M&A moves: Most trending Houston energy transition news on big deals from 2024

year in review

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.

Ian Goldberg joins the Houston office of Akin. Photo via akingump.com

Law firm's Houston office expands energy expertise

new hire

Leading adviser to energy companies, Akin Gump Strauss Hauer & Feld, has announced a new energy transactions partner in the firm’s Houston office.

Ian Goldberg will advise clients on various energy transactions, which will include project development, mergers and acquisitions, divestitures, and financial transactions that will involve oil and gas assets, energy transition investments and rare earth mineral deposits.

He previously led the energy transactions practice at Hunton Andrews Kurth.

“Akin has a top-tier integrated platform across the entire energy value chain,” Goldberg says in a news release.” I’m excited to be joining a growing and dynamic team.”

He will be joining recent additions to Akin’s energy practice that include projects & energy transition partners Ike Emehelu (New York), Alex Harrison, Matt Hardwick and Dan Giemajner (London), energy regulatory partners Emily Mallen and Stephen Hug (Washington, D.C.), tax equity partner Sam Guthrie (Washington, D.C.) and projects & energy transition partner Vanessa Richelle Wilson (Washington, D.C.)..

“Ian adds depth to our energy team with extensive experience in the onshore and offshore upstream and midstream sectors, and his current representation of clients in the carbon capture, utilization & storage and hydrogen spaces further strengthens our growing projects & energy transition practice,” corporate practice co-head Zachary Wittenberg adds in the release.

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CenterPoint launches $65B capital improvement plan

grid growth

To support rising demand for power, Houston-based utility company CenterPoint Energy has launched a $65 billion, 10-year capital improvement plan.

CenterPoint said that in its four-state service territory — Texas, Indiana, Minnesota and Ohio — the money will go toward building and maintaining a “resilient” electric grid and a safe natural gas system.

In the Houston area, CenterPoint forecasts peak demand for electricity will increase nearly 50 percent, to almost 31 gigawatts, by 2031 and peak demand will climb to almost 42 gigawatts by the middle of the next decade. CenterPoint provides energy to nearly 2.8 million customers in the Houston area.

In addition to the $65 billion capital improvement budget, which is almost 40 percent higher than the 2021 budget, CenterPoint has identified more than $10 billion in investment opportunities that could further improve electric and natural gas service.

“Every investment we make at CenterPoint is in service of our approximately seven million metered customers we have the privilege to serve,” CenterPoint president and CEO Jason Wells said in a news release.

“With our customer-driven yet conservative approach to growth, we continue to see significant potential for even more investment for the benefit of our customers that is not yet reflected in our new plan,” he added.

UH projects propose innovative reuse of wind turbines and more on Gulf Coast

Forward-thinking

Two University of Houston science projects have been selected as finalists for the Gulf Futures Challenge, which will award a total of $50 million to develop ideas that help benefit the Gulf Coast.

Sponsored by the National Academies of Science, Engineering and Medicine’s Gulf Coast Research Program and Lever for Change, the competition is designed to spark innovation around problems in the Gulf Coast, such as rising sea levels, pollution, energy security, and community resiliency. The two UH projects beat out 162 entries from organizations based in Alabama, Florida, Louisiana, Mississippi, and Texas.

“Being named a finalist for this highly competitive grant underscores the University of Houston’s role as a leading research institution committed to addressing the most pressing challenges facing our region,” said Claudia Neuhauser, vice president for research at UH.

“This opportunity affirms the strength of our faculty and researchers and highlights UH’s capacity to deliver innovative solutions that will ensure the long-term stability and resilience of the Gulf Coast.”

One project, spearheaded by the UH Repurposing Offshore Infrastructure for Continued Energy (ROICE) program, is studying ways to use decommissioned oil rig platforms in the Gulf of Mexico as both clean energy hydrogen power generators as well a marine habitats. There are currently thousands of such platforms in the Gulf.

The other project involves the innovative recycling of wind turbines into seawall and coastal habitats. Broken and abandoned wind turbine blades have traditionally been thought to be non-recyclable and end up taking up incredible space in landfills. Headed by a partnership between UH, Tulane University, the University of Texas Health Science Center at Houston, the city of Galveston and other organizations, this initiative could vastly reduce the waste associated with wind farm technology.

wind turbine recycled for Gulf Coast seawall. Wind turbines would be repurposed into seawalls and more. Courtesy rendering

"Coastal communities face escalating threats from climate change — land erosion, structural corrosion, property damage and negative health impacts,” said Gangbing Song, Moores Professor of Mechanical and Aerospace Engineering at UH and the lead investigator for both projects.

“Leveraging the durability and anti-corrosive properties of these of decommissioned wind turbine blades, we will build coastal structures, improve green spaces and advance the resilience and health of Gulf Coast communities through integrated research, education and outreach.”

The two projects have received a development grant of $300,000 as a prize for making it to the finals. When the winner are announced in early 2026, two of the projects will net $20 million each to bring their vision to life, with the rest earning a consolation prize of $875,000, in additional project support.

In the event that UH doesn't grab the grand prize, the school's scientific innovation will earn a guaranteed $1.75 million for the betterment of the Gulf Coast.

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This article originally appeared on CultureMap.com.

ERCOT steps up grid innovation efforts to support growing power demand

grid boost

As AI data centers gobble up more electricity, the Electric Reliability Council of Texas (ERCOT) — whose grid supplies power to 90 percent of Texas — has launched an initiative to help meet challenges presented by an increasingly strained power grid.

ERCOT, based in the Austin suburb of Taylor, said its new Grid Research, Innovation, and Transformation (GRIT) initiative will tackle research and prototyping of emerging technology and concepts to “deeply understand the implications of rapid grid and technology evolution, positioning ERCOT to lead in the future energy landscape.”

“As the ERCOT grid continues to rapidly evolve, we are seeing greater interest from industry and academia to collaborate on new tools and innovative technologies to advance the reliability needs of tomorrow’s energy systems,” ERCOT President and CEO Pablo Vegas said in a news release. “These efforts will provide an opportunity to share ideas and bring new innovations forward, as we work together to lead the evolution and expansion of the electric power grid.”

In conjunction with the GRIT initiative, ERCOT launched the Research and Innovation Partnership Engagement (RIPE) program. The program enables partners to work with ERCOT on developing technology aimed at resolving grid challenges.

To capitalize on ideas for grid improvements, the organization will host its third annual ERCOT Innovation Summit on March 31 in Round Rock. The summit “brings together thought leaders across the energy research and innovation ecosystem to explore solutions that use innovation to impact grid transformation,” ERCOT said.

“As the depth of information and industry collaboration evolves, we will continue to enhance the GRIT webpages to create a dynamic and valuable resource for the broader industry to continue fostering strong collaboration and innovation with our stakeholders,” said Venkat Tirupati, ERCOT’s vice president of DevOps and grid transformation.

ERCOT’s GRIT initiative comes at a time when the U.S. is girding for heightened demand for power, due in large part to the rise of data centers catering to the AI boom.

A study released in 2024 by the Electric Power Research Institute (EPRI) predicted electricity for data centers could represent as much as 9.1 percent of total power usage in the U.S. by 2030. According to EPRI, the share of Texas electricity consumed by data centers could climb from 4.6 percent in 2023 to almost 11 percent by 2030.

A report issued in 2024 by the federal government’s Lawrence Berkeley National Laboratory envisions an even faster increase in data-center power usage. The report projected data centers will consume as much as 12 percent of U.S. electricity by 2028, up from 4.4 percent in 2023.

In 2023, the EPRI study estimated, 80 percent of the U.S. electrical load for data centers was concentrated in two states, led by Virginia and Texas. The University of Texas at Austin’s Center for Media Engagement reported in July that Texas is home to 350 data centers, second only to Virginia.

“The U.S. electricity sector is working hard to meet the growing demands of data centers, transportation electrification, crypto-mining, and industrial onshoring, while balancing decarbonization efforts,” David Porter, EPRI’s vice president of electrification and sustainable energy strategy, said. “The data center boom requires closer collaboration between large data center owners and developers, utilities, government, and other stakeholders to ensure that we can power the needs of AI while maintaining reliable, affordable power to all customers.”

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