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Texas Renewable Energy 

Industry Report 

JULY 2012 

www.TexasWideOpenForBusiness.com 

Office of the Governor | Economic Development & Tourism

Contents 

Overview…………………………………………………………………. 1 

Wind Energy………………………………………………..………….. 10 

Solar Energy...….……………………………….……………………… 17 

Biofuels & Biomass.………………………………………….…….. 24 

Key Terms 

This report references a few technical terms to describe energy and power. 

Power is the rate at which electricity flows, often measured in megawatts 

(MW), which is equal to 1,000 kilowatts (kW). 

1 MW of electricity is enough to power roughly 300 homes at a typical rate 

of usage. 

Energy is the total amount of electricity consumed over a period of time, 

often measured in megawatt-hours (MWh). British thermal units (Btu) are 

also used to measure energy. 1 MWh is equal to 3.4 million Btu. 

The U.S. Energy Information Administration estimates the average Texas 

home consumed 77 million Btu of energy in 2009, or 22.56 MWh.

Overview 

F 

or over a century, Texas has been an international 

leader in the oil and gas industry. In recent 

years, the state has built upon its energy 

experience and trained workforce to take the lead in 

renewable energy production and services. As a result, 

Texas is by far the top state in wind generation capacity 

and biodiesel production. 

The Lone Star State’s energy potential is among the 

largest in the nation, with abundant wind, solar, and 

biomass resources found across the state’s geographically 

diverse regions. 

Texas ranks No. 1 in the nation 

for wind energy capacity 

and biodiesel production 

Ernst & Young ranked Texas No. 5 in the nation in its 

All Renewables Index in February 2012. The Index 

accounts for a variety of factors to determine a state’s 

outlook for renewable production in terms of infrastructure, 

political climate, and technology factors, 

with particular emphasis on solar and wind energy. 

The state has developed a strong foundation in the 

growing renewable energy industry. According to a 

report by The Pew Charitable Trusts, over 55,000 

Texans are employed in renewable energy sectors, and 

thousands more work in industries closely tied to the 

renewable energy industry. Texas’ business climate 

encourages renewable technology innovation and 

commercialization, and the state is home to leading 

renewable energy research institutions. 

The Texas Energy Industry 

According to the U.S. Energy Information Administration 

(EIA), Texas is the leading state for overall 

energy production and consumption. The state is also 

the leading producer, importer, and refiner of oil and 

gas products. Innovation in the natural gas industry 

has further solidified Texas’ role as the nation’s energy 

leader over the past few years. Oil and gas will 

always be an important foundation of the energy industry 

and the Texas economy as a whole. 

Renewable energy is a vital component of Texas’ allof-the-above 

strategy for energy independence and 

leadership. Reliance on a single source of energy can 

threaten energy security and heighten price volatility. 

Energy diversification across different sectors (fossil 

fuel, nuclear, and renewable) and geographies (high 

plains wind and coastal wind, for example) can help 

make Texas energy more robust and flexible. A diverse 

energy portfolio can also better respond to 

changing economic and geopolitical conditions. 

Texas Renewable Energy Consumption 2010 

Biomass 

20% 

Wind 57% 

Ethanol 

20% 

Source: U.S. Energy Information Administration 

1 

Hydro 2.7% 

Geothermal 

0.5% 

Solar 0.2%

OVERVIEW 

Renewable Energy in Texas 

While renewable energy has a relatively small impact 

on energy consumption in Texas, its share is growing 

rapidly. Renewable sources accounted for 3.9% of all 

energy consumed in Texas in 2010, according to the 

EIA. This ratio has increased substantially over the 

past decade as renewable energy sources have expanded, 

while total statewide energy consumption has remained 

steady over the past 15 years. 

Wind generation in the state was twelve times larger 

in 2011 than 2002, and wind’s share of the Texas Interconnection 

Region’s electric power generation was 

10.2% over the first six months of 2012. Wind energy 

now comprises over half of Texas’ renewable energy 

usage, followed by biomass and biofuels (see chart on 

page 1). 

Energy Consumption 

(Trillion BTU) 

2 

400 

300 

200 

100 

All Renewable 

0 

Wind 

1985 1990 1995 2000 2005 2010 

The Lady Bird Johnson Middle School became the 

largest net-zero school in the nation when it opened 

in 2011 in Irving, Texas. Net-zero facilities generate as 

much energy as they consume over the course of a 

year. To achieve this goal, the school was designed 

with energy efficiency in mind and renewable energy 

generation on-site. Of the 

school’s $30 million cost, only 

$3.7 million was used specifically 

for the net-zero program. 

The school uses geothermal 

HVAC pumps, passive solar 

lighting, efficient insulation, 

advanced controls to conserve 

energy. As a result, the facility 

The 2000s was the decade wind accelerated in Texas, 

and solar deployment has the potential to be similarly 

meteoric over the current decade. According to ER- 

COT and the Interstate Renewable Energy Council, 

statewide solar generation increased by over 700% 

from 2009 to 2011 alone. Texas currently ranks No. 

13 nationally in installed solar photovoltaic capacity. 

The strength of the Texas biomass and biofuels industry 

lies in the state’s natural resources, skilled 

workforce, and existing petroleum-based infrastructure. 

More biodiesel is made in Texas than in any other 

state, and biomass facilities harvest usable energy 

from landfills, wastewater, and byproducts of forestry, 

livestock, and agriculture across the state. 

Texas Renewable Energy Growth 1985-2010 


Texas Middle School Demonstrates Potential of Renewable Energy 

requires half as much energy as a typical school of 800 

to 1,000 students. Most of this energy will be generated 

on-site from renewable sources. 583 kW of photovoltaic 

solar panels are located on the rooftop, and 

twelve 2.4 kW wind turbines are on the property. 

When the school generates surplus energy, it is sold 

back to the grid. 

The school’s net-zero program 

is more than a cost-saving 

measure; it is also an educational 

tool integrated into the 

curriculum. LBJ Middle School 

students learn how energy 

works in an unique, hands-on 

way.

Electricity Market 

and Distribution 

The Texas Electric Grid 

In the continental United States, the electricity system 

consists of three regions, the Eastern Interconnection, 

the Western Interconnection, and the Texas Interconnection. 

Operated by the Electric Reliability Council 

of Texas (ERCOT), the Texas Interconnection is separated 

from the rest of the nation, making Texas the 

only mainland state with its own grid. As a result, the 

utilities within ERCOT are exempt from most federal 

regulation, making the Texas energy market a 

straightforward market in which to do business. 

ERCOT is a membership-based, non-profit corporation 

whose members include electric consumers, utilities, 

generators, and transmission providers. ERCOT 

works to ensure generation, transmission, and frequency 

regulation services are available to meet the 

state’s energy needs. ERCOT is subject to oversight 

by the Public Utility Commission of Texas (PUC), a 

state agency responsible for monitoring the electric 

and telecommunications industries in the state. 

2011 ERCOT Generation by Fuel Type 

Coal 

39.0% 

Natural 

Gas 

40.4% 

Nuclear 

11.9% 

Wind 

8.5% 

Source: ERCOT 

Hydro 

0.2% 

Other 

0.2% 

SPP: Southwest Power Pool 

SERC: Southeast Electric Reliability Council 

WECC: Western Electricity Coordinating Council 

OVERVIEW 

Source: PUC 

As the map above shows, ERCOT’s Texas Interconnection 

Region covers 75% of the state’s landmass 

and 85% of the electrical load. The 23 million Texans 

within the ERCOT region consumed 333,875 gigawatt 

-hours (GWh) of electricity in 2011. 

The ERCOT region currently has about 84,000 MW 

of installed generation capacity from 550 generators, 

including 9,600 MW of wind installations. In 2011, 

79.4% of energy generated came from fossil fuels 

(natural gas and coal). Nuclear and wind generation 

were also significant contributors (see chart below). 

In 1999, the Texas Legislature restructured the state’s 

electric industry and allowed electricity users to begin 

choosing their Retail Electricity Provider (REP). In 

2002, the law was enacted, thus deregulating the Texas 

electricity market. Deregulation has fostered competition 

among REPs, driving down costs and improving 

service. Deregulation also allows customers to 

receive renewable energy if they wish. At least 26 

REPs in Texas offer a 100% renewable plan to their 

customers as an option. 

3

OVERVIEW 

State Government 

Initiatives 

Renewable Portfolio Standard 

Adopted in 1999, the Texas Renewable Portfolio 

Standard (RPS) required 2,000 MW of new renewable 

energy capacity to be installed statewide by 2009. The 

RPS is administered by the PUC. In August 2005, the 

Texas Legislature extended the RPS to expand the 

state's generating capacity from renewable energy 

sources to 5,880 MW by 2015 and included a target of 

10,000 MW by 2025, with 500 MW coming from 

non-wind sources. The state’s installed capacity 

reached the 10,000-MW target in early 2010—15 

years ahead of schedule. 

The legislation also established requirements for electric 

utilities and other retail electric providers to serve 

a specified amount of customer demand with sources 

of renewable electricity. Thirty Seven states now have 

RPS laws in place, but the Texas RPS has become one 

of the most effective and successful in the nation. 

Texas reached its renewable portportfolio 

target 15 years early 

Business Incentives 

In 2003, the Texas Legislature authorized the $295 

million Texas Enterprise Fund (TEF), a “deal closing” 

fund created to attract businesses and new jobs to Texas. 

The TEF was reauthorized most recently in 2011. 

Through this fund, the state has invested over $4.7 

4 

Renewable Property Tax Exemption 

Residential, commercial, and industrial renewable 

energy devices are exempt from property tax under 

Texas law. This exemption is applicable to 

most renewable technologies, including solar, 

wind, and biomass. 

million in renewable energy-related projects that are 

expected to create over 900 jobs. 

Renewable Franchise Tax Deductions 

Companies solely engaged in manufacturing, selling, 

or installing solar or wind devices are exempt 

from the Texas franchise tax. Other businesses 

that install solar or wind energy systems are eligible 

for a franchise tax deduction of 10% of the 

system’s cost. 

The Texas Emerging Technology Fund (TETF) was 

created by the Texas Legislature in 2005 to provide 

Texas with an advantage in the research, development, 

and commercialization of emerging technologies. The 

TETF was reauthorized most recently in 2011. To 

date, the TETF has awarded nearly $44 million to 

renewable energy-related projects, spanning technologies 

such as solar cells, algae biofuels, and advanced 

batteries. These investments are intended to create 

long-term economic benefits to the state through investments 

in early-stage technology companies, regional 

innovation centers, and academic research recruitment. 

See the table on the following page for 

more information. 

There are a number of sector-specific state government 

initiatives, such as the Texas Biofuels Tax Exemption, 

which are discussed in the wind, solar, and 

biomass sections of this report on pages 14, 22, and 

28.

Texas Emerging Technology Fund 

Renewable Energy-Related Awards 

Recipient Technology Award 

21-Century Silicon Polysilicon $3,500,000 

ActaCell Energy Storage $1,000,000 

Algae Bio Fuels Consortium Research $4,025,000 

BetaBatt Energy Storage $500,000 

Center for Commercialization 

of Electric Technologies 

Research $500,000 

EQMA Biomass $250,000 

Faradox Energy Storage Energy Storage $1,000,000 

Ideal Power Converters Inverters $1,000,000 

KLD Energy Technologies Electric Motors $2,800,000 

Lynntech Batteries $600,000 

National Wind Resource Ctr. Research $8,400,000 

OptiSense Smart Grid $1,500,000 

Photon8 Algae Biofuels $1,000,000 

SolarBridge Technologies Inverters $1,500,000 

Solarno Solar Cells $1,000,000 

Sunrise Ridge Algae Algae Biofuels $250,000 

Superconductivity Applied 

Research Hub 

Research $3,675,000 

Texas BioEnergy Alliance Research $3,412,500 

Texas Micropower Energy Capture $750,000 

Terrabon Inc. Biomass $2,750,000 

TurboTrac USA 

Power 

Transmissions 

$2,000,000 

TXL Group Energy Capture $500,000 

Xtreme Power Energy Storage $2,000,000 

TOTAL $43,912,500 

Outlook for Texas 

Renewable Energy 

OVERVIEW 

While renewable energy has grown rapidly in Texas, 

the industry is still young with much room for further 

growth. Some renewable technologies are not yet 

price competitive with traditional fossil fuel generation. 

The recent extraordinary growth in shale gas 

recovery technology has driven natural gas prices 

from a peak of $13.32 in mid-2008 to under $2.00 per 

million British Thermal Units (mmBtu) in April 2012. 

Since natural gas prices are the primary driver of electricity 

pricing in Texas, it has become more difficult 

for renewable energy to achieve cost parity. Further 

commercialization of renewable energy depends on 

continued research and development to lower costs, 

improve efficiency, and strengthen infrastructure. 

As renewable energy generation, especially wind, 

continues to advance, the electric infrastructure must 

evolve to allow growth to continue. The success of the 

state’s RPS and wind industry has led to emerging 

constraints in transmission capacity. Texas wind resources 

are greatest in West Texas, far from the main 

sources of demand in the eastern half of the state. 

Weather patterns and wind gusts cause fluctuations in 

output. Furthermore, West Texas wind blows hardest 

at night when demand and prices are low, but peak 

demand is during the day. In short, wind blows intermittently 

in the wrong places at the wrong times. 

In response to the challenges outlined above, the PUC 

collaborated with ERCOT to establish five Competitive 

Renewable Energy Zones (CREZs) in West 

Texas. The transmission upgrades necessary to relieve 

west-east congestion and transmit larger amounts of 

wind power from the zones to the more populous areas 

of East Texas are scheduled to be completed in 

2013. 

Utilities in ERCOT are planning $8.7 billion in transmission 

improvements over the next five years, including 

the CREZ projects. Much of this investment is 

intended to support further wind energy integration. 

5

OVERVIEW 

Utilities in ERCOT have invested $6.6 billion in transmission 

improvements since 1999, including $870 

million since 2010. 

In addition to infrastructure projects, emerging technologies 

can provide cost effective ways to maximize 

the state’s energy assets as patterns of generation and 

transmission change. Increased renewable energy capacity 

requires new ways to manage both peak power 

demand and short term fluctuations in voltage (also 

called ancillary services), functions currently performed 

by standby natural gas generators. Demand 

response management, energy storage, and smart grid 

technology are three alternatives to replace this fossil 

fuel-based reserve capacity. 

Under demand response management, participating 

consumers agree to curtail electricity use when the 

grid’s capacity is stressed. Incentives are available to 

large electricity users in the ERCOT market to participate 

in demand response programs to compensate 

them for the inconvenience or lost revenue to their 

operations. ERCOT currently has 2,400 MW of demand 

in their demand response program from 200 

facilities, and is currently working to expand the program’s 

enrollment to increase the grid’s flexibility. 

Utility-scale energy storage technology is also gaining 

a lot of interest in Texas. Energy storage systems 

can mitigate intermittency by absorbing short-term 

fluctuations in renewables output so that customers 

can receive reliable electric service. They can also 

store excess energy for later use when demand is higher. 

There are a wide variety of energy storage technologies 

currently in use or undergoing research. 

In 2012, New Mexico-based Chamisa Energy announced 

plans to build a 270 MW compressed air 

energy storage facility in the Texas Panhandle near 

Amarillo. The project will use off-peak wind energy 

to inject compressed air into underground salt caverns. 

When the stored energy is needed for peak demand or 

ancillary services, the air is released, driving a turbine 

generator. Slated to come online in 2014, the project is 

strategically located along a CREZ transmission line 

currently under construction. 

Like renewable generation itself, energy storage needs 

to be efficient, economical, and well integrated into 

the grid. Regulatory hurdles are also being cleared. In 

March 2012, the PUC adopted a set of rules designed 

to encourage energy storage investment in Texas. Energy 

storage facilities can now buy and sell electricity 

at wholesale rates, thus allowing them to competitively 

service the grid as dispatchable plants for both ancillary 

services and longer term energy storage. 

Demand response, energy storage, and many other 

grid management tools rely on smart grid technology 

to enable their effectiveness. Based on advances in 

power electronics and digital communications, smart 

grid technology is the brain that enables far-flung facilities 

on the grid to communicate and coordinate 

actions with one another. According to the Environ- 

Xtreme Power: A Texas-based Pioneer in Energy Storage 

Xtreme Power, which received a $2 million TETF award in 2007, is making headlines. The Kyle, Texas-based 

company makes battery energy storage systems for power utilities, wind farms, and large manufacturers. In 

2011, Xtreme power built a 15 MW battery system that supports an offshore wind farm near Oahu, Hawaii. 

Another 10 MW system is under construction on Maui. 

In that same year, Xtreme Power won a $44 million contract to 

build a 36 MW battery system in conjunction with Duke Energy’s 

Notrees Wind Farm near Odessa, Texas. Xtreme Power’s 

large battery systems will provide ancillary services and store 

wind energy for distribution back into the grid during the day 

when demand for power is much higher. This battery system 

will be one of the largest of its kind in the world. Xtreme Power 

employs over 180 people and has plans to expand nationally. 

6

mental Defense Fund, Texas leads the nation in smart 

meter deployment, with over five million advanced 

meters within the ERCOT region. In 2012, ERCOT 

was able to improve wind integration with the aid of 

smart grid technology (see factbox below). 

Research & Development 

Rendering Courtesy UTSA 

Texas businesses and institutions are key drivers of 

U.S. research and development activity in the renewable 

energy sector. Texas ranks No. 6 in the nation in 

clean energy patents with 214 from 2002 to 2011, 

according to intellectual property law firm HRFM. 

Additionally, Texas ranks No. 4 in the nation for overall 

venture capital investment in 2010, according to 

the National Venture Capital Association. Energy and 

biotech accounted for 41% of this investment value. 

The Austin Technology Incubator (ATI) at the IC 2 

Institute at The University of Texas at Austin (UT- 

Austin) is home to ATI’s Clean Energy Incubator 

(CEI). One of the businesses currently at the CEI is 

ActaCell, an early stage lithium-ion battery technology 

company in which the TETF has invested. 

The San Antonio Clean Energy Incubator (SACEI) 

opened its doors in May 2011 to foster business activity 

in the renewable energy sector. SACEI is a part of 

the University of Texas at San Antonio’s (UTSA) 

Sustainable Energy Research Institute, which played a 

role in developing a rooftop solar array at UTSA for 

research and demonstration purposes. 

Since its foundation in 1999, the Houston Technology 

Center (HTC) has supported 250 early stage technology 

businesses, including several in the renewable 

energy sector. The HTC’s current portfolio includes 

companies interested in algae-based biofuels, residential-scale 

wind turbines, and in-flow hydroelectric 

generators. 

OVERVIEW 

Pecan Street Inc. is a research and development organization 

affiliated with UT-Austin established in 

2009. The organization takes a multifaceted approach 

to clean energy with a smart grid demonstration project, 

a research consortium involving several Fortune 

500 companies, and a technology commercialization 

lab currently under construction. 

The interdisciplinary Energy Institute at UT-Austin 

was founded in 2009 to focus university research on 

energy storage, carbon capture and storage, artificial 

photosynthesis, and other energy technologies. One 

recent carbon-based nanotechnology project at the 

institute investigated activated grapheme supercapacitors, 

a fast-discharging energy storage device. 

One of the first nanotechnology centers in the world is 

located in Houston, Texas. Founded in 1993, the 

Richard E. Smalley Institute for Nanoscale Science 

and Technology at Rice University pioneers wideranging 

research and commercialization efforts in 

nanotechnology, including those with energy applications. 

One such nanotech innovation from the Smalley 

Institute is a quantum wire capable of transmitting 

electricity across long distances without suffering 

transmission losses. 

ERCOT Smart Grid Technology 

Enhances Wind Integration 

In March 2012, ERCOT implemented its new Transient 

Stability Analysis Tool, which helps manage the flow of 

electricity across the state in real time. This smart grid 

technology helps ERCOT maximize the potential wind 

generation capacity in the state. 

“In the past, we’ve had some slack built into some of 

our transmission limits because these limits had to be 

set well in advance,” said Kent Saathoff, director of grid 

operations and system planning. “The new tool runs an 

analysis on real-time conditions every 30 minutes so it 

gives us a more fine-tuned analysis.” 

In the two weeks following implementation, ERCOT’s 

maximum wind output exceeded the previous record 

set in October 2011 five times. Set on June 19 2012, the 

new daily record for Texas wind generation is 8,368 

MW. 

7

OVERVIEW 

Major Companies 

Leading Renewable Energy Companies with Operations in Texas 

Company Name 

Primary 

Location(s) 

Type Details 

TECO-Westinghouse Round Rock Wind Wind turbine manufacturer 

Applied Materials Austin Solar Semiconductor machinery manufacturer 

MEMC Pasadena Solar Granular polysilicon manufacturer 

Molded Fiber Glass 

Companies 

Gainesville Wind Windmill blades manufacturer 

Alstom Wind Amarillo Wind Wind nacelles manufacturer 

Duke Energy 

San Antonio, 

West Texas 

Wind, Solar 

RES-Americas Austin, Statewide Wind, Solar 

BP Alternative Energy Houston, 

Statewide 

Renewable Biofuels Inc Houston, 

Port Neches 

White Energy 

Dallas, Hereford, 

Plainview 

Wind, 

Biofuels 

Operates solar farm in San Antonio, 

three wind farms in Texas 

Operates 15 wind farms in Texas, 

solar farm near Austin 

Operates 4 wind farms in Texas, 

Alternative Energy HQ in Houston 

Biofuels Largest biodiesel producer in Texas 

Biofuels Largest ethanol producer in Texas 

Green Earth Fuels Houston Biofuels Biodiesel producer 

Royal Dutch Shell Houston Biofuels Advanced biofuels pilot plant in Houston 

NextEra Energy 

Resources 

E.ON Climate & 

Renewables 

Horizon Wind Energy 

Element Markets 

Statewide Wind Operates 15 wind farms in Texas 

Statewide Wind Operates 8 wind farms in Texas 

Houston, 

Statewide 

Houston, 

Stephenville 

Wind Wind Developer, HQ in Houston 

Biomass 

Operates livestock waste-to-biogas 

facility in Stephenville 

SunEdison San Antonio Solar Solar farm developer 

Xtreme Power Kyle Storage Utility-scale energy storage manufacturer 

Green Mountain Austin Utility 100% renewable retail energy provider 

Reliant Houston Utility Operates four landfill gas sites in Houston 

8 

Representative sample only.

Energy 

Workforce 

Employment 

Texas ranked No. 2 nationally with over 55,000 renewable 

energy workers, according to a 2009 report 

by The Pew Charitable Trusts. These jobs span a number 

of industries, from wind turbine maintenance to 

semiconductor manufacturing. 

Not only does Texas have a large number of renewable 

energy-related workers, but job growth is expected 

to remain strong over the next decade. According to a 

2010 report by the Cynthia and George Mitchell 

Foundation, the expanding wind and solar energy industries 

are projected to add 6,000 jobs in Texas per 

year through 2020. 

Over 1,300 Texas companies employ nearly 100,000 

workers in industries directly and indirectly related to 

renewable energy in 2011. These workers are highly 

skilled and well paid, earning an average annual salary 

of $84,426, which is 67% above the state average. The 

table below shows employment statistics for selected 

industry areas related to renewable energy. 

Renewable Energy-Related Employment in Texas 

Fourth Quarter 2011 

Sector (Industry Code) Firms Employees 

Electric Power Generation (22111) 

-Wind Electric Power Generation (221115) 

Texas’ experience in energy runs deep. In addition to 

abundant natural resources, the state’s workforce cluster 

has decades of experience in energy-related land 

and project development, industrial scalability, and 

energy trading. While most of this know-how developed 

in traditional energy sectors, in recent years the 

state’s energy industry has applied its knowledge of 

traditional oil and gas to expanding renewable fields. 

Training Initiatives 

107 

19 

13,530 

833 

OVERVIEW 

Texas universities, community colleges, and industry 

certification programs are continuously developing 

and expanding renewable energy course offerings. 

The Environmental Defense Fund’s Texas Green Jobs 

Guidebook identifies over 50 Texas community colleges 

that offer an array of low-cost programs to prepare 

students for green jobs. 

The Texas Renewable Energy Education Consortium 

(TREEC) is a group of twelve Texas colleges devoted 

to educating Texas’s renewable energy workforce. 

From Amarillo to Harlingen, the consortium 

works to offer degrees, certificates, professional development, 

and technical training. Courses are offered 

in wind, solar, energy-efficient building design, and 

fuel cells. 

Average 

Annual Wage 

$98,332 

$103,428 

Electric Power Transmission, Control, & Distribution (22112) 219 31,337 $80,028 

Power Line and Related Structures Construction (23713) 623 15,387 $53,716 

Turbine & Power Transmission Equipment Mfg. (333611) 33 1,120 $78,208 

Semiconductors, Solar Cells, and Related Devices Mfg. (334413) 129 29,014 $103,480 

Electrical Equipment, Generator Mfg. (33531) 193 8,458 $70,564 

Battery Mfg. (33591) 12 330 $65,104 

TOTALS 1,316 99,176 $84,426 

Source: Texas Workforce Commission 

9

Wind Power 

Overview 

W 

ind is a clean, affordable, and renewable 

energy resource which plays a significant 

and growing role in the U.S. and Texas 

energy markets. According to the Wind Energy Foundation, 

wind is currently the fastest growing source of 

electricity production globally. Wind generation technology 

is mature and proven, and increasingly cost 

competitive. Texas is the leading state for wind energy 

generation, with over 22% of the nation’s installed 

wind capacity. If Texas were a country, it would rank 

sixth in installed capacity. 

Wind generation has proven popular because it is 

cheaper than solar, requires no water or other scarce 

Texas has more wind energy capacity than 

all but five countries 

End of 2011 

10 

Country/State 

Installed 

Capacity (MW) 

China 62,364 

United States 46,919 

Germany 29,060 

Spain 21,674 

India 16,084 

Texas 10,394 

Sources: Global Wind Energy Council 

American Wind Energy Association 

Wind Resources in Texas and U.S. 

Source: U.S. National Renewable Energy Laboratory 

resources, and emits no greenhouse gasses. Since 

windmills must be spaced out to maximize their efficiency, 

much of the underlying land can still be used 

for its original purposes, such as agriculture and livestock 

production. 

Because of wind power’s cost and efficiency advantages, 

wind installations far outpace solar. A decade 

after surpassing solar production, U.S. wind generation 

is nearly ten times greater than solar generation, 

according to the U.S. EIA. 

Texas’ world-class wind industry comes from its 

abundant natural wind resources. With plentiful wind 

on the Great Plains and along the Gulf Coast, the state 

ranks first nationally for wind generation potential, 

according to the American Wind Energy Association 

(AWEA). The state’s Renewable Portfolio Standard, 

enacted in 1999, also played a major role for encouraging 

wind energy development in Texas.

Wind Power 

Generation 

Texas is by far the leading state in wind energy 

generation with 10,394 megawatts 

(MW) of installed capacity, which is enough 

to power over 3.1 million Texas homes. Texas’ 

wind capacity is over 40% greater than 

Iowa, the second-ranked state. Texas has 

seen a tremendous boom since the first commercial 

wind farm was built in 1995. 

In 2007, Texas became the first state to reach 

the milestone of one gigawatt of wind capacity 

installed in a single year. Six of the nation’s 

ten largest wind energy generation 

projects are located in Texas, according to AWEA. 

In 2011, wind accounted for a record 8.5% of all energy 

generated in ERCOT’s operating region, up from 

7.8% in 2010. (ERCOT is home to 93% of Texas 

wind generation capacity.) At the end of 2011, 74 

wind farms were operational in Texas. 

The area with the greatest wind potential in the United 

States is the Great Plains, which stretch from Texas to 

North Dakota. Other promising areas include coastlines 

along the Great Lakes and the Gulf of Mexico. 

The PUC reports that the state’s wind power potential 

is almost two times as much as the state’s total annual 

ERCOT Annual Wind Energy Generation 

30,000 

20,000 

10,000 

0 

(GWh) 

2002 2004 2006 2008 2010 

peak electric demand. 

Within ERCOT, 77% of installed wind capacity is in 

West Texas, while 21% is in the coastal region. 

Coastal wind is a growing resource in Texas because 

coastal winds blow consistently in late afternoons and 

are located near populous areas. 

Texas Wind Farms 

The largest cluster of wind farms in Texas is located 

in the region between Lubbock, Abilene, and Odessa 

(see map on page 12). In this region, Taylor, Nolan, 

Scurry, and Sterling Counties each have over 1,000 

MW of installed capacity, collectively accounting for 

about 45% of the state’s wind energy. 

Source: ERCOT 

WIND 

Installed Wind Generation Capacity 2011 

Source: American Wind Energy Association 

The Roscoe Wind Farm, which stretches 

across Nolan, Mitchell, Scurry, and Fisher 

Counties, is the nation’s second largest wind 

farm with over 600 wind turbines and a total 

installed capacity of 782 MW. The $1 billion 

project was completed in 2009 by E.ON Climate 

& Renewables, a Chicago-based subsidiary 

of E.ON AG, a global energy company 

based in Düsseldorf, Germany. 

E.ON Climate & Renewables has five wind 

projects in Texas alone, with 1,833 MW of 

generating capacity, enough to power nearly 

11

WIND 

550,000 Texas homes. In addition to the 782 MW 

Roscoe Wind Farm, E.ON also operates the 380 MW 

Papalote Creek Wind Farm near Corpus Christi and 

the 458 MW Panther Creek complex near Big Creek, 

Texas. 

The 736 MW Horse Hollow Wind Energy Center in 

Taylor and Nolan Counties was the largest wind farm 

in the world when it was completed in 2006 by Florida-based 

NextEra Energy Resources. NextEra operates 

12 wind farms in Texas totaling 2,451 MW of 

generating capacity. NextEra also operates the 663 

MW Capricorn Ridge Wind Energy Center, the 

third largest wind farm in Texas. 

12 

Texas Wind Farm Locations 

Sources: ERCOT, PUC 

The fifth phase of the 585 MW Sweetwater Wind 

Farm owned by Duke Energy was completed in 

2008 near Sweetwater, Texas. This wind farm is currently 

the fourth largest in the state. 

The importance of wind energy to Texas is growing 

every year. The state added 297 MW (234 MW within 

ERCOT) of wind generating capacity in 2011. 

ERCOT has interconnection agreements with 

developers that will bring a further 2,066 MW of 

wind capacity online over the next three years. 

Duke Energy began construction on its 402 MW 

Los Vientos Windpower Project in 2012. Los 

Vientos is located on the Gulf of Mexico just 

north of Harlingen, Texas. Coastal wind generation 

is a small but growing component of the Texas 

wind industry portfolio. When completed by 

the end of 2012, Duke Energy will have five wind 

farms in Texas with a total capacity of 897 MW. 

The 161 MW Spinning Spur Wind Project near Amarillo, 

Texas, is also scheduled for completion by the 

end of 2012. The $190 million project is being codeveloped 

by Austin-based Cielo Wind Power and 

enXco, the U.S. subsidiary of the French global energy 

company EDF. Cielo has developed 10 wind farms 

in Texas with a total installed capacity of over 1,200 

MW, and is the largest independently owned wind 

farm developer in the U.S. 

Installed Capacity 

(MW) 

Nation's 10 Largest 

Wind Energy Generation Projects 

Project Name State 

981 Alta Wind CA 

782 Roscoe Wind Farm TX 

736 Horse Hollow TX 

663 Capricorn Ridge TX 

585 Sweetwater TX 

523 Buffalo Gap TX 

501 Meadow Lake IN 

458 Panther Creek TX 

450 Biglow Lake OR 

444 Rolling Hills IA 

Source: American Wind Energy Association, end of 2011

Wind Equipment 

Manufacturing 

In addition to leading the nation in wind generation 

capacity, Texans play multiple roles at all levels of the 

global wind energy industry. 

Texas ranks second nationally in the number of manufacturing 

facilities related to wind, including assembly 

plants, tower manufacturing, and other component 

manufacturing. The AWEA estimates that at least 35 

facilities are involved in the windmill manufacturing 

business in Texas. 

Texas has manufacturing facilities for all three main 

windmill components: towers, blades, and nacelles. 

Nacelles are the boxes attached to the top of towers 

that contain the turbine, gearbox, and other electronic 

equipment. 

Manufacturing in Texas 

Round Rock, Texas, is home to TECO- 

Westinghouse, the first wind turbine production facility 

in the state. In December 2009, the international 

company shipped one of its first orders of wind turbines 

to Chile for a $40 million wind power generation 

project. 

U.S. Wind-Related Manufacturers 

Source: American Wind Energy Association 2011 

WIND 

TECO-Westinghouse Turbine Manufacturing in Round Rock, Texas 

In 1997, Molded Fiber Glass (MFG) Companies, an 

Ohio-based manufacturer, opened a 155,000 sq. ft. 

windmill blade manufacturing facility in Gainesville, 

Texas. Employing 200 skilled workers, MFG Texas 

has shipped over 1,500 precision manufactured blade 

sets globally. Wind Energy Services Company, an 

MFG subsidiary specializing in windmill blade repair, 

is also located in Gainesville. 

In 2010, the French wind turbine company Alstom 

Wind broke ground on a turbine nacelle assembly 

plant in Amarillo, Texas, which will create 275 fulltime 

engineering, production, and technical support 

jobs. Alstom began hiring in 2011 and production is 

scheduled to ramp up in 2012. 

Trinity Structural Towers, a subsidiary of Dallasbased 

Trinity Industries, is a leading manufacturer of 

wind towers. Trinity has a manufacturing 

facility in Coleman, Texas. 

In 2011, Illinois-based Broadwind Energy 

opened a $7 million drivetrain service 

center in Abilene, Texas. The facility’s 

60-person staff will remanufacture 

and refurbish windmill blades and internals, 

such as gearboxes and turbines. 

This facility is an example of the wind 

industry’s sustained impact through operations 

and maintenance jobs. Tower 

Tech, a Broadwind subsidiary, also operates 

a wind tower manufacturing facility 

in Abilene. 

13

WIND 


Wind Energy 


The future for wind energy is strong in Texas. The 

state’s industry leadership is supported by the state’s 

natural resources, business climate, robust R&D activity, 

and skilled renewable energy workforce. 

Wind energy is based on proven technology, yet research 

is ongoing to improve existing designs and 

innovate new ones. Researchers are experimenting 

with different windmill sizes and configurations designed 

for specific situations such as small scale generation 

or giant offshore wind farms. Offshore wind 

generation is particularly promising. 

Texas universities house leading researchers and nationally 

recognized degree programs that are key to 

the development of energy technologies and management 

for the future. 

Located in Canyon, Texas, West Texas A&M 

University (WTAMU) has been a leader in wind 

energy research since 1970. Founded in 1977, 

WTAMU’s Alternative Energy Institute conducts 

research, evaluates wind turbine designs, collects 

wind data, and conducts workforce training programs. 

In 2009, the National Institute for 

Renewable Energy (NIRE) was 

formed in Lubbock, Texas. NIRE is a 

public-private partnership between Texas Tech University 

(TTU) and the Innovate Texas Foundation that 

focuses on wind energy R&D and advocacy. 

The Texas A&M Engineering Wind Energy 

Center was established in 2010 as a part of the 

Texas Engineering Experiment Station (TEES) 

in College Station, Texas. The Wind Energy Center’s 

mission is to support wind energy research and development 

in Texas. Among other topics, the center is 

focusing on the commercialization of offshore wind 

potential. 

14 

The Galveston Wind Project, developed by Coastal 

Point Energy LLC, hopes to become the first commercial 

offshore wind farm in the U.S. The Houstonbased 

company has collected 30 months worth of meteorological 

data from their observation platform eight 

miles off the coast of Galveston, Texas. The next step 

is to install a 750 kW turbine, which will power a water 

desalination system. If successful, Coastal Point 

hopes to develop offshore wind farms on the 84,000 

acres of submerged land in the Gulf of Mexico they 

have leased from the state of Texas. 

General Dynamics to bring turbine 

manufacturing jobs to East Texas 

In 2012, North Carolina-based defense contractor 

General Dynamics (GD), entered into a licensing 

agreement with Windflow Technology, a New Zealand-based 

wind turbine maker. As a result of the 

agreement, Windflow and GD will jointly develop 

500 kW wind turbines to be manufactured at two 

facilities in Longview and Kilgore, Texas. 

Government Initiatives 

The Texas Legislature established the Texas Enterprise 

Fund (TEF) in 2003 as a state deal-closing fund 

for economic development. The TEF helped bring 

wind tower manufacturing to the state with a 2008 

award to Martifer-Hirschfield Energy Systems in San 

Angelo, Texas. In 2010, production began at the $40 

million plant, which will create 225 new jobs. The 

company, a joint venture between San Anglelo-based 

Hirschfield Industries and Portugal-based Martifer

Energy Systems, was awarded $845,000 by the TEF 

to locate in San Angelo, Texas. 

The Texas Emerging Technology Fund (TETF) was 

created by the Texas Legislature in 2005 to provide 

Texas with an advantage in the research, development, 

and commercialization of disruptive new technologies, 

including wind energy. To date, the fund has 

invested $10.4 million in emerging wind technology 

firms and research groups. 

In July 2010 Gov. Rick Perry announced an $8.4 million 

TETF research superiority investment through 

Texas Tech University and NIRE. The investment will 

help create the National Wind Resource Center 

(NWRC) in Lubbock, a non-profit organization 

formed by TTU that focuses on wind power research 

New Wind Technology R&D in Lubbock 

The Scaled Wind Farm Technology Facility (SWIFT) 

is currently under construction in Lubbock, Texas. 

SWIFT is hosted by the Texas Tech University’s (TTU) 

Reese Technology Center in collaboration with Sandia 

National Laboratories, the National Institute for 

Renewable Energy (NIRE), and Denmark-based Vestas, 

the global leader in wind turbine manufacturing. 

The first phase of the DOE-funded facility will consist 

of three Vestas V27 wind turbines, anemometer 

towers, and a facility for research preparation and 

analysis. SWIFT’s research will emphasize the interactions 

of wind turbines on each other to maximize 

total wind farm efficiency, rather than focusing on 

the output of a single turbine. The facility will also 

research advanced rotor designs, acoustics, and other 

topics that will help increase wind farm efficiency. 

SWIFT plans to be operational in late 2012. 

Offshore Wind in Texas 

WIND 

Although offshore wind has a small but growing 

presence in Northern Europe, there is no commercial 

offshore wind generation in the United States. 

Texas hopes to become the first state to welcome 

offshore wind generation to its coastline. 

Because of a stipulation made when the Republic 

of Texas joined the United States in 1845, the 

state claims jurisdiction 10.3 miles into the Gulf of 

Mexico, more than three times the distance 

claimed by other states along the Atlantic Coast. 

This allows Texas projects to be located further 

into the Gulf: invisible from the coast while also 

largely eliminating the burden of federal review. 

Several offshore projects are under consideration 

along the Texas Gulf Coast. 

and education through collaboration with national 

laboratories, academic institutions, and trade organizations. 

In 2009, the TETF invested $2 million in Turbo Trac 

USA, a Frisco-based company investigating heavy 

duty infinitely variable transmissions. The technology 

is expected to increase the efficiency of drivetrain 

systems in various activities, including windmill gearboxes, 

oil well pumps, industrial equipment, and 

heavy duty vehicles. 

The Texas wind industry has also benefited from the 

federal Production Tax Credit (PTC), which provides 

a 2.2 cent per kilowatt-hour income tax credit for 

wind energy production. The PTC is scheduled to 

expire at the end of 2012 and its future is uncertain. 

This credit has been a boon to the wind industry, and 

the recent policy uncertainty has hindered wind investments 

in Texas and across the country. 

Workforce & Training Initiatives 

A study released by the Waco, Texas-based Perryman 

Group in May 2010 estimates the wind industry is 

responsible for nearly 10,000 manufacturing, headquarters, 

construction, and maintenance and support 

jobs in Texas. The American Wind Energy Association 

(AWEA) agrees, ranking Texas first among states 

15

WIND 

in wind industry employment, which includes manufacturing, 

installation, and maintenance jobs. 

Workers across the state play a fundamental part in 

the international supply chain of the industry. Texas is 

a leader in steel fabrication and transportation for 

wind energy, and in advanced materials such as carbon 

fiber, which are exported from Texas to wind 

energy companies around the globe. 

In addition to supporting NIRE and NWRC, Texas 

Tech University (TTU) offers a doctoral program 

in Wind Science and Engineering, the first 

and only wind energy-related PhD program in the 

United States. TTU also offers undergraduate degrees, 

minors, graduate certificates, and professional development 

through the school’s Wind Science and Engineering 

Research Center. 

Located in Sweetwater, Texas 

State Technical College-West 

Texas (TSTC) offers associate degrees 

and certificates in Wind Energy Technology. In 

2010, TSTC-West Texas partnered with TTU to create 

the Texas Wind Energy Institute to coordinate workforce 

training programs between the two schools. 

Amarillo College offers wind training courses 

through its Wind Technology Program. The 

program offers wind technician certificates for 

students interested in wind energy operation, maintenance, 

and manufacturing. In addition, the college 

offers a renewable associate degree in Wind Energy. 

16 

Wind Energy-Related Employment in Texas 


West Texas A&M’s Alternative Energy 

Institute (AEI) in Canyon, Texas, conducts 

workforce training programs in addition to 

its research activities. AEI offers online courses for 

wind energy, as well as information seminars for land 

owners with potential wind assets. 

In addition to its pioneering wind program in West 

Texas, TSTC’s Harlingen Campus offers programs 

in Ingleside, Texas. TSTC-Harlingen offers an A.A.S. 

degree in Wind Energy & Turbine Technology, focused 

on wind farm operations and maintenance. The 

course is taught on the former site of Naval Station 

Ingleside near Corpus Christi. After its closure in 

2010, a portion of this base was redeveloped as the 

North American Coastal Wind Energy Technology 

Development & Testing Center, a turbine and blade 

testing center sponsored by the U.S. Department of 

Energy and The Wind Alliance. 


Average 

Annual Wage 

Wind Electric Power Generation (221114) 19 833 $103,428 

Power Line and Related Structures Construction (23713) 623 15,387 $53,716 

Turbine & Power Transmission Equipment Mfg. (333611) 33 1,120 $78,208 

Electrical Equipment, Generator Mfg. (33531) 193 8,458 $70,564 

TOTALS 868 25,798 $61,908 

Source: Texas Workforce Commission

Solar Power 

Overview 

I 

n the U.S., solar power currently lags behind wind 

power in terms of installed capacity, yet solar industry 

growth is poised to accelerate over the next 

few years. Photovoltaic cell prices continue to trend 

lower (see chart below), as a result of new technology, 

improved manufacturing techniques, and better economies 

of scale from expanding production. 

The most common solar technology is photovoltaics 

(PV). As depicted in the picture above, PV modules 

are glass-covered semiconductor cells which convert 

sunlight into an electric current. PV cells are usually 

made of silicon, and are often installed on rooftops 

and open spaces. Although PV systems are frequently 

used for larger utility-scale projects, its modularity 

makes PV a popular choice for small-scale energy 

U.S. Photovoltaic Shipments vs Prices 

$8 

$6 

$4 

Module price per watt 

Shipments 

(MW) 

$2 

0 

1990 1995 2000 2005 2010 

1,500 

1,000 

500 


generation near the point of use (also called distributed 

generation), such as on residential or commercial 

rooftops. In the U.S. market, 20% of installed solar 

capacity is utility-scale PV and 60% is distributed PV. 

Concentrated Solar Power (CSP) comprises the remaining 

20% of the U.S. solar market. This technology 

maximizes the sun’s output by using mirrors and 

lenses to concentrate the available sunlight on a central 

collector. The concentrated sunlight creates heat, 

which is then used to turn a steam turbine and generate 

electricity. CSP can be more efficient than PV, but 

it requires a higher capital investment. CSP also requires 

direct sunlight, while PV cells can still generate 

electricity on cloudy days. CSP is almost exclusively 

used for utility-scale projects in very sunny areas, 

such as the southwestern United States. 

Solar Resources in Texas and U.S. 

Source: National Renewable Energy Laboratory 

17

SOLAR 

Solar Power 

Generation 

Due to its abundant sunshine, manufacturing base, and 

developed research institutions, Texas is well positioned 

to compete in the fast-growing solar energy 

market. Texas is ranked No. 1 nationally in solar potential, 

according to the State Energy Conservation 

Office. West Texas in particular has some of the nation’s 

highest levels of solar radiation, making it suitable 

for supporting utility-scale solar power plants. 

Distributed solar, such as rooftop panels and other 

smaller projects, are viable across the state. 

U.S. solar energy consumption was 463 GWh in 2011, 

which was less than 2% of all renewable energy. 

While solar energy is a relatively small portion of the 

entire U.S. energy industry, it is growing rapidly. It 

grew 29% in 2010 and 25% in 2011, matching the 

growth rates of the highly successful wind industry. 

Austin Energy Inaugurates 

Largest Solar Farm in Texas 

Located in Webberville, Texas, the 30 MW photovoltaic 

solar farm went online in December 2011. RES 

Americas, a leading renewable energy developer, 

installed over 127,000 PV modules on the project’s 

380 acre site, mounted on single axis trackers to follow 

the sun’s trajectory across the Texas sky. The 

$100 million project was made possible in part by 

Austin Energy’s commitment to buy all of the facility’s 

power for 25 years. The Webberville solar farm is 

a part of Austin Energy’s long-term strategy to source 

35% of its electricity from renewable sources by 

2020. 

18 

80 

60 

40 

20 

0 

Texas Grid-Connected 

Solar PV Capacity (MW) 

2007 2008 2009 2010 2011* 

Source: 2007-2010 Interstate Renewable Energy Council 

*2011 Office of the Governor Estimate 

Solar Power Generation in Texas 

Over the past decade, solar energy has played second 

fiddle to wind both in Texas and across the country. 

Compared to wind and fossil fuel sources, solar energy 

is currently more expensive. As costs continue to 

fall, solar energy will be increasingly significant to 

Texans over the next decade. 

According to the Interstate Renewable Energy Council 

(IREC), Texas ranked No. 13 nationally in gridconnected 

installed PV capacity in 2010 with 34.5 

MW. Rooftop PV systems comprise the bulk of Texas 

solar projects. With the 30 MW Webberville solar 

farm coming online in late 2011, the Office of the 

Governor estimates total installed capacity to have 

been approximately 74 MW at the end of 2011. 

Solar Energy Projects in Texas 

With a combined 34 MW of installed capacity, San 

Antonio narrowly edges Austin as the Texas city with 

the most utility-scale solar capacity. CPS Energy 

(CPS), the municipal electric utility of San Antonio, 

has a goal to provide the city with 20% renewable 

energy by 2020, of which solar is a major component. 

CPS currently buys solar power from the Blue Wing 

Solar Project. Built by Duke Energy in 2010, Blue 

Wing is a 14 MW PV system in southeastern San Antonio. 

SunEdison, a solar project developer, complet-

ed San Antonio’s 19.8 MW William R. Sinkin Centennial 

Solar Farm in June 2012. 

Because of solar power’s unique characteristics, most 

solar projects are relatively small in scale. Aside from 

Blue Wing and the Webberville project, most solar 

installations in Texas have a rated output of less than 

1 MW each. Cumulatively, solar can add up to make a 

big impact in Texas. For example, residential and 

commercial rooftop solar PV installations could theoretically 

provide 84% of Austin’s energy needs, according 

to a 2009 study by Solar America Cities, a 

program sponsored by the DOE. 

Austin Energy estimates 6.2 MW of distributed solar 

PV systems are already installed in the city, including 

systems at 47 Austin area schools and 38 city buildings. 

As of 2010, Houston and San Antonio accounted 

for a further 2.0 MW each, according to the DOE. 

Fort Hood, an Army base near Killeen, Texas, recently 

installed a $3 million PV system, which will provide 

about 20% of the energy needs for an adjacent 

housing development. Completed in March 2012, the 

3,000 PV panels take up about 4 acres and generate 

684 kW, which is enough to power over 200 Texas 

homes. 

In January 2012, CPS Energy announced an ambitious 

and unique solar project that promises to pay big dividends 

to the city of San Antonio. This project combines 

a massive investment in renewable energy with 

a commitment to economic development and job 

creation. 400 MW in PV solar generation will be constructed 

using locally sourced components. 

Key among those components are the solar panels, 

which will be supplied by a new manufacturing facility 

to be built in San Antonio. This facility will be built by 

Nexolon, a South 

Korean company 

that went public in 

2011. 

14 MW Blue Wing Solar Farm in San Antonio 

The University of Texas (UT) System installed rooftop 

solar projects on two campuses in 2011. UT- 

Austin installed a 200 kW PV system, while UT-San 

Antonio installed a 170 kW PV system. 

In 2012, Kaneka Texas Corp. installed a 53 kW solar 

system on the roof of its headquarters in Pasadena, 

Texas. Kaneka Texas is a chemical manufacturing 

subsidiary of Kaneka Corporation, a diversified multinational 

that also manufactures solar panels in its 

home country, Japan. 

San Antonio’s CPS Energy Announces Solar Mega Project 

SOLAR 

OCI Solar Power will build, develop, and manage the 

400 MW installation in San Antonio. OCI Solar Power 

is a North American subsidiary of South Korea-based 

OCI Company, a leading manufacturer of polysilicon, a 

key material in PV solar cells. 

OCI Solar Power and Nexolon will combine to invest 

$100 million in San Antonio and create over 800 professional 

and technical jobs. Both South Korean-based 

companies will locate their U.S. headquarters in San 

Antonio. This project is also expected to create business 

opportunities for new and existing suppliers and 

installers. CPS Energy has a 25-year power purchase 

agreement for all energy generated by this project. 

19

SOLAR 

Solar Equipment 

Manufacturing 

Solar Manufacturing in Texas 

Texas has a strong solar equipment manufacturing 

sector, which is anchored by a globally competitive 

cluster of semiconductor fabrication companies. This 

manufacturing base makes Texas a leading location 

for all phases of solar energy manufacturing. 

A number of Texas businesses are directly engaged in 

solar energy manufacturing (see chart below). Entech 

Solar, a manufacturer of concentrating photovoltaic 

panels, is based in Fort Worth. HelioVolt, a thin-film 

solar panel startup, operates a 20 MW manufacturing 

facility at its headquarters in Austin, Texas. 

Solar Equipment Companies Located in Texas 

Company Location Activity 

Rank 

1SolTech Farmers Branch PV panel mfg. 

Applied Materials Austin Semiconductor mfg. equipment 

Applied Nanotech Austin Nanotech materials for PV 

Duke Energy San Antonio PV generation 

Entech Solar Fort Worth Concentrated PV panel mfg. 

Freescale Semiconductor Austin Semiconductors 

Growatt North America Houston Inverters 

HelioVolt Austin Thin film PV panel mfg. 

Ideal Power Converters Spicewood Inverters 

MEMC Pasadena Granular polysilicon mfg. 

RES Americas Webberville PV Generation 

Solar Power Technologies Austin PV control systems 

SolarBridge Technologies Austin PV microinverters 

20 

Solarno Coppell R&D 

SunPower Austin PV panel sales 

Representative Sample Only 

Leading Semiconductor Machinery 

Manufacturer in Texas 

Applied Materials is the world’s largest producer 

of semiconductor manufacturing equipment used 

for fabricating solar wafers and cells. The California-based 

company’s systems are used in manufacturing 

commercially available solar cells by all 

of the top 15 wafer manufacturers and 14 of the 

top 15 cell manufacturers globally. 

Applied Materials operates a research, 

development and manufacturing facility 

in Austin, Texas, with over 2,000 highly 

skilled workers. 

St. Peters, Missouri-based MEMC manufactures 

granular polysilicon at its facility in Pasadena, Texas. 

MEMC also owns SunEdison, the company currently 

building three 10 MW solar PV farms in the San Antonio 

area. 

In 2011, PV panel manufacturer SunPower, 

based in San Jose, California, located 

a regional office in Austin, Texas. 1Sol- 

Tech, a PV panel maker in Farmers 

Branch founded in 2008, recently expanded 

into a new facility and increased its 

workforce to 70. 

Solar Power Technologies (SPT), an 

Austin-based startup, is developing technology 

to improve the efficiency of large 

solar PV arrays. SPT accomplishes this 

through monitoring each PV panel and 

analyzing its performance. 

In addition to solar panel manufacturers, 

Texas has long been a leader in the semiconductor 

industry. Texas is home to approximately 

11.5% of the world’s silicon 

processing capacity, according to a 2007 

study by the IC 2 Institute at UT-Austin. 

As the most important component of PV 

cells, a globally competitive silicon-based 

semiconductor manufacturing base is a 

strong asset for the Texas solar industry.


Solar Energy 

Texas universities and businesses are highly active in 

developing solar technology. According to a 2007 

report by the IC 2 Institute at UT-Austin (see table below), 

Texas is one of the leading states in solar research 

and development. Most research is focused on 

increasing efficiency and lowering costs. Current PV 

technology captures roughly 15% of the sun’s energy, 

while CSP captures roughly 20%. Increasing this energy 

conversion efficiency in a cost effective manner 

is a key to future solar technology proliferation. To 

that end, researchers are exploring new materials and 

manufacturing methods to drive down costs. 

Texas National Solar Rankings, 2007 

PV-related federal research awards 4 

PV-related patents 4 

PV business located in the state 5 

PV-related scientific publications 6 


Source: UT-Austin, IC 2 Institute 

Astro-Watt, a Round Rock, Texas-based startup, is 

researching low-cost thin-film PV manufacturing. 

Thin-film PV cells are generally less efficient than 

traditional designs, but are cheaper to manufacture. 

In 2011, Applied Nanotech opened its solar inks pilot 

manufacturing line in an expansion of the company’s 

headquarters in Austin, Texas. The nanoparticle metallic 

inks are sprayed directly onto silicon wafers for 

PV cells. This non-contact method allows raw material 

requirements to be lowered by 44%. 

Several universities in the state operate solar vehicle 

racing teams, including Rice University, Texas 

A&M University, Texas Tech University, and UT- 

Austin. These programs provide students a hands-on 

opportunity to work with solar technology as well as 

automotive design. 

Solar racing vehicle built by students at UT-Austin 

Texas A&M University collaborates with the DOE’s 

National Renewable Energy Laboratory to research 

ways to store solar thermal energy. Researchers are 

using solar power to heat molten salt mixed with 

nanofluid particles. The thermal energy storage can 

later be recovered to generate electricity. 

The University of North Texas (UNT) opened its 

Zero Energy Laboratory in April 2012. This facility 

will house cutting-edge research in green technology, 

including solar energy. One of the next-generation 

technologies currently under investigation is solar 

cells, which combine organic and inorganic materials. 

TETF Invests in SolarBridge 

In March 2010, Gov. Rick Perry announced the 

TETF’s investment of $1.5 million in SolarBridge 

Technologies for the development and commercialization 

of its solar energy technology. In 2009, 

the company moved its headquarters from Illinois 

to Austin, Texas. 

SolarBridge designs microinverters and monitoring 

systems for photovoltaic panels. Inverters are typically 

larger devices located at a centralized location, 

but SolarBridge’s devices are small enough to 

easily mount on the underside of a PV panel. This 

helps make rooftop solar installations cheaper, 

safer, and more efficient. 

With Texas’ support, SolarBridge has more than 

doubled its workforce and is moving into the commercialization 

phase. 

Workforce & Training 

SOLAR 

21

SOLAR 

Researchers at the University of Houston are developing 

multi-junction thin-film solar cells. Multijunction 

cells have several layers of PV films, each 

able to capture different wavelengths of the sun’s rays, 

which minimizes solar energy waste as heat. This research 

is a part of the Engineering Research Center for 

Quantum Energy and Sustainable Solar Technologies, 

a multi-institution collaboration in Arizona funded by 

the National Science Foundation and the DOE. 

UT-Austin’s Department of Chemical Engineering 

is developing a promising technology which utilizes 

nanoparticle “ink.” The ink could be printed much like 

a roll of newspaper in a relatively low cost process. 

This technology would dramatically lower the cost of 

solar semiconductors, which are traditionally manufactured 

in high-tech, high temperature clean rooms. 

Government and Utility Initiatives 

Government initiatives play a key role in developing 

and implementing solar technology. The Texas 

Emerging Technology Fund (TETF) was created by 

the Texas Legislature in 2005 to provide Texas with 

an advantage in the research, development, and commercialization 

of innovative new technologies. To 

date, the fund has invested $7 million in emerging 

solar technology firms. 

In March 2009, the TETF awarded $1 million to Solarno, 

a solar research company affiliated with The 

University of Texas at Dallas’ NanoTech Institute. 

Based in Coppell, Texas, Solarno focuses on nanotechnology 

with potential solar applications. 

TETF Invests in Ideal Power Converters 

In 2010, the Texas Emerging Technology Fund invested $1 million in 

Ideal Power Converters (IPC), a renewable energy startup affiliated 

with the University of Texas at Austin. Based in Spicewood, Texas, 

IPC makes inverters that are significantly smaller and more efficient 

than traditional designs. This innovative technology will help lower 

installation and maintenance costs for commercial PV systems. In 

2011, IPC inverters were used in solar PV installations at UT-Austin 

and UT-San Antonio. 

22 

Nanoparticle Semiconductor Ink Developed at UT-Austin 

The 78th Texas Legislature established the Texas Enterprise 

Fund (TEF) in 2003 as a state deal-closing 

fund for economic development. In 2008, Gov. Perry 

announced an award of $1 million from the TEF to the 

Austin-based thin film photovoltaic manufacturer, 

HelioVolt. The award contributed to the company’s 

decision to locate a 122,400 sq. ft. development and 

manufacturing facility in Austin, which will generate 

$62 million in capital investment and create 158 new 

solar industry jobs. In 2011, the company raised a 

further $85 million in venture capital funding. 

Many Texas communities and utilities have adopted 

innovative financing mechanisms aimed at encouraging 

residential and commercial solar installations. A 

number of electric utilities offer incentives to help 

consumers deal with the high upfront cost and long 

payback periods associated with solar PV systems. 

Oncor, Entergy, Texas New Mexico Power Company, 

AEP Texas, Southwestern Electric Power Company, 

El Paso Electric, Austin Energy, and CPS 

Energy are among the Texas utilities that offer residential 

and non-residential incentives, between $1.50 

to $2.50 per watt installed. These installation incen- 

tives can be combined with a 30% federal 

tax credit to greatly reduce the cost 

of installing rooftop solar panels. 

In 2010, Texas power provider TXU 

Energy began leasing solar panels to 

Dallas/Fort Worth area homeowners 

with zero upfront cost and a low 

monthly lease payment.

In September 2009, Texas House Bill (H.B.) 1937 

took effect, enabling cities to establish solar panel 

financing programs. Through this legislation, cities 

can fund the installation of solar panels on residential 

properties, which the homeowners then repay over 

several decades via a small line item on their propertytax 

bills. Austin became the first city to act on this 

legislation. 


According to The Solar Foundation’s National Solar 

Jobs Census 2011, Texas ranks No. 7 among states in 

solar energy industry employment with 3,346 jobs. 

Nationally, solar energy industry employment was 

estimated to be 100,000 in 2011, and is projected to 

grow 24% in 2012. Solar energy jobs are split between 

installation (52%), manufacturing (24%), sales/ 

distribution (18%), and other (6%). 

Texas is home to one of the largest semiconductor 

industries in the country, with 152 semiconductor machinery, 

semiconductor, and solar cell manufacturing 

firms employing nearly 30,000 workers with an average 

annual salary exceeding $103,183. The semiconductor 

manufacturing industry produces solar cells, 

integrated circuits, memory chips, microprocessors, 

transistors, and other devices related to the solar energy 

industry. 

A variety of educational programs, from one-day short 

courses to solar energy certificates and associates degrees 

are offered within the state. See factbox at right. 

Solar Energy-Related Employment in Texas 


Solar Training Initiatives in Texas 

The Texas State Technical College 

(TSTC) offers solar courses 

at their Waco Campus and 

West Texas Campus in Sweetwater. These schools 

offer Solar Technician Certificates and a Solar Energy 

Technology A.A.S. Degree. 

Austin Community College (ACC) in 

Austin, Texas offers design and installation 

courses for solar photovoltaic 

and solar thermal systems. ACC is also 

developing curriculum for professional certification 

and other solar-related continuing education 

courses. 

In 2009, the South-Central Solar Training 

Consortium (SCSTC) was awarded 

one of nine Solar Installer Instructor 

grants by the DOE. The SCSTC is a collaboration 

led by the Houston Community 

College System (HCCS) and Houston-based Ontility, 

a leading provider of solar installation training 

services. At the HCCS Northeast Campus, students 

take courses in solar PV and solar thermal systems. 

Ontility also offers training courses throughout the 

state and on the internet. 

ImagineSolar offers a variety of solar training programs 

in Austin, Texas, for new and experienced 

solar industry workers. These services include 

training for PV system design, installation, off-grid 

PV, NABCEP certification, utility-scale PV, sales, 

and smart grid integration. 


Average 

Annual Wage 

Semiconductors, Solar Cells, and Related Devices Mfg. (334413) 129 29,014 $103,480 

Semiconductor Machinery Manufacturing (333242) 23 599 $88,816 

TOTALS 152 29,613 $103,183 


SOLAR 

23

Biofuels & Biomass 

Overview 

T 

exas is well placed to become a major leader in 

the biofuels and biomass industry because the 

state has all the ingredients for success. Texas 

already leads the country in biodiesel production capacity. 

Texas has plentiful and diverse biomass resources, 

a highly skilled petroleum & petrochemicals 

workforce, strong research & development activity, 

and a supportive business climate. 

Biofuels and biomass are similar but distinct renewable 

energy sectors that are well established, comprising 

4.5% of national energy consumption and 48% of 

all renewable energy nationally in 2011. Unlike solar 

and wind energy, which are primarily sold into the 

electric grid for residential and commercial users, biofuels 

and biomass are especially important to the 

transportation and industrial sectors. 

The transportation sector accounts for 

26% of biofuels and biomass energy 

consumption, most of which is biofuels 

such as ethanol and biodiesel. The biomass 

industry generates energy largely 

by burning organic materials, such as 

wood chips, as a substitute for fossil 

fuels. Landfills, wastewater treatment 

plants, and dairy farms are also common 

sources of biomass material. Industrial 

users account for 51% of U.S. 

biofuels and biomass consumption. 

As the nation’s No. 3 crop & livestock 

24 

producing state and home to a large forestry industry, 

Texas is rich in potential biomass resources. The DOE 

ranks Texas No. 10 in the nation for biomass potential, 

including crop and forest residues, methane emissions, 

and potential energy crop farming. 

Ethanol 

Thousand Tons Biomass per Year 

Agriculture 

Urban Waste 

Ethanol biofuels can be produced from corn, sugar 

cane, or other crops rich in sugar or starch, and is usually 

blended with gasoline. In 2011, nearly 14 billion 

gallons of ethanol were produced in the U.S., making 

up 8.9% of national gasoline consumption. 

While the Midwestern corn belt accounts for 91% of 

the nation’s ethanol production, four ethanol plants 

have been built in the Texas Panhandle since 2008. 

Although Texas is not traditionally part of the corn 

belt, the state still ranks No. 7 nationally for ethanol 

production capacity, and Texas’ massive agricultural 

and forestry assets represent potential feedstock 

sources for next-generation biofuels (see page 26). 

Forestry 

Texas Biofuel and 

Biomass Resources 

Source: National Renewable Energy Laboratory

Dallas-based White Energy owns and operates a pair 

of ethanol plants in Hereford and Plainview, Texas. 

These West Texas plants can each produce up to 120 

million gallons per year, using corn and sorghum as 

feedstock. Both facilities became operational in 2008. 

Arkansas-based Murphy Oil USA opened its cornbased 

ethanol plant in Hereford, Texas, in 2011. This 

plant is able to produce 105 million gallons per year. 

Biodiesel 

Biodiesel is a biofuel typically made from soybean oil, 

canola oil, animal fat, or waste vegetable oil. Much 

like ethanol, pure biodiesel is typically blended with 

traditional diesel. In 2011, a record 1.06 billion gallons 

of biodiesel was produced in the U.S., contributing 

1.6% of national diesel consumption. Biodiesel 

is less common than ethanol primarily because ethanol 

benefits from a more favorable set of federal mandates. 

Soybean oil is the most common feedstock for 

U.S.-produced biodiesel with 65% of the market in 

2009. Animal fats (21%) and other vegetable oils 

(14%) made up the remainder. 

As of December 2011, Texas is the largest biodiesel 

producing state with 328 million gallons of production 

capacity from eight refineries. Texas is an ideal location 

for biodiesel refining because the state accounts 

for 10.3% of U.S. diesel demand and is home to a 

world-class petrochemical workforce and related 

infrastructure assets. 

The largest biodiesel plant in the U.S. is located in 

Port Neches, Texas. The 180 million gallon per year 

facility was built in 2008 and is owned by Renewable 

Biofuels Inc., headquartered in Houston, Texas. 

Texas is the No. 1 state for 

biodiesel refining capacity. 

Green Earth Fuels of Houston, located in Galena 

Park along the Houston Ship Channel, is able to produce 

biodiesel from animal fats, vegetable oils, or a 

blend of the two, and has a capacity of 90 million gallons 

per year. The facility opened in 2007. 

The Renewable Biofuels Inc. refinery in Port Neches, Texas. 

It is the largest biodiesel refinery in the United States. 

Biomass 

BIOFUELS & BIOMASS 

Biomass generation plants use wood and wood products, 

landfill waste, agricultural byproducts, and livestock 

waste to generate electricity. Although ethanol 

and biodiesel garner more attention, more biomassderived 

energy was consumed nationwide in 2011, 

mostly in the industrial, residential, and commercial 

energy sectors. 

Most biomass energy is generated on-site for industrial 

use, a common practice in the wood and paper industry. 

Increasingly, new facilities are being constructed 

to generate and sell this type of biomass energy 

to the electric grid. According to ERCOT, Texas 

had at least 124 MW of biomass generation capacity 

in 2011. This number does not include companies that 

generate biomass energy for on-site industrial use. 

In November 2011, Southern Power accepted delivery 

of the first fuel load of wood waste at its Nacogdoches 

Generating Facility. The plant, located in Sacul, 

Texas, is expected to ramp up to its full generating 

capacity of 100 MW in 2012. When completed, the 

project will be one of the largest biomass-fueled electric 

generating facilities in the U.S. 

In 2012, East Texas Electric Cooperative (ETEC) 

plans to break ground on its wood-fueled biomass 

plant in Woodville, Texas. When completed in 2014, 

the plant will have a 50 MW capacity. 

In August 2011, Aspen Power’s 55 MW biomass 

generation facility went operational in Lufkin, Texas. 

The $117 million plant uses wood waste byproducts 

as a feedstock for electricity generation. 

25


Other biomass facilities harvest natural gas from decomposing 

materials, such as landfill waste or cow 

manure. The resulting biogas can be burned to generate 

electricity or further processed and fed into commercial 

natural gas pipelines. Urban landfills and cow 

manure from feedlots or dairy operations are excellent 

feedstock sources for this type of biomass production. 

As of January 2012, the EPA listed 32 Texas landfill 

gas operations capable of generating 101 MW of electricity 

and 64 million cubic feet of natural gas per day. 

Many Texas landfills harvest methane with this technology. 

One example is the Atascocita Recycling 

and Disposal Facility in Harris County, Texas. This 

facility collects and burns the methane gas naturally 

emitted by decomposing waste, selling the resulting 

electricity into the state’s power grid. 

Located near Stephenville, Texas and owned by Element 

Markets, Huckabay Ridge is the largest renewable 

natural gas plant in North America. Huckabay 

Ridge utilizes manure and other agricultural waste 

using a process called anaerobic digestion. The resulting 

biogas is then purified to commercial natural gas 

standards and distributed through pipelines. The facility 

can produce an aggregate of one billion cubic feet 

of biogas per year. Element Markets, a biogas production 

and marketing company based in Houston, is currently 

constructing another renewable natural gas 

plant using the same technology in Hereford, Texas. 

In February 2012, Royal Dutch Shell opened a biofuels 

pilot plant in Houston, Texas. The plant will produce 

“drop-in” biofuels which, unlike ethanol, are 

chemically identical to fossil fuel-based gasoline. This 

product has the advantage of being dropped into the 

existing fuel supply without the need for ethanolspecific 

infrastructure and engine modifications. 

26 


Biofuels & Biomass 

Building on the state’s strong agricultural and forestry 

production base, Texas researchers and businesses are 

investing in new renewable biofuels and biomass technologies 

to maintain the state’s position as the nation’s 

energy capital. Like other forms of renewable 

energy, the modern biofuels and biomass industry is a 

relatively young industry that expects to evolve considerably 

before achieving widespread adoption. 

First generation biofuels currently use corn, soybeans, 

and other food crops grown on prime agricultural 

land. Because this land is in high demand, it is difficult 

to economically produce first generation biofuels 

in significant volumes at competitive prices. 

Therefore, most biofuel research focuses on next generation 

biofuels, such as cellulosic ethanol and algaederived 

biofuels, that utilize non-food feedstock 

sources that can be economically produced in large 

volumes. These technologies have not yet reached 

commercial production status, although a few cellulosic 

ethanol plants are projected to begin small scale 

production nationwide in 2012. 

Cellulosic Biofuels 

Cellulosic ethanol can be produced using a method 

similar to the corn-based ethanol process, with an additional 

step added to convert cellulose-rich plant ma- 

The Huckabay Ridge Project in Stephenville produces and 

distributes biogas made from agricultural waste.

terial into starches and sugars. The feedstock for cellulosic 

ethanol can be almost any plant material, which 

allows the industry to focus on non-food feedstock. 

Agricultural and forestry waste are prime candidates, 

such as corn stalks and cobs, cotton gin trash, and 

lumber residue. 

Other research focuses on purpose-grown energy 

crops that can flourish on low value land, ideally in 

semiarid climates or using brackish water. For example, 

Texas Tech University researchers are focusing 

on potential feedstocks suitable for arid and semiarid 

climates in the Southwest United States, such as 

switchgrass, a fast-growing native grass that can be 

cultivated on marginal land. 

KiOR, a biofuels company based in Pasadena, Texas, 

hopes to be the first to achieve commercial production 

of cellulosic biofuels. The company’s proprietary 

technology converts low-value byproducts such as 

wood chips into “biocrude,” a product chemically 

similar to conventional crude oil. Biocrude can be sold 

to conventional refiners and processed into gasoline, 

diesel, and other products. KiOR operates their R&D 

lab, pilot plant, and demonstration facility in Pasade- 

Texas Powers Up Two of the Nation’s 

First Biogas-to-Energy Facilities 

Ameresco, a U.S.-based energy services provider, 

has partnered with the cities of San Antonio and 

Dallas on two innovative biogas energy recovery 

facilities. Biogas is a byproduct of the sewage treatment 

process that is typically flared off at treatment 

plants. 

In October 2010, the San Antonio Water System became 

the nation’s first water district to hook up a 

biogas facility to a commercial gas pipeline. The city 

estimated it will save $200,000 annually. 

In April 2011, the City of 

Dallas Water Utilities announced 

the completion 

of its own biogas facility, 

which is expected to save 

the city around $1.5 million 

annually. 

na. Construction on its 11 million gallon per year 

commercial plant in Mississippi is expected to be the 

first commercial-scale cellulosic biofuel plant when it 

is completed mid-2012. 

Algae Biofuels 


KiOR Biocrude demonstration facility in Pasadena, Texas 

Another attractive biofuel source is algae. Algae cells 

are oil-rich and can rapidly grow in either closed tanks 

or open ponds. The fast-growing characteristics of 

microalgae make this emerging technology very 

promising in terms of land use. An estimated 5,000 

gallons of biodiesel can be harvested per acre per year 

from microalgae, which far exceeds the 60 gallons per 

acre possible from soybean-based biodiesel. 

Algae-derived biofuels are also attractive because 

microalgae are capable of thriving with brackish water 

and marginal land, resources which are cheap and not 

in competition with food production. 

UT-Austin is home to one of the world’s largest collections 

of algae, the Culture Collection of Algae 

27


(UTEX). It has more than 3,000 strains and supplies 

them to scientists and businesses around the world for 

research and development purposes. 

In 2010, Joule Unlimited built a biofuels pilot plant 

in Leander, Texas using a microorganism similar to 

algae. The Massachusetts-based company has developed 

a closed-loop process using sunlight, carbon 

dioxide, non-potable water, and a microorganism catalyst 

to create ethanol and diesel. Following on the 

success of the Leander pilot plant, the company is 

building a demonstration-scale plant in New Mexico. 

The Southwest Research Institute (SwRI) in San 

Antonio is one of the oldest applied research and development 

organizations in the nation. SwRI investigates 

a wide range of engineering challenges, including 

biodiesel. The institute’s full-service facilities 

include chemical analysis, fuel blending, lab-scale 

production, and emissions testing. 

Government Initiatives 

To date, federal and state governments have played a 

large role in developing the biomass industry through 

renewable fuel standards, production tax credits, and 

support for research and development activities. 

The Texas Tax Code offers a biofuel tax exemption; 

biodiesel or ethanol blended with taxable diesel is 

exempt from the $0.20 per gallon diesel fuel tax. 

Federal biofuels subsidies have taken the form of an 

income tax credit for companies that blend biofuels 

28 

into the petroleum-based fuel supply. The ethanol 

subsidy, first enacted in 1978, has ranged between 

$0.40 and $0.60 per gallon over the years. The cornbased 

ethanol subsidy was allowed to expire at the end 

of 2011 and is unlikely to be renewed. The $1.00 per 

gallon subsidy for cellulosic ethanol remains in place 

for now, and could be renewed before it also expires 

at the end of 2012. 

A similar $1.00 per gallon federal tax credit for biodiesel 

blending was established in 2005. The biodiesel 

credit expired at the end of 2009, was reinstated for 

2011, and expired again in January 2012. While these 

programs have helped develop biofuel production in 

the past, this regulatory uncertainty discourages investment. 

Now that the ethanol and biodiesel production tax 

credits have expired, the federal Renewable Fuel 

Standard (RFS) will assume a greater role in promoting 

the biofuels industry. The RFS was enacted in 

2005 to encourage the development of renewable 

transportation fuels by mandating their usage. For 

2012, the requirement amounts to 15.2 billion gallons 

of renewable fuels, including ethanol and biodiesel, 

which is projected to be 9.3% of all fuel used nationwide 

in 2012. 

Created in 2005 by the Texas Legislature, the Texas 

Emerging Technology Fund (TETF) provides Texas 

with an advantage in the research, development, and 

commercialization of new technologies. As of mid- 

2012, the TETF has invested over $11.7 million in 

emerging biofuels and biomass technology. 

In 2007, The TETF awarded $4 million to Texas 

AgriLife Research, part of the Texas A&M System, 

TETF Invests in Photon8 

In 2010, the Texas Emerging Technology Fund invested 

$1 million in Photon8, a Brownsville, Texas, 

algae biofuels company. Photon8 is working to 

commercialize a novel process that converts algaebased 

lipids into renewable biofuel. The company 

is working in partnership with the University of 

Texas at Brownsville and Texas Southmost College.

as a component of the $49 million Algae Biofuels 

Consortium, a multi-institution, multi-state effort to 

conduct algae research and development leading to 

economically viable commercial-scale production of 

biofuels. In addition to studying algae-based biofuels, 

Texas AgriLife Research is also researching other 

biofuel feedstock, such as sorghum, energy cane, and 

various oilseeds. 


Precise employment figures for the U.S. biofuels & 

biomass industry are not available, but estimates show 

that Texas is a leader in industry employment. In 

2009, the Biomass Power Association estimated countrywide 

biomass employment at 14,000 jobs. 

In 2008, the National Biodiesel Board estimated 

52,000 jobs in the biodiesel industry nationwide. A 

separate study in 2008 by the Biodiesel Coalition of 

Texas estimated the statewide economic impact of the 

biodiesel industry to be nearly 10,000 jobs. 

Texas arguably has the largest pool of skilled workers 

for biofuels and biomass production. The Lone Star 

State is home to the nation’s largest energy and chemicals 

workforce. Texas ranks No. 1 in employment 

with more than 53,000 workers in petroleum refining 

and basic chemical manufacturing industries. These 

Biofuels and Biomass-Related Employment in Texas 




Texas AgriLife Research—Pecos, Texas 

are high wage, high skill workers with an average 

annual salary of nearly $110,000, according to the 

U.S. Bureau of Labor Statistics and the Texas Workforce 

Commission. Many of the industrial processes 

and chemical transformations used in biofuels production 

are very similar to processes used in oil refining 

and petrochemical manufacturing. While most of these 

workers are not currently involved in the biofuels 

and biomass industry, their skills translate well from 

fossil-fuel based industries used in renewable biofuels. 

The Texas workforce is also No. 2 nationally for 

building pipes, valves, tanks, and specialty equipment 

for chemical processing. 

Average 

Annual Wage 

Petroleum Refining (32411) 96 21,540 $116,792 

Basic Chemical, Petrochemical, Ethanol, Biodiesel Mfg. (3251) 230 31,522 $105,300 

TOTALS 326 53,062 109,965 


29

Office of the Governor 

Economic Development and Tourism 

PO Box 12428, Austin, TX 78711 

512-936-0101 

www.TexasWideOpenForBusiness.com

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