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

Houston energy transition folks — here's what to know to start your week. Photo via Getty Images

Editor's note: Dive headfirst into the new week with three quick things to catch up on in Houston's energy transition: a podcast episode with a biotech leader, a very big oil and gas deal, and events not to miss.


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Events not to miss

Put these Houston-area energy-related events on your calendar.

  • The Energy Drone & Robotics Summit is coming to Houston June 10 to 12. Join for the ultimate event in the world for UAVs, Robotics & Data/AI, 3D Reality Capture, Geospatial and Digital Twins focused on the business and technology in energy & industrial operations, inspections, maintenance, surveying & mapping. Register now.
  • Argus Clean Ammonia North America Conference will take place on June 12 to 14 at the Hyatt Regency Houston. Over the three days of the conference, explore the big questions many producers are facing around where demand is coming from, expect to hear perspectives from key domestic consumers as well as international demand centres for clean ammonia. Register now.
  • Join the over 150 senior energy and utilities leaders from June 17 to 18 in Houston for AI in Energy to unlock the potential of AI within your enterprise and delve into key areas for its development.Register now.
  • Energy Underground (June) is a group of professionals in the Greater Houston area that are accelerating the Energy Transition that connect monthly at The Cannon - West Houston. Register now.

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