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.