fresh funds

Houston companies scoop up $31 million in funds from DOE, EPA methane emissions program

Seven projects from Houston companies were granted more than $41 million in federal and non-federal funding through the Methane Emissions Reduction Program. Photo via Canva

The U.S. Department of Energy and the U.S. Environmental Protection Agency announced the selection of seven projects from Houston companies to receive funding through the Methane Emissions Reduction Program.

The projects are among 43 others nationwide, including 12 from Texas, that reduce, monitor, measure, and quantify methane emissions from the oil and gas sector. The DOE and EPA awarded $850 million in total through the program.

The Houston companies picked up $31.7 million in federal funding through the program in addition to more than $9.5 million in non-federal dollars.

“I’m excited about the opportunities these will create internally but even more so the creation of jobs and training opportunities for the communities in which we work,” Scott McCurdy, Encino Environmental Services CEO, said in a news release. His company received awards for two projects.

“These projects will allow us to further support and strengthen the U.S. Energy industry’s ability to deliver clean, reliable, and affordable energy globally,” he added.

The Houston-area awards included:

DaphneTech USA LLC

Total funding: $5.8 million (approximately $4.5 million in federal, $1.3 million in non-federal)

The award was granted for the company’s Daphne and Williams Methane Slip Abatement Plasma-Catalyst Scale-Up project. Daphne will study how its SlipPure technology, a novel exhaust gas cleaning system that abates methane and exhaust gas pollution from natural gas-fueled engines, can be economically viable across multiple engine types and operating conditions.

Baker Hughes Energy Transition LLC 

Total funding: $7.47 million (approximately $6 million in federal, $1.5 million in non-federal)

The award was granted for the company’s Advancing Low Cost CH4 Emissions Reduction from Flares through Large Scale Deployment of Retrofittable and Adaptive Technology project. The project aims to develop a scalable, integrated methane emissions reduction system for flares based on optical gas imaging and estimation algorithms.

Encino Environmental Services

Total funding: $15.17 million (approximately $11 million in federal, $4.17 million in non-federal)

The award was granted for two projects. The Advanced Methane Reduction System: Integrating Infrared and Visual Imaging to Assess Net Heating Value at the Combustion Zone and Determine Combustion Efficiency to Enhance Flaring Performance project aims to develop and deploy an advanced continuous emissions monitoring system. It’s Advancing Methane Emissions Reduction through Innovative Technology project will develop and deploy a technology using sensors and composite materials to address emissions originating in storage tanks.

Envana Software Solutions

Total funding: $5.26 million (approximately $4.2 million in federal, $1 million in non-federal)

The award was granted for the company’s Leak Detection and Reduction Software to Identify Methane Emissions and Trigger Mitigation at Oil and Gas Production Facilities Based on SCADA Data project. It aims to improve its Recon software for monitoring methane emissions and develop partnerships with local universities and organizations.

Capwell Services Inc.

Total funding: $4.19 million (approximately $3.3 million in federal, $837,000 in non-federal)

The award was granted for its Methane Emissions Abatement Technology for Low-Flow and Intermittent Emission Sources project. It aims to to deploy and field-test a methane abatement unit and improve air quality and health outcomes for communities near production facilities and establish field technician internships for local residents.

Blue Sky Measurements 

Total funding: $3.41 million (approximately $2.7 million in federal, $683,000 in non-federal)

The award was granted for its Field Validation of Novel Fixed Position Optical Sensor for Fugitive Methane Emission Detection Quantification and Location with Real-Time Notification for Rapid Mitigation project. It aims to field test an optical sensing technology at six well sites in the Permian Basin.

Southern Methodist University, The University of Texas at Austin, Texas A&M Engineering Experiment Station and Hyliion Inc. were other Texas-based organizations to earn awards. See the full list of projects here.

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A View From HETI

Solar represented 14 percent of energy supplied to the ERCOT electric grid in 2025. Photo via bp.com

Solar barely eclipsed coal to become the third biggest source of energy generated for the Electric Reliability Council of Texas (ERCOT) in 2025, according to new data.

In 2024, solar represented 10 percent of energy supplied to the ERCOT electric grid. Last year, that number climbed to 14 percent. During the same period, coal’s share remained at 13 percent.

From the largest to smallest share, here’s the breakdown of other ERCOT energy sources in 2025 compared with 2024:

  • Combined-cycle gas: 33 percent, down from 35 percent in 2024
  • Wind: 23 percent, down from 24 percent in 2024
  • Natural gas: 8 percent, down from 9 percent in 2024
  • Nuclear: 8 percent, unchanged from 2024
  • Other sources: 1 percent, unchanged from 2024

Combined, solar and wind accounted for 37 percent of ERCOT energy sources.

Looking ahead, solar promises to reign as the star of the ERCOT show:

  • An ERCOT report released in December 2024 said solar is on track to continue outpacing other energy sources in terms of growth of installed generating capacity, followed by battery energy storage.
  • In December, ERCOT reported that more than 11,100 megawatts of new generating capacity had been added to its grid since the previous winter. One megawatt of electricity serves about 250 homes in peak-demand periods. Battery energy storage made up 47 percent of the new capacity, with solar in second place at 40 percent.

The mix of ERCOT’s energy is critical to Texas’ growing need for electricity, as ERCOT manages about 90 percent of the electric load for the state, including the Houston metro area. Data centers, AI and population growth are driving heightened demand for electricity.

In the first nine months of 2025, Texas added a nation-leading 7.4 gigawatts of solar capacity, according to a report from data and analytics firm Wood Mackenzie and the Solar Energy Industries Association.

“Remarkable growth in Texas, Indiana, Utah and other states ... shows just how decisively the market is moving toward solar,” says Abigail Ross Hopper, president and CEO of the solar association.

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