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$135 million Houston battery storage facility breaks ground

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SMT Energy, CenterPoint and Irby Construction have broken ground on a 160-megawatt battery energy storage system in ERCOT's Houston zone. Photo via Getty Images

SMT Energy and CenterPoint Energy have partnered with utility infrastructure solutions provider Irby Construction Company to break ground on a 160 megawatt battery energy storage system (BESS) located in the Houston zone of the ERCOT market.

“We are proud to be underway and deliver this grid-strengthening project to Houston,” Kevin Midei, SVP of engineering, procurement and construction, at SMT Energy, said in a news release.

The BESS, SMT Houston IV, is expected to support grid stability, deliver fast-response power during peak demands and provide resiliency and renewable integration. The project is expected to be online by 2026 and store and dispatch enough electricity to power 8,800 homes in Texas annually.

SMT Energy is the project owner and developer, and CenterPoint Energy will serve as the interconnecting utility, integrating the system into Houston’s broader electrical network,” according to the companies. Irby Construction will serve as the engineering, procurement, and construction (EPC) contractor, and construction of the project is expected to be completed by July. On May 14, the companies broke ground with a ribbon-cutting ceremony to symbolize the start of the build.

“Projects like this demonstrate how collaboration and forward-thinking infrastructure come together to power a more resilient energy future,” Tony Gardner, SVP and chief customer officer at CenterPoint, said in a news release. “At CenterPoint, we recently completed nearly 90 percent of our overall grid resiliency improvements. This is one more action we are taking to build a more resilient and reliable grid to better serve our customers.”

In March, Colorado-based SMT Energy secured $135 million in funding for the SMT Houston IV, led by Macquarie and KeyBanc Capital Markets as joint lead arrangers. In 2023, SMT Energy and joint venture partner SUSI Partners announced plans to add 10 battery storage projects to Texas, which would double capacity from 100 megawatts to 200 megawatts in the Houston and Dallas areas.

In 2019, Irby began construction on the Manatee BESS site with Florida Power and Light (FPL), which was the world’s largest BESS project at the time. Irby has built over 30 BESS sites and has more than 20 currently under construction or contract.

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China-based Trina Storage is starting its U.S. expansion in Houston. Photo via trinasolar.com

China-based company to launch its largest U.S. energy storage project in Houston

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Trina Storage and FlexGen, a North Carolina-based company that develops integrated energy storage systems, are bringing a 371-megawatt battery energy storage system to Houston. The project will be the largest grid-scale deployment project in North America by Trina Storage, which is a business unit of China-based Trina Solar.

"This project is a testament to Trina Storage's ability to provide a fully bankable, integrated energy storage solution that meets the evolving needs of the market," Terry Chen, vice president of Trina Storage North America, said in a news release. "As our first grid-scale deployment in North America, this achievement reflects the industry's confidence in our technology and our commitment to de-risking energy storage investments and supporting the energy transition in the region."

The project, developed by Boulder, Colorado-based SMT Energy, will utilize Trina Storage's advanced Elementa 2 battery storage system, which is designed to optimize energy performance and reliability. The system uses Trinas proprietary lithium iron phosphate cells that are more than 95 percent energy efficient, according to the company.

FlexGen will provide system integration and use its HybridOS energy management software. The HybridOS allows site operators to manage systems, detect issues faster and predict maintenance needs.

"This collaboration with Trina Storage and SMT Energy represents another major step in accelerating the deployment of flexible energy storage assets to meet growing demand," Diane Giacomozzi, COO at FlexGen, added in the release. "By pre-integrating FlexGen HybridOS with Trina's Elementa 2 energy storage solution in our Durham Innovation Lab, we're enabling faster project delivery and optimized performance from the first moment of operation."

Trina Storage currently has 10 energy storage facilities in China and two in the UK. The Houston facility is part of its plans to expand across the U.S., according to a LinkedIn post form the company.

SMT Energy is expected to bring a new battery storage facility online next year to support the ERCOT grid. Photo via Getty Images

$135 million in funding secured for new Houston battery storage facility

battery expansion

Boulder, Colorado-based SMT Energy has secured $135 million in funding for a 160-megawatt battery energy storage facility, dubbed SMT Houston IV, according to an announcement.

The new facility will work to support the ERCOT grid by providing access to stored energy. The project is expected to be online by 2026 and store and dispatch enough electricity to power 8,800 homes in Texas annually.

Macquarie and KeyBanc Capital Markets were joint lead arrangers in a $100 million project financing facility. Macquarie's Commodities and Global Markets business will also provide a preferred equity investment and are mandated to sell the project's investment tax credits of approximately $62 million, according to SMT. KeyBanc will also act as a financial advisor to SMT.

North Carolina-based battery energy storage integrator FlexGen Power Systems will obtain equipment for the project. The project will also use FlexGen's energy management system software. The software provides site integration, site control and advanced analytics insights to maximize the availability and operating ranges of battery energy storage assets.

"FlexGen is proud to partner with SMT Energy on the deployment of the SMT Houston IV project, which will deliver critical services to the dynamic ERCOT power grid," Jason Abiecunas, Executive Vice President of Business Development with FlexGen said in the release.

In 2023, SMT Energy and joint venture partner SUSI Partners announced plans to add 10 battery storage projects to Texas, doubling capacity from 100 megawatts to 200 megawatts in the Houston and Dallas areas. SMT has a 2 gigawatt per hour pipeline of battery energy storage projects in ERCOT and Southwest Power Pool targeted for commercial operation by 2030, according to the release.

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Houston nonprofit launches new energy education platform

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The Energy Education Foundation, a Houston-based nonprofit, will roll out a new app-based education platform just in time for back-to-school season.

Starting this fall, EEF will offer its new EnergyXP platform to students in middle schools and through community and education events across the country. The STEM-focused platform aims to boost exposure to oil and gas concepts and career paths, according to a release from the non-profit.

EnergyXP represents a fully redesigned, interactive version of the foundation's former Mobile Energy Learning Units, which now feature upgraded technology, enhanced curricula and app integration.

“EnergyXP marks the most recent development in our educational initiatives. We aim to inspire students nationwide to explore real-world energy concepts and careers,” Kristen Barley, executive director of the Energy Education Foundation, said in the release. “Our collaborative approach involves strong partnerships with educators, industry experts and local organizations to ensure that our programs are responsive to community needs. By prioritizing equitable access to quality STEM education, we can help build a more inclusive, future-ready energy workforce.”

The new platform offers 16 hands-on and digital STEM activities that introduce a variety of energy concepts through real-world applications while "showcasing the relevance of energy in everyday life," according to the release.

EEF will host two virtual sneak peeks of the platform on Aug. 7 and Aug. 8. Register here.

Enbridge's new Texas solar project to power Meta data centers

solar deal

Construction is underway on a new 600-megawatt solar project in Texas that will supply renewable energy to Meta Platforms Inc., the owner of Facebook, Instagram and other tech platforms.

Calgary-based Enbridge Inc., whose gas transmission and midstream operations are based in Houston, announced that Meta has agreed to purchase 100 percent of the power generated by its new $900 million solar project known as Clear Fork.

The clean energy developed at Clear Fork will be used to support Meta’s data center operations, according to a news release from Enbridge. Meta has had net-zero emissions across its operational portfolio since 2020, according to its 2024 environmental report. The company matches 100 percent of its data center usage with renewable energy.

"We are thrilled to partner with Enbridge to bring new renewable energy to Texas and help support our operations with 100% clean energy, " Urvi Parekh, Head of Global Energy at Meta, said in a news release.

The Clear Fork project is expected to be operational by the summer of 2027. It will join Enbridge’s first solar power project in Texas, Orange Grove, which was activated earlier this year, as well as the company’s Sequoia solar project, which is scheduled to go online in early 2026.

"Clear Fork demonstrates the growing demand for renewable power across North America from blue-chip companies who are involved in technology and data center operations," Matthew Akman, executive vice president of corporate strategy and president of power at Enbridge, said in the news release. "Enbridge continues to advance its world-class renewables development portfolio using our financial strength, supply chain reach and construction expertise under a low-risk commercial model that delivers strong competitive returns."

Energy experts: Executive order enhances federal permitting for AI data centers

Guest column

In an effort to accelerate the development of artificial intelligence, President Trump signed an executive order (EO) aimed at expediting the federal permitting process for data centers, particularly those supporting AI inference, training, simulation, or synthetic data generation.

Following the White House’s issuance of a broader AI Action Plan, the EO seeks to streamline regulatory burdens and utilize federal resources to encourage the development of data centers supporting AI, as well as the physical components and energy infrastructure needed to construct and provide power to these data centers.

Qualifying Projects

The EO directs several federal agencies to take actions to incentivize the development of “Qualifying Projects,” which the EO defines as “Data Centers” and “Covered Component Projects.” The EO defines “Data Center Projects” as facilities that require over 100 megawatts (MW) of new load dedicated to AI inference, training, simulation, or synthetic data generation. The EO defines Covered Component Projects as materials, products, and infrastructure that are required to build Data Center Projects or upon which Data Center Projects depend, including energy infrastructure projects like transmission lines and substations, dispatchable base load energy sources like natural gas, geothermal, and nuclear used principally to power Data Center Projects, and semiconductors and related equipment. For eligibility as a Qualifying Project, the project sponsor must commit at least $500 million in capital expenditures. Data Center Projects and Covered Component Projects may also meet the definition of Qualifying Project if they protect national security or are otherwise designated as Qualifying Projects by the Secretary of Defense, Secretary of the Interior, Secretary of Commerce, or Secretary of Energy.

Streamlining Permitting of Qualifying Projects

The EO outlines the following strategies aimed at improving the efficiency of environmental reviews and permitting for Qualifying Projects:

  • NEPA Applicability: The Council on Environmental Quality (CEQ), in coordination with relevant agencies, is directed to utilize existing and new categorical exclusions under the National Environmental Policy Act (NEPA) to cover actions related to Qualifying Projects, which “normally do not have a significant effect on the human environment.” The EO states that where federal financial assistance represents less than 50 percent of total project costs of a Qualifying Project, the Project shall be presumed not to be a “major Federal action” requiring NEPA review.
  • FAST-41: The Executive Director of the Federal Permitting Improvement Steering Council (FPISC) is empowered to designate a Qualifying Project as a “transparency project” under the Fixing America’s Surface Transportation Act (FAST-41) and expedite its transition from a transparency project to a “covered project” under FAST-41. FPISC is directed to consider all available options to designate a Qualifying Project as a FAST-41 covered project, even where the Qualifying Project may not be eligible.
  • EPA Permitting: The US Environmental Protection Agency (EPA) is directed to modify applicable regulations under several environmental protection statutes impacting the development of Qualifying Projects on federal and non-federal lands. EPA is also directed to develop guidance to expedite environmental reviews for identification and reuse of Brownfield and Superfund Sites suitable for Qualifying Projects. Importantly, state environmental permitting agencies are not subject to the EO.
  • Corps Permitting: The US Army Corps of Engineers is directed to review the nationwide permits issued under Section 404 of the Clean Water Act and Section 10 of the Rivers and Harbors Act of 1899 to determine whether an activity-specific nationwide permit is needed to facilitate the efficient permitting of activities related to Qualifying Projects.
  • Interior Permitting: The US Department of the Interior is directed to consult with the US Department of Commerce regarding the streamlining of Endangered Species Act consultations for Qualifying Projects, and to work with the US Department of Energy to identify federal lands that may be available for use by Qualifying Projects and offer appropriate authorizations to project sponsors.

Federal Incentives for Qualifying Projects

The EO also directs the US Secretary of Commerce to “launch an initiative to provide financial support for Qualifying Projects,” which may include loans, grants, tax incentives, and offtake agreements. The EO further directs all “relevant agencies” to identify and submit to the White House Office of Office of Science and Technology Policy any relevant existing financial support that can be used to assist Qualifying Projects, consistent with the protection of national security.

The EO reinforces the Trump administration’s focus on AI and creates new opportunities for both AI data center developers and energy infrastructure companies providing power or project components to these data centers. Proactive engagement with relevant agencies will be crucial for capitalizing on the opportunities created by this EO and the broader AI Action Plan. By leveraging these financial and environmental incentives, project developers may be able to shorten permitting timelines, reduce costs, and take advantage of federal financial support.

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Jason B. Hutt, Taylor M. Stuart and Anouk Nouet are lawyers at Bracewell. Hutt is chair of the firm’s environment, lands and resources department. Stuart counsels energy, infrastructure, and industrial clients on matters involving environmental and natural resources law and policy. Nouet advises clients on litigation, enforcement and project development matters with a focus on complex environmental and natural resources law and policy.

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