Houston company lands first deal from new Blackstone energy transition fund

M&A activity

A 146-year-old Houston company is the first to land an investment from the Blackstone Energy Transition Partners V fund. Photo via dresserutility.com

Asset manager Blackstone has agreed to buy Houston-based Dresser Utility Solutions from Connecticut private equity firm First Reserve for an undisclosed amount. First Reserve has a major presence in Houston.

The deal represents the first investment from Blackstone Energy Transition Partners V.

“Blackstone’s deep resources and experience in the utility sector make them an ideal partner as we continue to invest in innovation, expand our product portfolio, and deliver value for our customers,” Dresser CEO David Evans said in a news release.

Founded in 1880, Dresser provides metering technology, digital instrumentation and software, pressure and flow controls, and infrastructure repair products for gas and water utilities and industrial customers. The company employs about 850 people worldwide.

“As demands on the energy grid continue to grow, Dresser plays a critical role as a trusted partner to utilities managing essential infrastructure. The company’s products are foundational to the safe and reliable operation of gas and water networks, and its reputation for quality has helped build longstanding customer relationships,” David Foley, global head of Blackstone Energy Transition Partners, and JP Munfa, senior managing director, said in the release.

Blackstone Energy Transition Partners has invested more than $28 billion across the energy transition sector. New York-based Blackstone closed Blackstone Energy Transition Partners Fund IV at $5.6 billion in February 2025. Blackstone Energy Transition Partners Fund III closed in 2020 for $4.4 million, according to Pitchbook.

Other notable energy transition investments from Blackstone funds include Salt Lake City-based Energy Exemplar, French electronics manufacturing company Sediver, Plano-based Westwood Professional Services and others.

Two years ago, Dresser secured a $335 million credit facility from funds managed by asset manager Blue Owl Capital. At the time, Dresser said the money would go toward capital expenses, acquisitions and corporate needs.

This is the second notable investment Blackstone has made in a Houston-based energy company in recent months. In May, Blackstone and energy heavyweight Halliburton made a $1 billion equity investment in Houston power generation startup VoltaGrid, which provides behind-the-meter mobile power generation equipment for data centers, microgrids and industrial customers.

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Houston-based Clean Energy Services will operate as a subsidiary of FlexGen. Photo via flexgen.com

Houston clean energy startup acquired by battery storage company FlexGen

m&a activity

A North Carolina company has acquired Houston-based Clean Energy Services, a provider of services for battery energy storage systems and utility-scale solar, for an undisclosed amount.

The buyer is Durham, North Carolina-based FlexGen Power Systems, a provider of battery energy storage software and services.

Clean Energy Services (CES), whose offices are at the Ion, will operate as a subsidiary of FlexGen. Existing CES customers will continue to receive services from CES without disruption or change, FlexGen says.

“Demand for reliable, high-performance power is accelerating, and customers need partners who can deliver at scale,” Kelcy Pegler, CEO of FlexGen, said in a news release. “The addition of CES strengthens our service platform and reinforces our leadership in energy storage technology.”

Ahmad Atwan and Constantine Triantafyllides co-founded CES in 2022. As a startup, CES had raised $8 million in venture capital, according to PitchBook.

“CES has achieved a market leadership position in battery storage services by focusing on reliable speed of service delivery and optimizing asset performance,” Atwan, the company’s CEO, added the release. “FlexGen and CES have been strong partners for years, and this transaction enables us to deliver more robust solutions across a complementary set of customers and markets.”

CES will continue to operate its remote operations center in Houston for over 1 gigawatt of solar assets and 4.5 gigawatt-hours of battery assets, while FlexGen will maintain its remote operations center in Durham.

Pattern Energy will now own one of the largest independent clean energy infrastructure platforms in North America. Photo via Getty Images

Pattern Energy expands clean energy portfolio with acquisition of Canadian producer

acquisition closed

Clean energy and transmission infrastructure company Pattern Energy completed the acquisition of Canadian independent power producer Cordelio Power this month.

Pattern Energy, which is headquartered in San Francisco and has major operations in Houston, will now own one of the largest independent clean energy infrastructure platforms in North America, according to a release.

Pattern Energy will add approximately 1,550 megawatts of operating and in-construction assets, including 16 wind, solar and energy storage projects across the United States and Canada, as part of the deal. In addition, they have also acquired the majority of Cordelio’s development pipeline in key U.S. markets and members of Cordelio’s team.

“Closing this transaction marks a significant milestone for Pattern Energy as we continue to scale our platform to meet North America’s growing energy needs,” Hunter Armistead, CEO of Pattern Energy, said in the release. “Cordelio brings a highly complementary portfolio of quality assets and a talented team. Together, we are even better positioned to power the future.”

Currently, Pattern Energy’s portfolio includes wind, solar and energy storage projects in over 40 facilities in North America. Pattern Energy had 12,000 megawatts of operating and in-construction capacity before the deal.

The acquisition was first announced Jan. 6, 2025.

“Pattern and Cordelio share a commitment to responsible development and the communities in which we work,” Chris Hind, CEO of Cordelio Power, said in a news release. “We look forward to joining with Pattern Energy to deliver high-quality projects with expanded product offerings to support customers across more markets.”

Pattern Energy doubled down on its Houston commercial space in 2023, moving the company's development, meteorological, transmission and energy trading teams to a new office in the Montrose Collective. The company's Operations Control Center is also based in Houston.

Its Houston-based development team was assigned to work on Pattern's SunZia Transmission and Wind project in New Mexico and Arizona, expected to be one of the largest clean energy infrastructure projects in U.S. The project is targeting commercial operations this year, according to Pattern Energy's website.

Here are the top Houston energy transition stories of the year. Photo via Getty Images

Top 10 headlines that fueled Houston energy transition news in 2025

Year in Review

Editor's note: As we ring in a new year, we're looking back at the hottest energy transition topics of 2025. Here are the 10 most-read EnergyCapitalHTX stories of 2025, from a Texas energy startup's $200M funding round to a Houston energy storage company's major ERCOT deal:

Texas energy startup closes $200M round to fund first factory in the state

Base Power, founded by Justin Lopas and Zach Dell, closed a $200 million series B and plans to expand in Texas and around the country. Photo courtesy Base Power.

Base Power, an Austin-based startup that provides battery-powered home energy services and just entered the Houston market, raised $200 million in series B funding. The money was raised for construction of Base Power’s first factory in Texas and the national expansion of Base Power’s services. Last year, the startup landed $68 million in a series A funding round.

Houston startup secures $22 million for ERCOT energy storage projects

Houston's GoodPeak is breaking ground on its first energy storage projects. Photo via Getty Images.

Houston-based GoodPeak nailed down $22 million in construction debt financing to help build its first two 10-megawatt battery energy storage project. GoodPeak secured the debt financing from financial services company Pathward and renewable energy lender BridgePeak Energy Capital.

CenterPoint partners with AI and infrastructure companies to boost reliability

CenterPoint has partnered with Atlanta-based Osmose and Australia-based Neara to use AI-powered predictive modeling to inform decisions on restorations and risk. Photo via Getty Images

Houston utilities giant CenterPoint is partnering with companies from Atlanta and Australia to use AI to increase data accuracy and strengthen the power grid. The partnership is part of a collaboration between AI-powered predictive modeling platform company Neara and utility infrastructure asset assessment solutions company Osmose.

ExxonMobil, Rice launch sustainability initiative with first project underway

Under a new agreement, ExxonMobil and Rice University aim to develop “systematic and comprehensive solutions” to support the global energy transition. Photo via Getty Images.

Houston-based ExxonMobil and Rice University announced a master research agreement to collaborate on research initiatives on sustainable energy efforts and solutions. The agreement included multiple projects that were expected to be underway in 2025.

Houston expert: From EVs to F-35s — materials that power our future are in short supply

No critical minerals, no modern economy. Getty images

If you’re reading this on a phone, driving an EV, flying in a plane, or relying on the power grid to keep your lights on, you’re benefiting from critical minerals. These are the building blocks of modern life. Things like copper, lithium, nickel, rare earth elements, and titanium, they’re found in everything from smartphones to solar panels to F-35 fighter jets. Continue reading this guest column from Houston energy expert Scott Nyquist.

Greentown Labs announces newest startups to join Houston climatetech incubator

Five companies have joined Greentown Labs Houston, specializing in various "green" applications, from converting plastic waste into sustainable materials to developing energy-storage solutions. Photo courtesy Greentown Labs.

Greentown Labs added five startups to its Houston community in Q1 of 2025. The companies are among a group of 19 that joined the climatetech incubator, which is co-located in Houston and Boston, in the same time period. The companies that joined the Houston-based lab specialize in a number of "green" applications, from converting plastic waste into sustainable materials to developing energy-storage solutions.

Houston cleantech company expands into China with hydrogen energy pilot

HNO International is partnering with Zhuhai Topower New Energy Co. to deploy its modular SHEP technology in China. Graphic courtesy of HNO

Hydrogen-based clean energy technology company HNO International announced its first foray into the Chinese market this spring. The company, which is building a state-of-the-art hydrogen production and refueling facility in Katy, entered into an agreement with renewable energy company Zhuhai Topower New Energy Co. This initiative includes a pilot deployment of HNOI’s Scalable Hydrogen Energy Platform, or SHEP, in China.

CenterPoint reports progress on grid improvements ahead of 2025 hurricane season

CenterPoint Energy aims to complete its suite of grid resiliency projects before the 2025 hurricane season. Photo via centerpointenergy.com

As part of an ongoing process to make Houston better prepared for climate disasters, CenterPoint Energy announced its mid-year progress update on the second phase of the Greater Houston Resiliency Initiative (GHRI). CenterPoint reported that it had completed 70 percent of its resiliency work, and that all GHRI-related actions were expected to be complete before the official start of the 2025 hurricane season.

Daikin completes solar plant to power massive Houston-area campus

Daikin Industries' new solar power plant at its Waller-area campus will power its central chiller plant and is designed to connect to the campus' electric grid. Photo courtesy Daikin.

Japanese HVAC company Daikin Industries completed a nearly one-megawatt solar power plant at its Daikin Comfort Technologies North America campus southeast of Waller. Daikin said the new plant at its 4.2 million-square-foot Daikin Texas Technology Park will eliminate an estimated 845 metric tons of carbon emissions each year. The park houses the largest HVAC factory in North America.

Houston earns No. 3 spot among cities with most Fortune 500 headquarters

Twenty-six Houston-area companies landed on the latest Fortune 500 list. Photo via Getty Images

Houston maintained its No. 3 status this year among U.S. metro areas with the most Fortune 500 headquarters. Fortune magazine tallied 26 Fortune 500 headquarters in the Houston area, behind only the New York City area (62) and the Chicago area (30).

In January 2025, Constellation Energy Corp. announced plans to acquire Houston's Calpine Corp. Photo via LinkedIn

6 major acquisitions that fueled the Houston energy sector in 2025

2025 In Review

Editor's note: As 2025 comes to a close, we're revisiting the biggest headlines and major milestones of the energy transition sector this year. Here are six major acquisitions that fueled the Houston energy industry in 2025:

Houston-based Calpine Corp. to be acquired in clean energy megadeal

Houston's Calpine Corp. will be acquired by Baltimore-based nuclear power company Constellation Energy Corp. Photo via DOE

In January 2025, Baltimore-based nuclear power company Constellation Energy Corp. and Houston-based Calpine Corp. entered into an agreement where Constellation would acquire Calpine in a cash and stock transaction with an overall net purchase price of $26.6 billion. The deal received final regulatory clearance this month.

Investment giant to acquire TXNM Energy for $11.5 billion

Blackstone Infrastructure, an affiliate of Blackstone Inc., will acquire a major Texas electricity provider. Photo via Shutterstock

In May 2025, Blackstone Infrastructure, an investment giant with $600 million in assets under management, agreed to buy publicly traded TXNM Energy in a debt-and-stock deal valued at $11.5 billion. The deal recently cleared a major regulatory hurdle, but still must be approved by the Public Utility Commission of Texas.

Houston's Rhythm Energy expands nationally with clean power acquisition

PJ Popovic, founder and CEO of Houston-based Rhythm Energy, which has acquired Inspire Clean Energy. Photo courtesy of Rhythm

Houston-based Rhythm Energy Inc. acquired Inspire Clean Energy in June 2025 for an undisclosed amount. The deal allowed Rhythm to immediately scale outside of Texas and into the Northeast, Midwest and mid-Atlantic regions.

Houston American Energy closes acquisition of New York low-carbon fuel co.

Houston American Energy Corp. has acquired Abundia Global Impact Group, which converts plastic and certified biomass waste into high-quality renewable fuels. Photo via Getty Images.

Renewable energy company Houston American Energy Corp. (NYSE: HUSA) acquired Abundia Global Impact Group in July 2025. The acquisition created a combined company focused on converting waste plastics into high-value, drop-in, low-carbon fuels and chemical products.

Chevron gets green light on $53 billion Hess acquisition

With the deal, Chevron gets access to one of the biggest oil finds of the decade. Photo via Chevron

In July 2025, Houston-based Chevron scored a critical ruling in Paris that provided the go-ahead for a $53 billion acquisition of Hess and access to one of the biggest oil finds of the decade. Chevron completed its acquisition of Hess shortly after the ruling from the International Chamber of Commerce in Paris.

Investors close partial acquisition of Phillips 66 subsidiary with growing EV network

Two investment firms have scooped up the majority stake in JET, a subsidiary of Phillips 66 with a rapidly growing EV charging network. Photo via Jet.de Facebook.

In December 2025, Energy Equation Partners, a London-based investment firm focused on clean energy companies, and New York-based Stonepeak completed the acquisition of a 65 percent interest in JET Tankstellen Deutschland GmbH, a subsidiary of Houston oil and gas giant Phillips 66.

A unanimous settlement has been reached in Blackstone's $11.5 billion acquisition of TXNM Energy. Photo via Unsplash.

Blackstone clears major step in acquisition of TXNM Energy

power deal

A settlement has been reached in a regulatory dispute over Blackstone Infrastructure’s pending acquisition of TXNM Energy, the parent company of Texas-New Mexico Power Co. , which provides electricity in the Houston area. The settlement still must be approved by the Public Utility Commission of Texas.

Aside from Public Utility Commission staffers, participants in the settlement include TXNM Energy, Texas cities served by Texas-New Mexico Power, the Texas Office of Public Utility Counsel, Texas Industrial Energy Consumers, Walmart and the Texas Energy Association for Marketers.

Texas-New Mexico Power, based in the Dallas-Fort Worth suburb of Lewisville, supplies electricity to more than 280,000 homes and businesses in Texas. Ten cities are in Texas-New Mexico Power’s Houston-area service territory:

Alvin
Angleton
Brazoria
Dickinson
Friendswood
La Marque
League City
Sweeny
Texas City
West Columbia

Under the terms of the settlement, Texas-New Mexico Power must:

Provide a $45.5 million rate credit to customers over 48 months, once the deal closes
Maintain a seven-member board of directors, including three unaffiliated directors as well as the company’s president and CEO
Embrace “robust” financial safeguards
Keep its headquarters within the utility’s Texas service territory
Avoid involuntary layoffs, as well as reductions of wages or benefits related to for-cause terminations or performance issues

The settlement also calls for Texas-New Mexico Power to retain its $4.2 billion five-year capital spending plan through 2029. The plan will help Texas-New Mexico Power cope with rising demand; peak demand increased about 66 percent from 2020 to 2024.

Citing the capital spending plan in testimony submitted to the Public Utility Commission, Sebastian Sherman, senior managing director of Blackstone Infrastructure, said Texas-New Mexico Power “needs the right support to modernize infrastructure, to strengthen the grid against wildfire and other risks, and to meet surging electricity demand in Texas.”

Blackstone Infrastructure, which has more than $64 billion in assets under management, agreed in August to buy TXNM Energy in a $11.5 billion deal.

Neal Walker, president of Texas-New Mexico Power, says the deal will help his company maintain a reliable, resilient grid, and offer “the financial resources necessary to thrive in this rapidly changing energy environment and meet the unprecedented future growth anticipated across Texas.”

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KBR appoints C-suite duo to lead forthcoming spinoff

Making Moves

In advance of the spinoff of its Mission Technology Solutions unit, Houston-based KBR has made two C-suite hires for the new business.

Michael LaRouche is coming aboard as president and CEO of the spinoff, currently called SpinCo, on Sept. 26. Nicholas Veasey joined as executive vice president and chief financial officer earlier this month, on July 1.

“Michael and Nick bring a highly complementary combination of operational leadership, financial expertise, and mission-driven experience, and together they will accelerate our impact for stakeholders,” Stuart Bradie, chairman, president and CEO of publicly traded KBR, said in a news release.

LaRouche currently is CEO of Serco North America, a Herndon, Virginia-based government services contractor. Veasey most recently was CFO of MAG Aerospace, a Fairfax, Virginia-based defense contractor.

SpinCo, a government services contractor, will launch with more than $5.3 billion in annual revenue and 20,000 employees. KBR’s total headcount is around 36,000. Branding for SpinCo, including a formal name, will be revealed in July.

“SpinCo is positioned as a top-tier provider of differentiated technology solutions, anchored by deep mission expertise, global scale, and a relentless commitment to delivering for our customers,” LaRouche says.

After the spinoff, the slimmed-down KBR will focus on its Sustainable Technology Solutions business, a provider of energy and industrial technology that generated $2.5 billion in revenue in 2025 and is designed to reduce carbon emissions and support energy transition efforts. Bradie will remain chairman, president and CEO of the business.

Both SpinCo and the new KBR will be public companies. The spinoff is scheduled to be completed in January 2027.

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This article first appeared on InnovationMap.com.

Houston PE firm makes latest nuclear industry acquisition

nuclear deal

Houston-based private equity firm Pelican Energy Partners has acquired California-based Veridiam for an undisclosed amount in an effort to further increase the firm’s focus on the nuclear energy sector.

Veridiam is a strategic manufacturer that specializes in the precision fabrication of components and assemblies made from exotic metals or advanced alloys for the nuclear, aerospace, defense, space and medical fields.

Following the acquisition, Veridiam will continue to operate under its existing name and will led by its current management team, including CEO Brian Joyal.

“Joining the Pelican platform accelerates our strategic trajectory," Joyal said in a news release. "With Pelican's support, we will accelerate the modernization and expansion of our manufacturing capabilities to meet unprecedented demand across the nuclear, aerospace, defense, and medical sectors. This partnership also enables us to expand our portfolio of mission-critical products and engineered solutions while maintaining the uncompromising quality, precision, and reliability standards that have defined Veridiam for more than 60 years."

Since 2011, Pelican has raised over $1 billion in committed capital and has realized over 15 investments. Currently, Pelican is investing from its fourth fund, which aims to support and advance companies that provide critical services and products to the nuclear power industry.

In 2024, Pelican raised a $450 million fund to invest in nuclear energy services and equipment companies.

The Veridiam deal comes after Pelican has completed several nuclear acquisitions. The PE firm acquired New Hampshire-based Environmental Alternatives Inc., which provides nuclear decontamination services, in April; it acquired Georgia-based WSI Welding Solution in December, which services the nuclear sector.

"Veridiam sits at the center of our investment thesis and reflects the kind of deal Pelican does best," Mike Scott, managing partner and founder of Pelican Energy Partners, added in the news release. "With the right capital and operating support, we see a clear opportunity to strengthen the business, invest in its capabilities, and create long-term value for customers and shareholders."

How Mitsubishi Heavy Industries America is advancing the hydrogen economy

The View from HETI

Mitsubishi Heavy Industries America (MHIA), a steering-level member company of the Houston Energy Transition Initiative, is leveraging engineering expertise and global capabilities to develop and deploy technologies that will decarbonize existing infrastructure and build the hydrogen economy of the future. The company’s recent investment in Koloma, a Colorado-based geologic hydrogen exploration startup, demonstrates its commitment to breakthrough innovations that can transform how the world produces and uses clean energy.

Traditional hydrogen production methods, whether from natural gas with carbon capture or from electrolysis using renewable electricity, require significant energy inputs and infrastructure investments. Geologic hydrogen represents a potentially transformative alternative: naturally occurring hydrogen deposits that can be extracted from underground reservoirs.

Koloma is pioneering the exploration and commercialization of geologic hydrogen using proprietary technology, unique data sets, and specialized expertise to identify and develop these resources globally. If successful at scale, geologic hydrogen could provide clean, affordable hydrogen without the energy penalty of production.

MHIA’s investment in Koloma joins a syndicate of strategic partners committed to accelerating hydrogen development:

Breakthrough Energy Ventures: Bill Gates’ climate investment fund focused on breakthrough technologies

Amazon’s Climate Pledge Fund: Supporting technologies that enable Amazon’s path to net zero

United Airlines’ Sustainable Flight Fund: Investing in solutions for aviation decarbonization

This partnership brings together technology innovation, capital, and potential customers to create the ecosystem needed to move from exploration to commercial deployment.

MHIA’s investment in geologic hydrogen is part of the company’s broader strategy to develop the complete hydrogen value chain:

Production: Beyond geologic hydrogen, MHIA is advancing technologies for hydrogen production from diverse sources, including natural gas with carbon capture and renewable-powered electrolysis.

Infrastructure: The company is developing the compression, storage, and transportation systems needed to move hydrogen from production sites to end users.

End-Use Applications: MHIA’s expertise spans power generation, industrial processes, and transportation applications that can utilize hydrogen as a clean fuel.

Integration: The company is working to integrate hydrogen systems with existing infrastructure, enabling decarbonization without requiring complete infrastructure replacement.

While new technologies like geologic hydrogen offer exciting possibilities, MHIA recognizes that much of the world’s energy infrastructure will continue operating for decades. The company is also investing in technologies that decarbonize existing systems:

MHIA is developing and deploying carbon capture systems that can be retrofitted to existing power plants and industrial facilities, allowing them to continue operating while dramatically reducing emissions.

The company’s gas turbine technologies can operate on blends of natural gas and hydrogen, enabling progressive decarbonization as hydrogen availability increases.

Through advanced controls, materials, and designs, MHIA is improving the efficiency of existing infrastructure—reducing fuel consumption and emissions without requiring replacement.

MHIA’s approach to the energy transition is guided by a clear mission: develop innovative technologies that help achieve a decarbonized society while maintaining energy security and affordability. This mission recognizes several important realities:

Energy Access Matters: Billions of people still lack access to reliable, affordable energy. Solutions must scale globally and work across diverse economic contexts.

Existing Infrastructure Represents Enormous Investment: The world has trillions of dollars invested in energy infrastructure. Solutions that work with this infrastructure can deploy faster than those requiring complete replacement.

Multiple Pathways Are Needed: No single technology will solve the climate challenge. Success requires parallel development of multiple solutions—hydrogen, carbon capture, renewables, nuclear, efficiency, and others.

Speed Matters: Climate change is a time-sensitive challenge. Technologies that can deploy at scale in the 2020s and 2030s matter more than perfect solutions that might be available in the 2040s or 2050s.

From Technology to Impact

MHIA’s investment in Koloma reflects the company’s belief that breakthrough technologies require patient capital, technical expertise, and strategic partnerships to move from concept to commercial reality. Geologic hydrogen has the potential to provide clean, affordable hydrogen at scale—but only if exploration techniques are validated, production methods are proven, and commercial models are demonstrated.

By investing early and providing both capital and technical support, MHIA is helping to accelerate this timeline. If Koloma succeeds, the impact could extend far beyond a single project and could unlock a vast new resource for the global energy transition.

The energy transition requires engineering excellence, patient capital, and willingness to back breakthrough innovations before they’re fully proven. Through HETI member companies like Mitsubishi Heavy Industries America, Houston is demonstrating the leadership, technical capabilities, and strategic vision needed to build a hydrogen economy that can help decarbonize the world’s energy system.

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This article originally appeared on the Greater Houston Partnership's Houston Energy Transition Initiative blog . Learn more about MHIA’s energy transition initiatives at MHI Group Sustainability and read the full analysis here.

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