Eli Lilly to build $6.5B pharmaceutical factory at Generation Park

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Eli Lilly is expected to bring a $6.5 billion manufacturing facility to Houston by 2030. Rendering courtesy Greater Houston Partnership.

Pharmaceutical giant Eli Lilly and Co. plans to build a $6.5 billion manufacturing plant at Houston’s Generation Park. More than 300 locations in the U.S. competed for the factory.

The Houston site will be the first major pharmaceutical manufacturing plant in Texas, according to the Greater Houston Partnership.

Lilly said it plans to hire 615 full-time workers for the 236-acre plant, including engineers, scientists and lab technicians. The company will collaborate with local colleges and universities to help build its talent pipeline.

The plant will also generate an estimated 4,000 construction jobs.

Lilly said every dollar it spends in the Houston area will contribute an additional $4 to the local economy.

“This is a transformative moment for the Houston region and our life sciences industry,” Steve Kean, president and CEO of the Greater Houston Partnership, said in a release. “The Lilly project represents one of the largest for-profit life sciences investments in Texas history and is a powerful endorsement of Houston’s growing position as a global hub for innovation, advanced manufacturing, and biomedical excellence.”

The factory, expected to go online by 2030, will make small-molecule medicines for fields such as oncology, immunology and neuroscience. Perhaps most notably, the site will manufacture orforglipron, Lilly's first oral small-molecule GLP-1 medicine for treatment of obesity and type 2 diabetes. The drug is currently undergoing clinical trials.

“Our new Houston site will enhance Lilly’s ability to manufacture orforglipron at scale and, if approved, help fulfill the medicine’s potential as a metabolic health treatment for tens of millions of people worldwide who prefer the ease of a pill that can be taken without food and water restrictions,” David Ricks, chairman and CEO of Lilly, said in a release.

The company said it chose Generation Park, a 4,300-acre, master-planned commercial district near Lake Houston, because of factors such as financial incentives, access to utilities and transportation, and the region’s business-friendly environment. Generation Park is home to campuses for San Jacinto College and Lone Star College.

The plant will be outfitted with machine learning, AI, advanced data analytics, digital automation, and similar tools to streamline operations, Lilly said.

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Seven student-founded startups pitched their business plans at an annual NASA event. Photo via NASA.gov

Student startups pitch out-of-this-world tech at Houston competition

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Several groups of students from all over the United States tapped into technology developed by NASA to create business plans. The teams competed in Houston last week for thousands of dollars, and one team went home with the win.

NASA’s Minority University Research and Education Project, or MUREP, hosted its annual "Space Tank" pitch event, MUREP Innovation and Technology Tech Transfer Idea Competition, or MITTIC, last week at Space Center Houston. Seven teams from across the country — including three Texas teams — pitched business plans based on NASA-originated technology.

“Students and faculty members of MITTIC are notably engaging with our agency, but they are helping to fulfill our mission to make the earth a better, safer place creating products and services that will shape the future," says Donna Shafer, associate director at Johnson Space Center.

All seven teams — each led by a minority student — went home with at least $5,000 as a prize for making it to the finals, but one team from the University of Massachusetts at Boston took home first place and a $10,000 prize. The winning team is also invited to join Team Piezo Pace from the University of St. Thomas, Houston, in a visit to NASA’s Ames Research Center in Silicon Valley, California, for additional look in the innovation and entrepreneurial space.

The judges for the event included: Hope Shimabuku, director of the U.S. Patent and Trademark Office for the Texas Region; Megan Ortiz, project manager at NASA; Lawrence Cosby, vice president of IP strategy at JPMorgan Chase & Co; Terik Tidwell, director of inclusive innovation at VentureWell; Jorge Valdes, program advisor on STEM education and intellectual property at the United States Patent and Trademark Office; Walt Ugalde, economic development executive at NASA; and Laura Barron, autonomous systems technology deputy project manager at NASA.

The seven finalist teams — and the technology they are working on — are as follows:

  • Lone Star College - CyFair’s team Aquarius Solutions, which pitched its water purification product, ClearFlow, based off an ammonia removal system developed at NASA
  • Fayetteville State University in North Carolina’s ASAPA team pitched their Autonomous Solar Array Assembly drone technology that’s based on NASA’s Print-assisted Photovoltaic Assembly system for automated printing of solar panels.
  • University of Houston-Clear Lake’s team AstroNOTS has identified a technology to address the safety of wildfire rescue teams. The PyroCap is a emergence fire shelter based on NASA’s Lightweight Flexible Thermal Protection System.
  • Santa Monica College in California’s team, BREATHE, pitched a noninvasive technology to replace traditional mammograms. The device can analyze breath through a NASA-designed sensor.
  • University of Massachusetts-Boston’s winning team, LazerSense Solutions, is working on a technology for smoke and gas detection. The PartaSense device can detect everything from carbon monoxide to black mold. It’s based on NASA’s MPASS IP.
  • Hartnell College in California’s team PanterBotics is working on an zero-emission electric vehicle, the OmniZero, to address climate change. The technology, a modular robotic vehicle, originated at NASA.
  • University of Texas at Austin’s Longhorn Innovators, who pitched a thinking cap technology to increase and enhance focus. The wearable device is based on NASA technology ZONE, or Zeroing Out Negative Effects, an analysis from EEG sensors.

A new initiative from the city of Houston and Hertz aims to boost Houston's electric vehicle rental fleet. Photo via Mayor Sylvester Turner/Facebook

This new partnership will triple Houston's electric vehicle rental fleet

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A new partnership between The Hertz Corp. and the City of Houston will bring 2,100 rental electric vehicles to Houston, according to an announcement from the organizations earlier this week.

Dubbed Hertz Electrifies Houston, the program aims to boost Houston's EV rental fleet, as well add to the city's charging infrastructure and EV education and training opportunities.

The new vehicles will come from automakers Tesla, Polestar, and GM and can be rented to leisure and business customers, as well as rideshare drivers.

In partnership with bp pulse, Hertz Electrifies Houston will also bring a new EV fast-charging hub to Hobby Airport that's designed to serve ride-hail, taxi fleets and the general public.

"Our goal is to convert all non-emergency, light-duty municipal vehicles to electric by 2030," Mayor Sylvester Turner says in a statement. "This partnership with Hertz will provide an invaluable boost to achieve this goal and the goal of our Climate Action Plan for Houston to be a net-zero city by 2050."

In addition to the new fleet and charging hub, Hertz announced it will also donate an EV to Lone Star College-North Harris to help the college provide EV training to students in its auto servicing curriculum.

"Lone Star College-North Harris houses one of top automotive programs in Texas," Archie Blanson, president of Lone Star College-North Harris, says in the statement. "To make our students competitive and meet industry demand, we must ensure we are bringing the latest technologies, including a diversified fleet of EVs into the classroom.”

Earlier this month, Hertz also launched a Hertz Electrifies program in Denver. The initiative aims to bring 5,200 rental EVs to Denver. In 2022, the company first announced its plan to partner with bp pulse to install a national network of EV charging solutions for its customers.

Houston also has grown into a hub for EV and EV charging innovation recently. Houston-based Zeta Energy is leading efforts to develop efficient EV batteries, and received $4 million in funding from the U.S. Department of Energy's ARPA-E Electric Vehicles for American Low-Carbon Living, or EVs4ALL, program earlier this year.

Houston's Revterra has also created a kinetic energy storage system that enables rapid EV charging. The company’s founder and CEO, Ben Jawdat, spoke about the energy transition on the Houston Innovators Podcast last month.
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New UH survey reveals concerns over AI data center growth in Houston

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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

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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."
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