dream team

University of Houston collaborates with county on future-facing sustainability efforts

Experts from the University of Houston are teaming up with the city on key sustainability efforts.

Researchers at the University of Houston are partnering with the Harris County Office of County Administration’s Sustainability Office, the Harris County Energy Management Team, and other county staff in an effort to develop a comprehensive baseline of energy use and energy-use intensity that will aim to reduce energy costs and emissions in county facilities.

Once fully established, the team will work on tracking progress and evaluating the effectiveness of energy-saving measures over time. They will begin to build the foundation for future programs aimed at maximizing savings, reducing energy consumption, and increasing the use of renewable energy sources in county operations.

Harris County energy managers, Glen Rhoden and Yas Ahmadi, will work with UH professionals, including:

  • Jian Shi, UH Cullen College of Engineering associate professor of engineering technology and electrical and computer engineering
  • Zhu Han, Moores professor of electrical and computer engineering
  • Xidan "Delia" Zhang, UH research intern

The group began collaborating a year ago, and analyzed energy consumption data from county facilities.They were able to successfully identify key summertime energy-saving opportunities and completed retro-commissioning of four county buildings. Those efforts saved over $230,000 annually in electricity costs.

“This project is a prime example of how impactful research at UH can be when applied to real-world challenges, delivering tangible benefits to both the environment and the communities we serve,” Shi says in a news release.

The team will plan to do additional building projects, which includes the development of solar energy and heat pump initiatives, building automation system upgrades, and LED lighting installations. The goal is to reduce electricity usage by at least 5 percent per year for county facilities by 2030 and cut greenhouse gas emissions by 50 percent over the next 5 years for county buildings.

“Addressing climate change and the energy transition requires a collaborative effort that is not only data-driven and action-oriented but also human-centric,” Shi adds. “It’s about more than just technology—it’s about improving the quality of life for Texans.”

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A View From HETI

Fervo Energy has closed financing to support the remaining construction costs for the first phase of Cape Station. Photo via fervoenergy.com

Houston geothermal unicorn Fervo Energy has closed $421 million in non-recourse debt financing for the first phase of its flagship Cape Station project in Beaver County, Utah.

Fervo believes Cape Station can meet the needs of surging power demand from data centers, domestic manufacturing and an energy market aiming to use clean and reliable power. According to the company, Cape Station will begin delivering its first power to the grid this year and is expected to reach approximately 100 megwatts of operating capacity by early 2027. Fervo added that it plans to scale to 500 megawatts.

The $421 million financing package includes a $309 million construction-to-term loan, a $61 million tax credit bridge loan, and a $51 million letter of credit facility. The facilities will fund the remaining construction costs for the first phase of Cape Station, and will also support the project’s counterparty credit support requirements.

Coordinating lead arrangers include Barclays, BBVA, HSBC, MUFG, RBC and Société Générale, with additional participation from Bank of America, J.P. Morgan and Sumitomo Mitsui Trust Bank, Limited, New York Branch.

“As demand for firm, clean, affordable power accelerates, EGS (Enhanced Geothermal Systems) is set to become a core energy asset class for infrastructure lenders,” Sean Pollock, managing director, project Finance at RBC Capital Markets, said in a news release. “Fervo is pioneering this step change with Cape Station, a vital contribution to American energy security that RBC is proud to support.”

The oversubscribed financing marks Cape Station’s shift from early-stage and bridge funding to a long-term, non-recourse capital structure, according to the news release.

“Non-recourse financing has historically been considered out of reach for first-of-a-kind projects,” David Ulrey, CFO of Fervo Energy, said in a news release. “Cape Station disrupts that narrative. With proven oil and gas technology paired with AI-enabled drilling and exploration, robust commercial offtake, operational consistency, and an unrelenting focus on health and safety, we have shown that EGS is a highly bankable asset class.”

Fervo continues to be one of the top-funded startups in the Houston area. The company has raised about $1.5 billion prior to the latest $421 million. It also closed a $462 million Series E in December.

According to Axios Pro, Fervo filed for an IPO that would value the company between $2 billion and $3 billion in January.

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