20+ companies will pitch at Energy Tech Nexus' Pilotathon during Houston Energy & Climate Startup Week. Photo via Getty Images.

There is no sugar‑coating it: 2025 was a rough year for many climate tech founders. Headlines focused on policy rollbacks and IRA uncertainty, while total climate tech venture and growth investment only inched up to about 40.5 billion dollars, an 8% rise that felt more like stabilization than the 2021–2022 boom. Deal count actually fell 18% and investor participation dropped 19%, with especially steep pullbacks in carbon and transportation, as capital concentrated in fewer, larger, “safer” bets. Growth-stage funding jumped 78% while early-stage seed rounds dropped 20%.

On top of that, tariff battles and shifting trade rules added real supply‑chain friction. In the first half of 2025, solar and wind were still 91% of new U.S. capacity additions, but interconnection delays, equipment uncertainty, and changing incentive structures meant many projects stalled or were repriced mid‑stream. Founders who had raised on 2021‑style valuations and policy optimism suddenly found themselves stuck in limbo, extending runway or shutting down.

The bright spots were teams positioned at the intersection of climate and the AI power surge. Power demand from data centers is now a primary driver of new climate‑aligned offtake, pulling capital toward firm, 24/7 resources. Geothermal developers like Fervo Energy, Sage Geosystems and XGS did well. Google’s enhanced‑geothermal deal in Nevada scales from a 3.5 MW pilot to about 115 MW under a clean transition tariff, nearly 30× growth in geothermal capacity enabled by a single corporate buyer. Meta and others are exploring similar pathways to secure round‑the‑clock low‑carbon power for hyperscale loads.

Beyond geothermal, nuclear is clearly back on the strategic menu. In 2024, Google announced the first U.S. corporate nuclear offtake, committing to purchase 500 MW from Kairos Power’s SMR fleet by 2035, a signal that big tech is willing to underwrite new firm‑power technologies when the decarbonization and reliability story is compelling. Meta just locked in 6.6GW of nuclear capacity through deals with Vistra, Oklo, and TerraPower.

Growth investors and corporates are increasingly clustering around platforms that can monetize long‑duration PPAs into data‑center demand rather than purely policy‑driven arbitrage.

Looking into 2026, the same trends will continue:

Solar and wind

Even with policy headwinds, solar and wind continue to dominate new capacity. In the first half of 2025 they made up about 90% of new U.S. electricity capacity. Over the 2025–2028 period, FERC’s ‘high‑probability’ pipeline points to on the order of 90–93 GW of new utility‑scale solar and roughly 20–23 GW of new wind, far outpacing other resources.

Storage and flexibility

Solar plus batteries is now the default build—solar and storage together account for about 81% of expected 2025 U.S. capacity additions, with storage deployments scaling alongside renewables to keep grids flexible. Thermal storage and other grid‑edge flexibility solutions are also attracting growing attention as ways to smooth volatile load.

EVs and transport

EV uptake continues to anchor long‑term battery demand; while transportation funding cooled in 2025, EV sales and charging build‑out are still major components of clean‑energy demand‑side investment

Buildings

Heat pumps, smart HVAC, and efficient water heating are now the dominant vectors for building‑sector decarbonization. Heating and cooling startups alone have raised billions since 2020, with nearly 700 million dollars going into HVAC‑focused companies in 2024, and that momentum carried into 2025.

Hydrogen

The green hydrogen narrative has faded, but analysts still see hydrogen as essential for steel, chemicals, and other hard‑to‑abate sectors, with large‑scale projects and offtake frameworks under development rather than headline hype.

CCS/CCUS

After years of skepticism, more large CCS projects are finally reaching FID and coming online, helped by a mix of tax credits and industrial demand, which makes CCS look more investable than it did in the pre‑IRA era.

So, yes, 2025 was a downer from the easy‑money, policy‑euphoria years. But the signal beneath the noise is clear: capital is rotating toward technologies with proven unit economics, real offtake (especially from AI‑driven power loads), and credible paths to scale—not away from climate altogether.

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Nada Ahmed is the founding partner at Houston-based Energy Tech Nexus.

Houston Energy and Climate Startup Week is coming back for a second year. Photo via GHP

Houston Energy and Climate Startup Week announces 2025 dates, key events

comeback tour

Six local organizations focused on the energy transition have teamed up to bring back Houston Energy and Climate Startup Week.

The second annual event will take place Sept. 15-19, according to an announcement. The Ion District will host many of the week's events.

Houston Energy and Climate Startup Week was founded in 2024 by Rice Alliance for Technology and Entrepreneurship, Halliburton Labs, Greentown Labs, Houston Energy Transition Initiative (HETI), Digital Wildcatters and Activate.

“Houston Energy and Climate Startup Week was created to answer a fundamental question: Can we achieve more by working together than we can alone?” Jane Stricker, senior vice president at the Greater Houston Partnership and executive director of HETI, said in the release.

So far, events for the 2025 Houston Energy and Climate Startup Week include an introduction to climatetech accelerator Activate's latest cohort, the Rice Alliance Energy Tech Venture Forum, a showcase from Greentown Labs' ACCEL cohort, and Halliburton Labs Pitch Day.

Houston organizations New Climate Ventures and Digital Wildcatters, along with Global Corporate Venturing, are slated to offer programming again in 2025. And new partners, Avatar Innovations and Decarbonization Partners, are slated to introduce events. Find a full schedule here.

Other organizations can begin entering calendar submissions starting in May, according to the release.

Last year, Houston Energy and Climate Startup Week welcomed more than 2,000 attendees, investors and industry leaders to more than 30 events. It featured more than 100 speakers and showcased more than 125 startups.

"In 2024, we set out to build something with lasting impact—rooted in the ingenuity of Houston’s technologists and founders. Thanks to a collaborative effort across industry, academia, and startups, we’ve only just begun to showcase Houston’s strengths and invite others to be part of this movement," Stricker added in the release. "We can’t wait to see the city rise to the occasion again in 2025.”

Through Dsider’s techno-economic analysis platform, Sujatha Kumar is helping startups bridge the critical gap between vision and execution, ensuring they can navigate complex markets with confidence. Photo via LinkedIn

Podcast: How this Houston energy tech startup transforms innovation into scalable success

now streaming

What if the future of clean energy wasn’t just about invention, but execution? For Sujatha Kumar, CEO of Dsider, success in clean tech hinges on more than groundbreaking technology—it’s about empowering founders with the tools to make their innovations viable, scalable, and economically sound.

Through Dsider’s techno-economic analysis (TEA) platform, Kumar is helping startups bridge the critical gap between vision and execution, ensuring they can navigate complex markets with confidence.

In a recent episode of the Energy Tech Startups Podcast, Kumar shared her insights on the growing importance of TEA in the hard tech space. While clean energy innovation promises transformative solutions, the challenge lies in proving both technical feasibility and economic sustainability. Kumar argues that many early-stage founders, especially in fields like carbon capture, microgrids, and renewable energy, lack the necessary financial tools to assess market fit and long-term profitability—a gap Dsider aims to fill.

What Makes Dsider Unique?

Dsider offers more than just financial modeling—it creates actionable insights, tailored to the demands of the clean energy sector. At its core, the platform integrates TEA with operational planning, equipping founders with the ability to run scenario analyses, optimize pricing strategies, and anticipate market challenges. “It’s not just about building a product—it’s about understanding how to make that product thrive in a dynamic, ever-evolving market,” Kumar explained.

In industries where data is limited and stakes are high, startups often struggle to translate early pilots into scalable solutions. Kumar emphasized how Dsider’s approach helps founders forecast regulatory shifts, project downtime risks, and identify key economic drivers—turning complex calculations into a clear strategic roadmap. This foresight enables startups to align with customer expectations and investor requirements from the outset, a step that is often overlooked in early development stages.

Why TEA is Critical for Founders

“Clean tech innovation is hard,” Kumar emphasized, “because there is no historical data to guide decisions.” Startups often operate in unfamiliar territory, where understanding market fit and pricing models is essential. Through TEA, founders can build a financial narrative, simulate real-world conditions, and show investors or customers how their solutions will perform.

Jason, an experienced founder, echoed this sentiment, reflecting on his own mistakes:

"I wish I’d done a TEA earlier—during my first pilot, we didn’t budget for enough support, and it cost us a key customer."

The takeaway? Even at the pilot stage, TEA is invaluable. As Kumar noted, failing early pilots can prevent startups from scaling—making upfront analysis essential for success.

Beyond Technology: Bridging Gaps Between Founders, Investors, and Customers

Kumar highlighted the need to align founders, investors, and customers through a shared understanding of value. TEA enables this by allowing founders to communicate in the same language as their stakeholders—from efficiency gains to regulatory compliance. Dsider's platform provides tools for scenario modeling, allowing startups to optimize for both technology performance and economic outcomes.

One challenge, she noted, is that many founders are scientists without financial backgrounds. “Our goal is to simplify that complexity, so founders can focus on their technology while we take care of the analysis,” Kumar explained. Dsider helps startups anticipate questions from investors, simulate risks, and optimize business models from the start.

A New Way to Sell: Using TEA as a Business Development Tool

Kumar described how TEA can be more than a financial tool—it can become a business development asset. Founders can use Dsider to create customized reports for potential customers, demonstrating the specific value their technology brings. With interactive models and scenario analysis, startups can quickly respond to customer needs and build trust through transparency.

Future Growth

Looking ahead, Dsider aims to scale its operations and expand its impact by continuing to support early-stage founders with affordable, high-impact tools. With growing regulatory support for clean tech and an increasing demand for sustainable solutions, Dsider is positioned to become a key player in the energy tech startup ecosystem.

By bridging the gap between innovation and economics, Dsider is helping founders navigate complex challenges and build businesses that are both profitable and impactful—setting a strong foundation for future growth in the climate tech space.

Listen to the full episode with Sujatha Kumar on the Energy Tech Startups Podcast here.

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Energy Tech Startups Podcast is hosted by Jason Ethier and Nada Ahmed. It delves into Houston's pivotal role in the energy transition, spotlighting entrepreneurs and industry leaders shaping a low-carbon future.
If we can channel the same sense of urgency and public commitment toward climate change as we did for health crises in the past, climate tech could overcome its current obstacles. Photo via Getty Images

Unlocking climate tech’s potential in Houston: What health innovation's rise can teach us

guest column

Over the past several decades, climate tech has faced numerous challenges, ranging from inconsistent public support to a lack of funding from cautious investors. While grassroots organizations and climate innovators have made notable efforts to address urgent environmental issues, we have yet to see large-scale, lasting impact.

A common tendency is to compare climate tech to the rapid advancements made in digital and software technology, but perhaps a more appropriate parallel is the health tech sector, which encountered many of the same struggles in its early days.

Observing the rise of health tech and the economic and political support it received, we can uncover strategies that could stabilize and propel climate tech forward.

Health tech's slow but steady rise

Health tech’s slow upward trajectory began in the mid-20th century, with World War II serving as a critical turning point for medical research and development. Scientists working on wartime projects recognized the broader benefits of increased research funding for the general public, and soon after, the Public Health Service Act of 1944 was passed. This landmark legislation directed resources toward eradicating widespread diseases, viewing them as a national economic threat. By acknowledging diseases as a danger to both public health and the economy, the government laid the groundwork for significant policy changes.

This serves as an essential lesson for climate tech: if the federal government were to officially recognize climate change as a direct threat to the nation’s economy and security, it could lead to similar shifts in policy and resource allocation.

The role of public advocacy and federal support

The growth of health tech wasn’t solely reliant on government intervention. Public advocacy played a key role in securing ongoing support. Voluntary health agencies, such as the American Cancer Society, lobbied for increased funding and spread awareness, helping to attract public interest and investment. But even with this advocacy, early health tech startups struggled to secure venture capital. VCs were hesitant to invest in areas they didn’t fully understand, and without sustained government funding and public backing, it’s unlikely that health tech would have grown as quickly as it has.

The lesson here for climate tech is clear: strong public advocacy and education are crucial. However, unlike health tech, climate tech faces a unique obstacle — there is still a significant portion of the population that either denies the existence of climate change or doesn’t view it as an immediate concern. This lack of urgency makes it difficult to galvanize the public and attract the necessary long-term investment.

Government support: A mixed bag

There have been legislative efforts to support climate tech, though they haven’t yet led to the explosive growth seen in health tech. For example, the Federal Technology Transfer Act of 1986 and the Bayh-Dole Act of 1980 gave universities and small businesses the rights to profit from their innovations, including climate-related research. More recently, the Inflation Reduction Act (IRA) of 2022 has been instrumental in advancing climate tech by creating opportunities to build projects, lower household energy costs, and reduce greenhouse gas emissions.

Despite this federal support, many climate tech companies are still struggling to scale. A primary concern for investors is the longer time horizon required for climate startups to yield returns. Scalability is crucial — companies must demonstrate how they will grow profitably over time, but many climate tech startups lack practical long-term business models.

As climate investor Yao Huang put it, “At the end of the day, a climate tech company needs to demonstrate how it will make money. We can apply political pressure and implement governmental policies, but if it is not profitable, it won’t scale or create meaningful impact.”

The public’s role in scaling climate tech

Health tech’s success can largely be attributed to a combination of federal funding, public advocacy, and long-term investment from knowledgeable VCs. Climate tech has federal support in place, thanks to the IRA, but is still lacking the same level of public backing. Health tech overcame its hurdles when public awareness about the importance of medical advancements grew, and voluntary health agencies helped channel donations toward research and innovation.

In contrast, climate nonprofits like Cool Earth, Environmental Defense Fund, and Clean Air Task Force face a severe funding shortfall. A 2020 study revealed that climate nonprofits aiming to reduce greenhouse gas emissions only received $2 billion in donations, representing just 0.4% of all philanthropic funding. Without greater public awareness/sense of urgency and financial support, these groups cannot effectively advocate for climate tech startups or lobby for necessary policy changes. This type of philanthropic funding is also known as ‘catalytic capital’ or ‘impact-first-capital’. Prime Impact Fund is one such fund that does not ‘view investments as concessionary on return’. Rather their patient and flexible capital allows support of high risk, high-reward ventures.

A path forward for climate tech

The most valuable insight from health tech’s growth is that government intervention, while critical, is not enough to guarantee the success of an emerging sector. Climate tech needs a stronger support system, including informed investors, widespread public backing, and nonprofits with the financial resources to advocate for industry-wide growth.

If we can channel the same sense of urgency and public commitment toward climate change as we did for health crises in the past, climate tech could overcome its current obstacles.The future of climate tech depends not just on government policies, but on educating the public, rallying financial support, and building a robust infrastructure for long-term growth.

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Nada Ahmed is the founding partner at Houston-based Energy Tech Nexus, a startup hub for the energy transition.

A Houston energy professional shares his advice for those looking for a job in climate tech. Photo via Getty Images

Houston expert shares 5 tips for people looking to expand their career into climate tech

GUEST COLUMN

If hard times build strong people, then extreme weather events build strong climate tech ecosystems. Nobody knows this conventional wisdom better than Houston.

The past six years alone have seen the second costliest natural disaster in United States history (Hurricane Harvey), the longest power outage in Texas history (Winter Storm Uri), and this June, a heat wave that pushed the ERCOT power grid to record levels.

Combine our ever more volatile climate with a post-COVID-19 reckoning of what it means to work for what you believe in, and you get a recipe for the most significant workforce shift the world has ever seen. This workforce shift rules in favor of climate tech, and it will largely target those who’ve grown up, come of age and started their careers in the midst of this increasing volatility. Climate tech will no longer be considered a standalone industry; it will be baked into all existing industries, and those that don’t accept it will die.

I’m proud to be a climate optimist, but I’m also a realist. The truth is no matter what we do, our volatile climate is going to get worse before it gets better. But if extreme weather events build strong climate tech ecosystems, I can live with that.

To students and young professionals considering a jump into climate tech: There is no better place to be right now. Here are five things to keep in mind as you make that jump.

1. Meet as many people from diverse backgrounds working on as many different things as you can. You will likely feel awkward at first, especially if you don’t naturally gravitate toward conferences and happy hours. At the risk of sounding trite, just treat every stranger like a friend you haven’t met yet. Some of us could probably use more friends anyway.

2. The advice in the self-help book How to Win Friends and Influence People, originally published in 1936, is timeless. Possibly the most useful (and most obvious) point is this: Remember that a person’s name is to that person the sweetest and most important sound in any language. Whenever possible, repeat your new friends’ names when you meet them. Especially if you’re seeking a business development, sales or other external-facing role, perfecting this point should be your Holy Grail.

3. Depending on how new you are to energy and climate tech, you’ll hear lots of unfamiliar lingo. Ask questions, take note of what you still don’t get, and do your best to fill in the gaps on the side. Eventually, acronyms will become your best friend. For example: Have you seen what the ITC and the PTC from the IRA will do to the LCOE of PV according to NREL? IYKYK.

4. Coachability is key. You may feel like you’re getting rejected 99 percent of the time, but the way you respond to and learn from those experiences will ensure the other one percent makes all the difference. At the end of the day, climate tech is so vast that it’s impossible to become an expert in everything, and that’s okay. We may not know what’s going on 70 percent of the time, but I’ll take a .300 batting average any day.

5. It may be impossible to become an expert in everything, but you should proactively learn as much as you can, especially given how quickly the ecosystem is expanding. If you’re not embarrassed by how little you knewone year ago, two years ago or even five years ago, then you’re probably not trying hard enough.

These are only five of my takeaways over the past few years and I’ll be the first to admit that I have a long way to go in implementing them. In a way, that’s what makes this journey what it is. I just can’t wait to see what we build.

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Ryan Davidson is business development lead for CalWave Power Technologies, a California-based company and Greentown Houston member that's focused on converting ocean waves’ hydrokinetic energy into reliable electricity.

Kanin Energy set up shop in Greentown Labs last year to grow its impact on the energy transition. Photo via Getty Images

This energy transition startup taps Houston to grow, build its waste-heat-to-power tech

eyes on hou

Waste heat is everywhere, but in Houston, the Energy Capital of the World, it is becoming a hot commodity. What is it? Janice Tran, CEO of Kanin Energy, uses the example of turning ore into steel.

“There’s a lot of heat involved in that chemical process,” she says. “It’s a waste of energy.”

But Kanin Energy can do something about that. Its waste-heat-to-power, or WHP, concept uses a technology called organic rankine cycle. Tran explains that heat drives a turbine that generates electricity.

“It’s a very similar concept to a steam engine,” she says. Tran adds that the best term for what Kanin Energy does is “waste heat recovery.”

Emission-free power should be its own virtuous goal, but for companies creating waste heat, it can be an expensive endeavor both in terms of capital and human resources to work on energy transition solutions. But Kanin Energy helps companies to decarbonize with no cost to them.

“We can pay for the projects, then we pay the customers for that heat. We turn a waste product into a revenue stream for our customer,” Tran explains. Kanin Energy then sells the clean power back to the facility or to the grid, hence decarbonizing the facility gratis. Financing, construction, and operations are all part of the package.

Kanin Energy began at the height of the COVID-19 pandemic, in the spring of 2020.

“We started like a lotus. A lotus grows in mud — you start in the worst conditions and everything is better and easier from there,” says Tran.

That tough birth has helped provide the team with a discipline and thoughtfulness that’s been key to the company’s culture. Remote work has forced the team to get procedures clearly in place and react efficiently.

Back in May of 2020, its inception took place in Calgary. But the team, which also includes CDO Dan Fipke and CTO Jake Bainbridge, began to notice that many of their customers were either based in Houston or had Houston ties.

A year ago, the Kanin team visited Houston to see if the city could be a fit for an office. In July of 2022, Tran opened Kanin Energy offices in Greentown Labs.

“We’re hiring and building our team office out of Greentown. It’s been really great for us,” she says.

With the company now in its commercialization stage, Tran says that becoming part of the Houston energy ecosystem has been invaluable for Kanin.

The investments being made in climate tech and in energy transition make Space City the right place for the company. For Canadian-born Kanin Energy, Houston is now home. Investors across the nation, including Texas, are now helping Kanin to blossom, much like the lotus.

Janice Tran is the CEO and co-founder of Kanin Energy. Photo via LinkedIn

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This article originally ran on InnovationMap.

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6+ must-attend Houston energy transition events for May 2026

Mark Your Calendars

Editor's note: May is starting off strong with two of the month's largest events beginning on Monday, May 4: Enverus Evolve Conference and OTC. Mark your calendars and begin registering now.

May 4-6, 2026 — Enverus Evolve Conference

Staying ahead of the curve in the energy sector is critical. This conference is designed to equip energy leaders with foresight in the energy market, providing cutting-edge technological know-how, sessions and networking opportunities industry leaders, and offering practical guidance on how to apply technology to solve big problems.

This event begins May 4 at Marriott Marquis, Downtown Houston. Register here.

May 4-7, 2026 — OTC 2026

The world’s largest offshore energy technology event returns to Houston beginning May 4. Dr. Mohamed Irfaan Ali, president of the Co-operative Republic of Guyana, will officially open the 2026 Offshore Technology Conference, delivering the Opening Address on May 4. This year's event will be cover the theme of "Steering Offshore Energy Innovation into the Future," emphasizes the pivotal role oil and gas, along with other emerging offshore energy sources, will play in shaping a sustainable and energy-secure future.

This event begins May 4 NRG Park. Register here.

May 14, 2026 — Gulf Coast ASSP Energy Corridor Section Meeting

At this lunchtime session, Chris Garza will speak on “Demystifying Regulatory Frameworks.” This session provides a comprehensive overview of key regulatory requirements concerning air quality, water discharge, and land management. Attendees will gain actionable insights into permits, reporting obligations, pollution prevention planning, and hazardous waste management. This session demystifies regulatory frameworks and empowers businesses to meet their legal responsibilities while promoting a culture of environmental stewardship. Attendees are welcome to stay for lunch and networking after the session.

This event takes place May 14 at 960 Memorial City Way. Register here.

May 16, 2026 — Energy Valuation Conference

ASA Houston's 16th annual EVC brings together energy valuation professionals and industry thought leaders to present timely educational valuation topics, with a focus on valuation impacts in the transition of power generation from fossil fuel to non-carbon, renewables, sustainable energy

This event takes place May 16 at The Briar Club, and there will be a live webcast. Register here.

May 18-19, 2026 — Geothermal Transition Summit North America

This two-day summit serves as the meeting point for the geothermal and oil and gas industries and will focus on geothermal energy, including scaling plants and navigating state regulations. The event promises 40 expert speakers, 15 exhibition spaces, and networking opportunities with 250 industry decision makers.

This event begins May 18 at Norris Conference Center. Register here.

May 20-21, 2026 — ESF North America

ESF North America returns for its 5th edition, under the theme of “innovation and adaptation.” Attendees will explore how technology, innovation, and collaboration can drive a resilient, competitive refining and chemicals industry.

This event begins May 20 at The Westin Oaks Houston at the Galleria. Register here.

Houston scientists unveil faster, low-energy method to recycle lithium-ion batteries

Battery breakthrough

Rice University researchers have uncovered a more energy-efficient and faster way to recycle critical minerals from used lithium-ion batteries.

Traditional methods rely on high heat, long processing times and harsh chemicals to recover a small fraction of critical materials from batteries used in everything from smartphones to electric vehicles. However, the team from Rice's Department of Materials Science and Nanoengineering developed a process that uses a water-based solution containing amino chlorides to extract more metals in less time

The team published the findings in a recent edition of the scientific journal Small.

Simon King, a sophomore studying chemical and biomolecular engineering who completed this work as a summer research fellow at the Rice Advanced Materials Institute, served as first author of the study. He worked with corresponding authors Pulickel Ajayan, the Benjamin M. and Mary Greenwood Anderson Professor of Engineering, and Sohini Bhattacharyya, a research scientist in Ajayan’s lab.

By using a hydroxylammonium chloride (HACI) solution, the team achieved roughly 65 percent extraction of key battery metals in just one minute at room temperature, according to the study. The efficiencies grew to roughly 75 percent for several metals under longer processing times.

“We were surprised by just how fast the reaction occurs, especially without the involvement of high temperatures,” King said in a news release. “Within the first minute, we’re already seeing the majority of the metal extraction take place.”

By not requiring high temperatures or long reaction times, Rice predicts the process could have a major impact on cost and the environmental impact of lithium battery recycling. Additionally, the water-based HACI solution makes waste handling easier and lowers certain environmental risks.

In addition to extracting the materials, the team went on to demonstrate that the recovered metals could be recycled and reprocessed into new battery materials.

“A big advantage of this system is that it works under relatively mild conditions,” Ajayan added in the release. “That opens the door to more sustainable and scalable recycling technologies.”