Houston-based Quidnet Energy has again secured funding from the DOE. Image via quidnetenergy.com

Earlier this month, the U.S. Department of Energy announced another $13 million in funding to seven projects that are developing hydropower as a clean energy source. A Houston startup made the list of recipients.

“For more than a century, Americans have harnessed the power of water to electrify our communities, and it’s a critical renewable energy source that will help us reach our climate goals,” U.S. Secretary of Energy Jennifer M. Granholm says in a news release. “President Biden’s Investing in America agenda will help to expand the use of hydropower, increasing access to affordable, clean power and creating good-paying jobs.”

Houston-based Quidnet Energy Inc. received a little over $2 million for its project, entitled "Energy Storage Systems for Overpressure Environments," which is taking place in East Texas. The company, founded in 2013, is using water storage to power carbon-free electric grid approach to energy. As the DOE notes, the "low-cost form of long-duration electricity storage uses existing wellbores, which offers an opportunity to repurpose legacy oil and gas assets," per the release.

It's not the first Quidnet has secured funding from the DOE. Last fall, the company earned a $10 million grant from the organization's Advanced Research Projects Agency-Energy, or ARPA-E, program. Quidnet is also venture backed, with its most recent raise, a $10 million series B round, closing in 2020 and including participation from Bill Gates-backed Breakthrough Energy Ventures and Canada-based Evok Innovations.

The DOE's other PSH, or pumped storage hydropower, grants were announced as follows.

  • The Electric Power Research Institute, based in Palo Alto, California, secured $2.3 million to test "a turbine/generator system designed to add power-generating infrastructure to non-powered dams" in Iowa, per the release.
  • Atlanta-based Emrgy received $1.6 million to "develop a turbine to generate hydropower at non-powered dams where the water drop is less than 30 feet or in low-flow conduits, such as existing irrigation canals," in Washington.
  • Another Atlanta company, Georgia Power Co. is getting just under $2.9 million to develop and deploy PSH facilities across the country with its utility-scale solution to retrofit traditional hydropower facilities to serve as PSH facilities. The site the company will demonstrate it's tech is in Salem, Alabama.
  • RCAM Technologies, based in Boulder, Colorado, will work on offshore PSH technology in San Pedro, California, with its $4 million grant.
  • Drops for Watts received $243,540 to "develop a low-impact, modular system to generate hydropower from existing irrigation infrastructure" in Sagle, Idaho.
  • In Atlanta, Turbine Logic will use its nearly $200,000 in funding to utilize digital twin technology "to better predict common maintenance needs in hydropower turbines."
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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Houston startup strikes deal to develop hydrogen production plant in Canada

hydrogen partnership

Houston-based cleantech startup Vema Hydrogen has reached a tentative agreement with Canada-based CHARBONE Corp. to develop a hydrogen production and processing plant in Québec.

The deal would couple Vema’s production of engineered mineral hydrogen with CHARBONE’s purification, compression and distribution capabilities.

Engineered mineral hydrogen, also known as orange hydrogen, is produced underground by accelerating naturally occurring geochemical reactions in iron-rich rock formations, according to the journal Energy & Environmental Science.

“Across high-value markets — from aviation and maritime fuels to industrial gases — there is incredible demand for Vema’s low-carbon [hydrogen]. Now, more than ever, we need a pathway to deliver these low-carbon fuels,” Pierre Levin, CEO of Vema, said in a news release.

The project would enable Vema to expand into emerging markets like low-carbon maritime and aviation fuel, e-fuels and power generation. Incorporating CHARBONE’s capabilities, the agreement would also support Québec’s hydrogen supply chain.

“The market is demanding high-value industrial gases, and our customers need cleaner, more reliable supply. By pairing Vema’s [hydrogen] feedstock with our purification and distribution capabilities, we’re strengthening Québec’s position as a regional hub for next-generation hydrogen,” Dave Gagnon, CEO of CHARBONE, added in the release.

Vema said in February that it had completed drilling of its first two pilot wells in Québec, making them the world’s first pilot well for orange hydrogen. It’s the first time Vema’s technology has been used outside a lab.

“This pilot will provide the critical data needed to validate [our hydrogen] at commercial scale and demonstrate that Quebec can lead the world in this emerging clean energy category,” Levin said. “The quality of the rock within our core samples is exactly what we expected and is very promising for hydrogen yields.”

Shortly before Vema carried out the pilot drilling, it signed a 10-year deal with California-based energy technology company Verne Power to supply clean hydrogen for California data centers. Over the course of the 10-year agreement, Vema will boost annual production of orange hydrogen to more than 36,000 metric tons.

“There is a robust market for baseload power generation across the U.S., where data centers are straining the grid,” Levin said. “As we power California’s fastest-growing markets with clean hydrogen, we look toward expanding our hydrogen to markets globally and supporting AI-driven power hubs.”

Vema, founded two years ago, raised $13 million in seed funding in 2025.

“The energy transition and emerging uses of hydrogen have spurred demand for clean hydrogen,” Levin said in its funding announcement. “However, existing decarbonized hydrogen production methods simply don’t work — they are too costly and energy-intensive. Vema is here to change that. It’s time to unlock a new era of scalable, low-carbon hydrogen.”

Greentown names 5 climatech startups to manufacturing accelerator

Catalyst Cohort

Greentown Labs has named five climatech startups to its Go Make 2026 cohort, including one from Houston.

Greentown Go Make 2026 is in partnership with Shell Catalysts & Technologies and Technip Energies. Startups will be able to collaborate with leadership from Shell and Technip and have opportunities to work directly with their process engineering teams and develop potential partnerships, pilots and demonstrations, according to Greentown.

This year's manufacturing cohort focuses specifically on process technology and catalytic innovations, which, according to Greentown, have the potential to be a "critical enabler of the global energy transition." Greentown shares that 90 percent of chemical processes depend on catalysis, but traditional methods rely on fossil fuels and consume significant amounts of energy.

“Catalysis underpins the majority of industrial chemical processes, which together account for a significant share of global emissions, making it a critical lever for reducing carbon intensity while improving performance,” Georgina Campbell Flatter, CEO of Greentown, said in a news release. “Greentown Go Make 2026 is designed to close the gap between breakthrough innovation and industrial deployment. By connecting startups with Shell and Technip Energies’ technical expertise and global scale, we’re helping accelerate solutions that improve efficiency and drive industrial decarbonization.”

The five Greentown Go Make 2026 companies include:

  • Houston-based Biosimo, which makes scalable biochemicals from ethanol
  • Missouri-based Catalyxx, which transforms bioethanol into drop-in, cost-competitive, carbon-negative chemicals
  • Sydney, Australia-based HydGene Renewables, which produces low-carbon hydrogen and industrial chemicals from waste biomass
  • Switzerland-based TreaTech, which turns waste into renewable gas, water and minerals through catalytic hydrothermal gasification
  • California-based Unifuel, which has developed a chemical technology platform to make sustainable aviation fuel, renewable gasoline and other renewable chemicals

The cohort will be celebrated at a kickoff event in Houston at The Ion on June 9.

In addition to Greentown Go Make, Greentown also runs its Go Move (transportation), Go Energize (energy and electricity), Go Build (buildings), and Go Grow (food and agriculture) cohort-based programs. The climatech incubator announced its Go Build 2026 cohort in March. Read more here.