ADVERTISEABOUT USSUBMIT A STORYSUBSCRIBETERMS OF USEPRIVACY POLICY
Visit our family of Brands

Constellation and Calpine's $26B clean energy megadeal clears final regulatory hurdle

big deal

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

Baltimore-based nuclear power company Constellation Energy Corp. received final regulatory clearance this month to acquire Houston-based Calpine Corp. for a net purchase price of $26.6 billion.

The acquisition has the potential to create America’s “largest clean energy provider,” the companies reported when the deal was first announced in January.

The Department of Justice approved the acquisition contingent on Calpine divesting several assets, including one in the Houston area.

The company agreed to divest the Jack Fusco Energy Center natural gas-fired combined cycle facility in Richmond, Texas; four generating assets in the Mid-Atlantic region; and other natural gas plants in Pennsylvania and Corpus Christi, Texas.

The Federal Energy Regulatory Commission, the Public Utility Commission of Texas and the New York Public Service Commission previously approved the deal. The companies can move toward closing the acquisition once the court finalizes the stipulation and order.

"We are very pleased to reach a settlement that allows us to bring together two magnificent companies to create a new Constellation with unprecedented scale, talent and capability to better serve our customers and communities while building the foundation for America’s next great era of growth and innovation," Joe Dominguez, president and CEO of Constellation, said in a news release. "We thank the Department for its professionalism and tireless work reviewing this transaction through these many months. It’s now time for us to complete the transaction, welcome our new colleagues from Calpine, and together begin our journey to light the way to a brilliant tomorrow for all."

Andrew Novotny, CEO of Calpine, will continue to lead the Calpine business and Constellation's fleet of natural gas, hydro, solar and wind generation, according to the company. He will report to Dominguez and also serve as senior executive vice president of Constellation Power Operations.

Constellation is considered one of the top clean energy producers in the U.S. Earlier this month, the company was approved to receive a $1 billion loan from the Department of Energy's Energy Dominance Financing Program to restart its 835-megawatt nuclear reactor in Pennsylvania known as Crane Clean Energy Center.

"Work to restart the reactor comes at a time of unprecedented electric demand growth from electrification and the new data centers needed to support a growing digital economy and to help America win the AI race," a news release from the company reads. "Crane will support grid stability by delivering reliable, around-the-clock electric supply."

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

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

big deal

Baltimore-based nuclear power company Constellation Energy Corp. and Houston-based Calpine Corp. have entered into an agreement where Constellation will acquire Calpine in a cash and stock transaction with an overall net purchase price of $26.6 billion.

The companies say the agreement has the potential to create America’s “largest clean energy provider,” with what is reported to be the largest fleet of U.S. power stations servicing about 2.5 million customers.

“This is an incredible opportunity to bring together top tier generation fleets, leading retail customer businesses and the best people in our industry to help drive a stronger American economy for a cleaner, healthier and more sustainable future,” Andrew Novotny, president and CEO of Calpine, said in a news release.

Calpine is the largest U.S. producer of energy from low-emission natural gas generation and oversees the largest geothermal generation operation in the U.S. Last year it announced plans to build the Baytown Carbon Capture and Storage Project (Baytown CCS Project), a first-of-its-kind carbon capture demonstration facility, as part of a cost-sharing agreement with the U.S. Department of Energy.

Constellation is considered the top clean energy producer in the U.S., which provides 10 percent of the country’s emissions-free energy. The deal will add to Constellation’s already diverse portfolio of zero- and low-emission sources, including nuclear, natural gas, geothermal, hydro, wind, solar, cogeneration and battery storage.

“Both companies have been at the forefront of America’s transition to cleaner, more reliable and secure energy, and those shared values will guide us as we pursue investments in new and existing clean technologies to meet rising demand,” Joe Dominguez, president and CEO of Constellation, said the release. “What makes this combination even more special is it brings together two world-class teams, with the most talented women and men in the industry, who share a noble passion for safety, sustainability, operational excellence and helping America’s families, businesses and communities thrive and grow. We look forward to welcoming the Calpine team upon closing of this transaction.”

Constellation also announced that it will invest in adding more zero-emission energy to the grid to create “the most reliable generation portfolio in the U.S.” It plans to explore new advanced nuclear projects, invest in renewables and increase the output of existing nuclear plants.

“Together, we will be better positioned to bring accelerated investment in everything from zero-emission nuclear energy to battery storage that will power our economy in a way that puts people and our environment first,” Novotny said in a news release. “It’s a win for every American family and business in our newly combined footprint that wants clean and reliable energy. ECP’s commitment to these goals over the last seven years was critical to the progress we have made as a company and to laying a foundation for future growth.”

Ad Placement 300x100
Ad Placement 300x600

CultureMap Emails are Awesome

Property Showcase

Fervo Energy officially files for initial public offering

going public

Fervo Energy has officially filed for IPO.

The Houston-based geothermal unicorn filed a registration statement on Form S-1 with the U.S. Securities and Exchange Commission on April 17 to list its Class A common stock on the Nasdaq exchange. Fervo intends to be listed under the ticker symbol "FRVO."

The number and price of the shares have not yet been determined, according to a news release from Fervo. J.P. Morgan, BofA Securities, RBC Capital Markets and Barclays are leading the offering.

The highly anticipated filing comes as Fervo readies its flagship Cape Station geothermal project to deliver its first power later this year

"Today, miles-long lines for gasoline have been replaced by lines for electricity. Tech companies compete for megawatts to claim AI market share. Manufacturers jockey for power to strengthen American industry. Utilities demand clean, firm electricity to stabilize the grid," Fervo CEO Tim Latimer shared in the filing. "Fervo is prepared to serve all of these customers. Not with complex, idiosyncratic projects but with a simplified, standardized product capable of delivering around-the-clock, carbon-free power using proven oil and gas technology."

Fervo has been preparing to file for IPO for months. Axios Pro first reported that the company "quietly" filed for an IPO in January and estimated it would be valued between $2 billion and $3 billion.

Fervo also closed $421 million in non-recourse debt financing for the first phase of Cape Station last month and raised a $462 million Series E in December. The company also announced the addition of four heavyweights to its board of directors last week, including Meg Whitman, former CEO of eBay, Hewlett-Packard, and Spring-based HPE.

Fervo reported a net loss of $70.5 million for the 2025 fiscal year in the S-1 filing and a loss of $41.1 million in 2024.

Tracxn.com estimates that Fervo has raised $1.12 billion over 12 funding rounds. The company was founded in 2017 by Latimer and CTO Jack Norbeck.

Houston lawmaker may kill data center tax breaks due to $8B revenue loss

looking at the data

An influential Houston-area state senator is raising concerns about potentially billions of dollars in lost state revenue from tax breaks for Texas data centers—and is pondering legislation that would abolish the tax incentives.

Citing data from the state comptroller’s office, The Texas Tribune reports the state stands to lose nearly $8 billion in revenue from 2026 to 2030 due to sales tax and use tax exemptions for data centers. During the state’s 2025 fiscal year, which ended on Aug. 31, these tax exemptions caused Texas to lose a little over $1 billion, up from an earlier estimate of $130 million.

“These new numbers are extremely concerning, and I will say they’re unsustainable,” Republican state Sen. Joan Huffman, chairwoman of the state Senate Finance Committee, tells The Texas Tribune. “I plan to look at filing legislation to either repeal the exemption or take a very close look at it and see.”

Texas on track to be No. 1 data center market in U.S.

Scrutiny of the tax breaks comes amid an explosion of data center development in Texas, where data provider Aterio identifies nearly 1,000 centers that are operating, under construction or planned.

A report issued in January by Bloom Energy says the state is poised to become the No. 1 U.S. market for data centers within three years. By 2028, according to the report, Texas is projected to exceed 40 gigawatts of data center capacity—representing nearly 30 percent of total U.S. demand.

Among companies benefiting from the data center boom are:

  • Tech titans like Apple, Google, Meta Platforms, and Microsoft, which are spending billions of dollars to build data centers in Texas.
  • Spring-based ExxonMobil and Houston-based Chevron, two oil and energy giants that are developing natural gas plants to supply power for data centers.
  • Houston-based energy technology company Baker Hughes, which is collaborating with Google Cloud to develop AI-enabled power optimization and sustainability software for data centers.
  • DataBank, Data Foundry, Equinix, Digital Realty, Lumen Technologies, and IBM, all of which operate data centers in the Houston area.

The Texas Legislature will begin debating tax breaks for data centers in July, when Huffman’s Senate Finance Committee meets for an interim hearing before the 2027 legislative session, according to the Tribune.

Data center industry defends tax breaks

Leaders in the data center industry warn that watering down or halting the tax breaks could slow down or even end Texas’ ascent in the data center sector.

A 2025 report commissioned by the Data Center Coalition found that in 2024, data centers provided more than $1.6 billion in state tax revenue and almost $1.6 billion in local tax revenue in Texas. Over the next several years, according to the report, planned development of data centers in the Lone Star State could generate almost $3.8 billion in state tax revenue and more than $4.9 billion in local tax revenue.

In 2024, the Houston area had 8.1 million gross square feet of data centers, with the properties’ real estate investments sitting at $10 billion, according to the report. That year, data centers in the region produced a little over $700 million in state and local tax revenue. About 60 data centers operate in the Houston area.

Watchdog group warns of tax breaks’ danger to state budgets

On the other side of the debate over tax breaks for data centers, a report released last year by Good Jobs First, a nonprofit, nonpartisan watchdog group that tracks economic development incentives, decries the tax breaks as dangerous to state budgets.

“We know of no other form of state spending that is so out of control. Therefore, we recommend that states cancel their data center tax exemptions,” says Good Jobs research analyst Kasia Tarczynska, co-author of the report. “Shy of that, states should amend … legislation to cap how much any facility and company can avoid paying in taxes each year.”

Helix Earth closes $12M round and more Houston energy headlines

Trending News

Editor's note: The top energy transition headlines for the month include Helix Earth's Seed 2 funding and Chevron's plans for a West Texas power plant. Below are the five most-read EnergyCapital stories published April 1-15, 2026:

1. Houston cleantech company closes $12M seed round

Helix Earth is developing a retrofit technology that has the potential to cut HVAC energy use by up to 50 percent. Photo via Getty Images

Houston-based Helix Earth Technologies has closed a $12 million Seed 2 funding round to scale manufacturing of its energy-efficient commercial HVAC add-on technology. Veriten, a Houston-based energy investment firm, led the round. Rua Ventures, Carnrite Ventures, Skywriter LLC and Textbook Ventures also participated. Continue reading.

2. Chevron eyes $7B Texas power plant for Microsoft data center campus

Chevron is in talks with Microsoft and Engine No. 1 about a massive natural gas power plant in Texas. Photo via Getty Images

Software giant Microsoft is negotiating exclusively with Houston-based oil and gas titan Chevron and investment firm Engine No. 1 about the development of a $7 billion power plant in West Texas that would supply electricity for a Microsoft data center campus. Continue reading.

3. 3 strategies to strengthen the Gulf Coast as a global energy hub

The Gulf Coast is one of the most critical energy hubs in the world. Photo via Getty Images.

The Texas-Louisiana Gulf Coast is the backbone of America’s energy and chemical economy. Texas produces roughly 43% of U.S. crude oil and 28% of natural gas, while Texas and Louisiana together account for about half of the nation’s refining capacity, processing 9.3 million barrels of crude per day across 50 refineries. The region also produces approximately 80% of the nation’s primary petrochemicals and ships more than $117 billion in chemical products annually from Texas alone. Continue reading.

4. 8 CERAWeek 2026 takeaways from a new Houston energy leader

Kelsey Kearns (right), the new director of Greentown Houston, shared her takeaways from her first-ever CERAWeek with Energy Capital HTX. Photo courtesy Greentown

My first CERAWeek was a blur. Having top energy executives, policymakers, and technologists all gathered in Houston—over 11,000 of them this year—was both overwhelming and energizing. The theme was “Convergence and Competition: Energy, Technology, and Geopolitics,” and walking through the George R. Brown Convention Center, it was immediately clear that this was no ordinary industry conference. As a first-timer with a Greentown Labs lens, here’s what really stuck with me. Continue reading.

5. Greentown Labs names new COO, appoints new Head of Houston

Lawson Gow and Kelsey Kearns have stepped into new leadership roles at Greentown Labs. Photos courtesy Greentown/LinkedIn

Greentown Labs has reshuffled its leadership, elevating Houston leaders into new roles. Lawson Gow was named COO of the Houston- and Boston-based climatech incubator in February 2026. In his new role, he will focus on optimizing Greentown's structure, building new internal and external systems and developing a plan for growth. Continue reading.

View All Listings