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Texas company secures $200M for solar project near Houston

The project will take over more than 1,000 acres of former farmland about an hour outside of Houston. Photo via Getty Images

An Austin-based company has scored $200 million in financing for a solar energy project it’s building in Liberty County.

Recurrent Energy’s 134-megawatt Liberty Solar project, about 50 miles northeast of Houston, is scheduled to start operating in 2024. The facility will occupy more than 1,000 acres of former farmland about six miles south of Dayton.

Last year, Recurrent Energy indicated the project represented an investment of $155 million, according to paperwork filed with the Texas Comptroller of Public Accounts.

The company lined up $120 million in financing through Rabobank, Nord LB, and U.S. Bank in the form of construction debt, a letter-of-credit facility, and a term facility. In addition, U.S. Bancorp Impact Finance, a subsidiary of U.S. Bank, is providing $80 million in tax equity.

“Liberty Solar is the second project financing that Recurrent Energy has closed in North America this summer, indicating execution on our strategy to retain greater ownership of projects in select markets,” Ismael Guerrero, CEO of Recurrent Energy, says in a news release.

Recurrent Energy announced in May 2023 that it had signed purchase agreements for all of the Liberty County site’s solar power capacity. The Austin company, a subsidiary of Canadian Solar, says Liberty Solar will generate enough energy to power an estimated 15,000 homes per year.

The five companies that agreed to buy the solar power are:

  • San Francisco-based software company Autodesk
  • Cambridge, Massachusetts-based biotech company Biogen
  • Semiconductor manufacturer EMD Electronics, the North American electronics business of Germany-based pharmaceutical giant Merck
  • Boston-based home goods retailer Wayfair
  • An unidentified healthcare company

The Recurrent Energy project will expand solar capacity in the Midcontinent Independent System Operator (MISO) region, which includes most of Liberty County. The nonprofit organization manages electricity in 15 states and Canada’s Manitoba province.

The solar project is outside the territory of the Energy Reliability Council of Texas (ERCOT), which oversees the power grid for about 90 percent of Texas.

Recurrent Energy already operates solar projects in California and Mississippi as well as Argentina, Australia, Brazil, Canada, Italy, Japan, Mexico, and the United Kingdom.

The Liberty Solar project isn’t the only solar facility being developed in Liberty County.

Spanish renewable energy company X-ELIO said in February 2023 that it had begun construction on a 60-megawatt battery energy storage system in Liberty County that it’s pairing with a 72-megawatt solar energy facility. The two projects are being built on the same site.

The solar energy project, set to start operating in early 2024, will support ERCOT’s energy needs in the Houston area. X-ELIO says the project represents an investment of more than $130 million.

Power generated by the facility will be sold to BASF, a chemical conglomerate based in Florham Park, New Jersey. Any surplus energy will be stored by the battery system. BASF maintains its regional petrochemical headquarters in Houston and a chemical manufacturing plant in Pasadena.

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A View From HETI

Zeta Energy's batteries are targeted to power Stellantis electric vehicles by 2030. Image via Zeta Energy

Houston-based Zeta Energy Corp. has teamed up with an automaker to develop new battery technology.

Zeta Energy and Stellantis N.V. announced a joint development deal to advance battery cell technology for electric vehicle applications that will develop lithium-sulfur EV batteries with gravimetric energy density that can achieve a volumetric energy density comparable to today’s lithium-ion technology. The batteries are targeted to power Stellantis electric vehicles by 2030.

“The combination of Zeta Energy’s lithium-sulfur battery technology with Stellantis’ unrivaled expertise in innovation, global manufacturing and distribution can dramatically improve the performance and cost profile of electric vehicles while increasing the supply chain resiliency for batteries and EVs,” Tom Pilette, CEO of Zeta Energy, says in a news release.

The batteries will be produced using waste materials and methane that boasts lower CO2 emissions than any existing battery technology. Zeta Energy battery technology is intended to be manufacturable within existing gigafactory technology and would leverage an entire domestic supply chain in Europe or North America.

The technology can lead to a significantly lighter battery pack with the same usable energy as contemporary lithium-ion batteries. The companies believe this will enable greater range, improved handling and enhanced performance. The technology has the potential to improve fast-charging speed by up to 50 percent, which can make EV ownership easier.

Lithium-sulfur batteries are expected to cost less than half the price per kilowatt of current lithium-ion batteries according to a news release. Zeta has more than 60 patents on its proprietary lithium-sulfur anode and cathode technologies.

Lighter and more compact EV batteries have become an important design goal for vehicle designers and manufacturers. This objective is similar to what General Motors is doing with prismatic cell technology with LG Energy Solution.

“Our collaboration with Zeta Energy is another step in helping advance our electrification strategy as we work to deliver clean, safe and affordable vehicles,” Ned Curic, Stellantis chief engineering and technology officer, says in the release. “Groundbreaking battery technologies like lithium-sulfur can support Stellantis’ commitment to carbon neutrality by 2038 while ensuring our customers enjoy optimal range, performance and affordability.”

Last year, Zeta Energy announced that it was selected to receive $4 million in federal funding for the development of efficient electric vehicle batteries from the U.S. Department of Energy's ARPA-E Electric Vehicles for American Low-Carbon Living, or EVs4ALL, program.

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