Houston-based Nauticus Robotics has a new CEO and fresh funding. Photo via LinkedIn

In the wake of a leadership reshuffling and amid lingering financial troubles, publicly traded Nauticus Robotics, a Webster-based developer of subsea robots and software, has netted more than $12 million in a second tranche of funding.

The more than $12 million in new funding includes a $9.5 million loan package.

Nauticus says the funding will accelerate certification of the company’s flagship Aquanaut robot, which is being prepared for its inaugural mission — inspecting a deep-water production facility in the Gulf of Mexico that’s owned by a major oil and gas company.

The new funding comes several weeks after the company announced a change in leadership, including a new interim CEO, interim chief financial officer, and lead general counsel.

Former Halliburton Energy Services executive John Gibson, the interim CEO, became president of Nauticus last October and subsequently joined the board. Gibson replaced Nauticus founder Nicolaus Radford in the CEO role. Radford’s LinkedIn profile indicates he left Nauticus in January 2024, the same month that Gibson stepped into the interim post.

Radford founded what was known as Houston Mechatronics in 2014.

Victoria Hay, the new interim CFO at Nauticus, and Nicholas Bigney, the new lead general counsel, came aboard in the fourth quarter of 2023.

“We currently have the intellectual property, prototypes, and the talent to deliver robust products and services,” Gibson says in a news release. “Team Nauticus is now laser-focused on converting our intellectual property, including both patents and trade secrets, into differentiated solutions that bring significant value to both commercial and government customers.”

A couple of weeks after the leadership shift, the NASDAQ stock market notified Nauticus that the average closing price of the company’s common stock had fallen below the $1-per-share threshold for 30 consecutive trading days. That threshold must be met to maintain a NASDAQ listing.

Nauticus was given 180 days to lift its average stock price above $1. If that threshold isn’t reached during that 180-day period, the company risks being delisted by NASDAQ. The stock closed February 6 at 32 cents per share.

The stock woes and leadership overhaul came on the heels of a dismal third-quarter 2023 financial report from Nauticus. The company’s fourth-quarter 2023 financial report hasn’t been filed yet.

For the first nine months of 2023, Nauticus reported an operating loss of nearly $20.9 million, up from almost $11.3 million during the same period a year earlier. Meanwhile, revenue sank from $8.2 million during the first nine months of 2022 to $5.5 million in the same period a year later.

Nauticus went public in September 2022 through a SPAC (special purpose acquisition company) merger with New York City-based CleanTech Acquisition Corp., a “blank check” company that went public in July 2021 through a $150 million IPO. The SPAC deal was valued at $560 million when it was announced in December 2021.

Nauticus recently hired investment bank Piper Sandler & Co. to help evaluate “strategic options to maximize shareholder value.”

One of the strategic alternatives involves closing Nauticus’ previously announced merger with Houston-based 3D at Depth, which specializes in subsea laser technology. When it was unveiled last October, the all-stock deal was valued at $34 million.

Wogbe Ofori, founder and chief strategist of WRX Companies, joins the Houston Innovators Podcast to discuss hardtech and Houston as an energy transition city. Photo via LinkedIn

Energy transition in Houston is going to 'take time and be hard'

Q&A

The energy transition has momentum, according to Wogbe Ofori. But there's still a ways to go.

Ofori, the founder and chief strategist of WRX Companies, is an adviser to Nauticus Robotics and strategist to Intuitive Machines and Jacobs, he's also served as a mentor across the local innovation community. He's narrowed in on hardtech and has has gotten a front-row seat to observing what's happening in Houston amid the energy transition, as he explains on this week's episode of the Houston Innovators Podcast.

Listen to the episode and read an excerpt below.

EnergyCapital: Looking back on some of the recent trends of the energy transition, what have you observed?

Wogbe Ofori: The energy transition has been something that — through the last hype cycle that started in the second half of 2020 and lasted until the first quarter of 2022 — was part of that momentum along with Web3. Now, the energy transition is continued as Web3 has fallen off a cliff and now been replaced by AI, but the energy transition is continued. Where I think moving into the next major stage where now it’s time for them to actually be proven out. And these things are hard and take time to be proven out and these technologies to mature. Then for the products and services that are derived from them, to really find the right place within the market and the right use cases. The idea that there is some sort of silver bullet — whether it be hydrogen or something else — that's going to solve the problem for all use cases is completely unrealistic. The issue is that a lot of folks especially the big energy players — the O&G majors here — they know that.

EC: So, what does this next stage look like?

WO: Now we're moving into what I think is a really interesting period where it's going to be, “well do we really have the legs for this race?” Because we sprinted, and everybody got really excited. Now you starting to hear, “well you know some investors are a little worried that cleantech 2.0 might suffer some of the same fate as cleantech 1.0.” How do we avoid that? Will investors have the patience to continue to make investments into energy transition plays for the longer term, because we’re going to need that to make these transitions. It's not going to happen overnight.

EC: Where does Houston come in on all this?

WO: Well the other big question that’s being asked around is, “Can Houston actually lead this?” It's difficult for an incumbent to disrupt itself. We’ve been positioning ourselves as moving from the energy capital of the world to the energy transition capital. I'm all for it, and I'm 100 percent behind it. Now we are just at the place where we're really going to start to see the difference between those who were caught up in the excitement of the energy transition, and those who really have the faith to see this thing through. The ones who do have the faith to see this through are going to create some fantastic companies that are going to create real value and that will materially change the way we live. But it’s going to take time and be hard.

The acquisition is valued at $34 million. Photo via Nauticus Robotics

Houston subsea tech company makes acquisition, plans to grow renewables biz

all aboard

A Houston company that harnesses the power of robotics hardware and programing for underwater use has made an acquisition.

Nauticus Robotics Inc. (NASDAQ: KITT) announced it has acquired 3D at Depth Inc., a Colorado-based company with a subsea light detection and range, LiDAR, technology for inspection and data services. The deal closed for approximately $34 million in stock, before certain purchase price adjustments and the assumption of debt, per the news release.

“The future of subsea services lies in autonomy, data gathering, and analytics,” Nicolaus Radford, Nauticus’ founder and CEO, says in the release. “LiDAR has long since been core to terrestrial autonomy and by adding 3D’s capabilities to the Nauticus Fleet, we enhance autonomous vehicles in the offshore market. This acquisition increases the value of Nauticus’ fleet services and positions the Company to capitalize on data acquisition and analytics for subsea operations.”

The acquisition expands Nauticus' capabilities for its autonomous underwater suite of technology for its customers. With the deal, Nauticus will assume 20 patents secured or pending by acquiring 3D, which generated $9.8 million in revenue last year and is slated to grow revenue by more than 20 percent in 2023, according to the release.

“In addition to the compelling strategic and financial benefits of this deal, the acquisition will add momentum to our commercial growth trajectory,” Radford continues. “By adding 3D’s technology, offshore inspection and data service, and experienced team, Nauticus expands our addressable market and accelerates our customer penetration in the offshore energy and renewables industries.”

Founded in 2009, 3D will operate as a division of Nauticus when the deal closes sometime before the end of the year. Nauticus will also assume approximately $4.1 million of debt in the transaction.

“The Nauticus Robotics and 3D at Depth combination creates a compelling solution for the subsea market and should help improve our products and services for all our clients,” Carl Embry, founder and CEO of 3D at Depth, says in the release. “We believe the integration of our unique subsea multi-dimensional data collection and processing with an emerging leader in subsea robotics creates a differentiated offering for customers seeking safer, cleaner, lower-cost subsea services.”

Nauticus, founded by Radford in 2014 as Houston Mechatronics, went public via a blank check company last year.

———

This article originally ran on InnovationMap

How the IRA is affecting clean energy project development, events not to miss, and more things to know this week. Photo via Getty Images

3 things to know this week: Energy startups announce big wins, evaluating the IRA's first year, and more

hou knew?

Editor's note: It's a new week — start it strong with three quick things to know in Houston's energy transition ecosystem. Three energy tech startups are celebrating big wins, experts evaluate the IRA's first year, and events not to miss this week.

Eyes on the IRA

How did the IRA affect energy transition project development? Experts discussed the positive impacts — as well as the challenges still to overcome. Photo courtesy of Renewable Energy Alliance Houston

August 16 marked one year of the Inflation Reduction Act's enactment, and many have taken this first anniversary as an opportunity to look back on its effectiveness and where it's fallen short.

For Carbon Clean, a United Kingdom-founded company, the IRA made all the difference in its expansion into the United States — by way of Houston.

"The impact of the IRA cannot be overstated for our industry, especially for point source carbon capture technology companies like Carbon Clean," Co-Founder, Chair, and CEO Aniruddha Sharma shares with EnergyCapital in an interview. "The momentum created by the law's passage, along with our existing activity in North America, led to the opening of our US headquarters in Houston in March this year. We will double our US headcount to meet demand for CycloneCC, our breakthrough, fully modular carbon capture technology."

At a recent event at Rice University, experts zeroed in on the effect on clean energy project development. While the IRA opened doors for new funding, it also revealed shortcomings when it came to permitting.

"The IRA for developers has been very positive. It provided certainty and allowed developers and investors alike to plan long term," says Omar Aboudaher, senior vice president of development for Leeward Renewable Energy. "With that comes challenges, including exacerbating some existing problems with permitting."

Energy tech startup wins

These three startups have something to celebrate. Photo via Getty Images

Three energy tech startups had some big wins last week — let's take a look.

  • Nauticus Robotics, a Houston-based tech company providing software and hardtech solutions for industrial and government entities, secured a $2.1 million contract extension with one of its biggest clients. Read more.
  • France-based Engie announced that it will acquire Houston-based battery storage startup Broad Reach Power in $1 billion deal. The company launched in 2019 with backing from EnCap Energy Transition, an arm of Houston-based private equity firm EnCap Investments. Read more.
  • Austin-based energy software company P6 Technologies closed a $3.25 million seed round of funding with support from a handful of Houston investors from GOOSE Capital, Artemis Energy Partners, Tupper Lake Partners, and Veritec Ventures. Read more.

Upcoming events to put on your radar

Mark your calendars. Photo via Getty Images

Plan the rest of your August accordingly.

  • August 28-30 — Industrial IMMERSIVE Week attracts the most industrial, energy, and engineering tech professionals making investment, strategy and tactical decisions, or building, scaling and executing pioneering XR/3D/Simulations, digital twin, reality capture, edge /spatial computing, AI/ML, connected workforce & IIoT projects within their enterprise.
  • August 30 — 2023 Energy Research Day will be a showcase of outstanding energy-related research by University of Houston graduate and postdoctoral students. Sponsored by the Division of Research and Graduate School, the event gives industries in the Greater Houston area a chance to see UH research up close and network with future collaborators.
  • August 30-31 — Carbon & ESG Strategies Conference, presented by Hart Energy, will highlight carbon capture and storage projects and technologies onshore and offshore, direct air capture, enhanced oil recovery, responsibly sourced gas, renewable natural gas, federal funding challenges and insurance issues, ESG initiatives, regulatory concerns and much more.

Virginia-based Leidos has extended its work with Houston-based Nauticus Robotics. Photo via LinkedIn

Engineering tech co. expands collaboration with Houston robotics startup in $2.1M contract extension

underwater moves

A major customer of Webster-based Nauticus Robotics, a maker of autonomous oceangoing robots, has bulked up its current contract.

Reston, Virginia-based Leidos has tacked on a $2.1 million extension to its existing contract with Nauticus. That brings Leidos’ total financial commitment from $14.5 million to $16.6 million.

In partnership with Leidos, Nauticus is developing next-generation underwater drones for business and military customers. These unmanned underwater vehicles are being designed to carry out tasks that are dangerous or impossible for human divers to do, such as mapping the ocean floor, studying sea creatures, and monitoring water pollution.

“This very important work combines great attributes from each company to deploy a truly novel subsea capability,” says Nicolaus Radford, founder and CEO of Nauticus.

Based on Nauticus’ Aquanaut product, these robots will feature the company’s toolKITT software, which supplies artificial intelligence capabilities to undersea vehicles.

“This work is the centerpiece of Nauticus’ excellent collaboration with Leidos,” says Radford, “and I look forward to continuing our mutual progress of advancing the state of the art in undersea vehicles.”

Founded in 2014 as Houston Mechatronics, Nauticus adopted its current branding in 2021. Last year, Nauticus became a publicly traded company through a merger with a “blank check” company called CleanTech Acquisition Corp.

During the first six months of 2023, Nauticus generated revenue of nearly $4 million, down from a little over $5.2 million in the same period last year. Its operating loss for the first half of 2023 was almost $12.7 million, up from slightly more than $5.2 million during the same time in 2022.

Nauticus attributes some of the revenue drop to delays in authorization of contracts with government agencies.

The company recently lined up a $15 million debt facility to bolster its operations.

“I’ve never been more optimistic about the future of Nauticus. We employ some of the best minds in the industry, and we are positioned with the right product at the right time to disrupt a $30 billion market,” Radford said earlier this month. “Demand from potential customers is high, but constructing our fleet is capital-intensive.”

More good news for Nauticus: It recently signed contracts with energy giants Shell and Petrobras. Financial terms weren’t disclosed.

The Shell contract involves a project in the Gulf of Mexico’s Princess oil and gas field that Nauticus says could lead to millions of dollars in additional contracts over the next few years. Shell operates the offshore field, which is around 40 miles southeast of New Orleans, and owns a nearly 50 percent stake in it.

Co-owners of the Princess project are Houston-based ConocoPhillips, Spring-based ExxonMobil, and London-based BP, whose North American headquarters is in Houston. In July, the Reuters news service reported that ConocoPhillips was eyeing a sale of its stake in the Princess field.

Under the contract with Petrobras, whose U.S. arm is based in Houston, Nauticus will dispatch its Aquanaut robot to support the Brazilian energy company’s offshore activities in South America. Nauticus says this deal “opens up a potential market opportunity” in Brazil exceeding $100 million a year.
Houston-based Nauticus Robotics founder, Nicolaus Radford, shares the latest from his company. Image via LinkedIn

Q&A: Houston robotics entrepreneur on IPO, military innovation, and more

automation nation

Almost a decade ago, Nicolaus Radford founded a robotics company that automated underwater operations for heavy industry customers. Now, the company provides its robotics-as-a-service business to customers across industry, providing key analytics, risk-managed monitoring, and emission-reducing service.

Nauticus Robotics (Nasdaq: KITT) went public via SPAC last year, and Radford, CEO and founder, sat down with InnovationMap earlier this year to share the unique challenges he faced with the IPO, the company's partnerships with the United States Marine Corps, and more. Check out the shortened Q&A below and head to InnovationMap for the full conversation.

InnovationMap: Tell me about life after IPO. What’s been surprising for you leading your company through the transition and now on the other side of IPO?

Nicolaus Radford: I'll tell you what, it’s the hardest thing I ever did in my professional career by a factor of 10. It was a very exceptionally challenging period of time. It took a long to complete the transaction, and the market was just changing under our feet. Rules were and regulations were changing — were we grandfathered in or were we not?

I'm part of some business organizations and, and some of those confidential relationships have turned into friendships. And a couple of them call me and they're like, “we're really worried. We think this is going to be we don't know if you're going to get it done. And we just want you to be aware that you're not you may not get it done.” It is a little scary because once you engage in it, you're running quite a tab with bankers and law firms and all sorts of things. And if you don't complete the deal, it just might kill the company.

But we did it. We were one of a few people last year to actually get a deal over the line. I'm very proud of that. I think it speaks to the quality of the deal that we had. The macro economic environment was exceptionally difficult. It remains to be very difficult today. But we had strong backing from our strategic investors and our partners that were already on the cap table. They put a tremendous amount of money into the deal.

You know, I look back on it and it's, you know, ringing the Nasdaq bell when we listed, and giving that speech at the podium — it was a surreal moment. I remember when I was standing there looking at the Nauticus logo on the seven-story Nasdaq tower, having as many people in the company as we could bring, and just sharing that moment with all of them.

I was excited but cautious at the same time. I mean, the life of a CEO of a public company at large, it's all about the process following a process, the regulations, the administration of the public company, the filings, the reportings — it can feel daunting. I have to rise to the occasion to tackle that in this the next stage of the company.

IM: You’re working with the military on a project that adapts Nauticus tech for Marine Corps use. What’s it been like working with the military on this project?

NR: We've probably worked with military interests for the last six years, but all of the things that we have been doing have been extremely confidential and hush. Now we've been able to work with customers that have a stronger public facing persona, and the Defense Innovation Unit is one of those.

Their charter is it's quite literally looking for commercial technology and adapting that towards military applications, and so it's been nice to be able to show the utility and the application of of a lot of our technology and what we've been working on for so long as it's applied on a broader scale to the big services, whether it's the Navy or the Marine Corps.

Both of the programs we’re working on are all about mine countermeasures, and mines are really, really difficult, especially underwater mines. We've been we've been applying all of Nauticus’s broad technology portfolio to being able to search autonomously and being able to identify and neutralize threats in the water. I love that mission because anytime we can remove our service men and women from these situations, that's just the right thing to do.

IM: What’s next for Nauticus?

NR: What’s next is tough to talk about, because I can only talk about what’s already been published. I see Nauticus being the preeminent ocean robotics company. I want Nauticus to be an empire. It starts small but it grows — and it grows in many different ways, and we’re exploring all of those different ways to grow. We’re leading a technology renaissance in the marine space — and that happens only a few times in an industry.

------

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

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CultureMap Emails are Awesome

Houston energy pioneer elected to National Academy of Sciences leadership

top honor

Naomi Halas, a Rice University professor and co-founder of Syzygy Plasmonics, was elected to the Council of the National Academy of Sciences this month.

The council sets priorities for the nonprofit organization, which advises the federal government on scientific and technical matters. Halas will serve a three-year term on the council, beginning July 1.

“The council’s work is focused on the academy’s national leadership and governance,” Halas said in a news release. “It plays an important role in helping set initiatives and priorities for the scientific community, and in supporting the conditions that allow science to move forward in meaningful ways.”

Halas is best known for her pioneering work in nanophotonics and plasmonics. She helped develop nanoshells, or metal-coated nanoparticles that capture light energy, which have led to innovations in renewable energy, cancer therapy and water purification.

Halas co-founded Syzygy Plasmonics with frequent collaborator and fellow Rice professor Peter Nordlander. The company is developing low-cost, light-driven, all-electric chemical reactors for the sustainable production of hydrogen fuel. It was named to Fast Company's energy innovation list last year.

Syzygy Plasmonics is developing its first commercial-scale biogas-to-sustainable aviation fuel project in Uruguay, known as NovaSAF-1. It secured a six-year offtake agreement for the entire production from the project with Singapore-based commodity company Trafigura this month.

Halas was first elected to become a member of the NAS in 2013, and was shortly after named to the National Academy of Engineering in 2014—making her one of the few scientists to hold both distinctions. She received the Benjamin Franklin Medal in Chemistry last year. Many scientists who have received the award have gone on to win Nobel prizes.

She is also the co-founder of Nanospectra Biosciences and a member of the National Academy of Inventors, the American Academy of Arts and Sciences, and the Royal Danish Academy of Science and Letters. She holds more than 25 patents, according to Rice.

Houston startup launches groundbreaking mineral hydrogen pilot

pilot project

Houston climatech company Vema Hydrogen recently completed drilling its first two pilot wells in Quebec for its Engineered Mineral Hydrogen (EMH) pilot. The company says the project is the first EMH pilot of its kind.

Vema’s EMH technology produces low-cost, high-purity hydrogen from subsurface rock formations. It has the capacity to support e-fuel and clean mobility industries and the shipping and air transport markets. The pilot project is the first field deployment of the company’s technology.

“This pilot will provide the critical data needed to validate Engineered Mineral Hydrogen at commercial scale and demonstrate that Quebec can lead the world in this emerging clean energy category,” Pierre Levin, CEO of Vema Hydrogen, said in a news release.

Levin added that the sample collected thus far in the pilot is “exactly what we expected, and is very promising for hydrogen yields.”

Through the pilot, Vema will collect core samples and begin subsurface analysis to evaluate fluid movement and monitor hydrogen production from the wells. The data collected from the pilot will shape Vema's plans for commercialization and provide documentation for proof of concept in the field, according to the news release.

“Vema Hydrogen perfectly embodies the spirit of the grey to green movement: transforming mining liabilities into drivers of innovation and ecological transition,” Ludovic Beauregard, circular economy commissioner at the Thetford Region Economic Development Corporation, added in the release.

“This project demonstrates that it is possible to reconcile the revitalization of mining regions, clean energy and sustainable economic development for these areas.”

In addition to its pilot in Canada, Vema also recently signed a 10-year hydrogen purchase and sale agreement with San Francisco-based Verne Power to supply clean hydrogen for data centers across California. The company was selected as a Qualified Supplier by The First Public Hydrogen Authority, which will allow it to supply clean hydrogen at scale to California’s municipalities, transit agencies and businesses through the FPH2 network.

Vema aims to produce Engineered Mineral Hydrogen for less than $1 per kilogram. The company, founded in 2024, is working toward a gigawatt-scale hydrogen supply in North America.

Houston startup wins funding through new Bezos Earth Fund initiative

global winner

A Houston-based climatech startup is one of the first 16 companies in the world to receive funding through a new partnership between The Bezos Earth Fund and The Earthshot Prize.

Mati Carbon will receive $100,000 through the Bezos Earth Fund’s Acceleration Initiative. The initiative will provide $4.8 million over three years to support climate and nature solutions startups. It's backed by The Bezos Earth Fund, which was founded through a $10 billion gift from Amazon founder Jeff Bezos and aims to "transform the fight against climate change."

The Acceleration Initiative will choose 16 startups each year from The Earthshot Prize’s global pool of nominations that were not selected as finalists. The Earthshot Prize, founded by Prince William, awards £1 million to five energy startups each year over a decade.

"The Earthshot Prize selects 15 finalists each year, but our wider pool of nominations represents a global pipeline of innovators and investable solutions that benefit both people and planet. Collaborating with the Bezos Earth Fund to support additional high-potential solutions is at the heart of commitment to working with partners who share our vision," Jason Knauf, CEO of The Earthshot Prize, said in a news release. "By combining our strengths to support 48 carefully selected grantees from The Earthshot Prize’s pool of nominations, our partnership with the Bezos Earth Fund means we will continue to drive systemic change beyond our annual Prize cycle, delivering real-world impact at scale and speed.”

Mati Carbon was founded in 2022 by co-directors Shantanu Agarwal and Rwitwika Bhattacharya. It removes carbon through its Enhanced Rock Weathering (ERW) program and works with agricultural farms in Africa and India. Mati Carbon says the farmers it partners with are some of the most vulnerable to the impacts of climate change.

"As one of the first 16 organizations selected, this support enables us to expand our operations, move faster and think bigger about the impact we can create," the company shared in a LinkedIn post.

The other grantees from around the world include:

  • Air Protein Inc.
  • Climatenza Solar
  • Instituto Floresta Viva
  • Forum Konservasi Leuser
  • Fundación Rewilding Argentina
  • Hyperion Robotics
  • InPlanet
  • Lasso
  • Mandai Nature
  • MERMAID
  • Asociación Conservacionista Misión Tiburón
  • Simple Planet
  • Snowchange Cooperative
  • tHEMEat Company
  • UP Catalyst

Mati Carbon also won the $50 million grand prize in the XPRIZE Carbon Removal competition, backed by Elon Musk’s charitable organization, The Musk Foundation, last year.