hou knew?

3 things to know this week: Energy startups announce big wins, evaluating the IRA's first year, and more

How the IRA is affecting clean energy project development, events not to miss, and more things to know this week. Photo via Getty Images

Editor's note: It's a new week — start it strong with three quick things to know in Houston's energy transition ecosystem. Three energy tech startups are celebrating big wins, experts evaluate the IRA's first year, and events not to miss this week.

Eyes on the IRA

How did the IRA affect energy transition project development? Experts discussed the positive impacts — as well as the challenges still to overcome. Photo courtesy of Renewable Energy Alliance Houston

August 16 marked one year of the Inflation Reduction Act's enactment, and many have taken this first anniversary as an opportunity to look back on its effectiveness and where it's fallen short.

For Carbon Clean, a United Kingdom-founded company, the IRA made all the difference in its expansion into the United States — by way of Houston.

"The impact of the IRA cannot be overstated for our industry, especially for point source carbon capture technology companies like Carbon Clean," Co-Founder, Chair, and CEO Aniruddha Sharma shares with EnergyCapital in an interview. "The momentum created by the law's passage, along with our existing activity in North America, led to the opening of our US headquarters in Houston in March this year. We will double our US headcount to meet demand for CycloneCC, our breakthrough, fully modular carbon capture technology."

At a recent event at Rice University, experts zeroed in on the effect on clean energy project development. While the IRA opened doors for new funding, it also revealed shortcomings when it came to permitting.

"The IRA for developers has been very positive. It provided certainty and allowed developers and investors alike to plan long term," says Omar Aboudaher, senior vice president of development for Leeward Renewable Energy. "With that comes challenges, including exacerbating some existing problems with permitting."

Energy tech startup wins

These three startups have something to celebrate. Photo via Getty Images

Three energy tech startups had some big wins last week — let's take a look.

  • Nauticus Robotics, a Houston-based tech company providing software and hardtech solutions for industrial and government entities, secured a $2.1 million contract extension with one of its biggest clients. Read more.
  • France-based Engie announced that it will acquire Houston-based battery storage startup Broad Reach Power in $1 billion deal. The company launched in 2019 with backing from EnCap Energy Transition, an arm of Houston-based private equity firm EnCap Investments. Read more.
  • Austin-based energy software company P6 Technologies closed a $3.25 million seed round of funding with support from a handful of Houston investors from GOOSE Capital, Artemis Energy Partners, Tupper Lake Partners, and Veritec Ventures. Read more.

Upcoming events to put on your radar

Mark your calendars. Photo via Getty Images

Plan the rest of your August accordingly.

  • August 28-30 — Industrial IMMERSIVE Week attracts the most industrial, energy, and engineering tech professionals making investment, strategy and tactical decisions, or building, scaling and executing pioneering XR/3D/Simulations, digital twin, reality capture, edge /spatial computing, AI/ML, connected workforce & IIoT projects within their enterprise.
  • August 30 — 2023 Energy Research Day will be a showcase of outstanding energy-related research by University of Houston graduate and postdoctoral students. Sponsored by the Division of Research and Graduate School, the event gives industries in the Greater Houston area a chance to see UH research up close and network with future collaborators.
  • August 30-31 — Carbon & ESG Strategies Conference, presented by Hart Energy, will highlight carbon capture and storage projects and technologies onshore and offshore, direct air capture, enhanced oil recovery, responsibly sourced gas, renewable natural gas, federal funding challenges and insurance issues, ESG initiatives, regulatory concerns and much more.

Trending News

A View From HETI

Carbon capture and storage

First-of-its-kind, DOE-backed plant coming to Houston area

Houston power company Calpine announced plans to build the Baytown Carbon Capture and Storage Project, a carbon capture demonstration facility that aims to capture carbon dioxide from the Baytown Energy Center. Photo via DOE

The first full-scale implementation of carbon capture and strorage technology at a natural gas combined cycle power plant in the U.S. is coming to Baytown.

Houston power company Calpine announced plans to build the Baytown Carbon Capture and Storage Project (Baytown CCS Project), which is a carbon capture demonstration facility that aims to capture carbon dioxide from the Baytown Energy Center (BEC). The BEC is a natural gas combined-cycle power plant in Baytown.

The Department of Energy recently announced that it will share in the cost of up to $270 million on the Baytown project. The DOE revealed more details on the project on its website.

The project aims to utilize Shell’s CANSOLV point-source technology to capture up to 2 million metric tons of CO2 per year, which is equivalent to the annual emissions of nearly 450,000 gasoline-powered cars. In addition, the project plans to sequester the CO2 in saline storage sites on the Gulf Coast.

Evaluating the use of greywater cooling to minimize freshwater consumption by reusing wastewater, the project’s primary power and steam off-taker Covestro hopes to prove “technologies that showcase the benefits of decarbonized process heat and electricity in the industrial sector,” according to a news release.

In December of 2023, Calpine was selected by the Department of Energy's Office of Clean Energy Demonstrations for a cost-sharing agreement for a commercial-scale carbon capture and storage project.

"This is a critical step towards decarbonizing Calpine’s facility, which is located on our Covestro Baytown site,” Demetri Zervoudis, Covestro head of operations for North America and Baytown site general manager, said in a previous news release. “Carbon capture and storage technology is an important tool for the chemical industry to reduce carbon emissions, and it is encouraging to see Calpine at the forefront of this transition.”

The Baytown Decarbonization Project was developed collaboratively with local stakeholders in East Houston. According to the company, the project has already incorporated community feedback into the project designs to reduce non-CO2 air pollutants and minimize the usage of freshwater. The company estimates creating 22-26 permanent jobs and 1,500,000 hours of construction jobs and has partnerships with minority-serving institutions.

“Carbon capture is an important technology for decarbonizing the electricity sector and the economy,” Thad Hill, CEO of Calpine Corp said in 2023 when the DOE decided to work with the CSS program. “Calpine is very grateful for the commitment and support for the project by our stakeholders.”

Trending News