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Houston-based ‘grid in a box’ provider Branch Energy raises $33M

fresh funding

The company says its proprietary Arc “grid in a box” contains everything needed to store and supply electricity. Photo via LinkedIn

Houston-based startup Branch Energy, which offers a self-contained “grid in a box,” has collected $33 million in a Series B round.

Piva Capital and Clean Energy Ventures led the round, according to a news release. Active Impact Investments, Whitecap Venture Partners, Prelude Ventures, Zero Infinity Partners and Inovia Capital also contributed to the round.

In 2024, Branch raised $10.8 million in an oversubscribed Series A round.

Branch’s business model

Branch, which launched in 2021, says its proprietary Arc “grid in a box” contains everything needed to store and supply electricity. A container about the size of a parking space holds an industrial-grade battery, grid connection equipment, cooling capabilities, autonomous controls and cloud-based management software.

The startup installs Arc systems at warehouses, hotels, factories, stores and other commercial properties. Each system arrives on a flatbed truck and can be online within two days, Branch says.

Under Branch’s business model, a property owner avoids upfront payment for an Arc system.

Aside from equipping a host business with an Arc system, Branch serves as the business’ power provider. The startup says it guarantees savings on the host’s energy bills and delivers backup power during outages.

Branch generates revenue by sending the battery’s stored power to the grid or to customers like hyperscale data centers. It also benefits by shifting energy from low-cost periods at night to high-cost periods during daily power peaks.

The startup handles permitting, installation, insurance and operations for each Arc system. The host provides a parking-lot-sized plot of land for the system.

Alex Ince-Cushman, co-founder and CEO of Branch, says the startup’s “grid in a box” can quickly meet the substantial power requirements of hyperscale data centers.

“We can do it on the timeline of a delivery, not a construction project. Our customers don’t lift a finger, don’t pay a dime and get guaranteed savings,” Ince-Cushman said in the release.

Entering the Illinois market

Branch already operates in Texas and is entering the Illinois market.

PJM, which operates Illinois’ power grid, recently paved the way for major energy users like data centers to connect to the grid sooner when they rely on their own electricity generation. PJM’s territory covers roughly 1.2 million commercial buildings and represents 20 percent of U.S. power demand, according to Branch.

“Grids around the country need the distributed capacity that [the Arc] system can supply, especially in states with fast-growing power demand like Texas and Illinois,” Lee Larson, principal at Piva Capital added in the release.

To keep up with that demand, Branch plans to build tens of thousands of Arc systems in the U.S.

A multibillion-dollar company in the making?

Daniel Goldman, co-founder and managing partner of Clean Energy Ventures, said Branch holds the potential to become a multibillion-dollar competitor in the emerging market for distributed power.

“With utility-scale generation and storage challenged by interconnect and siting constraints, behind-the-meter commercial, and industrial storage sites have become the ultimate market opportunity with ease of interconnect, ability to combine distributed AI data centers, and identifiable savings in rapidly growing markets,” Goldman said.

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Branch Energy aims to provide customers with clean energy at a lower cost than competitors. Photo via Getty Images

Houston clean energy provider raises $10.8M series A

money moves

A tech-driven retail energy provider based in Houston has secured an oversubscribed series A round of funding.

Branch Energy raised a $10.8 million round led by climate-focused venture capital firm Prelude Ventures with co-investor Zero Infinity Partners, an infrastructure tech-focused firm. The fresh funding will go toward accelerating the company's battery management tech and build out the infrastructure of its field services.

A vertically integrated power provider, Branch Energy aims to provide customers with demand management software and battery storage systems to ensure long-term, stable, and clean energy at a lower cost than competitors.

“Our century-old grid design is not equipped for the complexity of today’s energy needs," Alex Ince-Cushman, Branch Energy co-founder and CEO, says in a news release. “Optimizing distributed energy assets in real-time will play an increasingly important role in managing the grid. We built Branch from the ground up as a technology company, allowing us to deliver value to customers in this new era of distributed energy by reducing costs while improving reliability."

The company chose Texas as its inaugural market based on the stress of the grid in the state, the company says in the release. Since 2021 when Branch Energy launched, it has signed up thousands of customers for its 100 percent clean energy service. The business proposition includes lowering customer's energy bills by 5 to 10 percent.

“The power grid, especially in Texas, requires distributed generation and flexible loads as basic economics drives deployment of more renewable resources,” Tim Woodward, managing partner at Prelude Ventures, adds. “Across the country, we are experiencing a major shift toward a decentralized and decarbonized grid. Branch Energy is bringing value to its customers through deployment of intelligent storage that lowers costs and improves reliability.”

Branch Energy, which is available now in some Texas regions, had previously raised $5.5 million in seed and pre-seed funding, per Crunchbase.

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Houston researchers develop heating method to recover critical minerals from e-waste

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Researchers at Rice University have developed a new technique to efficiently recycle electronic waste and harvest critical minerals using rapid heating.

Most electronic devices use flame-retardant plastic. The plastic is formulated from a critical metal called antimony.

However, recapturing antimony is typically a challenging task since it first has to be released from the plastic. As it is released, other compounds can form, such as organic bromides, which are toxic and difficult to capture. However, the organic bromides can also be reused and have applications in industrial chemicals when safely captured.

“Conventionally heating the plastic releases the antimony in a volatile and difficult-to-collect form as well as creating and releasing hazardous organic bromide compounds,” Leo Haoxin Ye, first author of the paper and a graduate student at Rice, said in a news release. “Other options are risky or more impractical, such as using strong acids, organic solvents or multistep treatment options.”

To address this issue, leading Rice chemistry professor James Tour, Ye and their team adapted Tour’s flash Joule heating technique, which heats materials to hundreds of degrees Celsius in milliseconds, according to Rice.

The team ground up flame-retardant plastic waste and placed it between two sheets of electrically heated carbon paper before using what’s known as isothermal-clamped flash Joule heating to release and collect the antimony.

The team found that limiting the time the plastic spent in the high temperature range dramatically reduced the production of the hazardous organic bromide compounds. The plastic remained between 200 degrees and 500 degrees Celsius for only 9.4 milliseconds, according to Rice.

Through the process, the team recovered 90 percent of antimony from tested materials and converted 83 percent of the bromide into hydrogen bromide. Their findings were published this month in the journal Nature Chemical Engineering.

“Isothermal-clamped flash Joule heating could improve the speed, safety and practicality of antimony recovery from discarded flame-retardant plastics,” Tour added in the release. “This represents an important step forward to conserving and reusing our critical antimony supply while also regenerating bromide salts for reuse.”

The study noted that the world is currently trending toward producing 82 million metric tons of flame-retardant plastic waste by 2030, which adds to the fact that e-waste is the fastest-growing solid waste stream in the world.

The research was funded by the Air Force Office of Scientific Research and the U.S. Army Corps of Engineers.

Tesla unveils new Roadster sports car, which can thrust itself in the air

Tesla Talk

Tesla has unveiled its new Roadster sports car, which can thrust itself in the air, among other engineering bells and whistles. But drivers shouldn't expect to take it for a spin anytime soon.

Elon Musk's electric car company rolled out its second-generation Roadster at a Thursday event, showing off a set of cold gas thrusters and a “multi-mode” suction system that can fling the car in the air for short spurts and spin the vehicle mid-flight.

“Turns out the future does have flying cars,” Musk, Tesla's CEO, wrote on his social media platform X shortly after.

That future could be a ways off, however, given the regulatory hurdles for flying vehicles and the tangle of state rules that still need to be met.

“I’m not sure every state is going to allow a driver in the middle of traffic to suddenly elevate himself and fly," said David Vladeck, a Georgetown Law professor and former director of the FTC’s Bureau of Consumer Protection. “There is going to be a long process to let anything like that on a road.”

Thursday's event was hosted at the Texas rocket testing and development center for SpaceX — Musk's publicly-traded rocket company — and Tesla's executives noted that they “borrowed” some SpaceX technology to get the new Roadster in the air. Beyond quick jumps and flips, Tesla also said the car can accelerate from zero to 60 miles (96.6 km) an hour in less than a second.

This launch arrived after years of delays and anticipation around the new Roadster — and Tesla shares climbed in morning trading on Friday before falling amid a sell-off in companies tied to artificial intelligence.

The wait isn't completely over. Musk said production for consumers won't begin until 2028. Tesla also didn't immediately set a price tag on its latest EV.

Tesla was taking reservations for Roadster “rocket” car purchases on its website Friday morning, though the fine print said there was no guarantee when the vehicle would be delivered — or whether it would be delivered at all.

Bryant Walker Smith, former vice chair of a Department of Transportation advisory group on innovation, was unimpressed — though he did note Musk's ability to keep Tesla's stock high.

“This was a demonstration of a one-off car using a technology around for many years and will not be coming to public roads in 2028," said Smith, a law professor at the University of South Carolina. “Tesla pretty uniquely has been able to sell itself on a future that is an order of magnitude greater than reality.”

Musk has repeatedly said that the future of driving will be autonomous — and Austin-based Tesla has focused much of its business on building out self-driving features for its vehicles and, more recently, launching its own (still limited) robotaxi business.

But the company maintains that the Roadster will be made to have humans behind the wheel, calling the EV the “best of the last human-driven cars.”

Thursday's demo was technically autonomous “to make sure we don’t kill anyone,” Musk noted. But long-term, he said, the new Roadster will be “the only manually driven car that Tesla makes.”

“This is not necessarily a safety-optimized car,” Musk later added, met by laughter from the audience. But “it takes the fun meter to 11 out of 10.”

Tesla's first Roadster was launched back in 2008. And in 2018, Musk went as far as placing one on a rocket — with a mannequin dubbed “Starman” in the driver's seat — and launching it into space.

Again, the second-generation Roadster isn't immediately hitting the market. And whether the ambitious new vehicle boosts the company's bottom line remains to be seen.

In second-quarter earnings reported over the summer, Tesla's profits fell as the company spent more on research and development for its robotaxi and robotics businesses — which cut into money made from an otherwise sharp increase in vehicle sales. Net income totaled $1.11 billion for the period, while revenue climbed to $28.24 billion.

TEX-E names New Climate Ventures as latest expert in residence

energy mentors

Texas Exchange for Energy & Climate Entrepreneurship (TEX-E) has named its latest expert in residence.

The Houston-based energy transition nonprofit recently announced that New Climate Ventures will join the newly established program. The Expert-in-Residence partnership aims to connect TEX-E Fellows with "the people and organizations shaping the future of energy and entrepreneurship," the nonprofit previously announced.

Taylor Chapman, an investment principal at New Climate Ventures, sits on TEX-E's board of directors. New Climate Ventures invests in early-stage startups building next-gen technologies in the energy, materials and fuels sectors. The venture capital firm's portfolio includes Houston-based clean energy startups like Solidec, Syzygy Plasmonics and Rheom Materials.

“If you know me, you know that I'm passionate about ensuring that my beloved hometown, Houston, is the energy capital of the future — not just of the past," Chapman said in a LinkedIn post. "TEX-E is building a key piece to ensure that's the case: a strong pipeline of graduate and college students immersed [and] versed in the world of energy [and] climate entrepreneurship."

TEX-E says the partnership with New Climate Ventures will allow its fellows opportunities to learn from investors that work with emerging companies and understand how they evaluate new technologies.

TEX-E announced Houston-based geothermal unicorn Fervo Energy and venture capital firm Mercury Fund as its first experts in residence in August. At the time, it said the partnerships would allow its fellows to network and work with Tim Latimer, CEO of Fervo; Sarah Jewett, COO of Fervo; and Blair Garrou, managing partner of Mercury Fund.

The nonprofit was founded in 2022 through partnerships with MIT Martin Trust Center for Entrepreneurship and Greentown Labs. It works with university students from six schools: Rice University, University of Houston, Prairie View A&M University, The University of Texas at Austin, Texas A&M University and MIT.

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