ribbon cutting

University of Houston opens new hydrocarbon center

UH cut the ribbon on a new hub for hydrocarbon exploration. Photo courtesy of UH

The University of Houston has officially opened the doors of a new hub for hydrocarbon exploration.

UH Energy recently unveiled its UH-DGH Center for Hydrocarbon Exploration, which is a partnership between the University of Houston and the technical arm of India’s Ministry of Petroleum and Natural Gas, Directorate General of Hydrocarbons, or DGH. The collaboration was announced in February.

The center will serve as a data center focused on India’s offshore basins, and its geoscience data to investigate production data and exploration.

"We have been thinking about this for multiple years, about how to get all this fantastic data that is there in the Directorate General of Hydrocarbons of India, use the repository of information that we have got and be able to showcase it to people in the United States where they've got the approach to go in and find oil and gas and other natural resources in ways that are perhaps truly unique and Texan in origin,” says Dr. Ramanan Krishnamoorthy, vice president of energy and innovation at UH during the event.

The event featured UH dignitaries, alum, and subject-matter experts like Rob Stewart, professor of geophysics, and David Hume, business development specialist and geoscience specialist, which included in-depth analysis of India basins that focused on geological and geophysical locations, physiographical and tectonic settings, the role of hydrocarbon elements, and other areas of interest.

The center is part of a five-year agreement to help generate reliable information on the energy industry with seismic, well, reservoir and production data being at the forefront.

“UH and India have been able to come together and bring this to reality, for us this is very inspirational,” says Pankaj Jain, Secretary, Ministry of Petroleum and Natural Gas, Government of India. “We think that we are actually planting a seed for something very, very good because the multiplier effects of this are going to be incredible.”

Strategically located in Houston, which many consider an “energy capital,” Jain is excited for a set of “fresh eyes” to look at the data.

“If you’re here [in Houston], you’re at the nucleus from where everything will evolve,” Jain says to the University of Houston.

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A View From HETI

Fervo plans to sell 70 million shares of Class A common stock at $25 to $26 per share. Photo courtesy Fervo Energy

Houston-based geothermal power company Fervo Energy is now eyeing an IPO that would raise $1.75 billion to $1.82 billion, up from the previous target of $1.33 billion.

In paperwork filed Monday, May 11 with the U.S. Securities and Exchange Commission, Fervo says it plans to sell 70 million shares of Class A common stock at $25 to $26 per share.

In addition, Fervo expects to grant underwriters 30-day options to buy up to 8.33 million additional shares of Class A common stock. This could raise nearly $200 million.

When it announced the IPO on May 4, Fervo aimed to sell 55.56 million shares at $21 to $24 per share, which would have raised $1.17 billion to $1.33 billion. The initial valuation target was $6.5 billion.

A date for the IPO hasn’t been scheduled. Fervo’s stock will be listed on Nasdaq under the ticker symbol FRVO.

Fervo, founded in 2017, has attracted about $1.5 billion in funding from investors such as Bill Gates-founded Breakthrough Energy Ventures, Google, Mitsubishi Heavy Industries, Devon Energy (which is moving its headquarters to Houston), Tesla co-founder JB Straubel, CalSTRS, Liberty Mutual Investments, AllianceBernstein, JPMorgan, Bank of America and Sumitomo Mitsui Trust Bank.

Fervo’s marquee project is Cape Station in Beaver County, Utah, the world’s largest EGS (enhanced geothermal system) project. The first phase will deliver 100 megawatts of baseload clean power, with the second phase adding another 400 megawatts. The site can accommodate 2 gigawatts of geothermal energy. Fervo holds more than 595,000 leased acres for potential expansion.

Cape Station has secured power purchase agreements for the entire 500-megawatt capacity. Customers include Houston-based Shell Energy North America and Southern California Edison.

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