Houston's top energy transition founders explain their biggest challenges

overheard

Clockwise from top left: Sean Kelly of Amperon, Dianna Liu of ARIXTechnologies, Matthew Dawson of Elementium Materials, Vibhu Sharma of InnoVent Renewables, Cindy Taff of Sage Geosystems, and Emma Konet of TierraClimate. Photos courtesy

From finding funding to navigating the pace of traditional oil and gas company tech adoption, energy transition companies face their fair share of challenges.

This year's Houston Innovation Awards finalists in the Energy Transition category explained what their biggest challenge has been and how they've overcome it. See what they said below, and make sure to secure your tickets to the Nov. 14 event to see which of these finalists win the award.

"The evolving nature of the energy industry presents opportunities to solve some of our industry's greatest challenges. At Amperon we help optimize grid reliability and stability with the power of AI demand forecasting."

— Sean Kelly, CEO of Amperon, an AI platform powering the smart grid of the future

"The biggest challenge in leading an energy transition-focused startup has been balancing the urgency for sustainable solutions with the slow pace of change in traditional industries like oil and gas. Many companies are cautious about adopting new technologies, especially when it comes to integrating sustainability initiatives. We overcame this by positioning our solutions not just as environmentally friendly, but as tools that improve safety, efficiency, and cost savings. By aligning our value proposition with their operational goals and demonstrating real, measurable benefits, we were able to gain traction and drive adoption in industries that are traditionally resistant to change."

— Dianna Liu, CEO of ARIXTechnologies, an integrated robotics and data analytics company that delivers inspection services through its robotics platforms

"Scaling up production of hard tech is a major challenge. Thankfully, we recruited top-notch talent with experience in technology scale-up and chemical processes. In addition, we've begun building partnerships with some of the world's largest chemical manufacturers in our space who are excited to be a part of our journey and could rapidly accelerate our go to market strategy. We have significant demand for our product as early as 2025, so partnering with these companies to scale-up will bring our technology to market years ahead of doing it alone."

— Matthew Dawson, CEO of Elementium Materials, a battery technology with liquid electrolyte solutions

"Our pyrolysis reactor is a proprietary design that was developed during Covid. We ran simulations to prove that it works, but it was not easy to test it in a pilot facility, let alone scaling it up. We managed ... to run our pilot plant studies, while working with them remotely. We proved that our reactor worked and produced high quality products. Later, we built our own pilot plant R&D facility to continue running tests and optimizing the process. Then, there was the challenge of scaling it up to commercial size. ... We put together a task force of four different companies to come together to design and build this complex reactor in record time."

— Vibhu Sharma, CEO of InnoVentRenewables, a startup with proprietary continuous pyrolysis technology that converts waste tires, plastics, and biomass into valuable fuels and chemicals

"Energy storage and geothermal power generation are capital-intensive infrastructure projects, requiring investors with a deep commitment and the patience in terms of years to allow the technology to be developed and proven in the field. One challenge is finding that niche of investors with the vision to join our journey. We have succeeded in raising our $30 million series A with these types of investors, whom we’re confident will continue the journey as we scale."

— Cindy Taff, CEO of SageGeosystems, an energy company focused on developing and deploying advanced geothermal technologies to provide reliable power and sustainable energy storage solutions regardless of geography

"The biggest challenge we've faced has been to bring together massive independent power producers on one side who are investing hundreds of millions of dollars into grid infrastructure with multi- national tech giants on the other that don't have experience working much with energy storage. As a startup with only four employees, gaining credibility with these players was critical. We overcame this hurdle by becoming the preeminent thought leader on storage emissions, through publishing white papers, discussing the issues on podcasts, and (more)."

— Emma Konet, CTO of TierraClimate, a software provider that helps grid-scale batteries reduce carbon emissions

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Nearly 20 Houston startups and innovators were named finalists for the 2024 Houston Innovation Awards this week. Photo via Getty Images

Houston energy transition innovators named finalists for annual awards program

best of the rest

The Houston Innovation Awards have named its honorees for its 2024 awards event, and several clean energy innovators have made the cut.

The finalists, which were named on EnergyCapital's sister site InnovationMap this week, were decided by this year's judges after they reviewed over 130 applications. More 50 finalists will be recognized in particular for their achievements across 13 categories, which includes the 2024 Trailblazer Legacy Awards that were announced earlier this month.

All of the honorees will be recognized at the event on November 14 and the winners will be named. Registration is open online.

Representing the energy industry, the startup finalists include:

Amperon, an AI platform powering the smart grid of the future, was named a finalist in the Energy Transition Business category.
ARIXTechnologies, an integrated robotics and data analytics company that delivers inspection services through its robotics platforms, was named a finalist in the Energy Transition Business and the AI/Data Science Business categories.
CLS Wind, a self-erection wind turbine tower system provider for the wind energy industry, was named a finalist in the Minority-Founded Business category.
Corrolytics, a technology startup founded to solve microbiologically influenced corrosion problems for industrial assets, was named a finalist in the Minority-Founded Business and People's Choice: Startup of the Year categories.
Elementium Materials, a battery technology with liquid electrolyte solutions, was named a finalist in the Energy Transition Business category.
Enovate Ai, a provider of business and operational process optimization for decarbonization and energy independence, was named a finalist in the AI/Data Science Business category.
FluxWorks, developer and manufacturer of magnetic gears and magnetic gear-integrated motors, was named a finalist in the Deep Tech Business category.
Gold H2, a startup that's transforming depleted oil fields into hydrogen-producing assets utilizing existing infrastructure, was named a finalist in the Minority-Founded Business and the Deep Tech Business categories.
Hertha Metals, developer of a technology that cost-effectively produces steel with fewer carbon emissions, was named a finalist in the Deep Tech Business category.
InnoVentRenewables, a startup with proprietary continuous pyrolysis technology that converts waste tires, plastics, and biomass into valuable fuels and chemicals, was named a finalist in the Energy Transition Business and the People's Choice: Startup of the Year categories.
NanoTech Materials, a chemical manufacturer that integrates novel heat-control technology with thermal insulation, fireproofing, and cool roof coatings to drastically improve efficiency and safety, was named a finalist in the Scaleup of the Year category.
SageGeosystems, an energy company focused on developing and deploying advanced geothermal technologies to provide reliable power and sustainable energy storage solutions regardless of geography, was named a finalist in the Energy Transition Business category.
Square Robot, an advanced robotics company serving the energy industry and beyond by providing submersible robots for storage tank inspections, was named a finalist in the Scaleup of the Year category.
Syzygy Plasmonics, a company that's decarbonizing chemical production with a light-powered reactor platform that electrifies the production of hydrogen, syngas, and fuel with reliable, low-cost solutions, was named a finalist in the Scaleup of the Year category.
TierraClimate, a software provider that helps grid-scale batteries reduce carbon emissions, was named a finalist in the Energy Transition Business category.
Voyager Portal, a software platform that helps commodity traders and manufacturers in the O&G, chemicals, agriculture, mining, and project cargo sectors optimize the voyage management lifecycle, was named a finalist in the AI/Data Science Business category.

In addition to the startup finalists, two energy transition-focused organizations were recognized in the Community Champion Organization category, honoring a corporation, nonprofit, university, or other organization that plays a major role in the Houston innovation community. The two finalists in that category are:

Energy Tech Nexus, a new global energy and carbon tech hub focusing on hard tech solutions that provides mentor, accelerator and educational programs for entrepreneurs and underserved communities.
Greentown Houston, a climatetech incubator and convener for the energy transition community that provides community engagement and programming in partnership with corporations and other organizations.

Lastly, a few energy transition innovators were honored in the individual categories, including Carlos Estrada, growth partner at First Bight Ventures and head of venture acceleration at BioWell; Juliana Garaizar, founding partner of Energy Tech Nexus; and Neal Dikeman, partner at Energy Transition Ventures.

Over 500 people attended the 21st annual Energy Tech Venture Forum hosted by the Rice Alliance. Photo courtesy of Rice

Investors name most-promising energy tech startups at annual Houston event

big winners

Investors from around the world again identified the most-promising energy tech startups at the Rice Alliance for Technology and Entrepreneurship's annual event.

"The recognition that Houston is the epicenter of energy transition is growing. It's something we are championing as much as possible so that the world can know exactly what we're doing," Paul Cherukuri, chief innovation officer at Rice University says at the 21st annual Energy Tech Venture Forum.

The event took place during the inaugural Houston Energy and Climate Startup Week, and nearly 100 startups from 23 states and seven countries pitched investors Wednesday, September 11, and Thursday, September 12. At the conclusion of the event, the investors decided on 10 companies deemed "most promising" from the presentations.

This year's selected companies are:

Revterra, a Houston-based company innovating within kinetic battery technology to enable faster and cleaner electric vehicle charging.
From Austin, 360 Mining is a modular data center provider for the oil and gas producers.
New York company Andium is a centralized and optimized operations platform for large energy companies.
Elementium Materials, a local Katy-based company, created its battery technology that originated out of MIT.
Splight is a San Mateo, California-based technology platform that provides real-time operational data based on inverter-based resources assets.
Los Angeles-based Mitico, one of the Rice Alliance Clean Energy Accelerator's class 4 participants, provides services and equipment for carbon capture through its granulated metal carbonate sorption technology.
From Cambridge, Massachusetts, Osmoses is changing the way molecular gas separations are performed within the chemical, petrochemical, and energy industries.
Rice Alliance Clean Energy Accelerator class 4 participant CORROLYTICS, based in Houston, has a corrosion detection and monitoring technology. The company also won over the crowd and secured the People's Choice win too.
Ardent, based in New Castle, Delaware, has developed a membrane technology for point-source carbon capture.
New Haven, Connecticut-based Oxylus Energy produces an alternative fuel from converting CO2 into green methanol.

Last year, investors named its selection of most-promising companies at Rice.

"We have a responsibility as a city to lead energy transition," Cherukuri continues. "A lot of the investments we're making at Rice are going to change the world."

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This article originally ran on InnovationMap.

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Houston clean fuels co. secures $50M investment from Diamondback Energy subsidiary

money moves

Verde Clean Fuels announced the entry into a stock purchase agreement with Cottonmouth Ventures, a wholly-owned subsidiary of Diamondback Energy.

With the deal, Midland, Texas-based Cottonmouth will make a $50 million equity investment into Houston-based Verde.

The investment will consist of the purchase of 12.5 million shares of Verde’s Class A common stock at a purchase price of $4.00 per share. Closing of the investment is anticipated to occur during the first quarter of the new year, which will be subject to satisfaction of customary closing conditions. The investment would represent the second investment by Cottonmouth in Verde over the past two years, which would equal a total investment of $70 million. This would make Cottonmouth the second largest shareholder of Verde.

“We are pleased to further our relationship with Diamondback and continue advancing our plans to deploy our technology through the development of commercial production plants,” Ernest Miller, CEO of Verde, says in a news release. “Diamondback is a strategic industry partner at the forefront of bringing sustainable operational practices to the oilfield and supporting the overall transition to clean energy.”

Verde Clean Fuels key pioneering technology is its "syngas-to-gasoline plus" (STG+®), which turns diverse feedstocks like biomass, municipal solid waste (MSW), and natural gas – into gasoline or methanol. Verde is able to deploy facilities in areas with abundant and low-cost feedstock. The company has developed two different pathways to gasoline production with the goal of reducing carbon emissions.

Proceeds from the investment are expected to be used to further the development and construction of potential “natural gas-to-gasoline production plants in the Permian Basin and for other general corporate purposes,” according to Verde Clean Fuels. The proposed plants developed by the parties would produce fully-refined gasoline utilizing Verde’s patented STG+® process from associated natural gas feedstock supplied from Diamondback's operations in the Permian Basin. Verde will also expand its board of directors to eight members and appoint a new director to be designated by Cottonmouth. Cottonmouth will be entitled to appoint an observer to the company’s board.

“This investment is an expression of confidence in our technology, which we believe has the potential to alleviate economic and environmental concerns in the Permian Basin and other pipeline-constrained basins, where flaring and stranded natural gas represent a significant challenge,” Miller adds in the release.

How Houston stacks up: Here were 2024's top report-based, energy-focused articles

year in review

Editor's note: As the year comes to a close, EnergyCapital is looking back at the year's top stories in Houston energy transition. Progress can be tracked in a number of ways, and reports help shine a light on the city and state's movement toward a cleaner energy industry. The following report-based articles that stood out to readers this year — be sure to click through to read the full story.

Houston's energy industry deemed both a strength and weakness on global cities report

Houston could have ranked higher on a global report of top cities in the world if it had a bit more business diversification. Photo via Getty Images

A new analysis positions the Energy Capital of the World as an economic dynamo, albeit a flawed one.

The recently released Oxford Economics Global Cities Index, which assesses the strengths and weaknesses of the world’s 1,000 largest cities, puts Houston at No. 25.

Houston ranks well for economics (No. 15) and human capital (No. 18), but ranks poorly for governance (No. 184), environment (No. 271), and quality of life (No. 298).

New York City appears at No. 1 on the index, followed by London; San Jose, California; Tokyo; and Paris. Dallas lands at No. 18 and Austin at No. 39.

In its Global Cities Index report, Oxford Economics says Houston’s status as “an international and vertically integrated hub for the oil and gas sector makes it an economic powerhouse. Most aspects of the industry — downstream, midstream, and upstream — are managed from here, including the major fuel refining and petrochemicals sectors.” Continue reading.

Report: Solar tops coal in Texas for energy generation for the first time

In Texas last month, coal use dropped and solar energy soared, according to a new report. Photo via Pexels

For the first time in Texas, according to a recent report, solar energy generation surpassed the output by coal.

The report — from the Institute For Energy Economics and Financial Analysis — sourced the Energy Information Administration’s hourly grid monitor for March 2024. This shift in a predominantly oil and gas dominated history of Texas energy output, was due to solar power’s 3.26 million megawatt-hours to Electric Reliability Council of Texas (ERCOT) grid, compared to coal’s 2.96 million MWh.

In addition, coal’s market share fell below 10 percent to 9 percent for the first time ever, to just over 9 percent. The increase in solar energy pushed solar’s share of ERCOT generation to more than 10 percent for the month, which was also a first. Continue reading.

Houston rises as emerging hub for $6B global AI in oil and gas industry, per new report

The research outfit says North America leads global AI growth in oil and gas, with Houston playing a pivotal role. Image via Shutterstock

Houston is emerging as a hub for the development of artificial intelligence in the oil and gas industry — a global market projected to be worth nearly $6 billion by 2028.

This fresh insight comes from a report recently published by ResearchAndMarkets.com. The research outfit says North America leads global AI growth in oil and gas, with Houston playing a pivotal role.

“With AI-driven innovation at its core, the oil and gas industry is set to undergo a profound transformation, impacting everything from reservoir optimization to asset management and energy consumption strategies — setting a new standard for the future of the sector,” says ResearchAndMarkets.com. Continue reading.

Here's how Texas ranks among the greenest states

It might only be Texas' grass that is green. Photo via Getty Images

Turns out — Texas might not be as green as you thought.

A new report from WalletHub looked at 25 key metrics — from green buildings per capita to energy consumption from renewable resources — to evaluate the current health of states' environment and residents’ environmental-friendliness. Texas ranked No. 38, meaning it was the thirteenth least green state, only scoring 50.40 points out of 100.

“It’s important for every American to do their part to support greener living and protect our environment. However, it’s much easier being green in some states than others," writes Cassandra Happe, a WalletHub Analyst, in the report. "For example, if a state doesn’t have a great infrastructure for alternative-fuel vehicles, it becomes much harder for residents to adopt that technology. Living in a green state is also very beneficial for the health of you and your family, as you benefit from better air, soil and water quality.” Continue reading.

Texas finishes low on list of EV charging stations despite increased efforts in Houston

California, with its 14,500 charging stations, has more EV charging stations than New York, Florida, and Texas combined. Photo via Getty Images

In a new report that ranked states with the most electric vehicle chargers, Texas falls behind other similarly-sized states

The SmartAsset study looked at the closest EV charging stations equivalent to a trip to the gas station — factoring in each state's population. California, with its 14,500 charging stations, has five times the EV charging stations as New York (3,327), Florida (2,913) and Texas (2,472). While California ranked No. 1 on the list, Texas found itself at No. 41.

The report used EV charger and station data for each state from the U.S. Department of Energy for 2022 and 2021. Population data is for 2022 and comes from the U.S. Census Bureau 1-Year American Community Survey. Cities were also ranked by the number of fast chargers per capita. In 2022, Texas had 1,386 fast DC chargers, 2,472 EV charging stations, and a fast charger growth year over year 53.5 percent. Continue reading.

What to know about the new emission inspection to register your car in Texas

keep it clean

Beginning January 1, 2025, Texas vehicle owners will no longer need to obtain a safety inspection prior to vehicle registration. House Bill 3297, passed during the 88th Legislature in 2023, eliminates the safety inspection program for non-commercial vehicles.

Under the new law, the $7.50 fee that drivers had to pay as a safety inspection fee has not gone away. It now appears on your registration notice under a new name: "Inspection Program Replacement Fee."

This name change comes courtesy of the legislature, who want to keep collecting this fee because the funds go to state programs such as construction and expansion of state highways — funds they previously collected from the Safety Inspection Fee.

And while the safety inspection is gone, state law will still require that drivers in 17 counties must pass an "emission inspection" on vehicles that are 2 to 24 years old, in order to get your vehicle registered.

But what does an "emissions inspection" mean?

The Texas Department of Public Safety (DPS) details the following changes:

Safety inspection out, emissions testing in
Until December 31, 2024, safety inspections are required for vehicle registration in all 254 counties. Beginning January 1, 2025, noncommercial vehicles in Texas will no longer be required to have an annual safety inspection. Instead, vehicles will have to get an emissions inspection on gasoline-powered vehicles that are 2 to 24 years old.

What is no longer going to be "inspected"?
Texas Transportation Code §548.051 specifies the list of old-school inspection items which will no longer be checked. Moving forward, they will no longer be checking: tires, wheel assembly, safety guards, safety flaps, brakes, steering, lighting, horns, mirrors, windshield wipers, sunscreening devices, and front seat belts in vehicles on which seat belt anchorages were part of the manufacturer's original equipment.

What will still be inspected are listed as "Items 12–15": exhaust system, exhaust emissions system, fuel tank cap, and emissions control equipment. These will be part of the emissions inspection process in 17 counties.

Those 17 counties where this is relevant include:

DFW: Collin, Dallas, Denton, Ellis, Johnson, Kaufman, Parker, Rockwall, and Tarrant
Houston: Brazoria, Fort Bend, Galveston, Harris, and Montgomery
Austin: Travis and Williamson
El Paso County

Beginning on November 1, 2026, emissions inspections will be required for vehicles registered in Bexar County.

Where will emissions inspections be obtained?
Emissions inspections can be obtained at DPS-certified vehicle inspection stations in the 17 emissions counties. These will be the exact same inspection locations we've been going to all along, when it was called a safety inspection. Emissions inspections are not available in the other 237 Texas counties.

DPS offers an inspection station locator online.

What is the estimated cost of an emissions inspection?
Vehicle owners will pay an emissions inspection fee of $2.50 annually to the Texas Department of Motor Vehicles (TxDMV) at the time of registration. The actual fee you'll pay at the inspection station (as listed on TCEQ’s website) will be $25.50. Just like the former "safety inspection" fee.

In short: There is little that's changing about the entire inspection process, except they won't bother making you honk your horn.

———

This article originally ran on CultureMap.

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