Collaboration key to preparing energy transition workforce, experts say

Experts say the strategic alliance among industry, education and government serves as the cornerstone for building a skilled, resilient and future-ready energy workforce in Houston. Image via houston.org

As energy companies and the Houston region look to prepare and develop the workforce necessary to support the energy transition, experts say collaboration among companies, educational institutions, the federal government and other organizations is fundamental.

Experts from across the Houston region discussed how organizations and companies are preparing the workforce of the future during a panel discussion at the Greater Houston Partnership’s UpSkill Works Forum on Aug. 3.

According to a BCG analysis, most Houston-based oil and gas workers will rely on just nine capability sets by 2050. “To ensure they have the right mix of competencies for the future, oil and gas companies will need to carry out a skills-based mapping exercise, starting with defining the expertise and capabilities needed to succeed in their chosen business areas, markets, and geographies,” a BCG publication on the energy transition states.

Maria Suarez-Simmons, senior director of energy policy for Energy Workforce & Technology Council, encourages companies to take a “holistic view” of the occupations they offer and adjust them to the needs of the future of energy. Saurez-Simmons added that energy companies should create messaging that communicates there are opportunities for all, not solely engineers.

Scott Marshall, senior group director for the people team in the Americas at Worley, said “We are in the transition today”, adding that companies should start reaching out to students at a much younger age to showcase available career paths if they are going to meet the demand. Worley offers several early career programs, including a global graduate development programs and STEM workshops for children.

Stacy Putman, manager of advocacy, leadership, workforce development and strategic projects at INEOS, shared how INEOS collaborates with schools, working with K – 12th-grade teachers to educate them on opportunities in sustainability, energy transition and manufacturing. Putnam also stressed the importance of being involved in an employee’s career journey.

In alignment with this strategic evolution, a growing number of companies are adopting skills-based hiring as a means to diversify their talent pool. This shift from the traditional reliance on four-year college degrees highlights the need for specialized skills aligned with the demands of the energy transition.

Raul Camba, managing director and Latin America lead at Accenture, helps energy companies navigate the energy transition but also focuses on the industry’s adaptability within its operations, strategies and workforce. Camba said another tool to close the skills gap is to identify adjacent skills or related and transferable skills a worker already has and build upon them. Camba said forums like this one where employers can openly share the tools and resources they’re utilizing will help companies find innovative solutions and colleges and universities design programs based on the region’s needs.

Experts say the strategic alliance among industry, education and government serves as the cornerstone for building a skilled, resilient and future-ready energy workforce in Houston.

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This article originally ran on the Greater Houston Partnership's Houston Energy Transition Initiative blog. HETI exists to support Houston's future as an energy leader. For more information about the Houston Energy Transition Initiative, EnergyCapitalHTX's presenting sponsor, visit htxenergytransition.org.

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Oxy's $1.3B Texas carbon capture facility on track to launch this year

gearing up

Houston-based Occidental Petroleum is gearing up to start removing CO2 from the atmosphere at its $1.3 billion direct air capture (DAC) project in the Midland-Odessa area.

Vicki Hollub, president and CEO of Occidental, said during the company’s recent second-quarter earnings call that the Stratos project — being developed by carbon capture and sequestration subsidiary 1PointFive — is on track to begin capturing CO2 later this year.

“We are immensely proud of the achievements to date and the exceptional record of safety performance as we advance towards commercial startup,” Hollub said of Stratos.

Carbon dioxide captured by Stratos will be stored underground or be used for enhanced oil recovery.

Oxy says Stratos is the world’s largest DAC facility. It’s designed to pull 500,000 metric tons of carbon dioxide from the air and either store it underground or use it for enhanced oil recovery. Enhanced oil recovery extracts oil from unproductive reservoirs.

Most of the carbon credits that’ll be generated by Stratos through 2030 have already been sold to organizations such as Airbus, AT&T, All Nippon Airways, Amazon, the Houston Astros, the Houston Texans, JPMorgan, Microsoft, Palo Alto Networks and TD Bank.

The infrastructure business of investment manager BlackRock has pumped $550 million into Stratos through a joint venture with 1PointFive.

As it gears up to kick off operations at Stratos, Occidental is also in talks with XRG, the energy investment arm of the United Arab Emirates-owned Abu Dhabi National Oil Co., to form a joint venture for the development of a DAC facility in South Texas. Occidental has been awarded up to $650 million from the U.S. Department of Energy to build the South Texas DAC hub.

The South Texas project, to be located on the storied King Ranch, will be close to industrial facilities and energy infrastructure along the Gulf Coast. Initially, the roughly 165-square-mile site is expected to capture 500,000 metric tons of carbon dioxide per year, with the potential to store up to 3 billion metric tons of CO2 per year.

“We believe that carbon capture and DAC, in particular, will be instrumental in shaping the future energy landscape,” Hollub said.

Fervo Energy selects Baker Hughes to provide supply geothermal tech for power plants

geothermal deal

Houston-based geothermal energy startup Fervo Energy has tapped Houston-based energy technology company Baker Hughes to supply geothermal equipment for five Fervo power plants in Utah.

The equipment will be installed at Fervo’s Cape Station geothermal power project near Milford, Utah. The project’s five second-phase, 60-megawatt plants will generate about 400 megawatts of clean energy for the grid.

Financial terms of the deal weren’t disclosed.

“Baker Hughes’ expertise and technology are ideal complements to the ongoing progress at Cape Station, which has been under construction and successfully meeting project milestones for almost two years,” says Tim Latimer, co-founder and CEO of Fervo. “Fervo designed Cape Station to be a flagship development that's scalable, repeatable, and a proof point that geothermal is ready to become a major source of reliable, carbon-free power in the U.S.”

Cape Station is permitted to deliver about two gigawatts of geothermal power. The first phase of the project will supply 100 megawatts of power to the grid beginning in 2026. The second phase is scheduled to come online by 2028.

“Geothermal power is one of several renewable energy sources expanding globally and proving to be a vital contributor to advancing sustainable energy development,” Baker Hughes Chairman and CEO Lorenzo Simonelli says. “By working with a leader like Fervo Energy and leveraging our comprehensive portfolio of technology solutions, we are supporting the scaling of lower-carbon power solutions that are integral to meet growing global energy demand.”

Founded in 2017, Fervo is now a unicorn, meaning its valuation as a private company has surpassed $1 billion. In March, Axios reported Fervo is targeting a $2 billion to $4 billion valuation in an IPO.

Over the course of eight years, Fervo has raised almost $1 billion in capital, including equity and debt financing. This summer, the company secured a $205.5 million round of capital.

Houston-area sustainable steel company emerges from stealth with $17M in VC funding

heavy metals

Conroe-based Hertha Metals, a producer of substantial steel, has hauled in more than $17 million in venture capital from Khosla Ventures, Breakthrough Energy Fellows, Pear VC, Clean Energy Ventures and other investors.

The money has been put toward the construction and the launch of its 1-metric-ton-per-day pilot plant in Conroe, where its breakthrough in steelmaking has been undergoing tests. The company uses a single-step process that it claims is cheaper, more energy-efficient and equally as scalable as conventional steelmaking methods. The plant is fueled by natural gas or hydrogen.

The company, founded in 2022, plans to break ground early next year on a new plant. The facility will be able to produce more than 9,000 metric tons of steel per year.

Hertha said in a news release that its process, which converts low-grade iron ore into molten steel or high-purity iron, “doesn’t just materially lower cost and energy use — it fundamentally expands our capacity to produce iron and steel at scale, by unlocking a wider range of iron ore feedstocks.”

Laureen Meroueh, founder and CEO of Hertha, says the company’s process will fill a gap in U.S. steel production.

“We’re not just reinventing steelmaking; we’re redefining what’s possible in materials, manufacturing, and national resilience,” Meroueh says.

Hertha says it’s in talks with magnet producers — which make permanent magnets and magnetic assemblies from raw materials such as iron — to become a U.S. supplier of high-purity iron. In its next stage of growth, Hertha will aim to operate at a capacity of 500,000 metric tons of steel production per year.

The company won the Department of Energy's Summer Energy Program for Innovation Clusters (EPIC) Startup Pitch Competition last summer. Read more here.

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