Tyler Lancaster, a Chicago-based investor with Energize Capital, shares his investment thesis and why Houston-based Amperon caught his eye. Photo courtesy of Energize Capital

One of the biggest challenges to the energy transition is finding the funds to fuel it. Tyler Lancaster, partner at Energize Capital, is playing a role in that.

Energize Capital, based in Chicago, is focused on disruptive software technology key to decarbonization. One of the firm's portfolio companies is Amperon, which raised $20 million last fall.

In an interview with EnergyCapital, Lancaster shares what he's focused on and why Amperon caught Energize Capital's attention.

EnergyCapital: Energize Capital has been investing in climate tech for the better part of a decade now. What types of companies are you looking for and how are these companies’ technologies affecting the greater energy transition?

Tyler Lancaster: We partner with best-in-class innovators to accelerate the sustainability transition. This means identifying climate technology companies at various stages of maturity — from early commercialization to approaching the public markets — that we can help scale and realize their full potential. We invest in software-first climate technology businesses, with a focus on asset-light digital solutions that can help scale sustainable innovation and enable the new energy economy. Our portfolio currently drives software applications across renewable energy, industrial operations, electrification & mobility, infrastructure resilience, and decarbonization. We primarily focus on proven, commercially available and economically viable energy transition solutions (solar, wind, batteries, heat pumps, etc.). These solutions suffer from challenges related to efficient deployment or operations, where enabling digital platforms can play a key role in optimizing costs.

EC: Amperon is one of Energize Capital's portfolio companies. What made the company a great investment opportunity for Energize Capital?

TL: Accelerating the energy transition will require critical forecasting tools like what Amperon provides. This is underscored by the escalating impact of extreme weather events, increasing penetration of variable energy resources, like wind and solar, on the supply side, and surging demand growth driven by flexible loads and rapid electrification. We believe the need for Amperon’s platform will only continue to grow, and their increased raise from Series A to Series B showed they are scaling smartly. We’ve also known Sean Kelly, Abe Stanway, and the entire Amperon team for a long time, and building strong relationships with founders is how we like to do business. Amperon has built a blue-chip customer base in the energy sector in a very capital efficient manner, which is more important than ever for startups operating in the current equity market environment.

EC: One of the energy transition’s biggest problems is sourcing and storing reliable and affordable energy. What have you observed are the biggest problems with Texas’ electricity grid and what types of new tech can help improve these issues?

TL: Today’s electricity grid and the demands we’re putting on it look very different than they ever have. Major changes in climate and extreme weather show how perilous and unreliable the power grids in this country are, particularly in regions like Texas that don’t have the right infrastructure to shield grids from unusual temperatures — just look at the damage done by 2021’s historic Winter Storm Uri. And consumer demand for electricity is increasing as electrification accelerates globally. The makeup of the grid itself is shifting from centralized power plants to distributed clean energy assets like solar arrays and wind turbines, which brings issues of intermittent electricity production and no traditional way to forecast that.

Tech solutions like Amperon are the only way to navigate the nuances of the energy transition. With global net-zero goals and impending Scope II accounting, Amperon’s expertise in granular data management further enables companies to build accurate, dynamic forecasting models with smart meter data and get more visibility into anticipated market shifts so they can optimize their energy use — all of which helps to create a more resilient and reliable power grid.

EC: You are also on the board of the company, which recently announced a collaboration with Microsoft’s tech. What doors does this open for Amperon?

TL: Partnering with Microsoft and offering its energy demand forecasting solution on the Azure platform enables Amperon to better serve more companies that are navigating the energy transition and a rapidly evolving grid. Many power sector companies are also undergoing cloud migrations with Microsoft Azure having high market share. This partnership will specifically accelerate Amperon’s reach with utility customers, who typically have slower sales cycles but can greatly benefit from improved accuracy in energy demand forecasting and adoption of AI technologies.

EC: As a non-Texas investor, how do you see Houston and Texas-based companies’ investability? Has it changed over the years?

TL: While most tech startups are concentrated on the coasts and in Europe, we see Texas emerging as a hub for energy and climate focused startups due to its vicinity to energy giants, which represent potential customers. Texas leads the country in renewable energy production and sits at the forefront of the transition. Energy companies based in this region are relying on technology innovation and software tools to modernize operations and meet the evolving demands of their customers.

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This conversation has been edited for brevity and clarity.

Will Tope, chief commercial officer of LiNa Energy, joined the Energy Tech Startups podcast to discuss the company's unique technology and growth plans. Photo via LinkedIn

Energy startup exec unveils breakthrough battery chemistry to revolutionize energy storage solutions

Q&A

In a world striving for sustainable and efficient energy solutions, United Kingdom-based LiNa Energy emerges as a promising player in the field of advanced battery technologies.

With a focus on overcoming the limitations of traditional lithium-ion batteries, LiNa Energy — a member of the 2023 cohort for Houston-based incubator, Halliburton Labs — presents a unique chemistry that holds the potential to revolutionize energy storage.

In a recent episode of Energy Tech Startups with Will Tope, chief commercial officer of LiNa Energy, we delve into the key aspects of LiNa Energy's technology, exploring the challenges they seek to address and their plans for commercialization.

Energy Tech Startups: What is the main problem that LiNa Energy is trying to solve with their battery technology?

Will Tope: LiNa Energy is driven by a pressing dilemma in today's storage landscape: the limited efficiency and high costs associated with existing storage technologies. They aim to bridge the gap, providing low-cost, long-duration energy storage solutions that can effectively accommodate the increasing penetration of renewable energy sources in power grids worldwide. By addressing this critical need, LiNa Energy aims to unlock the full potential of low-cost, low-carbon electrons for global energy consumption patterns.

ETS: How does LiNa Energy's battery technology differ from traditional lithium-ion batteries?

WT: LiNa Energy's technology distinguishes itself through its unique chemistry and progressive use of ceramics. By combining a stable sodium-based chemistry, developed in the 1970s, with advancements in ceramics from the fuel cell industry, LiNa Energy maximizes safety, heat management, and energy density. Their battery cells feature thin planar ceramic electrolytes, enabling cost-efficient automated manufacturing and reducing the need for extensive thermal management systems. This streamlined approach offers both enhanced performance and cost-effectiveness.

ETS: What are the commercialization plans and target markets for LiNa Energy?

WT: LiNa Energy strategically targets markets with high solar potential, such as India, where the demand for storage solutions arises due to the growing deployment of renewables and the need to shift energy to peak demand periods. LiNa Energy aims to demonstrate the effectiveness of their systems through pilot projects at distribution scale by the end of the year. Leveraging partnerships and strong relationships with key players in the energy industry, LiNa Energy envisions gradual growth in manufacturing capacity worldwide. By offering competitive pricing, they aim to disrupt the market and drive widespread adoption of their innovative battery technology.

As the energy landscape continues to evolve, LiNa Energy's pursuit of affordable, long-duration energy storage technology stands out as a potential game-changer. With their unique chemistry, ceramic advancements, and focus on commercialization in markets with enormous renewable energy potential, LiNa Energy demonstrates a commitment to addressing the world's energy challenges. By challenging the status quo of traditional energy storage systems, LiNa Energy paves the way for a future where efficient and sustainable energy solutions become the norm.

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This conversation has been edited for brevity and clarity. Click here to listen to the full episode.

Digital Wildcatters is a Houston-based media platform and podcast network, which is home to the Energy Tech Startups podcast.

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Virtual power plant from Houston-area company debuts at CES

Powering Up

Brookshire, Texas-based decentralized energy solution company AISPEX Inc. debuted its virtual power plant (VPP) platform, known as EnerVision, earlier this month at CES in Las Vegas.

EnerVision offers energy efficiency, savings and performance for residential, commercial and industrial users by combining state-of-the-art hardware with an AI-powered cloud platform. The VPP technology enables users to sell excess energy back to the grid during demand peaks.

AISPEX, or Advanced Integrated Systems for Power Exchange, has evolved from an EV charging solutions company into an energy systems innovator since it was founded in 2018. It focuses on integrating solar energy and decentralized systems to overcome grid limitations, reduce upgrade costs and accelerate electrification.

Regarding grid issues, the company hopes by leveraging decentralized solar power and Battery Energy Storage Systems (BESS), EnerVision can help bring energy generation closer to consumption, which can ease grid strain and enhance stability. EnerVision plans to do this by addressing “aging infrastructure, grid congestion, increasing electrification and the need for resilience against extreme weather and cyber threats,” according to the company.

One of the company's latest VPP products is SuperHub, which is an all-in-one charging station designed to combine components like solar panels, energy storage systems, fast EV chargers, mobile EV chargers and LCD display screens, into a unified, efficient solution.

“It supports clean energy generation and storage but also ensures seamless charging for electric vehicles while providing opportunities for communication or advertising through its built-in displays,” says Vivian Nie, a representative from AISPEX.

Also at CES, AISPEX displayed its REP Services, which offer flexible pricing, peak load management, and renewable energy options for end-to-end solutions, and its Integrated Systems, which combine solar power, battery storage, EV charging and LCD displays.

“We had the opportunity to meet new partners, reconnect with so many old friends, and dive into discussions about the future of e-mobility and energy solutions,” CEO Paul Nie said on LinkedIn.

In 2024, AISPEX installed its DC Fast chargers at two California Volkswagen locations.

Houston-based energy transition leader talks new role, shares future predictions

new hire

For some companies, all that’s needed to make a seismic shift toward innovation is to hire the right person to steer the organization in a transcendent direction.

Arcadis, a sustainable design, engineering, and consultancy solutions company, is channeling this concept by hiring Masjood Jafri as its new National Energy Transition Strategic Advisor and Business Development Lead. In the role, Jafri will help lead and develop the company’s energy transition business growth and strategy for its interests in the United States alongside Matthew Yonkin, National Energy Transition Solution Leader, based in New York.

“I have a fairly diverse background, with about a decade in the energy industry with an oil and gas, power and petrochemicals background,” says Jafri, who moved to Houston from the U.K. back in 2012. “But prior to that, I had about a decade in the infrastructure world, looking into the transportation market, and the manufacturing sector, as well as working as a lender's advisor in the capital market. So, in this very transformative period, you need to connect all the dots.”

With just over six months in his new role, Jafri leverages his 20 years of experience in leading the successful delivery of capital programs and projects as the strategic advisor to Arcadis’ own capital projects.

“Arcadis is on a journey to be the sustainability partner or sustainable transformation partner for our clients,” Jafri says. “And the path to sustainability goes through energy transition. Arcadis has been investing quite heavily in that space for us to be a leading consulting services provider for energy companies.

Jafri’s hire comes as Arcadis moves its business operations in Houston to a new centralized office in the Galleria area. According to Jafri, this will bring the company’s expertise under one roof. With Houston being the energy capital of the world, Jafri says Arcadis is positioned to lead and deliver results for the energy demand in the United States and globally.

“Houston is the Silicon Valley of energy,” Jafri says. “The challenge is to continue to drive with that force. … We have the talent in the city, we have the right mindset—very entrepreneurial, and obviously a lot of capital commitment to make these changes.

“And it is not just coming from the private sector, it is also coming from the public sector. So, I think the stars are aligning in the context of what is needed for us to have a planet-positive future and Houston being suitably positioned to deliver to that,” he adds.

And while keeping up with the demand for energy and moving towards clean energy are equally important challenges, Jafri is more focused on addressing the latter.

“Clean energy is certainly a bigger challenge because it requires a very broad area of energy sources to come together and to make it cleaner,” Jafri says. “Technologically, some of those things are not ready yet, at least to be scalable in a commercial and profitable way. So that's the challenge. I think it is a clean energy challenge, but obviously, the demand side makes it a bit more complicated.”

Texans, and more specifically Houstonians, have seen firsthand the complications of demand and the pitfalls of energy security and resilience. Addressing these issues, along with many other sustainability challenges, will also be part of Jafri’s core mission at Arcadis.

“As we saw in severe climate conditions, the grid is vulnerable and so are the people connected to the grid,” Jafri says. “The better we can make the grid more resilient and more adaptive to these changes, the more satisfactory conditions will be on the ground for people who are affected.”

Jafri asserts that the industry is already considering numerous options, including all colors of hydrogen, solar, wind and geothermal, in addition to fossil-based energy (natural gas). These measures are already in progress, but consumers are concerned with climate change and, of course, the impact on their electricity bills. Still, states like California, Washington and Texas are making progress.

“I would say by the year 2030 you would start to see a pretty significant movement in the right direction,” Jafri says. “If you look from a federal policy perspective, we want to produce 100 percent of the electricity clean by 2035. That is an expected goal, but it’s all happening.”

Experts reveal top 6 predictions for oil and gas industry in 2025

guest column

If you tune in to the popular national narrative, 2025 will be the year the oil and gas industry receives a big, shiny gift in the form of the U.S. presidential election.

President Donald Trump’s vocal support for the industry throughout his campaign has casual observers betting on a blissful new era for oil and gas. Already there are plans to lift the pause on LNG export permits and remove tons of regulatory red tape; the nomination of Chris Wright, chief executive of Liberty Energy, to lead the Department of Energy; and the new administration’s reported wide-ranging energy plan to boost gas exports and drilling — the list goes on.

While the outlook is positive in many of these areas, the perception of a “drill, baby, drill” bonanza masks a much more complicated reality. Oil and gas operators are facing a growing number of challenges, including intense pressure to reduce costs and boost productivity, and uncertainty caused by geopolitical factors such as the ongoing conflicts in the Middle East and Russia-Ukraine.

From our vantage point working with many of the country’s biggest operators and suppliers, we’re seeing activity that will have major implications for the industry — including the many companies based in and operating around Texas — in the coming year. Let’s dig in.

1. The industry’s cost crunch will continue — and intensify.
In 2024, oil and gas company leaders reported that rising costs and pressure to cut costs were two of the top three challenges they faced, according to a national Workrise-Newton X study that surveyed decision makers from operators and suppliers of all sizes. Respondents reported being asked to find an astonishing 40% to 60% reduction in supply chain-related costs across categories, on average.

Given the seemingly endless stream of geopolitical uncertainty (an expanded war in the Middle East, continued conflict after Russia’s invasion of Ukraine, and China’s flailing economy, for starters), energy companies are between a rock and a hard place when it comes to achieving cost savings from suppliers.

With lower average oil prices expected in 2025, expect the cost crunch to continue. That’s because today’s operators have only two levers they can rely on to drive an increase in shareholder returns: reducing costs and increasing well productivity. Historically, the industry could rely on a third lever: an increase in oil demand, which, combined with limited ability to meet that demand with supply, led to steadily increasing oil prices over time. But that is no longer the case.

2. The consolidation trend in oil and gas will continue, but its shape will change.
In the wake of the great oil and gas M&A wave of 2024, the number of deals will decrease — but the number of dollars spent will not. Fewer, larger transactions will be the face of consolidation in the coming year. Expect newly merged entities to spin off non-core assets, which will create opportunities for private equity to return to the space.

This will be the year the oil and gas industry becomes investable again, with potential for multiple expansions across the entire value chain — both the E&P and the service side. From what we’re hearing in the industry, expect 2 times more startups in 2025 than there were this year.

With roughly the same amount of deals next year, but less volume and fewer total transactions, there will be more scale — more pressure from the top to push down service costs. This will lead to better service providers. But there will also be losers, and those are the service providers that cannot scale with their large clients.

3. Refilling SPR will become a national priority.
The outgoing administration pulled about 300 million barrels out of the country’s Strategic Petroleum Reserve (SPR) during the early stages of the Russia-Ukraine conflict. In the coming year, replenishing those stores will be crucial.

There will be a steady buyer — the U.S. government — and it will reload the SPR to 600-plus million barrels. The government will be opportunistic, targeting the lowest price while taking care not to create too much imbalance in the supply-demand curve. A priority of the new administration will be to ensure they don’t create demand shocks, driving up prices for consumers while absorbing temporary oversupply that may occur due to seasonality (i.e. reduced demand in spring and fall).

The nation’s SPR was created following the 1973 oil embargo so that the U.S. has a cushion when there’s a supply disruption. With the current conflict in the Middle East continuing to intensify, the lessons learned in 1973 will be top of mind.

If OPEC + moves from defending prices to defending market share, we can expect their temporary production cuts to come back on market over time, causing oversupply and a resulting dramatic drop in oil prices. The U.S. government could absorb the balance, defending U.S. exploration and production companies while defending our country's interest in energy security. Refilling the SPR could create a hedge, protecting the American worker from this oversupply scenario.

4. The environment and emissions will remain a priority, and the economic viability of carbon capture will take center stage.
Despite speculation to the contrary, there will be a continuation of conservation efforts and emissions reduction among the biggest operators. The industry is not going to say, “Things have changed in Washington, so we no longer care about the environment.”

But there will be a shift in focus from energy alternatives that have a high degree of difficulty and cost keeping pace with increasing energy demand (think solar and wind) to technologies that are adjacent to the oil and gas industry’s core competencies. This means the industry will go all in on carbon capture and storage (CCS) technologies, driven by both environmental concerns and operational benefits. This is already in motion with major players (EQT, Exxon, Chevron, Conoco and more) investing heavily in CCS capabilities.

As the world races to reach net-zero emissions by 2050, there will be a push for carbon capture to be economical and scalable — in part because of the need for CO2 for operations in the business. In the not-so-distant future, we believe some operators will be able to capture as much carbon as they're extracting from the earth.

5. The sharp rise in electricity demand to power AI data centers will rely heavily on natural gas.
Growth in technologies like generative AI and edge computing is expected to propel U.S. electricity demand to hit record highs in 2025 after staying flat for about two decades. This is a big national priority — President Trump has said we’ll need to more than double our electricity supply to lead the globe in artificial intelligence capabilities — and the urgent need for power will bring more investment in new natural gas infrastructure.

Natural gas is seen as a crucial “bridge fuel” in the energy transition. The U.S. became the world's top exporter of LNG in 2023 — and in the year ahead, brace for a huge push for pipeline infrastructure development in the range of 10-15 Bcf of new pipeline capacity in the next two to three years. (Translation: development on a massive scale, akin to railway construction during the Industrial Revolution.)

Big operators have already been working on deals to use natural gas and carbon capture to power the tech industry; given the significant increase in the electricity transmission capabilities needed to support fast-growing technologies, there will continue to be big opportunities behind the meter.

6. Regulatory processes will become more efficient, not less stringent.
This year will bring a focus on streamlining and aligning regulations, rather than on wholesale rollbacks. It’s not carte blanche for the industry to do whatever it wants, but rather a very aggressive challenge to the things that are holding operators back.

Historically, authorities have stacked regulation upon regulation and, as new problems arise, added even more regulations on top.There will be a very deliberate effort this year to challenge the regulations currently in place, to make sure they are aligned and not just stacked.

The new administration is signaling that it will be deliberate about regulation matching intent. They’ll examine whether or not particular policies are valuable to retain, or reconfigure, or realign with the industry to enable growth and also still protect the environment.

Easing the regulatory environment will enable growth in savings, lower project costs and speed to bring projects online. Another benefit of regulatory certainty: it will make large capital project financing more readily available. We’ve seen major gridlock in large project financing due to a lack of trust in the regulatory environment and potential for rules to change mid-project (see: Keystone XL). If they are certain the new administration will be supportive of projects that are viable and meet regulatory requirements, companies will once again be able to obtain the financing needed to accelerate development and commissioning of those projects.

But we shouldn’t mistake a new era of regulatory certainty for a regulatory free-for-all. Take LNG permits. They should be accelerated — but don’t expect a reduction in the actual level of environmental protection as a result. It currently takes 18 months to get a single permit to drill a well on federal land. It should take three weeks. Before 2020, it took about a month to obtain a federal permit.

2025 will be the year we begin to return to regulatory efficiency without sacrificing the protections the rules and policies set out to accomplish in the first place.

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Adam Hirschfeld and Jacob Gritte are executives at Austin-basedWorkrise, the leading labor provider and source-to-pay solution for energy companies throughout Texas and beyond.