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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Houston joint venture secures $5.2M for AI-powered methane tracking tech

fresh funds

Houston-based Envana Software Solutions has received more than $5.2 million in federal and non-federal funding to support the development of technology for the oil and gas sector to monitor and reduce methane emissions.

Thanks to the work backed by the new funding, Envana says its suite of emissions management software will become the industry's first technology to allow an oil and gas company to obtain a full inventory of greenhouse gases.

The funding comes from a more than $4.2 million grant from the U.S. Department of Energy (DOE) and more than $1 million in non-federal funding.

“Methane is many times more potent than carbon dioxide and is responsible for approximately one-third of the warming from greenhouse gases occurring today,” Brad Crabtree, assistant secretary at DOE, said in 2024.

With the funding, Envana will expand artificial intelligence (AI) and physics-based models to help detect and track methane emissions at oil and gas facilities.

“We’re excited to strengthen our position as a leader in emissions and carbon management by integrating critical scientific and operational capabilities. These advancements will empower operators to achieve their methane mitigation targets, fulfill their sustainability objectives, and uphold their ESG commitments with greater efficiency and impact,” says Nagaraj Srinivasan, co-lead director of Envana.

In conjunction with this newly funded project, Envana will team up with universities and industry associations in Texas to:

  • Advance work on the mitigation of methane emissions
  • Set up internship programs
  • Boost workforce development
  • Promote environmental causes

Envana, a software-as-a-service (SaaS) startup, provides emissions management technology to forecast, track, measure and report industrial data for greenhouse gas emissions.

Founded in 2023, Envana is a joint venture between Houston-based Halliburton, a provider of products and services for the energy industry, and New York City-based Siguler Guff, a private equity firm. Siguler Gulf maintains an office in Houston.

“Envana provides breakthrough SaaS emissions management solutions and is the latest example of how innovation adds to sustainability in the oil and gas industry,” Rami Yassine, a senior vice president at Halliburton, said when the joint venture was announced.

Top 6 Houston energy events to attend in February 2025

Energy Events

Editor's note: February is here, and the month is buzzing with forums, conferences, and the largest AI in Energy event. Here are six Houston energy events that you won't want to miss this month. Mark your calendars now, and plan ahead for the rest of Q1 via this guide.

February 4 — 2025 Brazil Summit: Energy at a Crossroads 

The Brazil Summit, held at Rice University's Baker Institute, will explore Brazil’s evolving energy sector, including recent progress in energy transition regulations, as well as the 2024 U.S. election's implications for Brazil's future. Participants from Brazil and the U.S., including policymakers, energy leaders, financial experts and more, will join the summit, which is free to attend and open to the public.

This event takes place Tuesday, February 4, at 7:30 am. Registration is required. Click here to register.

February 10-11— 6th American LNG Forum

Join LNG industry professionals, innovators and policymakers to discover groundbreaking technologies that are driving the future of liquified natural gas. From market dynamics to decarbonization strategies, this is your chance to connect, learn and become part of the LNG revolution at American LNG Forum.

This event begins Monday, February 10, at the Westin Galleria Houston. Click here to register.

February 11-12 — Oil & Gas Automation and Technology Week 

Oil and Gas Automation and Technology Week brings together oil and gas operators to share best-practice strategies for accelerating business transformation, decarbonization, and energy transition with disruptive technology. Expert speakers from the automation and technology space include Jack Hu, Dow; Partha Chatterjee, Shell; and Philippe Daroux, Chevron.

The two-day event takes place at the Sonesta Houston Hotel IAH Airport. Click here to register.

February 19-20— 7th Global Energy Forum 2025

The Global Energy Forum brings a bipartisan collective of U.S. Congressmen together with top energy executives to convene for off-the-record discussions in order to explore the energy strategies and solutions for a sustainable, clean, reliable and affordable energy future. Policymakers and executives from energy, finance, and technology will engage in dialogue on energy infrastructure, technological innovation, policy and regulation reform needed to respond to the global energy crisis.

This event begins Wednesday, February 19, at 7:30 am at the Petroleum Club of Houston. Click here to register.

February 24-25 — AI In Energy

Join 150+ senior operations, digital, data and AI leaders in Houston for the industry's largest AI in Energy event, and unlock the potential of AI within your operations. Key points of discussion include how to pair digital twins and gen AI, know when your critical assets need maintenance, move beyond pilot program to scale AI across the enterprise, and leverage generative AI and data intelligence to unlock asset reliability.

This event begins Monday, February 24 at 7:30 am at Norris Conference Centers' City Centre. Click here to register.

February 25-27 — 2025 Energy HPC Conference

The 18th annual Energy High Performance Computing Conference, hosted at Rice University by the Ken Kennedy Institute, is the premier meeting place for the energy industry to engage in conversations about challenges and opportunities in high-performance computing, computational science and engineering, machine learning and data science. Attended by more than 500 leaders and experts, this is a unique opportunity for key stakeholders to engage and network to help advance HPC in the energy industry.

This event begins Tuesday, February 25, at Rice University. Click here to register.

Geothermal energy startup's $600M deal fuels surge in Houston VC funding

by the numbers

The venture capital haul for Houston-area startups jumped 23 percent from 2023 to 2024, according to the latest PitchBook-NVCA Venture Monitor.

The fundraising total for startups in the region climbed from $1.49 billion in 2023 to $1.83 billion in 2024, PitchBook-NVCA Venture Monitor data shows.

Roughly half of the 2024 sum, $914.3 million, came in the fourth quarter. By comparison, Houston-area startups collected $291.3 million in VC during the fourth quarter of 2023.

Among the Houston-area startups contributing to the impressive VC total in the fourth quarter of 2024 was geothermal energy startup Fervo Energy. PitchBook attributes $634 million in fourth-quarter VC to Fervo, with fulfillment services company Cart.com at $50 million, and chemical manufacturing platform Mstack and superconducting wire manufacturer MetOx International at $40 million each.

Across the country, VC deals total $209 billion in 2024, compared with $162.2 billion in 2023. Nearly half (46 percent) of all VC funding in North America last year went to AI startups, PitchBook says. PitchBook’s lead VC analyst for the U.S., Kyle Stanford, says that AI “continues to be the story of the market.”

PitchBook forecasts a “moderately positive” 2025 for venture capital in the U.S.

“That does not mean that challenges are gone. Flat and down rounds will likely continue at higher paces than the market is accustomed to. More companies will likely shut down or fall out of the venture funding cycle,” says PitchBook. “However, both of those expectations are holdovers from 2021.”

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This story originally appeared on our sister site, InnovationMap.com.