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$135 million Houston battery storage facility breaks ground

SMT Energy, CenterPoint and Irby Construction have broken ground on a 160-megawatt battery energy storage system in ERCOT's Houston zone. Photo via Getty Images

SMT Energy and CenterPoint Energy have partnered with utility infrastructure solutions provider Irby Construction Company to break ground on a 160 megawatt battery energy storage system (BESS) located in the Houston zone of the ERCOT market.

“We are proud to be underway and deliver this grid-strengthening project to Houston,” Kevin Midei, SVP of engineering, procurement and construction, at SMT Energy, said in a news release.

The BESS, SMT Houston IV, is expected to support grid stability, deliver fast-response power during peak demands and provide resiliency and renewable integration. The project is expected to be online by 2026 and store and dispatch enough electricity to power 8,800 homes in Texas annually.

SMT Energy is the project owner and developer, and CenterPoint Energy will serve as the interconnecting utility, integrating the system into Houston’s broader electrical network,” according to the companies. Irby Construction will serve as the engineering, procurement, and construction (EPC) contractor, and construction of the project is expected to be completed by July. On May 14, the companies broke ground with a ribbon-cutting ceremony to symbolize the start of the build.

“Projects like this demonstrate how collaboration and forward-thinking infrastructure come together to power a more resilient energy future,” Tony Gardner, SVP and chief customer officer at CenterPoint, said in a news release. “At CenterPoint, we recently completed nearly 90 percent of our overall grid resiliency improvements. This is one more action we are taking to build a more resilient and reliable grid to better serve our customers.”

In March, Colorado-based SMT Energy secured $135 million in funding for the SMT Houston IV, led by Macquarie and KeyBanc Capital Markets as joint lead arrangers. In 2023, SMT Energy and joint venture partner SUSI Partners announced plans to add 10 battery storage projects to Texas, which would double capacity from 100 megawatts to 200 megawatts in the Houston and Dallas areas.

In 2019, Irby began construction on the Manatee BESS site with Florida Power and Light (FPL), which was the world’s largest BESS project at the time. Irby has built over 30 BESS sites and has more than 20 currently under construction or contract.

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A View From HETI

Nominal, a Los Angeles-based software development firm, will host workshops and office hours at Greentown Houston. Photo courtesy of Greentown Labs

Greentown Labs has partnered with Los Angeles-based software development firm Nominal to launch the new Industrial Center of Excellence at Greentown's Houston incubator.

Nominal will provide access to its connected test and operations stack to help engineers working at Greentown Houston startups boost their "efficiency, automation, and scalability," according to a news release. The news comes just a few days after Greentown announced a partnership with Houston-based EnergyTech Nexus, which will also open an investor lounge on-site.

"Our mission is to remove friction for innovative entrepreneurs, so they can rapidly scale their transformative solutions," Lawson Gow, Greentown's Head of Houston, said in the release. "The Industrial Center of Excellence with Nominal will complement Greentown's robust prototyping, equipment, and lab offerings to accelerate entrepreneurs' ability to bring disruptive technologies out of the lab and into the world."

According to Greentown and Nominal, the partnership will support startups that are focused on decarbonizing the manufacturing sector, which Greentown estimates represents about a third of startups in its Houston incubator.

The new center will host specialized workshops and Nominal will now offer weekly office hours for Greentown startups.

"The future belongs to teams who can deliver resilient hardware faster than anyone else," Bryce Strauss, co-founder of Nominal, added in the statement. "Competitive edge is defined by test velocity. Nominal is building a connected stack of software tools where every discipline works shoulder-to-shoulder to make confident, real-time decisions."

Nominal, which supports engineering work in the aerospace, energy, automotive and defense industries, closed a $75 million series B round this summer.

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