money moves

Houston startup secures $22 million for ERCOT energy storage projects

Houston's GoodPeak is breaking ground on its first energy storage projects. Photo via Getty Images.

Houston-based GoodPeak has nailed down $22 million in construction debt financing to help build its first two 10-megawatt battery energy storage projects, both of which are expected to come online in the Houston area at the end of 2025.

GoodPeak secured the debt financing from financial services company Pathward and renewable energy lender BridgePeak Energy Capital.

GoodPeak says an undisclosed amount of funding from private equity firm Current Equity Partners and other investors will further spur growth. That growth starts with the construction of the two Houston-area battery energy storage projects, which will serve the Electric Reliability Council of Texas (ERCOT), whose power grid serves most of the state.

Aside from Current Equity Partners, investors in GoodPeak include executives, family offices, and energy industry advisers.

“GoodPeak plans to expand and diversify its development pipeline to include larger projects, integrated power generation, and data center development opportunities,” the company says in a news release.

GoodPeak’s initial development pipeline includes 10 ERCOT projects in the Houston and Dallas-Fort Worth areas, and 14 projects in Northern California. The combined capacity of the projects will be 1 gigawatt.

Founded in 2022 by Trent Kososki and Hayden Stanley, GoodPeak develops, owns, and operates utility-scale battery storage and solar power assets for “high-value, capacity-constrained locations.”

“Breaking ground on our first energy storage projects marks a major milestone for GoodPeak in helping to solve Texas’ grid challenges,” says Kososki, CEO of GoodPeak. “These projects will provide much-needed resilience to the grid, storing excess power during times of low demand and delivering it when it’s needed most — helping to stabilize energy prices, support renewable integration, and enhance overall reliability.”

In a 2024 LinkedIn post, Kososki wrote that he was “embarking upon a new adventure in establishing GoodPeak — a battery energy storage platform with a mission to aggressively pursue descent from the world’s mountain of carbon emissions.”

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A View From HETI

1PointFive, a subsidiary of Oxy, was granted the first-ever EPA permits for its large-scale carbon capture and sequestration facility in Texas. Photo via 1pointfive.com

Houston’s Occidental Petroleum Corp., or Oxy, and its subsidiary 1PointFive announced that the U.S Environmental Protection Agency approved its Class VI permits to sequester carbon dioxide captured from its STRATOS Direct Air Capture (DAC) facility near Odessa. These are the first such permits issued for a DAC project, according to a news release.

The $1.3 billion STRATOS project, which 1PointFive is developing through a joint venture with investment manager BlackRock, is designed to capture up to 500,000 metric tons of CO2 annually and is expected to begin commercial operations this year. DAC technology pulls CO2 from the air at any location, not just where carbon dioxide is emitted. Major companies, such as Microsoft and AT&T, have secured carbon removal credit agreements through the project.

The permits are issued under the Safe Drinking Water Act's Underground Injection Control program. The captured CO2 will be stored in geologic formations more than a mile underground, meeting the EPA’s review standards.

“This is a significant milestone for the company as we are continuing to develop vital infrastructure that will help the United States achieve energy security,” Vicki Hollub, Oxy president and CEO, said in a news release.“The permits are a catalyst to unlock value from carbon dioxide and advance Direct Air Capture technology as a solution to help organizations address their emissions or produce vital resources and fuels.”

Additionally, Oxy and 1PointFive announced the signing of a 25-year offtake agreement for 2.3 million metric tons of CO2 per year from CF Industries’ upcoming Bluepoint low-carbon ammonia facility in Ascension Parish, Louisiana.

The captured CO2 will be transported to and stored at 1PointFive’s Pelican Sequestration Hub, which is currently under development. Eventually, 1PointFive’s Pelican hub in Louisiana will include infrastructure to safely and economically sequester industrial emissions in underground geologic formations, similar to the STRATOS project.

“CF Industries’ and its partners' confidence in our Pelican Sequestration Hub is a validation of our expertise managing carbon dioxide and how we collaborate with industrial organizations to become their commercial sequestration partner,” Jeff Alvarez, President of 1PointFive Sequestration, said in a news release.

1PointFive is storing up to 20 million tons of CO2 per year, according to the company.

“By working together, we can unlock the potential of American manufacturing and energy production, while advancing industries that deliver high-quality jobs and economic growth,” Alvarez said in a news release.

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