Houston expert on why companies are investing in sustainable energy technology

guest column

Here's why more and more companies — across industries — are making the switch to sustainable technology. Photo via Getty Images

In a modern business landscape characterized by increasing uncertainty and volatility, energy resilience has emerged as a cornerstone of strategic decision-making.

Let's delve deeper into why executives should view energy resilience as one of the best risk management investments they can make.

Mitigating risks and enhancing stability

Investing in energy resilience isn't solely about averting risks; it's about mitigating the potential losses that could arise from energy-related disruptions. It is estimated that half of today’s businesses lack an effective resilience strategy, even though nearly 97 percent of companies have been impacted by a critical risk event.

Whether it's power outages from extreme weather events, grid emergencies from a changing resource mix that is more weather dependent or cyber-attacks, disruptions can inflict substantial financial and reputational damage on businesses. By implementing resilient energy infrastructure and practices, organizations can minimize the impact of such disruptions, ensuring consistent operations even in the face of adversity. As an added benefit, these investments can also contribute to enhancing the stability of our grid infrastructure, benefiting not just individual businesses but the local community and the entire economy.

Improving costs and operational efficiency

Energy resilience also isn't just a defensive strategy; it's also about optimizing costs and operational efficiency to create competitive advantage. By investing in resilient energy infrastructure, such as backup power systems and microgrids, businesses can reduce the downtime associated with energy disruptions, thus avoiding revenue losses and operational inefficiencies.

Additionally, resilient energy solutions often lead to long-term cost savings through increased energy efficiency and reduced reliance on costly backup systems. As circumstances become increasingly uncertain, businesses that prioritize energy resilience can gain a competitive edge by operating more efficiently and cost-effectively than their counterparts.

Ensuring consistent operations amidst uncertainty

In today's rapidly changing business environment, characterized by geopolitical tensions, climate change, and technological advancements, uncertainty has become the new normal. Amidst this uncertainty, ensuring consistent operations is paramount for business continuity and long-term success. Investing in energy resilience provides businesses with the assurance that they can maintain operations even in the face of unforeseen challenges.

Whether it's a sudden power outage from a storm or the grid is stressed and unable to deliver reliable power, resilient energy infrastructure enables organizations to adapt swiftly and continue delivering products and services to customers without interruption.

Enhancing sustainability efforts

In recent years, a growing emphasis on sustainability and environmental stewardship has led to organizations recognizing the importance of reducing their carbon footprint and transitioning towards cleaner, renewable energy sources. Investing in energy resilience provides an opportunity to align sustainability efforts with business objectives.

By integrating renewable energy technologies and energy-efficient practices into their resilience strategies, organizations can not only enhance their environmental performance but also achieve long-term cost savings, ensure regulatory compliance, and build stakeholder trust.

The value of energy resilience for businesses

It is not enough to successfully handle day-to-day operations anymore; organizations need to be prepared for unpredictable events with a reliable energy supply and backup plan. Recently, a hospital in Texas had to evacuate patients and experienced heavy financial losses due to the failure of their traditional diesel generators during an extended outage.

After reevaluating their resiliency strategy, they decided to implement full-facility backup power using Enchanted Rock’s dual-purpose managed microgrid solution, which kept their power on during the next outage and ensured both patient safety and full operational capabilities. Investing in an energy resilience strategy like a microgrid will mitigate these risks and ensure always-on power in times of uncertainty.

A responsible decision for the greater good

Beyond the immediate benefits to individual businesses, investing in energy resilience is also a responsible decision for the greater good. As businesses become increasingly reliant on the grid infrastructure, ensuring its resilience is essential for the stability and reliability of the entire energy ecosystem. By proactively investing in resilient energy solutions, for themselves, businesses also contribute to strengthening the grid infrastructure, reducing the risk of widespread outages, and promoting the overall resilience of the energy system.

Executives must recognize the strategic imperative of investing in resilient energy infrastructure like microgrid systems, which can provide a competitive advantage against organizations that do not have similar measures in place. In doing so, they can navigate uncertainty with confidence, set their business up for future success, and emerge stronger and more resilient than ever before.

———

Ken Cowan is the senior vice president of Enchanted Rock, a Houston-based provider of microgrid technology.

Paul Froutan has been named COO of Enchanted Rock. Photo via Enchanted Rock

Houston-based microgrid company names new COO

c-suite switchup

Houston-based Enchanted Rock, which provides dual-purpose microgrids, announced that Paul Froutan has been named COO.

Froutan joined Enchanted Rock in 2022 as the chief technology officer. He will replace Thais Grossi, who served in the role for nearly eight years.

Froutan previously led Google's Global Data Center Operations and was responsible for managing Google's worldwide data center and server operations. He also served as the vice president of engineering for Rackspace Hosting, and holds a Bachelor of Science in mechanical engineering and an MBA from the University of Texas at Austin.

“Since joining Enchanted Rock, I've been impressed with the team's vast knowledge of natural gas microgrids and how that has been applied to deliver both customer resiliency and financial value," Froutan says in a news release. "Taking the next step and bringing technology, EPC, and O&M together under one umbrella will further improve our innovation feedback loop, which benefits our customers and the communities that rely on our services."

In his previous role with the company, Froutan was responsible for GraniteEcoSystem, Enchanted Rock's microgrid management software, and the launch of the company's advanced natural gas generator initiative. Froutan will lead the product engineering, EPC, and operations and maintenance teams.

"Paul has helped take the technology and intelligence powering our solutions to the next level, and we are pleased that he has accepted this expanded role," Thomas McAndrew, CEO of Enchanted Rock, says in a news release. "His understanding of emerging technologies and operational excellence, paired with his extensive experience leading high-performing teams, make him an excellent choice to continue our commitment to deliver customer-focused solutions. We are also extremely grateful for Thais' dedication to the Enchanted Rock team and our customers."

Enchanted Rock's electrical microgrids use natural gas and renewable natural gas to help produce lower carbon emissions and air pollutants than diesel generators,and are capable of achieving resiliency with net-zero emissions. The company recently received a $2.1 million grant from the California Energy Commission for development of technology aimed at reducing greenhouse gasses and other natural gas emissions. Enchanted Rock will share the grant with the University of California Riverside, or UCR.

Enchanted Rock specializes in electrical-resiliency-as-a-service for sectors such as health care, manufacturing, and government infrastructure. Photo via enchantedrock.com

Houston microgrid company scores $2.1M grant for hydrogen blending tech research

fresh funding

A Houston-based provider of electric microgrids has scooped up a $2.1 million grant from the California Energy Commission for development of technology aimed at reducing greenhouse gasses and other natural gas emissions.

Enchanted Rock shares the grant with the University of California Riverside, or UCR.

“This is an exciting opportunity to further advance the potential use of hydrogen fuel blends for commercialization and market adoption,” Thomas McAndrew, founder and CEO of Enchanted Rock, says in a news release. “We believe in using the cleanest fuel available without compromising on reliability or performance for our customers and are dedicated to helping California, and the nation, achieve its climate and energy goals.”

The use of a hydrogen and natural gas blend for fueling generators shows promise for reducing emissions and improving efficiency, according to Enchanted Rock. The company says the funding will enable it to identify the ideal blend of natural gas and hydrogen for operating a natural generator while improving performance and minimizing emissions.

As part of the grant, UCR’s College of Engineering-Center for Environmental Research and Technology (CE-CERT) will play a key role in measuring emissions and combustion performance. Meanwhile, Palomar College in San Marcos, California, will host a field demonstration site.

”Hydrogen is one of the ‘low-hanging fruit’ solutions to decarbonize our transportation system and other sectors where emissions are hard to abate, and it can serve as a zero-carbon green fuel for internal combustion off-road and highway engines,” says UCR professor Georgios Karavalakis.

Founded in 2006, Enchanted Rock specializes in electrical-resiliency-as-a-service for sectors such as health care, manufacturing, and government infrastructure. The company’s dual-purpose microgrids rely on natural gas and renewable natural gas to produce lower carbon emissions and air pollutants than diesel generators.

In December, Enchanted Rock said it had teamed up with U.S. Energy to supply renewable natural gas for Microsoft’s new data center in San Jose, California, during grid outages and when businesses are directed to reduce power usage.

A carbon neutral data center back-up grid is coming soon to Microsoft — thanks to tech from a Houston company. Photo by Christina Morillo/Pexels

Houston energy resiliency company collaborates on carbon-neutral grid project for Microsoft data center

sustainable support

Microsoft is one step closer to its goals of being carbon negative by 2030 thanks to a new initiative involving a Houston energy company.

Houston-based Enchanted Rock has teamed up to provide its electrical resiliency-as-a-service and ultra-low-emission generators to Microsoft’s new data center in San Jose, California.

Along with Wisconsin-based U.S. Energy, a vertically integrated energy solutions provider, the partnership will procure renewable natural gas for the data center during grid outages and when California’s Base Interruptible Power is activated. Previously, Microsoft announced its plans for carbon neutrality by 2030.

“Enchanted Rock has always been committed to using the cleanest fuel available without compromising on reliability for our customers,” Thomas McAndrew, founder and CEO of Enchanted Rock, says in a news release. “After announcing our renewable natural gas solution in 2021 and this particular Microsoft data center project in 2022, we’re proud to be taking this important next step toward seeing this key technology in operation."

Enchanted Rock, founded in 2006, provides microgrid technology that use natural gas and renewable natural gas, providing for lower emissions and pollution than diesel generators. The company also provides a software platform, GraniteEcosystem, for users for constant management, analytics, and more.

The RNG for the will be delivered by U.S. Energy and sourced from diverted food waste. Per the release, the agreement allows for flexibility in the amount of RNG supplied, which is scheduled to begin being procured by early 2026, so that the initiative will meet its evolving standards for emissions reduction.

“Energy resilience is crucial with data centers like this one,” president of U.S. Energy, Mike Koel, says in the release. “Through our portfolio of 40 renewable natural gas projects, we’re able to ensure our customers have the supply needed to meet any additionality requirements. As we continue to grow our portfolio, our partnership with Enchanted Rock will help more organizations take that next step in their carbon reduction goals.”

Ad Placement 300x100

Ad Placement 300x600

CultureMap Emails are Awesome

Property Showcase

Investors from Houston and Boston fuel Greentown with $4M commitment

next era

Greentown Labs, a climatetech incubator with locations in the Houston and Boston areas, has announced it has received funding from a mix of investors.

The $4 million in funding came from both of the Houston and Massachusetts locations. Houston investors included Bobby Tudor, CEO of Artemis Energy Partners and chairman of the Houston Energy Transition Initiative; David Baldwin, co-founder of OpenMinds and TEX-E and partner at SCF Partners; and Rice University. Other investors included MassDevelopment and the City of Somerville.

“The challenges of the energy transition are immense, and the role played by technology incubators like Greentown Labs is essential,” Tudor says in a news release. “We believe this role, which is a partnership between academia, industry, philanthropists, entrepreneurs, and governments, is the best way to get to effective, scalable solutions in a time frame that the urgency of the challenge requires. We need all hands on deck, and this partnership between Massachusetts and Texas can be a role model for others.”

According to Greentown, the funding will support its financial position and contribute to preparing the incubator for its next chapter of supporting its its leadership team prepare for Greentown’s next chapter supporting and growing its 575 startups.

“Greentown’s mission aligns closely with the Houston Energy Transition Initiative’s goal of accelerating global solutions to address the dual challenge of meeting growing energy demand globally while also significantly reducing CO2 emissions,” adds Steve Kean, president and CEO of the Greater Houston Partnership.

With the announcement of the funding, Greentown named its board members, including Tudor, who will serve as Greentown Labs Board Chair. The other Houston-based board members are:

David Baldwin, co-founder of OpenMinds and TEX-E; partner atSCF Partners
Bob Harvey, former president and CEO of GHP; board member of TEX-E
Jane Stricker, senior vice president of energy transition and executive director of HETI

“With this new funding, Greentown is poised to expand its impact across its existing ecosystems and support even more climatetech startups,” adds Kevin Dutt, interim CEO of Greentown Labs. “We believe in the essential role entrepreneurship will play in the energy transition and we’re grateful for the support of our partners who share in that belief and our collective commitment to commercializing these technologies as quickly and efficiently as possible.”

According to Greentown, the incubator plans to announce its new CEO in the coming months.

2 Houston companies invest in innovative carbon-converting tech from Rice University

freshly funded

A Canadian company based on tech originating out of Rice University closed an equity financing round of up to $20 million thanks to two Houston-based companies.

NewTech Investment Holdings and Westlake Innovations Inc. led Universal Matter's investment round, which the company expand its graphene-based dispersion capacity technology that can be used for servicing customers and prospective customers in its target markets.

“Our continuing interest at NewTech is to seek out and invest in advanced materials companies having high potential to deliver disruptive technologies and environmental benefits within the cleantech sector,” NewTech Investment Holdings Managing Director Guy Hoffman says in a news release. “Universal Matter stands out with its game-changing graphene manufacturing process for producing high quality products that help reduce the carbon footprint in hard- to-abate sectors, such as cement concrete and bitumen asphalt-based applications.

Universal Matter's Flash Joule Heating process technology — originating out of Rice University's James Tour lab by scientist Duy Luong — can upcycle carbon into fully formulated graphene-based products to enhance the performance and sustainability of major industrial materials, per the company's release. Universal Matter developed the complementary product technologies with its Genable graphene-based dispersions that equate to ease-of-use by fabricators in major global markets that include cement/concrete, bitumen asphalt, industrial coatings, automotive tires, and others.

“Graphene is a material with a number of potential performance and sustainability benefits that could apply across a number of Westlake’s ‘Performance & Essential Materials and Housing & Infrastructure Products’ business lines,” Westlake's Senior Vice President and Managing Director John Chao says in the release. “We look forward to working with Universal Matter and its management team as it moves forward on development and commercialization of its flexible technology.”

This year, Universal Matter participated in the Greentown Go Make program put on by Greentown Labs and Shell. During the program, Universal Matter worked with Shell to identify eight potential collaboration areas across upstream carbon feedstocks, downstream end-use applications for the startup’s graphene, and more.

METRO rolls out electric shuttles for downtown Houston commuters

seeing green

The innovative METRO microtransit program will be expanding to the downtown area, the Metropolitan Transit Authority of Harris County announced on Monday.

“Microtransit is a proven solution to get more people where they need to go safely and efficiently,” Houston Mayor John Whitmire said in a statement. “Connected communities are safer communities, and bringing microtransit to Houston builds on my promise for smart, fiscally-sound infrastructure growth.”

The program started in June 2023 when the city’s nonprofit Evolve Houston partnered with the for-profit Ryde company to offer free shuttle service to residents of Second and Third Ward. The shuttles are all-electric and take riders to bus stops, medical buildings, and grocery stores. Essentially, it works as a traditional ride-share service but focuses on multiple passengers in areas where bus access may involve hazards or other obstacles. Riders access the system through the Ride Circuit app.

So far, the microtransit system has made a positive impact in the wards according to METRO. This has led to the current expansion into the downtown area. The system is not designed to replace the standard bus service, but to help riders navigate to it through areas where bus service is more difficult.

“Integrating microtransit into METRO’s public transit system demonstrates a commitment to finding innovative solutions that meet our customers where they are,” said METRO Board Chair Elizabeth Gonzalez Brock. “This on-demand service provides a flexible, easier way to reach METRO buses and rail lines and will grow ridership by solving the first- and last-mile challenges that have hindered people’s ability to choose METRO.”

The City of Houston approved a renewal of the microtransit program in July, authorizing Evolve Houston to spend $1.3 million on it. Some, like council member Letitia Plummer, have questioned whether microtransit is really the future for METRO as the service cuts lines such as the University Corridor.

However, the microtransit system serves clear and longstanding needs in Houston. Getting to and from bus stops in the city with its long blocks, spread-out communities, and fickle pedestrian ways can be difficult, especially for poor or disabled riders. While the bus and rail work fine for longer distances, shorter ones can be underserved.

Even in places like downtown where stops are plentiful, movement between them can still involve walks of a mile or more, and may not serve for short trips.

“Our microtransit service is a game-changer for connecting people, and we are thrilled to launch it in downtown Houston,” said Evolve executive director Casey Brown. “The all-electric, on-demand service complements METRO’s existing fixed-route systems while offering a new solution for short trips. This launch marks an important milestone for our service, and we look forward to introducing additional zones in the new year — improving access to public transit and local destinations.”

———

This article originally ran on CultureMap.

View All Listings

ENERGYCAPITALHTX EMAILS ARE AWESOME