$360M DOE grant to fund project that will connect ERCOT to US power grid

powering on

For the first time, Texas's ERCOT grid will be connected to other states' grids thanks to funding from the Department of Energy. Photo via Getty Images

Thanks to recently announced funding, the power grid for the territory served by the Electric Reliability Council of Texas (ERCOT) will be connected to grids in other states.

Officials hope building a 320-mile transmission line that connects the ERCOT electric grid to electric grids in the Southeast will prevent power outages like the massive blackout that occurred in 2022 when a winter storm blasted Texas.

San Francisco-based Pattern Energy says its Southern Spirit project will cost more than $2.6 billion. Full-scale construction is supposed to get underway in 2028, and the project is set to go online in 2031.

The U.S. Department of Energy recently approved up to $360 million for the transmission project. The transmission line will stretch from Texas’ border with Louisiana to Mississippi. It’ll supply about 3,000 megawatts of electricity in either direction. That’s enough power for about 750,000 residential customers during ERCOT’s peak hours.

ERCOT’s more than 54,100 miles of transmission lines supply power to about 90 percent of Texans.

“The U.S. transmission network is the backbone of our nation’s electricity system. Though our grid has served U.S. energy needs for more than a century, our country’s needs are changing,” David Turk, under secretary at the Department of Energy, says in a news release.

“DOE’s approach to deploying near-term solutions and developing long-term planning tools will ensure our electric grid is more interconnected and resilient than ever before,” Turk adds, “while also supporting greater electricity demand.”

The other three projects that recently received funding from the DOE include:

Aroostook Renewable Project, which will construct a new substation in Haynesville, Maine, and a 111-mile transmission line connecting to a substation in Pittsfield, Maine.
Cimarron Link, a 400-mile HVDC transmission line from Texas County, Oklahoma to Tulsa, Oklahoma
Southline, which will construct a 108-mile transmission line between Hidalgo County, New Mexico, and Las Cruces, New Mexico. The DOE previously supported a 175-mile line from Hidalgo County, New Mexico, to Pima County, Arizona, in Southline Phase 1 on the first round of the Transmission Facilitation Program.

This month's funding completes the $2.5 billion in awards from the Transmission Facilitation Program which is administered through the Building a Better Grid Initiative that launched in January 2022. Its mission has been to develop nationally significant transmission lines, increase resilience by connecting regions of the country and improve access to clean energy sources, according to the DOE.

Earlier this year, ERCOT, which manages 90 percent of Texas’ power supply, forecasted a major spike in demand for electricity over the next five to seven years

From Your Site Articles

The Meta and Sage Geosystems project is reportedly the first next-generation geothermal project located to the east of the Rocky Mountains. Rendering by Sage Geosystems and Meta

Meta taps Houston geothermal co. to power data center growth with clean energy

big tech

A Houston company has signed a new agreement with Meta Platforms Inc. — Facebook's parent company — to power the tech giant's data center growth.

Houston-based Sage Geosystems agreed to deliver up to 150 megawatts of new geothermal baseload power to Meta. The companies made the announcement this week at the United States Department Energy’s Catalyzing Next Generation Geothermal Development Workshop.

The deal is significant because it's the first next-generation geothermal project located to the east of the Rocky Mountains, the companies report in a news release.

“This announcement is the perfect example of how the public and private sector can work together to make the clean energy transition a reality,” Cindy Taff, CEO of Sage Geosystems, says in the release. “We are thrilled to be at the forefront of the next generation of geothermal technology and applaud the DOE for supporting the commercialization of innovation solutions.

"As energy demand continues to grow, the need for reliable, resilient and sustainable power is paramount and our partnership with Meta underscores the critical need for innovative and sustainable energy solutions like ours,” she continues.

The project's first phase will aim to be operating in 2027. The plans reflect how geothermal is being recognized as a growing carbon-free energy source in the country, and how Meta is committed to clean energy initiatives.

“The U.S. has seen unprecedented growth in demand for energy as our economy grows, the manufacturing sector booms thanks to the Biden-Harris Administration’s Investing in America agenda, and new industries like AI expand,” U.S. Energy Deputy Secretary David Turk says. “The Administration views this increased demand as a huge opportunity to add more clean, firm power to the grid and geothermal energy is a game-changer as we work to grow our clean power supply.”

Sage's technology — called Geopressured Geothermal System — works deep in the earth to develop energy storage and geothermal baseload power.

“Meta thanks the Department of Energy’s leadership on promoting and supporting the exploration of new energy sources like geothermal," Urvi Parekh, head of renewable energy at Meta, says. "That leadership supports Meta’s goal to enable the addition of reliable, affordable, and carbon-free power to the grid with this geothermal energy deal. We are excited to partner with such an innovative company like Sage Geosystems that is a proven leader in geothermal development on this project and beyond.”

Sage recently teamed up with a utility provider for an energy storage facility in the San Antonio metro area to build its three-megawatt EarthStore facility.

The company is also working on an exploratory geothermal project for the Army’s Fort Bliss post in Texas, which is the third U.S. Department of Defense geothermal initiative in the Lone Star State.

Ad Placement 300x100

Ad Placement 300x600

CultureMap Emails are Awesome

Property Showcase

5 must-read Houston energy headlines: Veriten venture fund, ERock IPO + more

Trending News

Editor's note: The month of May brought big news for the Houston energy sector, including a flagship energy venture fund and IPO updates. Here are the five most-read EnergyCapital stories published May 14-29, 2026:

1. Houston investment firm closes $105M energy venture fund

Houston-based investment firm Veriten has announced the initial close of its second flagship energy venture fund with more than $105 million in capital commitments. Fund II will build on Veriten’s initial fund and aim to support “scalable technology solutions for energy, power and industrial applications.” Veriten is supported by over 50 strategic partnerships in the energy, power, industrial and technology sectors, including major players like Halliburton and Phillips 66.

2. Buoyed by $1.3B sales backlog, microgrid company ERock files for IPO

Another energy company in Houston is going public amid a flurry of energy IPOs. Houston-based ERock Inc., which specializes in utility-grade onsite microgrid systems for data centers and other customers, has filed paperwork with the U.S. Securities and Exchange Commission (SEC) to sell its shares on the New York Stock Exchange. The ERock filing follows the recent $1.9 billion IPO of Houston-based Fervo Energy, a provider of geothermal power that’s now valued at $7.7 billion.

3. Houston renewables developer signs agreement with Meta for new solar project

Houston-based EDP Renewables North America has signed a long-term power purchase agreement with Meta, the parent company of Facebook and Instagram, for its forthcoming Cypress Knee Solar project. The 250‑megawatt solar project will be built in Arkansas and is expected to come online by 2028. The company says the project will generate approximately $25 million in new revenue for Chicot County once operational.

4. Houston energy expert asks: Who pays when AI outruns the power grid?

For most of the past 20 years, U.S. electricity policy relied on predictable trends in demand. Electricity use, in most regions, increased gradually, forecasts were stable, and utilities adjusted the system in small steps. Power plants, transmission lines, and substations were generally added to reflect shifts in load, rather than growth, and costs were recovered through modest adjustments to customer bills. Growth in AI data centers has disrupted this model. A single facility can add as much electricity demand as a small town. That demand comes all at once, runs continuously, and has little tolerance for outages. If electricity service drops even briefly, computation stops, and services shut down. Ironically, data centers need reliable service, a point that their emergence is driving concern around for the rest of the grid.

5. Report shows geoscientists earn largest salary premium in Texas

A move to Texas bolsters earnings for some, and a new SmartAsset study has revealed the top professions where the median annual earnings in the Lone Star State exceed the national median. According to the report's findings, geoscientists have the biggest "Texas premium" and make a $159,903 median annual salary. Texas' salary for geoscientists is 61 percent higher than the national median for the same position (after adjusting for regional price parity).

Greentown names 5 climatech startups to manufacturing accelerator

Catalyst Cohort

Greentown Labs has named five climatech startups to its Go Make 2026 cohort, including one from Houston.

Greentown Go Make 2026 is in partnership with Shell Catalysts & Technologies and Technip Energies. Startups will be able to collaborate with leadership from Shell and Technip and have opportunities to work directly with their process engineering teams and develop potential partnerships, pilots and demonstrations, according to Greentown.

This year's manufacturing cohort focuses specifically on process technology and catalytic innovations, which, according to Greentown, have the potential to be a "critical enabler of the global energy transition." Greentown shares that 90 percent of chemical processes depend on catalysis, but traditional methods rely on fossil fuels and consume significant amounts of energy.

“Catalysis underpins the majority of industrial chemical processes, which together account for a significant share of global emissions, making it a critical lever for reducing carbon intensity while improving performance,” Georgina Campbell Flatter, CEO of Greentown, said in a news release. “Greentown Go Make 2026 is designed to close the gap between breakthrough innovation and industrial deployment. By connecting startups with Shell and Technip Energies’ technical expertise and global scale, we’re helping accelerate solutions that improve efficiency and drive industrial decarbonization.”

The five Greentown Go Make 2026 companies include:

Houston-based Biosimo, which makes scalable biochemicals from ethanol
Missouri-based Catalyxx, which transforms bioethanol into drop-in, cost-competitive, carbon-negative chemicals
Sydney, Australia-based HydGene Renewables, which produces low-carbon hydrogen and industrial chemicals from waste biomass
Switzerland-based TreaTech, which turns waste into renewable gas, water and minerals through catalytic hydrothermal gasification
California-based Unifuel, which has developed a chemical technology platform to make sustainable aviation fuel, renewable gasoline and other renewable chemicals

The cohort will be celebrated at a kickoff event in Houston at The Ion on June 9.

In addition to Greentown Go Make, Greentown also runs its Go Move (transportation), Go Energize (energy and electricity), Go Build (buildings), and Go Grow (food and agriculture) cohort-based programs. The climatech incubator announced its Go Build 2026 cohort in March. Read more here.

Houston developer launches AI-powered water platform to boost efficiency

eyes on AI

Houston real estate company McCord Development has launched an artificial-Intelligence-run water management platform, MizuWatch.

MizuWatch aims to help operators, districts, and municipalities detect leaks faster, reduce water loss and improve efficiency, according to the company. MizuWatch pulls data from supply sources, smart meters, historical usage and maintenance records, and combines them into a single platform. The AI system also uses visual mapping and digital twin technology to deliver near-real-time system insights.

“MizuWatch brings the right data together daily, so teams can see what’s happening now, intervene earlier and focus their resources where they have the greatest impact,” Jerzy Wielgus, chief product officer for MizuWatch, said in a news release.

MizuWatch was built to “scale across geographies and system sizes to help assist with water scarcity, aging infrastructure, and operational complexity,” according to the company. It was developed at Houston’s Generation Park, McCord’s 4,300-acre master planned commercial district. McCord was able to pilot the platform onsite to help manage its complex, real-world water systems at scale.

“Resilient infrastructure is a key factor for the companies choosing Generation Park,” Ryan McCord, CEO of McCord Development and Founder & CEO of MizuWatch, added in the release. “We made the decision to deploy smart meters, but no one knew how to use the data they generate. This is an opportunity across all infrastructure where sensors are deployed. What started as an internal solution has become a platform we believe can help stakeholders everywhere be more efficient in their operations, investment, and compliance.”

Last fall, Eli Lilly and Co. selected Generation Park for its $6.5 billion manufacturing plant. More than 300 locations in the U.S. competed for the factory. Bristol Myers Squibb Co., another pharmaceutical giant, also announced it is considering Generation Park for a new manufacturing hub earlier this month.

View All Listings

ENERGYCAPITALHTX EMAILS ARE AWESOME