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Houston company secures $100M for 'world’s largest geothermal energy plant'

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Fervo Energy received $100 million loan for its Utah Cape Station project. Photo via fervoenergy.com

Houston-based geothermal energy company Fervo Energy has secured a $100 million bridge loan for the first phase of its ongoing project in Utah.

The loan came from an affiliate of Irvington, New York-based X-Caliber Rural Capital. Proceeds will support construction of Fervo’s Cape Station project, which is being touted as the world’s largest geothermal energy plant.

The first phase of Cape Station, which is on track to generate 90 megawatts of renewable energy, is expected to be completed in June 2026. Ultimately, the plant is supposed to supply 400 megawatts of clean energy by 2028 for customers in California.

“Helping this significant project advance and grow in rural America is a true testament to how investing in communities and businesses not only has local influence, but can have a global, long-lasting impact by promoting sustainability and stimulating rural economies,” Jordan Blanchard, co-founder of X-Caliber Rural Capital, says in a news release.

X-Caliber Rural Capital is an affiliate of commercial real estate financing company X-Caliber Capital Holdings.

Fervo says its drilling operations Utah’s Cape Station show a 70 percent reduction in drilling times, paving the way for advancement of its geothermal energy system.

Tim Latimer, co-founder and CEO of Fervo, says his company’s drilling advancements, purchase deals, transmission rights, permit approvals, and equipment acquisitions make Fervo “an ideal candidate” for debt financing. In May, Latimer joined the Houston Innovators Podcast to discuss the company's growth and latest project.

With a new office in downtown Houston, Fervo recently signed up one of the country’s largest utilities as a new customer and expanded its collaboration with Google.

To date, Fervo has raised $531 million in venture capital funding, per Crunchbase data.

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A new program at Rice University will educate recent graduates or returning learners on key opportunities within energy transition. Photo via Rice

Rice University introduces new program for energy transition, sustainability

future of energy

A Houston university has committed to preparing the workforce for the future of energy with its newest program.

Rice University announced plans to launch the Master of Energy Transition and Sustainability, or METS, in the fall. The 31 credit-hour program, which is a joint initiative between Rice's George R. Brown School of Engineering and the Wiess School of Natural Sciences, "will train graduates to face emergent challenges in the energy sector and drive innovation in sustainability across a wide range of domains from technology to economics and policy," according to the university.

“We believe that METS graduates will emerge as leaders and innovators in the energy industry, equipped with the skills and knowledge to drive sustainable solutions,” Rice President Reginald DesRoches says in the release. “Together we can shape a brighter, more resilient and cleaner future for generations to come.”

Some of the focus points of the program will be geothermal, hydrogen, and critical minerals recovery. Additionally, there will be education around new technologies within traditional oil and gas industry, like carbon capture and sequestration and subsurface storage.

“We are excited to welcome the inaugural cohort of METS students in the fall of 2024,” Thomas Killian, dean of the Wiess School of Natural Sciences and a professor of physics and astronomy, says in the release. “This program offers a unique opportunity for students to delve into cutting-edge research, tackle real-world challenges and make a meaningful impact on the future of energy.”

The new initiative is just the latest stage in Rice's relationship with the energy industry.

“This is an important initiative for Rice that is very much aligned with the university’s long-term commitment to tackle urgent generational challenges, not only in terms of research — we are well positioned to make significant contributions on that front — but also in terms of education,” says Michael Wong, the Tina and Sunit Patel Professor in Molecular Nanotechnology, chair and professor of chemical and biomolecular engineering and a professor of chemistry, materials science and nanotechnology and of civil and environmental engineering. “We want prospective students to know that they can confidently learn the concepts and tools they need to thrive as sustainability and energy transition experts and thought leaders.”

GA Drilling opened its Houston office in 2013 to tap into the region’s oil and gas industry. Photo via Getty Images

Drilling tech co. with Houston HQ to partner on European geothermal power plant

growing abroad

GA Drilling, a provider of geothermal drilling technology whose U.S. headquarters is in Houston, is teaming up with a European energy company to develop a geothermal power plant in Germany.

GA Drilling and ZeroGeo Energy, a Swiss company specializing in renewable energy, say the 12-megawatt Hot Dry Rock Geothermal Power Plant (Project THERMO) is the first of several geothermal power and geothermal energy storage projects they’re planning in Europe. GA Drilling will supply technology for Hot Dry Rock, and ZeroGEO will operate the plant.

“The need for clean baseload power is real, and geothermal has the highest potential to deliver that safely and securely. We’re excited to be collaborating with ZeroGeo to help address the power needs in Europe,” Dusan Kocis, co-founder and chief operating officer of Slovakia-based GA Drilling, says in a news release.

GA Drilling opened its Houston office in 2013 to tap into the region’s oil and gas industry.

Last year, GA Drilling conducted the first public demonstration of its latest deep drilling tool, ANCHORBIT. GA Drilling says it developed the tool to cut the cost of deep geothermal drilling by doubling drilling speeds and extending the life of drill bits.

GA Drilling performed the ANCHORBIT test at Nabors Industries’ technology center in Houston. Nabors, a drilling contractor based in Houston, is using GA Drilling’s technology in its drilling operations.

In 2022, Nabors invested $8 million in GA Drilling.

“Given the expected sharp growth in global energy consumption over the next decades, the world will require an even sharper growth in sustainable energy supply. I am convinced that geothermal energy will be a key contributor to the necessary increase in clean energy generation,” Anthony Petrello, chairman, president, and CEO of Nabors, said in an announcement about the GA Drilling investment.

Fervo Energy says its drilling operations Utah’s Cape Station show a 70 percent reduction in drilling times, paving the way for advancement of its geothermal energy system. Photo via fervoenergy.com

Houston geothermal startup reports 'dramatic acceleration' of drilling operations at Utah project

optimization station

Early drilling results indicate a geothermal energy project operated in Utah by Houston-based startup Fervo Energy is performing better than expected.

Fervo says its drilling operations Utah’s Cape Station show a 70 percent reduction in drilling times, paving the way for advancement of its geothermal energy system. Fervo began construction last year on Cape Station, which is set to deliver clean power to the grid in 2026 and be fully operating by 2028.

The company recently published early drilling results from Cape Station that it says exceed the U.S. Department of Energy’s expectations for enhanced geothermal systems. Fervo says these results “substantiate the rapid learning underway in the geothermal industry and signal readiness for continued commercialization.”

Founded in 2017, Fervo provides carbon-free energy through development of next-generation geothermal power.

Fervo began drilling at Cape Station, a 400-megawatt project in southwest Utah, in June 2023. Over the past six months, the company has drilled one vertical well and six horizontal wells there. The company reports that costs for the first four horizontal wells at Cape Station fell from $9.4 million to $4.8 million per well.

“Since its inception, Fervo has looked to bring a manufacturing mentality to enhanced geothermal development, building a highly repeatable drilling process that allows for continuous improvement and, as a result, lower costs,” Tim Latimer, Fervo’s co-founder and CEO, says in a news release. “In just six months, we have proven that our technology solutions have led to a dramatic acceleration in forecasted drilling performance.”

Trey Lowe, chief technology officer of Oklahoma City-based oil and gas producer Devon Energy, likens Fervo’s drilling results to “the early days of the shale revolution.” Last year, Devon invested $10 million in Fervo.

“When you operate continually and understand the resource, you dramatically streamline operations. That’s the unique value of Fervo’s approach to enhanced geothermal,” says Lowe.

Last summer, Fervo reported the results of another one of its projects, Project Red, which is in northern Nevada and made possible through a 2021 partnership with Google. That site officially went online for the tech company in December.

Things are heating up in Utah for Fervo Energy. Photo via fervoenergy.com

Houston company breaks ground on 'world's largest' geothermal project with next-generation tech

coming soon

Houston-based cleantech startup Fervo Energy has broken ground on what it's describing as the "world’s largest next-gen geothermal project."

Fervo says the a 400-milliwatt geothermal energy project in Cape Station, Utah, will start delivering carbon-free power to the grid in 2026, with full-scale production beginning in 2028.

The project, in southwest Utah, is about 240 miles southwest of Salt Lake City and about 240 miles northeast of Las Vegas. Cape Station is adjacent to the U.S. Department of Energy’s Frontier Observatory for Research in Geothermal Energy (FORGE) and near the Blundell geothermal power plant.

The company says Cape Station will generate about 6,600 construction jobs and 160 full-time jobs.

“Beaver County, Utah, is the perfect place to deploy our next-generation geothermal technology,” Tim Latimer, co-founder and CEO of Fervo, says in a news release. “The warmth and hospitality we have experienced from the communities of Milford and Beaver have allowed us to embark on a clean energy journey none of us could have imagined just a few years ago.”

In February, the U.S. Bureau of Land Management gave its blessing to the project, allowing Fervo to undertake exploration activities at the site.

“Geothermal innovations like those pioneered by Fervo will play a critical role in extending Utah’s energy leadership for generations to come,” says Utah Gov. Spencer Cox, who attended the groundbreaking ceremony.

Since being founded in 2017, Fervo has raised more than $180 million in funding. Its highest-profile investors are billionaires Jeff Bezos, Richard Branson and Bill Gates. They’re backing Fervo through Breakthrough Energy Ventures, whose managing director sits on Fervo’s board of directors.

Other investors include the Canada Pension Plan Investment Board (CPP Investments), DCVC, Devon Energy, Liberty Energy, Helmerich & Payne, Macquarie, the Grantham Foundation for the Protection of the Environment, Impact Science Ventures, and Prelude Ventures.

Fervo aims to generate more than one gigawatt of geothermal energy by 2030. On average, one gigawatt of power can provide electricity for 750,000 homes. Two coal-fired power plants can generate roughly the same amount of electricity.

Earlier this year, Fervo announced results of a test at Nevada’s Project Red site, which will supply power to Google data centers in the Las Vegas area. Fervo says the 30-day well test established Project Red as the “most productive enhanced geothermal system in history,” the company says. The test generated 3.5 megawatts of electricity.

In 2021, Fervo and Google signed the world’s first corporate agreement to produce geothermal power. Under the deal, Fervo will generate five megawatts of geothermal energy for Google through the Nevada project, which is set to go online later this year.

Onshore upstream meets greener pastures in the city where the earth meets the sky at URTeC 2023 in Denver. Photo via Shuttersock.

Can't miss: Unconventional Resources Technology Conference

ROAD TRIP

June 13-15 | Unconvetional Resources Technology Conference (URTeC)

Take a trip to higher ground and cooler temperatures next week at URTeC 2023 in Denver, Colorado. This technically focused event, hosted annually by the Society of Petroleum Engineers, American Association of Petroleum Geologists, and Society of Exploration Geophysicists, features the best and brightest minds in onshore oil and gas sharing novel applications of science and technology in pursuit of a more sustainable upstream energy base.

The event kicks off with almost two hours of discussion amongst industry leaders like Clay Gaspar, executive vice president and COO of Devon Energy, Amy Henry, CEO of Eunike Ventures, Robert E. Fast, CTO of Hess Corporation, and Neil McMahon, managing partner of Kimmeridge. The plenary panel will address the role of unconventionals in a lower carbon energy world, from tackling emissions to making advances in CCUS.

Chevron puts safety in the spotlight with a two-part session devoted to cleaner, more efficient engineering methodologies deployed to support corporate objectives while safely delivering higher returns and lower carbon. Hear from Vice President of the Rockies business unit, Kim McHugh, Johannes Alvarez, EOR and CO2 advisor for the Mid-Continent business unit, Vanessa Ryan, methane reduction manager of strategy and sustainability, and more leaders across Chevron building a new future for upstream energy.

Before the event wraps, be sure to catch an engaging discussion late Thursday morning with Christine Ehlig-Economides, professor and Hugh Roy & Lillie Cranz Cullen Distinguished University Chair at the University of Houston, on decarbonizing tight oil and shale gas, re-use opportunities for wastewater, and repurposed operations through closed-loop geothermal.

Registration currently remains open, with one- and three-day event options, as well as an exhibit hall-only option. The event usually draws over 3,000 attendees, so don’t wait to sign up.

For a complete list of upcoming energy events, visit the Events tab right here on EnergyCapitalHTX.com.

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Houston renewables developer powers two new California solar parks

now open

EDP Renewables North America LLC, a Houston-based developer, owner, and operator of renewable energy projects, has unveiled a solar energy park in California whose customers are Houston-based Shell Energy North America and the Eureka, California-based Redwood Coast Energy Authority.

Sandrini I & II Solar Energy Park, located near Bakersfield, is capable of supplying 300 megawatts of power. The park was completed in two phases.

“Sandrini I & II represent EDP Renewables’ continued commitment to investing in California and are a direct contribution to California's admirable target of achieving 100 percent clean electricity by 2045,” says Sandhya Ganapathy, CEO of EDP. “The Golden State is known for its leadership in solar energy, and EDP Renewables is elated to meet the growing demand for reliable clean energy sources.”

Shell signed a 15-year deal to buy power from the 200-megawatt Sandrini I, and the Redwood Coast Energy Authority signed a 15-year deal to buy power from the 100-megawatt Sandrini II.

In July, EDP announced the opening of the 210-megawatt Pearl River Solar Park in Mississippi. Earlier in 2024, the company debuted the 175-megawatt Crooked Lake Solar Park in Arkansas and the 74-megawatt Misenheimer Solar Park in North Carolina. Click here to read more.

Houston climatech incubator names new CFO

onboarding

Greentown Labs, a climatech incubator with locations in Houston and Somerville, Massachusetts, has hired Naheed Malik as its chief financial officer. In her new role, she oversees finance, accounting and human resources.

Malik previously worked at American Tower Corp., an owner of wireless communication towers. During her 12-year tenure there, she was vice president of financial planning and analysis, and vice president of corporate finance.

Before American Tower, Malik led financial planning and analysis at Wolters Kluwer Health, and was a management consultant at Kearney and an audit CPA at EY.

Kevin Dutt, Greentown’s interim CEO, says in a news release that Malik’s “deep expertise will be a boon for Greentown as we seek to serve even more climatech startups in our home states of Massachusetts and Texas, and beyond.”

“I am delighted to join Greentown at such an exciting time in its organizational growth,” Malik says. “As a nonprofit that’s deeply dedicated to its mission of supporting climatech innovation, Greentown is poised to build on its impressive track record and expand its impact in the years to come.”

Greentown bills itself as North America’s largest incubator for climatech startups. Today, it’s home to more than 200 startups. Since its founding in 2011, Greentown has nurtured more than 575 startups that have raised over $8.2 billion in funding.

Last year, Greentown’s CEO and president Kevin Knobloch announced that he would be stepping down in July 2024, after less than a year in the role. The incubator. About a month before the announcement, Knobloch reported that Greentown would reduce its staff by 30 percent, eliminating roles in Boston and Houston. He noted changes in leadership, growth of the team and adjustments following the pandemic.

Greentown plans to announce its new permanent CEO by the end of the month.

Being prepared: Has the Texas grid been adequately winterized?

Winter in Texas

Houstonians may feel anxious as the city and state brace for additional freezing temperatures this winter. Every year since 2021’s Winter Storm Uri, Texans wonder whether the grid will keep them safe in the face of another winter weather event. The record-breaking cold temperatures of Uri exposed a crucial vulnerability in the state’s power and water infrastructure.

According to ERCOT’s 6-day supply and demand forecast from January 3, 2025, it expected plenty of generation capacity to meet the needs of Texans during the most recent period of colder weather. So why did the grid fail so spectacularly in 2021?

  1. Demand for electricity surged as millions of people tried to heat their homes.
  2. ERCOT was simply not prepared despite previous winter storms of similar intensity to offer lessons in similarities.
  3. The state was highly dependent on un-winterized natural gas power plants for electricity.
  4. The Texas grid is isolated from other states.
  5. Failures of communication and coordination between ERCOT, state officials, utility companies, gas suppliers, electricity providers, and power plants contributed to the devastating outages.

The domino effect resulted in power outages for millions of Texans, the deaths of hundreds of Texans, billions of dollars in damages, with some households going nearly a week without heat, power, and water. This catastrophe highlighted the need for swift and sweeping upgrades and protections against future extreme weather events.

Texas State Legislature Responds

Texas lawmakers proactively introduced and passed legislation aimed at upgrading the state’s power infrastructure and preventing repeated failures within weeks of the storm. Senate Bill 3 (SB3) measures included:

  • Requirements to weatherize gas supply chain and pipeline facilities that sell electric energy within ERCOT.
  • The ability to impose penalties of up to $1 million for violation of these requirements.
  • Requirement for ERCOT to procure new power sources to ensure grid reliability during extreme heat and extreme cold.
  • Designation of specific natural gas facilities that are critical for power delivery during energy emergencies.
  • Development of an alert system that is to be activated when supply may not be able to meet demand.
  • Requirement for the Public Utility Commission of Texas, or PUCT, to establish an emergency wholesale electricity pricing program.

Texas Weatherization by Natural Gas Plants

In a Railroad Commission of Texas document published May 2024 and geared to gas supply chain and pipeline facilities, dozens of solutions were outlined with weatherization best practices and approaches in an effort to prevent another climate-affected crisis from severe winter weather.

Some solutions included:

  • Installation of insulation on critical components of a facility.
  • Construction of permanent or temporary windbreaks, housing, or barriers around critical equipment to reduce the impact of windchill.
  • Guidelines for the removal of ice and snow from critical equipment.
  • Instructions for the use of temporary heat systems on localized freezing problems like heating blankets, catalytic heaters, or fuel line heaters.

According to Daniel Cohan, professor of environmental engineering at Rice University, power plants across Texas have installed hundreds of millions of dollars worth of weatherization upgrades to their facilities. In ERCOT’s January 2022 winterization report, it stated that 321 out of 324 electricity generation units and transmission facilities fully passed the new regulations.

Is the Texas Grid Adequately Winterized?

Utilities, power generators, ERCOT, and the PUCT have all made changes to their operations and facilities since 2021 to be better prepared for extreme winter weather. Are these changes enough? Has the Texas grid officially been winterized?

This season, as winter weather tests Texans, residents may potentially experience localized outages. When tree branches cannot support the weight of the ice, they can snap and knock out power lines to neighborhoods across the state. In the instance of a downed power line, we must rely on regional utilities to act quickly to restore power.

The specific legislation enacted by the Texas state government in response to the 2021 disaster addressed to the relevant parties ensures that they have done their part to winterize the Texas grid.

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Sam Luna is director at BKV Energy, where he oversees brand and go-to-market strategy, customer experience, marketing execution, and more.

This article first appeared on our sister site, InnovationMap.com.

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