EnCap is ready to deploy growth capital to advance the energy transition. Photo via Getty Images

A Houston-based energy transition-focused growth capital firm announced the close of its second fund to the tune of $1.5 billion.

EnCap Energy Transition's Fund II, or EETF II, was created to invest in solutions to decarbonize the power industry, and invest in low carbon fuels and carbon management.This second energy transition fund follows EnCap Energy Transition Fund I, a $1.2 billion fund that deployed capital to seven material portfolio company investments and four fund realizations with Broad Reach Power, Jupiter Power, Triple Oak, and Paloma Solar & Wind.

Previously, the company made investment commitments to five portfolio companies through EETF II, including Bildmore Renewables, Linea Energy, Parliament Solar, Power Transitions, and Arbor Renewable Gas. With the Bildmore arm, the EnCap fund aims to fuel development of renewable energy projects that can’t attract traditional tax equity financing.

EnCap expects to have 8-10 portfolio companies in EETF II in total.

"The EnCap Energy Transition team is proud to have raised a sizeable pool of capital to continue to invest in the opportunity created by the shift to a lower-carbon energy system,” EnCap Energy Transition Managing Partner Jim Hughes says in a news release.

“We greatly appreciate the strong support from our existing investor base and are pleased to have added a number of new, high-quality investors, both domestically and internationally," he continues. "Since our inception in 2019, we now manage approximately $2.7 billion of capital commitments to invest in decarbonization and are excited for the opportunities ahead of us."

Recently, EnCap was part of a deal in the battery energy storage business carrying an equity value of more than $1 billion. Engie purchased the majority of a startup . Broad Reach’s battery storage business from EnCap Energy Transition Fund I. Broad Reach launched in 2019 with backing from EnCap.

“We continue to believe all sources of energy are needed to support the world’s growing energy needs and that our Energy Transition Team will build off the significant success achieved to date,” said EnCap Managing Partner Jason DeLorenzo in a news release.

Bildmore expects to invest in 10 to 15 third-party, utility-scale clean energy projects each year. Photo via Getty Images

New platform launches in Houston to invest in clean energy endeavors

eyes on energy transition

Houston-based EnCap Energy Transition Fund has launched a platform that will take minority equity stakes in battery storage systems, solar energy systems, and other energy transition projects in the U.S.

With its new Bildmore arm, the EnCap fund aims to fuel development of renewable energy projects that can’t attract traditional tax equity financing. Bildmore expects to invest in 10 to 15 third-party, utility-scale clean energy projects each year.

Bildmore seeks to capitalize on clean energy incentives tucked into the federal Inflation Reduction Act of 2022, including the ability of projects to sell tax credits. Specifically, the platform says it hopes to address “a chronic short supply” of tax equity deals due to heightened demand triggered by the inflation reduction law.

EnCap is no stranger to utility-scale solar power and battery storage systems. The fund backs Houston-based Broad Reach Power and Austin-based Jupiter Power, two of the largest players in the U.S. market for battery storage.

David Haug leads Bildmore as its CEO. He is co-founder and senior managing director of Houston-based Arctas Capital Group, which invests in energy infrastructure projects.

“Bildmore will focus on … battery storage and solar projects, particularly those which have chosen to leave all or part of their energy output available for ‘merchant’ sale rather than be sold under long-term contracts,” Haug says in a news release. “We want to help those development teams lacking the deep balance sheets typically required by tax equity providers.”

EnCap Investments, sponsor of the EnCap Energy Transition Fund, manages capital from more than 350 U.S. and international investors. Since its founding in 2019, EnCap Investments has raised 25 institutional investment funds totaling about $41 billion to support independent energy businesses in the U.S.

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This article originally ran on InnovationMap.

The city's top power players within Houston's energy innovation ecosystem joined virtual SXSW to weigh in on hot topics — from ESG to the future of the industry's workforce. Photos courtesy

Overheard: Houston innovators discuss ESG, energy transition, cleantech and more at SXSW

Eavesdropping online

The first day of SXSW 2021 — a virtual edition of the Austin-based conference — is on the books, and Houston innovators were no strangers to attendees' screens thanks to Houston House put on by the Greater Houston Partnership.

Day one of the two days of programming focused on all things energy — power storage, corporate venture, ESG, the future of the workforce, and so much more — with interviews hosted by me, Natalie Harms, editor of InnovationMap. Missed out on the fun? Catch up with a few overheard moments from Houston House or stream the full interviews below.

“Successful entrepreneurs are critical for re-investing in the community, and we’re trying to nurture that base now.” — Kirk Coburn, investment director at Shell Ventures

Video courtesy of the Greater Houston Partnership

What are the roles of energy corporations when it comes to innovation development? And what else does a successful innovation ecosystem need? At a virtual SXSW Houston House panel, panelists Kirk Coburn, investment director of Shell Ventures, and Bill Collins, founder and CEO of LO3 Energy, discuss the role of corporate innovation and venture support and the future of energy security. Click here to watch the full interview.

“If we’re going to improve performance in the energy industry, we are going to have to work better together and collaborate together.” — Al Carnrite, president and CEO of Carnrite Group

Video courtesy of the Greater Houston Partnership

Environmental, social, and governance, aka ESG, has the power to disrupt the energy transition and has already made a huge impact on energy company's short- and long-term goals. At a virtual SXSW Houston House panel, Andrew Bruce, founder and CEO, of Data Gumbo, and Al Carnrite, president and CEO of Carnrite Group discuss the emergence of ESG and how it's affecting the global energy transition. Click here to watch the full interview.

“While Houston remains the energy capital of the world, Houston is much, much more than oil and gas. Innovators in Houston are leading the charge towards creating a lower carbon future.” — Mayor Sylvester Turner

Video courtesy of the Greater Houston Partnership

How's business in Houston? At a virtual SXSW Houston House HOU Talk, Mayor Sylvester Turner gives an update on how the innovation ecosystem has developed over his tenure. Click here to watch the full interview.

"Houston is a renewable energy capital that no one knows about — in addition to being the energy capital.” — Emily Reichert, CEO at Greentown Labs

Video courtesy of the Greater Houston Partnership

In order to maintain its role as the energy capital of the world, Houston needs to advance its role in clean energy innovation. Greentown Labs, which is opening its new Houston facility in just a matter of months, will help move that needle locally. At a virtual SXSW Houston House HOU Talk, Emily Reichert, CEO of Greentown Labs, shares how Greentown Houston will act as a convener and a place to spark cleantech innovation. Click here to watch the full interview.

“We think material science is the new tech boom. And Houston is the place to be for it.” — Mike Francis, CEO and co-founder of NanoTech

Video courtesy of the Greater Houston Partnership

Houston's no stranger to engineering and physical science. Over the past several decades, the city has accumulated major hard tech businesses and talent within oil and gas. Now, it's time to lean on that infrastructure to allow for a hard tech and material science revolution. At a virtual SXSW Houston House panel, Dale Winger, managing director at Halliburton Labs, and Mike Francis, CEO and co-founder of Nanotech, discuss how materials science plays a major role in advancing the energy transition. Click here to watch the full interview.

“This isn’t your daddy’s oil patch. This is an opportunity where we can really leverage the people we have in the city to drive us forward.” — Katie Mehnert, founder and CEO of Ally

Video courtesy of the Greater Houston Partnership

What does the future of the energy workforce look like? For one, it looks way different from decades past. At a virtual SXSW Houston House HOU Talk, Katie Mehnert, founder and CEO of ALLY, weighs in on how diversity — racial, gendered, and even generational — is extremely key moving the industry forward. Click here to watch the full interview.

“We are seeing now this inflection point where there is this next build out of utility. Texas in particular is a great proving ground.” — Doug Moorehead, managing partner and CTO of Broad Reach Power

Video courtesy of the Greater Houston Partnership

On the heels of the state's worst winter storm power outage, the energy and power industries are rethinking weatherization and power storage for the future. At a virtual SXSW Houston House HOU Talk, Doug Moorehead, managing partner and CTO of Broad Reach Power, discusses the future of energy storage and how profoundly important it is toward preventing another winter storm power outage like Texas experienced in February. Click here to watch the full interview.

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Abbott assembles expert team to help lure U.S. Space Academy to Texas

space race

State Rep. Greg Bonnen of Friendswood has been tapped to lead a new team that will promote Texas as the future home of the U.S. Space Academy.

Bonnen, a neurosurgeon, chairs Houston Physicians’ Hospital and the powerful Texas House Appropriations Committee. His House district is close to NASA’s Johnson Space Center.

Gov. Greg Abbott appointed the seven-member team. Last month, President Trump signed an executive order establishing the Presidential Commission on the U.S. Space Academy. Commission members, who held their first meeting this month, will recommend a permanent location for the academy.

Texas officials are pushing a site near Johnson Space Center to host the academy. Alabama, Colorado and Florida are among Texas’ competitors.

In a joint statement, U.S. Sen. Ted Cruz and U.S. Rep. Brian Babin, both of Texas, issued a statement backing the state’s bid for the academy. Cruz lives in Houston. Babbin lives in Woodville, about 55 miles south of Beaumont.

“America’s space program is built across the country, but Texas is where the pieces come together,” the lawmakers said. “We are ready to lead the next generation of space pioneers and look forward to showing why Texas is the right home for the U.S. Space Academy.”

The academy’s curriculum will include technical education, leadership development and public service components. Graduates will be set up for careers in the U.S. military, civil service, and aerospace sectors.

The Abbott-appointed team will work with the Texas Space Commission to prepare the state’s proposal for the academy.

In addition to Bonnen, team members with ties to Houston include:

  • Robert Ambrose, who grew up in Houston. He worked at Johnson Space Center before becoming associate director of the Texas A&M Space Institute.
  • Former NASA astronaut Nancy Curry-Gregg, director of the Texas A&M Space Institute. She earned a doctoral degree from the University of Houston and previously worked at Johnson Space Center.
  • Former NASA astronaut Jack Fischer, senior vice president of Houston-based Intuitive Machines. The company builds spacecraft, delivers payloads to the moon and launches satellites.

“Texas is the home of America’s human spaceflight program,” Abbott said in a release. “No state can match what Texas brings to this mission.”

“NASA’s Johnson Space Center, world-class universities, a premier commercial space industry, major military installations, and an unmatched aerospace workforce give Texas every asset the United States Space Academy requires,” the governor added.

Houston space companies take off with new tech, deals and contracts

space update

Space City has had a busy month.

Houston-based aerospace institutions Venus Aerospace, Axiom Space, and Aegis Aerospace have each recently announced advancements in their respective fields that include expansions and new contracts from U.S. and international government agencies.

Here’s the latest:

Venus launches new test stand

Earlier this month, Venus Aerospace added infrastructure to support the ongoing progress of its Rotating Detonation Rocket Engine (RDRE) with the opening of its new propulsion test stand at the Houston Spaceport.

The Texas Space Commission's Space Exploration and Aeronautics Research Fund is funding the test stand, which is part of a larger effort from the state to increase investments in the aerospace economy. The ribbon-cutting event on Sept. 10 welcomed officials from Venus Aerospace, the Texas Space Commission, the Houston Spaceport, Houston business and local community leaders.

With the new stand, Venus will be able to test at higher thrust and for longer durations, which will allow the company to better replicate real-life conditions.

"Building and testing propulsion systems at this pace requires the right infrastructure around the technology," Sassie Duggleby, CEO and co-founder of Venus Aerospace, said in a news release. "We're grateful to the Texas Space Commission and the State of Texas for investing alongside companies like Venus. Public investment like this helps companies move faster and keeps critical aerospace capability growing here in Texas."

Venus closed a $91 million Series B in July and expanded its leadership team.

Axiom partners in Europe

Axiom Space has signed a memorandum of understanding with the European Space Agency for “sustained European access to low-Earth orbit (LEO)” following the retirement of the International Space Station, according to a news release from the company.

Under the agreement, Axiom and the ESA agreed to explore future astronaut missions on the ISS and Axiom Station, research, transportation and spacesuit partnerships. The organizations will explore using the ESA’s European Cargo Return service and potentially a future European crew vehicle to support operations at Axiom Station, the company's forthcoming commercial space station. The partnership could also involve Axiom's AxEMU spacesuit for orbital and lunar applications, according to the release.

“With the upcoming de-orbitation of the ISS, it is our duty to anticipate and prepare future solutions to ensure our access to low-Earth orbit,” Daniel Neuenschwander, director of human and robotic exploration at ESA, said in the release. “The two documents signed today underline both our commitment to safeguard our ability to pursue in-orbit science and to keep offering flight opportunities to our European astronaut corps, as well as the growing interest of international partners for our ongoing project to develop an autonomous European cargo vehicle.”

The announcement comes as Axiom has made several international moves this year. The company shared plans to establish Axiom Space Switzerland this summer and launched Axiom Space Japan in July.

"The path to a sustainable human presence in space runs through international collaboration — reliable supply chains, shared innovation, and partners who bring real capability," Jonathan Cirtain, CEO and President of Axiom Space, said in the release. "Europe's contributions to microgravity science and deep space technology make ESA exactly that kind of partner. This MoU strengthens our work together, and we look forward to ESA and its member states joining us as customers for future astronaut missions."

Aegis expands DoW deal

Webster, Texas-based Aegis Aerospace announced that it has won a new task order to continue supporting the U.S. Space Force’s Space Test Program.

The contract starts in October and covers designing, building, testing and operating Department of War payloads or equipment on NASA, government, and commercial launch vehicles and platforms. The contract was issued by the USSF Space Systems Command, Space Test Program under NASA Johnson Space Center’s Research, Engineering, and Mission Integration Services 2 (REMIS 2).

Currently, the company is working on three payload facilities on the ISS and has plans for two more in development.

“Aegis Aerospace is grateful to continue our exceptional payload integration support to the USSF and the STP to meet their critical mission objectives,” President Matt Ondler added in the release. “This work is more important than ever to maintain U.S. superiority in space. This new contract will take us beyond the current life of the ISS and see us integrate and test payloads on commercial space stations, free-flyers, and cislunar missions.”