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McKinsey makes acquisition, Shell slows solar, and more trending Houston innovation news

top stories

Here's what news trended this week on EnergyCapital. Photo via Getty Images

Editor's note: From recent M&A activity to a recent report on AI, these are the top headlines that resonated with EnergyCapital readers on social media and daily newsletter this week.

Shell shrinks renewable portfolio yet again with latest divestment

Shell’s Savion subsidiary, which the energy giant acquired in 2021, plans to sell about one-fourth of its solar generation and storage assets. Photo via shell.us

In a move aimed at focusing more on its oil and gas business, Houston-based Shell USA continues to scale back its wind and solar energy portfolio.

The Reuters news service reported February 29 that Shell’s Savion subsidiary, which the energy giant acquired in 2021, plans to sell about one-fourth of its solar generation and storage assets. These assets represent as much as 10.6 gigawatts of generation and storage capacity.

This development follows the completion in early February of deals for Kansas City, Missouri-based Savion to sell its 50 percent stake in a solar energy project in Ohio and for Houston-based Shell Wind Energy to sell its 60 percent stake in a wind farm in Texas. Continue reading.

Houston rises as emerging hub for $6B global AI in oil and gas industry, per new report

The research outfit says North America leads global AI growth in oil and gas, with Houston playing a pivotal role. Image via Shutterstock

Houston is emerging as a hub for the development of artificial intelligence in the oil and gas industry — a global market projected to be worth nearly $6 billion by 2028.

This fresh insight comes from a report recently published by ResearchAndMarkets.com. The research outfit says North America leads global AI growth in oil and gas, with Houston playing a pivotal role.

“With AI-driven innovation at its core, the oil and gas industry is set to undergo a profound transformation, impacting everything from reservoir optimization to asset management and energy consumption strategies — setting a new standard for the future of the sector,” says ResearchAndMarkets.com. 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 orgs name student, industry teams for CERAWeek pitch competition

Nearly 40 climatetech startups will pitch at this upcoming CERAWeek event from HETI, the Rice Alliance, and TEX-E. Photo by Natalie Harms

The Rice Alliance for Technology and Entrepreneurship, the Houston Energy Transition Initiative and the Texas Entrepreneurship Exchange for Energy announced the 39 energy ventures that will pitch at 2024 Energy Venture Day and Pitch Competition during this month's CERAWeek.

The ventures are focused on driving efficiency and advancements toward the energy transition and will each present a 3.5-minute pitch before venture capitalists, corporate innovation groups, industry leaders, academics, and service providers during CERAWeek's Agora program.

The pitch competition is divided up into the TEX-E university track, in which Texas student-led energy startups compete for $50,000 in cash prizes, and the industry ventures track. Continue reading.

Houston-based female business leader named changemaker amid energy transition

EDP Renewables North America announced its CEO Sandhya Ganapathy has been named to CNBC’s inaugural Changemakers: Women Transforming Business list.

A Houston renewable energy developer CEO has scored a prestigious spot on a list of changemakers.

EDP Renewables North America announced its CEO Sandhya Ganapathy has been named to CNBC’s inaugural Changemakers: Women Transforming Business list. Ganapathy was recognized for ESG and ED&I Initiatives while helping to advance the clean energy transition.

The new list recognizes female leaders at companies and philanthropic organizations that have achieved impactful financial and business milestones.

“Thank you to CNBC for recognizing the leadership and groundbreaking initiatives the women on this list have achieved,” the company said in a statement on LinkedIn. “As our renewable energy market sector continues to progress and expand, we will need everyone in our industry to be a #changemaker to ensure #reliable, #costeffective, #homegrown energy is accessible to all.” Continue reading.

The research outfit says North America leads global AI growth in oil and gas, with Houston playing a pivotal role. Image via Shutterstock

Houston rises as emerging hub for $6B global AI in oil and gas industry, per new report

by the numbers

Houston is emerging as a hub for the development of artificial intelligence in the oil and gas industry — a global market projected to be worth nearly $6 billion by 2028.

This fresh insight comes from a report recently published by ResearchAndMarkets.com. The research outfit says North America leads global AI growth in oil and gas, with Houston playing a pivotal role.

“With AI-driven innovation at its core, the oil and gas industry is set to undergo a profound transformation, impacting everything from reservoir optimization to asset management and energy consumption strategies — setting a new standard for the future of the sector,” says ResearchAndMarkets.com.

The research company predicts the value of the AI sector in oil and gas will rise from an estimated $3.2 billion in 2023 and $3.62 billion in 2024 to $5.8 billion by 2028. The report divides AI into three categories: software, hardware, and hybrids.

As cited in the report, trends that are sparking the explosion of AI in oil and gas include:

  • Stepped-up use of data
  • Higher demand for energy efficiency and sustainability
  • Automation of repetitive tasks
  • Optimization of exploration and drilling
  • Enhancement of safety

“The oil and gas industry’s ongoing digitization is a significant driver behind … AI in the oil and gas market. Rapid adoption of AI technology among oilfield operators and service providers serves as a catalyst, fostering market growth,” says ResearchAndMarkets.com.

The report mentions the Open AI Energy Initiative as one of the drivers of increased adoption of AI in oil and gas. Baker Hughes, C3 AI, Microsoft, and Shell introduced the initiative in February 2021. The initiative enables energy operators, service providers, and vendors to create sharable AI technology for the oil and gas industry.

Baker Hughes and C3 AI jointly market AI offerings for the oil and gas industry.

Aside from Baker Hughes, Microsoft, and Shell, other companies with a significant Houston presence that are cited in the AI report include:

  • Accenture
  • BP
  • Emerson Electric
  • Google
  • Halliburton
  • Honeywell
  • Saudi Aramco
  • Schlumberger
  • TechnipFMC
  • Weatherford International
  • Wood

Major AI-related trends that the report envisions in the oil and gas sector include the:

  • Digital twins for asset modeling
  • Autonomous robotics
  • Advanced analytics for reservoir management
  • Cognitive computing for decision-making
  • Remote monitoring and control systems

“The digitization trend within the oil and gas sector significantly propels the AI in oil and gas market,” says the report.

———

This article originally ran on InnovationMap.

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Chevron CEO touts biofuels as part of its renewable energy efforts

Betting on biofuels

As Chevron Chairman and CEO Mike Wirth surveys the renewable energy landscape, he sees the most potential in biofuels.

At a recent WSJ CEO Council event, Wirth put a particular emphasis on biofuels—the most established form of renewable energy—among the mix of low-carbon energy sources. According to Biofuels International, Chevron operates nine biorefineries around the world.

Biofuels are made from fats and oils, such as canola oil, soybean oil and used cooking oil.

At Chevron’s renewable diesel plant in Geismar, Louisiana, a recent expansion boosted annual production by 278 percent — from 90 million gallons to 340 million gallons. To drive innovation in the low-carbon-fuels sector, Chevron opened a technology center this summer at its renewable energy campus in Ames, Iowa.

Across the board, Chevron has earmarked $8 billion to advance its low-carbon business by 2028.

In addition to biofuels, Chevron’s low-carbon strategy includes hydrogen, although Wirth said hydrogen “is proving to be very difficult” because “you’re fighting the laws of thermodynamics.”

Nonetheless, Chevron is heavily invested in the hydrogen market:

As for geothermal energy, Wirth said it shows “some real promise.” Chevron’s plans for this segment of the renewable energy industry include a 20-megawatt geothermal pilot project in Northern California, according to the California Community Choice Association. The project is part of an initiative that aims to eventually produce 600 megawatts of geothermal energy.

What about solar and wind power?

“We start with things where we have some reason to believe we can create shareholder value, where we’ve got skills and competency, so we didn’t go into wind or solar because we’re not a turbine manufacturer installing wind and solar,” he said in remarks reported by The Wall Street Journal.

In a September interview with The New York Times, Wirth touched on Chevron’s green energy capabilities.

“We are investing in new technologies, like hydrogen, carbon capture and storage, lithium and renewable fuels,” Wirth said. “They are growing fast but off a very small base. We need to do things that meet demand as it exists and then evolve as demand evolves.”

Houston robotics company partners with Marathon Petroleum to scale fleet

robot alliance

Houston- and Boston-based Square Robot Inc. has announced a partnership with downstream and midstream energy giant Marathon Petroleum Corp. (NYSE: MPC).

The partnership comes with an undisclosed amount of funding from Marathon, which Square Robot says will help "shape the design and development" of its submersible robotics platform and scale its fleet for nationwide tank inspections.

“Marathon’s partnership marks a major milestone in our mission to transform industrial tank inspection,” David Lamont, CEO of Square Robot, said in a news release. “They recognize the proven value of our robotic inspections—eliminating confined space entry, reducing the environmental impact, and delivering major cost efficiencies all while keeping tanks on-line and working. We’re excited to work together with such a great company to expand inspection capabilities and accelerate innovation across the industry.”

The company closed a $13 million series B last year. At the time of closing, Square Robot said it would put the funding toward international expansion in Europe and the Middle East.

Square Robot develops autonomous, submersible robots that are used for storage tank inspections and eliminate the need for humans to enter dangerous and toxic environments. Its newest tank inspection robot, known as the SR-3HT, became commercially available and certified to operate at a broader temperature range than previous models in the company's portfolio this fall.

The company was first founded in the Boston area in 2016 and launched its Houston office in 2019.

$3B acquisition of hazardous waste co. tops latest energy news to know

Trending news

Editor's note: The top energy transition news for the month includes Veolia's $3 billion Clean Earth acquisition and ERCOT's new $9.4 billion project. Here are the five most-read EnergyCapitalHTX stories from December 1-16, 2025:

1. Hazardous waste company with Houston presence to make $3B acquisition

Veolia will acquire Clean Earth. Photo courtesy of Veolia/LinkedIn

Veolia, a Boston-based company with major operations in Texas, is purchasing hazardous-waste company Clean Earth from Enviri as part of a $3 billion deal. Veolia is a private water operator, technology provider and hazardous waste and pollution treatment company that operates a large hazardous waste treatment and incineration facility in Port Arthur. Hazardous waste treatment is a growing sector as the clean energy, semiconductor manufacturing, healthcare and pharmaceutical industries generate high levels of waste that need to be handled safely. Continue reading.

2. Federal judge strikes Trump order blocking wind energy development

A federal judge has thrown out President Trump's executive order blocking wind energy development, calling it 'arbitrary and capricious.' Photo by Moritz Lange via Unsplash.

In a win for clean energy and wind projects in Texas and throughout the U.S., a federal judge struck down President Donald Trump’s “Day One” executive order that blocked wind energy development on federal lands and waters, the Associated Press reports. Judge Patti Saris of the U.S. District Court for the District of Massachusetts vacated Trump’s executive order from Jan. 20, declaring it unlawful and calling it “arbitrary and capricious.” Continue reading.

3. Air Liquide and Hyundai ink partnership to scale hydrogen economy

Air Liquide and Hyundai agreed to expand hydrogen refuelling networks, storage capacity and more at a meeting in Seoul last week. Photo courtesy Air Liquide.

Air Liquide, which maintains its U.S. headquarters in Houston, and South Korea-based Hyundai Motor Group are expanding their strategic partnership to accelerate the growth of the global hydrogen ecosystem. The renewal of the companies’ Memorandum of Understanding (MoU) was announced at the Hydrogen Council CEO Summit in Seoul last week. Together, the companies will work to scale hydrogen production, storage, transportation and utilization across Europe, Korea and the United States with a concentration on heavy-duty transport, logistics and public transportation. Continue reading.

4. ERCOT approves $9.4B project to improve grid, meet data center demand

ERCOT plans to build a “super highway” of new transmission lines to boost grid reliability. Photo via Getty Images

The Electric Reliability Council of Texas, which manages the electric grid for 90 percent of Texans, is undertaking a $9.4 billion project to improve the reliability and efficiency of statewide power distribution. The initiative comes as ERCOT copes with escalating demand for electricity from data centers and cryptocurrency-mining facilities. Continue reading.

5. Reliant partners to expand Texas virtual power plant and home battery use

Reliant is offering new incentives to boost NRG's virtual power plant network in Texas. Photo via goodleap.com.

Houston’s Reliant and San Francisco tech company GoodLeap are teaming up to bolster residential battery participation and accelerate the growth of NRG’s virtual power plant (VPP) network in Texas. Through the new partnership, eligible Reliant customers can either lease a battery or enter into a power purchase agreement that incentivizes users by offering monthly performance-based rewards for contributing stored power to the grid. Continue reading.

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