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USDA announces $1.4 billion solar, battery energy project in rural South Texas to cut climate pollution

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The USDA has announced a $1.4 billion investment to transition San Miguel Electric Cooperative in rural South Texas to a 600-megawatt solar and battery energy system, aiming to reduce climate pollution and create jobs by 2027.

The United States Department of Agriculture recently announced that San Miguel Electric Cooperative Inc., located in Christine, Texas, in Atascosa County, just outside of San Antonio, will transition its operations to produce 600 megawatts of energy using solar panels and a battery energy storage system (BESS).

The project is expected to reduce climate pollution by 1.8 tons annually, equivalent to removing 446,000 cars from the road each year, says USDA.

The project with the San Miguel Electric Cooperative plans to use more than $1.4 billion investment to procure 600 megawatts of renewable energy through solar voltaic panels and a battery energy storage system to power 47 counties across rural South Texas. The clean project also hopes to support as many as 600 jobs.

This is part of the over $4.37 billion in clean energy investments through the United States Department of Agriculture’s (USDA) Empowering Rural America (New ERA) Program, which has rural electric cooperatives supporting the economy via job creation, lowering electricity costs for businesses and families and reducing climate pollution. The New ERA was made possible by President Joe Biden’s Inflation Reduction Act, which was the largest investment in rural electrification since President Franklin Delano Roosevelt signed the Rural Electrification Act into law in 1936.

San Miguel plans to convert its operations to a 400-megawatt solar generation facility and 200-megawatt battery storage facility, and the transition should be complete by 2027. Currently, San Miguel produces 391 megawatts of electricity through a contract with South Texas Electric Cooperative (STEC).

“USDA is committed to enhancing the quality of life and improving air and water in our rural communities,” Secretary Tom Vilsack says in a news release. “The Inflation Reduction Act’s historic investments enable USDA to partner with rural electric cooperatives to strengthen America’s energy security and lower electricity bills for hardworking families, farmers and small business owners.”

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Texas House Democrats urge Trump administration to restore $250M solar grant

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Eight Democratic members of the U.S. House from Texas, including two from Houston, are calling on the Trump administration to restore a nearly $250 million solar energy grant for Texas that’s being slashed by the U.S. Environmental Protection Agency (EPA).

In a letter to Lee Zeldin, head of the EPA, and Russell Vought, director of the federal Office of Management and Budget (OMB), the House members urged the two officials to reinstate the nearly $250 million grant, which was awarded to Texas under the $7 billion Biden-era Solar for All program. The Texas grant was designed to assist 28,000 low-income households in installing solar panels, aiming to reduce their energy bills.

“This administration has improperly withheld billions in congressionally appropriated funding that was intended to benefit everyday Americans,” the letter stated.

The letter claimed that numerous court rulings have determined the EPA cannot repeal already allocated funding.

“Congress made a commitment to families, small businesses, and communities across this country to lower their utility bills and reduce harmful pollution through investments in clean energy. The Solar for All program was part of that commitment, and the EPA’s actions to rescind this funding effectively undermine that congressional intent,” the House members wrote.

The six House members who signed the letter are:

  • U.S. Rep. Sylvia Garcia of Houston
  • U.S. Rep. Al Green of Houston
  • U.S. Rep. Greg Casar of Austin
  • U.S. Rep. Jasmine Crockett of Dallas
  • U.S. Rep. Lloyd Doggett of Austin
  • U.S. Rep. Julie Johnson of Dallas
  • U.S. Rep. Marc Veasey of Fort Worth

The nearly $250 million grant was awarded last year to the Harris County-led Texas Solar for All Coalition.

In a post on the X social media platform, Zeldin said the recently passed “One Big Beautiful Bill” killed the Greenhouse Gas Reduction Fund, which would have financed the $7 billion Solar for All program.

“The bottom line is this: EPA no longer has the statutory authority to administer the program or the appropriated funds to keep this boondoggle alive,” Zeldin said.

Big developments for Fervo, Hertha, Oxy, and more energy news to know

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Editor's note: There have been major developments in the local energy transition sector in September, including big funding for Hertha Metals, a powerful partnership for Fervo, and a launch on the horizon for Oxy. Below are the five most-read EnergyCaptialHTX stories from September 1-14.

1. Houston-area sustainable steel company emerges from stealth with $17M in VC funding

U.S. Rep. Morgan Luttrell, a Magnolia Republican, and Hertha Metals founder and CEO Laureen Meroueh toured Hertha’s Conroe plant in August. Photo courtesy Hertha Metals/Business Wire.

Conroe-based Hertha Metals, a producer of substantial steel, has hauled in more than $17 million in venture capital from Khosla Ventures, Breakthrough Energy Fellows, Pear VC, Clean Energy Ventures and other investors. The money has been put toward the construction and the launch of its 1-metric-ton-per-day pilot plant in Conroe, where its breakthrough in steelmaking has been undergoing tests. The company uses a single-step process that it claims is cheaper, more energy-efficient and equally as scalable as conventional steelmaking methods. The plant is fueled by natural gas or hydrogen. Continue reading.

2. Fervo Energy selects Baker Hughes to supply geothermal tech for power plants

Fervo Energy has tapped Baker Hughes to supply technology to five power plants at Cape Station, its flagship geothermal power generation project in Utah. Photo courtesy Fervo Energy.

Houston-based geothermal energy startup Fervo Energy has tapped Houston-based energy technology company Baker Hughes to supply geothermal equipment for five Fervo power plants in Utah. The equipment will be installed at Fervo’s Cape Station geothermal power project near Milford, Utah. The project’s five second-phase, 60-megawatt plants will generate about 400 megawatts of clean energy for the grid. Financial terms of the deal weren’t disclosed. Continue reading.

3. Oxy's $1.3B Texas carbon capture facility on track to​ launch this year

Vicki Hollub, president and CEO of Occidental, said the company's Stratos DAC project is on track to begin capturing CO2 later this year. Photo via 1pointfive.com

Houston-based Occidental Petroleum is gearing up to start removing CO2 from the atmosphere at its $1.3 billion direct air capture (DAC) project in the Midland-Odessa area. Vicki Hollub, president and CEO of Occidental, said during the company’s recent second-quarter earnings call that the Stratos project — being developed by carbon capture and sequestration subsidiary 1PointFive — is on track to begin capturing CO2 later this year. Continue reading.

4. Houston foundation doles out $700K for Texas chemical research

The Welch Foundation has awarded funding through two of its newest grant programs. Photo via Getty Images.

Houston-based The Welch Foundation has issued $700,000 in additional funding to support chemical research through two of its newest grant programs. The foundation has named the recipients of its Welch eXperimental (WelchX) Collaboration Retreat and Pilot Grants and the Welch Postdoctoral Fellows of the Life Sciences Research Foundation Grants. The WelchX grants were awarded to teams of two Texas researchers who presented "innovative and collaborative ideas" addressing challenges in the clean energy space, according to the foundation. Continue reading.

5. 10+ Houston energy transition events to attend in September 2025

The 22nd annual Energy Tech Venture Forum takes place September 18. Photo courtesy of Rice

September is full of must-attend energy transition events. Get the details on the top energy happenings in September 2025, and begin registering today (some of the largest events happen this week). Continue reading.

Energy Tech Nexus announces international startups to pitch at Pilotathon

Ready, Set, Pitch

Energy Tech Nexus will host its Pilotathon and Showcase as part of Houston Energy & Climate Startup Week next Tuesday, Sept. 16, featuring insightful talks from industry leaders and pitches from an international group of companies in the clean energy space.

This year's event will center around the theme "Energy Access and Resilience." Attendees will hear pitches from nine Pilotathon pitch companies, as well as the 14 companies that were named to Energy Tech Nexus' COPILOT accelerator earlier this year.

COPILOT partners with Browning the Green Space, a nonprofit that promotes diversity, equity and inclusion (DEI) in the clean energy and climatetech sectors. The Wells Fargo Innovation Incubator (IN²) at the National Renewable Energy Laboratory backs the COPILOT accelerator, where companies are tasked with developing pilot projects for their innovations.

The nine Pilotathon pitch companies include:

  • Ontario-based AlumaPower, which has developed a breakthrough technology that converts the aluminum-air battery into a "galvanic generator," a long-duration energy source that runs on aluminum as a fuel
  • Calgary-based BioOilSolv, a chemical manufacturing company that has developed cutting-edge biomass-derived solvents
  • Atlanta-based Cultiv8 Fuels, which creates high-quality renewable fuel products derived from hemp
  • Newfoundland-based eDNAtec Inc., a leader in environmental genomics that analyzes biodiversity and ecological health
  • Oregon-based Espiku Inc., which designs and develops water treatment and mineral extraction technologies that rely on low-pressure evaporative cycles
  • New York-based Fast Metals Inc., which has developed a chemical process to extract valuable metals from complex toxic mine tailings that is capable of producing iron, aluminum, scandium, titanium and other rare earth elements using industrial waste and waste CO2 as inputs
  • New Jersey-based Metal Light Inc., which is building a circular, solid metal fuel that will serve as a replacement for diesel fuel
  • Glasgow-based Novosound, which designs and manufactures innovative ultrasound sensors using a thin-film technique to address the limitations of traditional ultrasound with applications in industrial, medical and wearable markets
  • Calgary-based Serenity Power, which has developed a cutting-edge solid oxide fuel cell (SOFC) technology

The COPILOT accelerator companies include:

  • Accelerate Wind
  • Aquora Biosystems Inc.
  • EarthEn
  • Electromaim
  • EnKoat
  • GeoFuels
  • Harber Coatings Inc.
  • Janta Power
  • NanoSieve
  • PolyQor Inc.
  • Popper Power
  • Siva Powers America
  • ThermoShade
  • V-Glass Inc.

Read more about them here.

The Pilotathon will also include a keynote from Taylor Chapman, investment manager at New Climate Ventures; Deanna Zhang, CEO at V1 Climate Solutions; and Jolene Gurevich, director of fellowship experience at Breakthrough Energy. The Texas Climate Tech Collective will present its latest study on the Houston climate tech and innovation ecosystem.

CEOs Moji Karimi of Cemvita, Laureen Meroueh of Hertha Metals and others will also participate in a panel on successful pilots. Investors from NetZero Ventures, Halliburton Labs, Chevron, Saudi Aramco, Prithvi VC and other organizations will also be on-site. Find registration information here.

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