Utility Global’s technology enables reduction of greenhouse gas emissions along with generation of low-carbon fuels and chemicals. Photo courtesy of Utility Global

Houston-based Utility Global, a maker of decarbonization-focused gas production technology, has raised $53 million in an ongoing series C round.

Among the participants in the round are Canada’s Ontario Power Generation Pension Plan, the XCarb Innovation Fund operated by Luxembourg-based steel company ArcelorMittal, Houston-based investment firm Ara Partners, and Saudi Aramco’s investment arm.

Also, Utility Global and ArcelorMittal have agreed to develop at least one decarbonization facility at an ArcelorMittal steel plant.

The latest infusion of cash will support the rollout of Utility Global’s eXERO technology, including establishment of the company’s first commercial facilities in 2026.

“With the successful completion of its demonstration program at a commercial steel facility resulting in the first hydrogen ever produced from blast furnace off-gasses in a single reactor, the company has shifted to commercial deployments,” Utility Global says in a news release.

Utility Global’s technology enables reduction of greenhouse gas emissions along with generation of low-carbon fuels and chemicals.

“Our eXERO solution is the first of its kind to convert process gasses into clean hydrogen in a single reactor, onsite, in a cost-effective manner that extends the life of existing customer assets and processes while providing significant emissions reductions,” says Claus Nussgruber, CEO of Utility Global.

The six finalists for the sustainability category for the 2023 Houston Innovation Awards weigh in on their challenges overcome. Photos courtesy

4 biggest challenges of Houston-based sustainability startups

Houston innovation awards

Six Houston-area sustainability startups have been named finalists in the 2023 Houston Innovation Awards, but they didn't achieve this recognition — as well as see success for their businesses — without any obstacles.

The finalists were asked what their biggest challenges have been. From funding to market adoption, the sustainability companies have had to overcome major obstacles to continue to develop their businesses.

The awards program — hosted by EnergyCapital's sister site, InnovationMap, and Houston Exponential — will name its winners on November 8 at the Houston Innovation Awards. The program was established to honor the best and brightest companies and individuals from the city's innovation community. Eighteen energy startups were named as finalists across all categories, but the following responses come from the finalists in the sustainability category specifically.

    Click here to secure your tickets to see who wins.

    1. Securing a commercial pilot

    "As an early-stage clean energy developer, we struggled to convince key suppliers to work on our commercial pilot project. Suppliers were skeptical of our unproven technology and, given limited inventory from COVID, preferred to prioritize larger clients. We overcame this challenge by bringing on our top suppliers as strategic investors. With a long-term equity stake in Fervo, leading oilfield services companies were willing to provide Fervo with needed drilling rigs, frack crews, pumps, and other equipment." — Tim Latimer, founder and CEO of Fervo Energy

    2. Finding funding

    "Securing funding in Houston as a solo cleantech startup founder and an immigrant with no network. Overcome that by adopting a milestone-based fundraising approach and establishing credibility through accelerator/incubator programs." — Anas Al Kassas, CEO and founder of INOVUES

    "The biggest challenge has been finding funding. Most investors are looking towards software development companies as the capital costs are low in case of a risk. Geothermal costs are high, but it is physical technology that needs to be implemented to safety transition the energy grid to reliable, green power." — Cindy Taff, CEO of Sage Geosystems

    3. Market adoption

    "Market adoption by convincing partners and government about WHP as a solution, which is resource-intensive. Making strides by finding the correct contacts to educate." — Janice Tran, CEO and co-founder of Kanin Energy

    "We are creating a brand new financial instrument at the intersection of carbon markets and power markets, both of which are complicated and esoteric. Our biggest challenge has been the cold-start problem associated with launching a new product that has effectively no adoption. We tackled this problem by leading the Energy Storage Solutions Consortium (a group of corporates and battery developers looking for sustainability solutions in the power space), which has opened up access to customers on both sides of our marketplace. We have also leveraged our deep networks within corporate power procurement and energy storage development to talk to key decision-makers at innovative companies with aggressive climate goals to become early adopters of our products and services." — Emma Konet, CTO and co-founder of Tierra Climate

    4. Long scale timelines

    "Scaling and commercializing industrial technologies takes time. We realized this early on and designed the eXERO technology to be scalable from the onset. We developed the technology at the nexus of traditional electrolysis and conventional gas processing, taking the best of both worlds while avoiding their main pitfalls." — Claus Nussgruber, CEO of Utility Global

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    Italian clean energy co. selects The Woodlands for North American HQ

    new HQ

    An Italian renewable energy company has picked The Woodlands for its North American headquarters.

    AB Energy USA will occupy about 11,000 square feet in The Woodlands Towers at The Waterway. The company expects to add about 45 jobs in The Woodlands this year. Beginning in 2027, AB Energy USA will add another 30 jobs over a five-year period.

    The new headquarters will be the corporate and governance hub for all of AB Energy’s North American subsidiaries. AB Energy, an arm of Italy-based AB, supplies renewable natural gas systems for industrial, commercial and data center customers. AB has operated in the U.S. since 2014.

    “Establishing our North American headquarters in the Energy Capital of the World is a strategic step in AB’s long-term commitment to the U.S. market,” Paolo Ruggeri, North American CEO for AB Energy USA, said in a news release. “Houston gives us access to world-class engineering and energy talent, and strengthens our ability to attract and grow a high-performing team.”

    Jevon Gibb, CEO of The Woodlands Area Economic Development Partnership, said several markets competed for AB Energy’s North American headquarters.

    “AB’s decision to establish its North American headquarters here demonstrates The Woodlands’ competitiveness for both international companies and energy sector leaders,” Gibb said.

    40+ teams to pitch at annual CERAWeek clean energy competition

    energy venture day

    The Rice Alliance for Technology and Entrepreneurship, the Houston Energy Transition Initiative (HETI), the Texas Entrepreneurship Exchange for Energy (TEX-E) and the Ion have named the 30-plus energy ventures and teams that will pitch at the 2026 Energy Venture Day and Pitch Competition during CERAWeek this month.

    The selected ventures are "driving efficiency and advancements toward the energy transition," according to the Rice Alliance. Each will each present a 3.5-minute pitch before a network of investors and industry partners during CERAWeek's Agora program on Wednesday, March 25, from noon-5:30 p.m.

    The competition is divided up into the TEX-E university track, in which Texas student-led energy startups compete for $50,000 in cash prizes, and the industry ventures track.

    Teams competing in the TEX-E Prize track include:

    • GOES
    • Quantum Power System
    • Quas
    • Resonant Thermal Systems
    • Srijan

    The industry track is subdivided into three additional tracks, spanning materials to clean energy and will feature 37 companies. A group of expert judges will name the top three companies from each industry track. The winner of the CERAWeek competition will also have the chance to advance and compete for the $1 million investment prize at the Startup World Cup in November 2026.

    Teams come from around the world, including several Houston-based ventures, such as Agellus Tank Robotics, Capwell Services and Corrolytics.

    The full list of companies pitching at CERAWeek includes:

    • Agellus Tank Robotics
    • Airovation Technologies
    • Anax Power
    • Armeta
    • ATS Energy
    • Capwell Services
    • CarbonLume
    • Cogniprise
    • Corrolytics
    • Daphne Technology
    • Gemini Energy
    • Grid8
    • H Quest Vanguard
    • intcom
    • Ionada Canada
    • Junipix
    • Kunin Technologies
    • LAVA Power
    • Licube
    • LNK Energies
    • Maverick X
    • Membravo
    • Mirico
    • Mocean Energy
    • Monitorai
    • OCOchem
    • Oleo
    • Pix Force
    • PolyJoule
    • Power to Hydrogen
    • Sotaog
    • Spotlight
    • Tierra Climate
    • Verdagy
    • Via Separations
    • Vycarb
    • ZettaJoule

    Those not attending CERAWeek can catch these companies and more than a dozen others at a pitch preview at the Ion. The free Pitch Preview will be held Tuesday, March 24, from 9 a.m.-2:30 p.m. Click here to register.

    Additional companies pitching during the free preview include:

    • Ammobia
    • Arolytics
    • Ayrton Energy
    • ChainWeave
    • Cybereum
    • Energytech
    • ENP Technologies
    • KP Labs
    • Mcatalysis
    • Mitico
    • Mote
    • Nanos
    • New Horizon Oil and Gas
    • Predyct
    • Salem Robotics
    • Toluai

    Two Rice University student teams took home top prizes during last year's TEX-E competition, while ventures from New Jersey, Wyoming and Virgina won in their respective industry tracks. See the full list of last year's winners here.

    ExxonMobil to move legal home to Texas, citing business-friendliness

    ExxonMobil is poised to move its legal headquarters from New Jersey to Texas in search of a more friendly business environment, the company announced March 10.

    The board of directors for the largest U.S.-based oil producing company, which already runs its operations from the Houston suburb of Spring, unanimously recommended to its shareholders that they vote to redomicile the company in Texas.

    Shareholders will vote on the change at the company’s annual meeting on May 27. If successful, it will move Exxon’s legal home for the first time since it registered in New Jersey in 1882 as Standard Oil Company — the company later changed its name to Exxon, then merged with Mobil Oil Corp.

    “Over the past several years, Texas has made a noticeable effort to embrace the business community,” ExxonMobil Chair and CEO Darren Woods wrote in a statement Tuesday. “In doing so, it has created a policy and regulatory environment that can allow the company to maximize shareholder value. Aligning our legal home with our operating home, in a state that understands our business and has a stake in the company’s success, is important.”

    The proposed move will not affect the company’s business operations or employee locations, the company said.

    ExxonMobil has been headquartered in Texas since 1989, and about 30% of its employees currently work in the state.

    The location of a company’s incorporation dictates the legal, tax and regulatory landscape for the business.

    Exxon would join Tesla, Space X and Coinbase as major U.S. companies to redomicile in Texas in recent years as the state moves to become more business friendly.

    In 2023, the Legislature passed and Gov. Greg Abbott signed a law that created the Texas Business Court and the 15th Court of Appeals, specialized legal venues designed to handle business and commercial disputes. Those courts began operating in 2024.

    Last year, the Legislature also approved a law that made it more difficult to sue board members of companies incorporated in Texas.

    “Freed from the stranglehold of over-regulation, Texas is where global brand leaders thrive and jobs for hardworking Texans grow,” Abbott wrote in a Tuesday statement. “I thank ExxonMobil for their decision to redomicile in Texas and for their long-standing partnership with our state. With this decision, Texas will further dominate the corporate landscape and ensure our economic growth reaches new heights.”

    Exxon noted the creation of the business courts and other recent legal reforms made by Texas in its statement announcing the decision.

    “In making its recommendation, the Board considered Texas’ legal and regulatory environment, including its modernized business statutes and the Texas Business Court, which is designed to resolve complex disputes efficiently,” the statement said.

    Texas has benefited from growing frustration among company executives with traditional corporate havens of New Jersey and Delaware. New Jersey sued Exxon in 2022, alleging the company contributed to climate change, which forced the state to pay for cleanup after natural disasters. The lawsuit was dismissed last year.

    Delaware remains the nation’s top state for U.S. companies’ legal home.

    Coinbase’s CEO wrote last year that the company was reincorporating from Delaware to Texas because the Lone Star State’s legal framework is more predictable and efficient. Tesla reincorporated from Delaware to Texas after a 2024 court ruling ordered CEO Elon Musk to give up a compensation package, finding that the package’s shareholder approval process was “deeply flawed.”

    ___

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