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Houston-based developer claims $98 million tax equity investment for Texas energy storage facility

seeing green

Plus Power's storage facility, being built on 13 acres in Comal County, is scheduled to come online this spring. Photo courtesy of Plus Power

The Woodlands-based Plus Power has collected an estimated $98 million tax equity investment for its 200-megawatt Ebony Energy Storage facility near San Antonio.

Plus Power says the investment from Solana Beach, California-based Greenprint Capital Management will help stabilize the Energy Reliability Council of Texas (ERCOT) power system “during dynamic summer demand and cold winter storms while helping to integrate more renewable energy into the grid.”

The storage facility, being built on 13 acres in Comal County, is scheduled to come online this spring.

Peter DeFazio, managing director of Greenprint, calls Plus Power “a first mover” among owner-operators of standalone battery energy storage facilities in the U.S. Plus Power owns a portfolio of large-scale lithium-ion battery systems in more than 25 states and Canada.

“As the state and the country experience increasingly extreme temperatures, we are proud that our projects can provide grid services that will help ERCOT increase reliability and meet abnormally high demand,” says Josh Goldstein, chief financial officer of Plus Power.

By this summer, Plus Power expects to be operating four storage plants in the ERCOT market with 800 megawatts of total capacity.

Plus Power announced in 2023 that it completed a $1.8 billion financing for Ebony and four other projects in Texas and Arizona. The financing included $196 million in construction and term financing for the Comal County project.

Plus Power has announced its Oahu, Hawaii, facility is up and running. Photo via pluspower.com

Houston clean energy company goes online with Hawaii facility

aloha

Houston-based Plus Power announced it has begun operating a new facility on Oahu, Hawaii.

The Kapolei Energy Storage, or KES, facility is “the most advanced grid-scale battery energy storage system in the world,” which will help transition the state's electric power from coal and oil to solar and wind, according to the company.

The KES battery project is located on 8 acres of industrial land on the southwest side of Oahu near Honolulu, and will use 158 Tesla Megapack 2 XL lithium iron phosphate batteries. It will offer the grid 185 megawatts of total power capacity and 565 megawatt-hours of electricity. This will act as an electrical "shock absorber" that will be served by combustion-powered peaker plants to respond in 250 milliseconds according to Power Plus.

"This is a landmark milestone in the transition to clean energy," Brandon Keefe, Plus Power's executive chairman, says in a news release. "It's the first time a battery has been used by a major utility to balance the grid: providing fast frequency response, synthetic inertia, and black start. This project is a postcard from the future — batteries will soon be providing these services, at scale, on the mainland."

The KES plant interconnects three of Hawaiian Electric's critical power generation facilities, which can enable KES to support the reboot of power plants in the event of a state-wide emergency.The KES batteries will help replace the grid capacity formerly provided by an AES coal power plant.

By June 2024, Plus Power aims to operate seven large-scale battery energy storage plants across Arizona and Texas. Last year, the company secured $1.8 billion in new financing for a handful of ongoing projects — most of which are in Texas.

Five of Plus Power's projects received financing from nearly a dozen financial partners. Photo courtesy of Plus Power

Houston renewable energy storage developer secures $1.8B in financing

money moves

A Houston company that develops standalone battery energy storage systems has reportedly secured $1.8 billion in new financing for a handful of ongoing projects — most of which are in Texas.

"Over the last year, Plus Power has raised an unparalleled amount of capital for standalone storage projects from a wide range of leading energy project finance banks and investors," Josh Goldstein, CFO of Plus Power, says in a news release. "This capital will support the ongoing buildout of the largest and most diverse portfolio of standalone storage projects in the U.S. The scale highlights our first-mover advantage in bringing high-quality projects to market as well as the tremendous work by our fantastic team."

The funding will be distributed to the following projects, which are expected to have a total of 1,040 megawatts of capacity, according to the release:

  • The 250-megawatt Sierra Estrella Energy Storage facility in Avondale, Arizona, west of Phoenix will use $707 million of the financing — $202 million of tax equity and a $505 million construction, term loan, and letter of credit facility from Bank of America. Expected to deliver by summer of next year, the 11-acre facility will be the largest to date for a standalone energy storage project, according to Plus Power.
  • $212.2 million of tax equity financing from Foss & Company, as well as $276 million of construction and term financing, for the 300 MW / 600 MWh Rodeo Ranch Energy Storage facility in Pecos.
  • $196 million of construction and term financing for the 200 MW / 400 MWh Ebony Energy Storage facility in Comal County, northeast of San Antonio.
  • $200 million of construction and term financing for the 200 MW / 400 MWh Anemoi Energy Storage facility in Hidalgo County, on the Mexican border northwest of Matamoros.
  • $196 million construction, term loan and letter of credit facility for the 90 MW / 360 MWh Superstition Energy Storage project in Gilbert, southeast of Phoenix.

The $884 million committed to three new standalone storage facilities in Texas bring Plus Power's current ERCOT portfolio to 800 MW. Deutsche Bank and First Citizens Bank were the coordinating lead arrangers, per the news release.

"Plus Power is a market leader in the battery energy storage sector and we are honored to have collaborated with them on these breakthrough financings," Jeremy Eisman, managing director and head of Infrastructure & Energy Financing at Deutsche Bank, says in a statement. "We acknowledge the important role that battery storage plays in ensuring a clean and reliable electric grid and look forward to continuing to support the Plus Power team's continued growth in this sector."

Plus Power's portfolio includes large-scale lithium-ion battery systems across 25 states and Canada. The company reports that three of the projects will be completed before next year's summer heat rolls back in.

Originally founded in San Francisco in 2018, Plus Power moved its HQ to Houston last year. The company recently signed a lease for nearly 7,000 square feet at Three Hughes Landing in The Woodlands. The company previously was based in coworking space at the Rayford Office Park in Spring.

Plus Power, which recently relocated its HQ to Houston, has moved into a larger office space. Image via cushmanwakefield.com

Energy storage startup moves into larger Houston-area space, plans to grow team

expansion plans

A Northern California-born energy storage startup has established its headquarters in The Woodlands.

Plus Power, which develops battery systems designed to store backup power for electric grids, recently signed a lease for nearly 7,000 square feet at Three Hughes Landing in The Woodlands. The company previously was based in coworking space at the Rayford Office Park in Spring.

The company, founded in 2018, shifted its headquarters from San Francisco to the Houston area last year.

“We chose The Woodlands for its beauty, and walkable access to great nearby hotels, restaurants, and healthy groceries,” says Brandon Keefe, CEO of Plus Power. “A Houston base reflects our deep focus on the Texas market, as we are investing nearly $1 billion in several projects here that will be online by the first quarter of 2024, with more in [the works] behind that.”

About 40 employees work from Plus Power’s new office in The Woodlands. Across North America, the company employs about 130 people, including several in Austin. As of July 10, the startup listed nine job openings.

Plus Power develops, owns, and operates utility-scale systems that store energy in huge lithium-ion batteries during low-demand periods. In times of peak demand, power providers can tap into this stored energy.

“Standalone energy storage is rapidly transforming the U.S. energy markets, because it is cheaper than new natural gas plants, faster to build than fossil peakers or transmission, and able to perform diverse energy services,” the company explains in its job postings.

Peakers are backup power plants that run on fossil fuels.

One of Plus Power’s storage facilities is the 100-megawatt Gambit project, which opened two years ago in Angleton. The nearly eight-acre facility supports power supplies for the Electric Reliability Council of Texas (ERCOT), which runs the power grid for 90 percent of Texas.

The company says the Angleton facility has fed backup energy to ERCOT during this year’s and last year’s heatwaves, as well as last December’s winter freeze.

The Gambit facility might ring a bell with some folks in the Houston area. In January 2022, Austin-based automaker Tesla unveiled a backup power storage facility in Angleton. Plus Power bought the project from Tesla in June 2022.

Plus Power’s development pipeline contains 10 gigawatts’ worth of energy storage projects in 28 states and Canada. That includes massive projects on tap for Hawaii and Arizona.

Last November, Plus Power announced it had secured $219 million in debt financing for construction of the 185-megawatt Kapolei project on a roughly eight-acre site in Oahu, Hawaii. The facility will be tied to Hawaiian Electric’s power grid. Mizuho Securities USA and KeyBank led the financing.

This April, Plus Power held a groundbreaking ceremony for the Sierra Estrella project in Tolleson, a Phoenix suburb. The 250-megawatt system will serve Salt River Project (SRP), a utility provider in the Phoenix area. The roughly 11-acre Tolleson facility is set to open next year, as is another Plus Power project for SRP — the 90-megawatt Superstition facility in Gilbert, another Phoenix suburb.

As its development pipeline demonstrates, Plus Power is firmly plugged into the fast-growing energy storage market.

According to the Houston-based energy research and consulting firm Wood Mackenzie and the American Clean Power Association, the U.S. energy storage market installed a record-breaking 4.8 gigawatts of capacity in 2022. This year, that number is projected to approach 75 gigawatts.

In a March 2023 news release, John Hensley, the clean power group’s vice president of research and analytics, says the U.S. market “is on a rapid growth curve and is already a key component of building a resilient grid that supports abundant clean energy.”

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Investors from Houston and Boston fuel Greentown with $4M commitment

next era

Greentown Labs, a climatetech incubator with locations in the Houston and Boston areas, has announced it has received funding from a mix of investors.

The $4 million in funding came from both of the Houston and Massachusetts locations. Houston investors included Bobby Tudor, CEO of Artemis Energy Partners and chairman of the Houston Energy Transition Initiative; David Baldwin, co-founder of OpenMinds and TEX-E and partner at SCF Partners; and Rice University. Other investors included MassDevelopment and the City of Somerville.

“The challenges of the energy transition are immense, and the role played by technology incubators like Greentown Labs is essential,” Tudor says in a news release. “We believe this role, which is a partnership between academia, industry, philanthropists, entrepreneurs, and governments, is the best way to get to effective, scalable solutions in a time frame that the urgency of the challenge requires. We need all hands on deck, and this partnership between Massachusetts and Texas can be a role model for others.”

According to Greentown, the funding will support its financial position and contribute to preparing the incubator for its next chapter of supporting its its leadership team prepare for Greentown’s next chapter supporting and growing its 575 startups.

“Greentown’s mission aligns closely with the Houston Energy Transition Initiative’s goal of accelerating global solutions to address the dual challenge of meeting growing energy demand globally while also significantly reducing CO2 emissions,” adds Steve Kean, president and CEO of the Greater Houston Partnership.

With the announcement of the funding, Greentown named its board members, including Tudor, who will serve as Greentown Labs Board Chair. The other Houston-based board members are:

  • David Baldwin, co-founder of OpenMinds and TEX-E; partner atSCF Partners
  • Bob Harvey, former president and CEO of GHP; board member of TEX-E
  • Jane Stricker, senior vice president of energy transition and executive director of HETI

“With this new funding, Greentown is poised to expand its impact across its existing ecosystems and support even more climatetech startups,” adds Kevin Dutt, interim CEO of Greentown Labs. “We believe in the essential role entrepreneurship will play in the energy transition and we’re grateful for the support of our partners who share in that belief and our collective commitment to commercializing these technologies as quickly and efficiently as possible.”

According to Greentown, the incubator plans to announce its new CEO in the coming months.

2 Houston companies invest in innovative carbon-converting tech from Rice University

freshly funded

A Canadian company based on tech originating out of Rice University closed an equity financing round of up to $20 million thanks to two Houston-based companies.

NewTech Investment Holdings and Westlake Innovations Inc. led Universal Matter's investment round, which the company expand its graphene-based dispersion capacity technology that can be used for servicing customers and prospective customers in its target markets.

“Our continuing interest at NewTech is to seek out and invest in advanced materials companies having high potential to deliver disruptive technologies and environmental benefits within the cleantech sector,” NewTech Investment Holdings Managing Director Guy Hoffman says in a news release. “Universal Matter stands out with its game-changing graphene manufacturing process for producing high quality products that help reduce the carbon footprint in hard- to-abate sectors, such as cement concrete and bitumen asphalt-based applications.

Universal Matter's Flash Joule Heating process technology — originating out of Rice University's James Tour lab by scientist Duy Luong — can upcycle carbon into fully formulated graphene-based products to enhance the performance and sustainability of major industrial materials, per the company's release. Universal Matter developed the complementary product technologies with its Genable graphene-based dispersions that equate to ease-of-use by fabricators in major global markets that include cement/concrete, bitumen asphalt, industrial coatings, automotive tires, and others.

“Graphene is a material with a number of potential performance and sustainability benefits that could apply across a number of Westlake’s ‘Performance & Essential Materials and Housing & Infrastructure Products’ business lines,” Westlake's Senior Vice President and Managing Director John Chao says in the release. “We look forward to working with Universal Matter and its management team as it moves forward on development and commercialization of its flexible technology.”

This year, Universal Matter participated in the Greentown Go Make program put on by Greentown Labs and Shell. During the program, Universal Matter worked with Shell to identify eight potential collaboration areas across upstream carbon feedstocks, downstream end-use applications for the startup’s graphene, and more.

METRO rolls out electric shuttles for downtown Houston commuters

seeing green

The innovative METRO microtransit program will be expanding to the downtown area, the Metropolitan Transit Authority of Harris County announced on Monday.

“Microtransit is a proven solution to get more people where they need to go safely and efficiently,” Houston Mayor John Whitmire said in a statement. “Connected communities are safer communities, and bringing microtransit to Houston builds on my promise for smart, fiscally-sound infrastructure growth.”

The program started in June 2023 when the city’s nonprofit Evolve Houston partnered with the for-profit Ryde company to offer free shuttle service to residents of Second and Third Ward. The shuttles are all-electric and take riders to bus stops, medical buildings, and grocery stores. Essentially, it works as a traditional ride-share service but focuses on multiple passengers in areas where bus access may involve hazards or other obstacles. Riders access the system through the Ride Circuit app.

So far, the microtransit system has made a positive impact in the wards according to METRO. This has led to the current expansion into the downtown area. The system is not designed to replace the standard bus service, but to help riders navigate to it through areas where bus service is more difficult.

“Integrating microtransit into METRO’s public transit system demonstrates a commitment to finding innovative solutions that meet our customers where they are,” said METRO Board Chair Elizabeth Gonzalez Brock. “This on-demand service provides a flexible, easier way to reach METRO buses and rail lines and will grow ridership by solving the first- and last-mile challenges that have hindered people’s ability to choose METRO.”

The City of Houston approved a renewal of the microtransit program in July, authorizing Evolve Houston to spend $1.3 million on it. Some, like council member Letitia Plummer, have questioned whether microtransit is really the future for METRO as the service cuts lines such as the University Corridor.

However, the microtransit system serves clear and longstanding needs in Houston. Getting to and from bus stops in the city with its long blocks, spread-out communities, and fickle pedestrian ways can be difficult, especially for poor or disabled riders. While the bus and rail work fine for longer distances, shorter ones can be underserved.

Even in places like downtown where stops are plentiful, movement between them can still involve walks of a mile or more, and may not serve for short trips.

“Our microtransit service is a game-changer for connecting people, and we are thrilled to launch it in downtown Houston,” said Evolve executive director Casey Brown. “The all-electric, on-demand service complements METRO’s existing fixed-route systems while offering a new solution for short trips. This launch marks an important milestone for our service, and we look forward to introducing additional zones in the new year — improving access to public transit and local destinations.”

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This article originally ran on CultureMap.

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