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Houston law firm's Parisian expansion, a new drilling partnership, and more energy transition top stories

Here's what Houston energy transition news trended this week. Photo via Getty Images

Editor's note: From Bracewell's expansion into Paris to GA Drilling's partnership with Petrobras, these are the top headlines that resonated with EnergyCapital readers on social media and daily newsletter this week.

Petrobras teams up with Houston co. to improve efficiency in drilling

GA Drilling will work with Petrobras’ R&D center to roll out an autonomous drilling system. Photo via Getty Images

Slovakian geothermal drilling technology company GA Drilling, whose U.S. headquarters is in Houston, has teamed up with Brazilian energy giant Petrobras to reduce well construction costs and well-drilling risks.

Under the new partnership, GA Drilling will work with Petrobras’ R&D center to roll out an autonomous drilling system that enables drilling at offshore wells from a light vessel instead of a costlier semi-submarine or drill ship.

“Taken together, the benefits of our drilling technologies equal better efficiency, leading to lower costs, [a] smaller operational footprint, and ultimately lower risk overall,” Igor Kočiš, co-founder and CEO of GA Drilling, says in a news release. Continue reading.

Houston law firm expands energy practice to Paris

The new office will expand Bracewell's capabilities in France and the broader Europe, the Middle East and Africa region. Photo via Bracewell

It's not just United States athletes descending upon France this summer. A Houston-based law firm has announced the expansion of its energy team into the region.

Bracewell LLP has opened an office in Paris La Défense and named 11 energy and infrastructure lawyers from Norton Rose Fulbright to the new location, which will be focused on project development, M&A, and finance transactions in the energy and infrastructure sectors. The team will have an emphasis on renewable and conventional power, energy transition, oil and gas, and infrastructure in France — as well as Europe, the Middle East, and Africa. Continue reading.

Houston company secures $837M for trio of Texas energy storage projects

All three of Intersect Power's storage systems — Lumina I, Lumina II, and Radian — are expected to be online this year. Photo courtesy of Intersect

Houston-based clean energy company Intersect Power has wrapped up $837 million in financing for the construction and operation of three standalone battery energy storage systems in Texas.

The money came in the form of debt financing, construction debt, and tax equity. The projects qualify for tax credits under the federal Inflation Reduction Act. Backers of the financing include Deutsche Bank, Morgan Stanley, and affiliates of HPS Investment Partners. Continue reading.

Why this entrepreneur believes Houston should lead resilience technology alongside the energy transition

Ali Mostafavi, founder of Resilitix.AI, joins the Houston Innovators Podcast to discuss how he pivoted to provide important data amid Hurricane Beryl. Photo via tamu.edu

When it comes to developing resilience technology, Houston startup founder Ali Mostafavi knows he's in the right place.

Mostafavi, a civil and environmental engineering professor at Texas A&M University, co-founded Resilitix.AI two years ago, and with the help of his lab at A&M, has created a platform that brings publicly available data into AI algorithms to provide its partners near-real time information in storm settings.

"We are very excited that our company is Houston based," he says on the Houston Innovators Podcast. "We should not be just ground zero of disasters. We have to also be ground zero for solutions as well. I believe Houston should be the hub for resilience tech innovation as it is for energy transition. Continue reading.

Expert weighs in on fire protection standards in hydrogen industry growth

With the projected uptick of new hydrogen production projects, an expert explores hydrogen fire protection, reflects on the measures and standards established to mitigate risks, and more. Photo courtesy

As First State Hydrogen continues to advance its groundbreaking clean hydrogen production facility in the U.S., the spotlight intensifies as hydrogen becomes an increasingly key player in the energy transition.

With the projected uptick of new hydrogen production and handling projects, let's explore hydrogen fire protection, reflect on the measures and standards established to mitigate risks, and ensure that the hydrogen economy thrives. Continue reading.

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A View From HETI

A major heat alert is in place for Texas. Photo via Getty Images

Although the first official day of summer is not until June 20, Houstonians are already feeling the heat with record-breaking, triple-digit temperatures. The recent heatwave has many Texans wondering if the state’s grid will have enough power to meet peak demand during the summer.

How the Texas grid fared in summer 2024

To predict what could happen as we enter summer this year, it is essential to assess the state of the grid during summer 2024, and what, if anything, has been improved.

According to research from the Federal Reserve Bank of Dallas, solar electricity generation and utility-scale batteries within the ERCOT power grid set records in summer 2024. On average, solar contributed nearly 25 percent of total power needs during mid-day hours between June 1 and August 31. In critical evening hours, when load (demand for electricity) remains elevated but solar output declines, discharge from batteries successfully filled the gap.

Texas added more battery storage capacity than any other state last year, and, excluding California, now has more battery capacity than the rest of the country combined. The state also added 3,410 megawatts of natural gas-fueled power last year. While we did experience major power losses as a result of extreme weather, such as the derecho in May and Hurricane Beryl in July, ERCOT did not have to issue a single conservation appeal last summer to ward off capacity-related outages--and it was the sixth-hottest summer on record.

Policymakers are also taking steps to pass legislation that will help stabilize the grid. During this year’s 89th legislative session, Senate Bill 6 (TX SB6) was introduced, which seeks to:

  • Improve ERCOT's load forecasting transparency
  • Enhance outage protections for residential consumers
  • Adjust transmission cost allocations
  • Bolster grid reliability

In essence, the bill is meant to balance business growth with grid reliability, ensuring that the state continues to be an attractive destination for industrial expansion while preventing reliability risks due to rapid demand increases.

Is the Texas grid prepared for summer 2025?

The good news is that the grid is predicted to be able to manage the energy demand this summer, but there is no guarantee that power disruptions will not happen.

The National Oceanic and Atmospheric Administration has indicated that summer 2025 will likely be warmer and drier than average across most of Texas. Based on ERCOT data and weather projections, West Texas and the Dallas-Fort Worth and Houston metropolitan areas face the highest risk of outages.

While Texas is No. 1 in wind power and No. 2 in solar power, only behind California, there are valid concerns about heavy reliance on renewables when the wind isn’t blowing or the sun isn’t shining, compounded by a lack of large-scale battery storage. Then, there’s the underlying cost and ecological footprint associated with the manufacturing of those batteries. Although solar and wind capacity continues to expand rapidly, integration challenges remain during peak demand periods, especially during the late afternoon when solar generation declines but air conditioning usage remains high.

Additional factors that contribute to the grid’s instability are that Texas faces a massive surge in demand for electricity due to an increase in large users like crypto mining facilities and data centers, as well as population growth. ERCOT predicts that Texas’ energy demand will nearly double by 2030, with power supply projected to fall short of peak demand in a worst-case scenario beginning in summer 2026.

Thanks to investments in solar power, battery storage, and traditional energy sources, ERCOT has made progress in improving grid reliability which indicates that, at least for this summer, energy load will be manageable. A combination of legislative action, strategic planning and technological innovation will need to continue to ensure that this momentum remains on a positive trajectory.

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Sam Luna is director at BKV Energy, where he oversees brand and go-to-market strategy, customer experience, marketing execution, and more.

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