Houston industrial decarbonization-focused PE firm scores $725M to launch new business unit

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HF Capital, the Knoxville, Tennessee-based investment arm of the Haslam family, made the multimillion-dollar commitment to set up Ara Energy Decarbonization. Photo via arapartners.com

Houston-based Ara Partners, a private equity firm that focuses on industrial decarbonization investments, is receiving up to $725 million from a Tennessee-based family office to launch an energy decarbonization unit.

HF Capital, the Knoxville, Tennessee-based investment arm of the Haslam family, made the multimillion-dollar commitment to set up Ara Energy Decarbonization. The new business will work toward reducing carbon emissions at ethanol plants, natural gas power plants, and other traditional energy assets.

The Haslam family founded Pilot Co., North America’s largest transportation fuel business and chain of travel centers. Shameek Konar, former CEO of Pilot, has been tapped to lead Ara Energy Decarbonization.

“It is an uncomfortable truth that highly pollutive energy sources are going to play an essential role in delivering an energy transition over the next several decades,” Charles Cherington, co-founder and managing partner of Ara, says in a news release. “We can ignore these staggering carbon emissions, or we can apply our proven methods and financing expertise to decarbonize the conventional energy value chain.”

The energy sector accounts for more than 75 percent of global greenhouse gas emissions.

“The world’s energy demands are increasing and complex, and renewable power needs time and support for it to fulfill rising global energy demand. Ara’s … skillset, portfolio network, and decarbonization management knowledge [are] perfectly positioned to attack the carbon-intensive energy sector,” Konar says.

Ara Partners closed its third private equity fund in December 2023 with over $2.8 billion in new commitments. As of June 30, 2024, Ara Partners had about $6.3 billion of assets under management.

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Recently, two HETI members announced acquisition and investment into carbon capture businesses. Photo via htxenergytransition.org

2 Houston energy leaders bet on carbon capture with recent acquisitions

the view from heti

CCUS will play a pivotal role in the global energy transition by decarbonizing carbon-intensive industries, including energy, chemicals, cement, and steel. CCUS is one of the few proven technologies to significantly lower net emissions. However, the unique nature of decarbonization presents many complex challenges. With greater funding and growing policy support, the widespread adoption of CCUS technologies is becoming more technically feasible and economically viable than ever before.

Houston, with its existing CCUS infrastructure, large concentration of CCUS expertise, and high storage capacity, is the ideal location to deploy and derisk CCUS projects at unprecedented speed and scale. Recently, two HETI members announced acquisition and investment into carbon capture businesses.

SLB + Aker Carbon Capture (ACC)

SLB, a pioneer in carbon capture technologies, announced an agreement to acquire major ownership in Aker Carbon Capture (ACC), a pure-play carbon capture company. The move combines SLB’s established CCUS business with ACC’s innovative CCUS technology to support accelerated industrial decarbonization at scale.

“For CCUS to have the expected impact on supporting global net-zero ambitions, it will need to scale up 100-200 times in less than three decades,” said Olivier Le Peuch, chief executive officer, SLB. “Crucial to this scale-up is the ability to lower capture costs, which often represent as much as 50-70% of the total spend of a CCUS project. We are excited to create this business with ACC to accelerate the deployment of carbon capture technologies that will shift the economics of carbon capture across high-emitting industrial sectors.”

Chevron New Energies + ION Clean Energy

Chevron New Energies, a division of Chevron U.S.A. Inc., announced a lead investment in ION Clean Energy (ION), which provides post-combustion point-source capture technology through its third-generation ICE-31 liquid amine system. This investment expands and complements Chevron’s growing portfolio of CCUS technologies.

“ION’s solvent technology, combined with Chevron’s assets and capabilities, has the potential to reach numerous emitters and support our ambitions of a lower carbon future,” said Chris Powers, vice president of CCUS & Emerging, Chevron New Energies. “We believe collaborations like this are essential to our efforts to grow carbon capture on a global scale.”

“This investment from Chevron is a huge testament to the hard work of our team and the potential of our technology,” said ION founder and executive chairman Buz Brown. “We appreciate their collaboration and with their investment we expect to accelerate commercial deployment of our technology so that we can realize the kind of wide-ranging commercial and environmental impact we’ve long envisioned.”

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This article originally ran on the Greater Houston Partnership's Houston Energy Transition Initiative blog. HETI exists to support Houston's future as an energy leader. For more information about the Houston Energy Transition Initiative, EnergyCapitalHTX's presenting sponsor, visit htxenergytransition.org.

Two startups have recently announced support from Houston-based Chevron Technology Ventures. Photo via Getty Images

Chevron supports 2 carbon emissions tech startups

making moves

Chevron Technology Ventures has added two startups to its portfolio — one to its startup accelerator and one via an investment.

Delaware-based Compact Membrane Systems closed an oversubscribed series A funding round of $16.5 million led by Pangaea Ventures. CTV also contributed to the round, along with GC Ventures, Solvay Ventures, and Technip Energies.

CMS's technology is targeting carbon capture in traditionally hard-to-abate sectors, such as steel, cement, etc., which represent more than a tenth of worldwide emissions. The CMS platform, which operates in a 10,000-square-foot lab and manufacturing facility in Delaware, is a fully electrified and low-cost solution.

“We are delighted to have secured such a strong group of investors who share our vision for delivering a revolutionary carbon capture technology for industrial applications,” says Erica Nemser, CEO of Compact Membrane Systems, in a news release. “This oversubscribed funding round catalyzes our ability to deliver large projects. Deployment of our commercial systems by 2026 will have measurable environmental and economic benefits to our customers and society.”

It's the latest investment from CTV's $300 million Future Energy Fund II, which specifically "focuses on industrial decarbonization, emerging mobility, energy decentralization, and the growing circular economy," says Jim Gable, vice president of innovation at Chevron and president of CTV.

“The technology that CMS has developed has the potential to drive further efficiencies and cost reduction along the CCUS value chain, supporting decarbonization of hard-to-abate sectors and complementing our existing portfolio of investments in this space,” Gable says in the release.

The company is planning to use its new funding to further develop and commercialize its product by 2026.

Another startup has announced support from Chevron last month. Calgary, Alberta-based Arolytics Inc. announced last month that its been accepted into CTV's Catalyst Program. The company has an emissions software and data analytics platform for the oil and gas sector, and the program will help it further develop and deploy its technology.

"Being selected for the Catalyst Program is an amazing opportunity for Arolytics," says Liz O'Connell, CEO of Arolytics, in a news release. "The interest from Chevron demonstrates the oil and gas industry's desire to reduce emissions. It aligns closely with Arolytics' mission to build and execute efficient emissions management programs that enable industry to become leaders in emissions management."

Arolytics' technology, which includes AroViz, an emissions management software, and AroFEMP, an emissions forecasting model, targets methane emissions specifically, per the release.

Launched in 2017, the CTV Catalyst Program accelerates early-stage companies that are working on innovations within the energy industry. Arolytics will use the program to make key connections, identify important use cases, and expand into the U.S. Market.

Gautam Phanse of Chevron Technology Ventures answers questions about this unique program. Photo courtesy

Q&A: Chevron's unique clean energy studio role in Houston entrepreneur community

matchmaking innovation

A new program from Houston-based Chevron Technology Ventures is rethinking how best to commercialize research-based technology.

This spring, Chevron Studio announced its second cohort of its program that matches entrepreneurs with promising technologies coming out of universities and labs. The overall goal of the studio — a collaboration between Chevron and the National Renewable Energy Laboratory, or NREL — is to scale up and commercialize early-stage technologies that have the potential to impact the future of energy.

Once selected, there are three phases of the program. After the entrepreneur applications closed in March, the first step was matching the selected entrepreneurs with the inventors of the selected intellectual properties, which will occurs over three to four months. The next phase includes scaling up the product — something that will take one to two years, depending on the tech. The last step would be a trial or a pilot program that includes rolling out a minimum viable product at commercial scale at Chevron or an affiliate. The next cohort application period will open next month.

Gautam Phanse is the strategic relationship manager for Chevron Technology Ventures. He joins InnovationMap for a Q&A to explain more about the opportunity.

What types of technologies is Chevron looking to bring into commercialization through this program? How is the program different from existing accelerators/incubators/etc.?

Gautam Phanse: Chevron Technology Ventures brings external innovation to Chevron. Key focus areas for CTV are industrial decarbonization, emerging mobility, energy decentralization, and the growing circular carbon economy. Chevron Studio is one of the tools to achieve this goal. The current focus areas for Chevron Studio are: carbon utilization, hydrogen and renewable energy, energy storage systems, and solutions for circular economy. These focus areas will be reviewed every year and additional areas could be brought into the mix.

The goal of Chevron Studio is to scale up and commercialize technology developed in the Universities and National Labs. We curate the intellectual property developed at universities and national labs and provide a platform to match entrepreneurs with the IP. The program provides seed funding and a pathway through incubation, pilot and field trials to scale up the technologies. The uniqueness of this program is its target and the breadth of its scope — all the way from incubation to field trials.

How does Chevron Technology Ventures and the National Renewable Energy Laboratory collaborate on this project? What role does each entity play?

GP: CTV has a long history of supporting innovation and the startup community. And over the years we’ve seen the consistent gaps and the struggles that the startup companies have in scaling up technologies. We also have a long history of working with national labs and universities and have seen the challenges in getting these technologies out of the labs. The idea for Chevron Studio grew out of these challenges.

NREL’s Innovation and Entrepreneurship Center manages Chevron Studio, working closing with entrepreneurs and guiding them through the program while leveraging capabilities at the lab and activating the IEC’s network of cleantech startups, investors, foundations, and industry partners.

What are you looking for from the entrepreneur applicants? Who should apply?

GP: We are looking for entrepreneurs who are seeking their next opportunity. They should have a passion in lower carbon solutions and the patience to work on early-stage technologies to see them through scale up and commercialization. Aspiring entrepreneurs with demonstrated passion are also welcome to apply. The entrepreneurs are expected to build a team, raise funds and grow the business providing competitive solutions to the industry.

Tell me about cohort 1. How did it go and what were the participants able to accomplish?

GP: We were really excited about the response we got from both the entrepreneur community and the universities and national labs. We had a strong pool of entrepreneurs and a great mix of IP and frankly had a tough time making the selection. The first cohort had four entrepreneurs in the initial discovery phase. Some of them have now graduated, and we will be announcing the participants in the next phase — for scaling up — shortly.

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This conversation has been edited for brevity and clarity. This article originally ran on InnovationMap.

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Report: Texas solar power, battery storage helped stabilize grid in summer 2024, but challenges remain

by the numbers

Research from the Federal Reserve Bank of Dallas shows that solar power and battery storage capacity helped stabilize Texas’ electric grid last summer.

Between June 1 and Aug. 31, solar power met nearly 25 percent of midday electricity demand within the Electric Reliability Council of Texas (ERCOT) power grid. Rising solar and battery output in ERCOT assisted Texans during a summer of triple-digit heat and record load demands, but the report fears that the state’s power load will be “pushed to its limits” soon.

The report examined how the grid performed during more demanding hours. At peak times, between 11 a.m. and 2 p.m. in the summer of 2024, solar output averaged nearly 17,000 megawatts compared with 12,000 megawatts during those hours in the previous year. Between 6 p.m. and 9 p.m., discharge from battery facilities averaged 714 megawatts in 2024 after averaging 238 megawatts for those hours in 2023. Solar and battery output have continued to grow since then, according to the report.

“Batteries made a meaningful contribution to what those shoulder periods look like and how much scarcity we get into during these peak events,” ERCOT CEO Pablo Vegas said at a board of directors conference call.

Increases in capacity from solar and battery-storage power in 2024 also eclipsed those of 2023. In 2023 ECOT added 4,570 megawatts of solar, compared to adding nearly 9,700 megawatts in 2024. Growth in battery storage capacity also increased from about 1,500 megawatts added in 2023 to more than 4,000 megawatts added in 2024. Natural gas capacity also saw increases while wind capacity dropped by about 50 percent.

Texas’ installation of utility-scale solar surpassed California’s in the spring of last year, and jumped from 1,900 megawatts in 2019 to over 20,000 megawatts in 2024 with solar meeting about 50 percent of Texas' peak power demand during some days.

While the numbers are encouraging, the report states that there could be future challenges, as more generating capacity will be required due to data center construction and broader electrification trends. The development of generating more capacity will rely on multiple factors like price signals and market conditions that invite more baseload and dispatchable generating capacity, which includes longer-duration batteries, and investment in power purchase agreements and other power arrangements by large-scale consumers, according to the report.

Additionally, peak demand during winter freezes presents challenges not seen in the summer. For example, in colder months, peak electricity demand often occurs in the early morning before solar energy is available, and it predicts that current battery storage may be insufficient to meet the demand. The analysis indicated a 50% chance of rolling outages during a cold snap similar to December 2022 and an 80% chance if conditions mirror the February 2021 deep freeze at the grid’s current state.

The report also claimed that ERCOT’s energy-only market design and new incentive structures, such as the Texas Energy Fund, do not appear to be enough to meet the predicted future magnitude and speed of load growth.

Read the full report here.

Houston clean energy pioneer earns prestigious Welch Foundation award

Awards Season

A Rice University professor has earned a prestigious award from the Houston-based Welch Foundation, which supports chemistry research.

The foundation gave its 2025 Norman Hackerman Award in Chemical Research to Haotian Wang for his “exceptionally creative” research involving carbon dioxide electrochemistry. His research enables CO2 to be converted into valuable chemicals and fuels.

The award included $100,000 and a bronze sculpture.

“Dr. Wang’s extensive body of work and rigorous pursuit of efficient electrochemical solutions to practical problems set him apart as a top innovator among early-career researchers,” Catherine Murphy, chairwoman of the foundation’s Scientific Advisory Board, said in a news release.

Wang is an associate professor in the Department of Chemical and Biomolecular Engineering at Rice. The department’s Wang Group develops nanomaterials and electrolyzers for energy and environmental uses, such as energy storage, chemical and fuel generation, green synthesis and water treatment.

Wang also is co-founder of Solidec, a Houston startup that aims to turn his innovations into low-carbon fuels, carbon-negative hydrogen and carbon-neutral peroxide. The startup extracts molecules from water and air, then transforms them into pure chemicals and fuels that are free of carbon emissions.

Solidec has been selected for Chevron Technology Ventures’ catalyst program, a Rice One Small Step grant, a U.S. Department of Energy grant, and the first cohort of the Activate Houston program.

“Dr. Wang’s use of electrochemistry to close the carbon cycle and develop renewable sources of industrial chemicals directly intersects with the Welch Foundation mission of advancing chemistry while improving life,” Fred Brazelton, chairman and director of the Welch Foundation, said in the release.

Ramamoorthy Ramesh, executive vice president for research at Rice University, added: “We are proud to (Dr. Wang) at Rice. He’s using chemical engineering to solve a big problem for humanity, everything that the Welch Foundation stands for.”

Last year, the Hackerman Award went to Baylor College of Medicine's Livia Schiavinato Eberlin, who's known for her groundbreaking work in the application of mass spectrometry technologies, which are changing how physicians treat cancer and analyze tissues. Read more here.

Houston venture firm invests in Virginia fusion power plant company in collaboration with TAMU

fusion funding

Houston-based climate tech venture firm Ecosphere Ventures has partnered with Virginia Venture Partners and Virginia Innovation Partnership Corporation’s venture capital program to invest in Virginia-based NearStar Fusion Inc., which develops fusion energy power plants.

NearStar aims to use its proprietary plasma railgun technology to safely and affordably power baseload electricity on and off the power grid through a Magnetized Target Impact Fusion (MTIF) approach, according to a news release from the company.

NearStar’s power plants are designed to retrofit traditional fossil fuel power plants and are expected to serve heavy industry, data centers and military installations.

“Our design is well-suited to retrofit coal-burning power plants and reuse existing infrastructure such as balance of plant and grid connectivity, but I’m also excited about leveraging the existing workforce because you won’t need PhDs in plasma physics to work in our power plant,” Amit Singh, CEO of NearStar Fusion, said in a news release.

NearStar will also conduct experiments at the Texas A&M Hypervelocity Impact Laboratory (HVIL) in Bryan, Texas, on prototype fuel targets and evolving fuel capsule design. The company plans to publish the results of the experiments along with a concept paper this year. NearStar will work with The University of Alabama in Huntsville (UAH) to develop computer performance models for target implosions.

NearStar’s MTIF approach will utilize deuterium, which is a common isotope of hydrogen found in water. The process does not use tritium, which NearStar believes will save customers money.

“While avoiding tritium in our power plant design reduces scientific gain of the fusion process, we believe the vastly reduced system complexity and cost savings of eliminating complicated supply chains, regulatory oversight, and breeding of tritium allows NearStar to operate power plants more profitably and serve more customers worldwide, ”Douglas Witherspoon, NearStar founder and chief scientist, said in a news release.

Houston’s Ecosphere Ventures invests in climate tech and sustainability innovations from pre-seed to late-seed stages in the U.S. Ecosphere also supports first-time entrepreneurs and technical founders.

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