ExxonMobil breaks ground, new Houston corporate leader, and more trending energy transition news

A Texas wind energy project goes online — and more energy transition news. Photo via Getty Images

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 news of renewable energy projects, a new corporate appointment, and more.

Houston companies partner on sustainable plastics alternative

Lummus and Citroniq say their first plant, set for completion in 2027, will produce 400,000 metric tons of green polypropylene each year. Photo via lummustechnology.com

Two Houston companies, Lummus Technology and Citroniq Chemicals, have paired up to build North American plants that produce green polypropylene.

Polypropylene is a thermoplastic used to manufacture items such as plastic packaging, plastic parts, medical supplies, textiles, and fibers. Green polypropylene is made from biomass.

Lummus and Citroniq say their first plant, set for completion in 2027, will produce 400,000 metric tons of green polypropylene each year. The plant will be at an undisclosed location in the Midwest. Read more.

Prominent Houston energy business leader to retire, successor named

Amy Chronis is passing over the local leadership reins at Deloitte to Melinda Yee. Photos courtesy

Amy Chronis, a Houston business leader within the energy industry and beyond, is retiring next summer. Her replacement has been named.

Melinda Yee will be the incoming Houston managing partner at Deloitte, replacing Chronis who held the role along with the title vice chair and US energy and chemicals leader. Chronis will retire in June 2024, and Yee's new role is effective January 2.

“Melinda has been an active and valued member of Deloitte’s Houston leadership team. She brings an impressive depth of both industry and marketplace knowledge to her new role as managing partner,” Chronis says in a news release. “I am confident that she will be a great leader for our Houston professionals and in the local community.” Read more.

Central Texas wind energy facility goes online to power Target Corp.

This new Texas wind farm is now partly powering Target Corp. Photo via swiftcurrentenergy.com

A Texas wind energy project has officially delivered and is actively providing power to its customer, Target Corp.

Boston-based Swift Current Energy, which has an office in Houston, announced this week that its 197 MW Castle Gap Wind project is operational. It has the capacity to create enough pollution-free energy to power more than 50,000 homes annually.

"Castle Gap Wind is a momentous project for Swift Current Energy as we grow our projects under asset management and operations," Eric Lammers, CEO and co-founder of Swift Current Energy, says in a news release. "Castle Gap Wind is one of the earliest projects supported by the Inflation Reduction Act, and we are thankful for our partners at Target, Goldman Sachs, MUFG, CaixaBank and of course the entire Swift Current Energy team who helped make the Project possible." Read more.

ExxonMobil breaks ground on Texas carbon dioxide storage project

The rig stands 225 feet tall and extends 8,000 feet below the subsurface. Photo via exxonmobil.com

ExxonMobil announced this month that it has officially broken ground on a groundbreaking carbon dioxide storage site.

According to a release from the company, a new rig is currently being used to gather information about an underground site in Southeast Texas. The rig stands 225 feet tall, but more importantly extends 8,000 feet below the subsurface to investigate if the site is a safe place to store carbon underground.

“Everyone’s excited about this appraisal well because we’re literally breaking ground on a new chapter of our work to help reduce industrial emissions,” Joe Colletti, who oversees carbon capture and storage development along the Gulf Coast for Exxon, says in a statement. Read more.

New study from Houston research team looks at how the Earth cycles fossil carbon

A Rice University professor studied the Earth's carbon cycle in the Rio Madre de Dios to shed light on current climate conditions. Photo courtesy of Mark Torres/Rice University

Carbon cycles through Earth, its inhabitants, and its atmosphere on a regular basis, but not much research has been done on that process and qualifying it — until now.

In a recent study of a river system extending from the Peruvian Andes to the Amazon floodplains, Rice University’s Mark Torres and collaborators from five institutions proved that that high rates of carbon breakdown persist from mountaintop to floodplain.

“The purpose of this research was to quantify the rate at which Earth naturally releases carbon dioxide into the atmosphere and find out whether this process varies across different geographic locations,” Torres says. Read more.

A Rice University professor studied the Earth's carbon cycle in the Rio Madre de Dios to shed light on current climate conditions. Photo courtesy of Mark Torres/Rice University

New study from Houston research team looks at how the Earth cycles fossil carbon

analyzing earth

Carbon cycles through Earth, its inhabitants, and its atmosphere on a regular basis, but not much research has been done on that process and qualifying it — until now.

Torres published his findings in a study published in PNAS, explaining how they used rhenium — a silvery-gray, heavy transition metal — as a proxy for carbon. The research into the Earth’s natural, pre-anthropogenic carbon cycle stands to benefit humanity by providing valuable insight to current climate challenges.

“This research used a newly-developed technique pioneered by Robert Hilton and Mathieu Dellinger that relies on a trace element — rhenium — that’s incorporated in fossil organic matter,” Torres says. “As plankton die and sink to the bottom of the ocean, that dead carbon becomes chemically reactive in a way that adds rhenium to it.”

The research was done in the Rio Madre de Dios basin and supported by funding from a European Research Council Starting Grant, the European Union COFUND/Durham Junior Research Fellowship, and the National Science Foundation.

“I’m very excited about this tool,” Torres said. “Rice students have deployed this same method in our lab here, so now we can make this kind of measurement and apply it at other sites. In fact, as part of current research funded by the National Science Foundation, we are applying this technique in Southern California to learn how tectonics and climate influence the breakdown of fossil carbon.”

Torres also received a three-year grant from the Department of Energy to study soil for carbon storage earlier this year.

Two Rice University researchers just received DOE funding for carbon storage research. Photo by Gustavo Raskosky/Rice University

Research team lands DOE grant to investigate carbon storage in soil

planting climate change impact

Two researchers at Rice University are digging into how soil is formed with hopes to better understand carbon storage and potential new methods for combating climate change.

Backed by a three-year grant from the Department of Energy, the research is led by Mark Torres, an assistant professor of Earth, environmental and planetary sciences; and Evan Ramos, a postdoctoral fellow in the Torres lab. Co-investigators include professors and scientists with the Brown University, University of Massachusetts Amherst and Lawrence Berkeley National Laboratory.

According to a release from Rice, the team aims to investigate the processes that allow soil to store roughly three times as much carbon as organic matter compared to Earth's atmosphere.

“Maybe there’s a way to harness Earth’s natural mechanisms of sequestering carbon to combat climate change,” Torres said in a statement. “But to do that, we first have to understand how soils actually work.”

The team will analyze samples collected from different areas of the East River watershed in Colorado. Prior research has shown that rivers have been great resources for investigating chemical reactions that have taken place as soil is formed. Additionally, research supports that "clay plays a role in storing carbon derived from organic sources," according to Rice.

"We want to know when and how clay minerals form because they’re these big, platy, flat minerals with a high surface area that basically shield the organic carbon in the soil," Ramos said in the statement. "We think they protect that organic carbon from breakdown and allow it to grow in abundance.”

Additionally, the researchers plan to create a model that better quantifies the stabilization of organic carbon over time. According to Torres, the model could provide a basis for predicting carbon dioxide changes in Earth's atmosphere.

"We’re trying to understand what keeps carbon in soils, so we can get better at factoring in their role in climate models and render predictions of carbon dioxide changes in the atmosphere more detailed and accurate,” Torres explained in the statement.

The DOE and Rice have partnered on a number of projects related to the energy transition in recent months. Last week, Rice announced that it would host the Carbon Management Community Summit this fall, sponsored by the DOE, and in partnership with the city of Houston and climate change-focused multimedia company Climate Now.

In July the DOE announced $100 million in funding for its SCALEUP program at an event for more than 100 energy innovators at the university.

Rice also recently opened its 250,000-square-foot Ralph S. O’Connor Building for Engineering and Science. The state-of-the-art facility is the new home for four key research areas at Rice: advanced materials, quantum science and computing, urban research and innovation, and the energy transition.

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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.

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