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Houston's top energy transition founders explain their biggest challenges

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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 InnoVent Renewables, 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 Sage Geosystems, 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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Fervo Energy's big deal — and more things to know this week. Photo via blog.google

Fervo's $244M funding round, events not to miss, and more Houston energy transition things to know this week

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Editor's note: Dive headfirst into the new week with three quick things to catch up on in Houston's energy transition: a roundup of events not to miss, a podcast to stream, and more.

Really big deal: Fervo Energy raises $244M funding round

An Oklahoma-based shale oil and gas leader has backed Fervo Energy's latest round of funding, supporting the startup's geothermal technology yet again.

Fervo announced its latest round of funding this week to the tune of $244 million. The round was led by Devon Energy, a company that's previously backed the startup.

“Demand for around-the-clock clean energy has never been higher, and next-generation geothermal is uniquely positioned to meet this demand,” Tim Latimer, Fervo CEO and co-founder, says in a news release. “Our technology is fully derisked, our pricing is already competitive, and our resource pipeline is vast. This investment enables Fervo to continue to position geothermal at the heart of 24/7 carbon-free energy production.” Read more.

Podcast to stream: Emma Konet, CTO and co-founder of Tierra Climate

If the energy transition is going to be successful, the energy storage space needs to be equipped to support both the increased volume of energy needed and new energies. And Emma Konet and her software company, Tierra Climate, are targeting one part of the equation: the market.

"To me, it's very clear that we need to build a lot of energy storage in order to transition the grid," Konet says on the Houston Innovators Podcast. "The problems that I saw were really on the market side of things."

Konet says she was bullish on the energy storage side of things when she was an early hire at Key Capture Energy, a private equity-backed energy storage project developer. The issue with energy storage projects, as Konet describes, is they aren't being monetized properly and, in some cases, aren't sustainable and increasing emissions. Read more.

Events not to miss

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

  • For the sixth year in a row, the Industrial XR Forum is returning to bring together industrial, energy & engineering immersive tech leaders, software developers and more at the 2024 Industrial IMMERSIVE Week on March 5 to 7 at Hyatt Regency West. Register.
  • CERAWeek 2024 is Monday, March 18, to Friday, March 22, in the George R. Brown Convention Center. Register.
  • DeCarb Connect supports senior leaders in decarbonization to accelerate strategy and decision making to reduce carbon emissions and reach net zero targets. The event is March 26 to 28 at Westin Houston Memorial City. Register.
  • On March 27, Greentown Houston is hosting "Accelerating Net-Zero Solutions: CCUS Innovation and Startup Showcase." Watch the Go Make 2023 cohort pitch their innovations in carbon utilization, storage, and traceability; hear about their work with Shell throughout the startup-corporate-partnerships accelerator; and learn from CCUS industry experts. Register.
  • On April 17, the University of Houston presents "Gulf Coast Hydrogen Ecosystem: Opportunities & Solutions" featuring experts from academia, industry, government, and more. The symposium begins at 8 am with a networking reception takes place beginning at 5 pm at the University of Houston Student Center South - Theater Room. Register.

Tierra Climate is technology agnostic, so while the company is seeing activity in the battery space, they can also work with other types of storage. Photo via Getty Images

Houston-based energy storage fintech platform founder targets new market key to transition

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If the energy transition is going to be successful, the energy storage space needs to be equipped to support both the increased volume of energy needed and new energies. And Emma Konet and her software company, Tierra Climate, are targeting one part of the equation: the market.

"To me, it's very clear that we need to build a lot of energy storage in order to transition the grid," Konet says on the Houston Innovators Podcast. "The problems that I saw were really on the market side of things."

Konet says she was bullish on the energy storage side of things when she was an early hire at Key Capture Energy, a private equity-backed energy storage project developer. The issue with energy storage projects, as Konet describes, is they aren't being monetized properly and, in some cases, aren't sustainable and increasing emissions.

"The product we're building is solving these problems. It's a financial product, but what it's doing is solving a market deficiency," she says. "We're sending the right signal to the battery to operate in a way that reduces emissions, and then we're paying them for it because there's a demand to decarbonize."

For over a year, Konet, as co-founder and CTO, has worked on the platform, which is essentially a marketplace for corporates to buy carbon offsets, incentifying and monetizing storage projects.

Emma Konet, co-founder and CTO of Tierra Climate, joins the Houston Innovators Podcast. Photo via LinkedIn

Tierra Climate is technology agnostic, so while the company is seeing activity in the battery space, they can also work with other types of storage — like hydrogen, pumped water, and more. Konet says her ideal customers are companies with money and interest in playing a role in the energy transition and looking to offset their scope two and three emissions.

"The ultimate vision for our company is for this to be an accessible product that has a high degree of integrity that small to very large companies can execute on, because it's a pay-per-performance mechanism that doesn't lock companies into a really large contract," she says. "It's really scalable."

This year, she says the company, which won fourth place in the 2023 Rice Business Plan Competition, is focused on securing its first big contract and fundraising for its seed round.

———

This article originally ran on InnovationMap.

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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    Fervo Energy officially files for initial public offering

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    Fervo Energy has officially filed for IPO.

    The Houston-based geothermal unicorn filed a registration statement on Form S-1 with the U.S. Securities and Exchange Commission on April 17 to list its Class A common stock on the Nasdaq exchange. Fervo intends to be listed under the ticker symbol "FRVO."

    The number and price of the shares have not yet been determined, according to a news release from Fervo. J.P. Morgan, BofA Securities, RBC Capital Markets and Barclays are leading the offering.

    The highly anticipated filing comes as Fervo readies its flagship Cape Station geothermal project to deliver its first power later this year

    "Today, miles-long lines for gasoline have been replaced by lines for electricity. Tech companies compete for megawatts to claim AI market share. Manufacturers jockey for power to strengthen American industry. Utilities demand clean, firm electricity to stabilize the grid," Fervo CEO Tim Latimer shared in the filing. "Fervo is prepared to serve all of these customers. Not with complex, idiosyncratic projects but with a simplified, standardized product capable of delivering around-the-clock, carbon-free power using proven oil and gas technology."

    Fervo has been preparing to file for IPO for months. Axios Pro first reported that the company "quietly" filed for an IPO in January and estimated it would be valued between $2 billion and $3 billion.

    Fervo also closed $421 million in non-recourse debt financing for the first phase of Cape Station last month and raised a $462 million Series E in December. The company also announced the addition of four heavyweights to its board of directors last week, including Meg Whitman, former CEO of eBay, Hewlett-Packard, and Spring-based HPE.

    Fervo reported a net loss of $70.5 million for the 2025 fiscal year in the S-1 filing and a loss of $41.1 million in 2024.

    Tracxn.com estimates that Fervo has raised $1.12 billion over 12 funding rounds. The company was founded in 2017 by Latimer and CTO Jack Norbeck.

    Houston lawmaker may kill data center tax breaks due to $8B revenue loss

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    An influential Houston-area state senator is raising concerns about potentially billions of dollars in lost state revenue from tax breaks for Texas data centers—and is pondering legislation that would abolish the tax incentives.

    Citing data from the state comptroller’s office, The Texas Tribune reports the state stands to lose nearly $8 billion in revenue from 2026 to 2030 due to sales tax and use tax exemptions for data centers. During the state’s 2025 fiscal year, which ended on Aug. 31, these tax exemptions caused Texas to lose a little over $1 billion, up from an earlier estimate of $130 million.

    “These new numbers are extremely concerning, and I will say they’re unsustainable,” Republican state Sen. Joan Huffman, chairwoman of the state Senate Finance Committee, tells The Texas Tribune. “I plan to look at filing legislation to either repeal the exemption or take a very close look at it and see.”

    Texas on track to be No. 1 data center market in U.S.

    Scrutiny of the tax breaks comes amid an explosion of data center development in Texas, where data provider Aterio identifies nearly 1,000 centers that are operating, under construction or planned.

    A report issued in January by Bloom Energy says the state is poised to become the No. 1 U.S. market for data centers within three years. By 2028, according to the report, Texas is projected to exceed 40 gigawatts of data center capacity—representing nearly 30 percent of total U.S. demand.

    Among companies benefiting from the data center boom are:

    • Tech titans like Apple, Google, Meta Platforms, and Microsoft, which are spending billions of dollars to build data centers in Texas.
    • Spring-based ExxonMobil and Houston-based Chevron, two oil and energy giants that are developing natural gas plants to supply power for data centers.
    • Houston-based energy technology company Baker Hughes, which is collaborating with Google Cloud to develop AI-enabled power optimization and sustainability software for data centers.
    • DataBank, Data Foundry, Equinix, Digital Realty, Lumen Technologies, and IBM, all of which operate data centers in the Houston area.

    The Texas Legislature will begin debating tax breaks for data centers in July, when Huffman’s Senate Finance Committee meets for an interim hearing before the 2027 legislative session, according to the Tribune.

    Data center industry defends tax breaks

    Leaders in the data center industry warn that watering down or halting the tax breaks could slow down or even end Texas’ ascent in the data center sector.

    A 2025 report commissioned by the Data Center Coalition found that in 2024, data centers provided more than $1.6 billion in state tax revenue and almost $1.6 billion in local tax revenue in Texas. Over the next several years, according to the report, planned development of data centers in the Lone Star State could generate almost $3.8 billion in state tax revenue and more than $4.9 billion in local tax revenue.

    In 2024, the Houston area had 8.1 million gross square feet of data centers, with the properties’ real estate investments sitting at $10 billion, according to the report. That year, data centers in the region produced a little over $700 million in state and local tax revenue. About 60 data centers operate in the Houston area.

    Watchdog group warns of tax breaks’ danger to state budgets

    On the other side of the debate over tax breaks for data centers, a report released last year by Good Jobs First, a nonprofit, nonpartisan watchdog group that tracks economic development incentives, decries the tax breaks as dangerous to state budgets.

    “We know of no other form of state spending that is so out of control. Therefore, we recommend that states cancel their data center tax exemptions,” says Good Jobs research analyst Kasia Tarczynska, co-author of the report. “Shy of that, states should amend … legislation to cap how much any facility and company can avoid paying in taxes each year.”

    Helix Earth closes $12M round and more Houston energy headlines

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    Editor's note: The top energy transition headlines for the month include Helix Earth's Seed 2 funding and Chevron's plans for a West Texas power plant. Below are the five most-read EnergyCapital stories published April 1-15, 2026:

    1. Houston cleantech company closes $12M seed round

    Helix Earth is developing a retrofit technology that has the potential to cut HVAC energy use by up to 50 percent. Photo via Getty Images

    Houston-based Helix Earth Technologies has closed a $12 million Seed 2 funding round to scale manufacturing of its energy-efficient commercial HVAC add-on technology. Veriten, a Houston-based energy investment firm, led the round. Rua Ventures, Carnrite Ventures, Skywriter LLC and Textbook Ventures also participated. Continue reading.

    2. Chevron eyes $7B Texas power plant for Microsoft data center campus

    Chevron is in talks with Microsoft and Engine No. 1 about a massive natural gas power plant in Texas. Photo via Getty Images

    Software giant Microsoft is negotiating exclusively with Houston-based oil and gas titan Chevron and investment firm Engine No. 1 about the development of a $7 billion power plant in West Texas that would supply electricity for a Microsoft data center campus. Continue reading.

    3. 3 strategies to strengthen the Gulf Coast as a global energy hub

    The Gulf Coast is one of the most critical energy hubs in the world. Photo via Getty Images.

    The Texas-Louisiana Gulf Coast is the backbone of America’s energy and chemical economy. Texas produces roughly 43% of U.S. crude oil and 28% of natural gas, while Texas and Louisiana together account for about half of the nation’s refining capacity, processing 9.3 million barrels of crude per day across 50 refineries. The region also produces approximately 80% of the nation’s primary petrochemicals and ships more than $117 billion in chemical products annually from Texas alone. Continue reading.

    4. 8 CERAWeek 2026 takeaways from a new Houston energy leader

    Kelsey Kearns (right), the new director of Greentown Houston, shared her takeaways from her first-ever CERAWeek with Energy Capital HTX. Photo courtesy Greentown

    My first CERAWeek was a blur. Having top energy executives, policymakers, and technologists all gathered in Houston—over 11,000 of them this year—was both overwhelming and energizing. The theme was “Convergence and Competition: Energy, Technology, and Geopolitics,” and walking through the George R. Brown Convention Center, it was immediately clear that this was no ordinary industry conference. As a first-timer with a Greentown Labs lens, here’s what really stuck with me. Continue reading.

    5. Greentown Labs names new COO, appoints new Head of Houston

    Lawson Gow and Kelsey Kearns have stepped into new leadership roles at Greentown Labs. Photos courtesy Greentown/LinkedIn

    Greentown Labs has reshuffled its leadership, elevating Houston leaders into new roles. Lawson Gow was named COO of the Houston- and Boston-based climatech incubator in February 2026. In his new role, he will focus on optimizing Greentown's structure, building new internal and external systems and developing a plan for growth. Continue reading.

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