CPS Energy invests $1.4B in Houston hydrogen-ready power plants

San Antonio-based CPS Energy has acquired four Houston-area power plants that are dual-fuel capable. Photo via Getty Images.

CPS Energy, which services San Antonio, has agreed to acquire four state-of-the-art natural gas power generation facilities in the Houston area from Missouri-based PROENERGY for $1.387 billion, according to a release.

The recently constructed plants have an aggregate electric capacity of 1,632 megawatts and are located in the Electric Reliability Council of Texas (ERCOT) markets in Harris, Brazoria and Galveston counties. The assets are dual-fuel capable, which would allow CPS Energy to transition to a hydrogen fuel blend and reduce carbon emissions.

CPS president and CEO Rudy Garza said that the acquisition presents a lower cost and lower supply chain risk alternative to building new power facilities while providing reliable, affordable and cleaner energy.

“We are getting the best of both worlds by securing new infrastructure without delay while also strengthening the power supply for our community,” Garza said in a news release. “This acquisition secures reliable capacity today – at a lower cost – and is a win for the customers of CPS Energy, the city of San Antonio and all the communities we serve by meeting their long-term energy needs. As we add resources to meet the needs of our fast-growing communities, we will continue to look to a diverse balance of energy sources that complement our portfolio, including natural gas, solar, wind, and storage, keeping our community powered and growing.”

PROENERGY will continue to staff, operate, and maintain the plants.

“By acquiring recently constructed, currently operating modern power plants that utilize proven technology already in use by CPS Energy, we avoid higher construction costs, inflationary risk, and long timelines associated with building new facilities – while also enhancing the reliability and affordability of the CPS Energy generation portfolio,” Garza added in the release.

CPS Energy is one of the nation’s largest public power, natural gas, and electric companies with 950,000 electric and 389,000 natural gas customers in the San Antonio area and surrounding counties.

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A View From HETI

KBR has been tapped to provide technology for a planned Singapore SAF plant with a production capacity of up to 100,000 tons per year. Photo via LinkedIn

Houston engineering and technology contractor KBR has been picked as the technology provider for what’s expected to be Asia's first commercial-scale ethanol-to-jet sustainable aviation fuel (SAF) plant.

The proposed plant on Jurong Island in Singapore is being developed by Keppel Ltd.’s Infrastructure Division and Aster Chemicals and Energy. KBR will provide technology licensing and Front-End Engineering Design (FEED) services based on its PureSAF technology.

The plant has a planned production capacity of up to 100,000 tons of SAF per year. The plant is subject to final investment decisions and regulatory approvals.

“We are looking forward to working with Keppel and Aster on this key project and to support Singapore’s ambition of becoming Asia’s leading SAF hub and advancing the ongoing efforts to decarbonize the country’s aviation ecosystem,” Stuart Bradie, KBR president and CEO, said in a news release.

According to KBR, its PureSAF Technology can process multiple feedstocks like bioethanol, syngas, carbon dioxide and hydrogen and convert them to SAF, diesel and gasoline.

The technology was developed by Swedish Biofuels AB and commercialized by KBR.

“KBR’s PureSAF is a feedstock-flexible, bankable technology that is designed to deliver a 100% drop in jet fuel, ready to power aircraft without blending,” Bradie added in the news release. “We are constantly innovating our SAF solution to make it compatible with feedstock availability in different regions and to enable the aviation industry to transition to low-carbon jet fuel with a cost-optimized approach.

KBR has also entered into a memorandum of intent with Keppel’s Infrastructure Division, which states that the companies will collaborate again on decarbonization efforts across biofuels, plastic recycling, digitalization via AI, and SAF.

KBR announced in October that it would spin off its Mission Technology Solutions business, nicknamed SpinCo. The scaled-down KBR, nicknamed RemainCo, would concentrate solely on sustainability technology and services designed to reduce carbon emissions and support energy transition efforts. SpinCo named its new CEO and CFO earlier this month.

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