Rahul Jasuja will lead the new Houston energy hub. Photo courtesy of LinkedIn

Investment bank Cohen & Co. Capital Markets has opened a Houston office to serve as the hub of its energy advisory business and has tapped investment banking veteran Rahul Jasuja as the office’s leader.

Jasuja joined Cohen & Co. Capital Markets, a subsidiary of financial services company Cohen & Co., as managing director, and head of energy and energy transition investment banking. Cohen’s capital markets arm closed $44 billion worth of deals last year.

Jasuja previously worked at energy-focused Houston investment bank Mast Capital Advisors, where he was managing director of investment banking. Before Mast Capital, Jasuja was director of energy investment banking in the Houston office of Wells Fargo Securities.

“Meeting rising [energy] demand will require disciplined capital allocation across traditional energy, sustainable fuels, and firm, dispatchable solutions such as nuclear and geothermal,” Jasuja said in a news release. “Houston remains the center of gravity where capital, operating expertise, and execution come together to make that transition investable.”

The Houston office will focus on four energy verticals:

  • Energy systems such as nuclear and geothermal
  • Energy supply chains
  • Energy-transition fuel and technology
  • Traditional energy
“We are making a committed investment in Houston because we believe the infrastructure powering AI, defense, and energy transition — from nuclear to rare-earth technology — represents the next secular cycle of value creation,” Jerry Serowik, head of Cohen & Co. Capital Markets, added in the release.

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This article originally appeared on EnergyCaptialHTX.com.

Patho Care LLC says its technology is more cost-effective and provides results faster than traditional diagnostic methods. Photo via Getty Images

Houston firm invests $150M in leading 'lab on a chip' medical diagnostics co.

fresh funds

Houston-based health technology investment firm Hamershlag Private Capital Management Limited (HPCM) announced a $150.15 million venture investment in Patho Care LLC.

Patho Care is a “lab on a chip” medical diagnostics company known for its noninvasive point-of-care testing platforms, such as its Raman spectroscopy-based platform.

Its digital point-of-care testing devices are programmable, mobile, and reusable and can detect current or future respiratory bacterial or viral infections. The company says the technology is more cost-effective and provides results faster than traditional diagnostic methods.

“Patho Care LLC is a distinguished leader in healthcare diagnostics through the utilization of a novel approach with spectroscopy and this investment aligns with HPCM’s strategy of partnering with high-potential companies in dynamic industries,” L. Mychal Jefferson, Chairman of Hamershlag, said in a news release.

The transaction was structured as an acquisition and recapitalization using newly issued common stock and cash, which will work through a newly formed entity, PathoCare Holdings Inc. The deal will also facilitate the repayment of Patho Care LLC's existing financial obligations and settle Patho Care’s outstanding notes, helping ensure the company’s financial readiness, according to the release.

The investment will help Patho Care LLC improve operational efficiencies, broaden its service offerings and continue to innovate in the diagnostic testing space. The companies hope the collaboration will help “unlock new growth opportunities while maintaining the company’s legacy of excellence in an emerging technology,” according to a news release.

“Our commitment to delivering transformative value through innovative investments underscores our confidence in Patho Care’s vision and capabilities,” Jefferson added.

Robert Kester co-founded Rebellion Photonics, which was acquired by Honeywell Process Solutions in 2019. Photo courtesy of Honeywell

Houston investment firm names tech exec as new partner

new hire

Houston tech executive Robert Kester has joined Houston-based Veriten, an energy-focused research, investment and strategy firm, as technology and innovation partner.

Kester most recently served as chief technology officer for emissions solutions at Honeywell Process Solutions, where he worked for five years. Honeywell International acquired Houston-based oil and gas technology company Rebellion Photonics, where Kester was co-founder and CEO, in 2019.

Honeywell Process Solutions shares offices in Houston with the global headquarters of Honeywell Performance Materials and Technologies. Honeywell, a Fortune 100 conglomerate, employs more than 850 people in Houston.

“We are thrilled to welcome Robert to the Veriten team,” founder and CEO Maynard Holt said in a statement, “and are confident that his technical expertise and skills will make a big contribution to Veriten’s partner and investor community. He will [oversee] every aspect of what we do, with the use case for AI in energy high on the 2025 priority list.”

Kester earned a doctoral degree in bioengineering from Rice University, a master’s degree in optical sciences from the University of Arizona and a bachelor’s degree in laser optical engineering technology from the Oregon Institute of Technology. He holds 25 patents and has more than 25 patents pending.

Veriten celebrated its third anniversary on January 10, the day that the hiring of Kester was announced. The startup launched with seven employees.

“With the addition of Dr. Kester, we are a 26-person team and are as enthusiastic as ever about improving the energy dialogue and researching the future paths for energy,” Holt added.

Kester spoke on the Houston Innovators Podcast in 2021. Listen here

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Utility Global’s technology enables reduction of greenhouse gas emissions along with generation of low-carbon fuels and chemicals. Photo courtesy of Utility Global

Houston clean energy company secures $53M series C investment

big raise

Houston-based Utility Global, a maker of decarbonization-focused gas production technology, has raised $53 million in an ongoing series C round.

Among the participants in the round are Canada’s Ontario Power Generation Pension Plan, the XCarb Innovation Fund operated by Luxembourg-based steel company ArcelorMittal, Houston-based investment firm Ara Partners, and Saudi Aramco’s investment arm.

Also, Utility Global and ArcelorMittal have agreed to develop at least one decarbonization facility at an ArcelorMittal steel plant.

The latest infusion of cash will support the rollout of Utility Global’s eXERO technology, including establishment of the company’s first commercial facilities in 2026.

“With the successful completion of its demonstration program at a commercial steel facility resulting in the first hydrogen ever produced from blast furnace off-gasses in a single reactor, the company has shifted to commercial deployments,” Utility Global says in a news release.

Utility Global’s technology enables reduction of greenhouse gas emissions along with generation of low-carbon fuels and chemicals.

“Our eXERO solution is the first of its kind to convert process gasses into clean hydrogen in a single reactor, onsite, in a cost-effective manner that extends the life of existing customer assets and processes while providing significant emissions reductions,” says Claus Nussgruber, CEO of Utility Global.

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This article originally ran on EnergyCapital.

Jon Nordby's career has been focused on cultivating a culture for innovation, and now he's focused on human potential technology opportunities. Photo courtesy

Long-time innovator reflects on Houston ecosystem development, shares why he's bullish on human performance

houston innovators podcast episode 251

In his role overseeing startup accelerators for MassChallenge, Jon Nordby started noticing one industry vertical stood out in terms of success and opportunities: Human potential. Now, Nordby is a founding member of an investment firm looking for those opportunities.

Nordby, who served in various leadership roles at MassChallenge — including managing director and head of ecosystems — said he started realizing the opportunities within the organization's space and sports tech programs.

"What we realized over a couple of years running the program was that sports tech as a theme was too limiting," Nordby says on the Houston Innovators Podcast. "We were finding really great technologies, but we were limited at the market size of teams and leagues to deploy those technologies."

"Over the course of that program, we found that the things that were related more to human health and performance tended to out perform all of the other things related to sports tech — like media, entertainment, gambling," Nordby continues. "Still really great markets for those technologies, but we found a lot more traction for human performance."

Nordby joined the team at Anthropy Partners, which exists to support early stage technologies that are advancing human mental and physical performance, a little over a year ago.

Defining human performance, Nordby says he thinks about it in terms of the hardware and software of a human, or physical and cognitive abilities — and how both sides of the equation work together.

"Some of the early investments that we've made have been in three realms — sensing, data, and analytics," Nordby explains, sharing examples from the Anthropy portfolio companies.

While Nordby jokes that his interest in human performance might confuse people who know him to be not particularly athletic, his other current roles fall more in line with his career history. A three-time startup founder, Nordby worked for the Greater Houston Partnership at the time the organization launched Houston Exponential. He left GHP to lead strategy for HX before transitioning to MassChallenge. All throughout these roles, Nordby has a front row seat for witnessing what it takes to develop innovation ecosystems.

He co-founded the Anthropy's nonprofit efforts for developing innovation ecosystems, called Anthropy Constructive. This year, he founded EconWerks, a for-profit company that advises entities on creating sustainable innovation efforts.

Nordby says he's "seen where things go wrong when people with really great intentions but not a lot of exposure or pattern recognition to ecosystem development are making investments or decisions on how those ecosystems need to develop."

Usually, Nordby explains, it's an economic development or ill-informed investment decision. But wrong moves can devastate a potential startup hub.

"Typically, when an investment is made and it doesn't pan out the way they think it should, there's typically a five to eight-year cycle of no more investments being made," Nordby says on the show. "When you think about the long-term effect that has on an innovation economy — an eight-year gap where you're not investing in startups — that's a problem."

Nordby thinks back to the goal setting Houston did several years ago, and reflects on how the ecosystem locally has evolved over the years.

"The goal we always set internally was to create a culture of innovation and to have the spirit of innovation permeate through the city," Nordby says. "Between 2016 when we started that initiative and that work until now, that culture is wildly different. ... The ecosystem has come a very, very long way in terms of attracting and encouraging founders."

A venture capital firm specializing in the life science sector revealed its plans to move into Houston. Rendering courtesy of TMC

Life science investment firm announces expansion into Houston

coming soon

A Chicago-based life science investment firm has announced its expansion into Houston.

Portal Innovations released the news today that it will move into 30,000 square feet of lab and office space in Texas Medical Center's new Helix Park complex's Collaborative Building. Helix Park is a 37-acre mixed-use campus currently under construction. The firm is expected to make the move in the secord quarter of next year.

Portal, along with its capital partners Beacon Capital and ZoE Life Sciences, is expanding into Houston to tap into the more than 4,800 biotech companies that are associated with TMC, per a news release.

“Houston is one of the fastest-growing cities in the U.S., and home to one of the world’s leading cancer research institutions, The University of Texas MD Anderson Cancer Center,” says Portal’s Founder and CEO John Flavin in the release. “It’s critical for us to open in Texas and leverage nearby pipelines from Rice University, UTHealth Houston, Texas A&M, University of Houston, Baylor College of Medicine, and others across Houston’s innovative life sciences ecosystem. We’re thrilled to work with TMC to help grow tomorrow’s biotech and medtech leaders.”

For TMC's community, the move means connecting Portal with its network of institutions for mentorship, events, networking, and more.

"TMC has steadily been building an innovation ecosystem in Houston through initiatives like the TMC Venture Fund, our incubator programs, and our global BioBridge relationships," says Bill McKeon, CEO of TMC, in the release. “In Portal, we have a partner with a proven track record of leveraging venture capital funding, expert partners, and strong programming to support dynamic, entrepreneurial businesses at pivotal moments of their growth. We look forward to building on our collective expertise and shared vision to further support the breakthroughs of early-stage life science ventures.”

The TMC3 Collaborative Building is the first completed building expected from the Helix Park development, along with the Dynamic One building anchored by Baylor College of Medicine. Both of which were originally slated to deliver later this year when the project details were revealed in 2022.

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New UH survey reveals concerns over AI data center growth in Houston

data findings

A new report out of the University of Houston shows that area residents remain wary of the long-term effects of operating data centers.

The recent survey from the University of Houston’s latest SPACE City Panel, conducted by the Center for Public Policy at the Hobby School of Public Affairs, shows that while 85 percent of Houston-area residents use AI, nearly 63 percent oppose the construction of AI data centers within 1 mile of their homes.

Respondents’ concerns centered around data centers’ high energy demand and the area’s power grid reliability. According to the survey, 32 percent of residents who oppose local data center projects would be more likely to support the centers if they relied on renewable energy over fossil fuels.

“Respondents understand that AI can bring economic and educational benefits, but they are also concerned about the physical infrastructure needed to fuel AI, especially data centers,” Soran Mohtadi, post-doctoral fellow at the Hobby School and a researcher on the report, said in a news release. “This physical infrastructure demands more electricity and water, leading to environmental impacts.”

Experts estimate that 6.5 gigawatts of data center capacity will be added to the Texas grid by 2030. And Houston’s data center capacity is predicted to more than double by 2028.

The Electric Reliability Council of Texas also projects electricity demand could reach 218 gigawatts by 2031, which would be more than double the record peak set in August 2023. Data centers are expected to account for 86 gigawatts of that new demand.

Survey respondents also said they are concerned about the state's future water supply, given the large amounts of water that data centers need to stay cool.

In terms of who’s responsible for that issue, 57.6 percent of respondents said they put the onus on Texas lawmakers, while 31.5 percent say tech companies should be responsible.

Additionally, more than 75 percent of respondents believed that data center developers and technology companies—not residents—should bear the cost of infrastructure upgrades to support data centers.

“Every decision legislators make has implications on residents’ everyday lives and local infrastructure now and in the future,” Maria P. Perez Arguelles, lead researcher on the report and research assistant professor at the Hobby School, added in the news release. “This issue is going to become more important in years to come, so this is just the beginning.”

Read the full report here.

Houston-born Cemvita makes breakthrough in sustainable fuel production

clean fuels

Houston-based biotech company Cemvita announced that it recently reached a critical milestone in the development of its FermOil product, which can be used to create Sustainable Aviation Fuel (SAF) and other renewable fuels at industrial scale.

The company shared in a news release that it completed a 75,000-liter industrial fermentation run at Belgium's Bio Base Europe Pilot Plant.

The campaign achieved target technical metrics for the production of FermOil, Cemvita’s renewable natural oil (RNO). FermOil is produced from industrial crude glycerin, an industrial byproduct, as opposed to traditional sugar-based feedstocks used in many bio-oil fermentation processes. It's designed to be a drop-in feedstock for creating SAFs.

Cemvita had previously advanced its FermOil production process through multiple scale-up stages before successfully reaching the 75,000-liter demonstration campaign, according to the company.

“This is not just a fermentation milestone,” Moji Karimi, CEO at Cemvita, said in the release. “It is a blueprint for how existing industrial infrastructure can evolve into circular bioeconomy infrastructure. Every biodiesel plant generating crude glycerin is a potential platform for renewable natural oil production.”

The milestone also supports the deployment of Cemvita’s industrial biomanufacturing platform, FermWorks, which integrates with existing energy and industrial infrastructure to turn waste carbon streams into SAFs and other materials. According to the release, Cemvita plans to move forward with commercial deployment discussions with partners in Brazil, Europe and in the UK. Cemvita already has a partnership with the Brazilian sustainable research institution REMA.

“We are proud to support innovative companies like Cemvita in scaling breakthrough industrial biotechnology solutions,” Hendrik Waegeman, head of business operations at Bio Base Europe Pilot Plant, added in the release. “Successfully operating at the 75,000-liter scale using a feedstock such as crude glycerin highlights both the maturity of the technology and the quality of the scale-up execution achieved by the Cemvita team.”

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This article originally appeared on our sister site, EnergyCapitalHTX.com.

Eli Lilly scoops up Houston biotech startup in $300 million deal

big pharma deal

Pharmaceutical giant Eli Lilly has acquired Houston biotech startup CrossBridge Bio, which develops antibody-drug conjugates for cancer, in a deal worth up to $300 million. The deal was celebrated by TMC Venture Fund and the University of Texas Health Science Center at Houston last week.

CrossBridge, founded in 2023, is developing ADCs based on research by Kyoji Tsuchikama and Zhiqiang An, both of UT Health Houston. Tsuchikama is an associate professor of medicinal chemistry and a globally recognized ADC pioneer, and An is a professor of molecular science and vice president of drug discovery.

Antibody-drug conjugates (ADCs) are a potent combination of targeted therapy and chemotherapy that kills cancer cells while saving healthy tissue.

Clinical trials for CrossBridge’s primary ADC candidate, CBB-120, are expected to start this year, pending approval from the U.S. Food and Drug Administration (FDA).

“I’m proud of how well our team has executed and advanced our platform in such a short time since the company’s founding,” Michael Torres, co-founder and CEO of CrossBridge, said in a news release. “By becoming a part of Lilly, a leader in patient-focused therapeutic development, we are well-positioned to further accelerate the clinical potential of this approach.”

Under the Lilly deal, CrossBridge shareholders were expected to receive an upfront payment along with a follow-up payment based on the achievement of certain milestones.

In 2024, CrossBridge closed a $10 million seed round. Among the investors in CrossBridge are the Texas Medical Center Venture Fund, CE-Ventures, Alexandria Venture Investments, Portal Innovations, Linden Lake Labs, and the Cancer Prevention and Research Institute of Texas (CPRIT). It was formed in TMC Innovation’s Accelerator for Cancer Therapeutics program."Built within the TMC ecosystem, CrossBridge Bio grew with the support, funding, and resources that helped shape its trajectory. TMC led the company's early financing and watched it evolve from its earliest days to its acquisition by Eli Lilly," William McKeon, president and CEO of the Texas Medical Center, shared in a LinkedIn post. "[This is a] strong reminder that breakthrough science and the right early backing can change what’s possible."