Top Houston-based sustainability startups share their 4 biggest challenges

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 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

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    This article originally ran on EnergyCapital.

    This week's roundup of Houston innovators includes Emma Fauss of Medical Informatics Corp., Anas Al Kassas of INOVUES, and Scott Blair of Popable. Photos courtesy

    3 Houston innovators to know this week

    who's who

    Editor's note: In this week's roundup of Houston innovators to know, I'm introducing you to three local innovators across industries — from health tech to energy efficiency — recently making headlines in Houston innovation.

    Emma Fauss, CEO and co-founder of Medical Informatics Corp.

    A Houston startup that created a remote monitoring and care platform has raised millions in financing. Image via michealthcare.com

    Houston-based Medical Informatics Corp. closed a $17 million series B co-led by Maryland-based Catalio Capital Management and California-based Intel Capital. The financing also includes an additional $10 million in debt led by Catalio through Catalio’s structured equity strategy, according to a news release.

    “We are excited to have had this round co-led by Catalio and Intel Capital," says Emma Fauss, CEO and co-founder of MIC, in the release. "Catalio brings significant financial and technical resources, while Intel Capital possesses strong operational and industry experience, and we look forward to continuing to leverage both firms’ expertise as we continue to scale.”

    MIC created an FDA-cleared virtual care platform, called Sickbay, that gives health care providers and hospitals away to remotely monitor patients in any setting with vendor-neutral real-time medical device integration, workflow automation and standardization. Click here to read more.

    Anas Al Kassas, founder and CEO of INOVUES

    INOVUES Founder and CEO Anas Al Kassas joins the Houston Innovators Podcast to discuss how he’s moving the needle on the energy transition within the construction and architectural industries. Photo courtesy of INOVUES

    An architect by trade, Anas Al Kassas says he was used to solving problems in his line of work. Each project architects take on requires building designers to be innovative and creative. A few years ago, Kassas took his problem-solving background into the entrepreneurship world to scale a process that allows for retrofitting window facades for energy efficiency.

    “If you look at buildings today, they are the largest energy-consuming sector — more than industrial and more than transportation,” Kassas, founder and CEO of INOVUES, says on the Houston Innovators Podcast. “They account for up to 40 percent of energy consumption and carbon emissions.”

    To meet their climate goals, companies within the built environment are making moves to transition to electric systems. This has to be done with energy efficiency in mind, otherwise it will result in grid instability.

    "Energy efficiency goes hand in hand with energy transition," he explains. Read more.

    Scott Blair, CEO and co-founder of Popable

    Walmart and Popable are teaming up just in time for the holiday shopping season. Image courtesy of Popable

    With the holidays in full swing, and small businesses looking to gain back revenues lost during the COVID-19 pandemic, Walmart and Houston-based Popable are providing the opportunity to display and sell their products at Walmart can be highly beneficial to recoup profits, and unload new and extra products to a larger audience.

    “Going into the holidays the timing is pretty good for a lot of brands looking to move some access inventory that they have loaded up from last year, but this (hopefully with Walmart) will be a year-round thing,” says Popable CEO and co-founder Scott Blair. “The pop-up opportunities we’ve been seeing with brands doing reach outs so far, a lot of them are looking for stuff into January and February too.”

    Popable has assisted brands secure qualified spaces, get education and resources, and build community, and connections that are vital to helping small businesses expand their visibility in the marketplace. The platform simultaneously helps retail landlords find qualified retailers from a directory of tens of thousands of brands to fill vacancies and drive traffic to their shopping centers. Read more.

    INOVUES Founder and CEO Anas Al Kassas joins the Houston Innovators Podcast to discuss how he’s moving the needle on the energy transition within the construction and architectural industries. Photo courtesy of INOVUES

    Houston innovator on seeing a greener future on built environment

    HOUSTON INNOVATORS PODCAST EPISODE 163

    An architect by trade, Anas Al Kassas says he was used to solving problems in his line of work. Each project architects take on requires building designers to be innovative and creative. A few years ago, Kassas took his problem-solving background into the entrepreneurship world to scale a process that allows for retrofitting window facades for energy efficiency.

    “If you look at buildings today, they are the largest energy-consuming sector — more than industrial and more than transportation,” Kassas, founder and CEO of INOVUES, says on the Houston Innovators Podcast. “They account for up to 40 percent of energy consumption and carbon emissions.”

    To meet their climate goals, companies within the built environment are making moves to transition to electric systems. This has to be done with energy efficiency in mind, otherwise it will result in grid instability.

    "Energy efficiency goes hand in hand with energy transition," he explains.

    Kassas says that he first had the idea for his company when he was living in Boston. He chose to start the business in Houston, attracted to the city by its central location, affordable labor market, and manufacturing opportunities here.

    Last year, INOVUES raised its first round of funding — a $2.75 million seed round — to scale up the team and identify the best markets to target customers. Kassas says 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 says.

    Notably missing from that list is any Texas cities. Kassas says that he believes Houston is a great city for startups and he has his operations and manufacturing is based here, but he's not yet seen the right opportunity and adaption

    "Unfortunately most of our customers are not in Texas," he says. "A lot of work can be done here to incentivize building owners. There are a lot of existing buildings and construction happening here, but there has to be more incentives."

    Kassas shares more about his growth over the past year, as well as what he has planned for 2023 on the podcast. Listen to the interview below — or wherever you stream your podcasts — and subscribe for weekly episodes.

    Window-retrofitting climatetech company has raised its first round of funding. Photo via inovues.com

    Houston startup raises $2.75M to make buildings more energy efficient

    seeing green

    A Houston startup that retrofits windows with smart glass innovations to reduce energy use has raised its first round of funding.

    INOVUES closed its seed round at $2.75 million last month. The oversubscribed round was led by Dallas-based Paulos Holdings with participation from new and existing investors, including Houston-based VC Fuel, Saint-Gobain NOVA, Fund4SE, Momentum Glass, Lateral Capital, E8 Angels, and the Central Texas Angel Network.

    "Our mission is to help cities achieve their energy efficiency and emissions-reduction targets by increasing the rate of window upgrades in existing buildings," says INOVUES founder and CEO, Anas Al Kassas, in a news release. "To achieve that, we have developed a low-carbon, high-ROI retrofit solution that makes upgrading building windows a financially attractive energy conservation measure instead of a massive capital upgrade associated with business disruptions and prohibitive payback periods."

    Up to 40 percent of the energy loss in buildings comes from windows, per the release, and buildings as a whole represent the largest energy-consuming sector. The climatech company's patented Glazing Shield system provides a lower cost and less intrusive solution to complete window replacement.

    "INOVUES is a game-changer in the energy efficiency market because it has developed an innovative, patented building retrofit solution that significantly reduces the energy usage and carbon emissions of existing buildings at a fraction of the cost of more expensive standard building retrofit options," says Ahmad Atwan, founder and CEO of VC Fuel, in the release. "We are excited that INOVUES has been recognized as the industry leader by winning prestigious green building awards on both domestic and international levels. At a time when cities are encouraging, and sometimes mandating, building owners to reduce energy consumption and carbon emissions, INOVUES has become the logical solution to such challenges."

    The fresh funding will go toward growing the INOVUES team, expanding commercialization efforts, and scaling its technology.

    "INOVUES' technology can radically shrink the carbon footprint of 20th-century buildings and help commercial real estate owners meet their sustainability and ESG goals with no tenant disruption and in many cases with payback periods of less than five years plus incentives," says John Paulos, vice president of Paulos Holdings, in the release. "It is exciting for us to be a part of the journey INOVUES is taking to mitigate climate change and accelerate the transition to a sustainable cleaner world."

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    Houston engineers develop breakthrough device to advance spinal cord treatment

    future of health

    A team of Rice University engineers has developed an implantable probe over a hundred times smaller than the width of a hair that aims to help develop better treatments for spinal cord disease and injury.

    Detailed in a recent study published in Cell Reports, the probe or sensor, known as spinalNET, is used to explore how neurons in the spinal cord process sensation and control movement, according to a statement from Rice. The research was supported by the National Institutes of Health, Rice, the California-based Salk Institute for Biological Studies, and the philanthropic Mary K. Chapman Foundation based in Oklahoma.

    The soft and flexible sensor was used to record neuronal activity in freely moving mice with high resolution for multiple days. Historically, tracking this level of activity has been difficult for researchers because the spinal cord and its neurons move so much during normal activity, according to the team.

    “We developed a tiny sensor, spinalNET, that records the electrical activity of spinal neurons as the subject performs normal activity without any restraint,” Yu Wu, a research scientist at Rice and lead author of the study said in a statement. “Being able to extract such knowledge is a first but important step to develop cures for millions of people suffering from spinal cord diseases.”

    The team says that before now the spinal cord has been considered a "black box." But the device has already helped the team uncover new findings about the body's rhythmic motor patterns, which drive walking, breathing and chewing.

    Lan Luan (from left), Yu Wu, and Chong Xie are working on the breakthrough device. Photo by Jeff Fitlow/Rice University

    "Some (spinal neurons) are strongly correlated with leg movement, but surprisingly, a lot of neurons have no obvious correlation with movement,” Wu said in the statement. “This indicates that the spinal circuit controlling rhythmic movement is more complicated than we thought.”

    The team said they hope to explore these findings further and aim to use the technology for additional medical purposes.

    “In addition to scientific insight, we believe that as the technology evolves, it has great potential as a medical device for people with spinal cord neurological disorders and injury,” Lan Luan, an associate professor of electrical and computer engineering at Rice and a corresponding author on the study, added in the statement.

    Rice researchers have developed several implantable, minimally invasive devices to address health and mental health issues.

    In the spring, the university announced that the United States Department of Defense had awarded a four-year, $7.8 million grant to the Texas Heart Institute and a Rice team led by co-investigator Yaxin Wang to continue to break ground on a novel left ventricular assist device (LVAD) that could be an alternative to current devices that prevent heart transplantation.

    That same month, the university shared news that Professor Jacob Robinson had published findings on minimally invasive bioelectronics for treating psychiatric conditions. The 9-millimeter device can deliver precise and programmable stimulation to the brain to help treat depression, obsessive-compulsive disorder and post-traumatic stress disorder.

    Houston clean hydrogen startup to pilot tech with O&G co.

    stay gold

    Gold H2, a Houston-based producer of clean hydrogen, is teaming up with a major U.S.-based oil and gas company as the first step in launching a 12-month series of pilot projects.

    The tentative agreement with the unnamed oil and gas company kicks off the availability of the startup’s Black 2 Gold microbial technology. The technology underpins the startup’s biotech process for converting crude oil into proprietary Gold Hydrogen.

    The cleantech startup plans to sign up several oil and gas companies for the pilot program. Gold H2 says it’s been in discussions with companies in North America, Latin America, India, Eastern Europe and the Middle East.

    The pilot program is aimed at demonstrating how Gold H2’s technology can transform old oil wells into hydrogen-generating assets. Gold H2, a spinout of Houston-based biotech company Cemvita, says the technology is capable of producing hydrogen that’s cheaper and cleaner than ever before.

    “This business model will reshape the traditional oil and gas industry landscape by further accelerating the clean energy transition and creating new economic opportunities in areas that were previously dismissed as unviable,” Gold H2 says in a news release.

    The start of the Black 2 Gold demonstrations follows the recent hiring of oil and gas industry veteran Prabhdeep Singh Sekhon as CEO.

    “With the proliferation of AI, growth of data centers, and a national boom in industrial manufacturing underway, affordable … carbon-free energy is more paramount than ever,” says Rayyan Islam, co-founder and general partner at venture capital firm 8090 Industries, an investor in Gold H2. “We’re investing in Gold H2, as we know they’ll play a pivotal role in unleashing a new dawn for energy abundance in partnership with the oil industry.”

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    This article originally ran on EnergyCapital.

    3 Houston innovators to know this week

    who's who

    Editor's note: Every week, I introduce you to a handful of Houston innovators to know recently making headlines with news of innovative technology, investment activity, and more. This week's batch includes an e-commerce startup founder, an industrial biologist, and a cellular scientist.

    Omair Tariq, co-founder and CEO of Cart.com

    Omair Tariq of Cart.com joins the Houston Innovators Podcast to share his confidence in Houston as the right place to scale his unicorn. Photo via Cart.com

    Houston-based Cart.com, which operates a multichannel commerce platform, has secured $105 million in debt refinancing from investment manager BlackRock.

    The debt refinancing follows a recent $25 million series C extension round, bringing Cart.com’s series C total to $85 million. The scaleup’s valuation now stands at $1.2 billion, making it one of the few $1 billion-plus “unicorns” in the Houston area.

    Cart.com was co-founded by CEO Omair Tariq in October 2020. Read more.

    Nádia Skorupa Parachin, vice president of industrial biotechnology at Cemvita

    Nádia Skorupa Parachin joined Cemvita as vice president of industrial biotechnology. Photo courtesy of Cemvita

    Houston-based biotech company Cemvita recently tapped two executives to help commercialize its sustainable fuel made from carbon waste.

    Nádia Skorupa Parachin came aboard as vice president of industrial biotechnology, and Phil Garcia was promoted to vice president of commercialization.

    Parachin most recently oversaw several projects at Boston-based biotech company Ginkjo Bioworks. She previously co-founded Brazilian biotech startup Integra Bioprocessos. Read more.

    Han Xiao, associate professor of chemistry at Rice University

    The funds were awarded to Han Xiao, a chemist at Rice University.

    A Rice University chemist has landed a $2 million grant from the National Institute of Health for his work that aims to reprogram the genetic code and explore the role certain cells play in causing diseases like cancer and neurological disorders.

    The funds were awarded to Han Xiao, the Norman Hackerman-Welch Young Investigator, associate professor of chemistry, from the NIH's Maximizing Investigators’ Research Award (MIRA) program, which supports medically focused laboratories. Xiao will use the five-year grant to advance his work on noncanonical amino acids.

    “This innovative approach could revolutionize how we understand and control cellular functions,” Xiao said in the statement. Read more.

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