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CenterPoint partners with AI company to help reduce outages, help restoration

Neara’s AI-enabled simulation and analytics platform can help CenterPoint reduce customer outages and accelerate restoration efforts. Photo via Getty Images

CenterPoint Energy announced an agreement with Artificial Intelligence-powered infrastructure modeling platform Neara for engineering-grade simulations and analytics, and to deploy Neara’s AI capabilities across CenterPoint’s Greater Houston service area.

“We are thrilled to collaborate with CenterPoint as they lead the charge in addressing today’s most existential energy challenges,” Robert Brook, senior vice president and managing director of Neara Americas, says in a news release.

Neara’s AI-enabled simulation and analytics platform can help CenterPoint reduce customer outages and accelerate restoration efforts. The technology can support CenterPoint’s efforts to address higher-risk vegetation along power lines, and identify equipment upgrades. Upgrades can include pole replacements or reinforcements. The platform will help CenterPoint to prioritize “assets and locations where grid hardening improvements will help optimize system-wide benefit,” per the release.

"Our 3D digital modeling technology will help CenterPoint proactively reduce customer outages by simulating severe weather events, such as hurricanes, tropical storms, heat waves and flash floods, and their potential impact on the utility’s infrastructure,” Brook says in the release.

CenterPoint recently announced the ahead of schedule completion of core resiliency actions as part of the first phase of its Greater Houston Resiliency Initiative (GHRI). This included a series of targeted actions to improve the resiliency of CenterPoint Houston Electric's grid with a second phase of GHRI that will include strategic undergrounding, system hardening, self-healing grid technology and enhancements to the company's outage tracker. These efforts are all part of a longer-term resilience plan.

“Leveraging technology and AI to deliver better outcomes for our customers and communities is a significant part of the commitment we made after Hurricane Beryl,” adds CenterPoint President and CEO Jason Wells in a news release. “By simulating the potential impact of severe weather events on our infrastructure and customers, Neara’s platform and tools will inform our plans and actions before, during and after major weather events to help reduce the impact and duration of power outages. Understanding how weather scenarios and their risks could affect our operations will position us to be several steps ahead on our preparedness and response.”

In the wake of Hurricane Beryl, 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 the company.

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A View From HETI

ExxonMobil Chairman and CEO Darren Woods said during the company’s recent second-quarter earnings call that the company is "concerned about the development of a broader market" for its low-carbon hydrogen plant in Baytown. Photo via exxonmobil.com

Spring-based ExxonMobil, the country’s largest oil and gas company, might delay or cancel what would be the world’s largest low-carbon hydrogen plant due to a significant change in federal law. The project carries a $7 billion price tag.

The Biden-era Inflation Reduction Act created a new 10-year incentive, the 45V tax credit, for production of clean hydrogen. But under President Trump’s "One Big Beautiful Bill Act," the window for starting construction of low-carbon hydrogen projects that qualify for the tax credit has narrowed. The Inflation Reduction Act mandated that construction start by 2033. But the Big Beautiful Bill switched the construction start time to early 2028.

“While our project can meet this timeline, we’re concerned about the development of a broader market, which is critical to transition from government incentives,” ExxonMobil Chairman and CEO Darren Woods said during the company’s recent second-quarter earnings call.

Woods said ExxonMobil is working to determine whether a combination of the 45Q tax credit for carbon capture projects and the revised 45V tax credit will help pave the way for a “broader” low-carbon hydrogen market.

“If we can’t see an eventual path to a market-driven business, we won’t move forward with the [Baytown] project,” Woods said.

“We knew that helping to establish a brand-new product and a brand-new market initially driven by government policy would not be easy or advance in a straight line,” he added.

Woods said ExxonMobil is trying to nail down sales contracts connected to the project, including exports of ammonia to Asia and Europe and sales of hydrogen in the U.S.

ExxonMobil announced in 2022 that it would build the low-carbon hydrogen plant at its refining and petrochemical complex in Baytown. The company has said the plant is slated to go online in 2027 and 2028.

As it stands now, ExxonMobil wants the Baytown plant to produce up to 1 billion cubic feet of hydrogen per day made from natural gas, and capture and store more than 98 percent of the associated carbon dioxide. The company has said the project could store as much as 10 million metric tons of CO2 per year.

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