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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 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.

    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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    ExxonMobil expands Gulf Coast CCS business with Louisiana deal

    carbon contract

    Spring-based energy powerhouse ExxonMobil has picked up another project in the carbon capture and storage (CCS) market.

    Natural gas pipeline operator Williams Cos. has tapped ExxonMobil to transport and store up to one metric ton per year of CO2 from Williams’ natural gas collection and processing plant in southwest Louisiana’s Haynesville Shale.

    Williams will transport natural gas via its Louisiana Energy Gateway pipeline, then process the natural gas and deliver it to the Gulf Coast for export as liquefied natural gas (LNG). The LNG will be used in power generation, residential and commercial heating, and industrial processes.

    Williams recently agreed to acquire Momentum Midstream for up to $5.5 billion to expand Williams’ LNG presence in the Haynesville Shale. Haynesville is the country’s third-largest producer of natural gas.

    Once the deal closes, Williams will own a $1.5 billion project in southwest Louisiana that will expand capacity of the Transco natural gas distribution system. The system serves power and LNG-export customers. Williams will also gain over 4,000 miles of pipeline and more than one million acres.

    While Williams is based in Tulsa, Oklahoma, it has a significant presence in Houston. Last month, Green Street’s Real Estate Alert reported Williams bought the 64-story, 1.4 million-square-foot Williams Tower south of The Galleria from Invesco Real Estate for more than $300 million. The company will occupy about 360,000 square feet in the skyscraper for its Houston hub.

    Williams employs about 800 people in Bayou City, including roughly 700 who work at Williams Tower, and plans to hire another 100 by the end of this year.

    The Williams deal is ExxonMobil’s seventh CCS contract. ExxonMobil’s CCS portfolio supports LNG, lower-carbon-intensity steel, ammonia, natural gas processing, industrial gases and methanol.

    ExxonMobil has established a “carbon superhighway” along the Gulf Coast to fuel its CCS business. The company owns and operates a more than 1,300-mile CO2 pipeline system, the largest in the U.S.

    “Carbon capture is becoming an increasingly important part of industrial operations, but capture alone doesn’t solve the problem of high emissions,” says ExxonMobil. “What matters next is how CO2 is transported, used, and stored.”

    ExxonMobil’s CCS initiatives are aimed at capturing a chunk of the rapidly growing CCS market in the U.S. Straits Research forecasts the market will grow from $5.66 billion this year to $13.56 billion by 2034.

    “It’s not every day you get to witness the birth of a new American industry, but that’s exactly what’s happening right now at the U.S. Gulf Coast,” Dominic Genetti, senior vice president of CCS at ExxonMobil, wrote in an article published last year on the company’s website.

    Fervo Energy, Mercury Fund leaders named first experts in residence for TEX-E

    energy mentors

    Two leading companies in Houston's clean energy scene have been named the Texas Exchange for Energy & Climate Entrepreneurship's first experts in residence.

    TEX-E announced this month that Houston-based geothermal unicorn Fervo Energy and venture capital firm Mercury Fund have joined the nonprofit's new Expert-in-Residence partnership. The program aims to connect TEX-E Fellows with "the people and organizations shaping the future of energy and entrepreneurship."

    The 2026 TEX-E Fellows were named in June and include 67 students from six Texas universities and the Massachusetts Institute of Technology. Nineteen are from Houston universities. See the full list here.

    Through the Expert-in-Residence program, fellows will be able to network and work with:

    "More than anything, students need the determination and creativity to step outside of their comfort zones and tackle problems that lack clear answers. At Fervo, we've consistently bet on young people who lack traditional 'hard skills' but are willing to embrace uncertainty and learn on the job. That open-mindedness will take students far," Jewett said in a prepared statement. Fervo named Jewett as COO in June.

    TEX-E was founded in 2022 through partnerships with MIT Martin Trust Center for Entrepreneurship and Greentown Labs. It works with university students from six schools: Rice University, University of Houston, Prairie View A&M University, The University of Texas at Austin, Texas A&M University and MIT.

    The organization named Houston venture capital and innovation leader Sandy Guitar as its new executive director last year. Guitar previously served as general partner and managing director at Houston-based VC firm HX Venture Fund and is co-founder of Weathergage Capital.

    TEX-E is known for its student track within the Energy Venture Day and Pitch Competition at CERAWeek. It awarded $50,000 to student teams from the University of Texas and Rice University. Read more here.

    BP to sell Houston’s Archaea Energy after $4.1 billion bet on biogas

    RNG exit

    Oil and gas conglomerate BP is unloading its Houston-based U.S. renewable natural gas business just four years after buying it.

    The British company announced the planned sale of Archaea during its most recent earnings call but offered few details.

    On the call, BP’s new CEO, Meg O’Neill, said her company had put Archaea on the market and already had attracted interest from potential buyers. BP acquired Houston-based Archaea Energy, the country’s largest producer of renewable natural gas (RNG), in 2022 for about $4.1 billion.

    BP, whose North American headquarters is in Houston, is streamlining its portfolio. As such, O’Neill said Archaea represents a “capital intense” approach to biogas instead of the “capital light” approach BP now favors.

    “If there’s somebody who sees an opportunity to create additional value, who will invest in that business, who will build on the foundation, because our team has made really good progress in improving the profitability of that business, then that will be a good outcome,” O’Neill told Wall Street analysts.

    The proposed sale of Archaea is part of BP’s effort to sell about $20 billion in assets by the end of next year.

    Archaea captures biogas, a natural byproduct of waste decomposition at landfills and dairy farms, and converts it into electricity or RNG. This process leads to cleaner air, less odor, and more sustainable energy than traditional fossil fuels.

    Archaea was slated to be a cornerstone of BP’s plan to boost its biogas supply by roughly 600 percent to the equivalent of about 70,000 barrels of oil per day.

    Bioenergy had been identified as one of bp’s five pillars of its multibillion-dollar energy transition initiative.

    Another pillar: EV charging. Last month, BP agreed to sell its EV charging business in Austria to Switzerland’s Volenergy, along with 250 BP-branded stores and a fleet of business vehicles.

    “By concentrating our capital on the assets and markets where BP can be most competitive and best serve customers, we are strengthening our balance sheet and creating a stronger downstream portfolio,” Richard Harding, interim executive vice president of downstream at BP, said of the Volenergy deal.

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