Houston-area counties land DOE funding for energy infrastructure projects

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Harris County was awarded $1.64 million, the largest total among the local governments. Photo via Getty Images

The U.S. Department of Energy recently awarded more than $2 million to Harris and Montgomery counties for projects that improve energy efficiency and infrastructure in the region.

The funds come from the DOE's Energy Efficiency and Conservation Block Grant (EECBG) Program. Harris and Montgomery counties are among 28 state, local, and Tribal governments to have been awarded a total of $30 million through the initiative, according to a statement.

The grants were awarded to eight states, four cities, four counties and 12 smaller, rural communities.

“Our local governments are at the forefront of our clean energy revolution and are critical touchpoints with our nation’s communities creating clean, healthy and affordable communities,” U.S. Secretary of Energy Jennifer M. Granholm says in a statement. “With historic funding thanks to President Biden’s clean energy laws, more Americans will receive upgrades to their homes through residential energy efficiency rebates, expanded weatherization efforts, and electrification programs that will save them energy and increase their comfort.

"This funding will also invest in improving public spaces, giving more Americans across the country access to energy efficient technologies and clean energy infrastructure in their communities such as heat pumps, LED lights, solar energy, and EV charging stations,” she continues.

Harris County was awarded $1.64 million, the largest total among the local governments. It will be put toward for several projects:

Conducting community engagement with disadvantaged communities for climate justice planning
Performing site assessments for solar and storage on county properties in disadvantaged communities
Conducting recycling pilots at county facilities
Enhancing walking and bicycling to school as part of the Safe Routes to School plan
Deploying an off-grid, solar EV station on county property in a disadvantaged community in the greater-Houston area

Montgomery County was awarded $457,580 to replace 150 metal halide lights at a community sports field with LED lights and add wireless controls.

According to the DOE, more than $430 million in formula grant funding is available through the EECBG Program and another 2,700 governments and tribes are eligible for funds. Grants are slated to be awarded on a rolling basis as the department receives applications. The application deadline for eligible local governments and tribes has been extended to April 30, 2024.

Other states, local governments and tribes to recieve funding in this round include:

States

Alabama ($2,207,540)
Alaska ($1,627,450)
Idaho ($1,742,300)
Louisiana ($2,149,350)
Maine ($1,668,790)
Ohio ($3,130,030)
Rhode Island ($1,675,110)
Washington ($2,273,890)

Local governments

Bend, Oregon ($152,740)
Boston, Massachusetts ($659,990)
Los Angeles County, California ($1,344,700)
Minneapolis, Minnesota ($424,330)
Nashville, Tennessee ($644,440)
Wagoner County, Oklahoma ($76,900)

EECBG Program Competitive Awards

Albany, California ($200,000)
Cascade, Idaho ($200,000)
Decatur, Georgia ($400,000)
Decorah, Iowa ($1,100,000)
Durham County, North Carolina ($1,500,000)
Eagle County, Colorado ($1,400,000)
Exeter, New Hampshire ($200,000)
Kittery, Maine ($800,000)
Littleton, Massachusetts ($300,000)
MOWA Band of Choctaw Indians in Alabama ($1,100,000)
Nenana, Alaska ($900,000)
Peterborough, New Hampshire ($700,000) and Harrisville, NH

The funds add to the list for grants the federal government has doled out to Houston-area projects related to the energy transition in recent months.

Earlier in October, Granholm announced that the HyVelocity Hydrogen Hub would receive funding through the Bipartisan Infrastructure Law. The project, which connects more than 1,000 miles of hydrogen pipelines, 48 hydrogen production facilities and dozens of hydrogen end-use applications across Texas and Southwest Louisiana will receive up to $1.2 billion.

The DOE also granted more than $10 million in funding to four carbon capture projects with ties to Houston earlier this summer.

And in September, Rice University announced that it would host the Carbon Management Community Summit this fall, sponsored by the DOE, and in partnership with the city of Houston and climate change-focused multimedia company Climate Now. The event takes place next month.

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Fervo Energy officially files for initial public offering

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Fervo Energy has officially filed for IPO.

The Houston-based geothermal unicorn filed a registration statement on Form S-1 with the U.S. Securities and Exchange Commission on April 17 to list its Class A common stock on the Nasdaq exchange. Fervo intends to be listed under the ticker symbol "FRVO."

The number and price of the shares have not yet been determined, according to a news release from Fervo. J.P. Morgan, BofA Securities, RBC Capital Markets and Barclays are leading the offering.

The highly anticipated filing comes as Fervo readies its flagship Cape Station geothermal project to deliver its first power later this year

"Today, miles-long lines for gasoline have been replaced by lines for electricity. Tech companies compete for megawatts to claim AI market share. Manufacturers jockey for power to strengthen American industry. Utilities demand clean, firm electricity to stabilize the grid," Fervo CEO Tim Latimer shared in the filing. "Fervo is prepared to serve all of these customers. Not with complex, idiosyncratic projects but with a simplified, standardized product capable of delivering around-the-clock, carbon-free power using proven oil and gas technology."

Fervo has been preparing to file for IPO for months. Axios Pro first reported that the company "quietly" filed for an IPO in January and estimated it would be valued between $2 billion and $3 billion.

Fervo also closed $421 million in non-recourse debt financing for the first phase of Cape Station last month and raised a $462 million Series E in December. The company also announced the addition of four heavyweights to its board of directors last week, including Meg Whitman, former CEO of eBay, Hewlett-Packard, and Spring-based HPE.

Fervo reported a net loss of $70.5 million for the 2025 fiscal year in the S-1 filing and a loss of $41.1 million in 2024.

Tracxn.com estimates that Fervo has raised $1.12 billion over 12 funding rounds. The company was founded in 2017 by Latimer and CTO Jack Norbeck.

Houston lawmaker may kill data center tax breaks due to $8B revenue loss

looking at the data

An influential Houston-area state senator is raising concerns about potentially billions of dollars in lost state revenue from tax breaks for Texas data centers—and is pondering legislation that would abolish the tax incentives.

Citing data from the state comptroller’s office, The Texas Tribune reports the state stands to lose nearly $8 billion in revenue from 2026 to 2030 due to sales tax and use tax exemptions for data centers. During the state’s 2025 fiscal year, which ended on Aug. 31, these tax exemptions caused Texas to lose a little over $1 billion, up from an earlier estimate of $130 million.

“These new numbers are extremely concerning, and I will say they’re unsustainable,” Republican state Sen. Joan Huffman, chairwoman of the state Senate Finance Committee, tells The Texas Tribune. “I plan to look at filing legislation to either repeal the exemption or take a very close look at it and see.”

Texas on track to be No. 1 data center market in U.S.

Scrutiny of the tax breaks comes amid an explosion of data center development in Texas, where data provider Aterio identifies nearly 1,000 centers that are operating, under construction or planned.

A report issued in January by Bloom Energy says the state is poised to become the No. 1 U.S. market for data centers within three years. By 2028, according to the report, Texas is projected to exceed 40 gigawatts of data center capacity—representing nearly 30 percent of total U.S. demand.

Among companies benefiting from the data center boom are:

Tech titans like Apple, Google, Meta Platforms, and Microsoft, which are spending billions of dollars to build data centers in Texas.
Spring-based ExxonMobil and Houston-based Chevron, two oil and energy giants that are developing natural gas plants to supply power for data centers.
Houston-based energy technology company Baker Hughes, which is collaborating with Google Cloud to develop AI-enabled power optimization and sustainability software for data centers.
DataBank, Data Foundry, Equinix, Digital Realty, Lumen Technologies, and IBM, all of which operate data centers in the Houston area.

The Texas Legislature will begin debating tax breaks for data centers in July, when Huffman’s Senate Finance Committee meets for an interim hearing before the 2027 legislative session, according to the Tribune.

Data center industry defends tax breaks

Leaders in the data center industry warn that watering down or halting the tax breaks could slow down or even end Texas’ ascent in the data center sector.

A 2025 report commissioned by the Data Center Coalition found that in 2024, data centers provided more than $1.6 billion in state tax revenue and almost $1.6 billion in local tax revenue in Texas. Over the next several years, according to the report, planned development of data centers in the Lone Star State could generate almost $3.8 billion in state tax revenue and more than $4.9 billion in local tax revenue.

In 2024, the Houston area had 8.1 million gross square feet of data centers, with the properties’ real estate investments sitting at $10 billion, according to the report. That year, data centers in the region produced a little over $700 million in state and local tax revenue. About 60 data centers operate in the Houston area.

Watchdog group warns of tax breaks’ danger to state budgets

On the other side of the debate over tax breaks for data centers, a report released last year by Good Jobs First, a nonprofit, nonpartisan watchdog group that tracks economic development incentives, decries the tax breaks as dangerous to state budgets.

“We know of no other form of state spending that is so out of control. Therefore, we recommend that states cancel their data center tax exemptions,” says Good Jobs research analyst Kasia Tarczynska, co-author of the report. “Shy of that, states should amend … legislation to cap how much any facility and company can avoid paying in taxes each year.”

Helix Earth closes $12M round and more Houston energy headlines

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Editor's note: The top energy transition headlines for the month include Helix Earth's Seed 2 funding and Chevron's plans for a West Texas power plant. Below are the five most-read EnergyCapital stories published April 1-15, 2026:

1. Houston cleantech company closes $12M seed round

Helix Earth is developing a retrofit technology that has the potential to cut HVAC energy use by up to 50 percent. Photo via Getty Images

Houston-based Helix Earth Technologies has closed a $12 million Seed 2 funding round to scale manufacturing of its energy-efficient commercial HVAC add-on technology. Veriten, a Houston-based energy investment firm, led the round. Rua Ventures, Carnrite Ventures, Skywriter LLC and Textbook Ventures also participated. Continue reading.

2. Chevron eyes $7B Texas power plant for Microsoft data center campus

Chevron is in talks with Microsoft and Engine No. 1 about a massive natural gas power plant in Texas. Photo via Getty Images

Software giant Microsoft is negotiating exclusively with Houston-based oil and gas titan Chevron and investment firm Engine No. 1 about the development of a $7 billion power plant in West Texas that would supply electricity for a Microsoft data center campus. Continue reading.

3. 3 strategies to strengthen the Gulf Coast as a global energy hub

The Gulf Coast is one of the most critical energy hubs in the world. Photo via Getty Images.

The Texas-Louisiana Gulf Coast is the backbone of America’s energy and chemical economy. Texas produces roughly 43% of U.S. crude oil and 28% of natural gas, while Texas and Louisiana together account for about half of the nation’s refining capacity, processing 9.3 million barrels of crude per day across 50 refineries. The region also produces approximately 80% of the nation’s primary petrochemicals and ships more than $117 billion in chemical products annually from Texas alone. Continue reading.

4. 8 CERAWeek 2026 takeaways from a new Houston energy leader

Kelsey Kearns (right), the new director of Greentown Houston, shared her takeaways from her first-ever CERAWeek with Energy Capital HTX. Photo courtesy Greentown

My first CERAWeek was a blur. Having top energy executives, policymakers, and technologists all gathered in Houston—over 11,000 of them this year—was both overwhelming and energizing. The theme was “Convergence and Competition: Energy, Technology, and Geopolitics,” and walking through the George R. Brown Convention Center, it was immediately clear that this was no ordinary industry conference. As a first-timer with a Greentown Labs lens, here’s what really stuck with me. Continue reading.

5. Greentown Labs names new COO, appoints new Head of Houston

Lawson Gow and Kelsey Kearns have stepped into new leadership roles at Greentown Labs. Photos courtesy Greentown/LinkedIn

Greentown Labs has reshuffled its leadership, elevating Houston leaders into new roles. Lawson Gow was named COO of the Houston- and Boston-based climatech incubator in February 2026. In his new role, he will focus on optimizing Greentown's structure, building new internal and external systems and developing a plan for growth. Continue reading.

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