4 biggest challenges of Houston-based sustainability startups

Houston innovation awards

The six finalists for the sustainability category for the 2023 Houston Innovation Awards weigh in on their challenges overcome. Photos courtesy

Six Houston-area sustainability startups have been named finalists in the 2023 Houston Innovation Awards, but they didn't achieve this recognition — as well as see success for their businesses — without any obstacles.

The finalists were asked what their biggest challenges have been. From funding to market adoption, the sustainability companies have had to overcome major obstacles to continue to develop their businesses.

The awards program — hosted by EnergyCapital's sister site, InnovationMap, and Houston Exponential — will name its winners on November 8 at the Houston Innovation Awards. The program was established to honor the best and brightest companies and individuals from the city's innovation community. Eighteen energy startups were named as finalists across all categories, but the following responses come from the finalists in the sustainability category specifically.

Click here to secure your tickets to see who wins.

1. Securing a commercial pilot

"As an early-stage clean energy developer, we struggled to convince key suppliers to work on our commercial pilot project. Suppliers were skeptical of our unproven technology and, given limited inventory from COVID, preferred to prioritize larger clients. We overcame this challenge by bringing on our top suppliers as strategic investors. With a long-term equity stake in Fervo, leading oilfield services companies were willing to provide Fervo with needed drilling rigs, frack crews, pumps, and other equipment." — Tim Latimer, founder and CEO of Fervo Energy

2. Finding funding

"Securing funding in Houston as a solo cleantech startup founder and an immigrant with no network. Overcome that by adopting a milestone-based fundraising approach and establishing credibility through accelerator/incubator programs." — Anas Al Kassas, CEO and founder of INOVUES

"The biggest challenge has been finding funding. Most investors are looking towards software development companies as the capital costs are low in case of a risk. Geothermal costs are high, but it is physical technology that needs to be implemented to safety transition the energy grid to reliable, green power." — Cindy Taff, CEO of Sage Geosystems

3. Market adoption

"Market adoption by convincing partners and government about WHP as a solution, which is resource-intensive. Making strides by finding the correct contacts to educate." — Janice Tran, CEO and co-founder of Kanin Energy

"We are creating a brand new financial instrument at the intersection of carbon markets and power markets, both of which are complicated and esoteric. Our biggest challenge has been the cold-start problem associated with launching a new product that has effectively no adoption. We tackled this problem by leading the Energy Storage Solutions Consortium (a group of corporates and battery developers looking for sustainability solutions in the power space), which has opened up access to customers on both sides of our marketplace. We have also leveraged our deep networks within corporate power procurement and energy storage development to talk to key decision-makers at innovative companies with aggressive climate goals to become early adopters of our products and services." — Emma Konet, CTO and co-founder of Tierra Climate

4. Long scale timelines

"Scaling and commercializing industrial technologies takes time. We realized this early on and designed the eXERO technology to be scalable from the onset. We developed the technology at the nexus of traditional electrolysis and conventional gas processing, taking the best of both worlds while avoiding their main pitfalls." — Claus Nussgruber, CEO of Utility Global

At last year's awards program, Cemvita Factory's co-founders, Tara and Moji Karimi, accepted the award for the Green Impact Business category. This year, Moji Karimi served as a judge

18 Houston energy startups named finalists for innovation awards program

companies to watch

The 2023 Houston Innovation Awards announced its 52 finalists — a large portion of which are promising energy transition startups.

The following startups, which all have an energy transition element to their business, received a finalist position in one or two categories.

Click here to secure your tickets to see who wins.

ALLY Energy, helping energy companies and climate startups find, develop, and retain great talent, scored two finalist positions — one in the Female-Owned Business category and the other in the Social Impact Business category.
Eden Grow Systems, next generation farming technologies, is a finalist in the People's Choice: Startup of the Year category.
Feelit Technologies, nanotechnology for preventive maintenance to eliminate leaks, fires and explosions, increase safety and reduce downtime, is a finalist in the Female-Owned Business category and the People's Choice: Startup of the Year category.
Fervo Energy, leveraging proven oil and gas drilling technology to deliver 24/7 carbon-free geothermal energy, scored two finalist positions — one in the Sustainability Business category and the other in the People's Choice: Startup of the Year category.
FluxWorks, making frictionless gearboxes for missions in any environment, is a finalist in the Hardtech Business category.
Helix Earth Technologies, decarbonizing the built environment and heavy industry, is a finalist in the Hardtech Business category.
INOVUES, re-energizing building facades through its non-invasive window retrofit innovations, making building smarter, greener, and healthier for a better and sustainable future, was named a finalist in the Sustainability Business category.
Kanin Energy, helping heavy industry monetize their waste heat and decarbonize their operations, was named a finalist in the BIPOC-Owned Business and the Sustainability Business categories.
Mars Materials, developing a carbon-negative pathway for carbon fiber and acrylamide production using CO2 and biomass as raw materials, is a finalist in the BIPOC-Owned Business category.
Molecule, an energy/commodity trading risk management software that provides users with an efficient, reliable, responsive platform for managing trade risk, is a finalist in the Digital Solutions Business category.
Rhythm Energy, 100 percent renewable electricity service for residential customers in Texas, is a finalist in the People's Choice: Startup of the Year category.
Sage Geosystems, a cost-effective geothermal baseload energy solution company, also innovating underground energy storage solutions, was named a finalist in the Sustainability Business category.
Solugen, decarbonizing the chemical industry, is a finalist in the Hardtech Business category.
Square Robot, applying robotic technology to eliminate the need to put people into dangerous enclosed spaces and eliminate taking tanks out of service, is a finalist in the Hardtech Business category.
Syzygy Plasmonics, a deep decarbonization company that builds chemical reactors designed to use light instead of combustion to produce valuable chemicals like hydrogen and sustainable fuels, is a finalist in the Hardtech Business category.
Tierra Climate, decarbonizing the power grid faster by helping grid-scale batteries monetize their environmental benefits and change their operational behavior to abate more carbon, was named a finalist in the Sustainability Business category.
Utility Global, a technology company converting a range of waste gases into sustainable hydrogen and syngas, was named a finalist in the Sustainability Business category.
Venus Aerospace, a hypersonics company on track to fly reusable hypersonic flight platforms by 2024, is a finalist in the Hardtech Business category.

Additionally, two energy companies were named to the Corporate of the Year category, which honors corporations that supports startups and/or the Houston innovation community. Aramco Ventures and Chevron Technology Ventures are two of the four finalists in this category.

Lastly, Jason Ethier, co-founder of Lambda Catalyzer and host of the Energy Tech Startups podcast, and Kendrick Alridge, senior manager of community at Greentown Labs, scored finalist positions in the Ecosystem Builder category, as individuals who have acted as leaders in developing Houston’s startup ecosystem.

Click here to see the full list of finalists.

Houston-based INOVUES CEO Anas Al Kassas joins the Energy Tech Startups podcast to discuss his company's energy-saving tech. Photo via inovues.com

Houston innovator on the impact of facade enhancement on the energy transition

guest column

Imagine a world where outdated building facades transform overnight into modern marvels without the chaos of construction or the burden of exorbitant costs.

In the recent podcast episode on Energy Tech Startups, Anas Al Kassas, the CEO of INOVUES, unveils a groundbreaking technology that promises just that. This isn't just about a facelift; it's about revolutionizing energy efficiency, embracing smart-class innovations, and redefining the aesthetics of urban landscapes.

The Advantages of Facade Technology

One of the key advantages Al Kassas highlighted was the ability to significantly reduce both the cost and environmental impact of upgrading building facades. Al Kassas explained that by utilizing INOVUES' technology, the existing systems can be updated and improved without the need for removing or discarding the windows. This approach not only saves on material costs but also avoids disruption during installation. Additionally, the fast installation process and lower labor costs further contribute to the overall cost-effectiveness of the solution.

The Role of Design Aesthetics in Building Upgrades

While energy efficiency is a primary driver for building upgrades, Al Kassas emphasized the importance of design aesthetics in the commercial real estate market. He explained that modernizing the appearance of older buildings, which may still perform well but suffer from outdated perceptions, can attract more tenants and make them more competitive. With INOVUES' solution, building owners have the opportunity to improve the aesthetics of their facades by incorporating the latest glass technologies, colors, and frit patterns (translucent patterns on glass). This not only enhances the building's appearance but also contributes to glare reduction and customization options for different tenants' needs.

The Potential for Rentable Facades

During the conversation, Al Kassas speculated about the potential for rentable facades powered by INOVUES' technology. Just as Apple offers an upgrade plan for its devices, this concept proposes a similar model for building owners to continually incorporate the latest technologies every few years. By avoiding upfront costs and providing immediate benefits such as lower energy bills, improved tenant satisfaction, and a more sustainable building, this rentable facade approach could revolutionize the industry and make energy-efficient upgrades more accessible for a wider range of buildings.

The Current Funding Landscape and Future Growth

INOVUES' journey in securing funding, as discussed in the podcast, sheds light on the challenges faced by energy tech startups. The CEO highlighted the importance of timing and identifying the right investors who share the vision and understand the industry landscape. Despite the difficulties, INOVUES has successfully raised capital, including participation from a multinational building technology company. The company's next goal is to secure a series A funding round to scale their operations and expand their footprint in the market.

INOVUES' technology represents a sustainable solution for upgrading building facades without the need for extensive removal or disruptions. The combination of energy efficiency, improved design aesthetics, and the potential for rentable facades showcases the versatility and value of the company's technology. As the demand for sustainable building solutions continues to grow, and regulatory changes support energy efficiency projects, INOVUES is poised to make a significant impact in the industry. By focusing on both environmental and economic benefits, they are positioning themselves as a key player in the energy tech startup landscape.

———

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.

This innovative window treatment startup announced new global patents. Photo courtesy of INOVUES

Houston sustainability startup secures major milestone for energy efficient tool

patent progress

A Houston company that retrofits windows with smart glass innovations to reduce energy use is celebrating a handful of patents across North America and China.

INOVUES announced it secured several new patents from the United States Patent and Trademark Office, the Canadian Intellectual Patent Office, and the China National Intellectual Property Administration.

“These newly awarded patents reinforce our commitment to innovation and position us as a trusted partner for investors and industry partners,” says Anas Al Kassas, INOVUES founder and CEO, in a news release.

The company now has a total of four patents granted in the United States, Canada, and China, and four more patents pending in the United States, Canada, and the European Union. Additionally, INOVUES has trademark protection granted in the EU, United Kingdom, and China.

INOVUES's unique window treatment — its Insulating Glass Retrofit (IGR) and Secondary Glass Retrofit (SWR) technologies — directly impacts the built environment. The process includes 70 percent fewer materials compared to traditional methods and building owners see a 40 percent reduction in reduction in energy consumption following installation.

Last year, the company raised $2.75 million in venture funding. Kassas said at the time that the funding was slated o be used to scale up the team and identify the best markets to target customers, adding that he was looking for regions with rising energy rates and sizable incentives for companies making energy efficient changes.

"We were able to now implement our technology in over 4 million square feet of building space — from Boston, Seattle, Los Angeles, New York City, Portland, and very soon in Canada," he said in a December episode of the Houston Innovators Podcast.

Anas Al Kassas is the CEO and founder of INOVUES. Photo courtesy

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Sage Geosystems brings South Texas geothermal plant online

powering up

Houston-based Sage Geosystems, a provider of geothermal power, has begun full operations at its South Texas facility for the San Miguel Electric Cooperative.

Sage says the plant was recently “placed in service,” according to a news release. This means it’s fully built and tested, and ready to generate and supply electricity to the grid.

Since selling its first electricity in Q2 of this year, the facility has been operating for more than four months to evaluate aspects like efficiency and water management. Sage relied on its GeoTwin modeling tool to carry out some of the testing.

The testing demonstrates Sage’s proprietary approach to geothermal power “overcomes one of the industry’s most persistent challenges, high water losses in engineered reservoirs, while delivering the consistent performance required to scale next-generation geothermal,” co-founder and CEO Cindy Taff said in the release.

Sage says the South Texas facility will serve as a model for future projects, including one in Nevada. The Nevada facility will use Sage’s proprietary technology to extract geothermal heat from hot dry rock, creating a reliable, affordable source of carbon-free power.

During the testing period, water losses amounted to less than 10 percent. This low rate indicates most water remains in the system, enabling Sage to capture more usable energy, boost power production and improve the project’s finances, the company says.

“Commercial geothermal isn’t just about creating a reservoir. It’s about creating one whose performance can be engineered, predicted, and consistent,” Lev Ring, the company’s co-founder, president and chief technology officer, said in the release.

Since being founded in 2020, Sage has raised $159 million in outside funding. This includes a more than $97 million Series B round co-led by Ormat Technologies and Carbon Direct Capital.

Two years ago, Sage announced a deal with Meta Platforms, the parent company of Facebook and Instagram, to supply up to 150 megawatts of geothermal power to Meta data centers.

Halliburton Labs adds 3 energy, materials startups to Houston incubator

green team

Three new companies have joined Halliburton Labs, the incubator for early-stage energy and hardtech startups run by Houston energy giant Halliburton.

Halliburton Labs provides the emerging companies with mentorship, industry connections, laboratory access and other resources as they work toward commercialization. The latest companies to join the incubator focus on battery materials, resource recovery and gas separation solutions to address some of the "key bottlenecks in the energy and industrial landscape," according to a news release.

The new members include:

Electroflow, a California-based company that produces lithium iron phosphate (LFP) cathode material from lithium brines through its proprietary process. LFPs are critical components in batteries used in electric vehicles, grid storage systems and industrial electrification, according to Halliburton Labs.
Osmoses, a Cambridge, Massachusetts-based company that has developed a membrane platform to reduce the energy use, cost and emissions associated with gas separations used in natural gas, hydrogen, helium and other industrial applications
SiTration Inc., another Cambridge, Massachusetts-based company that has developed electro-extraction and filtration technologies to recover critical metals like copper directly from mining waste streams more quickly and affordably. Its process has completed successful pilot projects with Tier 1 mining companies in three continents.

"Affordable and reliable molecules are essential building blocks of the energy future. Each company brings a bold, technical solution to a complex industrial challenge. We look forward to helping them scale and deploy their technologies," Andres Cabada, Halliburton Labs managing director, added in the news release.

Halliburton Labs previously added four new members from around the world —Nandina REM, Noon Energy, Proof Energy and Tidal Metals—this spring. Alumni from the incubator include Houston-based companies like NanoTech Materials, which is developing insulation and fireproofing to reduce heat transfer in buildings and outdoor infrastructure; and SolvCor, which develops water additives to improve cooling for data centers and thermal storage.

With the addition of the three new members, the incubator currently supports nine early-stage companies.

Houston companies advance 200MW green ammonia plant in South Texas

coming soon

Two global companies with a major presence in Houston are teaming up on a green ammonia plant in Port of Victoria, Texas.

Topsoe, a Danish company with operations in Houston and Bayport, Texas, has been tapped to provide ammonia synthesis technology for the project being developed by First Ammonia, a New York-based company with offices in Houston and Denmark.

The flagship 200-megawatt plant will use renewable electricity to produce green hydrogen through electrolysis, which will then be combined with nitrogen from a nearby Air Liquide pipeline to make green ammonia, according to First Ammonia. It is expected to serve both U.S. and global markets.

According to First Ammonia, every 100,000 tons of electric ammonia produced avoids approximately 240,000 tons of CO2 emissions compared to fossil ammonia

The Topsoe technology used on site is designed to be able to increase production from 10 percent to 100 percent within 30 minutes, and decrease production at a similar rate, allowing the plant to respond to fluctuations from solar- or wind-based energy sources.

“Topsoe is the world leader in ammonia synthesis, and First Ammonia is delighted to continue our partnership with them in establishing a green ammonia industry in the US and around the world,” Joel Moser, CEO of First Ammonia, said in a news release.

Topsoe has previously signed on to supply its 100-megawatt solid oxide electrolyser (SOEC) to the First Ammonia project. However, the company announced in March that it did not extend the contract after multiple delays.

The First Ammonia project was originally expected to come online by 2027 and to produce 1.1 million tonnes of green ammonia. The project is now expected to reach financial before the end of 2026, with construction slated to begin in 2027 and commercial operations launching by 2029.

“As green ammonia projects move from ambition to execution, operational flexibility becomes increasingly important,” Yassir Ghiyati, chief commercial officer at Topsoe, added in a news release. “We’re proud to support First Ammonia with technology designed to enable efficient and reliable green ammonia production. We look forward to continuing to work with the First Ammonia team to help bring this important U.S project to life.”

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