Engine No. 1 and GE Vernova have established a new Houston-based startup. Photo via Getty Images

Buoyed by a purchase agreement from Microsoft, Houston-based Joulent recently launched to build power plants that meet the electricity demands of AI data centers and other computing-heavy industries.

Joulent builds dedicated power-generating facilities that feed directly into data centers and other power-dependent facilities, eliminating the need for companies to siphon power from grids. Joulent’s plants combine generation, storage and smart controls in a modular, scalable setup, according to a news release.

Investment firm Engine No. 1 established Joulent in collaboration with energy technology company GE Vernova.

Joulent’s first project, the Project Kilby natural gas facility in West Texas, will be co-located with a Microsoft data center. It’ll deliver about 2.67 gigawatts of power under a 20-year deal between Microsoft and Energy Forge One, a subsidiary of Houston-based Chevron. Engine No. 1 and Chevron teamed up to build the plant.

GE Vernova will supply most of the plant’s power capacity, with additional capacity coming from Solar Turbines, a subsidiary of Irving-based construction and mining equipment manufacturer Caterpillar.

“Leadership in the AI era will be determined by who can deliver energy and compute the fastest, most reliably, and at the lowest cost,” Chris James, founder and CEO of Engine No. 1 and Joulent, said in a news release.

“By building new power-generating facilities, Joulent enables customers across industries to power the next chapter of American innovation, while reducing pressure on existing grids and maintaining affordability for ratepayers.”

Chevron will power the forthcoming Project Kilby using natural gas. Photo via Getty Images

Chevron inks 20-year deal to power massive Microsoft data center in West Texas

power deal

Chevron and Microsoft have signed a 20-year deal in which Chevron will provide natural-gas-fired power for a future West Texas data center, known as Project Kilby.

The proposed Microsoft data center could be one of the biggest in the U.S. and is expected to deliver 2.67 gigawatts of capacity. It will be built through a “phased, modular approach that enables incremental expansion over time,” according to Chevron.

Chevron expects the facility to be up and running by 2028, though the company won’t make a final investment decision on the project until later this year. The company is collaborating on Project Kilby with investment fund Engine No.1.

Project Kilby is projected to bring in $10 billion in state and local tax revenue and support 2,000 jobs, according to Chevron. The plant will use non-potable, brackish groundwater for power plant operations and aims to find new ways to reuse water produced by oil and gas operations.

The site will use selective catalytic reduction systems to reduce nitrogen oxide emissions and minimize noise and light impacts and will utilize other advanced air emissions control technologies. A majority of the generation will come from large turbines developed by Chevron partner GE Verona with additional capacity from Caterpillar’s solar turbines. The plant will be fed by natural gas from the Permian Basin.

“Chevron is uniquely positioned to deliver power to customers with certainty, speed and at a competitive cost, leveraging Permian natural gas and our proven execution capabilities,” Jeff Gustavson, Chevron president of new energies, said in a news release. “This project links Chevron’s traditional strengths to emerging demand, creating differentiated value for our shareholders and the communities where we operate.”

According to BloombergNEF, the U.S. is expected to increase its data center capacity to 77 gigawatts by 2030. Another report from Bloom Energy predicts Texas will see a 142 percent increase in its market share for data centers from 2025 to 2028.

“The rapid growth we’re experiencing in AI and cloud, driven by customer demand, requires energy infrastructure that can scale quickly and reliably,” Noelle Walsh, Microsoft president of cloud operations and innovation, added in the news release. “Our agreement with Chevron helps ensure we’ll have dedicated, large-scale power to support the evolution and reliability of advanced computers. Through this partnership, we’re delighted to grow with and become a deeper part of the West Texas community.”

Chevron was named No. 21 on the 2026 Fortune 500 list earlier this month.

A new joint venture will work on four projects supplying 5 gigawatts of power from combined-cycle power plants for the ERCOT and PJM Interconnection grids. Photo via Getty Images.

NRG Energy forms joint venture to build power plants for ERCOT and AI-driven demand

teaming up

Houston-based power provider NRG Energy Inc. has formed a joint venture with two other companies to meet escalating demand for electricity to fuel the rise of data centers and the evolution of generative AI.

NRG’s partners in the joint venture are GE Vernova, a provider of renewable energy equipment and services, and TIC – The Industrial Co., a subsidiary of construction and engineering company Kiewit.

“The growing demand for electricity in part due to GenAI and the buildup of data centers means we need to form new, innovative partnerships to quickly increase America’s dispatchable generation,” Robert Gaudette, head of NRG Business and Wholesale Operations, said in a news release. “Working together, these three industry leaders are committed to executing with speed and excellence to meet our customers’ generation needs.”

Initially, the joint venture will work on four projects supplying 5 gigawatts of power from combined-cycle power plants, which uses a combination of natural gas and steam turbines that produce additional electricity from natural gas waste. Electricity from these projects will be produced for power grids operated by the Electric Reliability Council of Texas (ERCOT) and PJM Interconnection. The projects are scheduled to come online from 2029 through 2032.

The joint venture says the model it’s developing for these four projects is “replicable and scalable,” with the potential for expansion across the U.S.

The company is also developing a new 721-megawatt natural gas combined-cycle unit at its Cedar Bayou plant in Baytown, Texas. Read more here.

Chevron, Engine No. 1 and GE Vernova will develop power plants that allow for the future integration of lower-carbon solutions to support AI-focused data centers. Photo via Getty Images

Chevron and partners to develop innovative power plants to support AI-focused data centers

power partners

Houston-based Chevron U.S.A. Inc., San Francisco investment firm Engine No. 1, and Boston electric service company GE Vernova have announced a partnership to create natural gas power plants in the United States. These plants support the increased demand for electricity at data centers, specifically those developing artificial intelligence solutions.

“The data centers needed to scale AI require massive amounts of 24/7 power. Meeting this demand is forecasted to require significant investment in power generation capacity, while managing carbon emissions and mitigating the risk of grid destabilization,” Chevron CEO Mike Wirth, shared in a LinkedIn post.

The companies say the plants, known as “power foundries,” are expected to deliver up to four gigawatts, equal to powering 3 million to 3.5 million U.S. homes, by the end of 2027, with possible project expansion. Their design will allow for the future integration of lower-carbon solutions, such as carbon capture and storage and renewable energy resources.

They are expected to leverage seven GE Vernova 7HA natural gas turbines, which will serve co-located data centers in the Southeast, Midwest and West. The exact locations have yet to be specified.

“Energy is the key to America’s AI dominance, “ Chris James, founder and chief investment officer of investment firm Engine No. 1, said in a news release. “By using abundant domestic natural gas to generate electricity directly connected to data centers, we can secure AI leadership, drive productivity gains across our economy and restore America’s standing as an industrial superpower. This partnership with Chevron and GE Vernova addresses the biggest energy challenge we face.”

According to the companies, the projects offer cost-effective and scalable solutions for growth in electrical demand while avoiding burdening the existing electrical grid. The companies plan to also use the foundries to sell surplus power to the U.S. power grid in the future.

The nonprofit climatetech incubator with locations in Houston and Somerville, Massachusetts, has a roster of over 80 corporates that provide funding, pilot opportunities, mentorship, and more. Photo via GreentownLabs.com

Greentown Labs names newest corporate partners

supporting startups

Greentown Labs has accumulated several new corporate partners in the past year.

The nonprofit climatetech incubator with locations in Houston and Somerville, Massachusetts, has a roster of over 80 corporates that provide funding, pilot opportunities, mentorship, and more.

In March, Ecopetrol joined Greentown as a Terawatt Partner, the highest level partner for the incubator. The company, which the Colombian government holds a majority ownership stake in, has integrated business across the hydrocarbon value chain, as well as low emission solutions and energy transmission. The company followed TotalEnergies, which joined at the Terawatt level, in January, and GE Vernova, a global energy company, which was announced as a partner in November.

Greentown's other new Terrawatt Partners include sustainable building solutions company Holcim and Boston Consulting Group, which helped the organization enhance its strategy for the future.

"As part of the partnership, BCG guided Greentown through a mission, vision, and strategy refresh aimed at maximizing the nonprofit incubator’s impact over the next several years," reads the Greentown Labs news release.

These are the other new additions to Greentown's corporate roster at the other levels:

  • Cell Signaling Technology (Gigawatt Partner), a life science company founded, owned, and led by active research scientists
  • SLB (Gigawatt Partner), a global technology company focused on innovating oil and gas, delivering digital at scale, decarbonizing industries, and developing and scaling new energy systems that accelerate the energy transition
  • Embraer-X (Megawatt Partner), the disruptive innovation company of Embraer, the world’s third-largest aircraft manufacturer
  • Koppers (Megawatt Partner), an integrated global provider of treated-wood products, wood-treatment chemicals, and carbon compounds
  • Re:Build Manufacturing (Megawatt Partner), a family of design, engineering, and manufacturing businesses across the United States whose combined experience creates an industrial powerhouse greater than the sum of its parts
GE Vernova and Pattern Energy, two energy transition companies with Houston ties, are teaming up for a historic wind project. Photo via ge.com

GE business to fill order for turbines to power Western Hemisphere's largest wind project

winds in the west

A business to be spun off by General Electric will build hundreds of turbines for what will be the largest wind project in the Western Hemisphere, part of a massive equipment order and long-term service agreement with the global renewable-energy giant Pattern Energy.

GE Vernova, which recently became a high-level partner of Boston and Houston-based Greentown Labs, announced the agreement Tuesday, saying it is the largest onshore wind turbine order received by the company, both in quantity and in the amount of electricity that the 674 turbines will eventually generate when the SunZia Wind Project comes online in 2026.

GE Vernova will tap its factory in Pensacola, Florida, for the large order, as well as tower manufacturing operations in New Mexico, Colorado, and Texas. Overall, 15 suppliers are on board for providing the necessary parts to make each turbine.

Construction already is underway on the SunZia wind farm and an associated multibillion-dollar transmission line that will funnel power to populated markets in the western United States. Pattern Energy, which has a Houston office, just weeks ago announced that it had closed on $11 billion in financing for the projects.

Backers see SunZia — described as an energy infrastructure undertaking larger than that of the Hoover Dam — as a pivotal project. The venture has attracted significant financial capital and stands to boost the percentage of the nation's electricity that comes from renewable sources amid escalating state and federal energy mandates.

Still, some Native American tribes and environmentalists worry about the location of a 50-mile (80-kilometer) segment of the transmission line where it will pass through Arizona's San Pedro Valley. The federal government already had approved the siting, but tribal leaders said there should have been more consultation.

In December, the U.S. Energy Department reported that the private sector over the past three years has announced investments of more than $180 billion in new or expanded clean energy manufacturing projects across the nation, including spending on development of larger, higher capacity wind turbines. GE has been among the companies to take advantage of tax credits included in the federal Inflation Reduction Act.

However, after years of record growth, the industry group American Clean Power expects less land-based wind to be added in the U.S. by year’s end — about enough to power 2.7 million to 3 million homes.

While companies are taking advantage of government incentives now, it can take years to bring projects online, the industry group said.

The SunZia Wind Project will span three counties in rural New Mexico. Crews already are constructing the concrete platforms that will support the turbines, and developers expect the first turbines to rise this autumn.

Pattern Energy CEO Hunter Armistead said the project will serve as a backbone for a cleaner, more reliable grid for customers across the western U.S. The company already has signed long-term power purchase agreements with Shell Energy North America and the University of California for a portion of the electricity that will be generated.

“Construction is in full swing on SunZia, using American-made turbine components and creating thousands of good-paying new jobs — a big win for the growing clean energy economy,” Armistead said in a statement.

Vic Abate, president and CEO of the company's wind business, called the venture historic.

“This project demonstrates GE Vernova’s ability to deliver on our workhorse strategy in onshore wind — producing fewer variants in large quantities at scale to drive quality and reliability across the fleet for our customers," he said in a statement.

In all, the company has more than 55,000 turbines installed worldwide.

The company has been working with Pattern Energy for the past 18 months on site layouts that are designed to maximize the performance of the turbines in central New Mexico and to ensure the supply chain can keep up with manufacturing demands.

GE Vernova consultants also have been working on interconnection with the transmission line, and the company's financial arm provided a tax equity loan commitment that helped to solidify financing for the project.

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Houston's KBR tapped to provide tech for first SAF plant in Kazakhstan

clean deals

Houston-based engineering and technology firm KBR Inc. has been tapped to provide technology for Kazakhstan's first sustainable aviation fuel (SAF) production plant.

KazMunayGas-Aero LLP (KMG-Aero), a subsidiary of Kazakhstan’s national oil and gas company KazMunayGas, and KazFoodProducts awarded the contract to KBR for the project. The plant will use the alcohol-to-jet (AtJ) process for producing aviation fuel and aims to support President Kassym-Jomart Kemeluly Tokayev’s goal of boosting Kazakhstan's profile as a global aviation player, according to a news release from KBR.

"We are honored to support KMG-Aero and KFP in advancing the national commitment to reduce greenhouse gas emissions, recognizing the pivotal role of aviation decarbonization in achieving these strategic objectives,” Jay Ibrahim, president of KBR Sustainable Technology Solutions, said in the release.

KBR will provide its PureSAF technology and engineering design for the project. Invented and developed by Swedish Biofuels AB, the PureSAF tech will be used to convert alcohol-based feedstocks into SAF. The PureSAF Technology can process multiple feedstocks—like bioethanol, syngas, carbon dioxide and hydrogen—and convert them to SAF, diesel and gasoline, according to KBR.

"KBR’s PureSAF is a feed-flexible, bankable technology that is designed to deliver high SAF yields and supports the project across the full lifecycle,” Ibrahim added in the release. “We look forward to closely collaborating and supporting the successful execution of this landmark SAF project.”

Earlier this summer, KBR was also chosen to provide technology for what’s expected to be Asia's first commercial-scale ethanol-to-jet (SAF) plant. The plant has a planned production capacity of up to 100,000 tons of SAF per year.

In addition to the SAF projects, KBR also announced this month that it has been selected by ORNX Green Hydrogen to provide proprietary ammonia technologies for a low-cost green ammonia project in Morocco.

The commitments come as KBR shifts its focus solely toward sustainability technology and services. The company is in the process of spinning off its Mission Technology Solutions business, which KBR recently announced will be named Trinzic. The remaining company, "New KBR," will serve the ammonia and syngas, chemical and petrochemicals, clean refining and circular economy markets.

Army to build nuclear microreactors at 5 U.S. bases, including Texas

Nuclear News

The U.S. Army announced Wednesday that it plans to add nuclear microreactors at five military bases from New York to Texas as a reliable source of energy independent of the commercial electric grid.

The announcement comes as the Trump administration pushes hard to develop the next generation of nuclear power, including billions in loans for large nuclear reactors to meet skyrocketing power demand from data centers and a pilot program to boost advanced reactor designs and projects for military and civilian use. No nuclear microreactors are supplying power to the commercial electric grid in the United States today.

Five companies selected by the Army will be awarded up to $2.2 billion in total over five years to own, construct and operate the microreactors, if they hit set milestones along the way for their performance. The Army expects that more than 20 nuclear microreactors will be built and operated.

Army and industry officials say microreactors offer a resilient power source for critical infrastructure at military installations in case the grid fails. Reactors can run for years without refueling.

Army Secretary Dan Driscoll said the awards will accelerate the military’s ability “to deliver safe, reliable baseload power directly to our installations. We are building the energy resilience necessary to project combat power globally, without relying on potentially vulnerable external grids,” he said.

The grants are part of the Army's “Janus Program” launched last year to deliver next-generation nuclear energy. Officials hope to push nuclear development forward so that advanced reactor designs move beyond experiments and prototypes to provide power for years to come. This will be the “spear tip,” said Jeff Waksman, principal deputy assistant secretary of the Army for installations, energy and environment.

“That is the transition that we are trying to effect here,” he said on a call with reporters Wednesday. “These are not meant to be Army-specific designs.”

Critics of building more nuclear reactors say they’re too expensive and riskier than other energy sources. The Army program is using the military's “deep pockets to provide a hidden subsidy” to nuclear companies that can't find private-sector customers for their hypothetical and uneconomical reactors, said Alan J. Kuperman, associate professor at the Lyndon B. Johnson School of Public Affairs at the University of Texas at Austin and coordinator of the Nuclear Proliferation Prevention Project.

The reactors will be licensed by the Army, rather than the U.S. Nuclear Regulatory Commission, which licenses commercial nuclear reactors. Kuperman said it's “a dangerous scam on many levels.”

Waksman said these reactors will shut down safely in case of a failure, they're small and the Army wouldn't add them to installations without being certain they are safe. He said the Army is working on a deal with the Energy Department to remove radioactive waste, and there won't be any long-term storage on these installations.

The Army is working to align its regulatory processes as much as possible, Waksman said, so that companies won’t need major changes to their designs to be later licensed by the NRC. Along with federal funding, the Army expects billions of dollars in private capital investment.

Army leads the military’s adoption of nuclear energy

President Donald Trump signed executive orders in May 2025 to speed up the development of nuclear power. The Army was tasked with ensuring that an advanced reactor would start operating at a domestic military installation no later than Sept. 30, 2028. The Janus program is named for the ancient Roman god of transitions.

Officials know that delivering nuclear power to a military base will be a challenge, so they picked five companies in case one or more fail, Waksman said. The selected companies are: Antares Nuclear at Fort Bragg in North Carolina; BWXT at Fort Campbell in Kentucky; General Atomics Electromagnetic Systems at Fort Hood in Texas; Radiant Industries at Fort Benning in Georgia; and Westinghouse Government Services at Fort Drum in New York.

Senate Minority Leader Chuck Schumer asked the Army to select Fort Drum. The critical missions Fort Drum supports require secure power generation, the New York Democrat said.

The military installations will remain connected to the grid. The reactors would not completely power them. Each reactor will provide between 1 megawatt to 20 megawatts of power, depending on the company's design. Major bases use as much power as a small city. Antares and Radiant are planning to deliver their reactors in three-packs, Waksman said.

The Army now uses diesel as a primary backup for critical infrastructure. But in a conflict, Waksman said, the Army may not be able to move fossil fuels easily wherever it needs them.

“That makes nuclear energy just a natural game changer,” he said. “It makes sense for the Army to take the lead here.”

A reactor at Fort Belvoir in Virginia, completed in 1957, was the first nuclear power reactor to provide electricity to a commercial power grid in the United States for an extended period, according to the U.S. Army Corps of Engineers.

Companies say this will accelerate US nuclear development

California-based Antares reached a crucial milestone under the U.S. pilot program that could allow it to produce electricity at Idaho National Lab next year. The company said the Army's announcement extends its momentum. Westinghouse Government Services said it’s proud to support the Army’s efforts to strengthen energy security and innovate.

Tori Shivanandan, president and chief operating officer of California-based Radiant, said the Army’s $750 million award “shows confidence in Radiant’s product and ability to manufacture, deploy and safely operate nuclear microreactors for the American military.” The Janus program “will build a stronger and more resilient America,” she said.

General Atomics Electromagnetic Systems said its reactor is designed to operate in remote, off-grid and extreme environments for 40 years. It said it will draw on more than 70 years of nuclear expertise to provide safe, dependable and independent power for the military.

Rex Geveden, BWXT's president and chief executive officer, said, “As we commence work on the Janus program, we are delivering the nation’s most credible and reliable path to deployable nuclear power.”

Energy giant Shell lists Houston HQ for sale for $325 million

asset offload

Energy giant Shell has put its U.S. headquarters in Houston’s Energy Corridor on the market and is exploring the sale of its U.S. chemical business.

Green Street News reported Shell just listed its longtime Energy Corridor campus at 150 N. Dairy Ashford Road. The asking price is $325 million, The Real Deal reported. Shell plans to lease back half of the nearly 1.5 million-square-foot Woodcreek campus for 15 years.

A sale-leaseback deal could transform the 43.6-acre campus into a multitenant hub, CoStar News reported.

“Houston is a critical hub for Shell globally and the headquarters of our U.S. businesses,” a Shell spokesperson told the Houston Business Journal. “We remain committed to Houston and are evaluating opportunities to optimize our Woodcreek campus as part of our ongoing review of workplace needs while maintaining a strong presence in the city.”

Shell occupied its first building at the West Houston campus in 1980. The company employs more than 6,000 people in Texas.

Shell is one of the highest-profile businesses occupying space in the Energy Corridor. It’s home to 67,000 workers, more than 27 million square feet of office and mixed-use space, and 3.8 million square feet of retail and restaurant space.

Shell considers $8B sale of chemical business

As the company seeks to unload its Woodcreek campus, The Financial Times reported Shell is looking into selling its U.S. chemical business. The price tag: $8 billion.

Potential buyers include Spring-based ExxonMobil and Houston-based LyondellBasell.

Shell operates four chemical plants in Texas, Louisiana and Pennsylvania, producing an array of chemicals for use in plastics, detergents and pharmaceuticals.

Shell CEO Wael Sawan said last year that the company had spent $45 billion in capital “that is underperforming for us,” split between its chemical business and renewable energy arm.

Shell also agreed to sell its solar and wind power business in India this summer. Read more here.