Broad Reach Power's battery storage assets piqued a French company's interest. Photo via broadreachpower.com

A French utility company is buying the bulk of Houston-based Broad Reach Power’s battery energy storage business in a deal carrying an equity value of more than $1 billion.

Engie, has agreed to purchase the majority of the startup’s battery storage business from EnCap Energy Transition Fund I and three investment partners — New York City-based Yorktown Partners, Switzerland-based Mercuria Energy, and New York City-based Apollo Infrastructure Funds.

“This acquisition is fully in line with Engie’s strategy: It will contribute to the development of a low-carbon, affordable, and resilient energy system where flexible assets will play a critical role alongside renewables,” says Catherine MacGregor, the utility’s CEO.

Broad Reach launched in 2019 with backing from EnCap Energy Transition, an arm of Houston-based private equity firm EnCap Investments. Apollo Global Management, an asset manager that controls Apollo Infrastructure Funds, bought a 50 percent stake in Broad Reach in 2021.

The deal includes 350 megawatts of grid-scale battery assets that already are operating and 880 megawatts of assets under construction, primarily in the territory served by the Electric Reliability Council of Texas (ERCOT). It also includes a 1.7-gigawatt pipeline of battery storage projects that are in the advanced stage of development and a significant pipeline of early-stage projects.

In July, Broad Reach said it had lined up $435 million in credit facilities to support the 880 megawatts’ worth of systems under construction in Texas and California.

The Broad Reach acquisition does not include the company’s 1.8-gigawatt portfolio of solar and wind power projects, or its four gigawatt-hours’ worth of battery storage in the Mountain West.

The deal is expected to close in the fourth quarter of this year. The purchase price wasn’t disclosed, but the Bloomberg news service reports the deal will cause Engie to “take a $1.6 billion hit” to it net debt.

Shawn Cumberland, managing partner of EnCap and chairman of Broad Reach, calls Broad Reach “the top battery storage player in the U.S. market.” And Corinne Still, an infrastructure partner at Apollo, refers to Broad Reach as “the leading and most innovative” battery energy storage operator in North America.

“It has been a terrific honor and pleasure to be part of the rapid growth of the U.S. energy storage sector from the very beginning and see our company grow into one of the top developers,” says Doug Moorehead, founder and COO of Broad Reach.

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Houston climatech incubator names new CFO

onboarding

Greentown Labs, a climatech incubator with locations in Houston and Somerville, Massachusetts, has hired Naheed Malik as its chief financial officer. In her new role, she oversees finance, accounting and human resources.

Malik previously worked at American Tower Corp., an owner of wireless communication towers. During her 12-year tenure there, she was vice president of financial planning and analysis, and vice president of corporate finance.

Before American Tower, Malik led financial planning and analysis at Wolters Kluwer Health, and was a management consultant at Kearney and an audit CPA at EY.

Kevin Dutt, Greentown’s interim CEO, says in a news release that Malik’s “deep expertise will be a boon for Greentown as we seek to serve even more climatech startups in our home states of Massachusetts and Texas, and beyond.”

“I am delighted to join Greentown at such an exciting time in its organizational growth,” Malik says. “As a nonprofit that’s deeply dedicated to its mission of supporting climatech innovation, Greentown is poised to build on its impressive track record and expand its impact in the years to come.”

Greentown bills itself as North America’s largest incubator for climatech startups. Today, it’s home to more than 200 startups. Since its founding in 2011, Greentown has nurtured more than 575 startups that have raised over $8.2 billion in funding.

Last year, Greentown’s CEO and president Kevin Knobloch announced that he would be stepping down in July 2024, after less than a year in the role. The incubator. About a month before the announcement, Knobloch reported that Greentown would reduce its staff by 30 percent, eliminating roles in Boston and Houston. He noted changes in leadership, growth of the team and adjustments following the pandemic.

Greentown plans to announce its new permanent CEO by the end of the month.

Being prepared: Has the Texas grid been adequately winterized?

Winter in Texas

Houstonians may feel anxious as the city and state brace for additional freezing temperatures this winter. Every year since 2021’s Winter Storm Uri, Texans wonder whether the grid will keep them safe in the face of another winter weather event. The record-breaking cold temperatures of Uri exposed a crucial vulnerability in the state’s power and water infrastructure.

According to ERCOT’s 6-day supply and demand forecast from January 3, 2025, it expected plenty of generation capacity to meet the needs of Texans during the most recent period of colder weather. So why did the grid fail so spectacularly in 2021?

  1. Demand for electricity surged as millions of people tried to heat their homes.
  2. ERCOT was simply not prepared despite previous winter storms of similar intensity to offer lessons in similarities.
  3. The state was highly dependent on un-winterized natural gas power plants for electricity.
  4. The Texas grid is isolated from other states.
  5. Failures of communication and coordination between ERCOT, state officials, utility companies, gas suppliers, electricity providers, and power plants contributed to the devastating outages.

The domino effect resulted in power outages for millions of Texans, the deaths of hundreds of Texans, billions of dollars in damages, with some households going nearly a week without heat, power, and water. This catastrophe highlighted the need for swift and sweeping upgrades and protections against future extreme weather events.

Texas State Legislature Responds

Texas lawmakers proactively introduced and passed legislation aimed at upgrading the state’s power infrastructure and preventing repeated failures within weeks of the storm. Senate Bill 3 (SB3) measures included:

  • Requirements to weatherize gas supply chain and pipeline facilities that sell electric energy within ERCOT.
  • The ability to impose penalties of up to $1 million for violation of these requirements.
  • Requirement for ERCOT to procure new power sources to ensure grid reliability during extreme heat and extreme cold.
  • Designation of specific natural gas facilities that are critical for power delivery during energy emergencies.
  • Development of an alert system that is to be activated when supply may not be able to meet demand.
  • Requirement for the Public Utility Commission of Texas, or PUCT, to establish an emergency wholesale electricity pricing program.

Texas Weatherization by Natural Gas Plants

In a Railroad Commission of Texas document published May 2024 and geared to gas supply chain and pipeline facilities, dozens of solutions were outlined with weatherization best practices and approaches in an effort to prevent another climate-affected crisis from severe winter weather.

Some solutions included:

  • Installation of insulation on critical components of a facility.
  • Construction of permanent or temporary windbreaks, housing, or barriers around critical equipment to reduce the impact of windchill.
  • Guidelines for the removal of ice and snow from critical equipment.
  • Instructions for the use of temporary heat systems on localized freezing problems like heating blankets, catalytic heaters, or fuel line heaters.

According to Daniel Cohan, professor of environmental engineering at Rice University, power plants across Texas have installed hundreds of millions of dollars worth of weatherization upgrades to their facilities. In ERCOT’s January 2022 winterization report, it stated that 321 out of 324 electricity generation units and transmission facilities fully passed the new regulations.

Is the Texas Grid Adequately Winterized?

Utilities, power generators, ERCOT, and the PUCT have all made changes to their operations and facilities since 2021 to be better prepared for extreme winter weather. Are these changes enough? Has the Texas grid officially been winterized?

This season, as winter weather tests Texans, residents may potentially experience localized outages. When tree branches cannot support the weight of the ice, they can snap and knock out power lines to neighborhoods across the state. In the instance of a downed power line, we must rely on regional utilities to act quickly to restore power.

The specific legislation enacted by the Texas state government in response to the 2021 disaster addressed to the relevant parties ensures that they have done their part to winterize the Texas grid.

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Sam Luna is director at BKV Energy, where he oversees brand and go-to-market strategy, customer experience, marketing execution, and more.

This article first appeared on our sister site, InnovationMap.com.

Halliburton names 5 clean energy startups to latest incubator cohort

clean team

Halliburton Labs has named five companies to its latest cohort, including one from Texas.

All of the companies are working to help accelerate the future of the energy industry in different ways. The incubator aims to advance the companies’ commercialization with support from Halliburton's network, facilities and financing opportunities.

The five new members include:

  • 360 Energy, an Austin-based in-field computing company with technology that is able to capture flared or stranded gas and monetize it through modular data centers
  • Cella, a New York-based mineral storage company that provides end-to-end services, from resource assessment to proprietary injection technology, and monitoring techniques to provide geologic carbon storage solutions
  • Espiku, an engineering services company based in Bend, Oregon, that finds solutions that advance water and minerals recovery from brines and industrial-produced water streams
  • Mitico, based in Los Angeles, that offers technology services to capture carbon dioxide by using its patent-pending granulated metal carbonate sorption technology (GMC) that captures more than 95% of the CO2 emitted from post-combustion point sources
  • NuCube, a Pasadena, California-based company with a nuclear fission reactor under development

“We welcome these innovative energy startups,” Dale Winger, managing director of Halliburton Labs, said in a news release. “We are eager to help these participant companies use their time and capital efficiently to progress new solutions that meet industry requirements for cost, reliability, and sustainability.”

Halliburton Labs also announced that it will host the Finalists Pitch Day on March 26, 2025, in Denver for energy and decarbonization industry innovators, startups and investors ahead of the National Renewable Energy Laboratory (NREL) Industry Growth Forum. The pitch event will precede registration and the opening reception of the NREL forum. Find more information here.

Adena Power, an Ohio-based clean energy startup, was the latest to join Halliburton Labs prior to the new cohort. The company used three patented materials to produce a sodium-based battery that delivers clean, safe and long-lasting energy storage.

The incubator also named San Francisco-based venture capital investor Pulakesh Mukherjee, partner at Imperative Ventures, which specializes in hard tech decarbonization startups, to its advisory board last spring.

Read more about the incubator's 2023 cohort here.