The Woodlands-based Lancium has licensed patents to ERCOT that help increase or decrease power consumption during peak periods or emergencies. Photo courtesy of ERCOT
Lancium, a company based in The Woodlands that specializes in infrastructure for connecting large-scale data centers to power grids, is licensing a portfolio of patents to the Electric Reliability Council of Texas (ERCOT) at no cost.
In a news release, Lancium says the intellectual property agreement “ensures ERCOT can sublicense these patents freely, thereby expanding market participation opportunities without risk of patent infringement disputes.”
“This agreement exemplifies Lancium’s dedication to supporting grid stability and innovation across the ERCOT region,” Michael McNamara, CEO of Lancium, said in a news release. “While these patents represent significant technological advancements, we believe that enabling ERCOT and its market participants to operate freely is more valuable for the long-term reliability and resilience of the Texas grid.”
The licensed patents encompass Lancium technologies that support load resources in ERCOT’s market, which covers about 90 percent of Texas. Specifically, the patents deal with controllable load resources. A controlled load resource allows ERCOT and other grids to increase or decrease power consumption during peak periods or emergencies.
ERCOT predicts power demand in Texas will nearly double by 2030, “in part due to more requests to plug into the grid from large users like data centers, crypto mining facilities, hydrogen production plants, and oil and gas companies,” The Texas Tribune reported.
As part of an ongoing process to make Houston better prepared for climate disasters, CenterPoint Energy announced its latest progress update on the second phase of the Greater Houston Resiliency Initiative (GHRI).
CenterPoint reported that it has completed 70 percent of its resiliency work and all GHRI-related actions are expected to be complete before the official start of the 2025 hurricane season.
"Our entire CenterPoint Houston Electric team is focused on completing this historic suite of grid resiliency actions before the start of hurricane season,” Darin Carroll, Senior Vice President of CenterPoint's Electric Business, said in a news release. “That is our goal, and we will achieve it. To date, we have made significant progress as part of this historic effort.”
CenterPoint’s resiliency solutions include clearing higher-risk vegetation across thousands of miles of power lines, adding thousands more automation devices capable of self-healing, installing thousands of storm-resistant poles, and undergrounding hundreds of miles of power lines.
CenterPoint's GHRI efforts, which entered a second phase in September 2024, aim to improve overall grid resiliency and reliability and are estimated to reduce outages for customers by more than 125 million minutes annually, according to the company. It has undergrounded nearly 350 miles of power lines, about 85 percent of the way toward its target of 400 miles, which will help improve resiliency and reduce the risk of outages. CenterPoint also aims to install the first of 100 new local weather monitoring stations by June 1.
In March, CenterPoint cleared 655 miles of high-risk vegetation near power lines, installed 1,215 automated reliability devices capable of self-healing, and added an additional 3,300 storm-resilient poles.
In April, CenterPoint will begin building a network of 100 new weather monitoring stations, which will provide 24/7 weather monitoring and storm response preparation.
“We will continue to work every day to complete these critical improvements as part of our company's goal of building the most resilient coastal grid in the country,” Carroll added in the release.
CenterPoint has partnered with Atlanta-based Osmose and Australia-based Neara to use AI-powered predictive modeling to inform decisions on restorations and risk. Photo via Getty Images
Houston utilities giant CenterPoint is partnering with companies from Atlanta and Australia to use AI to increase data accuracy and strengthen the power grid.
The partnership is part of a collaboration between AI-powered predictive modeling platform company Neara and utility infrastructure asset assessment solutions company Osmose, according to a news release.
Last year, CenterPoint Energy announced an agreement with Neara for engineering-grade simulations and analytics and to deploy Neara’s AI capabilities across CenterPoint’s Greater Houston service area. Now, Neaera will work with Osmose to give energy providers like CenterPoint more up-to-date data to inform decisions on restorations and risks.
CenterPoint Energy is already using the partnership's tools to improve network reliability and enhance its storm preparedness.
"At CenterPoint Energy, we are focused every day on building the most resilient coastal grid in the nation and increasing the resiliency of the communities we are privileged to serve," Eric Easton, VP of Grid Transformation at CenterPoint Energy, said in a news release.
According to Osmose, its services to CenterPoint can result in repair cost savings of up to 70 percent and boost restoration times by up to 80 percent. Osmose also said its services assist with being 25 percent better at ensuring the most critical repairs happen first.
"By integrating Neara's AI-driven modeling with our industry-leading field services, we're giving utilities a powerful tool to make smarter, more data-driven decisions," Mike Adams, CEO of Osmose, said in a news release. "Accurate asset data is the foundation for a resilient grid, and this partnership provides the precision needed to maximize reliability and performance."
Ultimately, the companies say the partnership aims to help minimize disruptions and improve reliability for CenterPoint customers.
"As we work to leverage technology to deliver better outcomes for our customers, we're continuing to enhance our advanced modeling capabilities, which includes collaborating with cutting-edge technology providers like Neara and Osmose,” Easton added in the release.
Despite its high energy production, Texas has had more outages than any other state over the past five years due to the increasing frequency and severity of extreme weather events and rapidly growing demand. Photo via Getty Images
Texas stands out among other states when it comes to energy production.
Even after mass rolling blackouts during Winter Storm Uri in 2021, the Lone Star State produced more electricity than any other state in 2022. However, it also exemplifies how challenging it can be to ensure grid reliability. The following summer, the state’s grid manager, the Electrical Reliability Council of Texas (ERCOT), experienced ten occasions of record-breaking demand.
Despite its high energy production, Texas has had more outages than any other state over the past five years due to the increasing frequency and severity of extreme weather events and rapidly growing demand, as the outages caused by Hurricane Beryl demonstrated.
A bigger storm is brewing
Electric demand is poised to increase exponentially over the next few years. Grid planners nationwide are doubling their five-year load forecast. Texas predicts it will need to provide nearly double the amount of power within six years. These projections anticipate increasing demand from buildings, transportation, manufacturing, data centers, AI and electrification, underscoring the daunting challenges utilities face in maintaining grid reliability and managing rising demand.
However, Texas can accelerate its journey to becoming a grid reliability success story by taking two impactful steps. First, it could do more to encourage the adoption of distributed energy resources (DERs) like residential solar and battery storage to better balance the prodigious amounts of remote grid-scale renewables that have been deployed over the past decade. More DERs mean more local energy resources that can support the grid, especially local distribution circuits that are prone to storm-related outages. Second, by combining DERs with modern demand-side management programs and technology, utilities can access and leverage these additional resources to help them manage peak demand in real time and avoid blackout scenarios.
Near-term strategies and long-term priorities
Increasing electrical capacity with utility-scale renewable energy and storage projects and making necessary electrical infrastructure updates are critical to meet projected demand. However, these projects are complex, resource-intensive and take years to complete. The need for robust demand-side management is more urgent than ever.
Texas needs rapidly deployable solutions now. That’s where demand-side management comes in. This strategy enables grid operators to keep the lights on by lowering peak demand rather than burning more fossil fuels to meet it or, worse, shutting everything off.
Demand response, a demand-side management program, is vital in balancing the grid by lowering electricity demand through load control devices to ensure grid stability. Programs typically involve residential energy consumers volunteering to let the grid operator reduce their energy consumption at a planned time or when the grid is under peak load, typically in exchange for a credit on their energy bill. ERCOT, for example, implements demand responseand rate structure programs to reduce strain on the grid and plans to increase these strategies in the future, especially during the months when extreme weather events are more likely and demand is highest.
The primary solution for meeting peak demand and preventing blackouts is for the utility to turn on expensive, highly polluting, gas-powered “peaker” plants. Unfortunately, there’s a push to add more of these plants to the grid in anticipation of increasing demand. Instead of desperately burning fossil fuels, we should get more out of our existing infrastructure through demand-side management.
Optimizing existing infrastructure
The effectiveness of demand response programs depends in part on energy customers' participation. Despite the financial incentive, customers may be reluctant to participate because they don’t want to relinquish control over their AC. Grid operators also need timely energy usage data from responsive load control technology to plan and react to demand fluctuations. Traditional load control switches don’t provide these benefits.
However, intelligent residential load management technology like smart panels can modernize demand response programs and maximize their effectiveness with real-time data and unprecedented responsiveness. They can encourage customer participation with a less intrusive approach – unlocking the ability for the customer to choose from multiple appliances to enroll. They can also provide notifications for upcoming demand response events, allowing the customer to plan for the event or even opt-out by appliance. In addition to their demand response benefits, smart panels empower homeowners to optimize their home energy and unlock extended runtime for home batteries during a blackout.
Utilities and government should also encourage the adoption of distributed energy resources like rooftop solar and home batteries. These resources can be combined with residential load management technology to drastically increase the effectiveness of demand response programs, granting utilities more grid-stabilizing resources to prevent blackouts.
Solar and storage play a key role
During the ten demand records in the summer of 2023, batteries discharging in the evening helped avoid blackouts, while solar and wind generation covered more than a third of ERCOT's daytime load demand, preventing power price spikes.
Rooftop solar panels generate electricity that can be stored in battery backup systems, providing reliable energy during outages or peak demand. Smart panels extend the runtime of these batteries through automated energy optimization, ensuring critical loads are prioritized and managed efficiently.
Load management technology, like smart panels, enhances the effectiveness of DERs. In rolling blackouts, homeowners with battery storage can rely on smart panels to manage energy use, keeping essential appliances operational and extending stored energy usability. Smart panels allow utilities to effectively manage peak demand, enabling load flexibility and preventing grid overburdening. These technologies and an effective demand response strategy can help Texans optimize the existing energy capacity and infrastructure.
A more resilient energy future
Texas can turn its energy challenges into opportunities by embracing advanced energy management technologies and robust demand-side strategies. Smart panels and distributed energy resources like solar and battery storage offer a promising path to a resilient and efficient grid. As Texans navigate increasing electricity demands and extreme weather events, these innovations provide hope for a future where reliable energy is accessible to all, ensuring grid stability and enhancing the quality of life across the state.
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Kelly Warner is the CEO of Lumin, a responsive energy management solutions company.
Houston maintained its No. 3 status this year among U.S. metro areas with the most Fortune 500 headquarters. Fortune magazine tallied 26 Fortune 500 headquarters in the Houston area, behind only the New York City area (62) and the Chicago area (30).
Last year, 23 Houston-area companies landed on the Fortune 500 list. Fortune bases the list on revenue that a public or private company earns during its 2024 budget year.
On the Fortune 500 list for 2025, Spring-based ExxonMobil remained the highest-ranked company based in the Houston area as well as in Texas, sitting at No. 8 nationally. That’s down one spot from its No. 7 perch on the 2024 list. During its 2024 budget year, ExxonMobil reported revenue of $349.6 billion, up from $344.6 billion the previous year.
Here are the rankings and 2024 revenue for the 25 other Houston-area companies that made this year’s Fortune 500:
Nationally, the top five Fortune 500 companies are:
Walmart
Amazon
UnitedHealth Group
Apple
CVS Health
“The Fortune 500 is a literal roadmap to the rise and fall of markets, a reliable playbook of the world's most important regions, services, and products, and an indispensable roster of those companies' dynamic leaders,” Anastasia Nyrkovskaya, CEO of Fortune Media, said in a news release.
Among the states, Texas ranks second for the number of Fortune 500 headquarters (54), preceded by California (58) and followed by New York (53).
Three Houston companies claimed spots on LexisNexis's 10 Most Innovative Startups in Texas report, with two working in the geothermal energy space.
Sage Geosystems claimed the No. 3 spot on the list, and Fervo Energy followed closely behind at No. 5. Fintech unicorn HighRadius rounded out the list of Houston companies at No. 8.
LexisNexis Intellectual Property Solutions compiled the report. It was based on each company's Patent Asset Index, a proprietary metric from LexisNexis that identifies the strength and value of each company’s patent assets based on factors such as patent quality, geographic scope and size of the portfolio.
Houston tied with Austin, each with three companies represented on the list. Caris Life Sciences, a biotechnology company based in Dallas, claimed the top spot with a Patent Asset Index more than 5 times that of its next competitor, Apptronik, an Austin-based AI-powered humanoid robotics company.
“Texas has always been fertile ground for bold entrepreneurs, and these innovative startups carry that tradition forward with strong businesses based on outstanding patent assets,” Marco Richter, senior director of IP analytics and strategy for LexisNexis Intellectual Property Solutions, said in a release. “These companies have proven their innovation by creating the most valuable patent portfolios in a state that’s known for game-changing inventions and cutting-edge technologies.We are pleased to recognize Texas’ most innovative startups for turning their ideas into patented innovations and look forward to watching them scale, disrupt, and thrive on the foundation they’ve laid today.”
This year's list reflects a range in location and industry. Here's the full list of LexisNexis' 10 Most Innovative Startups in Texas, ranked by patent portfolios.
Fervo Energy fully contracted its flagship 500 MW geothermal development, Cape Station, this spring. Cape Station is currently one of the world’s largest enhanced geothermal systems (EGS) developments, and the station will begin to deliver electricity to the grid in 2026. The company was recently named North American Company of the Year by research and consulting firm Cleantech Group and came in at No. 6 on Time magazine and Statista’s list of America’s Top GreenTech Companies of 2025. It's now considered a unicorn, meaning its valuation as a private company has surpassed $1 billion.
Meanwhile, HighRadius announced earlier this year that it plans to release a fully autonomous finance platform for the "office of the CFO" by 2027. The company reached unicorn status in 2020.
The climate conversation is evolving — fast. It’s no longer just about emissions targets and net-zero commitments. It’s about capital, infrastructure, and execution at industrial scale.
That’s exactly where Yao Huang operates. A seasoned tech entrepreneur turned climate investor, Yao brings sharp clarity to one of the biggest challenges in climate innovation: how do we fund and scale technologies that remove carbon without relying on goodwill or government subsidies?
In this episode of the Energy Tech Startups Podcast, Yao sits down with hosts Jason Ethier and Nada Ahmed for a wide-ranging conversation that redefines how we think about decarbonization. From algae-based photobioreactors that capture CO₂ at the smokestack, to financing models that mirror real estate and infrastructure—not venture capital—Yao lays out a case for why the climate fight will be won or lost on spreadsheets, not slogans.
Her message is as bold as it is practical: this isn’t about saving the planet for the sake of it. It’s about building profitable, resilient systems that scale. And Houston, with its industrial base and project finance expertise, is exactly the place to do it.
The 40-Gigaton Challenge—and a Pandemic Pivot
Yao’s entry into climate wasn’t part of a long-term plan. It was sparked by a quiet moment during the pandemic—and a book.
Reading How to Avoid a Climate Disaster by Bill Gates, she came to two uncomfortable realizations:
The people in power don’t actually have this figured out, and
She would be alive to suffer the consequences.
That insight jolted her out of the traditional tech world and into climate action. She studied at Stanford, surrounded herself with mentors, and began diving into early-stage climate deals. But she quickly realized that most of the solutions she was seeing were still years away from commercialization.
So she narrowed her focus: no R&D moonshots, no science experiments—just deployable solutions that could scale now.
Carbon Optimum: Where Algae Meets Infrastructure
That’s how she found Carbon Optimum, a company using algae photobioreactors to remove CO₂ directly from industrial emissions. Their approach is both elegant and economic:
Install algae reactors next to major emitters like coal and cement plants.
Feed the algae with flue gas, allowing it to absorb CO₂ in a controlled system.
Harvest the algae and convert it into valuable commodities like bio-oils, fertilizer, and food ingredients.
It’s a nature-based solution, enhanced by engineering. One acre of tanks can capture emissions and generate profit—without subsidies.
“This is one of the few solutions I’ve seen that can scale profitably and quickly,” Yao says. “And we’re not inventing anything new—we’re just doing it better.”
The Real Problem? It’s Capital, Not Carbon
As an investor, Yao is blunt: most climate startups are misaligned with the capital markets.
They’re following a tech startup playbook—built for SaaS, not steel. But building climate infrastructure requires a completely different approach: project finance, blended capital, debt structures, carbon credit integration, and regulatory incentives.
“Climate tech is more like real estate or healthcare than software,” Yao explains. “You don’t raise six rounds of venture. You build a stack—grants, equity, debt, tax credits—and you structure your project like infrastructure.”
It’s not just theory. It’s exactly how Carbon Optimum is expanding—through partnerships, offtake agreements, and real-world deployments. And it’s why she believes many climate startups fail: they don’t speak the language of finance.
Houston’s Role in the Climate Capital Stack
For Yao, Houston isn’t just a backdrop—it’s a strategic asset.
The city’s deep bench of project finance professionals, commodity traders, lawyers, and infrastructure veterans makes it uniquely positioned to lead the deployment phase of climate solutions.
“We’ve been calling it the wrong thing,” she says. “This isn’t just about climate—it’s an energy transition. And Houston knows how to build energy infrastructure at scale.”
Still, she notes, the ecosystem needs to evolve. Less education, more execution. Fewer workshops, more closers.
“Houston could be the epicenter of this movement—if we activate the right people and get the right projects over the line.”
From Carbon Capture to Circular Economies
The potential applications of Carbon Optimum’s algae platform go beyond carbon capture. Because the output—algae biomass—can be converted into:
Renewable oil
High-efficiency fertilizers (critical in today’s geopolitically fragile supply chains)
Food ingredients rich in protein and nutrients
Even biochar, a highly stable form of carbon sequestration
It’s scalable, modular, and location-agnostic. In island nations, Yao notes, these systems can offer energy independence by turning waste CO₂ into local energy and fertilizer—without needing to import fuels or food.
“It’s not just emissions reduction. It’s economic sovereignty through circular systems.”
Doing, Not Just Talking
One of Yao’s key takeaways for founders? Don’t waste time. Climate startups don’t have the luxury of trial-and-error cycles stretched over years.
“Founders need to get real about what it takes to scale: talent, capital, storytelling, partnerships. If you’re not ready to do that, maybe you should be a CSO, not a CEO.”
She also points out that founders don’t need to hire everyone—they need to tap the right networks. And in cities like Houston, those networks exist—if you know how to motivate them.
“It takes a different kind of leadership. You’re not just raising money—you’re moving people.”
Why This Episode Matters
This conversation is for anyone who’s serious about scaling real solutions to the climate crisis. Whether you’re a founder navigating capital markets, an investor seeking return and impact, or a policymaker designing the frameworks — Yao Huang offers a grounded, urgent, and actionable perspective.
It’s not about hope. It’s about execution.
Listen to the full episode of the Energy Tech Startups Podcast with Yao Huang:
-- Hosted by Jason Ethier and Nada Ahmed, the Digital Wildcatters’ podcast, Energy Tech Startups, delves into Houston's pivotal role in the energy transition, spotlighting entrepreneurs and industry leaders shaping a low-carbon future.
