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Houston-area clean energy projects lose more than $700M in federal funds

funding cut

The Department of Energy has axed federal funding for Houston-area clean energy projects from ExxonMobil, Calpine and Ørsted. Photo via exxonmobil.com

The federal government has canceled more than $700 million in funding for three clean energy projects in the Houston area.

In all, the U.S. Department of Energy (DOE) recently wiped out $3.7 billion in funding for 24 carbon capture and decarbonization projects across the country.

Houston-area projects that took a hit are:

It’s unclear how the loss of federal funding will affect the three Houston-area projects.

All $3.7 billion from the DOE was awarded in 2024 and 2025 during the Biden administration—in some cases days before President Trump took office.

“While the previous administration failed to conduct a thorough financial review before signing away billions of taxpayer dollars, the Trump administration is doing our due diligence to ensure we are utilizing taxpayer dollars to strengthen our national security, bolster affordable, reliable energy sources, and advance projects that generate the highest possible return on investment,” U.S. Energy Secretary Chris Wright said in a release.

Advocates for clean energy sharply criticized the DOE’s action:

  • Jessie Stolark, executive director of the Carbon Capture Coalition, said cancellation of the 24 DOE-funded projects “is a major step backward in the nationwide deployment of carbon management technologies. It is hugely disappointing to see these projects canceled — projects that had already progressed through a rigorous, months-long review process by technical experts at DOE.”
  • Iliana Paul, deputy director for the Sierra Club’s industrial transformation campaign, complained that the Trump administration “killed dozens of major investments in American competitiveness, good jobs, and cleaner air to support Trump’s tax cuts and line the pockets of billionaires. These projects were not just pro-climate; they were pro-jobs, pro-innovation, and pro-public health. American workers, fenceline communities, and forward-thinking companies have had the rug pulled out from under them.”
  • Conrad Schneider, senior U.S. director of the Clean Air Taskforce, said the DOE’s move “is bad for U.S. competitiveness in the global market and also directly contradictory to the administration’s stated goals of supporting energy production and environmental innovation. Canceling cutting-edge technology demonstrations, including support for carbon capture and storage projects, undercuts U.S. competitiveness at a time when there is a growing global market for cleaner industrial products and technologies.”
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In all, DOE recently allocated $518 million to 23 CCUS projects in the U.S. Photo via Getty Images

DOE dishes out funding to 2 Houston carbon caption projects

ccus news

Two Houston companies have received federal funding to develop carbon capture and storage projects.

Evergreen Sequestration Hub LLC, a partnership of Houston-based Trace Carbon Solutions and Jacksonville, Mississippi-based Molpus Woodlands Group, got more than $27.8 million from the U.S. Department of Energy for its Evergreen Sequestration Hub project in Louisiana. DOE says the project is valued at $34.8 million.

The hub will be built on about 20,000 acres of timberland in Louisiana’s Calcasieu and Beauregard parishes for an unidentified customer. It’ll be capable of storing about 250 million metric tons of carbon dioxide.

Trace Carbon Solutions, a subsidiary of Trace Midstream Partners, is developing CCS assets and supporting midstream infrastructure across North America. Molpus, an investment advisory firm, buys, manages, and sells timberland as an investment vehicle for pension funds, college endowments, foundations, insurance companies, and high-net-worth investors.

Another Houston company, RPS Expansion LLC, has received $9 million from the DOE to expand the River Parish Sequestration Project. Following the expansion, the project will be able to store up to 384 million metric tons of carbon dioxide. The CCUS hub is between Baton Rouge and New Orleans.

DOE says the River Parish expansion is valued at $11.8 million.

Also receiving DOE funding is a CCUS project to be developed off the coast of Corpus Christi. The developer is the Southern States Energy Board, based in Peachtree Corners, Georgia.

DOE is chipping in more than $51.1 million for the nearly $64 million hub. It’s estimated that about 35 million metric tons of carbon dioxide emissions are released each year from about 50 industrial and power facilities within a 100-mile radius of Mustang Island. Port Aransas is located on the 18-mile-long island.

In all, DOE recently allocated $518 million to 23 CCUS projects in the U.S.

“The funding … will help ensure that carbon storage projects — crucial to slashing harmful carbon pollution — are designed, built, and operated safely and responsibly across all phases of development to deliver healthier communities as well as high-quality American jobs,” Brad Crabtree, assistant DOE secretary for fossil energy and carbon management, says in a news release.

Ten energy tech companies in Houston are among 111 organizations to receive up to $250,000 in vouchers from the DOE's Office of Technology Transitions, totaling $9.8 million in funding. Photo via Getty Images

Houston companies land DOE vouchers for clean tech

money moves

Ten Houston-area companies will receive vouchers from the Department of Energy's latest round of funding to support the adoption of clean energy tech.

The companies are among 111 organizations to receive up to $250,000 in vouchers from the DOE's Office of Technology Transitions, totaling $9.8 million in funding, according to a release from the department.

The voucher program is in collaboration with the Offices of Clean Energy Demonstrations (OCED), Fossil Energy and Carbon Management (FECM), and Energy Efficiency and Renewable Energy (EERE). It is funded by the Bipartisan Infrastructure Law.

“It takes a breadth of tools and expertise to bring an innovative technology from research and development to deployment,” Vanessa Z. Chan, DOE Chief Commercialization Officer and Director of the Office of Technology Transitions, says in a statement. “The Voucher Program will pair 111 clean energy solutions with the support they need from expert voucher providers to help usher new technologies to market.”

In addition to the funding, the program seeks to help small businesses and non-traditional organizations gain access to testing facilities and third-party expertise.

The vouchers come in five different opportunities that focus on different areas of business growth and support:

  • Voucher Opportunity 1 (VO1) - Pre-Demonstration Commercialization Support
  • Voucher Opportunity 2 (VO2) - Performance Validation, Modeling, and Certification Support
  • Voucher Opportunity 3 (VO3) - Clean Energy Demonstration Project Siting/Permitting Support
  • Voucher Opportunity 4 (VO4) - Commercialization Support (for companies with a functional technology prototype)
  • Voucher Opportunity 5 (VO5) - Commercialization Support (for developers, including for-profit firms, that are working to commercialize a prototype that fits a specific technology vertical of interest for DOE)

The 10 Houston-area companies to receive funding, their voucher type and projects include:

  • Terradote Inc. with Big Blue Technologies Inc. (VO2): Full ISO-Compliant Life Cycle Assessment for Clean Energy Technologies
  • Solugen Inc. and Encina with ACTion Battery Technologies L.L.C. and Frontline Waste Holding LLC (Vo2): Barracuda Virtual Reactor Simulation, Validation and Testing
  • Flow Safe with Concept Group LLC and Precision Fluid Control (VO2): Durability Testing of Hydrogen Components, Materials, and Storage Systems
  • Percheron Power LLC (VO4): Fundraising Support
  • Capwell Services Inc. with Banyu Carbon Inc. (VO5): Field Testing Support for Validation of Novel Resource Sustainability Technologies
  • Syzygy Plasmonics with Ample Carbon PBC, Terraform Industries, Lydian Labs Inc. and Vycarb Inc. (VO5): Rapid Life Cycle Assessment for Carbon Management or Resource Sustainability Technologies
  • Solidec Inc. with GreenFire Energy (VO5): LCA Calculator Tool for Carbon Management or Resource Sustainability Technologies
  • Encino Environmental Services LLC with Wood Cache, Completion Corp and Carbon Lockdown (VO5): Realtime Above/Underground Gas Monitoring Reporting and Verification, Including Cloud Connectivity for Remote Sites
  • Mati Carbon PBC with Ebb Carbon Inc. (VO5): Community Benefits Assessment and Environmental Justice

Other Texas-based companies to receive funding included Molecular Rebar Design LLC and Talus Renewables from Austin, Deep Anchor Solutions from College Station, and ACTion Battery Technologies LLC from Wichita Falls.

Last October, the DOE also awarded the Houston area more than $2 million for projects that improve energy efficiency and infrastructure in the region.

In December, its Office of Clean Energy Demonstrations also selected a Houston power company for a commercial-scale carbon capture and storage project cost-sharing agreement.

The projects are among 16 other early-stage research projects at U.S. colleges and universities to receive a total of $17.4 million from the DOE's Office of Fossil Energy and Carbon Management. Photo courtesy of University of Houston

3 Houston energy projects land $17.4M in federal funding for early-stage research

grants granted

Three projects from the University of Houston have been awarded funds from the U.S. Department of Energy for research on decarbonization and emissions.

The projects are among 16 other early-stage research projects at U.S. colleges and universities to receive a total of $17.4 million from the DOE's Office of Fossil Energy and Carbon Management (FECM).

“These three projects show the relevance and quality of the research at UH and our commitment to making a meaningful impact by addressing society’s needs and challenges by doing critical work that impacts the real world,” Ramanan Krishnamoorti, vice president for energy and innovation at UH, says in a statement. “The success of these project could attract investment, create jobs, produce clean energy, save costs, reduce carbon emissions, and benefit not only the greater Houston area, but the Gulf Coast and beyond.”

The projects were selected under FECM’s University Training and Research program, which aims to support "research and development opportunities for traditionally underrepresented communities and tap into the innovative and diverse thinking of student researchers," according to an announcement from the DOE.

Here are the projects from UH and their funding amounts:

A Comprehensive Roadmap for Repurposing Offshore Infrastructure for Clean Energy Projects in the Gulf of Mexico, $749,992 — Led by Ram Seetharam, UH Energy program officer, this project looks at ways to prolong the life of platforms, wells and pipelines in the Gulf Coast and will create a plan "covering technical, social, and regulatory aspects, as well as available resources," according to UH.

Houston Hydrogen Transportation Pilot, $750,000— Led by Christine Ehlig-Economides, Hugh Roy and Lillie Cranz Cullen, and managed by Joe Powell, this project will demonstrate the potential for a hydrogen refueling pilot in Houston. The first phase will create a system to optimize hydrogen and the second will create a workforce training network. The project is in collaboration with Prairie View A&M University.

Synergizing Minority-Serving Institution Partnerships for Carbon-Negative Geologic Hydrogen Production, $1.5 million — This project is in collaboration with Stanford Doerr School of Sustainability and Texas Tech. The project will create a visiting scholars program for students from UH and TTU, who will spend one month per year at Stanford for three years. While in the program, students will focus on creating carbon-negative hydrogen from rocks beneath the Earth's surface. Kyung Jae Lee, associate professor in the Department of Petroleum Engineering at UH, is working alongside colleagues at TTU and Stanford on this project.

Other projects in the group come from the University of Texas at El Paso, New Mexico Institute of Mining and Technology, Tennessee State University, North Carolina Agricultural and Technical State University, Duke University and more.

Last year the DOE also awarded $2 million to Harris and Montgomery counties for projects that improve energy efficiency and infrastructure in the region. Click here to read about those projects.

The DOE also granted more than $10 million in funding to four carbon capture projects with ties to Houston last summer.

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This article originally ran on InnovationMap.

Sunnova's platform is expanding in Puerto Rico. Photo courtesy of

Houston solar company expands in Puerto Rico, receives DOE funding

island opportunities

A Houston renewable energy company has announced two initiatives that are hoping to provide more grid stability on the island of Puerto Rico.

Sunnova announced that it's expanding its Sunnova Sentient Virtual Power Plant platform. The company has also been selected by the United States Department of Energy’s Grid Deployment Office to be a part of a $440 million investment from the Puerto Rico Energy Resilience Fund.

Sunnova's VPP platform is expanding in Puerto Rico through a collaboration between the Sunnova Power Flex Program and LUMA's Customer Battery Energy Sharing program in Puerto Rico. This plan is "to transform the role of distributed solar and storage customers in enhancing grid stability during peak demand periods, all while offering them financial incentives for their participation," according to Sunnova's release.

Puerto Rican residents can opt into the Sunnova Flex Power Program and will be compensated for the power supplied by their batteries. According to Sunnova, a battery could earn up to $1,000 for this first pilot year.

“We are incredibly excited about the possibilities that our industry-leading VPP platform—delivered to our customers through our Sunnova Flex Power Program—holds for the people of Puerto Rico,” John Berger, CEO of Sunnova, says in the release. “As we continue to spearhead the transition towards a cleaner and more robust future, extending our VPP platform will not only help reshape the energy landscape in Puerto Rico but also empower our valued customers to play an integral role in bolstering grid stability. We eagerly anticipate the transformative impact this program will have on our customers and the Puerto Rican community at large.”

Sunnova has 52,000 solar and storage customers on the island and has installed storage to a capacity of 800 MWh.

“We're excited to collaborate with Sunnova on this important initiative, which signifies a major step in our ongoing efforts to enhance energy reliability for Puerto Rico. We're dedicated to achieving a more stable energy supply, reducing disruptions, and securing a resilient energy future, ultimately benefiting the people of Puerto Rico,” Jessica Laird, VP of Customer Experience at LUMA, says in the statement.

Sunnova's selection by the DOE Grid Deployment Office makes the company one of the eight to receive chunk of a $440 million commitment to install rooftop solar and batteries in PR.

Harris County was awarded $1.64 million, the largest total among the local governments. Photo via Getty Images

Houston-area counties land DOE funding for energy infrastructure projects

seeing green

The U.S. Department of Energy recently awarded more than $2 million to Harris and Montgomery counties for projects that improve energy efficiency and infrastructure in the region.

The funds come from the DOE's Energy Efficiency and Conservation Block Grant (EECBG) Program. Harris and Montgomery counties are among 28 state, local, and Tribal governments to have been awarded a total of $30 million through the initiative, according to a statement.

The grants were awarded to eight states, four cities, four counties and 12 smaller, rural communities.

“Our local governments are at the forefront of our clean energy revolution and are critical touchpoints with our nation’s communities creating clean, healthy and affordable communities,” U.S. Secretary of Energy Jennifer M. Granholm says in a statement. “With historic funding thanks to President Biden’s clean energy laws, more Americans will receive upgrades to their homes through residential energy efficiency rebates, expanded weatherization efforts, and electrification programs that will save them energy and increase their comfort.

"This funding will also invest in improving public spaces, giving more Americans across the country access to energy efficient technologies and clean energy infrastructure in their communities such as heat pumps, LED lights, solar energy, and EV charging stations,” she continues.

Harris County was awarded $1.64 million, the largest total among the local governments. It will be put toward for several projects:

  • Conducting community engagement with disadvantaged communities for climate justice planning
  • Performing site assessments for solar and storage on county properties in disadvantaged communities
  • Conducting recycling pilots at county facilities
  • Enhancing walking and bicycling to school as part of the Safe Routes to School plan
  • Deploying an off-grid, solar EV station on county property in a disadvantaged community in the greater-Houston area

Montgomery County was awarded $457,580 to replace 150 metal halide lights at a community sports field with LED lights and add wireless controls.

According to the DOE, more than $430 million in formula grant funding is available through the EECBG Program and another 2,700 governments and tribes are eligible for funds. Grants are slated to be awarded on a rolling basis as the department receives applications. The application deadline for eligible local governments and tribes has been extended to April 30, 2024.

Other states, local governments and tribes to recieve funding in this round include:

States

  • Alabama ($2,207,540)
  • Alaska ($1,627,450)
  • Idaho ($1,742,300)
  • Louisiana ($2,149,350)
  • Maine ($1,668,790)
  • Ohio ($3,130,030)
  • Rhode Island ($1,675,110)
  • Washington ($2,273,890)

Local governments

  • Bend, Oregon ($152,740)
  • Boston, Massachusetts ($659,990)
  • Los Angeles County, California ($1,344,700)
  • Minneapolis, Minnesota ($424,330)
  • Nashville, Tennessee ($644,440)
  • Wagoner County, Oklahoma ($76,900)

EECBG Program Competitive Awards

  • Albany, California ($200,000)
  • Cascade, Idaho ($200,000)
  • Decatur, Georgia ($400,000)
  • Decorah, Iowa ($1,100,000)
  • Durham County, North Carolina ($1,500,000)
  • Eagle County, Colorado ($1,400,000)
  • Exeter, New Hampshire ($200,000)
  • Kittery, Maine ($800,000)
  • Littleton, Massachusetts ($300,000)
  • MOWA Band of Choctaw Indians in Alabama ($1,100,000)
  • Nenana, Alaska ($900,000)
  • Peterborough, New Hampshire ($700,000) and Harrisville, NH

The funds add to the list for grants the federal government has doled out to Houston-area projects related to the energy transition in recent months.

Earlier in October, Granholm announced that the HyVelocity Hydrogen Hub would receive funding through the Bipartisan Infrastructure Law. The project, which connects more than 1,000 miles of hydrogen pipelines, 48 hydrogen production facilities and dozens of hydrogen end-use applications across Texas and Southwest Louisiana will receive up to $1.2 billion.

The DOE also granted more than $10 million in funding to four carbon capture projects with ties to Houston earlier this summer.

And in September, Rice University announced that it would host the Carbon Management Community Summit this fall, sponsored by the DOE, and in partnership with the city of Houston and climate change-focused multimedia company Climate Now. The event takes place next month.
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Houston energy company to invest $1B in U.S. electric grid manufacturing

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Hitachi Energy, whose U.S. headquarters is in Houston, has earmarked more than $1 billion to manufacture infrastructure for the U.S. electric grid, which is coping with greater power demand from data centers and AI platforms.

Of that sum, $457 million is dedicated to building a power transformer factory in Virginia. Hitachi Energy said it’ll be the largest facility of its kind in the U.S.

“Power transformers are a linchpin technology for a robust and reliable electric grid and winning the AI race. Bringing production of large power transformers to the U.S. is critical to building a strong domestic supply chain for the U.S. economy and reducing production bottlenecks, which is essential as demand for these transformers across the economy is surging,” said Andreas Schierenbeck, CEO of Switzerland-based Hitachi Energy, which generates revenue of about $16 billion.

The Hitachi announcement aligns with various priorities of the Trump administration. The White House is promoting more U.S.-based manufacturing, more power to accommodate data centers and AI, and greater use of U.S. energy resources.

“If we are going to win the AI race, reindustrialize, and keep the lights on, America is going to need a lot more reliable energy,” U.S. Energy Secretary Chris Wright said.

Texas still has its best solar days ahead of it, even as federal tax credit sunsets

Guest Column

If you follow energy policy, you already know that Congress repealed the 30% residential solar tax credit. This poses a significant challenge for continued growth in the market. It also provides an opportunity for the industry to grow in a smart, consumer-friendly way. That’s why in Texas, the story is what happens next: The state and the market are continuing to make going solar much simpler, better, and cheaper.

Policies are moving in the right direction. For example, starting this month, a bipartisan permitting reform takes effect that will cut red tape for home solar and batteries. It lets licensed third-party professionals review plans and perform inspections, requires agencies to post standardized rules and fees online, and allows homeowners to start work once those third-party approvals are submitted. It also shifts negligence liability to the third-party reviewer, thereby reducing municipal risk while accelerating safe, code-compliant installs. In plain English: fewer bottlenecks, faster installs, and lower “soft costs.”

As a result, Houston is already piloting the National Renewable Energy Lab’s free SolarAPP+ to auto-approve standard solar designs, which cuts roughly 12 days from typical timelines. Independent analyses estimate that these automated permitting rules could trim rooftop solar costs by thousands. In other words, even small, costless policy changes like this can save you almost as much money as the huge solar tax credit did, and these great reforms are happening all the time, and they make the process much more convenient and reliable.

While Texas is making solar simpler, it’s also helping consumers have a good experience when going solar. As of this month, Texas law now also requires solar salespeople to register with the Texas Department of Licensing and Regulation. The same bill standardizes contracts and provides for mandatory disclosures of upfront cost and financing terms. The whole solar industry benefits when customers have a good solar experience. Word of mouth is vital to keeping solar shining.

There's yet another pro-solar Texas law that's also going into effect this month: in addition to SB 1202 (streamlining solar permits) and SB 1036 (regulating solar sales tactics), the legislature is also supporting the dissemination of information about your options when going solar via SB 1697. You can read more about these three brand-new pro-solar state laws here.

The end of the solar tax credit is not the end of the solar industry. Far from it.

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Dori Wolf is Senior Texas Program Associate for Solar United Neighbors, a vendor and neutral nonprofit with more than 15 years helping people go solar. Their free Solar Help Desk walks you through the details. Also check out their Go Solar Guide and Solar Owner’s Manual.

Solar United Neighbors also helps you find the best retail electricity plan through its partnership with Texas Power Guide.

Sunnova assets officially sold as founder launches new Houston energy startup

solar shift

Solaris Assets has completed its acquisition of the majority of Sunnova Energy International’s residential solar assets. Houston-based Sunnova filed for Chapter 11 bankruptcy this summer after piling up billions of dollars in debt.

Meanwhile, Sunnova founder and former CEO John Berger has launched a Houston-based home energy services startup, Otovo USA, which just received more than $4 million in seed funding.

Solaris now owns Sunnova’s residential solar services platform and its solar generation and storage portfolio, along with leases, loans and power purchase agreements. Sunnova’s operations are being shifted to SunStrong Management, an Austin-based asset manager for the renewable energy sector.

“By bringing together SunStrong’s asset management expertise with Sunnova’s nationally scaled customer base, we are creating a stronger, more capable leader in the solar industry,” Brendon Merkley, CEO of SunStrong, said in a news release. “Our priority is to maintain the highest levels of service for customers as we expand our footprint as a premier solar asset servicer.”

In June, Sunnova sold its new-home business to homebuilder Lennar for $15.2 million and sold certain assets to investment firm Atlas SP Partners for $15 million.

As of December, Sunnova’s debt totaled nearly $10.7 billion, Reuters reported. Sunnova faced numerous challenges in its quest to survive, including higher interest rates, the reduction of solar incentives in California, and a shakeup in federal subsidies for renewable energy.

Sunnova filed for Chapter 11 bankruptcy in June. A month later, a bankruptcy judge approved the court-supervised sale of Sunnova. Solaris’ acquisition of Sunnova closed Sept. 3.

As SunStrong absorbs the bulk of Sunnova’s assets, Berger — who quit in March as Sunnova’s CEO — has formed a new business. He’s now the founder and CEO of Otovo USA, a partner of European residential power company Otovo.

Otovo USA offers solar power systems, solar batteries, standby generators, EV chargers, electric-load managers, and other power generation and management systems. Otovo’s AI-supported offerings are now available in Texas; the company plans to expand nationwide.

Otovo USA raised its seed funding from the EIC Rose Rock Venture Fund, which invests in energy startups.

“Otovo USA is here to help the millions of Americans with home energy services that are fed up with the complexities of warranties, juggling multiple vendors, and long repair times,” Berger said. The startup, he added, “is bringing customers what they really need: reliable power and a single partner accountable for keeping it up and running. It’s your power, backed by ours.”

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