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Houston energy company to invest $1B in U.S. electric grid manufacturing

grid boost

Hitachi Energy will build a new power transformer factory and plans to manufacture infrastructure for the U.S. electric grid. Photo courtesy Hitachi Energy.

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.

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Overall, the project is one of the largest collections of renewable hydrogen production, onsite storage, and end-use technologies that are all located at the same site. Photo via utexas.edu

Texas hydrogen research hub brings on new corporate partner

howdy, partner

A Texas US Department of Energy initiative has added a new corporate player.

Hitachi Energy has joined the DOE's H2@Scale in Texas and Beyond initiative with GTI Energy, Frontier Energy, The University of Texas Austin, and others. The initiative, which opened earlier this year, plans to assist in “integrating utility-scale renewable energy sources with power grids and managing and orchestrating a variety of energy sources” according to a news release.

Most of the ‘H2@Scale project’s activities take place at University of Texas JJ Pickle Research Center in Austin. The project is part of a larger one to expand hydrogen’s role and help to decarbonize Texas. The ‘H2@Scale' project consists of multiple hydrogen production options like a vehicle refueling station alongside a fleet of hydrogen fuel cell vehicles.

Overall, the project is one of the largest collections of renewable hydrogen production, onsite storage, and end-use technologies that are all located at the same site.

Another larger goal is to investigate the efficiency and cost-effectiveness of hydrogen generation from renewable resources, which all aligns with the project’s vision of decarbonization efforts.

Hitachi Energy is part of the full hydrogen value chain from early-stage project origination and design. They also work to ensure grid compliance, power conversion systems and asset management solutions.

“Hitachi Energy is proud to be a key partner in the US Department of Energy’s ‘H2@Scale in Texas and Beyond’ project. The initiative comes at a pivotal moment in our commitment to advancing hydrogen production and its role in the evolving clean energy landscape,” Executive Vice President and Region Head of North America at Hitachi Energy Anthony Allard says in a news release. “As hydrogen emerges as a critical element in decarbonizing hard-to-abate industries, Hitachi Energy remains dedicated to drive innovation and sustainability on a global scale.”

Hitachi’s project teams will undertake feasibility studies for scaling up hydrogen production and use, which will aim to benefit the development of a strategic plan and implementation of the H2@Scale project in the Port of Houston and the region of the Gulf Coast. The teams will also seek opportunities to leverage prospective hydrogen users, pre-existing hydrogen pipelines, and large networks of concentrated industrial infrastructure. Then, they will work to identify environmental and economic benefits of hydrogen deployment in the area.

Earlier this year, Hitachi Energy teamed up with teamed up with Houston-based electrical transmission developer Grid United for a collaboration to work on high-voltage direct current technology for Grid United transmission projects. These projects will aim to interconnect the eastern and western regional power grids in the U.S. The Eastern Interconnection east of the Rocky Mountains, the Western Interconnection west of the Rockies and the Texas Interconnection run by the Electric Reliability Council of Texas, make up the three main power grids.

Grid United announced a new partnership with Hitachi Energy that it's entered into a collaboration to work on high-voltage direct current technology for Grid United transmission projects. Photo via hitachienergy.com

Houston company names new tech partner on projects aimed at increasing grid reliability

tapping into tech

A Houston company has tapped a new tech partner to work on projects that are expected to help boost transmission capacity across the U.S. amidst increased, continued demands for energy.

Houston-based electrical transmission developer Grid United and Hitachi Energy announced at CERAWeek that it's entered into a collaboration to work on high-voltage direct current technology for Grid United transmission projects. These projects will aim to interconnect the eastern and western regional power grids in the U.S. The Eastern Interconnection east of the Rocky Mountains, the Western Interconnection west of the Rockies and the Texas Interconnection run by the Electric Reliability Council of Texas, make up the three main power grids.

This technology and these projects play a key role in the U.S. government’s commitment to accelerating the energy transition, which includes the priorities of the U.S. Department of Energy. The collaboration is considered a capacity reservation agreement in which Hitachi Energy will provide HVDC technology to support the development of multiple Grid United HVDC interconnections. The interconnections aim to mitigate the impact of extreme events and accommodate demands for electricity.

“With industry leading HVDC technology and a global track record, Hitachi Energy is a needed collaborator for the development of a more resilient and reliable electric power grid,” Michael Skelly, CEO and co-founder of Grid United, says in a news release. “By working with companies like Hitachi Energy and partnering with incumbent utilities, we’re confident we can quicken the pace of modernizing and strengthening the U.S. electric grid to meet rapidly increasing electricity demand.”

The multi-contract framework is one of the first of new business models, which allows Hitachi Energy to plan in “advance to increase manufacturing capacity, expand and train the workforce, and maximize standardization to increase efficiency between successive projects” according to a news release.

We are proud to collaborate with Grid United to strengthen the U.S. power grid, making it more flexible, reliable, and secure,” Managing Director of Grid Integration Business Niklas Persson says in a news release. “By applying our innovative new business model which enables speed and scale in the supply chain, we are confident we can make important contributions to streamlining the development process to help accelerate the energy transition.”

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6 Houston companies earn recognition on Time’s global greentech list 2026

green giants

Six Houston-area businesses appear on Time magazine’s 2026 list of the world’s top greentech companies, with a high-flying name leading the pack.

The highest-ranked local company is Houston-based geothermal power producer Fervo Energy, which claims the No. 4 spot—up from No. 14 last year.

In May, Fervo raised nearly $1.9 billion in its IPO, making it the biggest-ever IPO in the clean energy sector. The company’s valuation now exceeds $10 billion.

Founded in 2017, Fervo borrows methods from the oil and gas sector to drill wells that go down vertically into hot rock before turning horizontal, letting water circulate through them and produce electricity from the heat it absorbs. Cape Station in Utah, the company's first utility-scale project, is set to start delivering power to the grid later this year, with capacity expected to grow to 100 megawatts by 2027.

Co-founder and CEO Tim Latimer tells Fast Company, which named him a 2026 Visionary of the Year, that he launched his career as a drilling engineer for fossil fuels, “but quickly became obsessed with this idea that the drilling techniques we were using would actually be transformative for the world of geothermal as well.”

Fast Company notes the geothermal power generated by Cape Station will be available 24/7, unlike wind and solar power.

“When you start adding something to the grid mix that’s affordable and works around the clock,” Latimer says, “that’s going to be a huge asset to meeting our country’s energy needs.”

Time teamed up with data provider Statista to compile the second annual ranking of the 250 top greentech companies in the world. Companies on the list either develop or provide green technology, products, or services that help ease or reverse the environmental impacts of human activity.

Statista gathered and analyzed data from more than 8,300 companies to create the list, and they were scored in three categories: positive environmental impact, innovation, and financial strength. Fervo earned a score of 94.63 out of 100.

Joining Fervo on this year’s list are:

  • Houston-based Quaise Energy (No. 78), which specializes in terawatt-scale geothermal power
  • The Woodlands-based Plus Power (No. 112), which develops, owns and operates battery storage projects
  • Houston-based Utility Global (No. 167), which develops decarbonization technology
  • Houston-based 1PointFive (No. 217), an Occidental Petroleum subsidiary that offers large-scale carbon removal and storage.
  • Houston-based Sage Geosystems (No. 250), which produces commercial-scale geothermal power

Earlier this year, six Houston-area companies landed on Time's list of top greentech companies in America: Fervo (No. 1), Quaise Energy (No. 49), Plus Power (No. 71), Utility Global (No. 98), Solugen (No. 199) and Noodoe (No. 215).

Houston-based Syzygy lands global customer for first commercial SAF plant

clean fuel deal

Houston-based Syzygy Plasmonics has secured a major future customer for its sustainable aviation fuel.

Syzygy announced this week that it has entered into a capacity reservation agreement with World Fuel Services, a global fuel distribution and logistics company.

Through the deal, World Fuel has reserved a portion of Syzygy's SAF production for future plants slated for Central and South America. The clean fuel will be produced at Syzygy’s NovaSAF-1 facility in Uruguay, which is moving toward construction.

The NovaSAF-1 will be the world's first electrified facility to convert biogas into sustainable aviation fuel (SAF). The facility is expected to produce over 350,000 gallons of SAF annually, which would be considered “a breakthrough in cost-effective, scalable clean fuel,” according to Syzygy.

The facility is expected to produce SAF with at least an 80 percent reduction in carbon intensity compared to Jet A fuel and make its first deliveries in 2028.

"Following NovaSAF-1, this agreement reflects continued interest in scalable pathways for producing SAF from biogas," Trevor Best, CEO of Syzygy Plasmonics, said in a news release. "Our NovaSAF platform is designed to deliver cost-competitive fuel while supporting the aviation sector's evolving regulatory and sustainability requirements."

Syzygy will make a portion of future production capacity available to World Fuel from its planned facilities, subject to the development and completion of those projects, according to the deal.

"We continue to evaluate supply opportunities that support increased access to lower carbon fuels in aviation, in line with emerging regulatory requirements and customer demand," Michael Ranger, senior vice president of supply EMEAA at World Fuel, added in the release. "Arrangements such as this are part of our ongoing efforts across the supply chain.”

Syzygy also secured an offtake agreement with Singapore-based commodity company Trafigura from NovaSAF-1 earlier this year.

Texas Gov. Abbott seeks data center crackdown as state grapples with growing power demand

growing pains

Just seven months ago, Gov. Greg Abbott trumpeted Google’s $40 billion plan to add three data center campuses in Texas. Now, amid growing public outcry over such projects, Abbott is pushing for a regulatory crackdown on data centers in the Lone Star State.

Abbott recently sent a letter to leaders of the Public Utility Commission of Texas (PUC) and the Electric Reliability Council of Texas (ERCOT) proposing stricter oversight of the state’s data centers. Texas is home to more than 400 data centers, with many more on the way, and is poised to become the world’s largest data center market.

Among other things, Abbott wants to:

  • Ensure residential electric bills go down — not up — as data centers connect to ERCOT’s grid, which supplies power for about 90 percent of Texans.
  • Require data centers to cover the costs of upgrades to deliver electricity to the power-hungry facilities.
  • Repeal sales tax exemptions and other “outdated or unnecessary” financial incentives for data centers.
  • Institute “best practices,” such as property setbacks and noise-reduction technology, to ease the impact of data centers on nearby residents.
  • Demand that all new data centers, which use a tremendous amount of water, be built with water-efficient technology.
  • Require large data centers to generate annual reports on their use of electricity and water.

Abbott has set a July 17 deadline for the PUC and ERCOT to address his recommendations.

“As Texas continues to welcome innovation and investment, we must ensure that growth strengthens our people and their quality of life without placing undue burdens on Texans and local communities,” Abbott wrote.

Abbott’s call for tighter control of data centers has elicited both praise and skepticism.

In a social media post on X, Texas House Speaker Dustin Burrows, a Lubbock Republican, thanked Abbott for seeking “accountability and reform” in the state’s data center industry. Burrows has made data centers one of his priority issues for the 2027 state legislative session.

State oil and gas regulator Wayne Christian, a member of the Texas Railroad Commission, weighed in with similarly positive comments about Abbott’s directive. He says an outright ban on data centers isn’t the answer to residents’ complaints about new facilities.

“The Texas way is not to answer innovation with government overreach or fear-driven bans,” Christian, whose agency wasn’t cited in Abbott’s letter, said in a statement posted on X. “Our job is to protect prosperity, safeguard taxpayers and ensure the infrastructure that powers our economy remains strong and reliable.”

Gina Hinojosa, an Austin Democrat who’s challenging Abbott in this November’s gubernatorial race, took issue with the governor’s edict on data centers.

“Greg Abbott is changing his tune on data centers because he knows his policies are unpopular,” Hinojosa, a state representative, wrote on X. “Nobody believes the arsonist is gonna be the one to put out the fire.”

Abbott’s call for stepped-up regulation of data centers echoes many of the concerns expressed by the state chapter of the Sierra Club, an environmental nonprofit.

“The growth of data centers reflects a broader transformation taking place across Texas,” the Sierra Club says on its website. “The state is becoming a hub for the technologies that will shape the future economy, from artificial intelligence to advanced computing and cloud services. At the same time, Texans deserve transparency about how these projects affect the communities where they are built.”

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