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Houston university's compost program reaches major milestone

seeing green

Rice University, which works with Houston-based Moonshot Compost, reported a milestone achievement this month. Photo via Getty Images

Rice University and its campus community have officially diverted over 1 million pounds of food waste from landfills.

The university, which works with Houston-based Moonshot Compost, reported the milestone achievement this month. The program was originally launched in November 2020.

“The genesis of the current composting program was a partnership between Housing and Dining, the Office of Sustainability and an undergraduate student named Ashley Fitzpatrick,” says Richard Johnson, senior executive director for sustainability at Rice, in a news release.

“We spent quite a bit of time developing options for food waste composting at Rice with those efforts really ramping up in 2019. After a pilot project, further reflection and an interruption due to the pandemic, we found Moonshot Compost, and they proved to be the partner we needed.”

Fitzpatrick, the student who started it all went on to graduate and now works for Moonshot Compost. She did leave a legacy of student involvement in the program, and Isabelle Chang now serves as an undergraduate student intern in the Office of Sustainability. The role includes liaising with students and other major players on campus who have feedback for the program.

Rice previously had a composting program, but it never reached the same level of scale, per the news release.

“Many years ago — from the late 1990s to about 2007 — we had an on-campus composting device called the Earth Tub that provided food waste composting at one campus kitchen,” Johnson said. “However, the device failed, and frankly, the process of operating the device, getting the food waste into the device and maintaining it all proved onerous. Interest in composting remained after we decommissioned the Earth Tub, and for years we looked for alternatives [before finding Moonshot Compost].”

Launched in July 2020 by Chris Wood and Joe Villa, Moonshot operates with a team of drivers utilizing its data platform to quantify the environmental benefits of composting. The duo went on to team up with energy industry veteran Rene Ramirez to harness their compost into clean hydrogen power.

Last fall, Moonshot Hydrogen signed a memorandum of understanding with the Purdue Innovates Office of Technology Commercialization. The agreement includes facilitating the first operating commercial pilot that biologically turns food waste into hydrogen.

ESG has certainly come a long way, but has it come too far, actually? Photo via Getty Images

Houston energy tech entrepreneur on if 'ESG' is a dirty word

guest column

Whose responsibility is it to care for the social good? That’s an important, yet hopelessly complex question, particularly when aimed at sustainability.

When it comes to businesses and other profit-seeking firms, they tend to search for a balance between success today and success overtime. Too much focus in either direction can be deadly.

An apt analogy is a virus: too much reproduction too fast and the host dies, which is why the most successful viruses find the threshold for maximizing reproduction without overly weakening the host.

Payment is about to be due, but from whom?

The ESG movement encapsulates targets from ethical investing related to environmental issues, social values and corporate governance. As it relates to climate, people are working hard to determine how much cumulative effect of human activity is too much for our survival. And there continues to be open questions about how businesses should react to the scientific consensus that climate conditions will continue getting worse, without immediate and severe corrective action. If the consensus is that this is a problem for businesses to fix, whose money do they spend to do it?

Greed was good, once

Nobel-winning economist Milton Friedman famously advocated for firms to focus primarily on returning value to shareholders. With respect to social good, he advocated that shareholders use their returns to pursue them; businesses should just chase profit. His 1970 article in the New York Times Magazine is worth a read, particularly his last paragraph, where he observes that corporate dollars spent advancing social responsibility represent the theft of money from investors, customers, or employees. The challenge is, how many negative externalities do we absorb before seeking to redirect corporate profits?

Making impact be part of the analysis

Others have argued that firms have a social responsibility and should pursue, using the term John Elkington coined in 1994, a triple bottom line approach, focusing on profit, people, and planet. Adherents to this approach believe you only get what you measure, and therefore,businesses should measure more than just profit. The challenge is, who is smart enough to balance these accounts?

ESG to the rescue?

The term ESG itself was the result of good intentioned actors in the investment space who wanted to track the efficacy of investing in businesses that scored well for social responsibility. They theorized, and had some support, that these companies outperformed the market. The result was the formation of the Principles for Responsible Investment in 2013, with its six core principles for “incorporating ESG issues into investment practice.”

ESG has certainly come a long way from Milton Friendmen, though it’s challenging to say how the movement is going. From one perspective, it looks like everyone is in trouble. Banks for investing in companies who are not moving fast enough. Energy companies and other producers of consumer products for greenwashing their efforts. Private equity firms for forcing ESG standards that some view as a step-too-far. Financial service companies for assisting in greenwashing. And, of course, the worst offenders are “the woke.” From the other perspective, we are finally starting to see some incentives for companies to address and solve long-ignored problems.

One size fits no one

The question of “Who is responsible for ESG?” reminds me of a presentation I attended in spring 2022, given by a senior executive of a large landfill operator. Before he began his discussion of the environmental impacts of operating a landfill, he noted that his billion dollar company did not really create any trash, it simply collected and received trash from all of us! He was begging the question, “Am I solely responsible for your bad decisions?”

And that’s really the issue with ESG, is it not? Who, for example, is responsible for creating pollution? The energy companies for producing oil and natural gas from underground reserves, or the members of the public who drive cars, buy plastic goods, and flip on the lights? The government for letting those things happen? The answer is sadly both none of us and all of us.

Regulators, mount up

Regulating and investing are often in conflict, but they share one common characteristic: few people have ever done either well. That doesn’t mean we quit trying. There are those among us who can find the signal in the noise, who can stare at a pile of numbers and find the rule that answers the question, or at least correlates well to the desired outcome.

People change expensive behaviors

Charlie Munger famously said, “Show me the incentive, and I’ll show you the outcome.” If I had a magic wand, I would want the power to create global markets for the right to release harmful pollutants / emissions or deposit certain types of waste in landfills. It has worked before, and it will likely be what leads us where we need to go. Until we create marketplaces limiting the release of pollutants and disposal of waste, society will continue to fall prey to complex regulatory solutions that are easy for incumbent industries to strike down. Instead, putting a price on these activities will allow the incumbents to innovate and new companies to compete.

When it comes to ESG, I think we fear two outcomes equally: a world that feels a little out of control and a class of people, or institutions of government, who appear all too confident they have the answers. Maybe we can turn the heat down in the ESG debate by prioritizing what we measure and report and creating marketplaces that incentivize people to solve the most pressing problems.

———

Chris Wood is the co-founder of Houston-based Moonshot Compost.

Houston energy transition folks — here's what to know to start your week. Photo via Getty Images

Houston energy transition events not to miss, expert commentary on climate crisis, and more things to know

take note

Editor's note: Start your week off strong with three quick things to catch up on in Houston's energy transition: a roundup of events not to miss, a new Houston energy executive to know, and more.

Events not to miss

Put these Houston-area energy-related events on your calendar.

    • Future of Energy Summit is Tuesday, February 6, at AC Hotel by Marriott Houston Downtown. Register.
    • The 2024 NAPE Summit is Wednesday, February 7, to Friday, February 9, at the George R. Brown Convention Center. It's the energy industry’s marketplace for the buying, selling and trading of prospects and producing properties. Register.
    • The De Lange Conference, taking place February 9 and 10 at Rice University's Baker Institute for Public Policy, is centered around the theme “Brave New Worlds: Who Decides? Research, Risk and Responsibility” this year. Register.
    • The Future of Energy Across the Americas: Helping Lawyers Predict and Adapt — the 2024 Houston Energy Conference — is February 27 to March 1. Register.
    • CERAWeek 2024 is Monday, March 18, to Friday, March 22, in the George R. Brown Convention Center. Register.

    ​Commentary: Chris Wood, co-founder of Moonshot Compost, on loving the climate apocalypse​

    Chris Wood knows that the last thing anyone wants to be reminded of in 2024 is the impending climate apocalypse, but, as he writes in his guest column, "There is a scientific consensus that the world climate is trending towards uninhabitable for many species, including humans, due in large part to results of human activity."

    He cites a report that 93 percent “believe that climate change poses a serious and imminent threat to the planet.”

    "Until recently reviewing this report, I was unaware that 93 percent of any of us could agree on anything," he writes. "It got me thinking, how much of our problem today is based on misunderstanding both the nature of the problem and the solution?" Read more.

    New hire: Bracewell names new partner to advise clients on energy transition tax incentives

    Bracewell announced that Jennifer Speck has joined the firm's tax department as a partner in the Houston office. Speck will advise clients on energy transition tax incentives.

    Some of her experiences include onshore and offshore wind, solar, carbon capture, clean hydrogen and clean fuel projects. She recently served as senior manager of tax and regulatory compliance at Navigator CO2 Ventures LLC. She graduated in 2010 with a B.F.A. in mental health psychology from Northeastern State University, and received her J.D., with honors, from The University of Tulsa College of Law in 2012. Read more.

    Houston climate tech founder weighs in on his observations on what's true, what's exaggerated, and what all humans can agree on about the climate crisis. Photo via Getty Imagees

    Houston expert: Why climate action needs better PR and how to love the climate apocalypse

    guest column

    The last thing anyone wants in 2024 is a reminder of the impending climate apocalypse, but here it is: There is a scientific consensus that the world climate is trending towards uninhabitable for many species, including humans, due in large part to results of human activity.

    Psychologists today observe a growing trend of patients with eco-anxiety or climate doom, reflecting some people’s inability to cope with their climate fears. The Edelman Trust Barometer, in its most recent survey respondents in 14 countries, reports that 93 percent “believe that climate change poses a serious and imminent threat to the planet.”

    Until recently reviewing this report, I was unaware that 93 percent of any of us could agree on anything. It got me thinking, how much of our problem today is based on misunderstanding both the nature of the problem and the solution?

    We’ve been worried for good reason before 

    It’s worth keeping in mind that climate change is not the first time smart people thought humans were doomed by our own successes or failures. Robert Malthus theorized at the end of the 18th century that projected human fertility would certainly outpace agricultural production. Just a century and a half later, about half of all Americans expected a nuclear war, and the number jumped to as high as 80 percent expecting the next war to be nuclear. Yes, global hunger and nuclear threats still exist, but our results have outperformed the worst of those dire projections.

    We are worried for good reason today 

    Today changing climate conditions have grabbed the headlines. The world’s climate is changing at a rate faster than we can model effectively, though our best modeling suggests significant, coordinated, global efforts are necessary to reverse current trends. While there’s still lots to learn, the consensus is that we are approaching a global temperature barrier across which we may not be able to quickly return. These conclusions are worrisome.

    How did we get here?

    Our reliance on hydrocarbons is at the heart of our climate challenge. If combusting them is so damaging, why do we keep doing it? We know enough about our human cognitive biases to say that humans tend to “live in the moment” when it comes to decision making. Nobel Prize-winning economic research suggests we choose behaviors that reward us today rather than those with longer term payoffs. Also, changing behaviors around hydrocarbons is hard. Crude oil, natural gas and coal have played a central role in the reduction of human suffering over time, helping to lift entire populations out of poverty, providing the power for our modern lives and even supplying instrumental materials for clothes and packaging. It’s hard to stop relying on a resource so plentiful, versatile and reliable.

    How do we get out of here?

    Technological advances in the future may help us address climate in new and unexpected ways. If we do nothing and hope for the best, what’s the alternative? We can take confidence that we’ve addressed difficult problems before. We can also take confidence that advancements like nuclear, solar, geothermal and wind power are already supplementing our primary reliance on hydrocarbons.

    The path forward will be extending the utility of these existing alternatives and identifying new technologies. We need to reduce emissions and to withdraw greenhouse gasses (GHGs) that have already been emitted. The nascent energy transition will continue to be funded by venture capitalists, government spending/incentives and private philanthropy. Larger funding sources will come from private equity and public markets, as successful technologies compete for more traditional sources of capital.

    Climate Tech will be a large piece of the climate puzzle

    My biases are likely clear: the same global capitalism that brought about our complicated modern world, with its apparent abundance and related climate consequences, has the best chance to save us. Early stage climate tech funding is increasing, even if it’s still too small. It has been observed that climate tech startups receiving funding today fail to track solutions for industries in proportion to their related production of GHGs. For instance, the agriculture and food sector creates about 18 percent of global GHGs, while climate tech companies seeking to address that sector receive about 9 percent of climate tech funding. These misalignments aside, the trendlines are in the right direction.

    What can you do?

    From a psychological perspective, healthy coping means making small decisions that address your fears, even if you can’t eliminate the root causes. Where does that leave you?

    Be a voice for reasonable change. Make changes in your behavior where and when you can. Also, take comfort when you see existing industries adopting meaningful sustainable practices at faster rates. Support the companies you believe are part of the solution.

    We are already seeing a burgeoning climate tech industry across the globe and here at home. With concerted efforts like the Ion and Greentown Labs, the Houston climate tech sector is helping to lead the charge. In what was even recently an unthinkable reality, the United States has taken a leadership role. Tellingly, we are not leading necessarily by setting targets, but instead by funding young startups and new infrastructure like the hydrogen hubs. We don’t know when or where the next Thomas Edison will emerge to shine a new light in a dark world. However, I do suspect that that woman or man is alive today, and it’s our job to keep building a world worth that person saving.

    ---

    Chris Wood is the co-founder of Houston-based Moonshot Compost.

    Moonshot Compost has announced its plans to create green hydrogen at scale. Photo via Getty Images

    Houston startup launches clean energy business to turn compost into hydrogen

    waste to power

    You may already know Moonshot Compost, a Houston company devoted to collecting food waste all over Texas. Now, meet Moonshot Hydrogen.

    Founders and brothers-in-law Chris Wood and Joe Villa have joined forces with energy industry veteran Rene Ramirez to harness their compost into clean hydrogen power.

    Earlier this month, the new branch of the existing company signed a memorandum of understanding with the Purdue Innovates Office of Technology Commercialization. The agreement comes close to a year after Ramirez first began working with Purdue University Northwest professors, Robert Kramer and Libbie Pelter, and Purdue University’s professor, John Patterson. The result is the first operating commercial pilot that biologically turns food waste into hydrogen.

    This revelation comes just days after the Biden-Harris administration announced that it had set aside $7 billion to H2Hubs, a collection of seven regional hydrogen power stations, including one in the Houston area.

    “We love the timing. There’s just a lot of interest right now,” Wood tells EnergyCapital in a video call with Villa and Ramirez. “It's been fun to watch Rene's long relationship with Purdue come to fruition on behalf of that hydrogen at the same time that the DoD is moving forward with their announcement on the hydrogen hubs.”

    Wood and Villa founded Moonshot Compost three years ago.

    “The thought was, 'waste is so valuable, and there's so much of it in the trash.' So we wanted to focus on, ‘Let's get our hands on as much food waste as possible,’ and always be focused on doing the best thing with our food waste,” Wood says.

    Initially, that meant making compost, which saved the waste from a landfill and produced high-quality, nutrient-rich soil. Customers include both private homes and commercial accounts. Those include heavy hitters like Rice University, Conoco Phillips and Texas Children’s Hospital, as well as beloved restaurants ranging from Bludorn to Tacodeli. And that’s just in Houston. The company now collects from businesses in Austin, Dallas and Waco, too.

    That extended footprint will be important to Moonshot Hydrogen.

    “Our big dream is ideally that we have one of these hydrogen facilities in almost every city that we can think of. Your city has that ability to charge up or refuel the cars with hydrogen at-location and not have to worry about going 300 miles away,” says Ramirez.

    Filling up your car with zero-emission hydrogen made from compost? It could be a reality sooner than you think. According to Wood, Moonshot is already in the preliminary stages of discussions with a facility to pilot just such a program.

    “We’ve been thrilled with how receptive people are. There does seem to be a general acknowledgment that this would fit well with Houston’s desire to be the energy transition capital of the world,” he says.

    Their patent-protected technology assures that Moonshot is the only company with this novel solution to food waste. Most exciting is the fact that the institutions with which Moonshot already partners could be on the ground floor of being at least partially powered by their own discarded scraps.

    “Everyone loves the circularity aspect of it,” says Ramirez. And with a potential launch as soon as next March, it’s one step closer to a reality for the Energy Transition Capital.

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    Woodside Energy names new CEO with sustainability focus

    new leader

    Woodside Energy has officially named Elizabeth Westcott as its new managing director and CEO.

    Westcott has served as the company's acting CEO since Meg O'Neill stepped down in December 2025. Woodside is headquartered in Australia with its global operations based in Houston.

    Before joining Woodside as executive vice president of Australian Operations in 2023, Westcott served as COO at EnergyAustralia. She has also held leadership roles at ExxonMobil and Adriatic LNG.

    At Woodside, she has overseen the $12.5 Scarborough Energy Project, which the company says is expected to be one of the lowest-carbon-intensity sources of LNG, as well as other major projects and initiatives.

    “My focus as CEO is on sustainable value creation for Woodside shareholders, operational excellence and disciplined execution of our growth projects," Westcott said in a news release. “I look forward to working closely with the Board and Woodside’s strong leadership team to continue building a leading global energy company that delivers long-term value for shareholders, underpinned by a consistent focus on sustainability and high performance.”

    Woodside Chair Richard Goyder added that Westcott was the top choice for the role.

    “Liz’s proven track record of outstanding strategic leadership and disciplined delivery distinguished her as the Board’s top candidate for this role," Goyder said. “Liz’s extensive industry experience and strategic vision will be invaluable in leading Woodside at this significant moment in its history.”

    Earlier this month, Westcott spoke on how sustainability is a priority for Woodside.

    "Put simply, sustainable business is good business ... Because strong sustainability performance is not only the right thing to do. It also drives long-term value by helping to de-risk our business, secure future opportunities and support a compelling value proposition for investors," she said in her 2026 sustainability briefing.

    Westcott called attention to the company's Beaumont New Ammonia project. The company acquired the Texas-based clean ammonia project in 204 for $2.35 billion. Production of lower‑carbon ammonia was initially expected sometime this year, but Westcott shared that delivery has been pushed back due to construction delays.

    Read Westcott's full suitability briefing here.

    30+ CERAWeek events featuring Houston energy leaders

    where to be

    CERAWeek returns to Houston March 23-27, bringing more than 1,000 speakers, executives and energy innovators to Houston.

    Under this year's theme, "Convergence and Competition: Energy, Technology and Geopolitics,” panels will tackle topics ranging from policy and global relations to the growing role of AI in the energy sector. Most of the innovation-themed events are organized under the Agora track and will feature many Houston-area startups, universities, companies and scientists. Panels will feature leaders from Fortune 500 companies and top U.S. government officials, scientists and founders pushing towards a more carbon-neutral future.

    Here are some of the many events featuring Houston leaders on the Agora track you can't miss if you want to learn more about Houston energy innovation.

    Monday, March 23rd


    Scaling Innovation: Building the ecosystem for the next energy breakthroughs

    Featuring: Georgina Campbell Flatter, CEO of Greentown Labs

    This event is at 10:30 a.m. Find more info here

    Vaulted Deep | The Subsurface as Waste and Carbon Infrastructure

    Featuring: Julia Reichelstein, co-founder and CEO of Vaulted Deep

    This event is at 11:30 a.m. Find more info here

    Collaboration Spotlight | Collision Course: How Houston's Ion District turns proximity into innovation

    Featuring: Adrian Tromel, chief innovation officer at Rice University; Rawand Rasheed, co-founder and CEO of Helix Earth Technologies; Marc Davidson, senior technical advisor at Veriten

    This event is at 1:30 p.m. Find more info here.

    Methane Reduction in Practice: Field learnings

    Featuring: Matt Kolesar, chief environmental scientist at ExxonMobil

    This event is at 2 p.m. Find more info here.

    Time-to-AI: Shrinking the data-center clock

    Featuring: Robert Ott, vice president of wholesale origination at NRG Energy; Andrew Johnston, business line director, data centers at SLB

    This event is at 2:30 p.m. Find more info here.

    Scaling CCUS: Which industries, regions and funding sources?

    Featuring: Gino Thielens, vice president of renewables and energy efficiency at SLB; Ian McIntyre, senior vice president, 1PointFive

    This event is at 3 p.m. Find more info here.

    Democratization of AI: Redefining where work gets done

    Featuring: Rob Crane, technology scouting and venturing manager at SLB

    This event is at 3:30 p.m. Find more info here.

    Tuesday, March 24th


    Syzygy Plasmonics | Affordable, Globally Compliant SAF Using Abundant Biogas Feedstock

    Featuring: Trevor Best, CEO and founder of Syzygy Plasmonics

    This event is at noon. Find more info here.

    Accelerating Idea to Impact: Carving new ways to innovation

    Featuring: David Sholl, executive vice president for research at Rice University

    This event is at 1 p.m. Find more info here.

    NRG | From the Front Lines: A deep dive into grid reliability

    Featuring: Matthew Pistner, senior vice president of generation at NRG Energy; Robert Patrick, vice president of development engineering and construction at NRG Energy

    This event is at 1:30 p.m. Find more info here.

    Energy Efficiency: The industrial advantage

    Featuring: Jason Urso, CTO of Honeywell Industrial Automation

    This event is at 1:30 p.m. Find more info here.

    The CEO Blueprint | Strategy

    Featuring: Lorenzo Simonelli, CEO and chairman of Baker Hughes

    This event is at 2:55 p.m. Find more info here.

    Occidental | Beyond the Technology: Turning direct air capture into CDR credits

    Featuring: William Barrett, vice president of product development at 1PointFive

    This event is at 3:30 p.m. Find more info here.

    Wednesday, March 25th


    Innovations in Sustainable Steel

    Featuring: Laureen Meroueh, founder and CEO of Heartha Metals Inc.

    This event is at 9 a.m. Find more info here.

    Rice University | The Science of Geologic Carbon Storage

    Featuring: Sahar Bakhshian, assistant professor, earth, environmental and planetary sciences at Rice University

    This event is at 9:30 a.m. Find more info here.

    Sparking Innovation: The impact of interdisciplinary collaboration

    Featuring: Marie Contou Carrere, executive director of the Rice Sustainability Institute; Sandy Guitar, executive director of TEX-E

    This event is at 10 a.m. Find more info here.

    Models of Innovation, Models of Capital

    Featuring: Bobby Tudor, chair of Houston Energy Transition Initiative and chairman of the board for Greentown Labs

    This event is at 10:30 a.m. Find more info here.

    Energy Venture Day and Pitch Competition

    This event is at noon. Find more info here. Learn more about the competing teams here.

    Baker Hughes | Meeting Industrial and AI-Driven Energy Demand with Flexible, Reliable and Sustainable Power Solutions

    Featuring: Daniele Marcucci, industrial power generation product director at Baker Hughes; Florent Rousset, geothermal leader, new energies at Baker Hughes

    This event is at noon. Find more info here.

    Thursday, March 26th


    Mission-driven Minds: How space exploration inspires the next generation of energy innovators

    Featuring: Trina Sadberry, head of brand & engagement in the United States at Equinor; Laura Dandridge, corporate affairs advisor at Chevron; Jack Fischer, chief integration officer at Intuitive Machines; Ginger Kerrick Davis, chief strategy officer at Barrios Technology

    This event is at 9 a.m. Find more info here.

    Rice University | Nature-based Solutions: A focus on biochar and enhanced rock weathering

    Featuring: Carrie Masiello, director of the sustainability institute at Rice University; Mark Torres, associate professor, earth, environmental and planetary sciences at Rice University

    This event is at 9:30 a.m. Find more info here.

    Growing Direct Air Capture

    Featuring: Anthony Cottone, resident and general manager at 1PointFive

    This event is at 9:30 a.m. Find more info here.

    Occidental | Advancement and Growth Opportunities for Enhanced Oil Recovery

    Featuring: Vishal Gupta, president and general manager of EOR Ventures at Occidental

    This event is at 9:30 a.m. Find more info here.

    Geothermal: Charting progress on technological advancements

    Featuring: Jonathan Ajo-Franklin, trustee professor, earth, environmental and planetary sciences at Rice University; Florent Rousset, geothermal leader, new energies at Baker Hughes

    This event is at 10 a.m. Find more info here.

    Newfound Materials | Bridging the Synthesis Gap in AI-Driven Materials Innovation

    Featuring: Matt McDermott, founder and CEO of Newfound Materials

    This event is at 10 a.m. Find more info here.

    Hertha Metals | The Future of Steel Production: Going beyond the blast furnace

    Featuring: Laureen Meroueh, founder and CEO of Heartha Metals Inc.

    This event is at 11 a.m. Find more info here.

    Advanced Materials with Low-Carbon Intensity

    Featuring: Matteo Pasquali, director of the Rice Carbon Hub

    This event is at 11:30 a.m. Find more info here.

    Lessons from the Lab: Common pitfalls of hard tech startups

    Featuring: Jeremy Pitts, managing director of Activate Houston

    This event is at 11:30 a.m. Find more info here.

    TotalEnergies | Accelerating Direct Air Capture

    Featuring: Isabelle Betremieux, head of R&T CO2 capture department at TotalEnergies

    This event is at 1 p.m. Find more info here.

    Spotlight: "NextGen" energy leaders of the future

    Featuring: Renu Khator, chancellor and president of the University of Houston

    This event is at 3 p.m. Find more info here.

    Solidec | On-site, On-demand Production of Essential Chemicals

    Featuring: Ryan DuChanois, co-founder and CEO of Solidec

    This event is at 3:30 p.m. Find more info here.

    Fervo secures $421M in financing for Cape Station construction

    fresh funding

    Houston geothermal unicorn Fervo Energy has closed $421 million in non-recourse debt financing for the first phase of its flagship Cape Station project in Beaver County, Utah.

    Fervo believes Cape Station can meet the needs of surging power demand from data centers, domestic manufacturing and an energy market aiming to use clean and reliable power. According to the company, Cape Station will begin delivering its first power to the grid this year and is expected to reach approximately 100 megwatts of operating capacity by early 2027. Fervo added that it plans to scale to 500 megawatts.

    The $421 million financing package includes a $309 million construction-to-term loan, a $61 million tax credit bridge loan, and a $51 million letter of credit facility. The facilities will fund the remaining construction costs for the first phase of Cape Station, and will also support the project’s counterparty credit support requirements.

    Coordinating lead arrangers include Barclays, BBVA, HSBC, MUFG, RBC and Société Générale, with additional participation from Bank of America, J.P. Morgan and Sumitomo Mitsui Trust Bank, Limited, New York Branch.

    “As demand for firm, clean, affordable power accelerates, EGS (Enhanced Geothermal Systems) is set to become a core energy asset class for infrastructure lenders,” Sean Pollock, managing director, project Finance at RBC Capital Markets, said in a news release. “Fervo is pioneering this step change with Cape Station, a vital contribution to American energy security that RBC is proud to support.”

    The oversubscribed financing marks Cape Station’s shift from early-stage and bridge funding to a long-term, non-recourse capital structure, according to the news release.

    “Non-recourse financing has historically been considered out of reach for first-of-a-kind projects,” David Ulrey, CFO of Fervo Energy, said in a news release. “Cape Station disrupts that narrative. With proven oil and gas technology paired with AI-enabled drilling and exploration, robust commercial offtake, operational consistency, and an unrelenting focus on health and safety, we have shown that EGS is a highly bankable asset class.”

    Fervo continues to be one of the top-funded startups in the Houston area. The company has raised about $1.5 billion prior to the latest $421 million. It also closed a $462 million Series E in December.

    According to Axios Pro, Fervo filed for an IPO that would value the company between $2 billion and $3 billion in January.

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