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$3B fund closes, top movers and shakers, and more trending Houston energy transition news from the week

Here are the top stories for the week within Houston energy transition news. Photo via Getty Images

Editor's note: It's been a busy news week for energy transition in Houston, and some of this week's headlines resonated with EnergyCapital readers on social media and daily newsletter. Trending news included the closing of Ara Partners' $3 billion fund, a report on Houston as a climate tech hub, and more.

Houston energy tech PE group raises $3B third fund

Ara Partners has announced the closing of its third fund. Photo via Getty Images

A Houston-based private equity firm that focuses on industrial decarbonization investments has closed its latest fund.

Ara Partners has secured over $3 billion of new capital commitments for its Ara Fund III, closing $2.8 billion of limited partner commitments, which represents an oversubscription of its $2 billion initial target.

"We are grateful for the extraordinary interest in Fund III demonstrated by Ara's increasingly global, blue-chip investor base," Charles Cherington, managing partner of Ara, says in a news release. "The strong support from new and existing investors, is a testament to their confidence in our talented team, our investment strategy, and the compelling opportunities in the industrial decarbonization sector." Continue reading.

Houston energy workforce-focused startup raises $2.5M seed funding

Digital Wildcatters, founded by Collin McLelland (right) and Jacob Corley, just raised $2.5 million in funding. Photo courtesy

With $2.5 million in fresh funding, Digital Wildcatters is on its way to keep empowering the evolving energy workforce.

Digital Wildcatters, a Houston company that's providing a community for the next generation of energy professionals, has closed its seed plus funding round at $2.5 million. The round by energy industry veteran Chuck Yates, who also hosts his podcast "Chuck Yates Needs a Job" on the Digital Wildcatters' podcast network.

"Our industry's survival depends on recruiting the next generation of energy workers. We must adapt to their digital, content-rich world, as we currently lag behind, like a VHS tape in a Netflix world. Digital Wildcatters is our path to modernization," Yates, based in Richmond, Texas, says in the news release. Continue reading.

Movers and shakers: Top executive moves in Houston energy transition of 2023

Promotions, corporate ladder climbing, and other top mover and shaker stories on EnergyCapital this year. Photos courtesy

From new board seats to internal promotions, this year marked a big one for some of Houston's energy leaders. Here were the top five most-read articles covering the mover and shaker news of 2023. Continue reading.

Report evaluates Houston's potential as a climatetech hub with 6 key takeaways

The Texas Climate Tech Collective issued its 2023 report tracking Houston's progress as a climatetech hub. Photo via Getty Images

Three Houston energy tech innovators sought to quantify Houston's growth as an energy tech ecosystem, and, after 200 survey respondents and dozens of interviews, they've created six calls to action for the city.

Taylor Chapman, Gabe Malek, and Deanna Zhang created the Texas Climate Tech Collective to issue the Houston's Climate Tech Ecosystem 2023 report. The trio revealed some of its key takeaways at Greentown Houston's Climatetech Summit last month.

"We wanted to understand how the city has evolved," Malek, who's also chief of staff at Fervo Energy, said at the event. "We went into this project with a shared belief that Houston has unique characteristics that set it apart from the other cities thinking about climate, and if we could really lean into those characteristics, develop them, and amplify them, we could help grow the ecosystem in Houston and build climate solutions ... to accelerate the energy transition." Continue reading.

City of Houston takes step toward resiliency with $1.7B project milestone

The plant has the capacity to provide the city with over 400 million gallons of clean drinking water daily due to the state-of-the-art intake pump system located 900 feet from the shore of Lake Houston. Photo courtesy of the Mayor's Office

A new project that will increase Houston's resilience in the face of climate change-driven storms has delivered.

Houston Mayor Sylvester Turner and Houston Public Works and other water provider organizations celebrated the newly operational Northeast Water Purification Plant Expansion, which is the culmination of a $1.7 billion project.

The multi-year construction project began in 2017. The plant has the capacity to provide the city with over 400 million gallons of clean drinking water daily due to the state-of-the-art intake pump system located 900 feet from the shore of Lake Houston. Continue reading.

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A View From HETI

Matthew Costello, CEO and co-founder of Voyager Portal, joins the Houston Innovators Podcast. Photo courtesy of Voyager

For several years now, Matthew Costello has been navigating the maritime shipping industry looking for problems to solve for customers with his company, Voyager Portal.

Initially, that meant designing a software platform to enhance communications and organization of the many massive and intricate global shipments happening every day. Founded in 2018 by Costello and COO Bret Smart, Voyager Portal became a integral tool for the industry that helps users manage the full lifecycle of their voyages — from planning to delivery.

"The software landscape has changed tremendously in the maritime space. Back in 2018, we were one of a small handful of technology startups in this space," Costello, who serves as CEO of Voyager, says on the Houston Innovators Podcast. "Now that's changed. ... There's really a huge wave of innovation happening in maritime right now."

And, predictably, some of those waves are caused by new momentum within the energy transition.

"The energy transition has thrown up a lot of questions for everyone in the maritime industry," Costello says. "The regulations create a lot of questions around cost primarily. ... And that has created a huge number of opportunities for technology."

Fuel as a primary cost for the maritime industry. These cargo ships are traversing the world 24/7 and burning fuel at all times. Costello says there's an increased focus on the fuel process — "all with a goal of essentially reducing carbon intensity usage."

One of the ways to move the needle on reducing the carbon footprint of these ships is optimizing the time spent in port, and specifically the delays associated. Demurrage are charges associated with delays in loading and unloading cargo within maritime shipping, and Costello estimates that the total paid globally in demurrage fees is around $10 billion to $20 billion a year.

"These fees can be huge," Costello says. "What technology has really enabled with this problem of demurrage is helping companies drill down to the true root cause of what something is happening."

All this progress is thanks to the enhancement — and wider range of acceptance — of data analysis and artificial intelligence.

Costello, who says Voyager has been improving its profitability every quarter for the last year, has grown the business to around 40 employees in its headquarters of Houston and three remote offices in Brazil, London, and Singapore. The company's last round of funding was a series A in 2021. Costello says the next round, if needed, would be next year.

In the meantime, Voyager is laser focused on providing optimized, cost-saving, and sustainable solutions for its customers — around half of which are headquartered or have a significant presence in Houston. For Costello, that's all about putting the control back into the hands of his customers.

"If we think back to the real problems the industry faces, a lot of them are controlled by different groups and parties. The fact that a ship cannot get in and out of a port quickly is not necessarily a function of one party's issue — it's a multitude of issues, and there's no one factor," Costello says on the show. "To really make the whole process efficient end-to-end you need to provide the customer to access and options for different means of getting cargo from A to B — and you need to have a sense of control in that process."

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This article originally ran on InnovationMap.

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