team work
Houston company expands JV to build new power generation, storage assets
Houston-based Conduit Power is broadening the scope of its joint venture with Oklahoma City-based Riley Exploration Permian.
Under this deal, the joint venture, RPC Power, will build power generation and storage assets for the sale of energy and related services to the Electric Reliability Council of Texas (ERCOT), which operates the power grid for the bulk of Texas.
RPC Power, established in March 2023, owns and operates power generation assets that use Riley Permian’s natural gas to power its oilfield operations in Yoakum County, located in West Texas.
The expanded relationship will enable RPC Power to sell power and related services to ERCOT, with plans for 100 megawatts of natural gas-fueled generation and battery energy storage systems across facilities in West Texas. The facilities are expected to start commercial operations in 2025.
In conjunction with the expanded scope, Riley Permian bumped up its stake in RPC Power from 35 percent to 50 percent. Furthermore, it plans to sell up to 10 million cubic feet per day of natural gas to RPC Power as feedstock supply for the new generation facilities.
"Our JV expansion at RPC Power represents a significant milestone for our company, and we are proud to build upon our successful partnership with Riley Permian,” Travis Windholz, managing director of Conduit, says in a news release.
Conduit, a portfolio company of private equity firm Grey Rock Investment Partners, designs, builds, and operates distributed power generation systems.
Riley Exploration Permian specializes in the exploration, development, and production of oil and natural gas reserves, primarily within the Permian Basin.