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Houston company expands JV to build new power generation, storage assets

Under this deal, the joint venture, RPC Power, will build power generation and storage assets for the sale of energy and related services to ERCOT. Photo via conduitpower.co

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.

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A View From HETI

Shell has entered a 15-year agreement to be the first offtaker to receive electrons from Fervo Energy's flagship geothermal development in Beaver County, Utah, known as Cape Station. Photo via fervoenergy.com

Beginning in 2026, Shell will be able to apply 31 megawatts of 24/7 carbon-free geothermal power to its customers thanks to a new 15-year power purchase agreement with Houston next-gen geothermal development company Fervo Energy.

“This agreement demonstrates that Fervo is stepping up to meet the moment,” Dawn Owens, VP, Head of Development & Commercial Markets at Fervo, said in a news release.

Shell will become the first offtaker to receive electrons from Fervo's flagship geothermal development in Beaver County, Utah’s Phase I of Cape Station. Cape Station is currently one of the world’s largest enhanced geothermal systems (EGS) developments, and the station will begin to deliver electricity to the grid in 2026.

Cape Station will increase from 400 MW to 500 MW, which is considered by the company a major accomplishment due to recent breakthroughs in Fervo’s field development strategy and well design. Fervo is now able to generate more megawatts per well by optimizing well spacing using fiber optic sensing, increasing casing diameter and implementing staggered bench development. This can allow for a 100 MW capacity increase without the need for additional drilling, according to the company.

With the addition of the new Shell deal, all 500 MW of capacity from Fervo’s Cape Station are now fully contracted. The deal also includes existing agreements, like Fervo’s PPAs with Southern California Edison and an expanded deal with Clean Power Alliance that adds 18 MW of carbon-free geothermal energy to the company’s existing PPA with Fervo.

“As customers seek out 24/7 carbon-free energy, geothermal is clearly an essential part of the solution,” Owens said in the release.

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