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DOE deploys more than $10M into Houston-related carbon capture projects

dac funding

Four direct air capture projects with ties to Houston just received federal funding. Photo via Getty Images

Four carbon capture projects with ties to the Houston area have collectively received more than $10 million in funding from the U.S. Department of Energy.

What follows is a funding rundown for the four direct air capture (DAC) projects. DAC pulls carbon dioxide emissions from the atmosphere at any location, while carbon capture generally is done where the emissions happen.

This funding announcement comes on the heels of a subsidiary of Houston-based Occidental receiving about $600 million from the Department of Energy (DOE) for establishment of a DAC hub in South Texas.

Western Regional Direct Air Hub

Houston-based Chevron New Energies, the low-carbon subsidiary of energy giant Chevron USA, is collecting nearly $5 million in funding — $3 million of it from the DOE — for a potential DAC hub in the Bakersfield, California, area.

Chevron says it plans to install equipment at its cogeneration plant in Central California’s San Joaquin Valley so it can inject and permanently store carbon dioxide emissions underground. This is Chevron’s first carbon capture and storage project.

A cogeneration plant produces several forms of energy from a single fuel source.

Last year, Chevron was the lead investor in a $381 million series E funding round for Svante, a Canada-based producer of carbon capture technology.

“Several carbon capture technologies exist today, and they all have important roles to play in addressing the diverse requirements of hard-to-avoid emissions,” Claude Letourneau, president and CEO of Svante, said in a June 2023 announcement about the Central California DAC hub.

Pelican-Gulf Coast Carbon Removal project

Louisiana State University in Baton Rouge has attracted nearly $4.9 million in funding — including nearly $3 million from the DOE — for the proposed Pelican-Gulf Coast Carbon Removal project in the Pelican State. Partners in the Pelican project include the University of Houston and Shell, whose U.S. headquarters is in Houston.

The DAC project would remove CO2 in the atmosphere and permanently store it underground.

Red Rocks DAC Hub

Houston-based Fervo Energy is earmarking earmark its nearly $3.6 million in funding — including almost $2.9 million from the DOE — for development of the Red Rocks DAC Hub in southwest Utah.

Fervo believes more than 10 gigawatts of geothermal resources are available in southwest Utah that would translate into the potential storage of up to 100 million tons of CO2 each year.

“Scaling DAC technology will require abundant clean, firm power and heat to build truly carbon-negative projects,” Fervo says in a LinkedIn post. “As the leader in next-generation geothermal, Fervo is well positioned to support and accelerate the commercial deployment of DAC, while placing Utah at the heart of the energy transition.”

Houston Area DAC Hub

GE Research, the Niskayuna, New York-based R&D arm of General Electric, has scooped up more than $3.3 million in funding — including over $2.5 million from the DOE — to explore creating a DAC hub in the Houston area that would involve clean energy, such as renewable or nuclear power.

The project, being developed in conjunction with Omaha, Nebraska-based energy company Tenaska, would be designed to remove 1 million metric tons of CO2 from the air and permanently store it or use it in a value-add project (or both). Tenaska opened an office in Houston in 2019.

“We know that to truly bring an economical, commercial-scale solution in DAC to the market, it will require a collaborative effort with government, industry, and academic partners,” David Moore, leader of GE’s carbon capture team, said in March 2023. “If we do this right, we could have a commercially deployable DAC solution around the end of this decade.”

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40+ climatetech startups join Greentown, including a dozen from Houston

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More than 40 climatetech startups joined the Greentown Labs Houston community in the second half of 2025. Twelve hail from the Bayou City.

The companies are among a group of nearly 70 that joined the climatetech incubator, which is co-located in Houston and Boston, in Q3 and Q4.

The new companies that have joined the Houston incubator specialize in a variety of clean energy applications, from green hydrogen-producing water-splitting cycles to drones that service wind turbines.

The local startups that joined Greentown Houston include:

  • Houston-based Wise Energie, which delivers turnkey microgrids that blend vertical-axis wind, solar PV, and battery storage into a single, silent system.
  • The Woodlands-based Resollant, which is developing compact, zero-emissions hydrogen and carbon reactors to provide low-cost, scalable clean hydrogen and high-purity carbon for the energy and manufacturing sectors.
  • Houston-based ClarityCastle, which designs and manufactures modular, soundproof work pods that replace traditional drywall construction with reusable, low-waste alternatives made from recycled materials.
  • Houston-based WattSto Energy, which manufactures vanadium redox flow batteries to deliver long-duration storage for both grid-scale projects and off-grid microgrids.
  • Houston-based AMPeers, which delivers advanced, high-temperature superconductors in the U.S. at a fraction of traditional costs.
  • Houston-based Biosimo, which is developing bio-based platform chemicals, pioneering sustainable chemistry for a healthier planet and economy.
  • Houston-based Ententia, which offers purpose-built, generative AI for industry.
  • Houston-based GeoKiln Energy Innovation, which is developing a new way to produce clean hydrogen by accelerating natural geologic reactions in iron-rich rock formations using precision electrical heating.
  • Houston-based Timbergrove, which builds AI and IoT solutions that connect and optimize assets—boosting visibility, safety, and efficiency.
  • Houston-based dataVediK, which combines energy-domain expertise with advanced machine learning and intelligent automation to empower organizations to achieve operational excellence and accelerate their sustainability goals.
  • Houston-based Resonant Thermal Systems, which uses a resonant energy-transfer (RET) system to extract critical minerals from industrial and natural brines without using membranes or grid electricity.
  • Houston-based Torres Orbital Mining (TOM),which develops autonomous excavation systems for extreme environments on Earth and the moon, enabling safe, data-driven resource recovery and laying the groundwork for sustainable off-world industry.

Other startups from around the world joined the Houston incubator in the same time period, including:

More than 100 startups joined Greentown this year, according to an end-of-year reflection shared by Greentown CEO Georgina Campbell Flatter.

Flatter joined Greentown in the top leadership role in February 2025. She succeeded former CEO and president Kevin Knobloch, who stepped down in July 2024.

"I moved back to the United States in March 2025 after six years overseas—2,000 miles, three children, and one very patient husband later. Over these months, I’ve had the chance to hear from the entrepreneurs, industry leaders, investors, and partners who make this community thrive. What I’ve experienced has left me brimming with urgent optimism for the future we’re building together," she said in the release.

According to Flatter, Greentown alumni raised more than $2 billion this year and created more than 3,000 jobs.

"Greentown startups and ecosystem leaders—from Boston, Houston, and beyond—are showing that we can move further and faster together. That we don’t have to choose between more energy or lower emissions, or between increasing sustainability and boosting profit. I call this the power of 'and,'" Flatter added. "We’re working for energy and climate, innovation and scale, legacy industry and startups, prosperity for people and planet. The 'and' is where possibility expands."

NRG makes latest partnership to grow virtual power plant

VPP partners

Houston-based NRG Energy recently announced a new long-term partnership with San Francisco-based Sunrun that aims to meet Texas’ surging energy demands and accelerate the adoption of home battery storage in Texas. The partnership also aligns with NRG’s goal of developing a 1-gigawatt virtual power plant by connecting thousands of decentralized energy sources by 2035.

Through the partnership, the companies will offer Texas residents home energy solutions that pair Sunrun’s solar-plus-storage systems with optimized rate plans and smart battery programming through Reliant, NRG’s retail electricity provider. As new customers enroll, their stored energy can be aggregated and dispatched to the ERCOT grid, according to a news release.

Additionally, Sunrun and NRG will work to create customer plans that aggregate and dispatch distributed power and provide electricity to Texas’ grid during peak periods.

“Texas is growing fast, and our electricity supply must keep pace,” Brad Bentley, executive vice president and president of NRG Consumer, said in the release. “By teaming up with Sunrun, we’re unlocking a new source of dispatchable, flexible energy while giving customers the opportunity to unlock value from their homes and contribute to a more resilient grid

Participating Reliant customers will be paid for sharing their stored solar energy through the partnership. Sunrun will be compensated for aggregating the stored capacity.

“This partnership demonstrates the scale and strength of Sunrun’s storage and solar distributed power plant assets,” Sunrun CEO Mary Powell added in the release. “We are delivering critical energy infrastructure that gives Texas families affordable, resilient power and builds a reliable, flexible power plant for the grid.”

In December, Reliant also teamed up with San Francisco tech company GoodLeap to bolster residential battery participation and accelerate the growth of NRG’s virtual power plant network in Texas.

In 2024, NRG partnered with California-based Renew Home to distribute hundreds of thousands of VPP-enabled smart thermostats by 2035 to help households manage and lower their energy costs. At the time, the company reported that its 1-gigawatt VPP would be able to provide energy to 200,000 homes during peak demand.

Top 10 headlines that fueled Houston energy transition news in 2025

Year in Review

Editor's note: As we ring in a new year, we're looking back at the hottest energy transition topics of 2025. Here are the 10 most-read EnergyCapitalHTX stories of 2025, from a Texas energy startup's $200M funding round to a Houston energy storage company's major ERCOT deal:

Texas energy startup closes $200M round to fund first factory in the state

Base Power, founded by Justin Lopas and Zach Dell, closed a $200 million series B and plans to expand in Texas and around the country. Photo courtesy Base Power.

Base Power, an Austin-based startup that provides battery-powered home energy services and just entered the Houston market, raised $200 million in series B funding. The money was raised for construction of Base Power’s first factory in Texas and the national expansion of Base Power’s services. Last year, the startup landed $68 million in a series A funding round.

Houston startup secures $22 million for ERCOT energy storage projects

Houston's GoodPeak is breaking ground on its first energy storage projects. Photo via Getty Images.

Houston-based GoodPeak nailed down $22 million in construction debt financing to help build its first two 10-megawatt battery energy storage project. GoodPeak secured the debt financing from financial services company Pathward and renewable energy lender BridgePeak Energy Capital.

CenterPoint partners with AI and infrastructure companies to boost reliability

CenterPoint has partnered with Atlanta-based Osmose and Australia-based Neara to use AI-powered predictive modeling to inform decisions on restorations and risk. Photo via Getty Images

Houston utilities giant CenterPoint is partnering with companies from Atlanta and Australia to use AI to increase data accuracy and strengthen the power grid. The partnership is part of a collaboration between AI-powered predictive modeling platform company Neara and utility infrastructure asset assessment solutions company Osmose.

ExxonMobil, Rice launch sustainability initiative with first project underway

Under a new agreement, ExxonMobil and Rice University aim to develop “systematic and comprehensive solutions” to support the global energy transition. Photo via Getty Images.

Houston-based ExxonMobil and Rice University announced a master research agreement to collaborate on research initiatives on sustainable energy efforts and solutions. The agreement included multiple projects that were expected to be underway in 2025.

Houston expert: From EVs to F-35s — materials that power our future are in short supply

No critical minerals, no modern economy. Getty images

If you’re reading this on a phone, driving an EV, flying in a plane, or relying on the power grid to keep your lights on, you’re benefiting from critical minerals. These are the building blocks of modern life. Things like copper, lithium, nickel, rare earth elements, and titanium, they’re found in everything from smartphones to solar panels to F-35 fighter jets. Continue reading this guest column from Houston energy expert Scott Nyquist.

Greentown Labs announces newest startups to join Houston climatetech incubator

Five companies have joined Greentown Labs Houston, specializing in various "green" applications, from converting plastic waste into sustainable materials to developing energy-storage solutions. Photo courtesy Greentown Labs.

Greentown Labs added five startups to its Houston community in Q1 of 2025. The companies are among a group of 19 that joined the climatetech incubator, which is co-located in Houston and Boston, in the same time period. The companies that joined the Houston-based lab specialize in a number of "green" applications, from converting plastic waste into sustainable materials to developing energy-storage solutions.

Houston cleantech company expands into China with hydrogen energy pilot

HNO International is partnering with Zhuhai Topower New Energy Co. to deploy its modular SHEP technology in China. Graphic courtesy of HNO

Hydrogen-based clean energy technology company HNO International announced its first foray into the Chinese market this spring. The company, which is building a state-of-the-art hydrogen production and refueling facility in Katy, entered into an agreement with renewable energy company Zhuhai Topower New Energy Co. This initiative includes a pilot deployment of HNOI’s Scalable Hydrogen Energy Platform, or SHEP, in China.

CenterPoint reports progress on grid improvements ahead of 2025 hurricane season

CenterPoint Energy aims to complete its suite of grid resiliency projects before the 2025 hurricane season. Photo via centerpointenergy.com

As part of an ongoing process to make Houston better prepared for climate disasters, CenterPoint Energy announced its mid-year progress update on the second phase of the Greater Houston Resiliency Initiative (GHRI). CenterPoint reported that it had completed 70 percent of its resiliency work, and that all GHRI-related actions were expected to be complete before the official start of the 2025 hurricane season.

Daikin completes solar plant to power massive Houston-area campus

Daikin Industries' new solar power plant at its Waller-area campus will power its central chiller plant and is designed to connect to the campus' electric grid. Photo courtesy Daikin.

Japanese HVAC company Daikin Industries completed a nearly one-megawatt solar power plant at its Daikin Comfort Technologies North America campus southeast of Waller. Daikin said the new plant at its 4.2 million-square-foot Daikin Texas Technology Park will eliminate an estimated 845 metric tons of carbon emissions each year. The park houses the largest HVAC factory in North America.

Houston earns No. 3 spot among cities with most Fortune 500 headquarters

Twenty-six Houston-area companies landed on the latest Fortune 500 list. Photo via Getty Images

Houston maintained its No. 3 status this year among U.S. metro areas with the most Fortune 500 headquarters. Fortune magazine tallied 26 Fortune 500 headquarters in the Houston area, behind only the New York City area (62) and the Chicago area (30).

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