Houston geothermal energy startup grows local office presence

report

Fervo Energy went from a 5,158-square-foot space to a 23,782-square-foot office in downtown Houston. Photo via Hines

On the heels of landing more than $240 million in venture capital, Houston-based geothermal power provider Fervo Energy has more than quadrupled the size of its headquarters.

Fervo previously occupied 5,158 square feet at 114 Main St. in downtown Houston. The company recently left the Main Street space and leased 23,782 square feet at downtown Houston’s 910 Louisiana office tower. Houston-based commercial real estate company Hines owns and manages the 50-story former One Shell Plaza.

“We believe Houston is the center of the energy transition, and downtown Houston has long been its center of activity,” Tim Latimer, co-founder and CEO of Fervo Energy, says in a news release. “The availability of dining options, parks, and biking infrastructure continue to be great assets and a huge draw for our team. For these reasons and more, the only place for Fervo’s headquarters is downtown Houston.”

In February 2024, Fervo announced it had raised $244 million in an investment round led by Oklahoma City, Oklahoma-based hydrocarbon exploration company Devon Energy. Fervo has collected $431 million in funding since its founding in 2017.

Energy companies like Fervo occupy about 43 percent of office space in downtown Houston, according to a new report from the Downtown Houston+ organization. Nineteen new tenants set up shop last year in downtown Houston, with 10 of them operating in the energy sector.

Other energy companies that recently leased office space in downtown Houston include:

AES Clean Energy
Axip Energy Services
EnLink Midstream
MRC Global
Repsol Renewables
Stonepeak

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This article originally ran on InnovationMap.

Dow will occupy nearly two-thirds of office space at Midway's CityCentre Six office tower that's currently being built in the Energy Corridor. Photo courtesy of Midway

Dow digs up new office space in Houston's Energy Corridor

moving in

Dow Chemical has signed up to be the anchor tenant at the CityCentre Six office tower under construction in Houston’s Memorial City area.

Dow will occupy nearly two-thirds (65 percent) of the 308,000 square feet of office space at the 19-story building, or about 200,000 square feet. The company will relocate employees there from its Houston Dow Center offices at Enclave Plaza in the Energy Corridor.

The current lease expires in 2026. Dow has leased the Energy Corridor space for 15 years.

Houston-based real estate investor and developer Midway recently broke ground on the $87.5 million, 320,000-square-foot CityCentre Six tower, which will be adjacent to the headquarters of Marathon Oil.

“Dow’s commitment as the anchor tenant has been a driving force behind the project’s strong momentum and underscores the strong leasing demand for CityCentre office space, which remains 100 percent leased,” says Chris Seckinger, vice president of investment and development at Midway. “Their presence not only confirms the tower’s status as a premier business destination but also reflects the confidence leading enterprises have in our vision for the district.”

Photo courtesy of Midway

The new tower, set to be completed in 2026, is one of the latest additions to the 47-acre CityCentre mixed-use development.

“Our plans for CityCentre’s north site have been in the works for almost a decade, and CityCentre Six is a significant step towards realizing our long-term vision for the development,” Seckinger said in a January 2024 news release.

Midway’s CityCentre Seven, a six-story office building and hotel, is also under construction at the mixed-use development. The Four Points by Sheraton Houston West hotel currently occupies the site.

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CenterPoint's resiliency plan, Chevron starts up new site, and more trending Houston energy transition news

what's trending

Editor'snote: From Chevron's new deepwater project going online to two Texas companies collaborating on energy storage, these are the top headlines that resonated with EnergyCapital readers on social media and daily newsletter this week.

CenterPoint Energy releases details of resiliency plan

To improve resiliency and reduce the risk of outages from storms or hurricanes, CenterPoint Energy announced its Greater Houston Resiliency Initiative.

The initiative will include an “accelerated timeline to execute specific actions to strengthen electric infrastructure across Houston, and more than 40 critical actions in total to strengthen the electric grid, and improve the company's customer communications and emergency coordination before the next hurricane,” according to a news release.

As part of the “Taking Action Now” section, more than 2,500 CenterPoint frontline workers and contractors will be taking a series of targeted actions to strengthen the grid and reduce the risk of outages before the next major storm that includes installing stronger and more storm-resilient poles, trimming or removal of vegetation from lines, and installing 300 automated devices, which CenterPoint says can help reenergize certain lines and lead to less without power. Continue reading.

Chevron launches production at deepwater project that aims to lower carbon intensity off offshore activity

Chevron's newest deepwater oil and natural gas production project, called the Anchor, is an all-electric facility. Photo courtesy of Chevron

Chevron's new massive deepwater oil and natural gas project in the Gulf of Mexico is officially up and running.

Chevron Corp., which recently announced its relocating its global headquarters to Houston, has officially started oil and natural gas production from its Anchor project in the U.S. Gulf of Mexico.

The semi-submersible floating production unit features a high-pressure technology that operates at up to 20,000 psi with reservoir depths reaching 34,000 feet below sea level, Chevron reports, and has a capacity of 75,000 gross barrels of oil per day and 28 million gross cubic feet of natural gas per day. Continue reading.

Two Texas companies combine to enhance hydrogen fueling, storage infrastructure

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

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. Continue reading.

Houston clean energy provider raises $10.8M series A

Branch Energy aims to provide customers with clean energy at a lower cost than competitors. Photo via Getty Images

A tech-driven retail energy provider based in Houston has secured an oversubscribed series A round of funding.

Branch Energy raised a $10.8 million round led by climate-focused venture capital firm Prelude Ventures with co-investor Zero Infinity Partners, an infrastructure tech-focused firm. The fresh funding will go toward accelerating the company's battery management tech and build out the infrastructure of its field services.

A vertically integrated power provider, Branch Energy aims to provide customers with demand management software and battery storage systems to ensure long-term, stable, and clean energy at a lower cost than competitors. Continue reading.

Woodside to acquire clean ammonia project outside of Houston in $2.4B deal

OCI broke ground on the project in 2022. Photo via oci-global.com

Woodside Energy has announced its acquiring a Beaumont, Texas, clean ammonia project that's slated to deliver its first ammonia by 2025 and lower carbon ammonia by 2026.

The agreement is for Woodside to acquire 100 percent of OCI Clean Ammonia Holding and its lower carbon ammonia project in Beaumont in an all-cash deal of approximately $2.35 billion. According to Woodside CEO Meg O’Neill, the acquisition positions Woodside as an early mover in clean ammonia within the energy transition.

“This transaction positions Woodside in the growing lower carbon ammonia market," O’Neill says in a news release. "The potential applications for lower carbon ammonia are in power generation, marine fuels and as an industrial feedstock, as it displaces higher-emitting fuels. Continue reading.

New report maps Houston workforce development strategies as companies transition to cleaner energy

to-do list

The University of Houston’s Energy University latest study with UH’s Division of Energy and Innovation with stakeholders from the energy industry, academia have released findings from a collaborative white paper, titled "Workforce Development for the Future of Energy.”

UH Energy’s workforce analysis found that the greatest workforce gains occur with an “all-of-the-above” strategy to address the global shift towards low-carbon energy solutions. This would balance electrification and increased attention to renewables with liquid fuels, biomass, hydrogen, carbon capture, utilization and storage commonly known as CCUS, and carbon dioxide removal, according to a news release.

The authors of the paper believe this would support economic and employment growth, which would leverage workers from traditional energy sectors that may lose jobs during the transition.

The emerging hydrogen ecosystem is expected to create about 180,000 new jobs in the greater Houston area, which will offer an average annual income of approximately $75,000. Currently, 40 percent of Houston’s employment is tied to the energy sector.

“To sustain the Houston region’s growth, it’s important that we broaden workforce participation and opportunities,” Ramanan Krishnamoorti, vice president of energy and innovation at UH, says in a news release. “Ensuring workforce readiness for new energy jobs and making sure we include disadvantaged communities is crucial.”

Some of the key takeaways include strategies that include partnering for success, hands-on training programs, flexible education pathways, comprehensive support services, and early and ongoing outreach initiatives.

“The greater Houston area’s journey towards a low-carbon future is both a challenge and an opportunity,” Krishnamoorti continues. “The region’s ability to adapt and lead in this new era will depend on its commitment to collaboration, innovation, and inclusivity. By preparing its workforce, engaging its communities, and leveraging its industrial heritage, we can redefine our region and continue to thrive as a global energy leader.”

The study was backed by federal funding from the Department of the Treasury through the State of Texas under the Resources and Ecosystems Sustainability, Tourist Opportunities, and Revived Economies of the Gulf Coast States Act of 2012.

Houston geothermal startup selects Texas location for first energy storage facility

major milestone

Houston-based geothermal energy startup Sage Geosystems has teamed up with a utility provider for an energy storage facility in the San Antonio metro area.

The three-megawatt EarthStore facility will be on land controlled by the San Miguel Electric Cooperative, which produces electricity for customers in 47 South Texas counties. The facility will be located in the town of Christine, near the cooperative’s coal-fired power plant.

Sage says its energy storage system will be paired with solar energy to supply power for the grid operated by the Electric Reliability Council of Texas (ERCOT). The facility is set to open later this year.

“Once operational, our EarthStore facility in Christine will be the first geothermal energy storage system to store potential energy deep in the earth and supply electrons to a power grid,” Cindy Taff, CEO of Sage Geosystems, says in a news release.

The facility is being designed to store geothermal energy during six- to 10-hour periods.

“Long-duration energy storage is crucial for the ERCOT utility grid, especially with the increasing integration of intermittent wind and solar power generation,” says Craig Courter, CEO of the San Miguel Electric Cooperative.

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