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Conduit Power to Develop 200 MW of Distributed Generation in ERCOT; Secures Diamondback Energy and Granite Ridge Resources as Financial Partners
HOUSTON--(BUSINESS WIRE)--Conduit Power, LLC ("Conduit") has entered into financial agreements with Diamondback Energy, Inc. (NASDAQ: FANG) ("Diamondback") and
About this update from Diamondback Energy, Inc.
[{"type":"text","content":" HOUSTON--(BUSINESS WIRE)--Conduit Power, LLC (\"Conduit\") has entered into financial agreements with Diamondback Energy, Inc. (NASDAQ: FANG) (\"Diamondback\") and Granite Ridge Resources (NYSE: GRNT) (“Granite Ridge”) related to Conduit’s development of 200 megawatts (“200 MWs”) of new natural gas power generation assets for the sale of energy and ancillary services to the Electric Reliability Council of Texas (“ERCOT”), Texas’s largest power grid operator. Under the agreements, Conduit will build, own and operate a total of 200 MWs of distributed power generation capacity to be strategically located across ERCOT’s Load Zone West in West Texas. The high concentration of intermittent renewable generation combined with increasing load growth is causing an imbalance in power supply and demand within Load Zone West. Conduit’s distribution scale power resources can be placed into service quickly and efficiently to increase grid reliability, help stabilize this imbalance, and generate a significant return on invested capital. Diamondback and Granite Ridge will each commit to a fixed capacity payment to Conduit in exchange for a preferred share of power proceeds generated by Conduit. Following installation and grid interconnection, Conduit will operate and dispatch the power and related services in ERCOT through its qualified scheduling entity (“QSE”). The facilities are targeted for phased installation with the first sites achieving commercial operation in 2026. “This arrangement allows Conduit to scale dispatchable generation in ERCOT alongside two premier upstream companies, Diamondback and Granite Ridge,” said Matthew Herpich, CEO of Conduit. “By pairing high-efficiency generation technology with disciplined commercial structures, we can deliver reliable power to the grid while creating durable value in Texas power markets.” “For years the Permian has suffered from a lack of takeaway capacity for its associated gas,” said Tyler Farquharson, President and CEO of Granite Ridge. “We see this as a win-win opportunity for our shareholders to participate in enhanced well-level economics through power sales and bring up to 200 MWs of much needed new power generation to the ERCOT grid.” About Conduit Power Conduit Power is an Independent Power Producer (“IPP”) and services platform established to design, build, own and operate natural ga...