collaboration station

Houston renewable energy developer teams up with global commercial real estate biz

Catalyze has teamed up with Cushman & Wakefield to expand installation of solar panels and battery storage technology. Photo courtesy of Catalyze

Houston-based Catalyze, a developer of independent power systems, has teamed up with commercial real estate services powerhouse Cushman & Wakefield to expand installation of solar panels and battery storage technology at U.S. commercial and industrial properties.

The two companies say the partnership will help owners and tenants of office buildings, warehouses, and other commercial properties reduce utility costs, boost operating income, achieve environmental goals and ease stress on the power grid.

“This partnership marks a significant step forward in our mission to accelerate the adoption of renewable energy among commercial and industrial customers, benefiting both tenants and building owners,” Jared Haines, CEO of Catalyze, says in a news release.

The partnership will enable Cushman & Wakefield to decrease greenhouse gas emissions at facilities it manages for clients as well as its own corporate offices. The real estate sector accounts for about 40 percent of greenhouse gas emissions around the world.

“Our strategic partnership with Catalyze is a testament to our shared commitment to decarbonize the built environment by being at the forefront of the clean energy revolution,” says Jessica Francisco, Cushman & Wakefield’s chief sustainability officer. “Together, we are poised to advance the adoption of solar and storage technologies while driving down costs for our clients.”

In May, Catalyze announced that it secured $100 million in financing from NY Green Bank to support a 79 megawatt portfolio of community distributed generation solar projects across the state of New York.

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A View From HETI

If we can channel the same sense of urgency and public commitment toward climate change as we did for health crises in the past, climate tech could overcome its current obstacles. Photo via Getty Images

Over the past several decades, climate tech has faced numerous challenges, ranging from inconsistent public support to a lack of funding from cautious investors. While grassroots organizations and climate innovators have made notable efforts to address urgent environmental issues, we have yet to see large-scale, lasting impact.

A common tendency is to compare climate tech to the rapid advancements made in digital and software technology, but perhaps a more appropriate parallel is the health tech sector, which encountered many of the same struggles in its early days.

Observing the rise of health tech and the economic and political support it received, we can uncover strategies that could stabilize and propel climate tech forward.

Health tech's slow but steady rise

Health tech’s slow upward trajectory began in the mid-20th century, with World War II serving as a critical turning point for medical research and development. Scientists working on wartime projects recognized the broader benefits of increased research funding for the general public, and soon after, the Public Health Service Act of 1944 was passed. This landmark legislation directed resources toward eradicating widespread diseases, viewing them as a national economic threat. By acknowledging diseases as a danger to both public health and the economy, the government laid the groundwork for significant policy changes.

This serves as an essential lesson for climate tech: if the federal government were to officially recognize climate change as a direct threat to the nation’s economy and security, it could lead to similar shifts in policy and resource allocation.

The role of public advocacy and federal support

The growth of health tech wasn’t solely reliant on government intervention. Public advocacy played a key role in securing ongoing support. Voluntary health agencies, such as the American Cancer Society, lobbied for increased funding and spread awareness, helping to attract public interest and investment. But even with this advocacy, early health tech startups struggled to secure venture capital. VCs were hesitant to invest in areas they didn’t fully understand, and without sustained government funding and public backing, it’s unlikely that health tech would have grown as quickly as it has.

The lesson here for climate tech is clear: strong public advocacy and education are crucial. However, unlike health tech, climate tech faces a unique obstacle — there is still a significant portion of the population that either denies the existence of climate change or doesn’t view it as an immediate concern. This lack of urgency makes it difficult to galvanize the public and attract the necessary long-term investment.

Government support: A mixed bag

There have been legislative efforts to support climate tech, though they haven’t yet led to the explosive growth seen in health tech. For example, the Federal Technology Transfer Act of 1986 and the Bayh-Dole Act of 1980 gave universities and small businesses the rights to profit from their innovations, including climate-related research. More recently, the Inflation Reduction Act (IRA) of 2022 has been instrumental in advancing climate tech by creating opportunities to build projects, lower household energy costs, and reduce greenhouse gas emissions.

Despite this federal support, many climate tech companies are still struggling to scale. A primary concern for investors is the longer time horizon required for climate startups to yield returns. Scalability is crucial — companies must demonstrate how they will grow profitably over time, but many climate tech startups lack practical long-term business models.

As climate investor Yao Huang put it, “At the end of the day, a climate tech company needs to demonstrate how it will make money. We can apply political pressure and implement governmental policies, but if it is not profitable, it won’t scale or create meaningful impact.”

The public’s role in scaling climate tech

Health tech’s success can largely be attributed to a combination of federal funding, public advocacy, and long-term investment from knowledgeable VCs. Climate tech has federal support in place, thanks to the IRA, but is still lacking the same level of public backing. Health tech overcame its hurdles when public awareness about the importance of medical advancements grew, and voluntary health agencies helped channel donations toward research and innovation.

In contrast, climate nonprofits like Cool Earth, Environmental Defense Fund, and Clean Air Task Force face a severe funding shortfall. A 2020 study revealed that climate nonprofits aiming to reduce greenhouse gas emissions only received $2 billion in donations, representing just 0.4% of all philanthropic funding. Without greater public awareness/sense of urgency and financial support, these groups cannot effectively advocate for climate tech startups or lobby for necessary policy changes. This type of philanthropic funding is also known as ‘catalytic capital’ or ‘impact-first-capital’. Prime Impact Fund is one such fund that does not ‘view investments as concessionary on return’. Rather their patient and flexible capital allows support of high risk, high-reward ventures.

A path forward for climate tech

The most valuable insight from health tech’s growth is that government intervention, while critical, is not enough to guarantee the success of an emerging sector. Climate tech needs a stronger support system, including informed investors, widespread public backing, and nonprofits with the financial resources to advocate for industry-wide growth.

If we can channel the same sense of urgency and public commitment toward climate change as we did for health crises in the past, climate tech could overcome its current obstacles.The future of climate tech depends not just on government policies, but on educating the public, rallying financial support, and building a robust infrastructure for long-term growth.

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Nada Ahmed is the founding partner at Houston-based Energy Tech Nexus, a startup hub for the energy transition.

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