Houston chemical company divests new tech arm to PE

M&A moves

Merichem Company has created a new business unit that's been acquired by a private equity firm. Photo via Getty Images

A New Orleans-based private equity firm has announced the acquisition of a Houston chemical company's technology business unit, the business announced today.

Black Bay Energy Capital acquired a portion of Merichem Company’s business — including its Merichem Process Technologies and Merichem Catalyst Products, which will collectively be renamed Merichem Technologies. Merichem's caustic services business, which handles spent caustic for beneficial reuse, will be maintained by the company.

Cyndie Fredrick has been promoted to CEO of Merichem Technologies. She previously served as Merichem's senior vice president and general manager of Merichem Process Technologies. She's joined by CFO Rene Campos, Senior Vice President of Technology Jeff Gomach, and Senior Vice President of Catalysts William Rouleau, who are all former managers within Merichem.

“The Merichem Technologies team has successfully deployed highly engineered and patented technologies, chemical catalysts, and mechanical solutions to various end markets including liquified natural gas, midstream oil and gas, refining of traditional crude and renewable feedstocks, biogas/landfill/RNG production, geothermal energy production, and chemical manufacturing," Fredrick says in a news release. "Merichem Company has been a fantastic steward of this business for decades, and the entire Merichem Technologies team is excited about our new partnership with Black Bay and the ability to pursue new avenues for growth.”

Additionally, Merichem Company's CEO Kendra Lee will join the Merichem Technologies board. Lee's grandfather founded the company in 1945, and she told EnergyCapital last year that she hopes to continue the legacy of the company, which designs and fabricates equipment for sulfur removal.

“Our reputation has always stood on the principles of proven performance, unsurpassed expertise, and an uncommon commitment to our customers," Lee says in the release. "This divesture is a major milestone for Merichem Company as we continue to execute on our strategic vision, further cementing our leadership position in caustic services.”

Black Bay focuses on the energy and specialty chemical sectors, but the Merichem Technologies acquisition brings a new sulfur-treating platform to the firm.

“Sulfur treatment is a critical path item across many industrial applications around the world. Hydrogen sulfide, mercaptans, carbon dioxide, and other related impurities must be dealt with to ensure environmental compliance, sustainable operations, and a saleable end product," Tom Ambrose, partner of Black Bay, says in the release.

Who will be presenting at the 20th annual Rice Alliance Energy Tech Venture Forum — and more trending news from the week. Photo via rice.edu

Equinor buys into CCS project, Rice Alliance names energy startup participants, and more trending news

top stories

Editor's note: It's been a busy news week for energy transition in Houston, and some of this week's headlines resonated with EnergyCapital readers on social media and daily newsletter. Trending news included Rice Alliance naming its Energy Tech Venture Day participants, Equinor opting in to a CCS project on the Gulf Coast, and more.

Exclusive: Rice Alliance announces participants ahead of 20th annual energy symposium

Next month, 96 startups will pitch at an annual event focused on the future of energy. Here's who will be there. Photo via rice.edu

Dozens of companies will be a part of an upcoming energy-focused conference at Rice University — from climate tech startups to must-see keynote speakers.

The 20th annual Rice Alliance Energy Tech Venture Forum will take place on September 21 at Rice University’s Jones Graduate School of Business. Anyone who's interested in learning more about the major players in the low-carbon future in Houston and beyond should join the industry leaders, investors, and promising energy and cleantech startups in attendance.

This year's keynote speakers include Christina Karapataki, partner at Breakthrough Energy Ventures, the venture capital fund backed by Bill Gates; Scott Nyquist, vice chairman at Houston Energy Transition Initiative, founded by the Greater Houston Partnership; and Jeff Tillery, COO at Veriten. Read more.

Equinor buys into massive CCS joint venture project near Houston

Through an acquisition, Equinor has joined a joint venture carbon capture and storage project in southeast Texas. Image via Getty Images

A Norwegian energy company with its United States headquarters in Houston has announced it has acquired a significant chunk of a carbon capture and storage joint venture.

Equinor now owns a 25 percent interest in Bayou Bend CCS LLC, which is reported to be 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." Read more.

New Houston company launches to turn recycled materials into fuel

Tired of slow tire decomposition? This Houston company has a solution. Photo via InnoVentRenewables.com

Every year, over a billion tires are disposed of globally, and, while in use, tires are used to reach maximum speed on the road, their decomposition times are inordinately slow.

Houston-based InnoVent Renewables has a solution. The company launched this week to drive renewable energy forward with its proprietary continuous pyrolysis technology that is able to convert waste tires, plastics, and biomass into fuels and chemicals.

“We are thrilled to formally launch InnoVent Renewables and plan to ramp-up operations into early 2024," InnoVent Renewables CEO Vibhu Sharma says in a news release. “Our investors, strategic advisors, and management team are all fully committed to our success as we address the global challenge of waste tires. We firmly believe our proven process, deployed at scale globally, will have a huge positive impact on our climate and fill a clear environment need.” Read more.

French company to acquire Houston-based battery storage startup in $1B deal

Broad Reach Power's battery storage assets piqued a French company's interest. Photo via broadreachpower.com

A French utility company is buying the bulk of Houston-based Broad Reach Power’s battery energy storage business in a deal carrying an equity value of more than $1 billion.

Engie, has agreed to purchase the majority of the startup’s battery storage business from EnCap Energy Transition Fund I and three investment partners — New York City-based Yorktown Partners, Switzerland-based Mercuria Energy, and New York City-based Apollo Infrastructure Funds.

“This acquisition is fully in line with Engie’s strategy: It will contribute to the development of a low-carbon, affordable, and resilient energy system where flexible assets will play a critical role alongside renewables,” says Catherine MacGregor, the utility’s CEO. Read more.

How this 78-year-old Houston chemical company is evolving as an energy tech leader

“When we were founded, we were a chemical company. Today, we have morphed into a technology company,” says Kendra Lee, CEO of Merichem. Photo via LinkedIn

Kendra Lee had no designs on running the family business.

“In fact, I never planned on being a part of Merichem,” Lee recalls.

In 1945, Lee’s grandfather, John T. Files, and a pair of business partners founded the company in Houston. Their goal was to take a potential waste product and turn it into something that would benefit the oil and gas industry — an early attempt at sustainability.

What started as a soap and industrial cleaning company began procuring cresylate, which is a waste from the refineries treating gasoline, to recover spent cresylic acids, which are highly caustic, and refine them so they could be sold into the industrial chemicals market. Read more.

“When we were founded, we were a chemical company. Today, we have morphed into a technology company,” says Kendra Lee, CEO of Merichem. Photo via LinkedIn

How this 78-year-old Houston chemical company is evolving as an energy tech leader

at the helm

Kendra Lee had no designs on running the family business.

“In fact, I never planned on being a part of Merichem,” Lee recalls.

“When we were founded, we were a chemical company,” says Lee. “Today, we have morphed into a technology company.”

That transformation began in the 1970s. By 1997, when Merichem put the chemical end of their business into a joint venture with Sasol, the focus had transferred to Merichem Process Technology and Merichem Caustic Services, while Sasol took over the chemical branch.

Merichem Process Technology designs and fabricates equipment for sulfur removal, while Merichem Caustic Services works with companies to handle spent caustic for beneficial reuse rather than waste. The innovative company has more than 1,200 units licensed globally for operation in a myriad of applications. Those allow the 78-year-old company to further push sustainability as a priority.

Lee began her career with Merichem more than 20 years ago as an entry-level laboratory technician.

“I’ve never left, and I kept getting opportunities — now here I am,” she says.

Where she is is at the top of the ladder. Lee became chairman of the board in 2012 and CEO in 2014. But doesn’t think of Merichem as a family business. Lee is only the third member of the family to work at the company, including Files and the cousin who followed him as CEO.

Lee says that she seldom spoke to her grandfather about the business. He worked at Merichem until the day he died in 2002, but Lee recalls that, as a low-level employee, she didn’t have a single meeting with him before that time.

“Our interactions were very normal family dinners,” she explains.

Since her transition into leadership, Lee says, “My focus has really been on continuing the legacy my grandfather and cousin created. We’re very employee-focused and community-focused. Part of our role as part of our industry is to provide livelihoods and be good stewards in communities in which we operate.”

She adds that she’s also focused on innovation.

“That was a big part of who my grandfather was. That’s how we transitioned from being a chemical company to a technology company” she says. That means looking for new methods not only in the research facility, but in every segment of the company.

That eye toward the next big discovery will likely see a significant payoff in one to three years, when a new product, designed to improve on hydrogen sulfide removal — with a new catalyst that is regnerable — will be commercially available. But right now, customers can take advantage of the company’s new Standard LO-CAT® system. The product is the result of continuous improvements from the previous system and boasts low operating costs, no liquid waste streams, and significant turndown capability.

And what will follow for the Houston born-and-based company? Merichem has plans to push further into the renewables field, says Lee, adding that there is a continued need for Merichem’s technology as we transition into other types of energy, including geothermal. More than three quarters of a century after its founding, Merichem is still a company on the forefront.

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10+ must-attend Houston energy events happening in Q1 2026

Mark Your Calendar

Editor's note: With the new year comes a new slate of must-attend events for those in the Houston energy sector. We've rounded up a host of events to put on your calendar for Q1, including some that you can attend this month. Plus, other premier annual events will return in February and March 2026 and are currently offering early-bird, discounted registration. Book now.

Jan. 7-8 — AAPG Subsurface Energy to Power Workshop

This two-day AAPG workshop explores the expanding role of natural gas, geothermal, hydrogen, lithium, and uranium in accelerating electricity capacity. Participants will examine innovative solutions designed to reduce reliance on long-distance transmission lines, pipelines, and other costly infrastructure. Throughout the workshop, attendees will gain insight into both the technical deployment of subsurface resources and the land, legal, and permitting factors that influence project development.

This event begins Jan. 7 at Norris Conference Center at CityCentre. Register here.

Jan. 19-22 — PPIM 2026

The 38th international Pipeline Pigging & Integrity Management Conference and Exhibition takes place over four days at the George R. Brown Convention Center and the Hilton Americas. This industry forum is devoted exclusively to pigging for pipeline maintenance and inspection, engineering assessment, repair, risk management, and NDE. Two days of courses will take place Jan. 19-20, followed by the conference on Jan. 21-22, and the exhibition running Jan. 20-22. Register here.

Jan. 22 — MicroSeismic - Romancing Energy Forum

This forum will feature raw, unfiltered stories from the pioneers who changed the trajectory of American Shale. Attendees will gain insights into the playbooks, decisions, data, and lessons learned behind the biggest discoveries and engineering triumphs in modern energy. Keynote speakers include Tom and Diane Gates of Gates Ranch.

This event begins at 8 am on Jan. 22 at Norris Conference Center at CityCentre. Register here.

Jan. 22 — Houston Downton Luncheon: Beyond the Barrel: Pricing, Transition, and Geopolitics in 2026

Women's Energy Network Houston Chapter hosts this January lunch and learn featuring guest speaker Ha Nguyen with S&P Global Energy. Nguyen will discuss the global energy outlook for 2026, with a focus on strategic drivers, such as decarbonization and EV adoption, and a look at Houston's crucial role in the future of the U.S. market.

This event begins at 11:30 am on Jan. 22 at The Houston Club. Register here.

Feb. 18-20 — NAPE Summit Week 2026

NAPE is the energy industry’s marketplace for the buying, selling, and trading of prospects and producing properties. NAPE brings together all industry disciplines and companies of all sizes, and in 2026 it will introduce three new hubs — offshore, data centers, and critical minerals — for more insights, access, and networking opportunities. The event includes a summit, exhibition, and more.

This event begins Feb. 18 at George R. Brown Convention Center. Register here.

Feb. 24-26 — 2026 Energy HPC & AI Conference

The 2026 Energy HPC & AI Conference marks the 19th year for the Ken Kennedy Institute to convene experts from the energy industry, academia, and national labs to share breakthroughs for HPC and AI technologies. The conference returns to Houston with engaging speaker sessions, a technical talk program, networking receptions, add-on workshops, and more.

This event begins Feb. 24 at Rice University's BRC. Register here.

Feb. 26 — February Transition on Tap

Mix and mingle at Greentown Labs' first Transition on Tap event of the year. Meet the accelerator's newest startup members, who are working on innovations ranging from methane capture to emissions-free manufacturing processes to carbon management.

This event begins at 5:30 pm on Feb. 26 at Greentown Labs Houston. Register here.

March 2-4 — The Future Energy Summit

The Future Energy Summit is a premier global event bringing together visionaries, industry leaders, and energy experts to shape the future of energy. The second edition of the conference will provide a platform for groundbreaking discussions, cutting-edge technologies, and transformative strategies that will accelerate the energy transition.

This event begins March 2. Register here.

March 10-12 — World Hydrogen & Carbon Americas

S&P Global Energy brings together two leading events — Carbon Management Americas and World Hydrogen North America — to form a new must-attend event for those in the hydrogen and carbon industries. More than 800 senior leaders from across the energy value chain will attend this event featuring immersive roundtable discussions, hands-on training, real-world case studies, and unparalleled networking opportunities.

This event begins March 10 at Marriott Marquis Houston. Register here.

March 23-27 — CERAWeek 2026

CERAWeek 2026 will focus on "Convergence and Competition: Energy, Technology and Geopolitics." The industry's foremost thought leaders will convene in Houston to cultivate relationships and exchange transformative ideas during the annual event. Through the lens of 16 dynamic themes, CERAWeek 2026 will explore breakthroughs, cross-industry connections, and powerful partnerships that are accelerating the transformation of the global energy system.

This event begins March 23. Register here.

Japanese company launches solar module manufacturing at Houston-area plant

solar plant

A local subsidiary of a Japanese solar equipment manufacturer recently began producing solar modules at a new plant in Humble.

TOYO Co. Ltd.’s TOYO Solar LLC subsidiary can produce 1 gigawatt worth of solar modules per year at a 567,140-square-foot plant it leases in Lovett Industrial’s Nexus North Logistics Park on Greens Road. TOYO Solar’s next phase will accommodate 2.5 gigawatts’ worth of solar module manufacturing. The subsidiary eventually plans to expand manufacturing capacity to 6.5 gigawatts.

For now, TOYO Solar operates only one assembly line at the Humble plant. Once TOYO Solar has five assembly lines up and running, it could employ as many as 750 manufacturing workers there, according to Connect CRE.

TOYO says the plant enlarges its U.S. footprint “to be closer to the majority of its clients, meet the demand for American-made solar panels, and contribute to the growing demand for secure, sustainable energy solutions as demands on the grid continue to rise.”

Last month, TOYO purchased the remaining 24.99 percent stake in TOYO Solar to make it a wholly owned subsidiary. TOYO entered the Houston-area market through its 2024 acquisition of a majority stake in Solar Plus Technology Texas LLC.

Record $9.6M fine for Houston-based co. after Gulf of Mexico oil spill

In the news

Pipeline safety regulators on Monday, January 5, assessed their largest fine ever against the company responsible for leaking 1.1 million gallons of oil into the Gulf off the coast of Louisiana in 2023. But the $9.6 million fine isn’t likely to be a major burden for Third Coast to pay.

This single fine is close to the normal total of $8 million to $10 million in all fines that the Pipeline and Hazardous Materials Safety Administration hands out each year. But Third Coast has a stake in some 1,900 miles of pipelines, and in September, the Houston-based company announced that it had secured a nearly $1 billion loan.

Pipeline Safety Trust Executive Director Bill Caram said this spill “resulted from a company-wide systemic failure, indicating the operator’s fundamental inability to implement pipeline safety regulations,” so the record fine is appropriate and welcome.

“However, even record fines often fail to be financially meaningful to pipeline operators. The proposed fine represents less than 3% of Third Coast Midstream’s estimated annual earnings,” Caram said. “True deterrence requires penalties that make noncompliance more expensive than compliance.”

The agency said Third Coast didn't establish proper emergency procedures, which is part of why the National Transportation Safety Board found that operators failed to shut down the pipeline for nearly 13 hours after their gauges first hinted at a problem. PHMSA also said the company didn't adequately assess the risks or properly maintain the 18-inch Main Pass Oil Gathering pipeline.

The agency said the company “failed to perform new integrity analyses or evaluations following changes in circumstances that identified new and elevated risk factors” for the pipeline.

That echoed what the NTSB said in its final report in June, that “Third Coast missed several opportunities to evaluate how geohazards may threaten the integrity of their pipeline. Information widely available within the industry suggested that land movement related to hurricane activity was a threat to pipelines.”

The NTSB said the leak off the coast of Louisiana was the result of underwater landslides, caused by hazards such as hurricanes, that Third Coast, the pipeline owner, failed to address despite the threats being well known in the industry.

A Third Coast spokesperson said the company has been working to address regulators' concerns about the leak, so it was taken aback by some of the details the agency included in its allegations and the size of the fine.

“After constructive engagement with PHMSA over the last two years, we were surprised to see aspects of the recent allegations that we believe are inaccurate and exceed established precedent. We will address these concerns with the agency moving forward," the company spokesperson said.

The amount of oil spilled in this incident was far less than the 2010 BP oil disaster, when 134 million gallons were released in the weeks following an oil rig explosion, but it could have been much smaller if workers in the Third Coast control room had acted more quickly, the NTSB said.

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