Houston energy tech investment group rebrands to address sustainability

Seeing green

Houston-based Sustainability Ventures Group is focused on connecting energy companies to innovative, sustainable solutions. Photo via Getty Images

As the pandemic took its hold on the economy and the energy industry's commodity crisis did its damage, Patrick Lewis understandably assumed that maybe sustainability initiatives might be on the back burner for his network of energy companies.

"We thought we would hear that sustainability in this environment may have slipped down the priority list, but it was the exact opposite," Lewis says. "Pretty consistently across all the operators, sustainability, reducing emissions, and greenhouse gases — those are all even more important today."

This confirmation that the energy industry is committed to innovative sustainability projects led Lewis to rebrand his energy tech investment group from BBL Ventures to Sustainability Ventures Group, or SVG. The investment team focuses on reverse engineering the startup innovation process by sourcing the concerns and goals of the energy companies, then finding solutions from the startup world through reverse pitch competitions and challenges.

"We're not fundamentally changing our business model or investment strategy, but we just wanted to make sure our messaging was crystal clear," Lewis tells InnovationMap.

Lewis says he and his team really thought through the definition of sustainability, and he specifies that, "we're not doing this to go chase solar or wind power — those are on the table — but we think there are two primary opportunities: Digital transformation and emerging technologies in the existing fossil fuel industry and the low carbon value chain," Lewis says.

He adds that oil and gas is going to be around for a long time still, and he cites that by 2040, it's predicted that 40 percent of energy will still come from fossil fuels. It's the big energy companies and providers — which he's working with — that have the power to move the needle on these changes.

"We think there's a real opportunity to pursue efficiencies and reduce emissions and footprint in that existing traditional oil and gas sector," he says.

Earlier this year, Lewis was addressing these concerns by working on standing up a group of industry experts for regular meetings to discuss innovation needs. What started as a call with a handful of people, now hosts 40 people across 14 energy operator and major tech platforms.

"The whole purpose of this group is to share best practices, collaborate on common pain points, risk manage pilots," Lewis says. "We continue to build that group — it's going to be a nonprofit governed by a steering committee."

While SVG has held off on its reverse pitch events, the organization along with the University of Houston Center for Carbon Management submitted a proposal to host the National Science Foundation's Convergence Acceleratoronvergence Accelerator virtual conference at the end of September.

"The goal is to bring together multidisciplinary stakeholders — industry, nonprofit, academics, NGOs, public policy experts — to solve big problems," Lewis says. "Sustainability is a problem they really want to address."

From new tech jobs in Houston to an entrepreneurship minor at Rice University, here are some short stories in Houston innovation. Shobeir Ansari/Getty Images

Rice creates entrepreneurship minor, Houston tech jobs grow, and more innovation news

Short stories

While much of the city's news — along with the rest of the country — has been focused on COVID-19, headlines are starting to resemble some sense of normalcy again.

For this roundup of short stories within Houston innovation, there's a mix of news items pertaining to the coronavirus, as well as news items outside of the pandemic — from a new minor program at Rice University to Baylor College of Medicine testing for a COVID treatment.

Rice University introduces entrepreneurship minor

Rice University plans to offer undergraduate students an opportunity to minor in entrepreneurship. Courtesy of Rice University

Three of Rice University's programs — the Liu Idea Lab for Innovation and Entrepreneurship, Jones Graduate School of Business, and Brown School of Engineering — are teaming up to provide undergraduate students an opportunity to minor in entrepreneurship.

"Entrepreneurship and the creation of new businesses and industries are critical to Houston and Texas' future prosperity and quality of life," says Yael Hochberg, Rice finance professor who leads Lilie, in a release. "Rice students continuously seek to lead change and build organizations that can have real impact on our world. In today's new and uncertain world, the skills and frameworks taught in the new minor are particularly important."

According to a news release, the minor's curriculum will provide students with professional skills within entrepreneurship, such as problem solving, understanding customers and staff, communication, and more. The program will be housed in Lilie, which features a coworking space, graduate and undergraduate entrepreneurship courses, the annual H. Albert Napier Rice Launch Challenge, and other courses.

Houston named No. 12 for tech jobs

Houston's tech jobs are growing — just not at an impressive rate, according to a new report. Christina Morillo/Pexels

CompTIA has released its Cyberstates 2020 report that identifies Houston as No. 12 in the country for tech jobs. However, the Bayou City was ranked No. 38 for job percent growth. Austin and Dallas appear in the top 10 of each of the Cybercities rankings.

According to the report, Houston has a net total of 235,802 tech jobs, an increase of 826 jobs between 2018 and 2019. This figure means a growth of 25,904 jobs between 2019 and 2010. The full report is available online.

While Houston misses the top 10 metros, Texas ranks No. 2 for net tech employment and net tech employment growth. The Lone Star State came in at No. 4 for projected percent change in the next decade. The state was also recognized as No. 2 for number of tech businesses.

Baylor College of Medicine tests existing drug for COVID-19 cure

A Houston institution is looking into an existing vaccine for coronavirus treatment. Andriy Onufriyenko/Getty Images

Baylor College of Medicine researchers — along with colleagues at four other institutions — are testing to see if the bacille Calmette-Guerin vaccine, known as BCG, can work against COVID-19.

"Epidemiological studies show that if you're BCG vaccinated, you have a decreased rate of other infections," says Dr. Andrew DiNardo, assistant professor of medicine – infectious diseases at Baylor, in a news release.

The vaccine has been found to help protect against yellow fever and influenza, and, according to DiNardo, the vaccine could show 30 to 50 percent improvement in immune response in patients with the coronavirus. The team is currently looking for subjects to participate in a clinical trial to test the vaccine.

While research is preliminary, the theory is that BCG changes the way the body responds to a pathogen, according to the release.

"Think of DNA like a ball of yarn," DiNardo explains in the release. "Some pieces of the ball of yarn are open and able to be expressed. Other pieces are wrapped up tight and hidden away, and those genes are repressed. It's a normal way for cells to turn certain genes on and off. BCG opens up certain parts of this ball of yarn and allows the immune system to act quicker."

Plug and Play announces physical space in Houston

Plug and Play Tech Center's local team will work out of the Ion. Courtesy of Rice University

Since entering the Houston market last year, Silicon Valley's Plug and Play Tech Center has hosted numerous events, named its first cohort, and hired Payal Patel to lead the local operations. However, the local operations still, until recently, lacked a plan for a physical space in town.

"Plug and Play intends to set up its permanent office in Houston in Rice's Ion development," says Patel in a statement. "We have engaged in preliminary discussions with Rice Management Company to secure office space for the building's expected Q1 2021 opening."

Until then, says Patel, who is director of corporate partnerships for Plug and Play in Houston, the Plug and Play team will have its base at Station Houston, which recently merged with Austin-based Capital Factory. At present, the local team is hiring to build up its team and has five open jobs on HTX Talent, a job portal for Houston tech.

UH professor named a Guggenheim fellow

A University of Houston professor has been honored with a prestigious award. Photo courtesy of University of Houston

A University of Houston mechanical engineer has been selected for a Guggenheim Fellowship. Pradeep Sharma is the only recipient in the engineering category.

The M.D. Anderson Chair Professor of mechanical engineering and chairman of the department, Sharma uses mathematics and technology to breakdown physical phenomena across a number of disciplines.

The Guggeinheim Foundation has funded more than $375 million in fellowships to over 18,000 individuals since its inception in 1925. This year, the organization selected 173 individuals.

"It's exceptionally encouraging to be able to share such positive news at this terribly challenging time," Sharma says in a news release from UH. "The artists, writers, scholars and scientific researchers supported by the fellowship will help us understand and learn from what we are enduring individually and collectively."

Houston health system to participate in coronavirus plasma study

HCA Houston Healthcare is participating in a plasma treatment program. Getty Images

HCA Healthcare Gulf Coast Division has announced that it will be participating in a national study to see if plasma from recovered COVID-19 patients can help current COVID patients in severe conditions.

"We are proud to take part in this important study. We are asking for the help of our community to spread awareness about plasma donation for patients facing COVID-19 not only in Houston, South Texas and Corpus Christi, but also around the world," says Mujtaba Ali-Khan, chief medical officer at HCA Healthcare Gulf Coast Division, in a news release.

Per the study, the following HCA Healthcare Gulf Coast Division Hospitals will be participating:

  • HCA Houston Healthcare Clear Lake
  • HCA Houston Healthcare Conroe
  • HCA Houston Healthcare Kingwood
  • HCA Houston Healthcare Southeast
  • HCA Houston Healthcare West
  • HCA Houston Healthcare Tomball
  • HCA Houston Healthcare North Cypress
  • HCA Houston Healthcare Northwest
  • HCA Houston Healthcare Mainland
  • HCA Houston Healthcare Medical Center
  • Corpus Christi Medical Center
  • Rio Grande Regional Hospital
  • Valley Regional Medical Center

"This trial is just the first step, but hopefully it will help us determine if plasma transfusions can be a treatment for critically ill patients with COVID-19," says Carlos Araujo-Preza, MD, critical care medical director at HCA Houston Healthcare Tomball, in the release.

Dr. Araujo-Preza safely discharged his first plasma patient last week. The patient is recovering from home following their treatment.

The hospital system is looking for eligible volunteers to donate plasma via the American Red Cross to help treat current patients.

Early stage energy venture firm calls for startups

Industrial software

BBL Ventures is looking for energy companies to pitch. Getty Images

Houston-based BBL Ventures, which looks to connect tech startups to industrial and energy corporations, is seeking energy tech startups to pitch.

"Digital transformation, automation, emerging technologies and sustainability have never been more important to these industries than in this challenging macro environment," says Patrick Lewis, founding managing partner of BBL Ventures, in an email. "We are launching a 6-week challenge campaign to find BEST in class solutions to BIG pain points in the energy and industrial sectors."

In the email, Lewis lists over a dozen challenges or pain points from the organization's corporate partners. The goal would be to find startups with to solutions to any of these identified pain points. Winners of the pitch competition are eligible for POCs, pilots, and funding.

For more information and to submit a pitch, visit BBL's website. BBL is also introducing the program with a virtual kick-off panel on May 21 at 2 pm. Registration is available online.

Meet this week's Houston innovators to know. Courtesy photos

3 Houston innovators to know this week

Who's who

It's safe to say most Houstonians have been glued to their TVs watching the Houston Astros in the World Series, but the city never sleeps on innovation news. And, one of this week's who's who of Houston innovation even has a World Series-worthy technology.

Here are this week's Houston innovators to know.

Patrick Lewis, co-founder of BBL Ventures

Patrick Lewis co-founded BBL Ventures that helps connect energy companies to startups that have innovative technology solutions for their pain points. Courtesy of Patrick Lewis

On last week's episode of the Houston Innovators Podcast, Patrick Lewis, co-founder of BBL Ventures, with his 25-year career in tech investing, took the mic to discuss Houston innovation, the energy tech industry, and BBL's progress with matchmaking big corporations and the startups that can help them stay competitive.

"At our core, we're an investment firm, but our mission statement is to be the innovation partner for the energy and natural resources industry," Lewis says on the podcast. Read more.

Brian DiPaolo, the chief technology officer of Accudata Systems

Through a partnership between two Houston companies, installing breast cancer screening technology is easier than ever. Courtesy of Acudata Systems

It's National Breast Cancer Awareness Month, and the demand for access to detection facilities is rising. Two Houston companies joined forces to help optimize detection.

Brian DiPaolo, the chief technology officer of Accudata Systems, along with Solis Mammography announced a new partnership with the creation of Center-in-a-Box, a technology solution that supports the rapid deployment of breast screening and diagnostic service. Combining IT design, engineering, equipment installation, and go-live support into one full-service package, Center-in-a-Box is forecasted to grow Solis by approximately 30 to 60 new mammography centers within the next 24 months.

"What differentiates Accudata is the services we provide," says DiPaolo. "From procurement and project management to design, installation, and ongoing support, Accudata is a one-stop shop for turning up a new site quickly." Read more.

Ben Fairchild, founder of Fairchild Sports Performance

Ben Fairchild is in the business of keeping athletes — from professionals to amateurs — in top shape. Courtesy of FSP

Sports technology is a burgeoning business and Ben Fairchild, founder of Fairchild Sports Performance, sees the value for its clients. Fairchild has created an app that allows users to stay in shape and access training from anywhere. This has been especially helpful for Fairchild's MLB athletes, which includes World Series athletes George Springer, right fielder for the Houston Astros, and Anthony Rendon, third baseman for the Washington Nationals,

"The FSP app is for anybody who has a body," Fairchild says. "We want to find solutions for long-term health and fitness challenges for people of all walks of life." Read more.

Patrick Lewis co-founded BBL Ventures that helps connect energy companies to startups that have innovative technology solutions for their pain points. Courtesy of Patrick Lewis

Meet the Houston investor that's bridging the gap between big energy companies and startups

Houston innovators podcast episode 4

The energy industry is at an inflection point. In order to compete, oil and gas companies are really focusing on innovation and engaging startups. That's where Patrick Lewis comes in.

Lewis, co-founder of BBL Ventures, has been a tech investor in the Houston innovation ecosystem for about 25 years, and he started seeing an opportunity to help large companies identify their pain points and connect them with startups that have the technology to design solutions. He created BBL Ventures — and an accelerator for its portfolio companies, BBL Labs out of Station Houston — to become a matchmaker of sorts for big corporations and the startups that can help them stay competitive.

"At our core, we're an investment firm, but our mission statement is to be the innovation partner for the energy and natural resources industry," Lewis says on the fourth episode of the Houston Innovators Podcast.

The key element to BBL's model is the reverse-style pitch. Rather than hosting a pitch competition with a wide range of energy tech startups, BBL teamed up with ExxonMobil earlier this year and identified two specific robotics problems and called for startups to pitch solutions.

After the success of the reverse pitch, BBL hosted an Emerging Technology Symposium at The Cannon last month. The event brought together individuals on both sides of the table — the corporates and the startups — further bridging the gap between the two.

Lewis discusses BBL's past success and future plans, as well as what keeps him up at night as a tech investor in Houston on this week's podcast. Check it out below and subscribe wherever you get your podcasts.


ExxonMobil named two winners in its inaugural reverse pitch competition with BBL Ventures. Courtesy of OctoRD

ExxonMobil taps two new technologies in a Houston reverse pitch program

Problem solving

ExxonMobil and BBL Ventures have teamed up to flip the script on pitch competitions. Rather than have startups pitch themselves, the two companies collaborated on a reverse pitch event where Exxon identifies a few problems and search for companies that can build a solution.

The purpose of the event, says Tim Westhoven, technology scouting and venturing at ExxonMobil at the Baytown refinery, was to get the company out of its day-to-day to spark new ideas and innovation.

"Typically, as an engineer, when we think about how we solve a problem, we start inside the organization," Westhoven says at the event, which took place on Wednesday, June 5, at Station Houston. "Then we think about what problems we want to solve. Sometimes, you don't even think at all about what's available on the outside. This reverse pitch is us thinking about the impact we want to have and what the outside can offer."

In his experience, once an organization goes outside itself for solutions, they can find more options to choose from.

"As we cycle through and innovate on these things and find more and more outside solutions to a particular problem, we find the impact scales very quickly," Westhoven says.

The reverse pitch contest, which launched in March, asked for solutions to two problems ExxonMobil employees actually encounter. The first is regarding the opening process equipment, with the goal being to "create a method to stop exposure to flow or residual material," according to the website. The company needs a device that works remotely, thus reducing the risk of exposure and contact with the material for technicians.

The other problem ExxonMobil is looking to solve has to do with reducing arc flash that result in exposure to electrical charges. The company has "identified the promotion of personal safety as a priority action in addressing and reducing negative events on campuses globally," the website says. All the specifics for these two issues are available online.

For both problems, ExxonMobil wants AI and automation involved — and that's deliberate to minimize human involvement, which can lead to error.

"Human error causes 40 to 70 percent of those issues," Westhoven says. "This is why we are looking to robotics and automation to solve this problem."

Seven companies pitched during the evening, and two — one for each solution — were named winners. Here's what solutions stood out to the judges, potentially took home $60,000, and are up for a pilot program at ExxonMobil.

Opening Process Equipment: OctoRD

Courtesy of OctoRD

OctoRD's OPE solution includes using materials that are already available on the market to create a safer solution to the current process. In fact, Kevin Larsen, founder of Phoenix, Arizona-based OctoRD, even brought an early prototype to his pitch to demonstrate for the judges.

"My whole background has been taking technology, applying it to problems, and getting it into production and real life," he says.

OctoRD's product would take 90 days to get to market. It would allow for employees to open and close the device from up to 15 feet away, and, should an emergency occur, would have an automatic shutting feature. While the current model satisfies the requirements for the category, Larsen's pitch even included future ways to advance the tool.

Reducing Arc Flash: CBS ArcSafe

Courtesy of CBS ArcSafe

CBS ArcSafe, based in Denton, Texas, has been around for a while and knows how to increase worker safety using technology, says Justin Gaull, marketing manager for CBS ArcSafe. The company has designed over 700 tools for safety purposes.

"Our business is the business of safety, and decreasing arc flash hazards is our priority," he says to the crowd at the pitch event.

The company's solution would take 10 weeks or less to get from discovery to production to market. The technology includes a switchgear box, the Elliot 230-PM, that syncs with a remote that allows workers to operate well out of the arc flash zone — even up to 300 feet away with the wireless option. There would also be a video camera able to capture a view of the gauges so the operator can see them in real time.

TMCx is looking for members for its ninth cohort. Courtesy of TMCx

Houston software company raises $16.3 million, TMCx opens applications, and more innovation news

Short stories

From rounds closing to accelerator applications opening, there's a lot of Houston innovation news that might not have reached your radar. Here's a roundup of short stories within tech and innovation in the Bayou City.

Need more news rounded up for you? Subscribe to our daily newsletterthat sends fresh stories straight to your inboxes every morning.

Houston software company closes a $16.3 million Series A

Industrial software

Innovapptive raised its round lead by a New York-based firm. Getty Images

Innovapptive, a software-as-a-service company with clients in industrial industries, announced it closed on a $16.3 million Series A investment led by New york-based Tiger Global Management LLC. The company will use the funds for continued global growth. As of the raise's completion, company's valuation is now more than $65 million.

"We are connecting the enterprise by providing a platform that improves real-time data collaboration and communications between the field and back office. The communications and collaboration data are captured and converted into executive insights for continuous workforce optimization," says Sundeep Ravande, CEO and co-founder of Innovapptive, in a press release. "This additional capital will allow us to accelerate our strategy and development to transform the digital experience of the industrial worker to help increase revenues and margins for our customers."

TMCx opens its medical device cohort applications

The deadline to apply for the next TMCx cohort is May 24. Courtesy of TMC

The Texas Medical Center has announced that TMCx's 2019 medical device cohort applications are now open. The deadline to apply is May 24, and selected companies will be notified by June 21. The program will run from August 5 to November 8th. For more information, click here.

Nesh closes Seed round of funding

Aristos Ventures lead the round for the Houston energy startup. Courtesy of Nesh

The Siri of oil and gas, Hello Nesh Inc, has raised its first round of funding thanks to seed funding from Aristos Ventures and a LOOP contract with Equinor Technology Ventures. The funding will be used for new hires and expansion plans.

"Securing LOOP funding from ETV and seed funding from Aristos provides us with a unique mix of strategic knowledge and domain expertise, coupled with investment experience in digital technologies, artificial intelligence, and SaaS," says co-founder and CEO of Nesh, Sidd Gupta in a release. "This will enable us to further build Nesh's petrotechnical and natural language understanding and scale our business in the North America market."

ETV has chosen not to disclose the dollar amount of the round, however last fall Gupta at the Texas Digital Summit, Gupta announced that the company was seeking to close a $800,000 seed round. Read more about the company here.

Shell Oil Co. gives $2.5M to fund research, inform public policy at Rice University’s Baker Institute

Shell and Rice University have entered a partnership. Courtesy of Rice University

Following a $2.5 million commitment from Shell Oil Co., the Center for Energy Studies at Rice University's Baker Institute for Public Policy has announced five-year research program to study the global energy system — including the policies, regulations, geopolitical forces, market developments and technologies.

"We are grateful for Shell's commitment to advancing the study of critical energy issues affecting our region, the nation and the world," says Baker Institute Director Edward Djerejian in a release. "This partnership with Shell furthers our mission to provide unbiased, data-driven analysis of factors that will shape our energy future with the aim of engaging policymakers, corporate leaders and the general public with the results."

Texas improves its ranking as an innovative state

The Lone Star State is moving on up as an innovative state. Getty Images

Texas is slowly but surely moving on up as an innovative state. According to Bloomberg's newest U.S. State Innovation Index, Texas is the 17th best state for innovation. The study factors in six metrics: research and development intensity, productivity, clusters of companies in technology, "STEM" jobs, populous with degrees in science and engineering disciplines, and patent activity. Last year, the study found Texas at the No. 19 spot.

Texas' score was 60.1 — which is just over a point's difference from being in the top 15. It's also worth noting that the Lone Star State is the highest ranked in the south.

"What is most important is the construction and catalyzation of super vibrant advanced industry sectors and clusters in a state," says Mark Muro, a senior fellow at Brookings, a think tank in Washington DC, to Bloomberg. "Commercialization has not been a top priority of universities in the heartland, especially in the South."

Houston companies take home Napier Rice Launch Challenge prizes

Abbey Donnell's startup, Work & Mother, won the award for the Best Alumni team at the H. Albert Napier Rice Launch Challenge at Rice University. Courtesy of Work & Mother

On April 4, 10 teams competed in the H. Albert Napier Rice Launch Challenge at Rice University. Here are the Rice University alumni- and student-led companies that won awards.

  • LilySpec took home $2,500 as the Audience Favorite award winner.
  • CardStock Exchange won $12,500 in the Best Undergraduate category.
  • WellWorth walked away with $12,500 as the Best Graduate team winner.
  • Abbey Donnell, founder of Work & Mother, took home first place the Best Alumni category — along with $12,500.
  • UrinControl was the Grand Prize winner and scored $20,000.

BBL reverse pitch contest extends deadline

The deadline for a new pitch competition with ExxonMobil and BBL Ventures has been extended. Getty Images

BBL Ventures, which announced its reverse pitch competition with ExxonMobil earlier this year, has extended the challenge deadline to May 13.

"BBL Ventures is excited to be working with a forward-thinking partner like ExxonMobil, engaging the external innovation ecosystem is a key step in advancing the energy industry's continued success," says Patrick Lewis, managing partner of BBL Ventures, in a release. Full details for the competition are available here.

Startup Grind Houston is calling all female founders

pitch

Calling all female founders. Getty Images

Houston's Startup Grind chapter announced a female founder pitch event on May 2 at the TMC Innovation Institute. The organization is calling for teams to pitch at the event. The deadline to apply is April 23 at 5 pm.

Click here to nominate yourself or someone else for the pitch.

Sysco invites UH tech students to first-ever UHacks Hackathon competition

Sysco and AWS are teaming up for a hackathon. Getty Images

Houston-based Sysco Corp. — along with Amazon Web Services — is hosting its first-ever, university student-led hackathon event. The one-day competition takes place on Friday, April 19, from 8 am to 5 pm at the new Houston office of AWS ( 825 Town & Country Lane, 10th floor).

The student teams with focus on four hypothetical themes in Sysco's business landscape, including a spend management platform enhancing the customer shopping experience, identifying locally grown foods, proof of purchase technology, and a "best before" portal to streamline expiration data.

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Plans revealed for $2 billion expansion of Houston convention district

coming soon

Mayor John Whitmire and Houston First Corporation shared a new master plan for the George R. Brown Convention Center and its surrounding area last week. The plan features expanded exhibition space, a living roof, a pedestrian plaza with access to Toyota Center and more.

The project will be funded by the state’s portion of incremental Hotel Occupancy Tax revenue growth within a three-mile radius of the GRB for 30 years, which is estimated to total about $2 billion, according to a release from Houston First.

The first phase of the project, which is slated to be completed by 2028, will focus on developing a 700,000-square-foot convention facility known as GRB South.

GRB South will feature:

  • Two exhibition halls, totaling 150,000 square feet
  • A 50,000-square-foot multipurpose hall that opens to the new Central Plaza
  • The 100,000-square-foot Central Plaza, an extension of the Avenida Plaza that will connect to Discovery Green and Toyota Center
  • Atrium flex hall totaling 25,000 square feet
  • 225,000 square feet of contiguous exhibit space
  • A 60,000-80,000-square-foot ballroom
  • Ground-level spaces for retail and restaurants
  • A central atrium, providing each level with natural light

The design of the space is inspired by the Houston area's native prairies and will use low-carbon materials, high-efficiency building systems with rainwater collection and water-reduction strategies. A living roof on top of the GRB South will also have the potential for solar integration.

"It is imperative for us to stay competitive and meet the needs of our meetings and convention customers,” Michael Heckman, president and CEO of Houston First, said in the release. “This project will not only accomplish that but will establish a gathering space that will be the epicenter for entertainment, sports, and city-wide events, accentuating our ability to capitalize on Houston's unique offerings.”

The full campus renovation is expected to wrap in 2038, and construction will be managed in phases. Houston First reports that construction should not impact events currently scheduled as GRB.

“This project is truly transformative for downtown Houston, a lasting legacy that will solidify our position as a top-tier convention and entertainment destination,” Mayor John Whitmire said in the release. “Most importantly, we are creating a space that will build community, foster connection, and shape the future of Houston.”

Explore renderings of the plans below.

  

Rendering courtesy Houston First.

Tech company floats plan for futuristic shipyard on Texas Gulf Coast

Anchors Away

Armed with $600 million in fresh funding, Austin-based Saronic Technologies has set its sights on building a shipyard for producing remotely operated military vessels — and the futuristic shipyard could be located along the Texas Gulf Coast.

The shipyard, dubbed Port Alpha, would manufacture unstaffed midsize and large Navy ships known as “maritime drones.” Defense Newsreported that Texas — with the Gulf Coast being a prime target — is among the places under consideration for the shipyard. A timeline for construction of the shipyard hasn’t been set, and a cost estimate for the project hasn’t been revealed.

“A core principle of Saronic is that we design our vessels for autonomy from the keel up,” Saronic co-founder and CEO Dino Mavrookas, a former Navy SEAL, says in a news release. “We will take the same approach with Port Alpha, designing a shipyard from the ground up to produce at a speed and scale not seen since World War II.”

Saronic says Port Alpha would boost the U.S. shipbuilding industry, which is practically nonexistent. Consulting giant McKinsey & Co. reported in 2024 that the U.S. has gone from building about 5 percent of the world’s ocean-going ships in the 1970s to about 0.2 percent today. China, Japan, and South Korea now dominate global shipbuilding.

“The last years have seen a degradation in the capacity for the United States to build ships and to manufacture core needs of the country. I am excited to back Saronic and its focus on revitalizing shipbuilding in America, while also building products to defend those interests,” says investor and tech entrepreneur Elad Gil, who led the $600 million funding round.

The $600 million round, announced February 18, pushes the value of Saronic to $4 billion. Investors in Saronic, founded in 2022, include Gil, General Catalyst, a16z, Caffeinated Capital, and 8VC.

Last year, Saronic raised $175 million from investors, lifting the company’s value to $1 billion. In 2023, the startup collected $55 million from investors.

In the past three years, Saronic has focused on manufacturing three small remotely controlled vessels, or “maritime drones,” for the Navy: the six-foot-long Spyglass, 14-foot-long Cutlass, and 24-foot-long Corsair. Port Alpha would specialize in much bigger remotely controlled ships for the Navy. The Navy has expressed interest in assembling a modern fleet that combines staffed and unstaffed vessels.

Saronic’s nearly 420,000-square-foot factory in Austin manufactures the Spyglass, Cutlass and Corsair boats.

“The velocity and economics of warfare have fundamentally evolved, and several of our own team have witnessed firsthand how unmanned systems became true force multipliers in Afghanistan and in other theaters of conflict,” says Paul Kwan, managing director of General Catalyst.

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This story originally was published on our sister site CultureMap Austin.

Tesla poised to bring ‘megafactory’ to Houston area with 1,500 jobs

Tesla Talk

Tesla is expected to bring a “megafactory” and 1,500 manufacturing jobs to the Houston area.

According to various news reports this week, Tesla intends to spend $200 million on a facility in Brookshire, Texas. The Waller County Commissioners Court approved tax abatements on March 5 for the new plant.

“We are super excited about this opportunity—1,500 advanced manufacturing jobs in the county and in the city," Waller County Precinct 4 Commissioner Justin Beckendorff said during Wednesday’s Commissioners Court meeting.

Tesla will lease two buildings in Brookshire's Empire West Business Park. According to documents from Waller County, Tesla will add $44 million in facility improvements. In addition, it will install $150 million worth of manufacturing equipment.

As part of the deal, Tesla will invest in property improvements that involve a 600,000-square-foot, $31 million manufacturing facility that will house $2 million worth of equipment and include improvements to the venue.

The facility will produce Tesla megapacks, which are powerful batteries to provide energy storage and support, according to the company. A megapack can store enough energy to power about 3,600 homes for one hour.

Tesla can receive a 60 percent tax abatement for 10 years. According to the tax abatement agreement, Tesla has to employ at least 1,500 people by 2028 in order to be eligible for the tax break.

In addition to the employment clause, Tesla also will be required to have a minimum of $75 million in taxable inventory by January 1, 2026, which will increase to $300 million after three years.

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