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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CultureMap Emails are Awesome

Future-focused Houston nonprofit names new leader

taking the helm

A nonprofit organization dedicated to leading Houston into the future has named its next leader.

The Center for Houston’s Future named David Gow as president and CEO, succeeding Brett Perlman, who was announced in April to be remaining at the Center with a focus on the Center’s hydrogen initiative. Gow is the founder and chairman of Gow Media, InnovationMap's parent company. His role is effective September 3.

“I am excited to step into this opportunity with the Center and work with the team, the board and many other stakeholders to help shape Houston’s future,” Gow says in a news release. “The Center presents an exciting opportunity to cast a vision for our region and identify initiatives that will make an impact.”

Gow — whose career includes a portfolio of online media properties and ESPN Radio — is a board member of Goose Capital and chair of MSAI, an entity he formed through a SPAC acquisition. Before he founded Gow Media, he served as CFO and CEO of an online watch retailer, Ashford.com. Prior to Ashford, Gow was director of corporate strategy at Compaq Computers and a consultant at McKinsey & Co. He received his master’s in public policy from Harvard and his bachelor's in economics from Williams College.

“David’s portfolio of experiences and skills, record of innovation and success, and deep commitment to the Houston community make him the perfect fit to lead the Center as we chart and execute on our next set of initiatives focused on ensuring a bright future for all residents in the Houston region,” adds Center for Houston’s Future Board Chair Cindy Yeilding.

In his new role, Gow will lead the Center’s next effort, Vision 2050, which plans to identify the city's key issues, gaps, and opportunities.

“Today’s announcement also reflects the success of the Center’s clean hydrogen program,” Yeilding continues. “On behalf of the Center’s board, I’d also like to recognize Brett for launching and building such a successful and important effort as well as his overall leadership and record of achievement at the Center these past seven years.”

Growing Houston energy startup scales local office presence

settling in

On the heels of landing more than $240 million in venture capital, Houston-based geothermal power provider Fervo Energy has more than quadrupled the size of its headquarters.

Fervo previously occupied 5,158 square feet at 114 Main St. in downtown Houston. The company recently left the Main Street space and leased 23,782 square feet at downtown Houston’s 910 Louisiana office tower. Houston-based commercial real estate company Hines owns and manages the 50-story former One Shell Plaza.

“We believe Houston is the center of the energy transition, and downtown Houston has long been its center of activity,” Tim Latimer, co-founder and CEO of Fervo Energy, says in a news release. “The availability of dining options, parks, and biking infrastructure continue to be great assets and a huge draw for our team. For these reasons and more, the only place for Fervo’s headquarters is downtown Houston.”

In February 2024, Fervo announced it had raised $244 million in an investment round led by Oklahoma City, Oklahoma-based hydrocarbon exploration company Devon Energy. Fervo has collected $431 million in funding since its founding in 2017.

Energy companies like Fervo occupy about 43 percent of office space in downtown Houston, according to a new report from the Downtown Houston+ organization. Nineteen new tenants set up shop last year in downtown Houston, with 10 of them operating in the energy sector.

Other energy companies that recently leased office space in downtown Houston include:

  • AES Clean Energy
  • Axip Energy Services
  • EnLink Midstream
  • MRC Global
  • Repsol Renewables
  • Stonepeak

Chevron to relocate HQ, executives to Houston

big move

The Energy Capital of the World is adding another jewel to its corporate crown.

With the impending move of Chevron’s headquarters from Northern California to Houston, the Houston area will be home to 24 Fortune 500 companies. Chevron ranks 15th on this year’s Fortune 500.

Oil and gas giant Chevron, currently based in San Ramon, California, will join three Fortune 500 competitors that already maintain headquarters in the Houston area:

  • Spring-based ExxonMobil, No. 7 on the Fortune 500
  • Houston-based Phillips 66, No. 26 on the Fortune 500
  • Houston-based ConocoPhillips, No. 68 on the Fortune 500

Chevron, which posted revenue of $200.9 billion in 2023, employs about 7,000 people in the Houston area and about 2,000 people in San Ramon. The company says its chairman and CEO, Mike Wirth, and vice chairman, Mark Nelson, will move to Houston before the end of 2024.

In an interview with The Wall Street Journal, Wirth acknowledged Chevron’s differences of opinion with California policymakers regarding energy matters.

“We believe California has a number of policies that raise costs, that hurt consumers, that discourage investment and ultimately we think that’s not good for the economy in California and for consumers,” Wirth said.

Chevron expects all of its corporate functions to shift to Houston over the next five years. Jobs that support the company’s California operations will remain in San Ramon, where Chevron employs about 2,000 people. Some Chevron employees in San Ramon will relocate to Houston.

The company’s move to Houston hardly comes as a surprise. Speculation about a relocation to Houston intensified after Chevron sold its 98-acre San Ramon headquarters in 2022 and moved corporate employees to leased office space. Over the past several years, Chevron has shifted various corporate functions to Houston.

“This is just the final step that many industry observers were waiting to happen,” Ken Medlock, senior director of the Baker Institute’s Center for Energy Studies at Rice University, says in a news release.

“To start, Houston provides a world-class location for internationally focused energy companies, which is why there is such a massive international presence here,” Medlock adds. “Texas is also the nation’s largest energy producer across multiple energy sources and is poised to lead in emerging opportunities such as hydrogen and carbon capture, so Houston is a great place for domestically focused activities as well.”

The announcement of Chevron’s exit from California comes just a year after ExxonMobil finalized its relocation from Irving to Spring.

“Chevron’s decision to relocate its headquarters underscores the compelling advantages that position Houston as the prime destination for leading energy companies today and for the future,” Steve Kean, president and CEO of the Greater Houston Partnership, says in a post on the organization’s website.

“With deep roots in our region,” he adds, “Chevron is [a] key player in establishing Houston as a global energy leader. This move will further enhance those efforts.”

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This article originally ran on EnergyCapital.