Acquisitions, consolidations, divestitures — here's what news of energy transition deals in Houston trended this year. Photo via Getty Images

Editor's note: As the year comes to a close, EnergyCapital is looking back at the year's top stories in Houston energy transition. From acquisitions to consolidations, this year marked a big one for some of Houston's energy companies. Here were the top five most-read articles covering deals of 2024 — be sure to click through to read the full story.

PE firm acquires Houston renewables fuels infrastructure company

Ara Partners announced this week that it has acquired a majority interest in Houston-based USD Clean Fuels. Image via Shutterstock.

Fresh off its $3 billion fund closure, a Houston private equity firm has made its latest acquisition.

Ara Partners announced this week that it has acquired a majority interest in Houston-based USD Clean Fuels, a developer of logistics infrastructure for renewable fuels. The terms of the deal were not disclosed.

"We have high conviction that the green molecules economy – whether it's renewable fuel feedstocks or biofuels – offers disproportionate opportunity for returns and impact," George Yong, partner and co-head of Infrastructure at Ara Partners, says. Continue reading.

McKinsey acquires Houston-area co. to enhance sustainability services

According to McKinsey data, more than $3.5 trillion will be invested in green hydrogen, carbon capture, renewable energy, and other projects that are working toward net-zero transition by 2050. Photo via ses-estimating.com

A global management consulting company has executed on an acquisition key to its plans amid the energy transition.

McKinsey & Company announced the acquisition of Strategic Estimating Systems, a Sugar Land-based consulting firm specializing in cost estimation for oil, gas, and chemical process industries. The acquisition provides McKinsey with enhanced benchmarking capabilities across capital project management — especially within the energy transition.

The terms of the deal were not disclosed.

"The capital projects ecosystem is presented with a once-in-a-generation chance to aid in transforming economies to achieve net zero," Justin Dahl, partner and global leader of McKinsey & Company's Capital Analytics, says. Continue reading.

Houston chemical company divests new tech arm to PE

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. Continue reading.

SLB to consolidate carbon capture business in partnership

The combined technology portfolios will accelerate the introduction of promising early-stage decarbonization technology. Photo via Getty Images

SLB announced its plans to combine its carbon capture business with Norway company, Aker Carbon Capture.

Upon completion of the transaction, which is expected to close by the end of the second quarter of this year, SLB will own 80 percent of the combined business and ACC will own 20 percent.

According to a SLB news release, the combined technology portfolios will accelerate the introduction of promising early-stage decarbonization technology.

“For CCUS to have the expected impact on supporting global net-zero ambitions, it will need to scale up 100-200 times in less than three decades,” Olivier Le Peuch, CEO of SLB, says. Continue reading.

Houston-based co. closes acquisition of 50 percent stake in Texas cogeneration facility

Fengate has completed the acquisition of a 50 percent stake in a Texas cogeneration facility, which supplies power and steam to a major industrial site. Photo via Fengate

Fengate Asset Management announced the financial close on the acquisition of a 50 percent interest in Freeport Power Limited, which owns a 440-megawatt cogeneration facility in Freeport, Texas.

FPL is located near the Freeport Energy Center, which is a 260-megawatt cogeneration facility that is currently owned and managed by Fengate. The two facilities work to provide cost-effective power and steam to Dow’s Freeport site, which is the largest integrated chemical manufacturing complex in the Western Hemisphere.

“We are thrilled to have closed this acquisition, which aligns with our strategy of acquiring behind-the-meter cogeneration projects with strong industrial partners like Dow,” Greg Calhoun, managing director of Infrastructure Investments at Fengate, says. Continue reading.

Fengate has completed the acquisition of a 50 percent stake in a Texas cogeneration facility, which supplies power and steam to a major industrial site. Photo via Fengate

Houston-based co. closes acquisition of 50 percent stake in Texas cogeneration facility

M&A Moves

Fengate Asset Management announced the financial close on the acquisition of a 50 percent interest in Freeport Power Limited, which owns a 440-megawatt cogeneration facility in Freeport, Texas.

FPL is located near the Freeport Energy Center, which is a 260-megawatt cogeneration facility that is currently owned and managed by Fengate. The two facilities work to provide cost-effective power and steam to Dow’s Freeport site, which is the largest integrated chemical manufacturing complex in the Western Hemisphere.

“We are thrilled to have closed this acquisition, which aligns with our strategy of acquiring behind-the-meter cogeneration projects with strong industrial partners like Dow,” Greg Calhoun, managing director of Infrastructure Investments at Fengate, says in a news release.

Fengate was able to acquire interest in FPL under a strategic operating partnership with asset manager Ironclad Energy. The partnership with Ironclad was established in 2022 to acquire and operate cogeneration, district energy and other power generation projects throughout North America.

“This is our second acquisition with Fengate, and we look forward to continuing our partnership to optimize and expand the portfolio,” Christopher Fanella, president and CFO of Ironclad Energy, says in the release.

Fengate opened its first U.S. office in 2017 in Houston.

“Combined heat and power projects like FPL will continue to play an important role in the U.S. power industry – especially for hard-to-abate industrial sectors – to ensure reliability, efficiency and affordability,” adds in the release.

Included in the deal, is the newly leased facility that spans 567,140 square feet and can accommodate 2.5 gigawatts of solar module manufacturing capacity. Photo via Pixabay

Solar company acquires Houston manufacturer to expand production capacity, meet growing demand

M&A moves

Solar solution company TOYO Solar announced it has agreed to acquire 100 percent of membership interests in Houston area’s Solar Plus Technology Texas LLC.

Included in the deal, is the newly leased facility that spans 567,140 square feet and can accommodate 2.5 gigawatts of solar module manufacturing capacity. The goal is to expand it to 6.5 gigawatts by 2029. TOYO Solar LLC will make a capital contribution of $19.96 million to TOYO Solar LLC.

"By acquiring Solar Plus, we will accelerate our development and leverage our team's proven manufacturing excellence, as well as the extensively established customer relationships and the brand of our sister company, Vietnam Sunergy, a Tier 1 Bloomberg NEF solar manufacturer," Junsei Ryu, chairman and CEO of TOYO, says in a news release. "We are confident that our expansion in the U.S. will effectively deliver a comprehensive solar technology solution, addressing bottlenecks for developers, meeting local content requirements for U.S. solar projects, and enhancing TOYO's competitive advantage."

The factory construction of Phase 1 has been completed, and equipment will begin to arrive by early 2025.The facility's first 1 gigawatts production is expected to commence by mid-2025 with production capacity increasing to 2.5 gigawatts by the end of 2025 according to the company.

As the demand for American-made solar panels continues amid grid reliability issues in Texas, TOYO hopes it can help with its sustainable energy solutions after having success in Vietnam and Ethiopia.

"Our strategy is to supply end customers with solar solutions that are technologically advanced, highly reliable, and cost competitive,” Ryu says in the release. “We are committed to building a robust global solar supply chain structure that efficiently and competitively serves the U.S. market and other regions, adapting to a dynamic policy environment.”

Houston-based ROGII has acquired a new software to integrate into its platform. Photo via ROGII.com

Houston geology software provider makes strategic acquisition to expand platform

growing

An advanced geosteering, geoscience, and drilling software solutions company based in Houston has announced the acquisition of of a software platform.

ROGII plans to acquire TerraSLS's TLog Mudlog Editor software, which is used to generate vertical, and horizontal striplogs for use by geologists. The acquisition “will significantly enhance ROGII's product offerings by providing operators and clients with unprecedented real-time connectivity to mudlogging data,” according to ROGII. Mudlogging is a process that involves examining the cuttings of rock brought to the surface by the drilling.

“Our acquisition of TLog marks another step forward in our mission to deliver the most advanced, real-time data solutions to the oil and gas industry,” CEO of ROGII Igor B. Uvarov says in a news release. “The integration of TLog’s capabilities into our Solo Cloud platform will revolutionize the way operators and mudlogging service companies interact, making mudlogging a truly real-time process and driving greater efficiency and collaboration.”

One way it works is that ROGII will integrate TLog into its Solo Cloud platform, which will advance mudlogging data. This gathers it all into a real-time data exchange between mudlogging service companies and its operators.

The integration will allow operators to monitor mudlogging activities in real-time, which means a possible faster and more informed decision-making processes. The user will get immediate access to data, which can help enhance collaboration and improve efficiency. In addition, the mudlogging data will be safely stored on Solo Cloud for future analysis and data integration, which assists with maintaining integrity of the data.

“We look forward to investing in further development of TLog, increasing user-friendliness, expanding adoption worldwide, and making it the industry standard, being used by all mudlogging service companies,” Uvarov adds.
Dallas-based CBRE has acquired NRG's renewable advisory group. Photo via NRG.com

Houston-based NRG Energy exits renewables group to Texas real estate company

M&A Moves

NRG Energy, headquartered in Houston, has sold its renewable advisory group to Dallas-based commercial real estate services powerhouse CBRE. Financial terms weren’t disclosed.

The advisory group, led by Miro Sutton, brokers renewable energy deals, such as community- and utility-scale transactions, and advises clients on handling tax credits for renewable energy projects. The team works primarily with Fortune 500 companies.

Sutton joined CBRE as head of renewables and energy after overseeing the NRG advisory group. The group has arranged deals involving more than 5,000 megawatts of clean power.

“CBRE targeted this specific advisory team because of their unique approach to renewable procurement and expansive coverage of renewable offerings. They have enabled hundreds of projects and thousands of [megawatts] through their innovative contract structures that reduce risk and enhance economics for their customers,” Robert Bernard, CBRE’s chief sustainability officer, told Utility Dive.

In a news release, Bernard says market demand for renewable energy continues to grow rapidly as companies seek to meet their net-zero goals and other energy-related commitments.

“However, integrating renewable energy into a company’s real estate can be a complex process,” Bernard adds. “This acquisition enables CBRE to offer a wide range of energy-related sustainability services to all our clients, both occupiers and investors, and help them simplify the complexity associated with planning, sourcing and managing renewable energy.”

Celly offers logistics, storage, and dispensing to innovative modular refueling station services. Photo via cellyh2.com

Two Texas companies combine to enhance hydrogen fueling, storage infrastructure

M&A moves

A provider of hydrogen infrastructure solutions Celly H2 has announced its acquisition of ChemTech Energy (CNE) to continue Celly's mission of leading hydrogen fueling and storage infrastructure.

The Willis, Texas-based company offers logistics, storage, and dispensing to innovative modular refueling station services. Montgomery’s Chemtec Energy has a 25-year legacy in the oil and gas market and specializes in modular hydrogen fueling and storage infrastructure solutions.

"This acquisition marks a significant milestone for Celly as we continue to expand our portfolio in the renewable energy market," Founder and CEO of Celly Austin Terry says in a news release. "We are excited to welcome the talented team at Chemtec New Energies to Celly and look forward to leveraging their expertise to drive innovation and deliver sustainable energy solutions that meet the evolving needs of our customers."

According to Celly, the deal plans to address challenges related to infrastructure reliability, affordability, and efficiency through the deployment of modular advanced hydrogen refueling stations (MAHRS). These stations, when combined with modular hydrogen storage units, are designed to streamline the hydrogen delivery value chain, which can enhance accessibility and accelerate transitions to clean energy ecosystems.

"We launched CNE to focus on renewable energy and hydrogen refueling solutions,” Milton Page, CEO of Chemtec Energy Services, adds. “What was a small division of our organization is now ready to evolve into something bigger. We are proud to combine our strengths with Celly which will allow us to rapidly support this growing demand and market.”

Ad Placement 300x100
Ad Placement 300x600

CultureMap Emails are Awesome

Houston researchers harness dialysis for new wastewater treatment process

waste not

By employing medical field technology dialysis, researchers at Rice University and the Guangdong University of Technology in China uncovered a new way to treat high-salinity organic wastewater.

In the medical field, dialysis uses a machine called a dialyzer to filter waste and excess fluid from the blood. In a study published in Nature Water, Rice’s team found that mimicking dialysis can separate salts from organic substances with minimal dilution of the wastewater, addressing some of the limitations of previous methods.

The researchers say this has the potential to lower costs, recover valuable resources across a range of industrial sectors and reduce environmental impacts.

“Traditional methods often demand a lot of energy and require repeated dilutions,” Yuanmiaoliang “Selina” Chen, a co-first author and postdoctoral associate in Elimelech’s lab at Rice, said in a news release. “Dialysis eliminates many of these pain points, reducing water consumption and operational overheads.”

Various industries generate high-salinity organic wastewater, including petrochemical, pharmaceutical and textile manufacturing. The wastewater’s high salt and organic content can present challenges for existing treatment processes. Biological and advanced oxidation treatments become less effective with higher salinity levels. Thermal methods are considered “energy intensive” and susceptible to corrosion.

Ultimately, the researchers found that dialysis effectively removed salt from water without requiring large amounts of fresh water. This process allows salts to move into the dialysate stream while keeping most organic compounds in the original solution. Because dialysis relies on diffusion instead of pressure, salts and organics cross the membrane at different speeds, making the separation method more efficient.

“Dialysis was astonishingly effective in separating the salts from the organics in our trials,” Menachem Elimelech, a corresponding author on the study and professor of civil and environmental engineering and chemical and biomolecular engineering at Rice, said in a news release. “It’s an exciting discovery with the potential to redefine how we handle some of our most intractable wastewater challenges.”

Virtual power plant from Houston-area company debuts at CES

Powering Up

Brookshire, Texas-based decentralized energy solution company AISPEX Inc. debuted its virtual power plant (VPP) platform, known as EnerVision, earlier this month at CES in Las Vegas.

EnerVision offers energy efficiency, savings and performance for residential, commercial and industrial users by combining state-of-the-art hardware with an AI-powered cloud platform. The VPP technology enables users to sell excess energy back to the grid during demand peaks.

AISPEX, or Advanced Integrated Systems for Power Exchange, has evolved from an EV charging solutions company into an energy systems innovator since it was founded in 2018. It focuses on integrating solar energy and decentralized systems to overcome grid limitations, reduce upgrade costs and accelerate electrification.

Regarding grid issues, the company hopes by leveraging decentralized solar power and Battery Energy Storage Systems (BESS), EnerVision can help bring energy generation closer to consumption, which can ease grid strain and enhance stability. EnerVision plans to do this by addressing “aging infrastructure, grid congestion, increasing electrification and the need for resilience against extreme weather and cyber threats,” according to the company.

One of the company's latest VPP products is SuperHub, which is an all-in-one charging station designed to combine components like solar panels, energy storage systems, fast EV chargers, mobile EV chargers and LCD display screens, into a unified, efficient solution.

“It supports clean energy generation and storage but also ensures seamless charging for electric vehicles while providing opportunities for communication or advertising through its built-in displays,” says Vivian Nie, a representative from AISPEX.

Also at CES, AISPEX displayed its REP Services, which offer flexible pricing, peak load management, and renewable energy options for end-to-end solutions, and its Integrated Systems, which combine solar power, battery storage, EV charging and LCD displays.

“We had the opportunity to meet new partners, reconnect with so many old friends, and dive into discussions about the future of e-mobility and energy solutions,” CEO Paul Nie said on LinkedIn.

In 2024, AISPEX installed its DC Fast chargers at two California Volkswagen locations.

Houston-based energy transition leader talks new role, shares future predictions

new hire

For some companies, all that’s needed to make a seismic shift toward innovation is to hire the right person to steer the organization in a transcendent direction.

Arcadis, a sustainable design, engineering, and consultancy solutions company, is channeling this concept by hiring Masjood Jafri as its new National Energy Transition Strategic Advisor and Business Development Lead. In the role, Jafri will help lead and develop the company’s energy transition business growth and strategy for its interests in the United States alongside Matthew Yonkin, National Energy Transition Solution Leader, based in New York.

“I have a fairly diverse background, with about a decade in the energy industry with an oil and gas, power and petrochemicals background,” says Jafri, who moved to Houston from the U.K. back in 2012. “But prior to that, I had about a decade in the infrastructure world, looking into the transportation market, and the manufacturing sector, as well as working as a lender's advisor in the capital market. So, in this very transformative period, you need to connect all the dots.”

With just over six months in his new role, Jafri leverages his 20 years of experience in leading the successful delivery of capital programs and projects as the strategic advisor to Arcadis’ own capital projects.

“Arcadis is on a journey to be the sustainability partner or sustainable transformation partner for our clients,” Jafri says. “And the path to sustainability goes through energy transition. Arcadis has been investing quite heavily in that space for us to be a leading consulting services provider for energy companies.

Jafri’s hire comes as Arcadis moves its business operations in Houston to a new centralized office in the Galleria area. According to Jafri, this will bring the company’s expertise under one roof. With Houston being the energy capital of the world, Jafri says Arcadis is positioned to lead and deliver results for the energy demand in the United States and globally.

“Houston is the Silicon Valley of energy,” Jafri says. “The challenge is to continue to drive with that force. … We have the talent in the city, we have the right mindset—very entrepreneurial, and obviously a lot of capital commitment to make these changes.

“And it is not just coming from the private sector, it is also coming from the public sector. So, I think the stars are aligning in the context of what is needed for us to have a planet-positive future and Houston being suitably positioned to deliver to that,” he adds.

And while keeping up with the demand for energy and moving towards clean energy are equally important challenges, Jafri is more focused on addressing the latter.

“Clean energy is certainly a bigger challenge because it requires a very broad area of energy sources to come together and to make it cleaner,” Jafri says. “Technologically, some of those things are not ready yet, at least to be scalable in a commercial and profitable way. So that's the challenge. I think it is a clean energy challenge, but obviously, the demand side makes it a bit more complicated.”

Texans, and more specifically Houstonians, have seen firsthand the complications of demand and the pitfalls of energy security and resilience. Addressing these issues, along with many other sustainability challenges, will also be part of Jafri’s core mission at Arcadis.

“As we saw in severe climate conditions, the grid is vulnerable and so are the people connected to the grid,” Jafri says. “The better we can make the grid more resilient and more adaptive to these changes, the more satisfactory conditions will be on the ground for people who are affected.”

Jafri asserts that the industry is already considering numerous options, including all colors of hydrogen, solar, wind and geothermal, in addition to fossil-based energy (natural gas). These measures are already in progress, but consumers are concerned with climate change and, of course, the impact on their electricity bills. Still, states like California, Washington and Texas are making progress.

“I would say by the year 2030 you would start to see a pretty significant movement in the right direction,” Jafri says. “If you look from a federal policy perspective, we want to produce 100 percent of the electricity clean by 2035. That is an expected goal, but it’s all happening.”