energy transition materials

DOE grants Houston-area energy tech co. over $5M for rare earth elements study

A company headquartered in The Woodlands has secured funding to study the recovery of rare earth elements as they pertain to the energy transition. Photo via tetratec.com

The Woodlands-based Tetra Technologies, an energy technology and services company, has picked up nearly $5.4 million in U.S. Department of Energy funding to study the recovery of rare earth elements and other critical minerals from coal byproducts in Pennsylvania.

The funding also will enable Tetra to explore converting coal byproducts, known as underclay, into clays that could be sold. In addition to the DOE funding, the company also secured about $1.3 million for a total of $6.7 million.

Publicly traded Tetra got the funding as part of a more than $17 million package aimed at designing and building facilities to produce rare earth elements, along with other critical minerals and materials, from coal resources. The Department of Energy (DOE) says these minerals and materials will go toward generating clean energy.

Rare earth elements can be derived from the country’s more than 250 billion tons of coal reserves, over 4 billion tons of waste coal, and about 2 billion tons of coal ash, according to DOE.

Clean energy fixtures like solar plants, wind farms, and electric vehicles generally require more minerals to build than their fossil-fuel-based counterparts, according to the International Energy Agency. For example, a typical electric car requires six times the mineral resources of a conventional car and an onshore wind plant requires nine times more mineral resources than a gas-fired plant.

The American Geosciences Institute says rare earth elements, a set of 17 metallic elements, also are an essential component of many tech-dependent products. These include cell phones, flat-screen TVs, and radar and sonar systems.

China is the top country for production of rare earth elements, with the U.S. far behind at No. 2.

Trending News

A View From HETI

Chevron plans to launch its first AI data center power project in West Texas in 2027. Photo via Chevron.com

Two of the Houston area’s oil and gas goliaths, Chevron and ExxonMobil, are duking it out in the emerging market for natural gas-powered data centers—centers that would ease the burden on electric grids.

Chevron said it’s negotiating with an unnamed company to supply natural gas-generated power for the data center industry, whose energy consumption is soaring mostly due to AI. The power would come from a 2.5-gigawatt plant that Chevron plans to build in West Texas. The company says the plant could eventually accommodate 5 gigawatts of power generation.

The Chevron plant is expected to come online in 2027. A final decision on investing in the plant will be made next year, Jeff Gustavson, vice president of Chevron’s low-carbon energy business, said at a recent gathering for investors.

“Demand for gas is expected to grow even faster than for oil, including the critical role gas will play [in] providing the energy backbone for data centers and advanced computing,” Gustavson said.

In January, the company’s Chevron USA subsidiary unveiled a partnership with investment firm Engine No. 1 and energy equipment manufacturer GE Vernova to develop large-scale natural gas power plants co-located with data centers.

The plants will feature behind-the-meter energy generation and storage systems on the customer side of the electricity meter, meaning they supply power directly to a customer without being connected to an electric grid. The venture is expected to start delivering power by the end of 2027.

Chevron rival ExxonMobil is focusing on data centers in a slightly different way.

ExxonMobil Chairman and CEO Darren Woods said the company aims to enable the capture of more than 90 percent of emissions from data centers. The company would achieve this by building natural gas plants that incorporate carbon capture and storage technology. These plants would “bring a unique advantage” to the power market for data centers, Woods said.

“In the near to medium term, we are probably the only realistic game in town to accomplish that,” he said during ExxonMobil’s third-quarter earnings call. “I think we can do it pretty effectively.”

Woods said ExxonMobil is in advanced talks with hyperscalers, or large-scale providers of cloud computing services, to equip their data centers with low-carbon energy.

“We will see what gets translated into actual contracts and then into construction,” he said.

Trending News