Top Houston-based sustainability startups share their 4 biggest challenges

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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.

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    $12M pharmaceutical manufacturing facility to be built in Sugar Land

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    A nearly $12 million drug manufacturing facility is coming to Sugar Land.

    City leaders in Sugar Land recently approved a $1.3 million performance-based incentive for DeliverIt Group, a Sugar Land-based provider of specialty pharmacy, infusion therapy and clinical care services, for the development of the 60,000-square-foot facility.

    The facility, which will be registered with the U.S. Food and Drug Administration (FDA), will compound medication. The process of drug compounding combines, mixes or alters ingredients to create a medication tailored to a certain patient. A compounded drug is created when an FDA-approved drug can’t meet a patient’s needs.

    The facility, which will employ 55 people, will expand DeliverIt’s offerings from specialty pharmacy and infusion services to advanced pharmaceutical manufacturing. In a press release, the City of Sugar Land says the facility reinforces the suburb’s status as a hub for life sciences and health care innovation.

    DeliverIt, founded in 2010, already employs about 60 people.

    The $1.3 million incentive, to be distributed over the course of 10 years, is being funded through the Sugar Land Development Corporation’s 4A sales tax program.

    “The addition of a pharmaceutical manufacturing operation of this caliber reflects the type of targeted growth we want to see in Sugar Land,” Jennifer Alexander, business development manager for the City of Sugar Land, said in a news release. “Our focus on smart, strategic investment means supporting life sciences innovators in ways that maximize existing assets while driving long-term community prosperity.”

    The current size of the U.S. drug-compounding market is estimated at $7.42 billion, and it’s projected to climb to $12.79 billion by 2035, according to Towards Healthcare Research and Consulting.

    Drug compounding is gaining momentum due to increases in personalized medicine and personal treatment approaches, with growth being supported by aging populations and the rise of chronic illnesses, Towards Healthcare says.

    XSpace plans $250M industrial condo expansion with RAFA Racing Club

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    Houston-based XSpace Group has teamed up with two other Houston companies, RAFA Racing Club and Maximo Capital, to develop five industrial condo projects that pair flex space and high-end car storage space with a members-only clubhouse for motorsports enthusiasts.

    The five projects will be built in the Dallas-Fort Worth; Miami-Boca Raton; Charlotte-Mooresville, North Carolina; Phoenix-Scottsdale; and Los Angeles markets. Other markets, including Las Vegas, are under consideration for future phases.

    XSpace says the initial five-project venture will generate estimated sales of $250 million. Condos will be available to rent or own.

    The ground floor of each project will feature a RAFA Racing Club Social & Performance Centre, a members-only clubhouse, event space and lifestyle hub. The remaining floors will offer space for car storage, collectibles, offices and studios. RAFA will operate the ground floor of each building.

    “Our goal from day one with RAFA Racing has been to connect people through a shared love of performance and community,” Rafael Martinez, founder of RAFA Racing Club and principal of Maximo Capital, said in a news release. “By pairing XSpace’s forward-thinking condominium design with the exclusive hospitality, networking and high-performance environment of a RAFA Racing Club clubhouse, we’re establishing a community blueprint where passion meets community.”

    Each clubhouse will offer:

    • Lounges
    • Dining, working and networking spaces
    • Concierge service
    • Driving simulators
    • Fitness and conditioning capabilities

    “We’re building the most valuable community-driven real estate product in America — and RAFA Racing Club is the anchor that makes it unlike anything else on the market," Byron Smith, founder of XSpace, added in a release. “By integrating our flexible, high-end industrial condominiums with RAFA’s world-class hospitality and automotive community spaces, we are completely redefining what commercial real estate can be for the motorsports enthusiast.”

    RAFA operates facilities for motorsports fans in Houston and Austin. The clubs, geared toward wealthy people, entrepreneurs, executives, and brand partners, combine a clubhouse, garage, paddock (racing’s version of a locker room), a “human performance” center and driver training programs.

    RAFA plans to open seven clubs in the U.S. and three outside the U.S. over the next four years.

    XSpace operates a high-end office, warehouse, and lifestyle condo project in Austin and is building a project in Houston that’s set to open in 2027.

    Walmart expands drone delivery service to 8 new Houston-area stores

    Now Landing

    More Walmart delivery drones are now buzzing around Houston-area skies.

    In January, Walmart launched its drone delivery service in partnership with Wing at five locations in the Houston area. The retail giant just added eight more stores to its Houston-area drone delivery network.

    Wing says the expansion makes drone delivery available to more than 1 million residents of the Houston area. “Many can now bypass notorious Houston traffic to get everyday Walmart essentials delivered by drone in minutes,” Wing said in a release.

    The eight Walmart stores that joined the drone delivery network are:

    • 13003 Tomball Pkwy. Houston
    • 12353 FM 1960 Rd. West, Houston
    • 2901 Riley Fuzzel Rd., Spring
    • 20310 U.S. Highway 59, New Caney
    • 1025 Sawdust Rd., Spring, TX 77380
    • 13484 Northwest Fwy., Houston, TX
    • 13750 East Fwy., Houston
    • 3506 Highway 6 South, Houston

    Stores where drone delivery was already available are:

    • 14215 FM 2100 Rd., Crosby
    • 1313 N. Fry Rd., Katy
    • 15955 FM 529 Rd., Houston
    • 255 FM 518, Kemah
    • 6060 N. Fry Rd., Katy

    Houstonians can learn whether their address is eligible for drone delivery from a Walmart store by visiting wing.com/walmart. Drone-delivered orders can be placed on the Walmart app, the Wing app, or at Walmart.com.

    Once an order is ready, it’s loaded onto a delivery drone. The drone then flies up to 60 mph and at a cruising altitude of about 150 feet to reach the customer’s home. The average flight takes less than 5 minutes.

    Once it arrives at the customer’s home, the drone stops, hovers at roughly 23 feet, and lowers the order via a tether. Wing says its drones gently lower orders to the ground to protect fragile items like eggs and coffee.

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    This article originally appeared on CultureMap.com.

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