$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

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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-changeras 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.

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ExxonMobil invests over $200M in Texas advanced recycling sites

doubling down

ExxonMobil announced that it plans to invest more than $200 million to expand its advanced recycling operations at its Baytown and Beaumont sites that are expected to start in 2026. The new operations can help increase advanced recycling rates and divert plastic from landfills, according to ExxonMobil.

“We are solutions providers, and this multi-million-dollar investment will enhance our ability to convert hard-to-recycle plastics into raw materials that produce valuable new products,” says Karen McKee, president of ExxonMobil Product Solutions, in a news release.

The investment plans to add 350 million pounds per year of advanced recycling capacity at Baytown and Beaumont, which will bring ExxonMobil’s total capacity to 500 million pounds annually. The first Baytown facility started in 2022 and represents one of the largest advanced recycling facilities in North America by having processed more than 70 million pounds of plastic waste.

“At our Baytown site, we’ve proven advanced recycling works at scale, which gives us confidence in our ambition to provide the capacity to process more than 1 billion pounds of plastic per year around the world,” McKee said in a news release. “We’re proud of this proprietary technology and the role it can play in helping establish a circular economy for plastics and reducing plastic waste.”

Advanced recycling works by transforming plastic waste into raw materials that can be used to make products from fuels to lubricants to high-performance chemicals and plastics. Advanced recycling allows for a broader range of plastic waste that won't be mechanically recycled and may otherwise be buried or burned.

ExxonMobil will continue development of additional advanced recycling projects at manufacturing sites in North America, Europe and Asia with the goal of reaching 1 billion pounds per year of recycling capacity by 2027.

Houston-based Fervo Energy collects $255M in additional funding

cha-ching

A Houston company that's responding to rising energy demand by harnessing geothermal energy through its technology has again secured millions in funding. The deal brings Fervo's total funding secured this year to around $600 million.

Fervo Energy announced that it has raised $255 million in new funding and capital availability. The $135 million corporate equity round was led by Capricorn’s Technology Impact Fund II with participating investors including Breakthrough Energy Ventures, CalSTRS, Congruent Ventures, CPP Investments, DCVC, Devon Energy, Galvanize Climate Solutions, Liberty Mutual Investments, Mercuria, and Sabanci Climate Ventures.

The funding will go toward supporting Fervo's ongoing and future geothermal projects.

“The demand for 24/7 carbon-free energy is at an all-time high, and Fervo is one of the only companies building large projects that will come online before the end of the decade,” Fervo CEO and Co-Founder Tim Latimer says in a news release. “Investors recognize that Fervo’s ability to get to scale quickly is vital in an evolving market that is seeing unprecedented energy demand from AI and other sources.”

Additionally, Fervo secured a $120 million letter of credit and term loan facility from Mercuria, an independent energy and commodity group that previously invested in the company.

“In surveying power markets across the U.S. today, the need for next-generation geothermal is undeniable,” Brian Falik, group chief investment officer of Mercuria, adds. “We believe in Fervo not just because their EGS approach is cost-effective, commercially viable, and already being deployed at scale, but because they set ambitious targets and consistently deliver.”

In February, Fervo secured $244 million in a financing round led by Devon Energy, and in September, the company received a $100 million bridge loan for the first phase of its ongoing project in Utah. This project, known as Project Cape, represents a 100x growth opportunity for Fervo, as Latimer explained to InnovationMap earlier this year. As of now, Project Cape is fully permitted up to 2 GW and will begin generating electricity in 2026, per the company.

Other wins for Fervo this year include moving into its new headquarters in downtown Houston, securing a power purchase agreement with California, growing its partnership with Google, and being named amongst the year's top inventions by Time magazine.

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This article originally ran on InnovationMap.

Greentown raises funding, a new tree initiative in Houston, and more trending energy transition news

top stories

Editor's note: From DOE funding for underground power line research to Zeta Energy's big deal with, these are the top headlines that resonated with EnergyCapital readers on social media and daily newsletter this week.

Investors from Houston and Boston fuel Greentown with $4M commitment

A mix of public and private investors have funded Greentown Labs. Photo via GreentownLabs.com

Greentown Labs, a climatetech incubator with locations in the Houston and Boston areas, has announced it has received funding from a mix of investors.

The $4 million in funding came from both of the Houston and Massachusetts locations. Houston investors included Bobby Tudor, CEO of Artemis Energy Partners and chairman of the Houston Energy Transition Initiative; David Baldwin, co-founder of OpenMinds and TEX-E and partner at SCF Partners; and Rice University. Other investors included MassDevelopment and the City of Somerville.

“The challenges of the energy transition are immense, and the role played by technology incubators like Greentown Labs is essential,” Tudor says in a news release. “We believe this role, which is a partnership between academia, industry, philanthropists, entrepreneurs, and governments, is the best way to get to effective, scalable solutions in a time frame that the urgency of the challenge requires. We need all hands on deck, and this partnership between Massachusetts and Texas can be a role model for others.”Continue reading.

Houston launches Google-backed tool to address urban tree cover disparities

American Forests is aiming to assist with at least 100 cities to make progress on Tree Equity by 2030. Photo by Thomas Koenig/Big Pineapple Productions

The oldest national nonprofit conservation organization in the U.S American Forests has launched the Houston Tree Equity Score Analyzer, which was developed through local nonprofit Trees For Houston and local stakeholders from local government, environmental groups and the public health sector, and supported by Google’s philanthropic arm Google.org with a $450,000 grant.

To mark the launch, Trees For Houston and American Forest celebrated the partnership and worked to plant 50 trees at Shadydale Elementary in Northeast Houston on December 6.

“This marks a significant milestone for Houston's urban forestry efforts,” says Texas State Representative Senfronia Thompson at the December 6 event. “This effort goes beyond simply planting trees—it’s about creating the foundation for a greener, more inclusive future for our community. By uniting diverse resources and partners, including American Forests, Google.org and Trees For Houston, we’re showcasing a powerful dedication to enhancing the environmental well-being and quality of life in our urban areas.”Continue reading.

Houston company secures $10M contract to deliver subsea well decommissioning solution

Expro has secured a $10 million contract to provide a subsea well decommissioning solution, combining subsea safety systems and surface fluid management to support safe re-entry and fluid management for plugged and abandoned wells. Photo courtesy of Expro

Houston energy services provider Expro was awarded a contract valued at over $10 million for the provision of a well decommissioning solution.

The solution will combine subsea safety systems and surface processing design that can enable safe entry to the well and management of well fluids.

“The contract reinforces our reputation as the leading provider of subsea safety systems and surface well test equipment, including within the P&A sector,” Iain Farley, Expro’s regional vice president for Europe and Sub-Saharan Africa, says in a news release.Continue reading.

This Houston innovator's innovative corrosion detection tech is vital to the future of energy

Anwar Sadek of Corrolytics joins the Houston Innovators Podcast to discuss his company's growth and move to Houston. Photo courtesy

Houston-based Corrolytics approach is to help revolutionize and digitize microbial corrosion detection — both to improves efficiency and operational cost for industrial companies, but also to move the needle on a cleaner future for the energy industry.

"We are having an energy transition — that is a given. As we are bringing new energy, there will be growth of infrastructure to them. Every single path for the energy transition, corrosion will play a primary role as well," Anwar Sadek, co-founder and CEO of Corrolytics, says on the Houston Innovators Podcast.

The technology Sadek and his team have created is a tool to detect microbial corrosion — a major problem for industrial businesses, especially within the energy sector. Sadek describes the product as being similar to a testing hit a patient would use at home or in a clinic setting to decipher their current ailments.Continue reading.

Houston company's $2B carbon-negative fuel project to rise in Southeast Texas

Pathway Energy has announced a major sustainable aviation fuel project in Port Arthur, Texas. Rendering courtesy of Pathway Energy

Houston developer of ultra carbon-negative fuels projects Pathway Energy announced a series of commercial-scale sustainable aviation fuel (SAF) facilities with the first being based in Port Arthur, Texas.

The project, estimated to be valued at $2 billion, will be one of the largest decarbonization projects in the world.

Pathway plans to bring commercial SAF to market with its years of experience in waste and biomass conversion processes and technologies that include biomass gasification, Fischer-Tropsch, biomass power generation, and complex biorefinery and industrial processes. Continue reading.

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