FROM THE GOVERNOR

Abbott announces new Eli Lilly Manufacturing investment in Harris County

HOUSTON – Governor Greg Abbott announced Eli Lilly and Company (Lilly) will construct an active pharmaceutical ingredient (API) manufacturing facility, totaling around 1 million square feet in Harris County during a press conference at Generation Park. Lilly will invest more than $6.5 billion and create more than 600 new jobs. A Texas Enterprise Fund (TEF) grant of $5.5 million has been extended to Lilly, and the project has been approved under the Texas Jobs, Energy, Technology, and Innovation (JETI) program.

“Texas is the best state in America for doing business,” said Governor Abbott. “This announcement by Lilly will boost pharmaceutical manufacturing in the state of Texas and ensure that we do not rely on other countries for the manufacturing and supply of medicines and medical supplies. Texas is doing its part to bring manufacturing capacity back to America and expanding biomedical manufacturing right here in our great state.”

The new site in Harris County will focus on domestic production of next-generation small molecule synthetic medicines. This is the largest investment in API manufacturing in Texas to date. Lilly’s announcement of greater- than- expected capital investment and job growth goes beyond its original commitments during the incentive application process. Together, Lilly and Texas will help shape the future of pharmaceutical manufacturing for the nation and the world.

“Our new U.S. manufacturing facilities are more than just an investment in infrastructure —they’re a commitment to American innovation, onshoring jobs, economic growth, and public health,” said David A. Ricks, Lilly Chair and CEO. “By expanding our domestic footprint, we’re strengthening our supply chain, reducing reliance on overseas production, and accelerating the del ivery of life-changing medicines to patients. This is a win for Lilly, a win for American workers, and most importantly, a win for the communities and patients we serve.”

“Lilly’s decision to invest more than $6.5 billion in Harris County is a powerful testament to the strength of our community and its ability to support lifesaving work in the life sciences and create living wage jobs and equitable economic opportunities for working families in Harris County,” said Harris County Commissioner Rodney Ellis. “Harris County is unmatched for its speed to market, world-class infrastructure, and exceptional workforce. Harris County, along with partners at McCord Development in Generation Park and San Jacinto College, have built an ecosystem that is purposefully designed for life science projects—offering bestin- class infrastructure, workforce training, and a community environment that connects innovation with quality of life.”

“Sheldon Independent School District (ISD) is proud to welcome Lilly to our community,” said Sheldon ISD Superintendent Dr. Demetrius Mc-Call. “This partnership represents a shared commitment to innovation, education, and opportunity. Together, we will empower our students with the skills and experiences they need to thrive in a global workforce.”

“This is a transformative moment for the Houston region and our life sciences industry,” said Greater Houston Partnership President and CEO Steve Kean. “The Lilly project represents one of the largest for-profit life sciences investments in Texas history and is a powerful endorsement of Houston’s growing position as a global hub for innovation, advanced manufacturing, and biomedical excellence. This win reflects years of strategic work by partners across the public and private sectors to build the talent, infrastructure, and business environment needed to attract world-class companies like Lilly.”

The Governor was joined by Lilly Chair and CEO David Ricks, Congresswoman Sylvia Garcia, Representative Harold Dutton, Harris County Commissioner Rodney Ellis, Mayor of Houston John Whitmire, and other local and state officials and public health advocates.

Abbott announces Texas Energy Fund Loan To 721 MW Natural Gas Facility in Southeast Texas AUSTIN — Governor Greg Abbott announced the third Texas Energy Fund (TxEF) loan agreement for a 721 megawatt (MW) natural gas power plant near Baytown. NRG Energy, Inc. (NRG) will build the plant, which is estimated to begin generating power by summer 2028 and will serve the Electric Reliability Council of Texas (ERCOT) power region.

“Texas continues to grow as more people choose to raise their families and build their businesses in the energy capital of the world,” said Governor Abbott. “This 721 MW investment in the Texas grid will ensure the state continues to meet and provide for this incredible growth with a robust, reliable supply of energy to power Texas homes and businesses.”

“The Texas Energy Fund is bringing reliable, affordable power to ERCOT’s fastest growing regions,” Public Utility Commission of Texas (PUC) Chairman Thomas Gleeson said. “With the 721 MW this new facility will add, the TxEF In-ERCOT Loan Program is already bringing 1,299 new MWs to the ERCOT grid – enough electricity to power hundreds of thousands of Texas homes and businesses, with more on the way.”

“Development of the new unit at our Cedar Bayou power plant will generate significant construction jobs, and once online in 2028 will provide additional permanent jobs, enhanced grid stability and regional economic growth,” said Executive Vice President, President of NRG Business and Wholesale Operations, Robert J. Gaudette. “We are grateful to Governor Abbott, the Texas Legislature, and the PUC for being great partners in helping power Texas forward as electricity demand surges.”

The loan agreement between the PUC and NRG is the third finalized under the TxEF’s In-ERCOT Generation Loan Program, which provides low-interest loans for projects that add new, dispatchable power to the ERCOT region. It is the second TxEF loan received by NRG. Under the loan agreement, total project costs are estimated to be $936 million. The PUC is providing a 20-year TxEF loan of $562 million, or 60% of the total project cost, at a 3% interest rate. The loan term runs from Sept. 26, 2025, through Sept. 25, 2045.

The natural gas generation facility is under construction at NRG’s existing Cedar Bayou Generating Station in Chambers County. The project will interconnect in the ERCOT Houston Load Zone, one of the largest electricity demand centers in Texas, which includes Houston, Pasadena, and Sugar Land, and is the fifth largest metropolitan area in the United States.

Under the loan agreement, the facility must meet minimum performance standards, as outlined in the In-ERCOT Generation Loan Program rules.

The TxEF is administered by the PUC through a competitive application process and rigorous financial review of proposed projects.

In addition to the three loan agreements already approved, there are currently 14 applications to the TxEF In-ERCOT Generation Loan Program moving through a due diligence review process. Together, the projects represent an additional 7,671 MW of proposed, new dispatchable generation for the ERCOT grid.

Additional information about the TxEF and the In-ERCOT Generation Loan Program is available on the PUC website.