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Houston company names new tech partner on projects aimed at increasing grid reliability

Grid United announced a new partnership with Hitachi Energy that it's entered into a collaboration to work on high-voltage direct current technology for Grid United transmission projects. Photo via hitachienergy.com

A Houston company has tapped a new tech partner to work on projects that are expected to help boost transmission capacity across the U.S. amidst increased, continued demands for energy.

Houston-based electrical transmission developer Grid United and Hitachi Energy announced at CERAWeek that it's entered into a collaboration to work on high-voltage direct current technology for Grid United transmission projects. These projects will aim to interconnect the eastern and western regional power grids in the U.S. The Eastern Interconnection east of the Rocky Mountains, the Western Interconnection west of the Rockies and the Texas Interconnection run by the Electric Reliability Council of Texas, make up the three main power grids.

This technology and these projects play a key role in the U.S. government’s commitment to accelerating the energy transition, which includes the priorities of the U.S. Department of Energy. The collaboration is considered a capacity reservation agreement in which Hitachi Energy will provide HVDC technology to support the development of multiple Grid United HVDC interconnections. The interconnections aim to mitigate the impact of extreme events and accommodate demands for electricity.

“With industry leading HVDC technology and a global track record, Hitachi Energy is a needed collaborator for the development of a more resilient and reliable electric power grid,” Michael Skelly, CEO and co-founder of Grid United, says in a news release. “By working with companies like Hitachi Energy and partnering with incumbent utilities, we’re confident we can quicken the pace of modernizing and strengthening the U.S. electric grid to meet rapidly increasing electricity demand.”

The multi-contract framework is one of the first of new business models, which allows Hitachi Energy to plan in “advance to increase manufacturing capacity, expand and train the workforce, and maximize standardization to increase efficiency between successive projects” according to a news release.

We are proud to collaborate with Grid United to strengthen the U.S. power grid, making it more flexible, reliable, and secure,” Managing Director of Grid Integration Business Niklas Persson says in a news release. “By applying our innovative new business model which enables speed and scale in the supply chain, we are confident we can make important contributions to streamlining the development process to help accelerate the energy transition.”

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A View From HETI

PitchBook attributes $634 million in fourth-quarter VC to Fervo. Photo via Getty Images

The venture capital haul for Houston-area startups jumped 23 percent from 2023 to 2024, according to the latest PitchBook-NVCA Venture Monitor.

The fundraising total for startups in the region climbed from $1.49 billion in 2023 to $1.83 billion in 2024, PitchBook-NVCA Venture Monitor data shows.

Roughly half of the 2024 sum, $914.3 million, came in the fourth quarter. By comparison, Houston-area startups collected $291.3 million in VC during the fourth quarter of 2023.

Among the Houston-area startups contributing to the impressive VC total in the fourth quarter of 2024 was geothermal energy startup Fervo Energy. PitchBook attributes $634 million in fourth-quarter VC to Fervo, with fulfillment services company Cart.com at $50 million, and chemical manufacturing platform Mstack and superconducting wire manufacturer MetOx International at $40 million each.

Across the country, VC deals total $209 billion in 2024, compared with $162.2 billion in 2023. Nearly half (46 percent) of all VC funding in North America last year went to AI startups, PitchBook says. PitchBook’s lead VC analyst for the U.S., Kyle Stanford, says that AI “continues to be the story of the market.”

PitchBook forecasts a “moderately positive” 2025 for venture capital in the U.S.

“That does not mean that challenges are gone. Flat and down rounds will likely continue at higher paces than the market is accustomed to. More companies will likely shut down or fall out of the venture funding cycle,” says PitchBook. “However, both of those expectations are holdovers from 2021.”

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This story originally appeared on our sister site, InnovationMap.com.

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