Houston mobile hydrogen generator company gets PE backing to expand its business

fueling the future

The company, based in Tomball, has developed a mobile, scalable energy source that can be used anywhere, anytime. Image via kaizencleanenergy.com

An innovative Houston-area company is on a mission to make using hydrogen energy easier and cheaper.

A recently announced partnership with investment firm, Balcor Companies, will help make this a reality as Kaizen Clean Energy looks to make hydrogen energy more accessible, reliable and affordable. Announced July 6, Balcor now has an ownership stake in Kaizen. The terms of the deal were not disclosed.

The company, based in Tomball, has developed a “micro grid” hydrogen power station — a mobile, scalable energy source that can be used anywhere, anytime.

Balcor Companies Founder and Director Chris Balat says his company is looking at their stake in KCE as an investment in shaping a more sustainable world.

“We are thrilled to make our first foray into the energy sector with Kaizen Energy as our trusted partner,” he says in a statement. "Our association with Kaizen is a testament to our commitment towards a sustainable future, driving positive change in the world while delivering value to our stakeholders.”

Kaizen's mission is to succeed where electric grids fail. One fallback source to help strained electric grids has typically been diesel generators. However, diesel generators increase local emissions which produce a significant amount of air pollution and health concerns. Kaizen’s hydrogen generators can be used to power buildings, homes, hospitals, data centers, events, and farm equipment. They are portable, which means it does not require any excessive infrastructure.

“Our system allows customers the ability to have renewable energy anywhere in the world in a very short time frame,” said Eric Smith, co-founder of KCE. “For EV charging, for power generation, to replace a diesel generator.”

Smith tells EnergyCapitalhtx the concept is very attractive to corporations who lease buildings as building out a permanent infrastructure could be costly and time consuming.

Robert Meaney, a Texas Tech engineering graduate, founded Kaizen Clean Energy in 2020, along with Eric Smith and Craig Klaasmeyer. Meaney designed the technology using a mixture of methanol and water to create hydrogen. A 330-gallon tank of the mixture produces about 150 kilograms of hydrogen — or 1.6 megawatt-hours of energy. The mixture lowers the risks of many of the drawbacks of hydrogen usage. For example, it can be stored for longer periods and transported long distances safely.

The microgrid fits into a small container and can be dropped on site at remote locations or in heavily congested grid areas. It also eliminates the cost of hydrogen transportation by generating hydrogen on-site with commonly available methanol, which can be both used for hydrogen fuel and converted to electricity for electric vehicle charging. This microgrid technology can both connect to the grid to supplement available power, or can be used during a power outage.

To put this energy source to use, KCE has partnered with Extreme E, an international off-road racing series that is part of Formula 1 and uses electric SUV’s to race in remote parts of the world. Kaizen’s units are also being used at a fleet-charging location in Los Angeles.

Oceanit's lab, H2XCEL — short for “Hydrogen Accelerator” — aims to integrate hydrogen into the current energy infrastructure, a serious cost-saver for companies looking to make the energy transition. Photo via Getty Images

New lab opens in Houston to help make pipelines safer for hydrogen transport

HOU-DRYGEN

An innovative Hawaii-based technology company is saying aloha to Houston with the opening of a unique test laboratory that aims to increase hydrogen pipeline safety. It is the latest sign that Houston is at the forefront of the movement to hydrogen energy.

The lab, H2XCEL — short for “Hydrogen Accelerator” — aims to integrate hydrogen into the current energy infrastructure, a serious cost-saver for companies looking to make the energy transition. Oceanit, a Honolulu-based technology company, is behind the lab.

H2XCEL will be the only lab in the U.S. capable of testing hydrogen and methane mixtures at high temperatures and pressures. Its aim is to protect pipelines from hydrogen embrittlement — when small hydrogen molecules penetrate pipe walls and damage the metal, potentially causing cracks, leaks, and failures.

The lab uses Oceanit’s HydroPel pipeline nanotechnology, developed with the support of the U.S. Department of Energy. Photo courtesy of Oceanit

“The launch of this testing facility is a major milestone. It is the only lab of its kind in the U.S. and the work underway at H2XCEL will accelerate the transition toward a hydrogen-driven economy,” Patrick Sullivan, the CEO and founder of Oceanit, says in a news release. “We see a toolset emerging that will enable the U.S. to accelerate toward a low-carbon future.”

Houston was the obvious choice to launch the new lab, says Oceanit’s Direct of Marketing James Andrews.

“Houston is the energy capital of the world," Andrews explains. "Oceanit knew that if we wanted to make inroads with decarbonization technologies, we needed to be physically present there.”

H2XCEL uses Oceanit’s HydroPel pipeline nanotechnology, developed with the support of the U.S. Department of Energy. It is a surface treatment that protects metals, eliminating the need to build new pipelines using expensive, hydrogen-resistant metals. The estimated cost of building new hydrogen pipelines is approximately $4.65 million per mile, according to a press release from the company. In contrast, HydroPel can be applied to existing pipelines to prevent damage, and the cost to refurbish one mile of existing steel pipeline is less than 10 percent of the cost per mile for new pipeline construction.

One of the main objectives of the new Houston lab will be to test hydrogen-methane blends under varying conditions to determine how to use HydroPel safely. By enabling the energy sector to reduce its climate impact while continuing to provide energy using existing infrastructure, methane-hydrogen blends capitalize on hydrogen’s carbon-free energy potential and its positive impact on climate change.

“We want to create a situation where we can speed up energy transition,” says Andrews. “By blending it into a safer environment, we can make it attractive to bigger players.”

Oceanit already has a Houston presence where the team is focused on several other technologies related to hydrogen, including HeatX, a water-based technology for heat transfer surfaces in refineries, power plants, and more, as well as their HALO system, which utilizes directed energy to produce clean hydrogen wastewater and other waste byproducts produced in industrial businesses.

A recent report issued by Rice University’s Baker Institute for Public Policy about the hydrogen economy

in Texas insists that the Lone Star State is an ideal hub for hydrogen as an energy source. The report explains that with the state’s existing oil and gas infrastructure, Texas is the best spot to affordably develop hydrogen while managing economic challenges. The Houston region already produces and consumes a third of the nation’s hydrogen, according to the report, and has more than 50 percent of the country’s dedicated hydrogen pipelines.

Energy sources are often categorized as renewable or not, but perhaps a more accurate classification focuses on the type of reaction that converts energy into useful matter. Photo by simpson33/Getty Images

How is energy produced?

ENERGY 101

Many think of the Energy Industry as a dichotomy–old vs. new, renewable vs. nonrenewable, good vs. bad. But like most things, energy comes from an array of sources, and each kind has its own unique benefits and challenges. Understanding the multi-faceted identity of currently available energy sources creates an environment in which new ideas for cleaner and more sustainable energy sourcing can proliferate.

At a high level, energy can be broadly categorized by the process of extracting and converting it into a useful form.

Energy Produced from Chemical Reaction

Energy derived from coal, crude oil, natural gas, and biomass is primarily produced as a result of bonds breaking during a chemical reaction. When heated, burned, or fermented, organic matter releases energy, which is converted into mechanical or electrical energy.

These sources can be stored, distributed, and shared relatively easily and do not have to be converted immediately for power consumption. However, the resulting chemical reaction produces environmentally harmful waste products.

Though the processes to extract these organic sources of energy have been refined for many years to achieve reliable and cheap energy, they can be risky and are perceived as invasive to mother nature.

According to the 2022 bp Statistical Review of World Energy, approximately 50% of the world’s energy consumption comes from petroleum and natural gas; another 25% from coal. Though there was a small decline in demand for oil from 2019 to 2021, the overall demand for fossil fuels remained unchanged during the same time frame, mostly due to the increase in natural gas and coal consumption.

Energy Produced from Mechanical Reaction

Energy captured from the earth’s heat or the movement of wind and water results from the mechanical processes enabled by the turning of turbines in source-rich environments. These turbines spin to produce electricity inside a generator.

Solar energy does not require the use of a generator but produces electricity due to the release of electrons from the semiconducting materials found on a solar panel. The electricity produced by geothermal, wind, solar, and hydropower is then converted from direct current to alternating current electricity.

Electricity is most useful for immediate consumption, as storage requires the use of batteries–a process that turns electrical energy into chemical energy that can then be accessed in much the same way that coal, crude oil, natural gas, and biomass produce energy.

Energy Produced from a Combination of Reactions

Hydrogen energy comes from a unique blend of both electrical and chemical energy processes. Despite hydrogen being the most abundant element on earth, it is rarely found on its own, requiring a two-step process to extract and convert energy into a usable form. Hydrogen is primarily produced as a by-product of fossil fuels, with its own set of emissions challenges related to separating the hydrogen from the hydrocarbons.

Many use electrolysis to separate hydrogen from other elements before performing a chemical reaction to create electrical energy inside of a contained fuel cell. The electrolysis process is certainly a more environmentally-friendly solution, but there are still great risks with hydrogen energy–it is highly flammable, and its general energy output is less than that of other electricity-generating methods.

Energy Produced from Nuclear Reaction

Finally, energy originating from the splitting of an atom’s nucleus, mostly through nuclear fission, is yet another way to produce energy. A large volume of heat is released when an atom is bombarded by neutrons in a nuclear power plant, which is then converted to electrical energy.

This process also produces a particularly sensitive by-product known as radiation, and with it, radioactive waste. The proper handling of radiation and radioactive waste is of utmost concern, as its effects can be incredibly damaging to the environment surrounding a nuclear power plant.

Nuclear fission produces minimal carbon, so nuclear energy is oft considered environmentally safe–as long as strict protocols are followed to ensure proper storage and disposal of radiation and radioactive waste.

Nuclear to Mechanical to Chemical?

Interestingly enough, the Earth’s heat comes from the decay of radioactive materials in the Earth’s core, loosely linking nuclear power production back to geothermal energy production.

It’s also clear the conversion of energy into electricity is the cleanest option for the environment, yet adequate infrastructure remains limited in supply and accessibility. If not consumed immediately as electricity, energy is thus converted into a chemical form for the convenience of storage and distribution it provides.

Perhaps the expertise and talent of Houstonians serving the flourishing academic and industrial sectors of energy development will soon resolve many of our current energy challenges by exploring further the circular dynamic of the energy environment. Be sure to check out our Events Page to find the networking event that best serves your interest in the Energy Transition.

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Lindsey Ferrell is a contributing writer to EnergyCapitalHTX and founder of Guerrella & Co.

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Greentown to add new Houston AI lab from latest Houston partner

AI partnership

Greentown Labs has partnered with Shoreless to launch an AI lab within its Houston climatetech incubator.

"Climatetech and energy startups are transforming industries, and AI is a critical tool in that journey," Lawson Gow, Greentown's Head of Houston, said in a news release. "We're excited to bring this new offering to our entrepreneurs and corporate partners to enhance the way they think about reducing costs and emissions across the value chain."

Shoreless, a Houston-based company that enables AI adoption for enterprise systems, will support startups developing solutions for supply-chain optimization and decarbonization. They will offer Greentown members climate sprint sessions that will deliver AI-driven insights to assist companies in reducing Scope 3 emissions, driving new revenue streams and lowering expenses. Additionally, the lab will help companies test their ideas before attempting to scale them globally.

"The future of climatetech is intertwined with the future of AI," Ken Myers, Founder and CEO of Shoreless, said in a news release."By launching this AI lab with Greentown Labs, we are creating a collaborative ecosystem where innovation can flourish. Our agentic AI is designed to help companies make a real difference, and we are excited to see the groundbreaking solutions that will emerge from this partnership."

Greentown and Shoreless will collaborate on workshops that address industry needs for technical teams, and Shoreless will also work to provide engagement opportunities and tailored workshops for Greentown’s startups and residents. Interested companies can inquire here.

Recently, Greentown Labs also partnered with Los Angeles-based software development firm Nominal to launch the new Industrial Center of Excellence at Greentown's Houston incubator. It also announced a partnership with Houston-based EnergyTech Nexus, which will also open an investor lounge on-site last month. Read more here.

UH lands $8M in federal funding for fusion energy research

fusion funding

The University of Houston will receive $8 million in federal funding from the U.S. Department of Energy for its work on fusion technology to help power data centers and medical work.

Venkat Selvamanickam, professor at UH’s Cullen College of Mechanical and Aerospace Engineering and director of the Advanced Manufacturing Institute, has been tasked to lead the research on superconducting magnets that he said will make compact fusion reactors possible.

“Beyond fusion, superconductors can transform how we deliver power to data centers, enable highly efficient motors and generators and improve electric power devices,” Selvamanickam said in a news release. “They also enable critical applications such as MRI and proton beam therapy for cancer treatment. I want society to experience the broad benefits this remarkable technology can provide.”

UH is one of 23 institutions selected to share part of $134 million from the DOE’s Fusion Energy Sciences division. The total funding is split across two initiatives: $128 million for the Fusion Innovation Research Engine (FIRE) and $6.1 million for the Innovation Network for Fusion Energy program, according to the university.

UH will partner with the FIRE Collaborative for the research, which looks to understand why superconducting magnets in fusion reactors break down and work on developing solutions to make them more resilient.

“The advantage of fusion is it’s clean and it does not require storage. Solar energy can’t be used at night, and wind energy depends on wind conditions,” Selvamanickam added in the release. “Our goal is to make fusion a truly viable energy source.”

Energy expert on Houston's advantage: Building affordability and reliability for all

Guest Column

As the energy capital of the world, Houston has been at the forefront of innovation, powering industries and communities for generations. Many Houston families, however, are facing a reality that undermines our leadership: high energy bills and ongoing concerns about grid reliability.

Affordability and reliability are not just technical issues; they’re equity issues. To remain the world leader in energy, we must ensure that every household has access to affordable and dependable power.

Affordability: The First Step Toward Equity

According to the recent 2025 study by The Texas Energy Poverty Research Institute, nearly 80% of low- to moderate-income Houstonians scaled back on basic needs to cover electric bills. Rising costs mean some Houstonians are forced to choose between paying their utility bill or paying for groceries.

Additionally, Houston now has the highest poverty rate among America’s most populous cities. Energy should not be a privilege for only half of our city’s population. That’s why affordability needs to be at the center of Houston’s energy conversation.

Several practical solutions exist to help address this inequity:

We can increase transparency in electricity pricing and help families better understand their electricity facts labels to make smarter choices.
We can expand energy efficiency programs, like weatherizing homes and apartments, swapping out old light bulbs for LEDs, and adopting smart thermostats.
Incentives to help families invest in these changes can deliver long-term benefits for both them and apartment complex owners.

Many small changes, when combined, can add up to significant savings for families while reducing overall demand on the grid.

Reliability: A Shared Community Priority

The memories of Hurricane Beryl, Derecho, and Winter Storm Uri are still fresh in the minds of Texans. We saw firsthand the fragility of our grid and how devastating outages are to families, especially those without resources to handle extreme weather. Reliability of the grid is an issue of public health, economic stability, and community safety.

Houston has an opportunity to lead by embracing innovation. Grid modernization, from deploying microgrids to expanding battery storage, can provide stability when the system is under stress. Partnerships between utilities, businesses, and community organizations are key to building resilience. With Houston’s innovation ecosystem, we can pilot solutions here that other regions will look to replicate.

Energy Equity in Action

Reliable, affordable energy strengthens equity in tangible ways. When households spend less on utilities, they have more to invest in their children’s education or save for the future. When power is stable, schools remain open, businesses continue to operate, and communities thrive. Extending energy efficiency programs across all neighborhoods creates a fairer, more balanced system, breaking down inequities tied to income and geography.

Studies show that expanding urban green spaces such as community gardens and tree-planting programs can lower neighborhood temperatures, reduce energy use for cooling, and improve air quality in disadvantaged areas, directly reducing household utility burdens.

In Houston, for example, the median energy burden for low-income households is 7.1% of income, more than twice that of the general population, with over 20% of households having energy burdens above 6%.

Research also demonstrates that community solar programs and urban cooling investments deliver clean, affordable power, helping to mitigate heat stress and making them high-impact strategies for energy equity and climate resilience in vulnerable neighborhoods.

Public-Private Partnerships Make the Difference

The solutions to affordability and reliability challenges must come from cross-sector collaboration. For example, CenterPoint Energy offers incentives through its Residential and Hard-to-Reach Programs, which support contractors and community agencies in delivering energy efficiency upgrades, including weatherization, to low-income households in the greater Houston area.

Nonprofits like the Houston Advanced Research Center (HARC) received a $1.9 million Department of Energy grant to lead a weatherization program tailored for underserved communities in Harris County, helping to lower bills and improve housing safety

Meanwhile, the City of Houston’s Green Office Challenge and Better Buildings Initiative bring private-sector sponsors, nonprofits, and city leadership together to drive energy reductions across millions of square feet of commercial buildings, backed by training and financial incentives. Together, these partnerships can result in real impact that brings more equity and access to affordable energy.

BKV Energy is committed to being part of the solution by promoting practical, consumer-focused strategies that help families save money and use energy more efficiently. We offer a suite of programs designed to provide customers with financial benefits and alleviate the burden of rising electricity bills. Programs like BKV Energy’s demonstrate how utilities can ease financial strain for families while building stronger customer loyalty and trust. Expanding similar initiatives across Houston would not only lower household energy burdens but also set a new standard for how energy companies can invest directly in their communities.

By proactively addressing affordability, energy companies can help ensure that rising costs don’t disproportionately impact vulnerable households. These efforts also contribute to a more resilient and equitable energy future for Houston, where all residents can access reliable power without sacrificing financial stability.

Houston as a Blueprint

Houston has always been a city of leadership and innovation, whether pioneering the space race, driving advancements in medical research at the Texas Medical Center, or anchoring the global energy industry. Today, our challenge is just as urgent: affordability and reliability must become the cornerstones of our energy future. Houston has the expertise and the collaborative spirit to show how it can be done.

By scaling innovative solutions, Houston can make energy more equitable, strengthening our own community while setting a blueprint for the nation. As the energy capital of the world, it is both our responsibility and our opportunity to lead the way to a more equitable future for all.

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Sam Luna is director at BKV Energy, where he oversees brand and go-to-market strategy, customer experience, marketing execution, and more.

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