Lignium combats greenhouse gasses with a green fuel that boasts an enviably low carbon footprint. Photo courtesy of Lignium

In Houston, air pollution is usually more of an abstract concept than a harsh reality. But in parts of Chile, the consequences of heating homes with wet wood are catching up to residents.

“Given all the contamination, there are times kids aren’t allowed to go to school. The air pollution is really affecting people’s health,” says Agustín Ríos, COO of Lignium Energy.

Additionally, the methane and nitrous oxide produced by cattle farming are a problem. But Lignium Energy, an international company started in Chile and now headquartered in Houston’s Greentown Labs, has a solution that can solve both problems by upending the latter.

“There’s a lack of solutions with the problem of manure. Methane gases are destroying our planet,” says CEO and co-founder Enrique Guzmán. He goes on to say that most solutions currently being developed are expensive and complex. But not Lignium Energy’s method, invented by co-founder José Antonio Caraball.

Caraball has patented an extraordinarily simple concept. Lignium separates the solid from liquid excretions, then cleans the solid to generate a hay-like biomass. Biomass refers to organic matter that can be used as fuel. What Lignium makes from the cattle evacuations is a clean, odorless and highly calorific biomass.

Essentially, Lignium combats greenhouse gasses with a green fuel that boasts an enviably low carbon footprint. “Our process is very cheap and very simple. That’s why we are a great solution,” explains Guzmán.

Caraball, an industrial engineer, came up with the idea six years ago, says Guzmán. Five years ago, he began working with the company, one year ago, Guzmán and Ríos picked up and moved to Houston.

“We decided to move out of Chile due to market size,” says Ríos. However, the product is already being sold to consumers in its homeland.

Why Houston? The reason was twofold. As an energy company, Ríos says that they wanted to be in “the energy capital of the world.” But Texas is also one of the largest sites of cattle farming on the planet. Lignium prefers to work with farms with more than 500 head to optimize harvesting the waste that becomes biomass.

With that in mind, Lignium has partnered with Southwest Regional Dairy Center in Stephenville, Texas, a little more than an hour southwest of Fort Worth, a town known as the world’s rodeo capital. The facility is associated with Texas A&M, though Guzmán says Lignium is not officially associated with the university.

Guzmán says that the company is currently hiring a team member to help Lignium figure out commercial logistics, as well as four or five other Houstonians who will help them take their product to market in the United States, and eventually around the globe. For now, he predicts that they will be able to sell to consumers in this country by early next year, if not the fourth quarter of 2023.

“We are very committed to the solution because, at the end of the day, if we do good work with the company, we are sure we can give better conditions to the cattle industry,” says Guzmán. “Then we can make a big impact on a real problem.

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This article originally ran on InnovationMap.

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Eyeing demand growth, ERCOT calls for energy investments across Texas

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With the Electric Reliability Council of Texas forecasting a big spike in demand for electricity over the next five to seven years, the operator of Texas’ massive power grid is embracing changes that it says will yield a “tremendous opportunity” for energy investments across the state.

The council, known as ERCOT, now estimates an extra 40,000 megawatts of growth in demand for electricity by 2030 compared with last year’s outlook. According to ERCOT data, 40,000 megawatts of electricity would power roughly 8 million Texas homes during peak demand.

ERCOT has been under intense scrutiny in the wake of recent summertime and wintertime debacles involving power emergencies or outages. The organization manages 90 percent of Texas’ power supply.

“As a result of Texas’ continued strong economic growth, new load is being added to the ERCOT system faster and in greater amounts than ever before,” Pablo Vegas, president and CEO of ERCOT, says in a news release. “As we develop and implement the tools provided by the prior two [legislative sessions], ERCOT is positioned to better plan for and meet the needs of our incredibly fast-growing state.”

Meeting the increased demand will create opportunities for energy investments in Texas, says ERCOT. These opportunities will undoubtedly lie in traditional energy production as well as in renewable energy segments such as solar, wind, and “green” hydrogen.

Some of the opportunities might be financed, at least in part, by the newly established Texas Energy Fund. The fund, which has been allotted $5 billion for 2025-26, will provide loans and grants for construction, maintenance, modernization, and operation of power-generating facilities in Texas.

ERCOT is also working with partners to develop tools aimed at improving grid reliability and market efficiency.

ERCOT says changes in its operations that’ll be required to fulfill heightened demand for power will position the nonprofit organization “as a significant component of the economic engine driving the national economy.”

Katy-based US Silica agrees to go private in $1.85B acquisition by asset management firm

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U.S. Silica has agreed to go private in an all-cash acquisition by Apollo Global Management, a New York asset management firm that primarily invests in alternative assets. The deal values the industrial minerals company at about $1.85 billion.

In a Friday announcement, U.S. Silica said that shareholders would receive $15.50 in cash for each share owned as of the deal's closing. Once the deal closes, U.S. Silica's stock will no longer be listed on the New York Stock Exchange.

Founded in the late 1800s, U.S. Silica produces commercial silica used in the oil and gas industry and other industrial applications. It operates 26 mines and processing facilities and two additional exploration stage properties.

The Katy, Texas-based company is still set to operate under the U.S. Silica name and brand, and will continue to be led by its current CEO Bryan Shinn. In a prepared statement, Shinn said that partnering with Apollo will give U.S. Silica “significant resources, deep industry expertise and enhanced flexibility as a private company."

U.S. Silica said that the transaction — which has been unanimously approved by its board of directors — is expected to close in the third quarter, subject to regulatory approval and other customary conditions.

The agreement also includes a 45-day “go-shop” period that allows U.S. Silica to seek out other proposals until June 10.

Shares of U.S. Silica Holdings Inc. climbed nearly 20 percent Friday morning, shortly after the company reported net income of $13.7 million for its first quarter. The commercial silica producer posted revenue of $325.9 million in the period.

Apollo Global Management's stock was up about 0.18 percent.

From events to a new climate-focused report, here are 3 things to know in Houston energy transition news

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Editor's note: Dive headfirst into the new week with three quick things to catch up on in Houston's energy transition: a roundup of events not to miss, a new study puts a dollar sign to Texas' disasters per capita, and three organizations are teaming up for an August event.

When it comes to weather-related events, Texas is expensive

Texas — home to everything from tornadoes to hurricanes — cracks the top 10 of a new report ranking states based on impact from weather-related events.

SmartAsset's new report factored in a myriad of data from the Federal Emergency Management Agency to identify which states face the most financial risk due to various weather events. In the report, the states were ranked by the total expected annual financial losses per person. Texas ranked at No. 10. In Texas, the total expected annual loss per person is estimated as $283.15. Click here to see that figure broken down.

3 organizations in Houston receive funding for DOE-backed programming

Later this year, a Wells Fargo Foundation-backed event that's co-administered by the United States Department of Energy's National Renewable Energy Laboratory will feature programming from three Houston organizations.

The Wells Fargo Innovation Incubator, a $50 million program, announced its eighth cycle of IN2 Channel Partner Strategic Awards. The program is distributing $767,000 across 15 organizations within the Channel Partner network to create impactful workshops at the upcoming Camp Cleantech event in August at CSU Spur in Denver, Colorado.

Houston-based Rice Alliance Clean Energy Accelerator, as well as Activate Global and Greentown Labs, which each have Houston locations, have been named among the awards recipients. The organizations will present workshops aimed at providing critical tools and insights for clean tech startups. Read more about the event and grants.

Events not to miss

Put these Houston-area energy-related events on your calendar.

  • Center for Houston’s Future and the Houston Energy Transition Initiative present a panel and attendee Q&A on Wednesday, May 1, from 9 to 11 a.m. at Partnership Tower 701 Avenida de las Americas, Suite 900. The program will be on the National Petroleum Council’s new report on hydrogen: “Harnessing Hydrogen: A Key Element of the U.S. Energy Future.” Register.
  • Offshore Technology Conference returns to Houston May 6 to 9. Register.
  • Greentown Houston's next Transition on Tap, a monthly networking event, is Wednesday, May 8. Register.
  • The University of Houston is hosting a professional-level course focused on hydrogen. The course is open for registration now, and the orientation event will take place on May 15. Learn more.