Nuro is now able to roll out its new model of self-driving vehicles in Houston thanks to a recent announcement from the government. Photo courtesy of Nuro

A California-based tech company has got the green light today to move forward a new line of autonomous vehicles that will soon hit Houston streets.

Nuro, which has a few self-driving delivery pilot programs across Houston, has been granted its exemption petition from the United States Department of Transportation's National Highway Traffic Safety Administration. This move is a first for DOT, and it allows Nuro to roll out its vehicles on public roads without the features of traditional, passenger-carrying vehicles — like side mirrors or windshields, for instance.

"Since this is a low-speed self-driving delivery vehicle, certain features that the Department traditionally required – such as mirrors and windshield for vehicles carrying drivers – no longer make sense," says U.S. Secretary of Transportation Elaine L. Chao in a news release.

Now, with this permission, Nuro has unveiled its newest model — the R2. The new model is more narrow than the R1, and has 65 percent more climate-controlled space for its food deliveries. The vehicle also has new safety features, like 360-degree vision using lidar, radar, and cameras and even has a pedestrian-protecting feature that enables the car to collapse on impact.

Image courtesy of Nuro

"We founded Nuro on the belief that we could reimagine, design, and develop an autonomous vehicle that would make the world a safer place," says Nuro co-founder and president, Dave Ferguson, in a release. "Our second-generation vehicle will advance our goal of transforming local commerce, and we are gratified that the Department of Transportation, under Secretary Chao's leadership, is promoting public safety and providing regulatory certainty for the self-driving industry."

The R2 models are being assembled in the U.S. with Nuro's partner, Roush Enterprises, which is based in Michigan. Per the NHTSA announcement, Nuro can deploy up to 5,000 R2 vehicles during the two-year exemption period. According to the DOT release, the organization will be monitoring Nuro's work throughout those two years.

"NHTSA is dedicated to facilitating the safe testing and deployment of advanced vehicle technologies, including innovative vehicle designs, which hold great promise for future safety improvements," says NHTSA Acting Administrator James Owens in the release. "As always, we will not hesitate to use defect authority to protect public safety as necessary."

Nuro currently has three pilot programs — all of which were announced last year. The company is working with Domino's, Kroger, and Walmart on food and grocery deliveries in six Houston ZIP codes. Since entering the Houston market, Nuro has been using its fleet of self-driving Prius vehicles to research and map the city's roads.

With this permission granted from DOT, Nuro can start making deliveries using its R2 fleet with its three retail and restaurant partners.

"Today's decision shows that 'exemption' can mean more safety," says Ferguson. "Our world-class team solved countless novel problems to create this design, and, after extensive modeling, research, and testing, created a vehicle unlike any other on the road today."

Photo courtesy of Nuro

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Houston maritime startup raises $43M to electrify vessels, opens new HQ

Maritime Mission

A Houston-based maritime technology company that is working to reduce emissions in the cargo and shipping industry has raised VC funding and opened a new Houston headquarters.

Fleetzero announced that it closed a $43 million Series A financing round this month led by Obvious Ventures with participation from Maersk Growth, Breakthrough Energy Ventures, 8090 Industries, Y Combinator, Shorewind, Benson Capital and others. The funding will go toward expanding manufacturing of its Leviathan hybrid and electric marine propulsion system, according to a news release.

The technology is optimized for high-energy and zero-emission operation of large vessels. It uses EV technology but is built for maritime environments and can be used on new or existing ships with hybrid or all-electric functions, according to Fleetzero's website. The propulsion system was retrofitted and tested on Fleetzero’s test ship, the Pacific Joule, and has been deployed globally on commercial vessels.

Fleetzero is also developing unmanned cargo vessel technology.

"Fleetzero is making robotic ships a reality today. The team is moving us from dirty, dangerous, and expensive to clean, safe, and cost-effective. It's like watching the future today," Andrew Beebe, managing director at Obvious Ventures, said in the news release. "We backed the team because they are mariners and engineers, know the industry deeply, and are scaling with real ships and customers, not just renderings."

Fleetzero also announced that it has opened a new manufacturing and research and development facility, which will serve as the company's new headquarters. The facility features a marine robotics and autonomy lab, a marine propulsion R&D center and a production line with a capacity of 300 megawatt-hours per year. The company reports that it plans to increase production to three gigawatt-hours per year over the next five years.

"Houston has the people who know how to build and operate big hardware–ships, rigs, refineries and power systems," Mike Carter, co-founder and COO of Fleetzero, added in the release. "We're pairing that industrial DNA with modern batteries, autonomy, and software to bring back shipbuilding to the U.S."

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This article originally appeared on EnergyCapitalHTX.com.

Innovative Houston-area hardtech startup closes $5M seed round

fresh funding

Conroe-based hardtech startup FluxWorks has closed a $5 million seed round.

The funding was led by Austin-based Scout Ventures, which invests in early-stage startups working to solve national security challenges.

Michigan Capital Network also contributed to the round from its MCN Venture Fund V. The fund is one of 18 selected by the Department of Defense and Small Business Administration to participate in the Small Business Investment Company Critical Technologies Initiative, which will invest $4 billion into over 1,700 portfolio companies.

FluxWorks reports that it will use the funding to drive the commercialization of its flagship Celestial Gear technology.

"At Scout, we invest in 'frontier tech' that is essential to national interest. FluxWorks is doing exactly that by solving critical hardware bottlenecks with its flagship Celestial Gear technology ... This is about more than just gears; it’s about strengthening our industrial infrastructure," Scout Ventures shared in a LinkedIn post.

Fluxworks specializes in making contactless magnetic gears for use in extreme conditions, which can enhance in-space manufacturing. Its contactless design leads to less wear, debris and maintenance. Its technology is particularly suited for space applications because it does not require lubricants, which can be difficult to control at harsh temperatures and in microgravity.

The company received a grant from the Texas Space Commission last year and was one of two startups to receive the Technology in Space Prize, funded by Boeing and the Center for the Advancement of Science in Space (CASIS), in 2024. It also landed $1.2 million through the National Science Foundation's SBIR Phase II grant this fall.

Fluxworks was founded in College Station by CEO Bryton Praslicka in 2021. Praslicka moved the company to Conroe 2024.