resiliency on tap

City of Houston takes step toward resiliency with $1.7B project milestone

The plant has the capacity to provide the city with over 400 million gallons of clean drinking water daily due to the state-of-the-art intake pump system located 900 feet from the shore of Lake Houston. Photo courtesy of the Mayor's Office

A new project that will increase Houston's resilience in the face of climate change-driven storms has delivered.

Houston Mayor Sylvester Turner and Houston Public Works and other water provider organizations celebrated the newly operational Northeast Water Purification Plant Expansion, which is the culmination of a $1.7 billion project.

The multi-year construction project began in 2017. The plant has the capacity to provide the city with over 400 million gallons of clean drinking water daily due to the state-of-the-art intake pump system located 900 feet from the shore of Lake Houston.

“Eight years ago, the city of Houston joined with four regional water authorities to invest over $1.7 billion to build what would become the largest public works water construction project in the nation,” Turner says in a news release. "The Northeast Water Purification Plant is an essential part of our city's infrastructure and growing resilience to the effects of climate change.”

The city of Houston partnered with the North Harris County Regional Water Authority, the West Harris County Regional Water Authority, the North Fort Bend Water Authority, the Central Harris County Regional Water Authority, the Texas Water Development Board, and many others. The Northeast Water Purification Plant is located in Humble, Texas.

Houston Public Works is responsible for, production and distribution of water, collection, and treatment of wastewater, and permitting and regulation of public and private construction, and streets and drainage.

“By increasing the City’s capacity to treat surface water and reducing dependence on groundwater, the project helps mitigate the risks associated with ground subsidence, such as increased flooding, damage to our roads, and other infrastructure issues,” Houston Public Works Director Carol Haddock says in a news release.

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A View From HETI

Fervo plans to sell 70 million shares of Class A common stock at $25 to $26 per share. Photo courtesy Fervo Energy

Houston-based geothermal power company Fervo Energy is now eyeing an IPO that would raise $1.75 billion to $1.82 billion, up from the previous target of $1.33 billion.

In paperwork filed Monday, May 11 with the U.S. Securities and Exchange Commission, Fervo says it plans to sell 70 million shares of Class A common stock at $25 to $26 per share.

In addition, Fervo expects to grant underwriters 30-day options to buy up to 8.33 million additional shares of Class A common stock. This could raise nearly $200 million.

When it announced the IPO on May 4, Fervo aimed to sell 55.56 million shares at $21 to $24 per share, which would have raised $1.17 billion to $1.33 billion. The initial valuation target was $6.5 billion.

A date for the IPO hasn’t been scheduled. Fervo’s stock will be listed on Nasdaq under the ticker symbol FRVO.

Fervo, founded in 2017, has attracted about $1.5 billion in funding from investors such as Bill Gates-founded Breakthrough Energy Ventures, Google, Mitsubishi Heavy Industries, Devon Energy (which is moving its headquarters to Houston), Tesla co-founder JB Straubel, CalSTRS, Liberty Mutual Investments, AllianceBernstein, JPMorgan, Bank of America and Sumitomo Mitsui Trust Bank.

Fervo’s marquee project is Cape Station in Beaver County, Utah, the world’s largest EGS (enhanced geothermal system) project. The first phase will deliver 100 megawatts of baseload clean power, with the second phase adding another 400 megawatts. The site can accommodate 2 gigawatts of geothermal energy. Fervo holds more than 595,000 leased acres for potential expansion.

Cape Station has secured power purchase agreements for the entire 500-megawatt capacity. Customers include Houston-based Shell Energy North America and Southern California Edison.

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