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Houston geothermal company's Google facility in Nevada goes online

up and running

Fervo Energy's Project Red with Google is officially operational. Photo via blog.google

Google is on a mission to run all of its data centers and office campuses on constant carbon-free energy by 2030, and the tech giant is one step closer to that goal.

Last week, Google announced that its 24/7 carbon-free energy, or CFE, in Nevada to power its local data center in the state is officially operational. The facility is powered by Houston-based Fervo Energy's geothermal technology, a project — called Project Red — that began in 2021 and celebrated its successful pilot this summer.

"When we began our partnership with Fervo, we knew that a first-of-a-kind project like this would require a wide range of technical and operational innovations," Michael Terrell, senior director of energy and climate at Google, writes in a blog post about the partnership.

Fervo relies on tried and true drilling techniques from the oil and gas industry, accessing heat energy that previously has been elusive to traditional geothermal methods, Terrell continues. Fervo dug two horizontal wells at the Nevada plant, as well as installed fiber-optic cables to capture data that tracks performance and other key information.

"The result is a geothermal plant that can produce round-the-clock CFE using less land than other clean energy sources and drawing on skills, knowledge, and supply chains that exist in other industries," Terrell says. "From our early commitment to support the project’s development to its successful completion, we’ve worked closely with Fervo to overcome obstacles and prove that this technology can work."

Google also recently announced a partnership with Project InnerSpace, a nonprofit focused on global geothermal energy development.

Fervo is working on another nearby project, the company announced in September. The 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.

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Houston-based Fervo Energy shared the results of its commercial pilot project with Google. Photo via Getty Images

Houston geothermal energy company announces major milestone

the results are in

A Houston energy startup has announced the news that every early-stage company wants to get to shout from the rooftops: the technology works.

Fervo Energy announced this week that its commercial pilot project has resulted in continuous carbon-free geothermal energy production. The full-scale commercial pilot, Project Red, is in northern Nevada and made possible through a 2021 partnership with Google.

“By applying drilling technology from the oil and gas industry, we have proven that we can produce 24/7 carbon-free energy resources in new geographies across the world," Tim Latimer, Fervo Energy CEO and co-founder, says in a news release. "The incredible results we share today are the product of many years of dedicated work and commitment from Fervo employees and industry partners, especially Google."

The goal of the partnership is to power Google’s Cloud region in Las Vegas with Fervo's geothermal-generated power.

“Achieving our goal of operating on 24/7 carbon-free energy will require new sources of firm, clean power to complement variable renewables like wind and solar,” adds Michael Terrell, senior director for energy and climate at Google. “We partnered with Fervo in 2021 because we see significant potential for their geothermal technology to unlock a critical source of 24/7 carbon-free energy at scale, and we are thrilled to see Fervo reach this important technical milestone.”

In honor of the announcement, today — July 19 — is the inaugural Fervo Energy Technology Day.

Fervo’s unique horizontal drilling technology has made an unprecedented accomplishment with Project Red, which has also proven the reliability and capacity of geothermal energy to supply over 20 percent of country's power needs, the company explains in its news release.

“Power systems modeling confirms that geothermal can be a critical player in a fully decarbonized grid," says Jesse Jenkins, assistant professor and leader of the Zero-carbon Energy systems Research and Optimization lab at Princeton University, in the release. "Fervo’s successful commercial pilot takes next-generation geothermal technology from the realm of models into the real world and starts us on a path to unlock geothermal’s full potential.”

Fervo has started work on its first greenfield development in southwest Utah, which is adjacent to the U.S. Department of Energy's Frontier Observatory for Research in Geothermal Energy (FORGE).

Last year, Fervo raised $138 million to further develop its technology. The series C round was led by California-based investment firm DCVC, with participation from six new investors. In April, Fervo Energy secured the $10 million strategic investment from Devon Energy Corporation (NYSE: DVN). The deal created a partnership between the two entities.

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Oxy subsidiary secures Microsoft as largest-ever DAC carbon removal credit customer

major move

Occidental Petroleum’s Houston-based carbon capture, utilization and, sequestration (CCUS) subsidiary, 1PointFive, has inked a six-year deal to sell 500,000 metric tons of carbon dioxide removal credits to software giant Microsoft.

In a news release, 1Point5 says this agreement represents the largest-ever single purchase of carbon credits enabled by direct air capture (DAC). DAC technology pulls CO2 from the air at any location, not just where carbon dioxide is emitted.

Under the agreement, the carbon dioxide that underlies the credits will be stored in a below-the-surface saline aquifer and won’t be used to produce oil or gas.

“A commitment of this magnitude further demonstrates how one of the world’s largest corporations is integrating scalable [DAC] into its net-zero strategy,” says Michael Avery, president and general manager of 1PointFive. “Energy demand across the technology industry is increasing, and we believe [DAC] is uniquely suited to remove residual emissions and further climate goals.”

Brian Marrs, senior director for carbon removal and energy at Microsoft, says DAC plays a key role in Microsoft’s effort to become carbon-negative by 2030.

The carbon dioxide will be stored at 1PointFive’s first industrial-scale DAC plant, being built near Odessa. The $1.3 billion Stratos project, which 1Point5 is developing through a joint venture with investment manager BlackRock, is designed to capture up to 500,000 metric tons of CO2 per year.

The facility is scheduled to open in mid-2025.

Aside from Microsoft, organizations that have agreed to buy carbon removal credits from 1Point5 include Amazon, Airbus, All Nippon Airways, the Houston Astros, the Houston Texans, and TD Bank.

Occidental says 1PointFive plans to set up more than 100 DAC facilities worldwide by 2035.

Texas Gov. Greg Abbott demands answers from Houston power company following Beryl

investigation incoming

With around 270,000 homes and businesses still without power in the Houston area almost a week after Hurricane Beryl hit Texas, Gov. Greg Abbott on Sunday said he's demanding an investigation into the response of the utility that serves the area as well as answers about its preparations for upcoming storms.

“Power companies along the Gulf Coast must be prepared to deal with hurricanes, to state the obvious,” Abbott said at his first news conference about Beryl since returning to the state from an economic development trip to Asia.

While CenterPoint Energy has restored power to about 2 million customers since the storm hit on July 8, the slow pace of recovery has put the utility, which provides electricity to the nation’s fourth-largest city, under mounting scrutiny over whether it was sufficiently prepared for the storm that left people without air conditioning in the searing summer heat.

Abbott said he was sending a letter to the Public Utility Commission of Texas requiring it to investigate why restoration has taken so long and what must be done to fix it. In the Houston area, Beryl toppled transmission lines, uprooted trees and snapped branches that crashed into power lines.

With months of hurricane season left, Abbott said he's giving CenterPoint until the end of the month to specify what it'll be doing to reduce or eliminate power outages in the event of another storm. He said that will include the company providing detailed plans to remove vegetation that still threatens power lines.

Abbott also said that CenterPoint didn't have “an adequate number of workers pre-staged" before the storm hit.

Following Abbott's news conference, CenterPoint said its top priority was “power to the remaining impacted customers as safely and quickly as possible,” adding that on Monday, the utility expects to have restored power to 90% of its customers. CenterPoint said it was committed to working with state and local leaders and to doing a “thorough review of our response.”

CenterPoint also said Sunday that it’s been “investing for years” to strengthen the area’s resilience to such storms.

The utility has defended its preparation for the storm and said that it has brought in about 12,000 additional workers from outside Houston. It has said it would have been unsafe to preposition those workers inside the predicted storm impact area before Beryl made landfall.

Brad Tutunjian, vice president for regulatory policy for CenterPoint Energy, said last week that the extensive damage to trees and power poles hampered the ability to restore power quickly.

A post Sunday on CenterPoint's website from its president and CEO, Jason Wells, said that over 2,100 utility poles were damaged during the storm and over 18,600 trees had to be removed from power lines, which impacted over 75% of the utility's distribution circuits.

Things to know: Beryl in the rearview, Devon Energy's big deal, and events not to miss

taking notes

Editor's note: Dive headfirst into the new week with three quick things to catch up on in Houston's energy transition.

Hurricane Beryl's big impact

Hundreds of thousands of people in the Houston area likely won’t have power restored until this week, as the city swelters in the aftermath of Hurricane Beryl.

The storm slammed into Texas on July 8, knocking out power to nearly 2.7 million homes and businesses and leaving huge swaths of the region in the dark and without air conditioning in the searing summer heat.

Although repairs have restored power to nearly 1.4 million customers, the scale of the damage and slow pace of recovery has put CenterPoint Energy, which provides electricity to the nation's fourth-largest city, under mounting scrutiny over whether it was sufficiently prepared for the storm and is doing enough now to make things right.

Some frustrated residents have also questioned why a part of the country that is all too familiar with major storms has been hobbled by a Category 1 hurricane, which is the weakest kind. But a storm's wind speed, alone, doesn't determine how dangerous it can be. Click here to continue reading this article from the AP.

Big deal: Devon Energy to acquire Houston exploration, production biz in $5B deal

Devon Energy is buying Grayson Mill Energy's Williston Basin business in a cash-and-stock deal valued at $5 billion as consolidation in the oil and gas sector ramps up.

The transaction includes $3.25 billion in cash and $1.75 billion in stock.

Grayson Mill Energy, based in Houston, is an oil and gas exploration company that received an initial investment from private equity firm EnCap Investments in 2016.

The firm appears to be stepping back from energy sector as it sells off assets. Last month EnCap-backed XCL Resources sold its Uinta Basin oil and gas assets to SM Energy Co. and Northern Oil and Gas in a transaction totaling $2.55 billion. EnCap had another deal in June as well, selling some assets to Matador Resources for nearly $2 billion. Click here to continue reading.

Events not to miss

Put these Houston-area energy-related events on your calendar.

  • 2024 Young Leaders Institute: Renewable Energy and Climate Solutions is taking place July 15 to July 19 at Asia Society of Texas. Register now.
  • CCS/Decarbonization Project Development, Finance and Investment, taking place July 23 to 25, is the deepest dive into the economic and regulatory factors driving the success of the CCS/CCUS project development landscape. Register now.
  • The 5th Texas Energy Forum 2024, organized by U.S. Energy Stream, will take place on August 21 and 22 at the Petroleum Club of Houston. Register now.

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