more power

New agreement to bring more energy in Texas online

The three plants are all connected to ERCOT, with two of them being in Houston and its surrounding areas. Photo via totalenergies.com

Houston, we have some (more) power. TotalEnergies has signed an agreement with TexGen to acquire $635 million three gas-fired power plants with a total capacity of 1.5 GW in Texas.

The three plants are all connected to ERCOT, with two of them being in Houston and its surrounding areas. The transaction is subject to approval by relevant authorities.

Houston’s plants will include a La Porte site with a 150 MW OCGT, southeast of Houston, and south of Houston’s Colorado Bend I plant with a 530 MW CCGT and a 74 MW open-cycle gas turbine (OCGT). The two added plants may provide flexibility and added insurance to meet the high demands of the summer heat in Texas. The third plant will be Wolf Hollow I plant with a 745 MW combined-cycle gas turbine (CCGT) plant outside of Dallas.

According to TotalEnergies, the locations of the plants will help serve the massive energy demand of the large cities and will help to offset the “intermittency of renewable power production,” as well as “the importance of the plants was highlighted during weather events that impacted power generation from renewable assets in Texas,” or was met with high demands.

The deal includes 1.5 GW additional flexible production capacity acquired by TotalEnergies that will complement its renewable capacity in Texas , which is currently 2 GW gross installed, 2 GW under construction and more than 3 GW under development .

“"We are delighted with the agreement signed with TexGen to acquire 1.5 GW of CCGT in ERCOT, “said Stephane Michel, President Gas Renewables & Power at TotalEnergies in a news release. “After the signing of several corporate PPA over the last couple of years and the recent start-up of the utility-scale Myrtle solar plant, this deal is a major milestone for our Integrated Power strategy in the ERCOT market. These plants will enable us to complement our renewable assets, intermittent by nature, provide our customers with firm power, and take advantage of the volatility of electricity prices.

"This acquisition will contribute positively to our profitability target of 12% ROACE by 2028 for our Integrated Power business segment,” Michel continues.

The Myrtle solar plant opened last month just outside of Houston.

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A View From HETI

Hertha Metals has broken ground on its new iron and steel “innovation complex." Photos courtesy Hertha Metals

Shortly after announcing a $133.65 Series A funding round, Conroe-based Hertha Metals broke ground Oct. 8 on a $100 million factory that will produce steel-grade and magnet-grade high-purity iron.

Hertha’s Chalyx plant, located in Conroe, will manufacture a total of about 10,000 metric tons per year of magnet-grade and steel-grade high-purity iron. The factory will use Hertha’s single-step process to generate high-purity iron for rare-earth-magnet and steel manufacturers in the U.S.

Hertha says Chalyx will be the first U.S. commercial plant for production of magnet-grade high-purity iron.

Chalyx is being built next to Hertha’s headquarters and its Pi100 pilot plant, which will remain in operation. Chalyx and Pi100 will form the first modern-day iron and steel “innovation complex” in the U.S., the company says.

“I founded Hertha Metals because I believed we could significantly improve how the world makes iron and steel from ore, and that an industry so fundamental to our future still had enormous room for invention,” Laureen Meroueh, founder and CEO of Hertha, said in a press release.

The 4-year-old startup says the Chalyx complex will lay the foundation for its first 500,000-ton-per-year steel mill.

Chalyx’s first priority is making high-purity iron for U.S. manufacturers of rare-earth magnets, Hertha says. These magnets are critical components for electric vehicles, data centers, wind turbines and defense systems.

China produces an estimated 94 percent of high-purity iron for rare-earth magnets, according to Hertha.

Aside from iron for rare-earth magnets, Chalyx will make iron and steel for pilot projects in the steel industry.

The plant is expected to come online in late 2027, with production of magnet-grade high-purity iron starting in early 2028.

Today, Hertha employs 32 people, the company says. Once it’s fully operating, the Chalyx plant will employ about 50 people.

Just ahead of the groundbreaking, Hertha announced the $133.65 million Series A round, co-led by Khosla Ventures and Doerr Capital. The round included a $65 million equity investment from the Pentagon.

“Iron and steel have shaped human progress for thousands of years. And I believe there is still an enormous amount left to invent,” Meroueh said at the groundbreaking ceremony.

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