Talos Low Carbon Solutions LLC to TotalEnergies. The deal is for a purchase price of $125 million plus customary reimbursements, adjustments and retention of cash, which totals approximately $148 million.

According to a news release, Talos plans to use the proceeds from the sale to repay borrowings under its credit facility and for general corporate purposes. The sale includes Talos's entire carbon capture and sequestration business, which includes its three projects along the U.S. Gulf Coast with Bayou Bend CCS, Harvest Bend CCS, and Coastal Bend CCS.

There is an opportunity for additional future cash payments upon achievement of certain milestones at the Harvest Bend or Coastal Bend projects for Talos. More payments can be obtained also upon a sale of the aforementioned projects by TotalEnergies.

"Since TLCS's inception, we have successfully applied our energy expertise as an early mover aimed at developing decarbonization solutions along the U.S. Gulf Coast,” Talos President and CEO Timothy S. Duncan says in a news release. ”Strong market interest during our capital raise provided the strategic option to fully monetize the business to TotalEnergies, an established global leader in CCS development."

Talos Executive Vice President, Low Carbon Strategy and Chief Sustainability Officer Robin Fielder will continue to serve in her role for a transition period before leaving Talos.

"Robin and our entire CCS team did an outstanding job crystallizing value for Talos shareholders for a strong financial return," Duncan continues. "The transaction will further enable Talos to prioritize cash flow generation and optimal capital allocation in our core Upstream business. We are also continuing to explore business development and strategic M&A opportunities."

TotalEnergies is active in the Houston energy transition ecosystem and recently signed on as a partner at Greentown Houston. Last fall, the company also started commercial operations of its new solar farm, Myrtle Solar, just south of Houston.

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Events not to miss, Gulf Coast CCS project gets new Houston partner, and more things to know this week. Photo via Getty Images

3 things to know this week: Meet Chevron's UH fellows, Bayou Bend CCS's newest partner, can't-miss events

hou knew?

Editor's note: It's a new week — start it strong with three quick things to know in Houston's energy transition ecosystem. Meet the fellows selected for a UH-Chevron program, Equinor's involvement with Houston-area CCS project, and events not to miss this week.

Upcoming events to put on your radar

Photo via Getty Images

It's a new month — here are two energy events to have on your radar.

  • September 7 — Venture Houston is spotlighting digitization and decarbonization this year. It's a must-attend event for investors, entrepreneurs, and more.
  • September 21 — The Rice Alliance Energy Tech Venture Forum is an opportunity to learn about the latest emerging technologies, meet investors to seek funding, see promising companies, and more.

CCS project near Houston secures new local partner

The project is located in southeast Texas, about 70 miles outside of Houston. Image via equinor.com

As of last week, Equinor, which has its United States headquarters in Houston, now owns a 25 percent interest in Bayou Bend CCS LLC, one of the largest domestic carbon capture and storage projects. The project — a JV between Chevron, Talos Energy Inc., and now Equinor, is located along the Gulf Coast in southeast Texas. The terms of the deal were not disclosed.

“Commercial CCS solutions are critical for hard-to-abate industries to meet their climate ambitions while maintaining their activity," Grete Tveit, senior vice president for Low Carbon Solutions in Equinor, says in a news release. "Entering Bayou Bend strengthens our low carbon solutions portfolio and supports our ambition to mature and develop 15-30 million tonnes of equity CO2 transport and storage capacity per year by 2035. Our experience from developing carbon storage projects can help advance decarbonization efforts in one of the largest industrial corridors in the US."

In 2021, Texas General Land Office in Jefferson County, Texas, selected Talos and Carbonvert for the carbon storage lease, located in state waters offshore Beaumont and Port Arthur, Texas. Chevron joined the JV in May 2022. The project expanded earlier this year.

Meet Chevron's fellows from the University of Houston

The PhD and doctoral students will each receive a one-year $12,000 fellowship, along with mentoring from experts at UH and Chevron. Photo via UH.edu

The University of Houston has named eight graduate students to its first-ever cohort of UH-Chevron Energy Graduate Fellows. The PhD and doctoral students will each receive a one-year $12,000 fellowship, along with mentoring from experts at UH and Chevron. Their work focuses on energy-related research in fields ranging from public policy to geophysics and math. The fellowship is funded by Chevron.

“The UH-Chevron Energy Fellowship program is an exciting opportunity for our graduate students to research the many critical areas that impact the energy industry, our communities and our global competitiveness,” Ramanan Krishnamoorti, UH's Vice President for Energy and Innovation says in a statement.

“Today’s students not only recognize the importance of energy, but they are actively driving the push for affordable, reliable, sustainable and secure energy and making choices that clearly indicate that they are meaningfully contributing to the change,” he continues.

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Houston cleantech startup secures $134M to develop ‘superhot’ geothermal plant

deep round

Houston-based Quaise Energy, a producer of utility-scale geothermal power, raised $134 million in a Series B round to advance its “superhot” geothermal power plant.

Climate-focused San Francisco-based investment firm Prelude Ventures led the round, with participation from JERA Co., Japan’s largest power generation company, and Idemitsu Kosan, one of Japan’s largest energy companies. Nearly all existing investors, including cleantech-focused investment firm Safar Partners, participated in the round.

“We have backed Quaise since the beginning because we believed accessing superhot rock would unlock geothermal energy at a scale the world has never seen,” Mark Cupta, managing director at Prelude Ventures, said in a press release.

The startup expects more equity and debt deals to close “imminently.” Quaise has raised $230 million since its founding in 2018.

Quaise says some of the fresh funding will go toward building the world’s first commercial-scale “superhot” geothermal power plant —Project Obsidian in central Oregon. In addition, Quaise is earmarking money for continued development and commercialization of its millimeter-wave drilling system toward depths exceeding 5 kilometers (about 16,400 feet).

Quaise uses a millimeter-wave drilling system developed at the Massachusetts Institute of Technology to remove rock at depths and temperatures that aren’t economically feasible with conventional drilling. With this technology, Quaise can reach rock at temperatures of around 570 degrees to 930 degrees in most places worldwide, enabling construction of geothermal systems that rival fossil fuels and nuclear energy in power density and that rival renewables in cost.

“Our ambition is to power civilization with Earth's most compelling energy source. This round takes us from field-proven technology to first commercial revenues,” Carlos Araque, co-founder, president and CEO of Quaise, added in the release.

Quaise has demonstrated the capability of its millimeter-wave drilling system at its Central Texas test site, drilling more than about 330 feet through granite in 2025—the first time the technology penetrated basement rock at full scale in the field. The company is approaching a depth of about 3,300 feet at the same site.

Construction of Project Obsidian is underway at Oregon’s Deschutes National Forest. The project, which has the potential to generate gigawatt-scale power, is slated to deliver electricity to the Pacific Northwest grid by 2030.

Shell expands lower-carbon energy solutions while cutting emissions

The View from HETI

Shell’s approach to sustainable development reflects an integrated value chain perspective—reducing emissions from oil and gas production, transforming downstream businesses to offer more low-carbon solutions, and building new energy businesses at scale. The company’s 31% reduction in Scope 1 and 2 operational emissions since 2016 demonstrates that this integrated strategy delivers results.

Three Strategic Priorities Drive Progress

Leading Integrated Gas: Shell is growing its world-leading LNG business with lower carbon intensity, meeting rising demand for natural gas as a transition fuel and foundation for renewable energy integration.

Advantaged Upstream: The company is cutting emissions from oil and gas production while keeping output stable, proving that operational excellence can reduce environmental impact without sacrificing energy security.

Differentiated Downstream, Renewables, and Energy Solutions: Shell is transforming its businesses to offer more low-carbon solutions while reducing sales of traditional oil products, positioning the company for the evolving energy market.

Shell’s emissions reductions are happening across global operations:

  • United States: Significant emissions cuts from production assets through operational efficiency and technology deployment
  • Malaysia & Philippines: Emissions reduction programs at offshore operations demonstrating that low-carbon production works in diverse environments
  • Norway: Continued emissions intensity improvements from mature assets, showing that even older fields can decarbonize

Whale Partnership Demonstrates Innovation

Shell’s recent partnership with Chevron at the Whale deepwater asset showcases what’s possible with next-generation project design. By integrating emissions reduction strategies from the start, the partnership has lowered the greenhouse gas intensity approximately 30% over the project lifecycle relative to similar deepwater oil and gas production assets.

Shell’s strategy to deliver more value with less emissions includes climate change transition plans, mitigation actions and decarbonization levers supported by a suite of processes and greenhouse gas emission reduction targets such as:

2025 Results:

  • Eliminated routine flaring from upstream operations
  • Maintained methane emissions intensity below 0.2%

By 2030:

  • Halve Scope 1 and 2 emissions under operational control (vs. 2016)
  • Achieve near-zero methane emissions
  • Reduce Scope 3 net carbon intensity (NCI) by 15-20% (vs. 2016)
  • Cut customer emissions from oil products by 15-20% (vs. 2021)

By 2050:

  • Achieve net zero emissions across Scopes 1, 2, and 3

Across all strategic initiatives, Shell prioritizes trading and optimization capabilities that maximize value while minimizing emissions. This commercial approach ensures that the company’s energy transition strategy creates long-term shareholder value while advancing climate goals.

Shell is building an integrated energy business for the low-carbon future by delivering the energy products customers need today while investing in the solutions they’ll need tomorrow.

As a steering-level member of HETI, Shell exemplifies the leadership and commitment required to transform Houston’s energy sector while maintaining global energy security.

———

This article originally appeared on the Greater Houston Partnership's Houston Energy Transition Initiative blog. Explore Shell’s energy transition strategy at: https://www.shell.us/about-us/sustainability.html, and read the full analysis here: https://htxenergytransition.org/wp-content/uploads/2025/08/07.18.25-HETI-Leadership-Narrative-Report-V2_pages-1-2.pdf

UH report projects $1T in new midstream infrastructure needed to power AI era

midstream report

A new study from the University of Houston estimates that the U.S. will need more than $1 trillion in new midstream energy infrastructure investment by 2052 to meet the rising energy demands from data centers in the age of artificial intelligence.

According to the report, this would average $40 billion to $48 billion per year across investments in natural gas, oil, natural gas liquids, hydrogen and CO2 infrastructure.

UH, in collaboration with the INGAA Foundation and Wood and ESMIA Consultants, released the 2025 North American Midstream Infrastructure Report, which details the needs, pipelines and associated infrastructure necessary to meet global market needs and increased energy demands. UH led the consortium that conducted the analysis. Paul Doucette, hydrogen program officer at UH, served as the principal investigator of the report.

According to the U.S. Department of Energy, data center energy consumption could reach 800 terawatt-hours annually by 2050, a roughly 167 percent increase from 300 terawatt-hours in 2025. Meanwhile, electricity generation from all energy sources is projected to reach 5,858 terawatt-hours in 2052, a 27 percent increase over current levels.

The report proposes two routes to meeting this level of demand.

The first scenario is a reference case based on current federal, state and provincial policies as of April 1, 2025. The second option presents a low-carbon scenario. The report concludes that natural gas would need to remain a “foundational component of the region’s energy system” in both scenarios.

“Meeting energy demand is a critical challenge right now, and this report quantifies the necessary midstream infrastructure and corresponding development dollars needed to meet that demand,” Hebe Shaw, executive director of the INGAA Foundation, said in a news release. “Meeting the energy needs of North America will require sustained investment and development, which must begin now to ensure a safe, reliable and affordable energy system.”

The report also identified several key midstream infrastructure requirements, including:

  • 103,000 miles of new natural gas gathering pipelines
  • 37,000 miles of additional natural gas transmission pipelines, which includes approximately 33,800 miles in the United States
  • 24 million jobs over 25 years

The report adds that hydrogen, carbon capture, utilization, and storage (CCUS), and other decarbonization strategies can help meet infrastructure needs.

UH released a condensed version of the report here.

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