Around the Gulf

AROUND THE GULF

TEXAS

Large Solar Project Launched in Delta County

Enel North America, the American subsidiary of the Italian company, has officially launched its Estonian Solar project in Texas, which features 202 MW of solar capacity paired with a 104-MW battery energy storage system. The project is supported by power purchase agreements (PPAs) with BXP Inc. and Capri Holdings Limited, the parent company of luxury brands such as Versace and Jimmy Choo.  Located in Delta County, the Estonian Solar project is projected to produce approximately 499 GWh of electricity annually.  As one of the largest renewable energy operators in Texas, Enel has around 5 GW of installed wind and solar capacity and 1.3 GW of battery storage capacity. The company has signed over 100 PPAs, totaling more than 7.3 GW of contracted capacity, and continues to focus on North America as a key investment region.  Read more

Pipeline Companies Fined for Obstructing Inspectors

Federal inspectors investigating a carbon dioxide pipeline replacement project faced intimidation and obstruction by employees of Exxon-owned pipeline company Denbury and its contractor, Republic Testing Laboratories. The incidents of intimidation occurred at Republic’s LaPorte, Texas, facility and included blocking inspectors from interviewing welders, performing tests without inspectors present, being mocked, and setting up barriers to obstruct inspectors’ view.  The Pipeline and Hazardous Materials Safety Administration (PHMSA) has proposed a $2.4 million fine against both companies. This latest proposed fine follows a $2.8 million penalty Denbury agreed to pay for a 2020 pipeline rupture in Satartia, Mississippi, which hospitalized 45 people and marked the second largest penalty issued by PHMSA.   Read more

Oil and Gas Groups Seek Texas Approval of Carbon Capture Projects

Six Texas oil, gas, and industrial groups, including the Texas Oil and Gas Association and the Texas Association of Manufacturers, urged new EPA Administrator Lee Zeldin to expedite Texas’ request for authorization to approve carbon capture and storage (CCS) projects. This request aims to allow Texas to manage its own underground carbon storage, thereby alleviating the federal backlog that has slowed such project approvals.  The groups highlighted that Texas is currently home to 43 projects under review, accounting for one-third of all applications in the U.S. Texas seeks to become the fifth state to gain approval for CO2 injection permitting from the EPA. They estimate that CCS projects could inject up to $1.8 billion into the Texas economy. During his confirmation hearing, Zeldin expressed support for carbon capture technology, indicating a favorable stance toward facilitating Texas’ request.  Read more

Houston Clean Tech Company Announces Layoffs

Syzygy Plasmonics, a prominent Houston clean tech startup known for its innovative photoreactor technology, announced plans to lay off more than half its workforce—68 employees—by the end of March. This decision may be emblematic of challenges facing the local clean tech industry amid Trump administration policies that prioritize fossil fuels and traditional energy sources.  The company, which has raised over $100 million in funding and has ties to Mitsubishi Heavy Industries America, filed notices with the Texas Workforce Commission outlining the layoffs, with 58 positions eliminated at its Pearland headquarters and 10 at its Houston office. CEO Trevor Best explained that the layoffs result from a global slowdown in clean technology deployment and an overall lag in the energy transition, prompting the company to adjust its operations to align with current market conditions. Founded in 2018, Syzygy Plasmonics develops technology aimed at lowering the cost and emissions associated with hydrogen production, potentially offering a cleaner alternative to fossil fuels. Read more

Data Center Company Secures NG Supply

Energy Transfer, a U.S. pipeline operator, has signed a long-term natural gas supply agreement with Denver-based CloudBurst Data Centers for their development in Central Texas.  Data centers increasingly seek direct energy supplies due to rising power demands from AI and grid advancements.  Energy Transfer will deliver up to 450,000 million British thermal units of firm natural gas daily through its Oasis Pipeline to CloudBurst’s campus near San Marcos, Texas. This supply can generate nearly 1.2 gigawatts of electric power over at least 10 years, starting with the first phase of CloudBurst’s facilities. The deal marks Energy Transfer’s first direct commercial supply of natural gas to a data center. CloudBurst plans to reach a final investment decision later this year, with operations expected to begin in the third quarter of 2026.  Read more

Texas A&M Advances Plans for Nuclear Reactors

The Texas A&M University System has announced the selection of four companies — Kairos Power, Natura Resources, Aalo Atomics, and Terrestrial Energy — to explore the development of advanced nuclear reactors at its Rellis research campus in Bryan, Texas. This initiative follows Texas A&M’s application for an early site permit from federal regulators, which, if granted by the Nuclear Regulatory Commission, would make the university the only higher education institution in the U.S. with a commercial nuclear reactor site license.  Additionally, Texas A&M is seeking $200 million from the state’s General Fund for infrastructure upgrades at the Rellis Campus to facilitate potential reactor construction. Company executives indicated that if the site aligns with their plans, they hope to have operational reactors within the next decade.  Read more

LOUISIANA

Fortified Roof Program Opens New Round for Awards

Registration for Louisiana’s Fortify Homes Program reopened in February for the first lottery round of 2025. This program offers grants of up to $10,000 to homeowners installing hurricane-resistant roofs and is now in its third year.  This round is specifically for residents in Louisiana’s coastal zone and will be awarded to 1,000 recipients.  To participate, homeowners must create a profile on the program’s website. Those who registered in previous rounds but were not selected must re-register for the current lottery.  Since its inception in October 2023, the Fortify Homes Program has awarded about 1,800 grants. Homeowners are responsible for covering any costs that exceed the $10,000 grant limit. Read more

Auditor’s Report Highlights Louisiana Power Inefficiencies

A report from the Louisiana Legislative Auditor’s Office reveals that Louisiana residents face higher electricity bills than the national average while dealing with one of the least reliable electric grids in the country. The study, titled “Louisiana’s Electric Profile,” highlights several concerning trends from 2010 to 2023, noting that Louisiana is among the least energy-efficient states and that its power grid has the highest number and longest duration of outages in the southern U.S., even when excluding severe weather events.  Louisiana’s electricity generation is heavily reliant on natural gas, comprising about 72% of the state’s generation portfolio. This dependency makes the system vulnerable to large-scale failures during extreme weather. From 2013 to 2023, the frequency of outages increased by 14.3%, and the average duration of outages rose by 76.4%, reaching 9.7 hours in 2023. Entergy Louisiana, a major utility provider, attributed grid reliability issues to the state’s unique geography and environmental risks, while also highlighting recent investments in grid improvements. Read more

Lawsuit Alleges Illegal Tax Agreement by Local Government and Port of South Louisiana

The Port of South Louisiana and St. John the Baptist Parish Sheriff Mike Tregre are facing a lawsuit filed by the Descendants Project, an advocacy group for descendants of Black slaves in the Louisiana River Parishes. The lawsuit alleges that the port and sheriff illegally forgave millions in taxes owed by Greenfield LLC for a now-abandoned $400 million grain terminal project. The claim asserts that this act violated the Louisiana Constitution, which prohibits entities from loaning or donating anything of value without requiring something in return.  The controversy centers around a $4 million payment in lieu of property taxes  that Greenfield was supposed to pay as part of a complex tax agreement with the port and sheriff. This agreement allowed Greenfield to effectively avoid property taxes on a 248-acre site for the terminal in Wallace, Louisiana, a community predominantly made up of Black residents. The Descendants Project argues that Greenfield could have evaded approximately $200 million in taxes over the lease’s duration.  Despite the agreement, Greenfield abandoned the project in August 2024, citing local opposition and delays in federal permitting from the U.S. Army Corps of Engineers.  Read more

MISSISSIPPI

Data Center Developer Announces $10 Billion Investment In Meridian

Compass Datacenters, a Dallas-based developer, has announced plans to invest $10 billion to build eight data centers in Meridian, Mississippi, over the next eight years. The Mississippi Development Authority will certify Compass Datacenters as a data center operator, enabling the company to benefit from significant tax exemptions, including a 10-year state income and franchise tax exemption as well as a sales and use tax exemption on construction materials and equipment.  Mississippi Power will supply approximately 500 megawatts of power to the new facility.   Read more

Flood Relief Project in South Delta to Proceed

The U.S. Army Corps of Engineers announced it will proceed with a modified version of the Yazoo Pumps project for flood relief in the South Delta, now receiving support from the Environmental Protection Agency (EPA). The project, which aims to address flooding issues exacerbated by record-setting backwater floods, was previously vetoed by the EPA in 2008 due to concerns about potential harm to 67,000 acres of wetlands. The new plan includes mitigation strategies designed to minimize environmental impact, such as adjusting when the pumps operate based on water levels and maintaining certain water levels for aquatic species during low-flow periods.  The project has faced a tumultuous history, with fluctuating support and legal circumstances over the years. The Corps has not yet provided a cost estimate for the project, which is expected to be substantial. Additionally, to further aid residents affected by flooding, the plan includes voluntary buyouts for properties located below the 93-foot elevation mark, affecting 152 homes.  Read more

Service of Coal Plant Units at Plant Victor J. Daniel Extended by PSC

The Mississippi Public Service Commission unanimously approved a special contract to extend the life of a coal unit operated by Mississippi Power. This decision aims to meet the energy demands of a new $10 billion investment project by Compass Datacenters, which plans to build eight data centers within the Mississippi Power service area.  Mississippi Power, a subsidiary of Southern Company, initially planned to close two coal units at Plant Victor J. Daniel by 2027. The retirement date was extended until the mid-2030s due to the predicted increased demand from the data centers.  Read more

ALABAMA

Alabama Power Acquisition Opposed

Public Citizen and other advocacy groups are urging the Federal Energy Regulatory Commission to reject Alabama Power’s proposed acquisition of the 895 MW Lindsay Hill power plant from Tenaska due to concerns about market power. The Alabama Public Service Commission is currently reviewing the deal, which Alabama Power, a subsidiary of Southern Company, claims would result in a $3.80 monthly increase in typical residential electricity bills.  The groups argue that Alabama Power’s ongoing consolidation of generation capacity in the state is alarming, noting that if the Lindsay Hill transaction is approved, the utility would have acquired or built power plants and entered into power purchase agreements  totaling approximately 3,400 MW over the past five years, increasing Alabama Power’s total control to nearly 12,950 MW.  Read more

Birmingham to Explore Solar Power Development

Birmingham City Council is set to authorize the mayor’s office to apply for a grant of up to $250,000 to explore solar power deployment in the city. This funding would come from the Coalition for Green Capital, supported by the U.S. Environmental Protection Agency’s National Clean Investment Fund, which has a $5 billion grant available.  The grant aims to provide technical assistance to study market conditions and develop strategies to facilitate solar energy projects, with no matching funds required from the city. Thomas Yuill, deputy director of the mayor’s Office of Resilience and Sustainability, explained to the Budget and Finance Committee that the focus will primarily be on funding and financing opportunities, along with a feasibility study for solar potential, including possible use of brownfields —contaminated sites — for solar fields.  Read more

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