AB Energy USA is moving into The Woodlands Towers at The Waterway. Photo courtesy AB Energy USA.

An Italian renewable energy company has picked The Woodlands for its North American headquarters.

AB Energy USA will occupy about 11,000 square feet in The Woodlands Towers at The Waterway. The company expects to add about 45 jobs in The Woodlands this year. Beginning in 2027, AB Energy USA will add another 30 jobs over a five-year period.

The new headquarters will be the corporate and governance hub for all of AB Energy’s North American subsidiaries. AB Energy, an arm of Italy-based AB, supplies renewable natural gas systems for industrial, commercial and data center customers. AB has operated in the U.S. since 2014.

“Establishing our North American headquarters in the Energy Capital of the World is a strategic step in AB’s long-term commitment to the U.S. market,” Paolo Ruggeri, North American CEO for AB Energy USA, said in a news release. “Houston gives us access to world-class engineering and energy talent, and strengthens our ability to attract and grow a high-performing team.”

Jevon Gibb, CEO of The Woodlands Area Economic Development Partnership, said several markets competed for AB Energy’s North American headquarters.

“AB’s decision to establish its North American headquarters here demonstrates The Woodlands’ competitiveness for both international companies and energy sector leaders,” Gibb said.

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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Japanese company plans $357M solar manufacturing plant in Houston area

coming soon

Japanese solar manufacturing company TOYO Co. Ltd. plans to invest $357 million to bring a 1.5-gigwatt solar cell manufacturing facility to the Houston area.

TOYO’s latest state-of-the-art facility will be co-located at its existing solar module site in Humble, according to a news release from the company. It will produce heterojunction (HJT) solar cells, which are known to be more durable and efficient with a higher heat threshold.

TOYO reports that the new facility will create 400 full-time manufacturing jobs. The project is expected to be completed in 20 months, which includes an initial pilot production.

"Expanding into domestic cell manufacturing is the natural next step in our commitment to creating an integrated onshore solar supply chain from polysilicon to panels," Takahiko Onozuka, chairman and CEO of TOYO, said in the news release. "Co-locating 1.5 GW of HJT cell capacity at our Houston module site significantly optimizes our capital allocation and infrastructure spend.”

TOYO entered the Houston market in 2024 through its acquisition of a majority stake in Solar Plus Technology Texas LLC.

Earlier this year, it began producing solar modules at its 567,140-square-foot plant in Lovett Industrial’s Nexus North Logistics Park. At the time, the company said it planned to expand manufacturing capacity to 6.5 gigawatts.

"The new cell plant reflects TOYO's long-term strategy to build a fully FEOC-compliant domestic manufacturing platform focused on serving the needs of the U.S. utility-scale solar market," Rhone Resch, TOYO's chief strategy officer, added in the release. "By producing premium solar products in the United States, we will be well positioned to meet the market's evolving domestic content requirements while strengthening supply chain security and reliability. Looking ahead, we believe HJT is the optimal technology platform for integrating next-generation perovskite solar cells, which we expect will drive the next major advancement in solar conversion efficiency and support TOYO's long-term technology roadmap.”

New survey reveals concerns over AI data center growth in Houston

data findings

A new report out of the University of Houston shows that area residents remain wary of the long-term effects of operating data centers.

The recent survey from the University of Houston’s latest SPACE City Panel, conducted by the Center for Public Policy at the Hobby School of Public Affairs, shows that while 85 percent of Houston-area residents use AI, nearly 63 percent oppose the construction of AI data centers within 1 mile of their homes.

Respondents’ concerns centered around data centers’ high energy demand and the area’s power grid reliability. According to the survey, 32 percent of residents who oppose local data center projects would be more likely to support the centers if they relied on renewable energy over fossil fuels.

“Respondents understand that AI can bring economic and educational benefits, but they are also concerned about the physical infrastructure needed to fuel AI, especially data centers,” Soran Mohtadi, post-doctoral fellow at the Hobby School and a researcher on the report, said in a news release. “This physical infrastructure demands more electricity and water, leading to environmental impacts.”

Experts estimate that 6.5 gigawatts of data center capacity will be added to the Texas grid by 2030. And Houston’s data center capacity is predicted to more than double by 2028.

The Electric Reliability Council of Texas also projects electricity demand could reach 218 gigawatts by 2031, which would be more than double the record peak set in August 2023. Data centers are expected to account for 86 gigawatts of that new demand.

Survey respondents also said they are concerned about the state's future water supply, given the large amounts of water that data centers need to stay cool.

In terms of who’s responsible for that issue, 57.6 percent of respondents said they put the onus on Texas lawmakers, while 31.5 percent say tech companies should be responsible.

Additionally, more than 75 percent of respondents believed that data center developers and technology companies—not residents—should bear the cost of infrastructure upgrades to support data centers.

“Every decision legislators make has implications on residents’ everyday lives and local infrastructure now and in the future,” Maria P. Perez Arguelles, lead researcher on the report and research assistant professor at the Hobby School, added in the news release. “This issue is going to become more important in years to come, so this is just the beginning.”

Read the full report here.

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This article originally appeared on our sister site, EnergyCapitalHTX.com.

American Airlines and Google ink record-breaking deal for cleaner jet fuel

SAF DEAL

Fort Worth-based American Airlines has sealed a record-breaking deal with tech giant Google to bolster the use of cleaner jet fuel.

The deal involves Google’s purchase of sustainable aviation fuel certificates tied to fuel that American will use at Chicago O’Hare International Airport, one of the airline’s hubs. These certificates enable companies like Google to pay for the environmental benefits of sustainable jet fuel without actually using the fuel.

American and Google say this is the largest publicly announced certificate deal between an airline and a corporate customer.

Google says environmental gains from the certificates will help it cut emissions from employees’ business travel.

The agreement covers 35 million gallons of sustainable aviation fuel over three years, resulting in a nearly 300,000 metric tons of carbon dioxide equivalent emissions. American has agreed to buy the fuel from San Antonio-based Valero.

“Our industry-leading agreement with Google is a critical step forward in reducing emissions from our operations,” Jill Blickstein, American’s chief sustainability officer, said in a news release. “By working with leaders like Google who share our commitment to innovation, we’re helping to grow demand for [cleaner jet fuel] and support the development of a stronger, more resilient market.”

Sustainable aviation fuel can reduce emissions by up to 80 percent compared with traditional jet fuel. It is made from feedstocks, like waste oil and fats, or it can be produced synthetically using captured carbon dioxide and renewable electricity.

The aviation industry accounts for about 2.5 percent of carbon dioxide emissions around the world, according to the International Energy Agency.