National agency announces $100M in funding for energy advancement at Houston event

seeing green

At Houston event, the Department of Energy’s Advanced Research Projects Agency-Energy announced $100 million in cleantech funding. Photos by Jeff Fitlow/Rice University

Rice University played host to the first-of-its-kind event from the Department of Energy’s Advanced Research Projects Agency-Energy, or ARPA-E, earlier this month in which the governmental agency announced $100 million in funding for its SCALEUP program.

Dubbed “ARPA-E on the Road: Houston,” the event welcomed more than 100 energy innovators to the Hudspeth Auditorium in Rice’s Anderson-Clarke Center on June 8. Evelyn Wang, director of ARPA-E, announced the funding, which represents the third installment from the agency for its program SCALEUP, or Seeding Critical Advances for Leading Energy technologies with Untapped Potential, which supports the commercialization of clean energy technology.

The funding is awarded to previous ARPA-E awardees with a "viable road to market" and "ability to attract private sector investments," according to a statement from the Department of Energy. Previous funding was granted in 2019 and 2021.

"ARPA-E’s SCALEUP program has successfully demonstrated what can happen when technical experts are empowered with the commercialization support to develop a strong pathway to market” Wang said. “I’m excited that we are building on the success of this effort with the third installment of SCALEUP, and I look forward to what the third cohort of teams accomplish.”

Rice Vice President for Research Ramamoorthy Ramesh also spoke at the event on how Rice is working to make Houston a leader in energy innovation. Joe Zhou, CEO of Houston-based Quidnet Energy, also spoke on a panel about how ARPA-E funding benefited his company along with Oregon-based Onboard Dynamics’s CEO Rita Hansen and Massachusetts-based Quaise Energy’s CEO Carlos Araque.

Attendees were able to ask questions to Wang and ARPA-E program directors about the agency’s funding approach and other topics at the event.

Houston energy innovators have benefited from programs like SCALEUP.

Quidnet Energy received $10 million in funding from ARPA-E as part of its SCALEUP program in 2022. The company's technology can store renewable energy for long periods of time in large quantities.

In January, Houston-based Zeta Energy also announced that it has secured funding from ARPA-E. The $4 million in funding came from the agency's Electric Vehicles for American Low-Carbon Living, or EVs4ALL, program. Zeta Energy is known for its lithium sulfur batteries

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D.C. energy company secures $233M for ERCOT battery storage projects

fresh funding

The Electricity Reliability Council of Texas’ grid will get a boost courtesy of Lydian Energy.

The D.C.-based company announced the successful financial close of its first institutional project financing totaling $233 million, backed by ING Group and KeyBank. The financing will support three battery energy storage system (BESS) projects in Texas.

Lydian is an independent power producer that specializes in the development, construction and operation of utility-scale solar and battery energy storage projects. The company reports that it plans to add 550 megawatts of energy—which can power approximately 412,500 homes—to the Texas grid administered by ERCOT.

“This financing marks an important step forward as we continue executing on our vision to scale transformative battery storage projects that meet the evolving energy needs of the communities we serve,” Emre Ersenkal, CEO at Lydian Energy, said in a news release.

The projects include:

Pintail

Located in San Patricio county
200 megawatts
Backed by ING

Crane

Located in Crane county
200 megawatts
Backed by ING

Headcamp

Located in Pecos county
150 megawatts
Backed by KeyBank

ING served as the lender for Pintail and Crane projects valued at a combined total of approximately $139 million.

KeyBank provided a $94 million financing package for the Headcamp project. KeyBanc Capital Markets also structured the financing package for Headcamp.

The three projects are being developed under Excelsior Energy Capital’s Fund II. Lydian’s current portfolio comprises 20 solar and storage projects, totaling 4.7 gigawatts of capacity.

“Our support of Lydian’s portfolio reflects ING’s focus on identifying strategic funding opportunities that align with the accelerating demand for sustainable power,” Sven Wellock, managing director and head of energy–renewables and power at ING, said in the release. “Battery storage plays a central role in supporting grid resilience, and we’re pleased to back a platform with strong fundamentals and a clear execution path.”

The facilities are expected to be placed in service by Q4 2025. Lydian is also pursuing additional financing for further projects, which are expected to commence construction by the end of 2025.

“These financings represent more than capital – they reflect the strong demand for reliable energy infrastructure in high-growth U.S. markets,” Anne Marie Denman, co-founding partner at Excelsior Energy Capital and chair of the board at Lydian Energy, added in the news release. “We’re proud to stand behind Lydian’s talented team as they deliver on the promise of battery storage with bankable projects, proven partners, and disciplined execution. In the midst of a lot of noise, these financings are a reminder that capital flows where infrastructure is satisfying fundamental needs of our society – in this case, the need for reliable, sustainable, domestic, and affordable energy.”

Houston American Energy closes acquisition of New York low-carbon fuel co.

power deal

Renewable energy company Houston American Energy Corp. (NYSE: HUSA) has acquired Abundia Global Impact Group, according to a news release.

Houston American reports that the acquisition will allow it to create a combined company focused on converting waste plastics into high-value, drop-in, low-carbon fuels and chemical products. It plans to move forward with Abundia’s plans for developing large-scale recycling projects, with a new facility previously announced for the Gulf Coast, located in Cedar Port Industrial Park, near the Baytown area of Houston.

New York-based Abundia used its proprietary pyrolysis process to convert plastic and certified biomass waste into high-quality renewable fuels. Its founder, Ed Gillespie, will serve as CEO of the combined company and will join HUSA’s board of directors. Peter Longo, who previously served as HUSA's CEO, will serve as chairman of the board. Lucie Harwood was named CFO and Joseph Gasik will serve as COO.

“The completion of this acquisition represents a pivotal transformation for HUSA,” Longo said in a news release. “Abundia has a commercially ready solution for converting waste into valuable fuels and chemicals, with a backlog of development opportunities utilizing proprietary technologies and key industry partnerships. This transaction gives HUSA shareholders a ready-made platform and project pipeline for future value generation as the fuel and chemical industries accelerate their adoption of low-carbon solutions and sustainable aviation fuel.”

The combined company plans to serve what it estimates is a multi-billion-dollar global demand for renewable fuels, Sustainable Aviation Fuel (SAF) and recycled chemical feedstocks, according to the news release.

“This is a landmark moment for Abundia and a major step forward for the renewable industry,” Gillespie added in the release. “Joining forces with HUSA and entering the public capital markets positions us to accelerate growth, scale our technology and expand our influence within the renewable and recycling industries. I am proud of the hard work and determination of both the AGIG and HUSA teams to finalize this transaction. We look forward to delivering shareholder value and critical technologies to reduce carbon emissions.”

Houston American Energy announced the deal in March. The company also closed a $4.42 million registered direct offering in January.

Global energy startup competition returns to Houston this fall

apply now

The Society of Petroleum Engineers' Annual Technical Conference and Exhibition (ATCE) takes place in Houston this fall, and with it comes its ATCE Startup Village Energy Startup Competition.

Held this year at the George R. Brown Convention Center on Oct. 21, the fast-paced pitch competition invites early stage, upstream technology ventures from around the world to present on their companies and technologies in front of venture capitalists, angel investors and industry leaders.

The deadline to apply for the competition is Friday, July 18. Apply here.

The ATCE Startup Village is a partnership between SPE and the Rice Alliance for Technology and Entrepreneurship. Ten primary finalists and two alternates are selected to participate in the competition, where they have the opportunity to win cash prizes and gain mentorship from industry leaders.

Finalists will present a seven-minute pitch, followed by an additional seven minutes of Q&A.

They will also have the opportunity to meet with a panel of industry experts during a private coaching session the week of Sept. 22. Winners will be announced at ATCE in Houston, and finalists and alternates will be notified in late August.

Judging is based on four main criteria:

Innovative technology
Commercial strategy and business plan
Market potential
Management team and advisors

The competition has awarded nearly $460,000 in prize money to startups through the competition to date, according to the ATCE's website. Past winners have come from Canada, France, the Netherlands, Brazil, Saudi Arabia and the United States.

Several Houston teams pitched at the 2024 competition during the 100th annual ATCE in New Orleans. The local teams included:

Decimetrix, led by CEO Alejandro Zotti, went on to win the Best in Show and People's Choice awards. Revolink Technology Company earned the Rising Star, or runner up, award.

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