The rule will apply to 218 facilities spread across Texas and Louisiana, the Ohio River Valley, West Virginia and the upper South. Photo via Getty Images

More than 200 chemical plants nationwide will be required to reduce toxic emissions that are likely to cause cancer under a new rule issued Tuesday by the Environmental Protection Agency. The rule advances President Joe Biden’s commitment to environmental justice by delivering critical health protections for communities burdened by industrial pollution from ethylene oxide, chloroprene and other dangerous chemicals, officials said.

Areas that will benefit from the new rule include majority-Black neighborhoods outside New Orleans that EPA Administrator Michael Regan visited as part of his 2021 Journey to Justice tour. The rule will significantly reduce emissions of chloroprene and other harmful pollutants at the Denka Performance Elastomer facility in LaPlace, Louisiana, the largest source of chloroprene emissions in the country, Regan said.

“Every community in this country deserves to breathe clean air. That’s why I took the Journey to Justice tour to communities like St. John the Baptist Parish, where residents have borne the brunt of toxic air for far too long,” Regan said. “We promised to listen to folks that are suffering from pollution and act to protect them. Today we deliver on that promise with strong final standards to slash pollution, reduce cancer risk and ensure cleaner air for nearby communities.”

When combined with a rule issued last month cracking down on ethylene oxide emissions from commercial sterilizers used to clean medical equipment, the new rule will reduce ethylene oxide and chloroprene emissions by nearly 80%, officials said.

The rule will apply to 218 facilities spread across Texas and Louisiana, the Ohio River Valley, West Virginia and the upper South, the EPA said. The action updates several regulations on chemical plant emissions that have not been tightened in nearly two decades.

Democratic Rep. Troy Carter, whose Louisiana district includes the Denka plant, called the new rule “a monumental step" to safeguard public health and the environment.

“Communities deserve to be safe. I've said this all along,'' Carter told reporters at a briefing Monday. "It must begin with proper regulation. It must begin with listening to the people who are impacted in the neighborhoods, who undoubtedly have suffered the cost of being in close proximity of chemical plants — but not just chemical plants, chemical plants that don’t follow the rules.''

Carter said it was "critically important that measures like this are demonstrated to keep the confidence of the American people.''

The new rule will slash more than 6,200 tons (5,624 metric tonnes) of toxic air pollutants annually and implement fenceline monitoring, the EPA said, addressing health risks in surrounding communities and promoting environmental justice in Louisiana and other states.

The Justice Department sued Denka last year, saying it had been releasing unsafe concentrations of chloroprene near homes and schools. Federal regulators had determined in 2016 that chloroprene emissions from the Denka plant were contributing to the highest cancer risk of any place in the United States.

Denka, a Japanese company that bought the former DuPont rubber-making plant in 2015, said it “vehemently opposes” the EPA’s latest action.

“EPA’s rulemaking is yet another attempt to drive a policy agenda that is unsupported by the law or the science,” Denka said in a statement, adding that the agency has alleged its facility “represents a danger to its community, despite the facility’s compliance with its federal and state air permitting requirements.”

The Denka plant, which makes synthetic rubber, has been at the center of protests over pollution in majority-Black communities and EPA efforts to curb chloroprene emissions, particularly in the Mississippi River Chemical Corridor, an 85-mile (137-kilometer) industrial region known informally as Cancer Alley. Denka said it already has invested more than $35 million to reduce chloroprene emissions.

The EPA, under pressure from local activists, agreed to open a civil rights investigation of the plant to determine if state officials were putting Black residents at increased cancer risk. But in June the EPA dropped its investigation without releasing any official findings and without any commitments from the state to change its practices.

Regan said the rule issued Tuesday was separate from the civil rights investigation. He called the rule “very ambitious,'' adding that officials took care to ensure “that we protect all of these communities, not just those in Cancer Alley, but communities in Texas and Puerto Rico and other areas that are threatened by these hazardous air toxic pollutants.''

While it focuses on toxic emissions, “by its very nature, this rule is providing protection to environmental justice communities — Black and brown communities, low-income communities — that have suffered for far too long,'' Regan said.

Patrice Simms, vice president of the environmental law firm Earthjustice, called the rule “a victory in our pursuit for environmental justice.”

“There’s always more to do to demand that our laws live up to their full potential,” Simms said, "but EPA's action today brings us a meaningful step closer to realizing the promise of clean air, the promise of safe and livable communities and ... more just and more equitable environmental protections.''

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Solar manufacturer expands Houston footprint with new 4 GW factory

coming soon

Houston-based SEG Solar plans to open a new 4-gigawatt solar module manufacturing facility in Cypress.

The facility represents more than a $200 million investment and will raise SEG's total annual U.S. module production capacity to approximately 6 gigawatts, according to a new release. The expansion is part of SEG’s long-term goal of becoming one of the largest 100 percent U.S.-owned module manufacturers.

The new 500,000-square-foot facility will be located on Telge Road and is expected to create 800 new jobs, according to reports.

“This new facility marks an important milestone for SEG,” Timothy Johnson, VP of operations, said in the release. “It will further strengthen our U.S. manufacturing capabilities while supporting ongoing technology innovation. The plant is designed with the flexibility to integrate next-generation technologies, including (heterojunction solar technology) as the industry evolves.”

Commercial operations at the new facility are expected to commence in Q3 2026.

SEG is also developing a 5-gigawatt ingot and wafer manufacturing facility in Indonesia. Construction on the facility is expected to begin in Q2 2026.

In 2024, SEG Solar opened a new $60 million, 250,000-square-foot facility in Houston to house its production workshops, raw material warehouses, administrative offices, finished goods warehouses and supporting infrastructure. Read more here.

Fervo Energy bumps up IPO target to $1.82B

IPO update

Houston-based geothermal power company Fervo Energy is now eyeing an IPO that would raise $1.75 billion to $1.82 billion, up from the previous target of $1.33 billion.

In paperwork filed Monday, May 11 with the U.S. Securities and Exchange Commission, Fervo says it plans to sell 70 million shares of Class A common stock at $25 to $26 per share.

In addition, Fervo expects to grant underwriters 30-day options to buy up to 8.33 million additional shares of Class A common stock. This could raise nearly $200 million.

When it announced the IPO on May 4, Fervo aimed to sell 55.56 million shares at $21 to $24 per share, which would have raised $1.17 billion to $1.33 billion. The initial valuation target was $6.5 billion.

A date for the IPO hasn’t been scheduled. Fervo’s stock will be listed on Nasdaq under the ticker symbol FRVO.

Fervo, founded in 2017, has attracted about $1.5 billion in funding from investors such as Bill Gates-founded Breakthrough Energy Ventures, Google, Mitsubishi Heavy Industries, Devon Energy (which is moving its headquarters to Houston), Tesla co-founder JB Straubel, CalSTRS, Liberty Mutual Investments, AllianceBernstein, JPMorgan, Bank of America and Sumitomo Mitsui Trust Bank.

Fervo’s marquee project is Cape Station in Beaver County, Utah, the world’s largest EGS (enhanced geothermal system) project. The first phase will deliver 100 megawatts of baseload clean power, with the second phase adding another 400 megawatts. The site can accommodate 2 gigawatts of geothermal energy. Fervo holds more than 595,000 leased acres for potential expansion.

Cape Station has secured power purchase agreements for the entire 500-megawatt capacity. Customers include Houston-based Shell Energy North America and Southern California Edison.

Modular nuclear reactor company opens office in Houston

new to hou

The nuclear energy renaissance continues in Texas with an announcement by NuScale Power. The Oregon-based provider of proprietary and innovative advanced small modular reactor (SMR) nuclear technology announced in April it would be opening office space in Houston’s CityCentre.

“Opening this space in Houston underscores our commitment to meeting rising energy demand with safe, scalable nuclear technology,” John Hopkins, NuScale president and CEO, said in a news release. “This move expands our presence in a key market for partners, prospective customers, and stakeholders in addition to positioning us for the future as we focus on the near-term deployment of our industry-leading technology. Texas is leading the way in embracing advanced nuclear for grid resilience and industrial decarbonization, and we’re proud to expand our footprint and capabilities in this important region.”

Interest in nuclear power has been growing in recent years thanks to tensions with oil-rich nations, concerns about man-made climate change from fossil fuels, and the rapidly increasing power needs of data centers. Both Dow and Texas A&M University have announced expanded nuclear power projects in the last year, with an eye of changing the face of Texas’s energy industry through smaller, safer fission reactors.

Enter NuScale, founded in 2007 from technology developed at the University of Oregon. Their modular SMR technology generates 77 megawatts and is one of the only small modular reactors (SMR) to receive design approval from the U.S. Nuclear Regulatory Commission (NRC). These advances have led to runaway success for NuScale, whose stock has risen by more than 1,670 percent since the start of 2024.

The new operations campus in CityCentre is expected to facilitate the movement, installation and coordination of NuScale technology into the various energy systems. Typically, SMRs are used for off-grid installations, desalination operations, mining facilities and similar areas that lack infrastructure. However, the modularity means that they can be easily deployed to a variety of areas.

It comes none too soon. ERCOT projects that Texas data centers alone will require 77,965 megawatts by 2030.