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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

A rendering of a Quaise Energy geothermal plant. Rendering via quaise.com

Houston-based Quaise Energy, a producer of utility-scale geothermal power, raised $134 million in a Series B round to advance its “superhot” geothermal power plant.

Climate-focused San Francisco-based investment firm Prelude Ventures led the round, with participation from JERA Co., Japan’s largest power generation company, and Idemitsu Kosan, one of Japan’s largest energy companies. Nearly all existing investors, including cleantech-focused investment firm Safar Partners, participated in the round.

“We have backed Quaise since the beginning because we believed accessing superhot rock would unlock geothermal energy at a scale the world has never seen,” Mark Cupta, managing director at Prelude Ventures, said in a press release.

The startup expects more equity and debt deals to close “imminently.” Quaise has raised $230 million since its founding in 2018.

Quaise says some of the fresh funding will go toward building the world’s first commercial-scale “superhot” geothermal power plant —Project Obsidian in central Oregon. In addition, Quaise is earmarking money for continued development and commercialization of its millimeter-wave drilling system toward depths exceeding 5 kilometers (about 16,400 feet).

Quaise uses a millimeter-wave drilling system developed at the Massachusetts Institute of Technology to remove rock at depths and temperatures that aren’t economically feasible with conventional drilling. With this technology, Quaise can reach rock at temperatures of around 570 degrees to 930 degrees in most places worldwide, enabling construction of geothermal systems that rival fossil fuels and nuclear energy in power density and that rival renewables in cost.

“Our ambition is to power civilization with Earth's most compelling energy source. This round takes us from field-proven technology to first commercial revenues,” Carlos Araque, co-founder, president and CEO of Quaise, added in the release.

Quaise has demonstrated the capability of its millimeter-wave drilling system at its Central Texas test site, drilling more than about 330 feet through granite in 2025—the first time the technology penetrated basement rock at full scale in the field. The company is approaching a depth of about 3,300 feet at the same site.

Construction of Project Obsidian is underway at Oregon’s Deschutes National Forest. The project, which has the potential to generate gigawatt-scale power, is slated to deliver electricity to the Pacific Northwest grid by 2030.

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