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Houston university's compost program reaches major milestone

seeing green

Rice University, which works with Houston-based Moonshot Compost, reported a milestone achievement this month. Photo via Getty Images

Rice University and its campus community have officially diverted over 1 million pounds of food waste from landfills.

The university, which works with Houston-based Moonshot Compost, reported the milestone achievement this month. The program was originally launched in November 2020.

“The genesis of the current composting program was a partnership between Housing and Dining, the Office of Sustainability and an undergraduate student named Ashley Fitzpatrick,” says Richard Johnson, senior executive director for sustainability at Rice, in a news release.

“We spent quite a bit of time developing options for food waste composting at Rice with those efforts really ramping up in 2019. After a pilot project, further reflection and an interruption due to the pandemic, we found Moonshot Compost, and they proved to be the partner we needed.”

Fitzpatrick, the student who started it all went on to graduate and now works for Moonshot Compost. She did leave a legacy of student involvement in the program, and Isabelle Chang now serves as an undergraduate student intern in the Office of Sustainability. The role includes liaising with students and other major players on campus who have feedback for the program.

Rice previously had a composting program, but it never reached the same level of scale, per the news release.

“Many years ago — from the late 1990s to about 2007 — we had an on-campus composting device called the Earth Tub that provided food waste composting at one campus kitchen,” Johnson said. “However, the device failed, and frankly, the process of operating the device, getting the food waste into the device and maintaining it all proved onerous. Interest in composting remained after we decommissioned the Earth Tub, and for years we looked for alternatives [before finding Moonshot Compost].”

Launched in July 2020 by Chris Wood and Joe Villa, Moonshot operates with a team of drivers utilizing its data platform to quantify the environmental benefits of composting. The duo went on to team up with energy industry veteran Rene Ramirez to harness their compost into clean hydrogen power.

Last fall, Moonshot Hydrogen signed a memorandum of understanding with the Purdue Innovates Office of Technology Commercialization. The agreement includes facilitating the first operating commercial pilot that biologically turns food waste into hydrogen.

ESG has certainly come a long way, but has it come too far, actually? Photo via Getty Images

Houston energy tech entrepreneur on if 'ESG' is a dirty word

guest column

Whose responsibility is it to care for the social good? That’s an important, yet hopelessly complex question, particularly when aimed at sustainability.

When it comes to businesses and other profit-seeking firms, they tend to search for a balance between success today and success overtime. Too much focus in either direction can be deadly.

An apt analogy is a virus: too much reproduction too fast and the host dies, which is why the most successful viruses find the threshold for maximizing reproduction without overly weakening the host.

Payment is about to be due, but from whom?

The ESG movement encapsulates targets from ethical investing related to environmental issues, social values and corporate governance. As it relates to climate, people are working hard to determine how much cumulative effect of human activity is too much for our survival. And there continues to be open questions about how businesses should react to the scientific consensus that climate conditions will continue getting worse, without immediate and severe corrective action. If the consensus is that this is a problem for businesses to fix, whose money do they spend to do it?

Greed was good, once

Nobel-winning economist Milton Friedman famously advocated for firms to focus primarily on returning value to shareholders. With respect to social good, he advocated that shareholders use their returns to pursue them; businesses should just chase profit. His 1970 article in the New York Times Magazine is worth a read, particularly his last paragraph, where he observes that corporate dollars spent advancing social responsibility represent the theft of money from investors, customers, or employees. The challenge is, how many negative externalities do we absorb before seeking to redirect corporate profits?

Making impact be part of the analysis

Others have argued that firms have a social responsibility and should pursue, using the term John Elkington coined in 1994, a triple bottom line approach, focusing on profit, people, and planet. Adherents to this approach believe you only get what you measure, and therefore,businesses should measure more than just profit. The challenge is, who is smart enough to balance these accounts?

ESG to the rescue?

The term ESG itself was the result of good intentioned actors in the investment space who wanted to track the efficacy of investing in businesses that scored well for social responsibility. They theorized, and had some support, that these companies outperformed the market. The result was the formation of the Principles for Responsible Investment in 2013, with its six core principles for “incorporating ESG issues into investment practice.”

ESG has certainly come a long way from Milton Friendmen, though it’s challenging to say how the movement is going. From one perspective, it looks like everyone is in trouble. Banks for investing in companies who are not moving fast enough. Energy companies and other producers of consumer products for greenwashing their efforts. Private equity firms for forcing ESG standards that some view as a step-too-far. Financial service companies for assisting in greenwashing. And, of course, the worst offenders are “the woke.” From the other perspective, we are finally starting to see some incentives for companies to address and solve long-ignored problems.

One size fits no one

The question of “Who is responsible for ESG?” reminds me of a presentation I attended in spring 2022, given by a senior executive of a large landfill operator. Before he began his discussion of the environmental impacts of operating a landfill, he noted that his billion dollar company did not really create any trash, it simply collected and received trash from all of us! He was begging the question, “Am I solely responsible for your bad decisions?”

And that’s really the issue with ESG, is it not? Who, for example, is responsible for creating pollution? The energy companies for producing oil and natural gas from underground reserves, or the members of the public who drive cars, buy plastic goods, and flip on the lights? The government for letting those things happen? The answer is sadly both none of us and all of us.

Regulators, mount up

Regulating and investing are often in conflict, but they share one common characteristic: few people have ever done either well. That doesn’t mean we quit trying. There are those among us who can find the signal in the noise, who can stare at a pile of numbers and find the rule that answers the question, or at least correlates well to the desired outcome.

People change expensive behaviors

Charlie Munger famously said, “Show me the incentive, and I’ll show you the outcome.” If I had a magic wand, I would want the power to create global markets for the right to release harmful pollutants / emissions or deposit certain types of waste in landfills. It has worked before, and it will likely be what leads us where we need to go. Until we create marketplaces limiting the release of pollutants and disposal of waste, society will continue to fall prey to complex regulatory solutions that are easy for incumbent industries to strike down. Instead, putting a price on these activities will allow the incumbents to innovate and new companies to compete.

When it comes to ESG, I think we fear two outcomes equally: a world that feels a little out of control and a class of people, or institutions of government, who appear all too confident they have the answers. Maybe we can turn the heat down in the ESG debate by prioritizing what we measure and report and creating marketplaces that incentivize people to solve the most pressing problems.

———

Chris Wood is the co-founder of Houston-based Moonshot Compost.

Houston energy transition folks — here's what to know to start your week. Photo via Getty Images

Houston energy transition events not to miss, expert commentary on climate crisis, and more things to know

take note

Editor's note: Start your week off strong with three quick things to catch up on in Houston's energy transition: a roundup of events not to miss, a new Houston energy executive to know, and more.

Events not to miss

Put these Houston-area energy-related events on your calendar.

    • Future of Energy Summit is Tuesday, February 6, at AC Hotel by Marriott Houston Downtown. Register.
    • The 2024 NAPE Summit is Wednesday, February 7, to Friday, February 9, at the George R. Brown Convention Center. It's the energy industry’s marketplace for the buying, selling and trading of prospects and producing properties. Register.
    • The De Lange Conference, taking place February 9 and 10 at Rice University's Baker Institute for Public Policy, is centered around the theme “Brave New Worlds: Who Decides? Research, Risk and Responsibility” this year. Register.
    • The Future of Energy Across the Americas: Helping Lawyers Predict and Adapt — the 2024 Houston Energy Conference — is February 27 to March 1. Register.
    • CERAWeek 2024 is Monday, March 18, to Friday, March 22, in the George R. Brown Convention Center. Register.

    ​Commentary: Chris Wood, co-founder of Moonshot Compost, on loving the climate apocalypse​

    Chris Wood knows that the last thing anyone wants to be reminded of in 2024 is the impending climate apocalypse, but, as he writes in his guest column, "There is a scientific consensus that the world climate is trending towards uninhabitable for many species, including humans, due in large part to results of human activity."

    He cites a report that 93 percent “believe that climate change poses a serious and imminent threat to the planet.”

    "Until recently reviewing this report, I was unaware that 93 percent of any of us could agree on anything," he writes. "It got me thinking, how much of our problem today is based on misunderstanding both the nature of the problem and the solution?" Read more.

    New hire: Bracewell names new partner to advise clients on energy transition tax incentives

    Bracewell announced that Jennifer Speck has joined the firm's tax department as a partner in the Houston office. Speck will advise clients on energy transition tax incentives.

    Some of her experiences include onshore and offshore wind, solar, carbon capture, clean hydrogen and clean fuel projects. She recently served as senior manager of tax and regulatory compliance at Navigator CO2 Ventures LLC. She graduated in 2010 with a B.F.A. in mental health psychology from Northeastern State University, and received her J.D., with honors, from The University of Tulsa College of Law in 2012. Read more.

    Houston climate tech founder weighs in on his observations on what's true, what's exaggerated, and what all humans can agree on about the climate crisis. Photo via Getty Imagees

    Houston expert: Why climate action needs better PR and how to love the climate apocalypse

    guest column

    The last thing anyone wants in 2024 is a reminder of the impending climate apocalypse, but here it is: There is a scientific consensus that the world climate is trending towards uninhabitable for many species, including humans, due in large part to results of human activity.

    Psychologists today observe a growing trend of patients with eco-anxiety or climate doom, reflecting some people’s inability to cope with their climate fears. The Edelman Trust Barometer, in its most recent survey respondents in 14 countries, reports that 93 percent “believe that climate change poses a serious and imminent threat to the planet.”

    Until recently reviewing this report, I was unaware that 93 percent of any of us could agree on anything. It got me thinking, how much of our problem today is based on misunderstanding both the nature of the problem and the solution?

    We’ve been worried for good reason before 

    It’s worth keeping in mind that climate change is not the first time smart people thought humans were doomed by our own successes or failures. Robert Malthus theorized at the end of the 18th century that projected human fertility would certainly outpace agricultural production. Just a century and a half later, about half of all Americans expected a nuclear war, and the number jumped to as high as 80 percent expecting the next war to be nuclear. Yes, global hunger and nuclear threats still exist, but our results have outperformed the worst of those dire projections.

    We are worried for good reason today 

    Today changing climate conditions have grabbed the headlines. The world’s climate is changing at a rate faster than we can model effectively, though our best modeling suggests significant, coordinated, global efforts are necessary to reverse current trends. While there’s still lots to learn, the consensus is that we are approaching a global temperature barrier across which we may not be able to quickly return. These conclusions are worrisome.

    How did we get here?

    Our reliance on hydrocarbons is at the heart of our climate challenge. If combusting them is so damaging, why do we keep doing it? We know enough about our human cognitive biases to say that humans tend to “live in the moment” when it comes to decision making. Nobel Prize-winning economic research suggests we choose behaviors that reward us today rather than those with longer term payoffs. Also, changing behaviors around hydrocarbons is hard. Crude oil, natural gas and coal have played a central role in the reduction of human suffering over time, helping to lift entire populations out of poverty, providing the power for our modern lives and even supplying instrumental materials for clothes and packaging. It’s hard to stop relying on a resource so plentiful, versatile and reliable.

    How do we get out of here?

    Technological advances in the future may help us address climate in new and unexpected ways. If we do nothing and hope for the best, what’s the alternative? We can take confidence that we’ve addressed difficult problems before. We can also take confidence that advancements like nuclear, solar, geothermal and wind power are already supplementing our primary reliance on hydrocarbons.

    The path forward will be extending the utility of these existing alternatives and identifying new technologies. We need to reduce emissions and to withdraw greenhouse gasses (GHGs) that have already been emitted. The nascent energy transition will continue to be funded by venture capitalists, government spending/incentives and private philanthropy. Larger funding sources will come from private equity and public markets, as successful technologies compete for more traditional sources of capital.

    Climate Tech will be a large piece of the climate puzzle

    My biases are likely clear: the same global capitalism that brought about our complicated modern world, with its apparent abundance and related climate consequences, has the best chance to save us. Early stage climate tech funding is increasing, even if it’s still too small. It has been observed that climate tech startups receiving funding today fail to track solutions for industries in proportion to their related production of GHGs. For instance, the agriculture and food sector creates about 18 percent of global GHGs, while climate tech companies seeking to address that sector receive about 9 percent of climate tech funding. These misalignments aside, the trendlines are in the right direction.

    What can you do?

    From a psychological perspective, healthy coping means making small decisions that address your fears, even if you can’t eliminate the root causes. Where does that leave you?

    Be a voice for reasonable change. Make changes in your behavior where and when you can. Also, take comfort when you see existing industries adopting meaningful sustainable practices at faster rates. Support the companies you believe are part of the solution.

    We are already seeing a burgeoning climate tech industry across the globe and here at home. With concerted efforts like the Ion and Greentown Labs, the Houston climate tech sector is helping to lead the charge. In what was even recently an unthinkable reality, the United States has taken a leadership role. Tellingly, we are not leading necessarily by setting targets, but instead by funding young startups and new infrastructure like the hydrogen hubs. We don’t know when or where the next Thomas Edison will emerge to shine a new light in a dark world. However, I do suspect that that woman or man is alive today, and it’s our job to keep building a world worth that person saving.

    ---

    Chris Wood is the co-founder of Houston-based Moonshot Compost.

    Moonshot Compost has announced its plans to create green hydrogen at scale. Photo via Getty Images

    Houston startup launches clean energy business to turn compost into hydrogen

    waste to power

    You may already know Moonshot Compost, a Houston company devoted to collecting food waste all over Texas. Now, meet Moonshot Hydrogen.

    Founders and brothers-in-law Chris Wood and Joe Villa have joined forces with energy industry veteran Rene Ramirez to harness their compost into clean hydrogen power.

    Earlier this month, the new branch of the existing company signed a memorandum of understanding with the Purdue Innovates Office of Technology Commercialization. The agreement comes close to a year after Ramirez first began working with Purdue University Northwest professors, Robert Kramer and Libbie Pelter, and Purdue University’s professor, John Patterson. The result is the first operating commercial pilot that biologically turns food waste into hydrogen.

    This revelation comes just days after the Biden-Harris administration announced that it had set aside $7 billion to H2Hubs, a collection of seven regional hydrogen power stations, including one in the Houston area.

    “We love the timing. There’s just a lot of interest right now,” Wood tells EnergyCapital in a video call with Villa and Ramirez. “It's been fun to watch Rene's long relationship with Purdue come to fruition on behalf of that hydrogen at the same time that the DoD is moving forward with their announcement on the hydrogen hubs.”

    Wood and Villa founded Moonshot Compost three years ago.

    “The thought was, 'waste is so valuable, and there's so much of it in the trash.' So we wanted to focus on, ‘Let's get our hands on as much food waste as possible,’ and always be focused on doing the best thing with our food waste,” Wood says.

    Initially, that meant making compost, which saved the waste from a landfill and produced high-quality, nutrient-rich soil. Customers include both private homes and commercial accounts. Those include heavy hitters like Rice University, Conoco Phillips and Texas Children’s Hospital, as well as beloved restaurants ranging from Bludorn to Tacodeli. And that’s just in Houston. The company now collects from businesses in Austin, Dallas and Waco, too.

    That extended footprint will be important to Moonshot Hydrogen.

    “Our big dream is ideally that we have one of these hydrogen facilities in almost every city that we can think of. Your city has that ability to charge up or refuel the cars with hydrogen at-location and not have to worry about going 300 miles away,” says Ramirez.

    Filling up your car with zero-emission hydrogen made from compost? It could be a reality sooner than you think. According to Wood, Moonshot is already in the preliminary stages of discussions with a facility to pilot just such a program.

    “We’ve been thrilled with how receptive people are. There does seem to be a general acknowledgment that this would fit well with Houston’s desire to be the energy transition capital of the world,” he says.

    Their patent-protected technology assures that Moonshot is the only company with this novel solution to food waste. Most exciting is the fact that the institutions with which Moonshot already partners could be on the ground floor of being at least partially powered by their own discarded scraps.

    “Everyone loves the circularity aspect of it,” says Ramirez. And with a potential launch as soon as next March, it’s one step closer to a reality for the Energy Transition Capital.

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    Texas Gov. Abbott broadens crackdown on data centers by halting all permits

    data center crackdown

    Responding to public outcry, Gov. Greg Abbott has stepped up his campaign against data centers by temporarily halting approval of environmental permits for data center projects.

    This and previous moves by Abbott essentially amount to a temporary freeze on the development of new data centers in Texas. His actions come at a time when Texas’ stature as a data center hub has been soaring.

    On Monday, Abbott directed the Texas Commission on Environmental Quality to stop issuing permits for data center developments until the Electric Reliability Council of Texas (ERCOT) and Public Utility Commission of Texas complete their review of projects seeking power grid connections.

    With regulatory reviews underway and environmental permitting now frozen, state regulators currently cannot approve or deny requests from data center developers, Abbott said.

    In a letter to the environmental quality commission’s executive director, Kelly Keel, Abbott said this directive is “consistent with my whole-of-government approach to ensure Texans’ natural resources and way of life are protected.”

    Abbott previously ordered the Texas Water Development Board to require data centers to meet reporting requirements for water use. He also told the board to impose penalties for failure to comply with those requirements and to collaborate with ERCOT on its review.

    Abbott launched his crackdown on data centers in August by ordering the Public Utility Commission and ERCOT to review data center projects in Texas. The audits will examine all data centers in the queue for interconnections before any more projects can move forward. Interconnections enable data centers to share power, data and computing resources.

    In calling for those audits, Abbott cited concerns over data centers’ use of water and electricity, and the centers’ effect on infrastructure expenses and consumers’ utility rates.

    “Simply put, Texans must come first,” the governor said.

    During next year’s legislation session, Abbott will push for the elimination of state financial incentives for data center projects.

    Ed Hirs, an energy fellow ⁠at the University of Houston, told Reuters that Abbott was backtracking on “his earlier pronouncements about data centers leading to lower electricity prices.”

    Abbott’s actions come amid growing public backlash over data centers. A recent University of Houston survey found that nearly 63 percent of Houston-area residents opposed construction of a data center within a mile of their home.

    Only 8 of 160 utility companies in Texas have filed wildfire response plans

    Utility News

    Only eight of 160 utility companies that operate in fire-prone areas of Texas have complied with a law that helps mitigate wildfires, lawmakers recently learned. The revelation comes on the heels of a chaotic wildfire season that has continued through the summer.

    Lawmakers learned about the slow progress last week during a House State Affairs committee hearing, led by Rep. Ken King, who led the charge on the new law last year. The law under House Bill 145 requires utility companies to file wildfire mitigation plans to the Public Utility Commission.

    The plans must include emergency protocols in the case of a wildfire, utility operating plans during high-risk weather conditions, management of grass, shrubs and other vegetation in areas that are at risk of wildfires, inspection of poles and other electric equipment and identified areas of wildfire risks within a utility’s service territory.

    King, a Republican from Canadian where much of the wildfire damage occurred during the Panhandle wildfires, pressed utility companies on the lack of compliance.

    “I’m very, very disappointed with the industry,” King said. “I think it’s imperative for anybody that has not filed that report to realize January is coming. You will file that wildfire mitigation plan, and if you’re dragging your feet, there’s no excuse good enough for me.”

    Last year, King filed a slew of bills in response to the devastating Smokehouse Creek wildfires in the Texas Panhandle and parts of Oklahoma in 2024. It was the largest wildfire in Texas history, started when a decayed power pole owned by Xcel Energy snapped and landed in dry grass.

    It was one of a spate of fires, the majority of which were linked to electrical ignitions.

    This year alone has been a very active wildfire season. Nim Kidd, chief for the Texas Division of Emergency Management, said the state has helped local governments respond to more than 1,200 fires since the start of the year. The Ross Fire, which burned for more than three weeks in North Texas, was finally contained by firefighters last week. It’s now the second largest wildfire in the region’s history.

    Two wildfires have broken out on Craig Cowden’s Panhandle ranch this year, both ignited by electrical equipment used by oil and gas companies. Cowden extinguished them, before they could spread beyond 5 acres — a fraction of the 20,000 acres he lost to wildfires in 2024.

    Cowden was one of many ranchers who worked with lawmakers last year to address the problem. Over the years, several fires have started on Cowden’s land, most of which were the result of faulty or damaged electrical equipment.

    “It’s kind of discouraging that there hasn’t been more proactively submitting their wildfire plan,” Cowden said.

    Slow progress

    There has been progress since the bill was filed. According to King, six fires have been linked to electrical issues this year, a significant decrease from 80 in 2024.

    Connie Corona, director at the PUC, explained the lag in filings to lawmakers, stating that on top of the eight who have submitted, four more have given the PUC a date for when they intend to file their plans. Corona said another 135 have indicated to the PUC they are in the process of preparing their plan. This leaves 13 who have not communicated their plans to the PUC.

    “We’ve asked for a heads-up notice of when the utility plans to file, and try to ensure that meets with the resources we have available,” Corona told lawmakers.

    Corona said PUC staff had created a model wildfire mitigation plan that utility companies can use as a template. The model is intended to support smaller utility companies that lack sufficient resources to make their own plan. King asked Corona for a list of entities who complied with the requirement.

    “When eight out of 160 have complied, and we’re sitting here in September, that doesn’t sound like a very good response to me,” King said.

    A looming deadline

    Brad Baldridge, interim president of Southwestern Public Service Company, which operates as Xcel Energy, told lawmakers what his company is doing to mitigate wildfires. The company was heavily criticized in the wake of the fires and has since deployed 97 wildfire detection cameras across its service territory. The cameras use AI to detect smoke and provide that information in real-time to utility personnel, local fire responders and emergency managers. It also uses Public Safety Power Shutoffs to turn off power in certain areas during critical wildfire conditions to prevent an electrical start. Baldridge said since 2024, the company has had to shut off power five times.

    When King asked if the company had submitted its wildfire mitigation plans, Baldridge said it was submitted last month. It would have been submitted earlier, he said, but there was “tremendous” vegetation that grew from rain earlier in the year.

    “All of our experts were focusing on wildfire mitigation,” Baldridge said. “Which delayed us a little bit in our filing.”

    Mark Bell, CEO for the Association of Electric Companies of Texas, said they are using remote cameras and sensors to detect wildfires and are taking a more aggressive approach to manage vegetation. They also use power shutoffs in extreme conditions to minimize the risk. Bell testified that their utility companies were on track to file their wildfire mitigation plans.

    “I think all the plans are going to be filed by the end of the year,” Bell said.

    King reminded Bell that it’s September, and many haven’t filed yet.

    “That’d be 148 (plans) approved before January,” King said.

    Bell assured King that five of them have filed their plans and one is scheduled to file in October.

    Corona, with the PUC, said there are also pole and maintenance plans due in January that will detail a complete inventory of those assets owned by utilities. King said the plan is to have the companies list everything they own in Texas, where it is and how old it is. However, he said they aren’t being compliant and lawmakers will see what happens in January.

    Cowden, the rancher in the Panhandle, told the Tribune that while it’s not technically fire season anymore, there are still small fires that ignite around the area.

    Cowden sees the amount of work being done by Xcel Energy to upgrade their electrical poles and infrastructure in the area. He said it’s different than before the wildfires in 2024. He thinks the fires got their attention.

    “You can tell they’re making a conscious effort to try to upgrade their infrastructure,” Cowden said.

    __

    This story was originally published by The Texas Tribune and distributed through a partnership with The Associated Press.

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

    fresh funding

    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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