Panel: Houston's access to talent, strong network drives it as a city for scaling energy transition business

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At the GHP's Future of Global Energy event, panelists discussed the opportunities for scale in Houston. Photo by Natalie Harms/EnergyCapital

Time is of the essence when it comes to scaling energy transition businesses in Houston — at least that's what a group of panelists agreed on at a recent event from the Greater Houston Partnership.

The GHP's Future of Global Energy event, which took place on October 9, featured a panel entitled, "Epicenter of Energy Innovation for Scale" and was moderated by Barbara Burger, former president of Chevron Technology Ventures and current startup adviser and mentor. Joining Burger was Kristina Lund, president of Pattern Energy; Brooke Vandygriff, COO of HIF Global: and Bud Vos, CEO of MetOx International. All three companies have and plan to continue scaling in Houston.

The conversation covered some of the unique achievements each of the panelists' companies have reached recently, including HIF Global's millions raised to create e-fuels, MetOx's $25 million series B extension, and Pattern Energy's Southern Spirit project scoring $360 million from the Department of Energy to connect Texas's ERCOT to other states.

After covering the momentum each company has right now, Burger asked each of the panelists why Houston makes sense as a place for scaling their energy transition business.

"The U.S. has a great regulatory environment, ERCOT specifically. Texas is in the business of permitting projects," Vandygriff says. "If you take the right steps, you can get your permits. They are very responsive to attracting and recruiting businesses here."

Also attractive is Houston's existing energy workforce. Even when it comes to technology roles, Houston delivers.

"There is great tech talent here," Vos says, pointing out that Bill Gates called Houston the "Silicon Valley of energy" when he was here for CERAWeek. "I think there's an element of that that's very true. There's a lot innovation, there's a lot of creative thinking, and being able to come out of these businesses with huge momentum then go into startups and innovate is a culture change that I think Houston is going through."

The panelists, most of whom are not Houston natives, agreed in a welcoming culture within the business sector.

"I really think that Houston offers great hospitality, and the energy networks here are so strong," Lund says. "You feel the energy of the city."

For the first time, Texas's ERCOT grid will be connected to other states' grids thanks to funding from the Department of Energy. Photo via Getty Images

$360M DOE grant to fund project that will connect ERCOT to US power grid

powering on

Thanks to recently announced funding, the power grid for the territory served by the Electric Reliability Council of Texas (ERCOT) will be connected to grids in other states.

Officials hope building a 320-mile transmission line that connects the ERCOT electric grid to electric grids in the Southeast will prevent power outages like the massive blackout that occurred in 2022 when a winter storm blasted Texas.

San Francisco-based Pattern Energy says its Southern Spirit project will cost more than $2.6 billion. Full-scale construction is supposed to get underway in 2028, and the project is set to go online in 2031.

The U.S. Department of Energy recently approved up to $360 million for the transmission project. The transmission line will stretch from Texas’ border with Louisiana to Mississippi. It’ll supply about 3,000 megawatts of electricity in either direction. That’s enough power for about 750,000 residential customers during ERCOT’s peak hours.

ERCOT’s more than 54,100 miles of transmission lines supply power to about 90 percent of Texans.

“The U.S. transmission network is the backbone of our nation’s electricity system. Though our grid has served U.S. energy needs for more than a century, our country’s needs are changing,” David Turk, under secretary at the Department of Energy, says in a news release.

“DOE’s approach to deploying near-term solutions and developing long-term planning tools will ensure our electric grid is more interconnected and resilient than ever before,” Turk adds, “while also supporting greater electricity demand.”

The other three projects that recently received funding from the DOE include:

Aroostook Renewable Project, which will construct a new substation in Haynesville, Maine, and a 111-mile transmission line connecting to a substation in Pittsfield, Maine.
Cimarron Link, a 400-mile HVDC transmission line from Texas County, Oklahoma to Tulsa, Oklahoma
Southline, which will construct a 108-mile transmission line between Hidalgo County, New Mexico, and Las Cruces, New Mexico. The DOE previously supported a 175-mile line from Hidalgo County, New Mexico, to Pima County, Arizona, in Southline Phase 1 on the first round of the Transmission Facilitation Program.

This month's funding completes the $2.5 billion in awards from the Transmission Facilitation Program which is administered through the Building a Better Grid Initiative that launched in January 2022. Its mission has been to develop nationally significant transmission lines, increase resilience by connecting regions of the country and improve access to clean energy sources, according to the DOE.

Earlier this year, ERCOT, which manages 90 percent of Texas’ power supply, forecasted a major spike in demand for electricity over the next five to seven years

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.

Pattern Energy, a California-based company with over 150 employees in Houston, revealed its new local office space. Photo courtesy

California renewable energy infrastructure company opens new Houston office

new digs

A company that's developing renewable energy projects has officially opened their new Houston office that will house its 150-person local development team.

Pattern Energy Group LP, headquartered in San Francisco, has moved its Houston operations into the Montrose Collective at 888 Westheimer Road. The new mixed-use complex developed by Radom Capital is home to restaurants, spas, and other retailers.

"We are doubling down on our commitment to Houston with an innovative new office that is designed to foster the collaborative nature of our work to develop some of America's most ambitious clean power projects," says Hunter Armistead, CEO of Pattern Energy, in a June news release. "Leveraging Houston's top-notch energy workforce has been an important component of our success and we look forward to tapping the City's talent base for our continued growth.

Pattern Energy, which develops and operates wind, solar, transmission, and energy storage projects, has a portfolio of 36 renewable energy facilities that have an operating capacity of nearly 6,000 megawatts across the United States, Canada, Japan, and Mexico.

"This new space will help foster the ingenuity of our dedicated employees and their passion for our mission – to transition the world to renewable energy," Armistead, who's based locally, continues.

Hunter Armistead, CEO of Pattern Energy, celebrated the company's new office last month. Photo courtesy

The company's development team is based in Houston and is currently working on the SunZia Transmission and Wind project in New Mexico and Arizona, which Pattern Energy describes as "the largest clean energy infrastructure project in U.S. history."

Also housed in the new office is the company's Operations Control Center, which provides 24/7 remote monitoring and control of Pattern Energy's renewable energy facilities. Other employees in the new space work on the meteorological, transmission, and energy trading teams.

"We chose the Montrose neighborhood based on our employee feedback," says Cary Kottler, chief development officer, who's also based in Houston. "To achieve our mission, we need to be energized – and Montrose has the vibrancy and atmosphere we were looking for. As we move forward with building a pipeline of truly exciting renewable energy projects, we are confident that this is the ideal location for our employees to write a new chapter in our history."

The new office lobby features a mural by local Houston artist DUAL.

The new office is in Montrose, a neighborhood that had the "vibrancy and atmosphere" Pattern Energy was looking for. Photo courtesy

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Expert examines how far Texas has come in energy efficiency

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Texas leads the nation in energy production, providing about one-fourth of the country’s domestically produced primary energy. It is also the largest energy-consuming state, accounting for about one-seventh of the nation’s total energy use, and ranks sixth among the states in per capita energy consumption.

However, because Texas produces significantly more energy than it consumes, it stands as the nation’s largest net energy supplier. October marked National Energy Awareness Month, so this is an ideal time to reflect on how far Texas has come in improving energy efficiency.

Progress in Clean Energy and Grid Resilience

Texas continues to lead the nation in clean energy adoption and grid modernization, particularly in wind and solar power. With over 39,000 MW of wind capacity, Texas ranks first in the country in wind-powered electricity generation, now supplying more than 10% of the state’s total electricity.

This growth was significantly driven by the Renewable Portfolio Standard (RPS), which requires utility companies to produce new renewable energy in proportion to their market share. Initially, the RPS aimed to generate 10,000 MW of renewable energy capacity by 2025. Thanks to aggressive capacity building, this ambitious target was reached much earlier than anticipated.

Solar energy is also expanding rapidly, with Texas reaching 16 GW of solar capacity as of April 2024. The state has invested heavily in large-scale solar farms and supportive policies, contributing to a cleaner energy mix.

Texas is working to integrate both wind and solar to create a more resilient and cost-effective grid. Efforts to strengthen the grid also include regulatory changes, winterization mandates, and the deployment of renewable storage solutions.

While progress is evident, experts stress the need for continued improvements to ensure grid reliability during extreme weather events, when we can’t rely on the necessities for these types of energy sources to thrive. To put it simply, the sun doesn’t always shine, and the wind doesn’t always blow.

Federal Funding Boosts Energy Efficiency

In 2024, Texas received $22.4 million, the largest share of a $66 million federal award, from the U.S. Department of Energy’s Energy Efficiency Revolving Loan Fund Capitalization Grant Program.

The goal of this funding is to channel federal dollars into local communities to support energy-efficiency projects through state-based loans and grants. According to the DOE, these funds can be used by local businesses, homeowners, and public institutions for energy audits, upgrades, and retrofits that reduce energy consumption.

The award will help establish a new Texas-based revolving loan fund modeled after the state’s existing LoanSTAR program, which already supports cost-effective energy retrofits for public facilities and municipalities. According to the Texas Comptroller, as of 2023, the LoanSTAR program had awarded more than 337 loans totaling over $600 million.

In addition to expanding the revolving loan model, the state plans to use a portion of the DOE funds to offer free energy audit services to the public. The grant program is currently under development.

Building on this momentum, in early 2025, Texas secured an additional $689 million in federal funding to implement the Home Energy Performance-Based, Whole House (HOMES) rebate program and the Home Electrification and Application Rebate (HEAR) program.

This investment is more than five times the state’s usual energy efficiency spending. Texas’s eight private Transmission and Distribution Utilities typically spend about $110 million annually on such measures. The state will have multiple years to roll out both the revolving loan and rebate programs.

However, valuable federal tax incentives for energy-efficient home improvements are set to expire on December 31, 2025, including:

The Energy Efficiency Home Improvement Credit allows homeowners to claim up to $3,200 per year in federal income tax credits, covering 30% of the cost of eligible upgrades, such as insulation, windows, doors, and high-efficiency heating and cooling systems.
The Residential Clean Energy Credit provides a 30% income tax credit for the installation of qualifying clean energy systems, including rooftop solar panels, wind turbines, geothermal heat pumps, and battery storage systems.

As these incentives wind down, the urgency grows for Texas to build on the positive gains from the past several years despite reduced federal funding. The state has already made remarkable strides in clean energy production, grid modernization, and energy-efficiency investments, but the path forward requires a strategic and inclusive approach to energy planning. Through ongoing state-federal collaboration, community-driven initiatives, and forward-looking policy reforms, Texas can continue its progress, ensuring that future energy challenges are met with sustainable and resilient solutions.

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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.

Meta to buy all power from new ENGIE Texas solar farm

power purchase

Meta, the parent company of social media platform Facebook, has agreed to buy all of the power from a $900 million solar farm being developed near Abilene by Houston-based energy company ENGIE North America.

The 600-megawatt Swenson Ranch solar farm, located in Stonewall County, will be the largest one ever built in the U.S. by ENGIE. The solar farm is expected to go online in 2027.

Meta will use electricity generated by the solar farm to power its U.S. data centers. All told, Meta has agreed to purchase more than 1.3 gigawatts of renewable energy from four ENGIE projects in Texas.

“This project marks an important step forward in the partnership between our two companies and their shared desire to promote a sustainable and competitive energy model,” Paulo Almirante, ENGIE’s senior executive vice president of renewable and flexible power, said in a news release.

In September, ENGIE North America said it would collaborate with Prometheus Hyperscale, a developer of sustainable liquid-cooled data centers, to build data centers at ENGIE-owned renewable energy and battery storage facilities along the I-35 corridor in Texas. The corridor includes Austin, Dallas-Fort Worth, San Antonio and Waco.

The first projects under the ENGIE-Prometheus umbrella are expected to go online in 2026.

ENGIE and Prometheus said their partnership “brings together ENGIE's deep expertise in renewables, batteries, and energy management and Prometheus' highly efficient liquid-cooled data center design to meet the growing demand for reliable, sustainable compute capacity — particularly for AI and other high-performance workloads.”

Fervo named to prestigious list of climate tech companies to watch

top honor

Houston-based Fervo Energy has received yet another accolade—MIT Technology Review named the geothermal energy startup to its 2025 list of the 10 global climatetech companies to watch.

Fervo, making its second appearance on the third annual list, harnesses heat from deep below the ground to generate clean geothermal energy, MIT Technology Review noted. Fervo is one of four U.S. companies to land on the list.

Fervo “uses fracking techniques to create geothermal reservoirs capable of delivering enough electricity to power massive data centers and hundreds of thousands of homes,” MIT Technology Review said.

MIT Technology Review said it produces the annual list to draw attention to promising climatetech companies that are working to decarbonize major sectors of the economy.

“Though the political and funding landscape has shifted dramatically in the US since the last time we put out this list,” MIT Technology Review added, “nothing has altered the urgency of the climate dangers the world now faces — we need to rapidly curb greenhouse gas emissions to avoid the most catastrophic impacts of climate change.”

In addition to MIT Technology Review’s companies-to-watch list, Fervo has appeared on similar lists published by Inc.com, Time magazine and Climate Insider.

In an essay accompanying MIT Technology Review’s list, Microsoft billionaire Bill Gates said his Breakthrough Energy Ventures investment group has invested in more than 150 companies, including Fervo and another company on the MIT Technology Review list, Redwood Materials.

In his essay, Gates wrote that ingenuity is the best weapon against climate change.

Yet climate technology innovations “offer more than just a public good,” he said. “They will remake virtually every aspect of the world’s economy in the coming years, transforming energy markets, manufacturing, transportation, and many types of industry and food production. Some of these efforts will require long-term commitments, but it’s important that we act now. And what’s more, it’s already clear where the opportunities lie.”

In a recent blog post highlighting Fervo, Gates predicted geothermal will eventually supply up to 20 percent of the world’s electricity, up from his previous estimate of as much as 5 percent.

Fervo is one of the pioneers in geothermal energy. Gates and other investors have pumped $982 million into Fervo since its founding in 2017. With an estimated valuation of $1.4 billion, Fervo has achieved unicorn status, meaning its valuation as a private company exceeds $1 billion.

Aside from Breakthrough Energy Ventures, oilfield services provider Liberty Energy is a Fervo investor. U.S. Energy Secretary Chris Wright was chairman and CEO of Denver-based Liberty Energy before assuming his federal post.

Axios reported on Oct. 1 that Fervo is raising a $300 million series E round, which would drive up the startup’s valuation. News of the $300 million round comes as the company gears up for a possible IPO, according to Axios.

Fervo co-founder and CEO Tim Latimer told Axios this spring that a potential IPO is likely in 2026 or 2027. Ahead of an IPO, the startup is aiming for a $2 billion to $4 billion valuation, Axios reported.

The first phase of Fervo’s marquee Cape Station geothermal energy plant in Utah is scheduled to go online next year, with the second phase set to open in 2028. Once it’s completed, the plant will be capable of generating 500 megawatts of power. This summer, the startup said it secured $205.6 million in capital to finance construction of the plant.

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