Energy software company picks Houston as U.S. HQ

home sweet houston

Last year, London-based Octopus Energy established its U.S. headquarters in Houston. Image via octopus.energy

Kraken Technologies, the software licensing arm of Octopus Energy Group, has picked Houston for its U.S. headquarters and aims to eventually employ hundreds of people here.

Within the first year, Kraken will create at least 50 new jobs in Houston, the company says. Employees here will work on rolling out the Kraken offering across the U.S.

“The decision to make Houston the [U.S.] home of Kraken recognizes this city’s growing reputation as a tech center,” Richard Hyde, British consul general in Houston, says in an Octopus Energy news release.

Last year, London-based Octopus Energy established its U.S. headquarters in Houston.

The Kraken platform, which launched three years ago, helps customers manage the entire energy supply chain, such as understanding customers’ energy consumption in real time and optimizing alternative energy sources. The platform hopes to reach 100 million customer accounts by 2027.

Octopus Energy explains that Kraken, based on advanced data and machine learning, helps create a “decentralized, decarbonized energy system.”

“Energy is one of the few global sectors still undisrupted by tech – Kraken changes that. It is essentially a big robot that eliminates all the inefficiencies that energy companies have built up over the decades, automating repetitive tasks, allowing humans to do what they are best at, and unlocking smart products,” says Greg Jackson, founder and CEO of Octopus Energy.

Octopus Energy supplies green energy to more than 3 million retail customers around the world. It entered the U.S. market in 2020. The company is valued at nearly $5 billion.

Alex Reed, co-founder and CEO of Fluence Analytics, joined InnovationMap for a Q&A on the company's move to Houston and its growth plans. Photo courtesy of Fluence Analytics

Fresh off $7.5M funding, this new-to-Houston tech company plans to grow and expand in life science space

q&A

Founded in 2012 in New Orleans, a tech company that provides software and hardware solutions for the chemicals industry has entered its next phase of growth by moving its headquarters to Houston following a $7.5 million venture capital raise

Fluence Analytics, which announced its recent raise led by Yokogawa Electric Corp. last month, has officially moved to the Houston area. The company's new HQ is in Stafford. Alex Reed, co-founder and CEO of the company, joined InnovationMap for a Q&A about what led up to the move and the future of the company, which includes expanding into the life science field.

InnovationMap: Tell me about Fluence Analytics — what does the technology do and why did you decide to start the company?

Alex Reed: We have developed a patented technology that can optimize chemical production. We basically are able to measure what's happening in real time in a process. Imagine if you're baking a cake, and you follow this recipe and sometimes you get the cake you want, sometimes it's too dry, and sometimes it's not cooked enough. And so the polymers industry, for simplistic terms, has that type of an issue. You don't really know exactly where you're at your equipment behaves differently. Basically, what we're able to do is give them real-time information on what's happening as they're baking the cake so that every time they can get a perfect cake.

We have a software and hardware solution that we install in these plants to get these measurements so that our customers can optimize production — and they want to do that to improve their yield, reduce waste, increase safety, and improve quality. There are a lot of different reasons that companies are interested in our technology and we have managed to grow globally. We have customers in Asia, Europe, and the U.S.

We spun out of Tulane University. It's an interesting story because my dad is the inventor of the technology — he's a physics professor at Tulane. I grew up working in the lab with him literally since the age of 12, and I was super interested in technology and science and saw that he was working with all these chemical companies. They were always very interested in what he was working on. I got to the point where I realized that I didn't want to be a scientist — I was far more interested in the commercialization and how you go from lab to product. That transition is very difficult. So, I stepped into the role of the entrepreneur. We had the patents and technology for my dad, I had an excellent mentor, and then our other co-founder was a technical founder.

IM: When and why did you start considering an HQ move? 

AR: We raised our first institutional venture funding in April 2017. Up until that point, it was primarily working with customers and grant funding. We worked with actually a group that has an office here called Energy Innovation Capital. They came in and invested in us and supported us, and George Coyle joined our board.

So, we had that tie to Houston, and I was in Houston a lot because there was a concentration of partners and customers — and not just like chemical plant customers, but also technology and R&D centers. As we started to scale, we brought on some other investors — Mitsubishi Chemical, JSR Corp., and most recently Yokogawa Electric Corp., which has its North American headquarters in Sugar Land.

We started to just build momentum towards it. I'd say we first had the conversations pre-COVID and then COVID hit, and we'd kind of just stopped everything for a while, just to make sure we knew where the business was heading. We've made it through COVID fine and did well on coming out of it. Then we felt it was the right time to pick that thread back up. We knew it made sense. The labor pool is amazing here, and there's just so many reasons why we were looking at it. So then we just pulled the trigger.

IM: How did you decide on the Houston area? What drew you to Stafford?

AR: Initially, we had a little landing pad in the East End Maker Hub, so we got in there and they were awesome. We actually had started hiring remote people here in 2019 because we knew the move was going to happen at some point. We had a place for them to go work out of EEMH while we searched for a permanent facility. We connected with the Greater Houston Partnership, and they plugged us in to Houston Exponential, and they have been very good at introducing us to the right people. We just don't know the lay of the land to be honest, so they've been a great resource. We were looking originally on the northside of Houston, and then we saw the Stafford area. There's a huge concentration of similar type companies — automation, some software, some hardware. There were some tax advantages. We settled in the Stafford area and are very happy with the choice we made to end up here.

IM: I know you recently raised a $7.5M venture funding round. What does that funding mean for growth?

AR: Like any capital, the objective is to use it to grow. For us, "grow" has several different areas. One is the product. There's a very long roadmap of both hardware and software improvements that we want to make. So basically we're accelerating a lot of the things on our roadmap to do things like closed-loop control based on our data — imagine running a whole plant autonomously based on measurements that we're making. We're moving more and more toward that autonomous operation world and improving a lot of the actual underlying hardware, making the measurements, building out sales and marketing as we start to serve more and more customers. Product sales and marketing and customer success are the areas that we're scaling.

IM: As you grow your local team, what are you looking for?

AR: Field applications, software, some automation technicians, and more. We do have some life science applications. So, in addition to our core area on the chemical side, we have a product we've sold into biopharma, and so we want to grow some of that. We're actually hiring for a product manager for the life science side of the business. So, that one's a pretty unique opportunity and role.

IM: Considering your life science application, it seems like Houston is a good fit for that vertical as well, right?

AR: We're working with the Houston of today, but also the Houston of tomorrow, which is this life science play. The next phase is kind of following that innovation value chain. So, figuring out what's the R&D and manufacturing of these pharmaceuticals, and how you can attract more of those technology centers and factories to make the stuff here. If you look at the talent pool here, those resources are somewhat fungible with the resources that serve petrochemical and oil and gas.

This cross pollination I think actually could be quite an interesting differentiator for Houston if the city can build that critical mass. So yes, I think there is an opportunity for us to leverage this vision that Houston has for life science. Now, we'll still have to go to the coast to go to our customers, but I think talent pool, and eventually you might even have customers here. It's certainly feasible.

------

This conversation has been edited for brevity and clarity.

NRG's sole HQ will be in Houston. NRG.com

Energy giant makes Houston sole headquarters in massive move

HQ move

Power player NRG Energy is laser focused on Houston. The Bayou City will be the energy giant's new sole headquarters; the company will no longer split between Houston and Princeton, New Jersey.

The move to a single headquarters simplifies business operations, as a large number of the company's employees and customers reside in Texas, the company noted in a press release and report.

The company, having recently acquired Direct Energy, will maintain regional offices in the markets that it serves and "evaluate real estate needs and consolidate as appropriate," the report adds.

Mayor Sylvester Turner welcomed the news in a statement, relaying that he and his team have had "substantive conversations" with NRG president and CEO Mauricio Gutierrez. "I believe the decision is confirmation that Houston is a smart city for business," said Turner.

Texas Gov. Greg Abbott also chimed in, adding in part:

With this move, NRG joins 50 other Fortune 500 companies headquartered in Texas, including 22 in the Houston area alone. America's leading businesses continue to invest in Texas — and grow jobs in Texas — because of our welcoming business climate, low taxes, reasonable regulations, and our young, growing, and skilled workforce.
I thank NRG Energy for designating Texas — the energy capital of the world — as their corporate headquarters, and I look forward to our continued partnership as we ensure a more prosperous future for all who call the Lone Star State home.

Turner noted that more than a year ago, the City of Houston committed to purchasing 100 percent renewable energy through a renewed partnership with NRG Energy as the City's retail electric provider. "The plan is helping us build a more sustainable future, save over $9 million on our electric bill, and reduce emissions," he said.

NRG Energy boasts some 3,000 employees in Houston alone. In its report, the company reported a net loss of $83 million due the impact of Winter Storm Uri.

------

This article originally ran on CultureMap.

This week's innovators to know in Houston includes Kyle Judah of Rice University, and Devin and Peter Licata of Headquarters. Photos courtesy

3 Houston innovators to know this week

who's who

Editor's note: This week's Houston innovators to know are each looking to positively effect Houston's startup and innovation ecosystem. From making innovation more representative starting with on campus to looking to help companies most affected by COVID-19, here's what these innovators are up to.

Kyle Judah, executive director of Liu Idea Lab for Innovation & Entrepreneurship at Rice University

Kyle Judah joins the Houston Innovators Podcast last week. Photo courtesy of Lilie

To Kyle Judah, who recently joined Rice University's Liu Idea Lab for Innovation and Entrepreneurship, establishing Houston's innovation ecosystem as unique and reflective of the city is of extreme importance. From diversity of people to diversity of industry, Judah is hard at work at making Rice's programs reflective of Houston.

"We can't just copy and paste what works for the Bay Area or what works for Boston," he says. "We have to figure out what is going to be the authentic right sort of centers of excellence for Rice and for Houston — areas like energy, health care, space. It just so happens that these areas that Houston and Rice have historically done better at than anyone else — those happen to be the most grand challenges for all of humanity."

Judah joins the Houston Innovators Podcast to discuss this and what else he has on his radar in his new role. Read more and stream the episode here.

Devin and Peter Licata of Headquarters

Headquarters is looking to give away coworking space to two startups affected by the pandemic. Photo courtesy of Headquarters

A brother-sister team, Peter and Devin Licata are running Headquarters, a coworkering space just east of downtown Houston. And, after watching how COVID-19 has affected startups, they are looking to donate space to two deserving companies.

"For Devin and I being local Houstonians," says Peter. "It was very exciting to bring a product to Houston that we had never seen before in the city. When we started the search for a building, we had a very specific idea of how we wanted it to look and feel, and the amenities we wanted to provide."

Headquarters is currently accepting submissions from startups, founders, and entrepreneurs to be considered for free office space through Friday, October 2, with recipients set to be announced the week of October 5th.

Headquarters in EaDo is looking for two worthy startups to donate coworking space to. Photo courtesy of Headquarters

Houston coworking space to donate office space to startups affected by COVID-19

need some space?

A Houston-based commercial real estate company in the historic East Downtown District, is giving away free space to two startups who have been negatively impacted by the COVID-19 crisis.

The Headquarters is currently accepting submissions from startups, founders, and entrepreneurs to be considered for free office space through Friday, October 2, with recipients set to be announced the week of October 5th.

Founded in 2014 by brother and sister duo, Peter and Devin Licata, Headquarters provides flexible office space and suites to startups and young businesses in a variety of industries. Inspired by creative office spaces in Denver and coworking sites to create a completely new way to work.

Devin and Peter Licata founded Headquarters six years ago. Photo courtesy of Headquarters

"For Devin and I being local Houstonians," says Peter. "It was very exciting to bring a product to Houston that we had never seen before in the city. When we started the search for a building, we had a very specific idea of how we wanted it to look and feel, and the amenities we wanted to provide."

The building located on 3302 Canal St, was repurposed from an old warehouse built in the mid 20th century. The Licatas spent about eight months designing the building, which had sat vacant for seven years. The design features, evoke a feeling of a corporate campus but for small business which works perfectly for COVID-19 social distancing measures.

"One of the things we wanted was really wide hallways," says Devin. "Typical hallways here are about seven feet, when we were working with our architect we said, double it. The specific visuals are there to invoke a feeling, with an interior courtyard, and lots of natural light.

"Our architects weren't used to working with clients in commercial real estate who were designing based on an office where we would want to work, instead of a client who wanted to maximize every square footage."

The coworking space is adhering to social distancing recommendations. Photo courtesy of Headquarters

The wide open spaces, with hallways over 13 feet wide, high ceilings about 18 feet tall, and HVAC unit that does not recirculate air, along with the office suites that are on average 2 to 3 times larger than other coworking spaces allows all of their tenants to practice social distancing in a safe environment.

Headquarters is monitoring infection rates locally, while following safety guidelines to operate their facility safely. All guests are required to answer health screening questions upon entry and wear face coverings. They continue to clean all common areas and high touch surfaces with EPA-approved products and provide hand sanitizer at all points of entry.

With 35,000 square feet in total and 45 office suites, the Licatas say they chose the East End as their headquarters because of its close proximity to downtown and renewing growth of the community.

"The East End was an obvious location for us, we had been looking for buildings in the area for other development opportunities," says Devin. "Given it's proximity to downtown and its access to three different freeways, from a commuter standpoint it was really important as well as the community aspect."

Headquarters is located just east of downtown Houston. Photo courtesy of Headquarters

Ad Placement 300x100
Ad Placement 300x600

CultureMap Emails are Awesome

Rice University rises to No. 1 spot in new ranking of best college investments

money moves

By one measure, earning a degree at Rice University is the smartest move in the Lone Star State.

In its eighth annual ranking of colleges and university that give students the best return on their educational investment, personal finance website SmartAsset places Rice at No. 1 in Texas and No. 10 in the U.S. It’s the only Texas school to break into the national top 10.

To determine the best-value colleges and universities in each state, SmartAsset crunched data in these categories: scholarships and grants, starting salary for new graduates, tuition, living costs, and retention rate.

While the tuition ($47,350) and student living costs ($17,800) at Rice are the highest among the top 10 Texas schools on the list, the average amount of scholarships and grants ($43,615), average starting salary ($77,900), and retention rate (97 percent) also are among the highest.

According to Rice, tuition, fees, on-campus room and board, books, and personal expenses for the 2022-23 academic year add up to $74,110. That figure, which excludes financial aid, applies to a full-time, degree-seeking student living on campus.

“Rice University is consistently ranked as a best value in higher education and is one of America’s leading teaching and research universities,” the school’s Office of Financial Aid says. “By attending Rice, you will not only receive a superior education at a reasonable cost, you also will benefit from having a Rice degree long after graduation.”

Three other schools in or near the Houston metro area appear on SmartAsset’s list of the biggest-bang-for-your-buck schools in Texas:

  • Prairie View A&M University, No. 4. The university posted the lowest retention rate (74 percent) among the 10 schools. The remaining figures sit roughly in the middle of the pack.
  • University of Houston, No. 5. The university’s tuition ($8,913) was the lowest in the top 10, as was the average amount of scholarships and grants ($6,544).
  • Texas A&M University-College Station, No. 6. The university’s living costs are the second highest among the top 10 ($17,636), while its average starting salary for new grads lands at No. 3 ($64,400).

Other schools in the state’s top 10 are:

  • University of Texas at Austin, No. 2.
  • University of Texas at Dallas (Richardson), No. 3.
  • Texas Tech University in Lubbock, No. 7.
  • LeTourneau University in Longview, No. 8.
  • University of North Texas in Denton, No. 9.
  • Texas State University in San Marcos, No. 10.

------

This article originally ran on CultureMap.

Houston expert addresses the growing labor shortage within health care

guest column

Long before COVID-19 became a part of our new normal, the concerns around shortages in health care staffing were present.

To put this in real terms, according to the Bureau of Labor Statistics, the latest projection of employment through the end of this decade is an increase of nearly 12 million jobs. A fourth of those — 3.3 million to be exact — are expected to go towards health care and social assistance roles.

Before the pandemic, the concerns centered around managing a growing retired population and a slowing in higher education nurse enrollment. Then amid the growing shortage concerns surrounding the support for aging baby boomers, we were all thrusted into a pandemic.

The stressors on health care professional staffing have doubled down and what the increased shortage has shown us is the need to intervene and change the traditional hiring practices. Speed to place a nurse on assignment doesn’t just ensure productivity — it is a matter of life or death.

Over the past several years, the evolution of technology has drastically changed how health care facilities operate and interact with their employees as well as patients. There was a point in time where the structure in health care staffing was rigid without flexibility or varieties of employment type. Conversations around travel positions, per diem, and permanent are all now commonplace as the recent shortages caused us to normalize the discussion around role type and use of technology to influence speed to hire.

This whole evolution was put to test when April 2020 came, and the initial brunt of the pandemic was in full swing. The entire world was in panic mode. During these quarantine times, we were in a state of a health care emergency with thousands of patients seeking health care. Unfortunately, hospitals could not keep up with this demand with their existing nurse professionals, and became severely overloaded and dangerous. Due to this the United States saw unprecedented labor shortages, impacting a large number of nurses and health care workers as it pertains to both their physical and mental health.

What we are seeing now is a period classified as the “The Great Rethinking,” where nurses and health care workers alike are speaking up for what they believe in and deserve. Salary transparency and flexibility are just the tip of the iceberg for this movement.

SkillGigs is unique in that we are giving the power back to registered nurses and health care professionals, while meeting the demand created by the pandemic. Our team has been fortunate to be a catalyst to direct the change in the future of work, and we look forward to continuing to innovate.

------

Bryan Groom is the division president of health care at Houston-based SkillGigs.

Houston energy giant expands implementation of Canadian startup's tech

big, big energy

CruxOCM, a startup with a significant Houston presence that specializes in robotic industrial process automation for energy companies, has secured even more business from energy giant Phillips 66.

The value of the deal wasn’t disclosed.

Houston-based Phillips 66 has agreed to expand it use of CruxOCM’s pipeBOT technology to cover even more pipelines. The pipeBOT technology is designed to improve the safety and efficiency of control room operations for pipelines and reduce control room costs.

CruxOCM and Phillips 66 launched a test of pipeBOT in 2020.

CruxOCM, based in Calgary, Canada, says pipeBOT is engineered to decrease manual controls through intelligent automation. With this technology in place, the fatigue of control room operators declines, because as many as 85 percent fewer manual commands must be entered, according to CruxOCM. Therefore, control room operators can focus on higher-level tasks.

“At CruxOCM, we empower control room operators with modern software that enables the autonomous control rooms of tomorrow, within the safety constraints of today. We look forward to continuing to strengthen our relationship with Phillips 66 for many years to come,” Adam Marsden, chief revenue officer at CruxOCM, says in a news release.

Founded in 2017, Crux OCM (Crux Operations Control Management) established its Houston presence last year. Also in 2021, the startup raised $6 million in venture capital in a “seed extension” funding round. Bullpen Capital led the round, with participation from Angular Ventures, Root Ventures, Golden Ventures, Cendana Capital, and Industry Ventures.

In 2019, Angular Ventures and Root Ventures co-led a $2.6 million funding round.