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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California-based healthcare co. expands to Houston with new bioskills lab

med skills

Axis Research & Technologies, a California-based healthcare innovation solutions and medical research company, has expanded into the Houston area via a new 10,800-square-foot bioskills lab in Shenandoah last month.

The facility includes a main lab that’s configurable into a single space with over 20 stations, two more lab suites for specialized bioskills training, a conference room for presentations and a large multipurpose area.

Medical professionals can simulate a fully functional operating room in the lab for training and education. It also has the capability of handling cadaver specimens.

The company says the new facility aims to serve surgeons, medical device companies, hospitals and research institutions.

Axis was attracted to Houston thanks to the Texas Medical Center and other world-class medical groups, according to a release from the company. The facility in Shenandoah will be near medical facilities in The Woodlands.

“We are thrilled to expand into the Houston market,” Jill Goodwin, COO of Axis, said in a news release. “This new facility was driven by demand from our clients who have expressed a need for a high-quality bioskills lab in Houston. We repeatedly heard this feedback at the most recent American Academy of Orthopaedic Surgeons (AAOS) conference, which reinforced our decision to bring Axis to the region.”

Axis hosted its first lab event at its Houston-area venue on Feb. 22. The facility is currently accepting bookings for medical trainings, research collaborations and use of its bioskills lab.

“Our goal is to create an environment where groundbreaking medical advancements can take place,” Goodwin added in a news release. “Houston is home to one of the largest medical communities in the country, making it a perfect fit for our expansion.”

Axis' other bioskills labs are located in Nasvhille; Irvine, California; and Columbia, Maryland.

Texas institute grants $12M to bring leading cancer researchers to Houston

cha-ching

Rice University has recruited a prominent Swedish cancer researcher thanks to a $6 million grant from the Cancer Prevention and Research Institute of Texas.

It’s among $68 million in research grants recently awarded by the state agency, and six recruitment grants totaling $16 million to bring leading cancer researchers to Texas.

A news release from the Cancer Prevention and Research Institute of Texas (CPRIT) describes Pernilla Wittung-Stafshede of the Chalmers University of Technology in Gothenburg, Sweden, as “an accomplished and highly gifted biophysical scientist tackling complicated biological questions regarding the role of metals and metal dysregulation in various diseases. She pioneered a new research field around the role of metal ions in the folding and function of metalloproteins.”

Metalloproteins account for nearly half of all proteins in biology, according to the National Institutes of Health. They “catalyze some of the most difficult and yet important functions in [nature], such as photosynthesis and water oxidation,” the federal agency says.

Wittung-Stafshede, a professor of chemical biology and life sciences at Chalmers, is a former professor at Rice.

Aside from the money for Wittung-Stafshede, Houston recruitment grants also went to:

  • University of Texas M.D. Anderson Cancer Center: $2 million to recruit Rosalie Griffin of the Mayo Clinic
  • Baylor College of Medicine: $2 million to recruit Dr. Nipun Verma of the Yale University School of Medicine
  • Baylor College of Medicine: $2 million to recruit Xin “Daniel” Gao of Harvard University and the Massachusetts Institute of Technology

In Houston, cancer research grants were given to:

  • Baylor College of Medicine: $7.8 million
  • M.D. Anderson Cancer Center: $20.7 million
  • Rice University: $ 1 million
  • University of Houston: $1.2 million
  • University of Texas Health Science Center at Houston: $4.5 million

“The awards … represent the depth and diversity of CPRIT funding for cancer research in Texas,” says Kristen Doyle, CEO of CPRIT. “These grants develop new approaches to preventing, diagnosing, treating, and surviving cancer for all Texans.”

See the full list of awards here.