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

Editor's note: Dive headfirst into the new week with three quick things to catch up on in Houston's energy transition: a podcast episode with a biotech leader, a very big oil and gas deal, and events not to miss.


Big deal: ConocoPhillips to buy Marathon Oil for $17.B in all-stock deal

ConocoPhillips is buying Marathon Oil in an all-stock deal valued at approximately $17.1 billion as energy prices rise and big oil companies reap massive profits.

The deal to combine the two Houston-headquartered companies is valued at $22.5 billion when including $5.4 billion in debt.

Crude prices have jumped more than 12% this year and the cost for a barrel rose above $80 this week. Oil majors put up record profits after Russia's invasion of Ukraine in 2022 and while those numbers have slipped, there has been a surge in mergers between energy companies flush with cash. Continue reading.

Podcast to stream: Carlos Estrada, head of Venture Acceleration at BioWell, joins the Houston Innovators Podcast

Bioindustrial technologies have a high potential for impacting sustainability — but they tend to need a little bit more help navigating the startup valley of death. That's where the BioWell comes in.

Carlos Estrada, head of Venture Acceleration at BioWell, says the idea for the accelerator was came to First Bight Ventures, a Houston-based biomanufacturing investment firm, as it began building its portfolio of promising companies.

"While we were looking at various companies, we found ourselves finding different needs that these startups have," Estrada says on the Houston Innovators Podcast. "That's how the opportunity for the BioWell came about." Continue reading.

Events not to miss

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

  • The Energy Drone & Robotics Summit is coming to Houston June 10 to 12. Join for the ultimate event in the world for UAVs, Robotics & Data/AI, 3D Reality Capture, Geospatial and Digital Twins focused on the business and technology in energy & industrial operations, inspections, maintenance, surveying & mapping. Register now.
  • Argus Clean Ammonia North America Conference will take place on June 12 to 14 at the Hyatt Regency Houston. Over the three days of the conference, explore the big questions many producers are facing around where demand is coming from, expect to hear perspectives from key domestic consumers as well as international demand centres for clean ammonia. Register now.
  • Join the over 150 senior energy and utilities leaders from June 17 to 18 in Houston for AI in Energy to unlock the potential of AI within your enterprise and delve into key areas for its development.Register now.
  • Energy Underground (June) is a group of professionals in the Greater Houston area that are accelerating the Energy Transition that connect monthly at The Cannon - West Houston. Register now.

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

From events to a $1.5B deal, here are 3 things to know in Houston energy transition news

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Editor's note: Dive headfirst into the new week with three quick things to catch up on in Houston's energy transition: a really big deal from last week, an expert's opinion on sustainability strategy, and events not to miss.

Really big deal: Houston energy transition growth capital firm closes $1.5B fund

EnCap Energy Transition's Fund II, or EETF II, was created to invest in solutions to decarbonize the power industry, and invest in low carbon fuels and carbon management. This second energy transition fund follows EnCap Energy Transition Fund I, a $1.2 billion fund that deployed capital to seven material portfolio company investments and four fund realizations with Broad Reach Power, Jupiter Power, Triple Oak, and Paloma Solar & Wind.

Previously, the company made investment commitments to five portfolio companies through EETF II, including Bildmore Renewables, Linea Energy, Parliament Solar, Power Transitions, and Arbor Renewable Gas. EnCap expects to have 8 to 10 portfolio companies in EETF II in total.

"The EnCap Energy Transition team is proud to have raised a sizeable pool of capital to continue to invest in the opportunity created by the shift to a lower-carbon energy system,” EnCap Energy Transition Managing Partner Jim Hughes says in a news release. Read more about the deal.

Guest column: Why companies are investing in sustainable energy technology

As senior vice president of Enchanted Rock, a Houston-based provider of microgrid technology, Ken Cowan has seen how energy resilience has emerged as a key strategy for businesses across industries, as he writes in a guest column for InnovationMap.

"Executives must recognize the strategic imperative of investing in resilient energy infrastructure like microgrid systems, which can provide a competitive advantage against organizations that do not have similar measures in place," he writes. "In doing so, they can navigate uncertainty with confidence, set their business up for future success, and emerge stronger and more resilient than ever before."

In the piece, he explores the value proposition and other benefits to making these changes. Click here to read more.

Events not to miss

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

  • The 2024 KPMG Global Energy Conference is taking place Wednesday, May 15, at the Post Oak Hotel. The event will focus on areas such as capital investment, mergers and acquisitions, risk and resiliency, technology, and human capital. Register now.
  • The Clean Energy Security and Reliability Forum is co-located with the 2024 RE+ Texas on May 15 to 16. This conference will bring together leading experts to discuss regulatory frameworks and technological innovations that can ensure that solar and energy storage projects are the most secure and reliable source of electricity generation on the U.S. grid. Register now.
  • The Energy Drone & Robotics Summit is coming to Houston June 10 to 12. Join for the ultimate event in the world for UAVs, Robotics & Data/AI, 3D Reality Capture, Geospatial and Digital Twins focused on the business and technology in energy & industrial operations, inspections, maintenance, surveying & mapping. Register now.
  • Join the over 150 senior energy and utilities leaders from June 17 to 18 in Houston for AI in Energy to unlock the potential of AI within your enterprise and delve into key areas for its development.Register now.

    The Climate Equity Report was developed to help foster positive, two-way communication and engagement between Houston-area energy companies and the communities they impact. Photo via Getty Images

    Key takeaways from HETI's Climate Equity Report

    The view from heti

    The mission of the Houston Energy Transition Initiative (HETI) is to drive sustainable and equitable economic growth for an energy-abundant, low-carbon future in the greater Houston region.

    Community engagement will play a key role in ensuring the environmental and economic benefits of the energy transition flow to all members of Greater Houston. This requires a shared understanding of concerns, values, and goals.

    “As we make this transition to a lower-carbon energy future, we’re doing it in a way that creates economic opportunity for all Houstonians,” said Jane Stricker, Senior Vice President, Energy Transition and Executive Director of HETI. “When we think about what role community plays in that work, HETI is supported by industry leaders and a community advisory board to ensure that as this work moves forward, it moves forward in a way that benefits everyone.”

    HETI recently collaborated with the Houston Advanced Research Center (HARC), Sallie Greenberg Consulting (SGC), energy companies with a presence in the region, and impacted community organization stakeholders and leaders to develop a baseline understanding of current corporate climate action, community needs, and preferred methods of engagement.

    “We engaged HARC and SGC to help us to explore the intersection of the energy transition and community engagement,” said Stricker. “They helped us create a collaborative framework to support both companies and communities in advancing solutions for an equitable energy transition. The team has done a truly outstanding job to develop this report and framework.”

    The Climate Equity Report, which includes the Framework for an Equitable Energy Transition and the Community Engagement Toolkit for an Equitable Energy Transition, was developed to help foster positive, two-way communication and engagement between Houston-area energy companies and the communities they impact. The Framework and Toolkit are based on in-depth research and interviews — with the aim of bridging the gap between corporate climate action, community engagement, and the federal government’s approach to diversity, equity, inclusion, and accessibility.

    “We have the opportunity to reassess how we approach these very important issues,” said John Hall, President and CEO of HARC. “Community members are not just interested in talking and becoming acquainted with the industry — they want to engage in constructive dialogue with the aim of delivering meaningful benefits that will improve the quality of their lives and those of their neighbors.”

    “What I see for the first time in the 25 years that I’ve been working in this space is that we have a significant opportunity—right now—to change how we work in communities, how we work with communities, and how we can enter in a partnership to be able to drive equitable energy transition activities forward,” said Dr. Sallie Greenberg, Scientist, Strategic Advisor, and Engagement Specialist at Sallie Greenberg Consulting.

    Findings from the Climate Equity Report highlight best practices and strategies to improve relationships, build trust, and address concerns. Ten key findings include:

    • Basic needs
      Helping the community address basic needs and reduce existing risks can reduce barriers to participation and improve community member engagement around the energy transition.
    • Equity considerations
      Equity considerations are growing increasingly important. Communities are looking for authentic processes that include community input on the highest-priority challenges.
    • Two-way engagement
      Successful two-way engagement requires information to flow in both directions. Authentic, targeted community engagement will be a key enabler of climate equity and decarbonization in Houston.
    • Transparency
      As energy companies seek to broaden engagement efforts, transparency is key. Project information must be as transparent and available as possible.
    • Trust flow
      There is a gap between company and community perceptions of engagement largely based on a “trust deficit” that will take time to address.
    • Engagement frequency
      Engagement alone isn’t enough. Consistent, frequent, organic engagement is required to build trust and overcome the “trust deficit” between energy companies and communities.
    • Accountability
      Impacts can be tangible and intangible. Community engagement work must be evaluated using a data-driven approach that measures how engagement activities address inequalities and benefit impacted groups.
    • Shifting priorities
      The type of engagement the community and the federal government wants and expects has changed. Companies must address this change to ensure community needs are acknowledged and met.
    • Stakeholder identification
      Not all stakeholders have the same voice or level of influence. Truly equitable engagement requires the inclusion of marginalized groups, especially those in frontline communities.
    • Program evaluation
      The evaluation process helps companies determine if engagement goals are being met. This includes conducting observations, surveys, and interviews throughout the evaluation process before sharing results with stakeholders and making program improvements based on the collected information.

    Read the full report here. Watch the Connect on Climate Equity webinar.

    ———

    This article originally ran on the Greater Houston Partnership's Houston Energy Transition Initiative blog. HETI exists to support Houston's future as an energy leader. For more information about the Houston Energy Transition Initiative, EnergyCapitalHTX's presenting sponsor, visit htxenergytransition.org.

    Texas' solar market will be missing about three hours of sunlight today — and more things to know this week. Photo courtesy of NASA

    How the eclipse will test Texas' solar market, events not to miss, and more things to know in Houston energy

    take note

    Editor's note: Dive headfirst into the new week with three quick things to catch up on in Houston's energy transition: a roundup of events not to miss, what to expect from the eclipse, and more.


    Eyes on ERCOT amid eclipse

    For three hours today, Texas' solar energy market will be affected by the solar eclipse. According to a report from the Environment Texas Research & Policy Center, Texas ranks third in the U.S. for residential solar power generation, so the moon's interception to the sunlight can be a real test to ERCOT, which reported that they have worked with solar forecast vendors on what to expect from solar generation on the grid during the eclipse.

    "As we did in preparation for the October 2023 eclipse, ERCOT is actively monitoring the forecasts and available dispatchable capacity for April 8," reads a statement from the organization's March report. "ERCOT will rely on Ancillary Services and other actions to posture the system as necessary during the eclipse to compensate for both the reduction and increase in solar generation on this day and maintain grid reliability. ERCOT has been engaging Market Participants so that they are prepared for the eclipse and expects sufficient generation to meet demand."

    Events not to miss

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

    • The Digital Wildcatters is hosting its Energy Tech Night in Houston on April 17. Register.
    • On April 17, the University of Houston presents "Gulf Coast Hydrogen Ecosystem: Opportunities & Solutions" featuring experts from academia, industry, government, and more. The symposium begins at 8 am with a networking reception takes place beginning at 5 pm at the University of Houston Student Center South - Theater Room. Register.
    • Ally Energy is hosting its Unconference - Energy 2.0 on April 18 to explore the energy renaissance. Register.
    • The inaugural, student-led TEX-E Conference is taking place on April 19 at TMC's Helix Park. The event’s mission is to empower budding student entrepreneurs to advance their climatetech ventures and inspire industry leaders to support these groundbreaking startups coming out of Texas’ universities. Register.
    • Offshore Technology Conference returns to Houston May 6 to 9. Register.

    Really big deal: Shell's EV charging plans

    As it downshifts sales of fuel for traditional vehicles, energy giant Shell is stepping up its commitment to public charging stations for electric vehicles.

    In a new report on energy transition, Shells lays out an aggressive plan for growing its public network of charging stations for electric vehicles (EVs). The company plans to boost the global number of public EV charging stations from about 54,000 today to around 70,000 by 2025 and about 200,000 by 2030.

    The projected growth from today to 2030 would represent a 270 percent increase in the number of Shell-operated EV charging stations.

    “We have a major competitive advantage in terms of locations, as our global network of service stations is one of the largest in the world,” Shell says in the report. Read the full story.

    Looking back on CERAWeek 2024 — and more things to know this week. Photo courtesy of CERAWeek

    CERAWeek in review, a podcast to stream, and more things to know in Houston energy transition this week

    take note

    Editor's note: Dive headfirst into the new week with three quick things to catch up on in Houston's energy transition: a roundup of events not to miss, a podcast to stream, and more.

    CERAWeek in review

    Last week, we wrapped up the top five themes of CERAWeek on EnergyCapital, including geothermal, the rise of AI, and more.

    Let's look back on all the articles from the conference, in case you missed it:

    Podcast to stream: Sean Kelly of Amperon

    Sean Kelly says he didn't seek to start a clean tech company. He saw a need and opportunity for more accurate energy forecasting, and he built it.

    But Amperon has made it on lists highlighting energy transition innovation on more than one occasion — and caught the eye of renewable energy giants.

    "We don't brand ourselves as a clean tech company," Kelly, CEO and co-founder of Amperon, says on the Houston Innovators Podcast, "but we have four of the top six or eight wind providers who have all invested in Amperon. So, there's something there."

    The technology that Amperon provides its customers — a comprehensive, AI-backed data analytics platform — is majorly key to the energy industry and the transition of the sector. Read more.

    Events not to miss

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

    • The Digital Wildcatters is hosting its Energy Tech Night in Houston on April 17. Register.
    • On April 17, the University of Houston presents "Gulf Coast Hydrogen Ecosystem: Opportunities & Solutions" featuring experts from academia, industry, government, and more. The symposium begins at 8 am with a networking reception takes place beginning at 5 pm at the University of Houston Student Center South - Theater Room. Register.
    • Offshore Technology Conference returns to Houston May 6 to 9. Register.

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

    Talos offloads low carbon subsidiary, events not to miss, plus more Houston energy things to know

    take note

    Editor's note: Dive headfirst into the new week with three quick things to catch up on in Houston's energy transition: a roundup of events not to miss, a really big deal, and more.

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

    One of the biggest energy transition deals from last week was Talos Energy selling off its 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.

    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. Read more.

    Apply for the Rice Clean Energy Accelerator

    The deadline to apply for the fourth cohort of the Rice Clean Energy Accelerator is Friday, March 29. Those interested in the nine-week program can learn more and apply online.

    The program seeks to advance emerging ventures and entrepreneurs in the clean energy industry. CEA connects participants with industry leaders and investors.

    With a focus on early-stage startups operating in the TRL range of 3 to 7, accepted companies gain access to a range of benefits, including mentorship and essential resources.

    Events not to miss

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

    • DeCarb Connect supports senior leaders in decarbonization to accelerate strategy and decision making to reduce carbon emissions and reach net zero targets. The event is March 26 to 28 at Westin Houston Memorial City. Register.
    • On March 27, Greentown Houston is hosting "Accelerating Net-Zero Solutions: CCUS Innovation and Startup Showcase." Watch the Go Make 2023 cohort pitch their innovations in carbon utilization, storage, and traceability; hear about their work with Shell throughout the startup-corporate-partnerships accelerator; and learn from CCUS industry experts. Register.
    • The 3rd Annual Carbon Tracking and Reporting Conference begins next Wednesday in Houston. The event's matchmaking and networking app has been launched and registrants are viewing attendees and setting up meetings. Register.
    • On April 17, the University of Houston presents "Gulf Coast Hydrogen Ecosystem: Opportunities & Solutions" featuring experts from academia, industry, government, and more. The symposium begins at 8 am with a networking reception takes place beginning at 5 pm at the University of Houston Student Center South - Theater Room. Register.

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    Oxy subsidiary secures Microsoft as largest-ever DAC carbon removal credit customer

    major move

    Occidental Petroleum’s Houston-based carbon capture, utilization and, sequestration (CCUS) subsidiary, 1PointFive, has inked a six-year deal to sell 500,000 metric tons of carbon dioxide removal credits to software giant Microsoft.

    In a news release, 1Point5 says this agreement represents the largest-ever single purchase of carbon credits enabled by direct air capture (DAC). DAC technology pulls CO2 from the air at any location, not just where carbon dioxide is emitted.

    Under the agreement, the carbon dioxide that underlies the credits will be stored in a below-the-surface saline aquifer and won’t be used to produce oil or gas.

    “A commitment of this magnitude further demonstrates how one of the world’s largest corporations is integrating scalable [DAC] into its net-zero strategy,” says Michael Avery, president and general manager of 1PointFive. “Energy demand across the technology industry is increasing, and we believe [DAC] is uniquely suited to remove residual emissions and further climate goals.”

    Brian Marrs, senior director for carbon removal and energy at Microsoft, says DAC plays a key role in Microsoft’s effort to become carbon-negative by 2030.

    The carbon dioxide will be stored at 1PointFive’s first industrial-scale DAC plant, being built near Odessa. The $1.3 billion Stratos project, which 1Point5 is developing through a joint venture with investment manager BlackRock, is designed to capture up to 500,000 metric tons of CO2 per year.

    The facility is scheduled to open in mid-2025.

    Aside from Microsoft, organizations that have agreed to buy carbon removal credits from 1Point5 include Amazon, Airbus, All Nippon Airways, the Houston Astros, the Houston Texans, and TD Bank.

    Occidental says 1PointFive plans to set up more than 100 DAC facilities worldwide by 2035.

    Texas Gov. Greg Abbott demands answers from Houston power company following Beryl

    investigation incoming

    With around 270,000 homes and businesses still without power in the Houston area almost a week after Hurricane Beryl hit Texas, Gov. Greg Abbott on Sunday said he's demanding an investigation into the response of the utility that serves the area as well as answers about its preparations for upcoming storms.

    “Power companies along the Gulf Coast must be prepared to deal with hurricanes, to state the obvious,” Abbott said at his first news conference about Beryl since returning to the state from an economic development trip to Asia.

    While CenterPoint Energy has restored power to about 2 million customers since the storm hit on July 8, the slow pace of recovery has put the utility, which provides electricity to the nation’s fourth-largest city, under mounting scrutiny over whether it was sufficiently prepared for the storm that left people without air conditioning in the searing summer heat.

    Abbott said he was sending a letter to the Public Utility Commission of Texas requiring it to investigate why restoration has taken so long and what must be done to fix it. In the Houston area, Beryl toppled transmission lines, uprooted trees and snapped branches that crashed into power lines.

    With months of hurricane season left, Abbott said he's giving CenterPoint until the end of the month to specify what it'll be doing to reduce or eliminate power outages in the event of another storm. He said that will include the company providing detailed plans to remove vegetation that still threatens power lines.

    Abbott also said that CenterPoint didn't have “an adequate number of workers pre-staged" before the storm hit.

    Following Abbott's news conference, CenterPoint said its top priority was “power to the remaining impacted customers as safely and quickly as possible,” adding that on Monday, the utility expects to have restored power to 90% of its customers. CenterPoint said it was committed to working with state and local leaders and to doing a “thorough review of our response.”

    CenterPoint also said Sunday that it’s been “investing for years” to strengthen the area’s resilience to such storms.

    The utility has defended its preparation for the storm and said that it has brought in about 12,000 additional workers from outside Houston. It has said it would have been unsafe to preposition those workers inside the predicted storm impact area before Beryl made landfall.

    Brad Tutunjian, vice president for regulatory policy for CenterPoint Energy, said last week that the extensive damage to trees and power poles hampered the ability to restore power quickly.

    A post Sunday on CenterPoint's website from its president and CEO, Jason Wells, said that over 2,100 utility poles were damaged during the storm and over 18,600 trees had to be removed from power lines, which impacted over 75% of the utility's distribution circuits.

    Things to know: Beryl in the rearview, Devon Energy's big deal, and events not to miss

    taking notes

    Editor's note: Dive headfirst into the new week with three quick things to catch up on in Houston's energy transition.

    Hurricane Beryl's big impact

    Hundreds of thousands of people in the Houston area likely won’t have power restored until this week, as the city swelters in the aftermath of Hurricane Beryl.

    The storm slammed into Texas on July 8, knocking out power to nearly 2.7 million homes and businesses and leaving huge swaths of the region in the dark and without air conditioning in the searing summer heat.

    Although repairs have restored power to nearly 1.4 million customers, the scale of the damage and slow pace of recovery has put CenterPoint Energy, which provides electricity to the nation's fourth-largest city, under mounting scrutiny over whether it was sufficiently prepared for the storm and is doing enough now to make things right.

    Some frustrated residents have also questioned why a part of the country that is all too familiar with major storms has been hobbled by a Category 1 hurricane, which is the weakest kind. But a storm's wind speed, alone, doesn't determine how dangerous it can be. Click here to continue reading this article from the AP.

    Big deal: Devon Energy to acquire Houston exploration, production biz in $5B deal

    Devon Energy is buying Grayson Mill Energy's Williston Basin business in a cash-and-stock deal valued at $5 billion as consolidation in the oil and gas sector ramps up.

    The transaction includes $3.25 billion in cash and $1.75 billion in stock.

    Grayson Mill Energy, based in Houston, is an oil and gas exploration company that received an initial investment from private equity firm EnCap Investments in 2016.

    The firm appears to be stepping back from energy sector as it sells off assets. Last month EnCap-backed XCL Resources sold its Uinta Basin oil and gas assets to SM Energy Co. and Northern Oil and Gas in a transaction totaling $2.55 billion. EnCap had another deal in June as well, selling some assets to Matador Resources for nearly $2 billion. Click here to continue reading.

    Events not to miss

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

    • 2024 Young Leaders Institute: Renewable Energy and Climate Solutions is taking place July 15 to July 19 at Asia Society of Texas. Register now.
    • CCS/Decarbonization Project Development, Finance and Investment, taking place July 23 to 25, is the deepest dive into the economic and regulatory factors driving the success of the CCS/CCUS project development landscape. Register now.
    • The 5th Texas Energy Forum 2024, organized by U.S. Energy Stream, will take place on August 21 and 22 at the Petroleum Club of Houston. Register now.