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

power partners

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

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.

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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.

GE Verona joins Greentown Labs as a top-tier partner. Photo via gevernova.com

Greentown Labs names GE affiliate as latest top-level partner

new to the crew

Greentown Labs, dually located in Houston and Somerville, Massachusetts, has announced its latest Terawatt Partner, which is the climatetech incubator's highest-level partnership.

Greentown Labs announced this week that GE Vernova, a global energy company that focusing on moving the energy transition through "continuing to electrify the world," has joined its top tier of partners. Greentown has over 20 of these Terawatt Partners, and GE Verona joins the ranks of Chevron, Amazon, Aramco, Microsoft, Shell, and more.

“GE Vernova embodies what we’re looking for in a partner: energy transition expertise with a deep commitment and passion for innovation, collaboration, and decarbonization,” Greentown Labs CEO and President Kevin Knobloch says in a statement. “Equally important, the team at GE Vernova has a real sense of urgency to accelerate global decarbonization and is eager to engage with our community of climatetech startups—I can’t wait to see all that we’ll accomplish together.”

GE Vernova specializes in power, wind, and electrification while keeping decarbonization at the forefront of its business. The company opened its global headquarters in Cambridge, Massachusetts just down the street from where Greentown got its start in 2011 and only a few miles from the incubator today.

“I am thrilled to join as a new partner with Greentown Labs and look to support the climatetech ecosystem in many different ways,” GE Vernova CEO Scott Strazik says in the news release. “Whether it’s innovating new technologies, the industrialization of products, or leveraging our relationships globally, we are eager to collaborate with this unique and important group of entrepreneurs, innovators, and leaders.”

With the arrangement,Limor Spector, president of Ventures and Incubation at GE Vernova, will serve on the Industry Leadership Council.

Founded in 2022, GE Verona is expected to spin off from GE in the second quarter of next year.

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Houston companies scoop up $31 million in funds from DOE, EPA methane emissions program

fresh funds

The U.S. Department of Energy and the U.S. Environmental Protection Agency announced the selection of seven projects from Houston companies to receive funding through the Methane Emissions Reduction Program.

The projects are among 43 others nationwide, including 12 from Texas, that reduce, monitor, measure, and quantify methane emissions from the oil and gas sector. The DOE and EPA awarded $850 million in total through the program.

The Houston companies picked up $31.7 million in federal funding through the program in addition to more than $9.5 million in non-federal dollars.

“I’m excited about the opportunities these will create internally but even more so the creation of jobs and training opportunities for the communities in which we work,” Scott McCurdy, Encino Environmental Services CEO, said in a news release. His company received awards for two projects.

“These projects will allow us to further support and strengthen the U.S. Energy industry’s ability to deliver clean, reliable, and affordable energy globally,” he added.

The Houston-area awards included:

DaphneTech USA LLC

Total funding: $5.8 million (approximately $4.5 million in federal, $1.3 million in non-federal)

The award was granted for the company’s Daphne and Williams Methane Slip Abatement Plasma-Catalyst Scale-Up project. Daphne will study how its SlipPure technology, a novel exhaust gas cleaning system that abates methane and exhaust gas pollution from natural gas-fueled engines, can be economically viable across multiple engine types and operating conditions.

Baker Hughes Energy Transition LLC

Total funding: $7.47 million (approximately $6 million in federal, $1.5 million in non-federal)

The award was granted for the company’s Advancing Low Cost CH4 Emissions Reduction from Flares through Large Scale Deployment of Retrofittable and Adaptive Technology project. The project aims to develop a scalable, integrated methane emissions reduction system for flares based on optical gas imaging and estimation algorithms.

Encino Environmental Services

Total funding: $15.17 million (approximately $11 million in federal, $4.17 million in non-federal)

The award was granted for two projects. The Advanced Methane Reduction System: Integrating Infrared and Visual Imaging to Assess Net Heating Value at the Combustion Zone and Determine Combustion Efficiency to Enhance Flaring Performance project aims to develop and deploy an advanced continuous emissions monitoring system. It’s Advancing Methane Emissions Reduction through Innovative Technology project will develop and deploy a technology using sensors and composite materials to address emissions originating in storage tanks.

Envana Software Solutions

Total funding: $5.26 million (approximately $4.2 million in federal, $1 million in non-federal)

The award was granted for the company’s Leak Detection and Reduction Software to Identify Methane Emissions and Trigger Mitigation at Oil and Gas Production Facilities Based on SCADA Data project. It aims to improve its Recon software for monitoring methane emissions and develop partnerships with local universities and organizations.

Capwell Services Inc.

Total funding: $4.19 million (approximately $3.3 million in federal, $837,000 in non-federal)

The award was granted for its Methane Emissions Abatement Technology for Low-Flow and Intermittent Emission Sources project. It aims to to deploy and field-test a methane abatement unit and improve air quality and health outcomes for communities near production facilities and establish field technician internships for local residents.

Blue Sky Measurements

Total funding: $3.41 million (approximately $2.7 million in federal, $683,000 in non-federal)

The award was granted for its Field Validation of Novel Fixed Position Optical Sensor for Fugitive Methane Emission Detection Quantification and Location with Real-Time Notification for Rapid Mitigation project. It aims to field test an optical sensing technology at six well sites in the Permian Basin.

Southern Methodist University, The University of Texas at Austin, Texas A&M Engineering Experiment Station and Hyliion Inc. were other Texas-based organizations to earn awards. See the full list of projects here.

Texas university's 'WaterHub' will dramatically reduce water usage by 40%

Sustainable Move

A major advancement in sustainability is coming to one Texas university. A new UT WaterHub at the University of Texas at Austin will be the largest facility of its kind in the U.S. and will transform how the university manages its water resources.

It's designed to work with natural processes instead of against them for water savings of an estimated 40 percent. It's slated for completion in late 2027.

The university has had an active water recovery program since the 1980s. Still, water is becoming an increasing concern in Austin. According to Texas Living Waters, a coalition of conservation groups, Texas loses enough water annually to fill Lady Bird Lake roughly 89 times over.

As Austin continues to expand and face water shortages, the region's water supply faces increased pressure. The UT WaterHub plans to address this challenge by recycling water for campus energy operations, helping preserve water resources for both the university and local communities.

The 9,600-square-foot water treatment facility will use an innovative filtration approach. To reduce reliance on expensive machinery and chemicals, the system uses plants to naturally filter water and gravity to pull it in the direction it needs to go. Used water will be gathered from a new collection point near the Darrell K Royal Texas Memorial Stadium and transported to the WaterHub, located in the heart of the engineering district. The facility's design includes a greenhouse viewable to the public, serving as an interactive learning space.

Beyond water conservation, the facility is designed to protect the university against extreme weather events like winter storms. This new initiative will create a reliable backup water supply while decreasing university water usage, and will even reduce wastewater sent to the city by up to 70 percent.

H2O Innovation, UT’s collaborator in this project, specializes in water solutions, helping organizations manage their water efficiently.

"By combining cutting-edge technology with our innovative financing approach, we’re making it easier for organizations to adopt sustainable water practices that benefit both their bottom line and the environment, paving a step forward in water positivity,” said H2O Innovation president and CEO Frédéric Dugré in a press release.

The university expects significant cost savings with this project, since it won't have to spend as much on buying water from the city or paying fees to dispose of used water. Over the next several years, this could add up to millions of dollars.

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A version of this story originally appeared on our sister site, CultureMap Austin.

Report: Texas solar power, battery storage helped stabilize grid in summer 2024, but challenges remain

by the numbers

Research from the Federal Reserve Bank of Dallas shows that solar power and battery storage capacity helped stabilize Texas’ electric grid last summer.

Between June 1 and Aug. 31, solar power met nearly 25 percent of midday electricity demand within the Electric Reliability Council of Texas (ERCOT) power grid. Rising solar and battery output in ERCOT assisted Texans during a summer of triple-digit heat and record load demands, but the report fears that the state’s power load will be “pushed to its limits” soon.

The report examined how the grid performed during more demanding hours. At peak times, between 11 a.m. and 2 p.m. in the summer of 2024, solar output averaged nearly 17,000 megawatts compared with 12,000 megawatts during those hours in the previous year. Between 6 p.m. and 9 p.m., discharge from battery facilities averaged 714 megawatts in 2024 after averaging 238 megawatts for those hours in 2023. Solar and battery output have continued to grow since then, according to the report.

“Batteries made a meaningful contribution to what those shoulder periods look like and how much scarcity we get into during these peak events,” ERCOT CEO Pablo Vegas said at a board of directors conference call.

Increases in capacity from solar and battery-storage power in 2024 also eclipsed those of 2023. In 2023 ECOT added 4,570 megawatts of solar, compared to adding nearly 9,700 megawatts in 2024. Growth in battery storage capacity also increased from about 1,500 megawatts added in 2023 to more than 4,000 megawatts added in 2024. Natural gas capacity also saw increases while wind capacity dropped by about 50 percent.

Texas’ installation of utility-scale solar surpassed California’s in the spring of last year, and jumped from 1,900 megawatts in 2019 to over 20,000 megawatts in 2024 with solar meeting about 50 percent of Texas' peak power demand during some days.

While the numbers are encouraging, the report states that there could be future challenges, as more generating capacity will be required due to data center construction and broader electrification trends. The development of generating more capacity will rely on multiple factors like price signals and market conditions that invite more baseload and dispatchable generating capacity, which includes longer-duration batteries, and investment in power purchase agreements and other power arrangements by large-scale consumers, according to the report.

Additionally, peak demand during winter freezes presents challenges not seen in the summer. For example, in colder months, peak electricity demand often occurs in the early morning before solar energy is available, and it predicts that current battery storage may be insufficient to meet the demand. The analysis indicated a 50% chance of rolling outages during a cold snap similar to December 2022 and an 80% chance if conditions mirror the February 2021 deep freeze at the grid’s current state.

The report also claimed that ERCOT’s energy-only market design and new incentive structures, such as the Texas Energy Fund, do not appear to be enough to meet the predicted future magnitude and speed of load growth.

Read the full report here.

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