thinking small

Houston Climathon winning microgrid solution is more important now than ever

One of the winning teams at Climathon has an idea for a microgrid system in Houston's emerging innovation corridor. Photo via houston.org

More than 6,000 participants in 145 cities around the world gathered virtually for last year's Climathon, a global event put on by Impact Hub Houston to unite innovators and collaborate on climate solutions. When Winter Storm Uri left the Texas energy grid in a state of crisis, one Climathon Houston team's proposal for energy reliability became all the more important.

Last year, the City of Houston unveiled its first Climate Action Plan to address the city's challenges and strive to lead the energy transition. It was the perfect roadmap for Climathon Houston, a hackathon where eleven teams gathered to develop and pitch a concept to align with the city's new plan.

Of the three winning teams, one idea was prescient in its approach to energy. Six energy-focused Texans drew up plans for InnoGrid, a cost-effective strategy to build the first microgrid in Houston. What started as a pitch has become a developed proposal gaining collaborator and city interest in the wake of Uri.

Bryan Gottfried, Edward D. Pettitt II, Andi Littlejohn, Paresh Patel, Ben Jawdat, and Gavin Dillingham created InnoGrid to to help achieve the CAP's energy transition and net-zero emissions goals. With climate events increasing rapidly, the team of innovators saw an opportunity to create a sustainable solution — the first Houston microgrid.

In just an hour and a half of brainstorming, the team sought to create a similar model to Austin's Whisper Valley microgrid — a project that's currently in development. While Whisper Valley is a master plan community, the team wanted to create a microgrid to support a larger picture: the city of Houston.

"I had been following transactive energy models [such as] peer-to-peer electricity trading like Brooklyn Microgrid/LO3 Energy and Power Ledger since their inception. This inspired my vision for a novel microgrid that would demonstrate such technologies in the energy capital of the world that is otherwise primarily focused on oil and gas, and natural resources," explains Patel, founder and CEO of e^2: Equitable Energy.

When Pettitt joined the group, he proposed the growing Houston Innovation Corridor as the home to InnoGrid. The four-mile stretch between the Texas Medical Center and Downtown is already home to green technology, making it an ideal fit.

"You're going into an area that was already being redeveloped and had this innovation kind of mentality already," explains Gottfried, a geoscientist and current MBA student at University of Houston Bauer College of Business.

After winning Climathon Houston, the team continued to meet weekly in hopes of making InnoGrid a reality.

The case for a microgrid

The InnoGrid team started with the goal of making energy reliable and resilient in the face of climate change. While previous storms like Hurricane Ike have left millions of Texans without power, Winter Storm Uri was one of the most destructive tragedies to face Texas. The unexpected February storm left 4.5 million Texans without electricity and resulted in at least 111 deaths.

As InnoGrid's team members struggled with burst pipes and loss of power, the team juggled the task of submitting a grant application to the Department of Energy during a catastrophic winter storm. The timing was not lost on them.

"It underscored the need for us to do something like this," shares Gottfried.

To understand how impactful a Houston microgrid can be, you first must understand how a microgrid works. A microgrid is a local energy grid made of a network of generators combined with energy storage. The microgrid has control capability, meaning it can disconnect from a macro grid and run autonomously.

Ultimately, microgrids can provide reliability and drive down carbon emissions. Using smart meters, the grids can even provide real-time energy data to show the inflow and outflow of electricity. In the instance a microgrid does go down, it only affects the community — not the entire state. Likewise, during a power outage to the main grid, a microgrid can break away and run on its own.

Microgrids have been deployed by other cities to mitigate the physical and economic risks caused by power outages, but the use of a project like InnoGrid feels especially timely given recent events and the limitations of the Texas Interconnect.

The Texas grid is isolated by choice, separated from the eastern and western interconnects. Texas' isolated energy grid resulted in a massive failure, proving deregulation can certainly backfire. Updating the electric grid has an expensive price tag, but microgrids show a promising and cost-effective model for the future.

"I thought if microgrids and mini-grids are enabling millions in off-grid frontier markets at the base of the pyramid [like Asia, Sub-Saharan Africa, etc.] to essentially leapfrog legacy energy infrastructure, why should we not upgrade our aging power system with the latest tech that is digitalized, decarbonized, decentralized/distributed, and democratized at the top of the pyramid," asks Patel.

Many hospitals, universities, and large technology firms have already established their own microgrids to protect equipment and provide safety. Still, smaller businesses and homes in the community can suffer during outages.

InnoGrid's proposal seeks to use existing and proven renewable energy sources like wind, solar and geothermal energy. The storage technologies used would include battery, kinetic, compressed air, and geomechanical pumped storage.

"From the perspective of an early-stage hardware startup, one of the most important things is finding a way to validate and test your technology," explains Jawdat, founder and CEO of Revterra and adviser to the InnoGrid team. He explains that the microgrid "can also be a testbed for new technologies, specifically, new energy storage technologies," through potential partnerships with companies like Greentown Labs, which is opening its Houston location soon.

Battling inequity 

While the outlook for a community microgrid is enticing, there are also challenges to address. One key challenge is inequity, which is a key focus of Pettitt who was drawn to the team's goal of providing stability for companies and residences in Houston.

Pettitt, who is seeking a Ph.D. in urban planning and environmental policy at Texas Southern University, has a background in public health and frequently works with the Houston Coalition for Equitable Development without Displacement. "I'm really looking at the intersection of the built environment and how to make cities healthier for its residents," he shares.

"A lot of companies are trying to prevent this climate crisis where we have climate refugees that can't live in certain areas because of ecological damage. But in the process, we don't want to create economic refugees from the gentrification of bringing all of these companies and higher-wage jobs into an area without providing folks the ability to benefit from those jobs and the positive externalities of that development," explains Pettitt.

The InnoGrid would plan to provide positive externalities in the form of energy subsidies and potentially even job training for people who want to work on the grid.

Power to the consumer

Much like the gamification in feel-good fitness trackers and e-learning tools, reward systems can inspire friendly competition and community engagement. InnoGrid's proposal seeks to challenge other major cities to build their own grids and compete with a gamified system.

The Innovation Corridor is currently undergoing major redevelopment, the first 16 acres of which are being developed by Rice Management Company and will be anchored by The Ion, which is opening soon. The timing of this redevelopment would allow a prospective project like InnoGrid to build in visual and interactive aspects that depict energy usage and carbon offsetting.

The microgrid's statistics would also engage Houstonians by sharing up-to-date data through dashboards, apps, and even billboards to track Houston's carbon footprint. Pettitt paints a picture of interactive sidewalk structures, leaderboards, and digital billboards in the public realm to showcase how energy is used day-to-day. The team hopes to build positive feedback cycles that encourage tenants and building owners to be more energy-efficient.

"If we're having an Innovation Corridor, an innovation district, I think the built environment should be innovative too," explains Pettitt.

The future of InnoGrid

Every innovation has to start somewhere. While InnoGrid is in its early stages, the team is working to establish partners and collaborators to make the project a reality.

Inspired by projects like the Brooklyn Microgrid, InnoGrid is in the process of pursuing partnerships with utilities and energy retailers to form a dynamic energy marketplace that pools local distributed energy resources. The team hopes to collaborate with microgrid experts from around the nation like Schneider Electric and SunPower. Other potential collaborators include The Ion, CenterPoint, Greentown Labs, and Rice Management Company.

Can Houston remain the energy capital of the world as it transitions to a net-zero energy future? The InnoGrid team wants to make that happen. The argument for a microgrid in Houston feels even more fitting when you look at the landscape.

"If we are going to create an innovative microgrid that also functions as a testbed for innovators and startups, [we] have proximity to some of the biggest utilities and power generation players right in that sector," explains Patel, who is also an inaugural member of Greentown Labs Houston.

"The microgrid itself is not novel. I think what makes it compelling is to situate that right here in the heart of the energy capital as we, again, reincarnate as the energy transition capital world," Patel continues.

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Building Houston

 
 

VR training startup, HTX Labs, has raised funding from an outside investor for the first time. Courtesy of HTX Labs

HTX Labs, a Houston-based company that designs extended reality training for military and business purposes, announced last week that it has raised its first outside capital.

The company has received a $3.2 million investment from Cypress Growth Capital. Founded in 2017, HTX Labs — developer of the EMPACT Immersive Learning Platform — has been granted funding from the Department of Defense as well as grown its client base of commercial Enterprises. The platform uses virtual and extended reality that "enables organizations to rapidly create, deploy, measure, and sustain cost-effective, secure, and centralized immersive training programs, all within engaging, fully interactive virtual environments," per a news release.

“We have been looking to secure outside capital to accelerate the growth of our EMPACT platform and customer base but we hadn’t found the right partner who provided an investment vehicle that matched our needs,“ says HTX Labs CEO Scott Schneider in the release. “We found everything we were looking for in Cypress Growth Capital. They have a non-dilutive funding model that aligns with our capital expectations and have the level of experience that really makes this smart money.

"Cypress has a decade-long track record of success in helping emerging software and services companies achieve scale," he continues. "It is clear that the team’s collective entrepreneurial and operating experience will be of tremendous benefit to us as we focus on expanding our customer base in a very intentional way.”

The fresh funding will go toward growing and scaling the company's operations — both within the current Department of Defense and expansion opportunities into key commercial markets, like heavy industry, manufacturing, and higher education. Additionally, the funding will support increased customer adoption.

“Scott and his team have built an exceptional business that is poised for dramatic growth,” says Cypress Partner Pat McCaffrey in the release. “HTX Labs’ modern, immersive training solution provides clients with a force multiplier for modernizing training and an unmatched ROI.”

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