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Houston clean energy storage facility goes online to power ERCOT grid

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Jupiter Power's Callisto I is up and running. Photo courtesy of jupiterpower.io

A new battery energy storage facility in Houston is officially up and running to power the ERCOT grid with a supply of reliable, zero emissions power.

Jupiter Power announced the commercial operations launch of its 400-megawatt-hour battery facility, Callisto I, in central Houston on the site of the former HL&P H.O. Clarke fossil fuel power plant.

"Jupiter couldn't be prouder about bringing the Callisto I project online," Andy Bowman, CEO of Jupiter Power, says in a news release. "This project responds to lawmakers' calls to increase affordable and dispatchable new generation in an area where people need more power. Callisto I is the first energy storage project at this scale in the City of Houston and will help meet Houston's growing power needs while also increasing resiliency from extreme weather events."

The new project is Jupiter Power's ninth project to deliver energy storage to ERCOT — bringing its total ERCOT fleet to 1,375-megawatt-hour capacity — but its the first in the Houston area. The company is currently developing over 11,000 megawatts of projects across the country. Founded in 2017, Jupiter Power is headquartered in Austin and has offices in Houston and Chicago.

"The announcement of Jupiter Power's Callisto I Energy Storage project is significant and exciting for the region, as it's the first large-scale transmission-connected energy storage project in the City of Houston," Jane Stricker, senior vice president at the Greater Houston Partnership and executive director at the Houston Energy Transition Initiative, adds. "This critical project will help address peak power demand and is another great example of our region's leadership in scaling and deploying impactful solutions for an all the above energy future."

Among the company's financial backers is Houston-based EnCap Energy Transition, which invested in Jupiter Power via its Fund II.

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EnCap is ready to deploy growth capital to advance the energy transition. Photo via Getty Images

Houston energy transition growth capital firm closes $1.5B fund

A Houston-based energy transition-focused growth capital firm announced the close of its second fund to the tune of $1.5 billion.

EnCap Energy Transition's Fund II, or EETF II, was created to invest in solutions to decarbonize the power industry, and invest in low carbon fuels and carbon management.This second energy transition fund follows EnCap Energy Transition Fund I, a $1.2 billion fund that deployed capital to seven material portfolio company investments and four fund realizations with Broad Reach Power, Jupiter Power, Triple Oak, and Paloma Solar & Wind.

Previously, the company made investment commitments to five portfolio companies through EETF II, including Bildmore Renewables, Linea Energy, Parliament Solar, Power Transitions, and Arbor Renewable Gas. With the Bildmore arm, the EnCap fund aims to fuel development of renewable energy projects that can’t attract traditional tax equity financing.

EnCap expects to have 8-10 portfolio companies in EETF II in total.

"The EnCap Energy Transition team is proud to have raised a sizeable pool of capital to continue to invest in the opportunity created by the shift to a lower-carbon energy system,” EnCap Energy Transition Managing Partner Jim Hughes says in a news release.

“We greatly appreciate the strong support from our existing investor base and are pleased to have added a number of new, high-quality investors, both domestically and internationally," he continues. "Since our inception in 2019, we now manage approximately $2.7 billion of capital commitments to invest in decarbonization and are excited for the opportunities ahead of us."

Recently,EnCap was part of a deal in the battery energy storage business carrying an equity value of more than $1 billion. Engie purchased the majority of a startup . Broad Reach’s battery storage business from EnCap Energy Transition Fund I. Broad Reach launched in 2019 with backing from EnCap.

“We continue to believe all sources of energy are needed to support the world’s growing energy needs and that our Energy Transition Team will build off the significant success achieved to date,” said EnCap Managing Partner Jason DeLorenzo in a news release.

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This article originally ran on InnovationMap.

Bildmore expects to invest in 10 to 15 third-party, utility-scale clean energy projects each year. Photo via Bildmore.com

Houston renewables developer launches platform to invest in energy transition projects

new in Hou

Houston-based EnCap Energy Transition Fund has launched a platform that will take minority equity stakes in battery storage systems, solar energy systems, and other energy transition projects in the U.S.

With its new Bildmore arm, the EnCap fund aims to fuel development of renewable energy projects that can’t attract traditional tax equity financing. Bildmore expects to invest in 10 to 15 third-party, utility-scale clean energy projects each year.

Bildmore seeks to capitalize on clean energy incentives tucked into the federal Inflation Reduction Act of 2022, including the ability of projects to sell tax credits. Specifically, the platform says it hopes to address “a chronic short supply” of tax equity deals due to heightened demand triggered by the inflation reduction law.

EnCap is no stranger to utility-scale solar power and battery storage systems. The fund backs Houston-based Broad Reach Power and Austin-based Jupiter Power, two of the largest players in the U.S. market for battery storage.

David Haug leads Bildmore as its CEO. He is co-founder and senior managing director of Houston-based Arctas Capital Group, which invests in energy infrastructure projects.

“Bildmore will focus on … battery storage and solar projects, particularly those which have chosen to leave all or part of their energy output available for ‘merchant’ sale rather than be sold under long-term contracts,” Haug says in a news release. “We want to help those development teams lacking the deep balance sheets typically required by tax equity providers.”

EnCap Investments, sponsor of the EnCap Energy Transition Fund, manages capital from more than 350 U.S. and international investors. Since its founding in 2019, EnCap Investments has raised 25 institutional investment funds totaling about $41 billion to support independent energy businesses in the U.S.

Broad Reach Power's battery storage assets piqued a French company's interest. Photo via broadreachpower.com

French company to acquire Houston-based battery storage startup in $1B deal

M&A Moves

A French utility company is buying the bulk of Houston-based Broad Reach Power’s battery energy storage business in a deal carrying an equity value of more than $1 billion.

Engie, has agreed to purchase the majority of the startup’s battery storage business from EnCap Energy Transition Fund I and three investment partners — New York City-based Yorktown Partners, Switzerland-based Mercuria Energy, and New York City-based Apollo Infrastructure Funds.

“This acquisition is fully in line with Engie’s strategy: It will contribute to the development of a low-carbon, affordable, and resilient energy system where flexible assets will play a critical role alongside renewables,” says Catherine MacGregor, the utility’s CEO.

Broad Reach launched in 2019 with backing from EnCap Energy Transition, an arm of Houston-based private equity firm EnCap Investments. Apollo Global Management, an asset manager that controls Apollo Infrastructure Funds, bought a 50 percent stake in Broad Reach in 2021.

The deal includes 350 megawatts of grid-scale battery assets that already are operating and 880 megawatts of assets under construction, primarily in the territory served by the Electric Reliability Council of Texas (ERCOT). It also includes a 1.7-gigawatt pipeline of battery storage projects that are in the advanced stage of development and a significant pipeline of early-stage projects.

In July, Broad Reach said it had lined up $435 million in credit facilities to support the 880 megawatts’ worth of systems under construction in Texas and California.

The Broad Reach acquisition does not include the company’s 1.8-gigawatt portfolio of solar and wind power projects, or its four gigawatt-hours’ worth of battery storage in the Mountain West.

The deal is expected to close in the fourth quarter of this year. The purchase price wasn’t disclosed, but the Bloomberg news service reports the deal will cause Engie to “take a $1.6 billion hit” to it net debt.

Shawn Cumberland, managing partner of EnCap and chairman of Broad Reach, calls Broad Reach “the top battery storage player in the U.S. market.” And Corinne Still, an infrastructure partner at Apollo, refers to Broad Reach as “the leading and most innovative” battery energy storage operator in North America.

“It has been a terrific honor and pleasure to be part of the rapid growth of the U.S. energy storage sector from the very beginning and see our company grow into one of the top developers,” says Doug Moorehead, founder and COO of Broad Reach.

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Houston researchers propose model to scale e-waste recycling

critical research

The “missing link” in critical minerals may have been in our junk drawers all along, according to new research from the University of Houston.

Jian Shi, an associate professor in the UH Cullen College of Engineering, and his team have unveiled a new supply chain model that aims to make e-waste economically viable and could help make large-scale recycling possible.

Shi, along with professor Kailai Wang and graduate researcher Chuyue Wang, published the work in a recent issue of Nature. Their study outlines how gold, lithium and cobalt from discarded electronics can be kept circulating in the U.S. through the process of “urban mining.” It was supported by the U.S. Department of Energy’s Office of Energy Efficiency and Renewable Energy (EERE) through the Vehicle Technologies Office.

The team’s research found that e-waste is the fastest-growing solid waste stream in the world. When waste from smartphones or tablets is left unmanaged, the devices can leak hazardous waste and pose significant fire risks due to aging batteries. Additionally, when they are shipped off to foreign landfills, the U.S. loses the potential to recycle or reuse the critical minerals left inside.

“A lot of people have iPads or old iPhones sitting in their drawers right now, and that’s a waste of a critical resource,” Shi said in a news release. “Urban mining allows us to extract the same high-value materials found in traditional mines without the environmental destruction. More importantly, it helps secure our domestic supply chain for the technologies of tomorrow.”

According to UH, recycling e-waste has not succeeded in the U.S. due to a fragmented recycling system, in which manufacturers, collectors and recyclers operate separately, driving up costs.

The UH team's research looks to change that.

In the study, the researchers modeled streamlined recycling efforts by mapping the interactions between manufacturers and independent recycling markets. Their dual-channel closed-loop supply chain (CLSC) model identified how these players can transition from competitors to partners, which can distribute profits more equitably and make recycling efforts more financially attractive.

According to UH, the research has particular significance due to the growing demand for electronic vehicles and their batteries.

“We can improve the performance of the entire recycling ecosystem and make the profit distribution more balanced,” Wang said in the release. “This ensures that the materials we need for EVs and advanced electronics stay right here in the U.S.”

“By making recycling work at scale, we aren’t just cleaning up waste,” Shi added. “We’re building a foundation that benefits both our national security and our economy.”

1PointFive signs latest deal, shares update on $1.3B carbon removal project

DAC deal

Houston-based 1PointFive, a subsidiary of Occidental Petroleum Corp., has secured another buyer of carbon dioxide removal credits for its $1.3 billion STRATOS project as it moves toward operation.

Bain & Company, a Boston-based consulting firm, has agreed to purchase 9,000 metric tons of carbon dioxide removal (CDR) credits from the direct air capture (DAC) facility over three years, according to a news release. DAC technology pulls CO2 from the air at any location, not just where carbon dioxide is emitted.

The deal is Bain's first purchase of DAC removal credits. The company has developed a program that helps clients purchase carbon credits from a range of carbon-removal technologies.

"We are proud to partner with 1PointFive and add them to our portfolio of engineered carbon removal technologies," Sam Israelit, Bain’s chief sustainability officer, said in the news release. "Their track record for developing DAC technology, coupled with their deep understanding of what it takes to deliver large-scale infrastructure projects, uniquely positions them to be a leader in this emerging segment.”

“We believe this agreement demonstrates continued momentum for the solution while supporting the development of vital domestic infrastructure,” Anthony Cottone, president and general manager of 1PointFive, added in the release.

Bain joins others like Microsoft, Amazon, AT&T, Airbus, the Houston Astros and the Houston Texans that have agreed to buy CDR credits from STRATOS.

The Texas-based STRATOS project is being developed through a joint venture with investment manager BlackRock and is designed to capture up to 500,000 metric tons of CO2 per year. The U.S Environmental Protection Agency approved Class VI permits for the project last year.

1PointFive says STRATOS is "progressing through start-up activities." The company shared in a LinkedIn post that Phase 1 of the project is expected to go online in Q2, with Phase 2 ramping up through the remainder of 2026.

Houston researcher develops efficient method to cool AI data centers

cool findings

A University of Houston professor has developed a new cooling method that can remove heat at least three times more effectively from AI data centers than current technologies.

Hadi Ghasemi, a distinguished professor of Mechanical & Aerospace Engineering at UH, published his findings in two articles in the International Journal of Heat and Mass Transfer. The findings solve a critical issue in the growing AI sector, according to UH.

High-powered AI data centers generate huge amounts of heat due to the GPU and operating systems they use with extreme power densities, which introduce complex thermal challenges. Traditionally, cooling methods, like microchannels, which use flow and spray cooling, have had limitations when exposed to extreme heat flux, according to UH.

Ghasemi’s research, however, found a more effective way to design thin-film evaporation structures to release heat from data centers and electronics at record performance.

Ghasem’s solution coupled topology optimization and AI modeling to determine the best shapes for thin film efficiency, ultimately landing on a branch-like structure—resembling a tree.

The model found that the “branches” needed to be about 50 percent solid and 50 percent empty space for optimum efficiency, and that they could sustain high heat fluxes with minimal thermal resistance.

“These structures could achieve high critical heat flux at much lower superheat compared to traditionally studied structures,” Ghasemi said in a news release. “The new structures can remove heat without having to get as hot as previous removal systems.

Ghasemi’s doctoral candidates, Amirmohammad Jahanbakhsh and Saber Badkoobeh Hezave, also worked on the project. The team believes their results show the impact of a physics-aware, AI design and can help ensure reliability, longevity and stability of AI data centers.

“Beyond achieving record performance, these new findings provide fundamental insight into the governing heat-transfer physics and establishes a rational pathway toward even higher thermal dissipation capacities,” Ghasemi added in the release

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