Gemma Power Systems Leads EPC on SLEC’s 1.2-GW Texas Power Plant

Gemma Power Systems, an Argan business, signed an engineering, procurement, and construction (EPC) contract with Sandow Lakes Energy Co. (SLEC) for a power station in Lee County, TX. A SLEC subsidiary will develop and own the 1.2-GW natural gas-fired plant. Construction is expected to begin in summer 2025, and project completion is scheduled for 2028.

“We’re pleased to have this opportunity to work with SLEC on this substantial project,” said Charles E. Collins IV, CEO of Gemma Power Systems. “There is undoubtedly a critical need to bring more power facilities online to support our power grids in meeting the exponentially growing demand for reliable, high-quality energy. Our team brings expertise and a track record of operational execution with the goal of exceeding customer expectations and delivering project success.”

The combined-cycle power station, supplying electricity to 800,000 homes within the Electric Reliability Council of Texas (ERCOT), will feature two Siemens Energy SGT6-9000HL gas turbines. These turbines deliver high power output, improved fuel efficiency, and hydrogen capabilities with minimal equipment modifications. These turbines can provide ERCOT with reliable power generation while supporting the region’s decarbonization initiatives.

Concept of 1.2-GW plant in Lee County, TX; image credit: Sandow Lakes Energy

ERCOT Storage Support

In January 2025, Trinity Gas Storage (Trinity) commenced Phase 1 operations at its 24 Bcf gas storage facility in East Texas. Its central location and connections to existing pipeline infrastructure allow Trinity to enhance reliability across ERCOT. The company secured contracts with power generators, producers, utilities, and marketing and trading companies, including those with LNG exposure.

The Trinity gas storage facility will assist Texas in balancing the supply and demand of natural gas, providing constant service in periods of peak electricity demand. With increasing demand for Trinity’s services, the company plans to expand the facility’s capacity and deliverability, with the next phase scheduled for completion in Q2 2026.

The facility commenced operation 16 months before the final investment decision due to Trinity’s development and construction capabilities and represents the first greenfield gas storage facility to come online in Texas in more than 10 years. It’s also among the first ERCOT assets to tackle the supply and reliability challenges brought on by Winter Storm Uri. Located in Anderson County, the gas storage facility supports Texas' increasing energy and power demands spurred by rapid AI and data center growth.

Geothermal in ERCOT

In August 2024, Sage Geosystems signed a land-use agreement with San Miguel Electric Cooperative (SMECI) for its 3-MW GGS energy storage facility. The EarthStore system is sited in Christine, TX, near SMECI’s lignite coal power plant, with Sage purchasing and selling electricity to the ERCOT grid.

GGS will leverage Sage’s technology to store energy for 6-to-10-hour durations with an RTE of 70-75% and water losses less than 2%. The energy storage system will be paired with renewable energy, providing baseload, dispatchable power to the electric grid. The EarthStore facility, when coupled with solar power, enables continuous electricity generation at a blended levelized cost of energy under $0.10/kWh. Sage will apply for two drilling permits in Texas: the first in Atascosa County for GGS and the second in Starr County, in proximity to Sage’s existing test well.