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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Houston-based equitable entrepreneurship tech platform expands programs

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Fresh off of celebrating the dismissal of a lawsuit from former Trump Administration officials, Hello Alice is expanding some of its offerings for entrepreneurs.

In partnership with top organizations — like Progressive, Antares Capital, Wells Fargo, and FedEx — Hello Alice has added new offerings for its 2024 Boost Camp programs, a mix of skill-building support and grant opportunities.

“We are fortunate to continue working with great enterprise partners who share our commitment to supporting Main Street through crucial grants and mentorship programs,” Carolyn Rodz, CEO and co-founder of Hello Alice, says in a news release. “Small businesses drive our economy, yet often lack the necessary financing and resources. By partnering with major companies, Hello Alice is ensuring that small businesses have access to the tools and opportunities they need to thrive and create jobs in their local communities. Together, we are building a robust support system that fosters innovation and growth for small businesses across the country.”

This year's programs, according to Hello Alice, are as follows:

  • Antares Capital REACH Cohort: The Antares REACH Grant Program provides $20,000 grants to small businesses. Grant recipients will also take part in Antares’ Growth Track Boost Camp program, a digital community which will be home to monthly business coaching workshops, mentorship, networking, and more. Applications are open until June 28, and the program begins August 8.
  • Progressive Driving Small Business Forward Grant & Booster Camp Program: Progressive is dedicating $1 million to award 20 deserving businesses with a $50,000 grant each. Grant recipients will be invited to attend an exclusive 12-week virtual Boost Camp coaching program. Applications have closed for the program beginning September 10.
  • Wells Fargo: Wells Fargo is supporting four virtual accelerator programs over the next 18 months, designed to support up to 500 participants for each program, with a focus on business health and credit-building practices. Applications will be announced this summer for the program, which will begin in early fall.
  • FedEx: The FedEx Entrepreneur Fund supports entrepreneurs in the United States by providing them with the necessary funding, resources, and networks to enhance the success of their businesses, including the Boost Camp coaching program.
  • Applications will be announced this fall for the program, which will begin in the winter.

More information and application access is available online.

Last year's Boost programs benefitted 100 small businesses, according to Hello Alice, which reported that the 2023 Antares REACH Cohort resulted in 60 percent of participants seeing an increase in their Business Health Score and 93 percent felt better equipped to confront challenges and capitalize on opportunities. In the end, 85 percent of participants feeling more optimistic about their business growth prospects.

"Hello Alice is proud to partner with high-level enterprise companies to empower small businesses and foster their success," Natalie Diamond, vice president of business development at Hello Alice, adds. "Together, we are creating unparalleled opportunities for entrepreneurs to achieve brand success, drive financial fitness, and thrive in today's competitive market. Our joint endeavors not only offer access to capital and resources but also provide tailored guidance and mentorship, arming small business owners with the insights and support necessary to navigate challenges and seize growth opportunities.”

Houston company's sustainable oil product reaches milestone production capacity 5 years early

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Houston-based biotech company Cemvita has achieved a key production goal five years ahead of schedule.

Thanks to technology advancements, Cemvita is now capable of generating 500 barrels per day of sustainable oil from carbon waste at its first commercial plant. As a result, Cemvita has quadrupled output at the Houston plant. The company had planned to reach this milestone in 2029.

Cemvita, founded in 2017, says this achievement paves the way for increased production capacity, improved operational efficiency, and an elevated advantage in the sustainable oil market.

“What’s so amazing about synthetic biology is that humans are just scratching the surface of what’s possible,” says Moji Karimi, co-founder and CEO of Cemvita. “Our focus on the first principles has allowed us to design and create new biotech more cheaply and faster than ever before.”

The production achievement follows Cemvita’s recent breakthrough in development of a solvent-free extraction bioprocess.

In 2023, United Airlines agreed to buy up to one billion gallons of sustainable aviation fuel from Cemvita’s first full-scale plant over the course of 20 years.

Cemvita’s investors include the UAV Sustainable Flight Fund, an investment arm of Chicago-based United; Oxy Low Carbon Ventures, an investment arm of Houston-based energy company Occidental Petroleum; and Japanese equipment and machinery manufacturer Mitsubishi Heavy Industries.

Tech disruptions sparked by Texas co.'s update highlight the fragility of globally connected technology

Airlines, banks, hospitals and other risk-averse organizations around the world chose cybersecurity company CrowdStrike to protect their computer systems from hackers and data breaches.

But all it took was one faulty CrowdStrike software update to cause global disruptions Friday that grounded flights, knocked banks and media outlets offline, and disrupted hospitals, retailers and other services.

“This is a function of the very homogenous technology that goes into the backbone of all of our IT infrastructure,” said Gregory Falco, an assistant professor of engineering at Cornell University. “What really causes this mess is that we rely on very few companies, and everybody uses the same folks, so everyone goes down at the same time.”

The trouble with the update issued by CrowdStrike and affecting computers running Microsoft's Windows operating system was not a hacking incident or cyberattack, according to CrowdStrike, which apologized and said a fix was on the way.

But it wasn't an easy fix. It required “boots on the ground” to remediate, said Gartner analyst Eric Grenier.

“The fix is working, it’s just a very manual process and there’s no magic key to unlock it,” Grenier said. “I think that is probably what companies are struggling with the most here.”

While not everyone is a client of CrowdStrike and its platform known as Falcon, it is one of the leading cybersecurity providers, particularly in transportation, healthcare, banking and other sectors that have a lot at stake in keeping their computer systems working.

“They’re usually risk-averse organizations that don’t want something that’s crazy innovative, but that can work and also cover their butts when something goes wrong. That’s what CrowdStrike is,” Falco said. “And they’re looking around at their colleagues in other sectors and saying, ‘Oh, you know, this company also uses that, so I’m gonna need them, too.’”

Worrying about the fragility of a globally connected technology ecosystem is nothing new. It's what drove fears in the 1990s of a technical glitch that could cause chaos at the turn of the millennium.

“This is basically what we were all worried about with Y2K, except it’s actually happened this time,” wrote Australian cybersecurity consultant Troy Hunt on the social platform X.

Across the world Friday, affected computers were showing the “blue screen of death” — a sign that something went wrong with Microsoft's Windows operating system.

But what's different now is “that these companies are even more entrenched,” Falco said. "We like to think that we have a lot of players available. But at the end of the day, the biggest companies use all the same stuff.”

Founded in 2011 and publicly traded since 2019, CrowdStrike describes itself in its annual report to financial regulators as having “reinvented cybersecurity for the cloud era and transformed the way cybersecurity is delivered and experienced by customers.” It emphasizes its use of artificial intelligence in helping to keep pace with adversaries. It reported having 29,000 subscribing customers at the start of the year.

The Austin, Texas-based firm is one of the more visible cybersecurity companies in the world and spends heavily on marketing, including Super Bowl ads. At cybersecurity conferences, it's known for large booths displaying massive action-figure statues representing different state-sponsored hacking groups that CrowdStrike technology promises to defend against.

CrowdStrike CEO George Kurtz is among the most highly compensated in the world, recording more than $230 million in total compensation in the last three years. Kurtz is also a driver for a CrowdStrike-sponsored car racing team.

After his initial statement about the problem was criticized for lack of contrition, Kurtz apologized in a later social media post Friday and on NBC's “Today Show.”

“We understand the gravity of the situation and are deeply sorry for the inconvenience and disruption,” he said on X.

Richard Stiennon, a cybersecurity industry analyst, said this was a historic mistake by CrowdStrike.

“This is easily the worst faux pas, technical faux pas or glitch of any security software provider ever,” said Stiennon, who has tracked the cybersecurity industry for 24 years.

While the problem is an easy technical fix, he said, it’s impact could be long-lasting for some organizations because of the hands-on work needed to fix each affected computer. “It’s really, really difficult to touch millions of machines. And people are on vacation right now, so, you know, the CEO will be coming back from his trip to the Bahamas in a couple of weeks and he won’t be able to use his computers.”

Stiennon said he did not think the outage revealed a bigger problem with the cybersecurity industry or CrowdStrike as a company.

“The markets are going to forgive them, the customers are going to forgive them, and this will blow over,” he said.

Forrester analyst Allie Mellen credited CrowdStrike for clearly telling customers what they need to do to fix the problem. But to restore trust, she said there will need to be a deeper look at what occurred and what changes can be made to prevent it from happening again.

“A lot of this is likely to come down to the testing and software development process and the work that they’ve put into testing these kinds of updates before deployment,” Mellen said. “But until we see the complete retrospective, we won’t know for sure what the failure was.”