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Houston microgrid company scores $2.1M grant for hydrogen blending tech research

fresh funding

Enchanted Rock specializes in electrical-resiliency-as-a-service for sectors such as health care, manufacturing, and government infrastructure. Photo via enchantedrock.com

A Houston-based provider of electric microgrids has scooped up a $2.1 million grant from the California Energy Commission for development of technology aimed at reducing greenhouse gasses and other natural gas emissions.

Enchanted Rock shares the grant with the University of California Riverside, or UCR.

“This is an exciting opportunity to further advance the potential use of hydrogen fuel blends for commercialization and market adoption,” Thomas McAndrew, founder and CEO of Enchanted Rock, says in a news release. “We believe in using the cleanest fuel available without compromising on reliability or performance for our customers and are dedicated to helping California, and the nation, achieve its climate and energy goals.”

The use of a hydrogen and natural gas blend for fueling generators shows promise for reducing emissions and improving efficiency, according to Enchanted Rock. The company says the funding will enable it to identify the ideal blend of natural gas and hydrogen for operating a natural generator while improving performance and minimizing emissions.

As part of the grant, UCR’s College of Engineering-Center for Environmental Research and Technology (CE-CERT) will play a key role in measuring emissions and combustion performance. Meanwhile, Palomar College in San Marcos, California, will host a field demonstration site.

”Hydrogen is one of the ‘low-hanging fruit’ solutions to decarbonize our transportation system and other sectors where emissions are hard to abate, and it can serve as a zero-carbon green fuel for internal combustion off-road and highway engines,” says UCR professor Georgios Karavalakis.

Founded in 2006, Enchanted Rock specializes in electrical-resiliency-as-a-service for sectors such as health care, manufacturing, and government infrastructure. The company’s dual-purpose microgrids rely on natural gas and renewable natural gas to produce lower carbon emissions and air pollutants than diesel generators.

In December, Enchanted Rock said it had teamed up with U.S. Energy to supply renewable natural gas for Microsoft’s new data center in San Jose, California, during grid outages and when businesses are directed to reduce power usage.

A carbon neutral data center back-up grid is coming soon to Microsoft — thanks to tech from a Houston company. Photo by Christina Morillo/Pexels

Houston energy resiliency company collaborates on carbon-neutral grid project for Microsoft data center

sustainable support

Microsoft is one step closer to its goals of being carbon negative by 2030 thanks to a new initiative involving a Houston energy company.

Houston-based Enchanted Rock has teamed up to provide its electrical resiliency-as-a-service and ultra-low-emission generators to Microsoft’s new data center in San Jose, California.

Along with Wisconsin-based U.S. Energy, a vertically integrated energy solutions provider, the partnership will procure renewable natural gas for the data center during grid outages and when California’s Base Interruptible Power is activated. Previously, Microsoft announced its plans for carbon neutrality by 2030.

“Enchanted Rock has always been committed to using the cleanest fuel available without compromising on reliability for our customers,” Thomas McAndrew, founder and CEO of Enchanted Rock, says in a news release. “After announcing our renewable natural gas solution in 2021 and this particular Microsoft data center project in 2022, we’re proud to be taking this important next step toward seeing this key technology in operation."

Enchanted Rock, founded in 2006, provides microgrid technology that use natural gas and renewable natural gas, providing for lower emissions and pollution than diesel generators. The company also provides a software platform, GraniteEcosystem, for users for constant management, analytics, and more.

The RNG for the will be delivered by U.S. Energy and sourced from diverted food waste. Per the release, the agreement allows for flexibility in the amount of RNG supplied, which is scheduled to begin being procured by early 2026, so that the initiative will meet its evolving standards for emissions reduction.

“Energy resilience is crucial with data centers like this one,” president of U.S. Energy, Mike Koel, says in the release. “Through our portfolio of 40 renewable natural gas projects, we’re able to ensure our customers have the supply needed to meet any additionality requirements. As we continue to grow our portfolio, our partnership with Enchanted Rock will help more organizations take that next step in their carbon reduction goals.”

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Houston energy co. names new COO to scale offshore decommissioning

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Houston-based Promethean Energy has named a new COO as it looks to scale.

Martyn Fear, former CEO of Altamesa Energy Canada Inc., will assume the role, the company announced last week. He brings decades of experience at energy companies such as BP and Maersk Oil and has held board positions at several private equity and venture-backed firms.

“Promethean has built a differentiated platform for managing and retiring late-life assets safely, efficiently, and responsibly,” Fear said in a news release. “The industry is facing a structural shift as decommissioning moves to the forefront, and the opportunity to combine operational excellence, disciplined project delivery, and innovative commercial models is incredibly compelling."

Promethean has developed an environmentally sustainable, integrated model for late-life asset management and offshore well decommissioning. Fear will oversee day-to-day operations at Promethean and the execution of this integrated operator-service model as the company looks to scale and expand to new markets.

“Martyn is a proven leader with a deep operational track record and a passion for building high-performance, safety-first organizations,” Aditya Singh, Promethean's CEO, added in the release. “As Promethean enters its next phase—scaling our integrated operator-service model and delivering first-time-right decommissioning at pace—his experience in transforming complex asset portfolios and leading global teams makes him the ideal COO to drive operational execution while we continue to advance our strategic vision.”

Last May, the company successfully decommissioned offshore orphaned wells in the Matagorda Island lease area. In November, it also announced that it had completed a multi-client project to safely plug and abandon an orphaned well on a storm-damaged platform in the South Timbalier lease area.

Both projects were based in the Gulf of Mexico, where Promethean is looking to grow.

Fervo taps new geothermal site and more energy transition news to know

Trending Topics

Editor's note: We're looking back at the biggest energy transition headlines from the second half of February, including Fervo's hottest well to date and the future of data centers in Texas. Below are the five most-read EnergyCapital stories from February 16-28, 2026.

1. Fervo taps into its hottest-ever geothermal reservoir

Fervo Energy has unlocked multigigawatt potential from a new geothermal energy site. Photo courtesy Fervo Energy.

Things are heating up at Houston-based geothermal power company Fervo Energy. Fervo recently drilled its hottest well so far at a new geothermal site in western Utah. Fewer than 11 days of drilling more than 11,000 feet deep at Project Blanford showed temperatures above 555 degrees Fahrenheit, which exceeds requirements for commercial viability. Fervo used proprietary AI-driven analytics for the test. Continue reading.

2. Texas could topple Virginia as biggest data-center market by 2030, JLL report says

A new report shows the role Texas could play as the data-center sector enters "hyperdrive." Photo via JLL.com.

Everything’s bigger in Texas, they say—and that phrase now applies to the state’s growing data-center presence. A new report from commercial real estate services provider JLL says Texas could overtake Northern Virginia as the world’s largest data-center market by 2030. Northern Virginia is a longtime holder of that title. Continue reading.

3. Texas claims No. 1 spot on new energy resilience report

Texas outpaced the rest of the country in a new energy resilience report, despite grid challenges and rising AI demand. Photo courtesy of ERCOT

A new report by mineral group Texas Royalty Brokers ranks Texas as the No. 1 most energy-resilient state. The study focused on four main sources of electricity in hydroelectric dams, natural gas plants, nuclear reactors and petroleum facilities. Each state was given an Energy Resilience Score based on size and diversity of its power infrastructure, energy production and affordability for residents. Continue reading.

4. Texas' oil and gas foundation could boost its geothermal future, UH says

A new UH white paper says that Texas is poised to lead advanced geothermal due to its oil and gas skills and capacity. Photo via UH.edu.

Equipped with the proper policies and investments, Texas could capitalize on its oil and gas infrastructure and expertise to lead the U.S. in development of advanced geothermal power, a new University of Houston white paper says. Continue reading.

5. HETI leader reflects on four years focused on the energy transition

Jane Stricker reflects on four years at HETI. Courtesy photo

It’s hard to believe only four years have passed since I joined the Greater Houston Partnership to lead the Houston Energy Transition Initiative. We talk about COVID years feeling simultaneously like just yesterday and a lifetime ago, and my time at HETI feels quite similar. The energy and climate landscape has evolved dramatically over the last few years, but one constant has endured…Houston remains at the heart of the energy industry. Continue reading.

5+ must-attend Houston energy events in March: CERAWeek and more

Mark Your Calendar

Editor's note: March is a major month for energy industry events in Houston, including CERAWeek and more must-attend summits and forums. Mark your calendars for the top events of the month, and register now.

March 2-4 — The Future Energy Summit

The Future Energy Summit is a premier global event bringing together visionaries, industry leaders, and energy experts to shape the future of energy. The second edition of the conference will provide a platform for groundbreaking discussions, cutting-edge technologies, and transformative strategies that will accelerate the energy transition.

This event begins March 2. Register here.

March 5 — 2026 Houston CISO Forum

The Energy Conference Network hosts an exclusive, executive-level cybersecurity leadership event for those in the energy industry. The 50-person, half-day forum will bring together chief information security officers, senior cybersecurity leaders, and industry experts for candid conversations, actionable insights, and peer collaboration.

This event takes place March 5 at Hyatt Regency Houston West. Limited registration available here.

March 10-12 — World Hydrogen & Carbon Americas

S&P Global Energy brings together two leading events — Carbon Management Americas and World Hydrogen North America — to form a new must-attend event for those in the hydrogen and carbon industries. More than 800 senior leaders from across the energy value chain will attend this event featuring immersive roundtable discussions, hands-on training, real-world case studies, and unparalleled networking opportunities.

This event begins March 10 at Marriott Marquis Houston. Register here.

March 23-27 — CERAWeek 2026

CERAWeek 2026 will focus on "Convergence and Competition: Energy, Technology and Geopolitics." The industry's foremost thought leaders will convene in Houston to cultivate relationships and exchange transformative ideas during the annual event. CERAWeek 2026 will explore breakthroughs, cross-industry connections, and powerful partnerships that are accelerating the transformation of the global energy system. 2026 highlights include an appearance by tech magnate Bill Gates.

This event begins March 23. Register here.

March 24-25 — 2026 Energy Venture Day and Pitch Competition

The Energy Venture Day and Pitch Competition, co-hosted by the Rice Alliance, Ion, HETI, and TEX-E, offers two days of exciting pitches from more than 40 global energy ventures that are transforming the industry. On Tuesday, March 24, you can attend a fast-paced pitch preview event at the Ion, followed by the official Pitch Competition at 1 pm on Wednesday, March 25, at George R. Brown Convention Center.

More details available here.

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