Houston energy storage startup secures $10M in federal funding

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Houston-based Quidnet Energy has secured funding from a Department of Energy program. Image via quidnetenergy.com

A Houston-based company that's got a solution to renewable energy storage has just secured funding from a federal entity.

The U.S. Department of Energy Advanced Research Projects Agency-Energy, or ARPA-E, is granting Quidnet Energy $10 million in funding, the Houston company announced this week. The funding is a part of the ARPA-E Seeding Critical Advances for Leading Energy technologies with Untapped Potential, the SCALEUP program. This initiative is aimed at providing funding to previous ARPA-E teams "that have been determined to be feasible for widespread deployment and commercialization domestically," per a news release.

“We’re honored that ARPA-E has selected Quidnet Energy as an awardee of the SCALEUP program,” says Joe Zhou, CEO of Quidnet Energy, in the release. “This funding will support continued work on our Geomechanical Pumped Storage (GPS) project with CPS Energy, which will demonstrate the benefits of using proven pumped hydro technology to create a long-duration energy storage resource that doesn’t require mountainous terrain. We look forward to continuing our partnership with CPS Energy and thank ARPA-E for acknowledging the potential of GPS for long-duration storage.”

The company's technology can store renewable energy for long periods of time in large quantities. The process includes storing pressurized water underground and, when the stored energy is needed, the water propels hydroelectric turbines and produces the electricity to support the grid at a fraction of the cost, per the news release. The concept is similar to existing gravity-powered pumped storage, but with less land required.

The fresh funding will be used toward Quidnet Energy’s ongoing project with San Antonio-based utilitary provider CPS Energy. This collaboration is scaling the company's GPS to a 1 MW/10 MWh commercial system, per the release, that will provide CPS Energy with over 10 hour long-duration energy storage system.

In 2020, Quidnet closed its $10 million series B financing round and secured a major contract with the New York State Energy Development Authority. The series B round included participation from Bill Gates-backed Breakthrough Energy Ventures and Canada-based Evok Innovations, which both previously invested in the company, as well as new investors Trafigura and The Jeremy and Hannelore Grantham Environmental Trust.

Houston-based Quidnet Energy has closed a $10 million series B round and secured a big contract with the state of New York. Getty Images

Houston renewable energy company closes $10M series B

Money moves

Houston-based renewable energy company that focuses on clean energy storage closed its $10 million series B financing round and secured a major contract.

Quidnet Energy announced its latest round and the execution of a contract with the New York State Energy Development Authority. Bill Gates-backed Breakthrough Energy Ventures and Canada-based Evok Innovations, which both previously invested in the company, contributed to the round. The round also featured new investors Trafigura and The Jeremy and Hannelore Grantham Environmental Trust.

"Long-duration electricity storage is critical to the energy transition. It's exciting to see how Quidnet is bringing this viable long-duration solution to the market," says Mike Biddle, managing director at Evok Innovations, in a news release. "Because they are leveraging long understood geologic principles, we are confident that they can scale rapidly. We are pleased to support the Quidnet team through its next phase of commercial growth."

According to the release, the company will use the funds to grow its team and scale up its operations in order to be able to deliver commercial-scale projects across the country's electric grid.

"Integrating renewables and replacing retiring thermal generation require cost-effective long-duration electricity storage at an immense scale," says Quidnet Energy CEO Joe Zhou in the release. "While traditional pumped hydro has provided over 95 percent of the world's grid-scale storage, that approach faces significant siting and cost limitations going forward. Quidnet unlocks these constraints to fundamentally change the economics and deployment profile of long-duration storage."

Quidnet's deal with NYSEDA is a part of the organization's efforts to reduce the state's carbon footprint while also lowering the cost of traditional energy storage.

"Under Governor Cuomo's leadership, New York is investing in the technology research and development needed to advance a 21st electric grid that can support the State's growing influx of renewable energy," says Alicia Barton, president and CEO of NYSERDA, in the release. "Congratulations to Quidnet on this opportunity to develop and demonstrate the value that this innovative technology can bring to New York as we work to reduce greenhouse gas emissions and transition to a 100 percent clean electric grid."

Last month, the Rice Alliance for Technology and Entrepreneurship hosted its annual Energy Tech Venture Day online, and Quidnet was among the Houston energy companies to pitch virtually.

The show had to go on at the annual Energy Tech Venture Day, which was put on virtually by the Rice Alliance on May 7. Zukiman Mohamad/Pexels

13 Houston energy tech startups pitch at Rice Alliance's first virtual event

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Rice Alliance for Technology and Entrepreneurship's annual Energy Tech Venture Day is usually hosted as a part of the Offshore Technology Conference that takes over NRG Center each May. However, when OTC announced its cancelation, Rice Alliance made sure the show would go on.

"We had many startups and corporations reach out to us and ask us if we could go ahead with the event in a virtual format, so that's how we ended up where we are today," says Brad Burke, managing director of the Rice Alliance at the start of the event.

Throughout the two-hour pitch event, 39 startups pitched their companies in two minutes and 30 seconds or less. The companies were selected based on input from the alliance's energy advisory board. The companies, Burke says, represent innovations across the energy industry.

An additional 24 companies participated in virtual office hours with investors through a speed-networking process.

"We know that the needs of startups to raise capital, to find customers, and to find pilots is even greater today than it was several months ago," Burke says. "And we know that the needs of energy companies to find innovative technologies to reduce costs and increase production are even greater as well."

Usually at this event, the advisory board decides on the 10 most promising energy tech startups, however, this list will not be revealed this year.

Of the startups that pitched that represented 11 different states and six different countries, 13 call Houston their HQ. Here's what local startups pitched.

Bluware

Bluware's E&P clients use the startup's cloud computing and deep learning technology to access seismic data. This data is crucial for geoscientists to make faster and smarter decisions to reduce time to oil. Bluware's headquarters is in West Houston, and has an European office in Norway.

DAMorphe

Southwest Houston-based DAMorphe uses nanotechnology to provide solutions within oil and gas — among other sectors, including life sciences, consumer goods, and more. Within O&G specifically, the company has designed dissolvable frac plugs and balls with superior performance and lower cost, as well as a flowable sensor for downhole measurements.

dataVediK

Early-stage Houston startup dataVediK focusing on enterprise digital transformation with a plan to create an artificial intelligence platform for collaboration between data scientists and domain experts to provide tech solutions for oil and gas — such as optimizing operations costs and productivity, enhancing safety, and more.

DelfinSia

Houston-based Delfin specializes in text analytics and is working with two oil supermajors. Sia, Delfin's product, is a virtual adviser, able to reference a client's unstructured data in real-time to ensure that decisions are fully informed. Users can simply ask Sia a question and get the best answers from company data.

Flutura Decision Sciences and Analytics

Flutura's motto is to promote actions — not just insights with data. The company's main product is Cerebra uses artificial intelligence and industrial internet of things to connect the dots within the oil and gas supply chain. Flutura's clients include Shell, Honeywell, Henkel, TechnipFMC, Patterson UTI, ABB, BJ Services, Daimler Benz, and more.

MyPass Global

A workforce management system, MyPass Global is putting the power of data into the hands of the individual workers at oil and gas companies and is creating digital work skills passport for each employee. The startup has developed a network of over 180 business partners across Australia, New Zealand, and the United States, which includes more than 27,000 registered workers.

Nomad Proppant Services

For E&P companies, Nomad is revolutionizing the way sand is delivered and used by wells. The average well uses 10,000 tons of sand, and that means trucking that volume via long hauls. However, Nomad has created a new, mobile mine that can save 25 percent of the company's spend on sand.

Osperity

Houston-based Osperity's technology provides AI-driven intelligent visual monitoring for industrial operations that can result in improved safety, reduced carbon footprints, and more. The company has more than 40 industrial customers using its monitoring services. Osperity offices in the Galleria area and has a location in Calgary.

PhDsoft Technology

PhDsoft, an engineering technology company, has created a technology specializing in industrial digital twins. The company's 4D software, PhDC4D®, can predict the effect of time and elements on equipment and facilities, which can save its industrial clients money and downtime of its machinery, as well as improve safety conditions.

Quidnet Energy

Clean energy tech company, Quidnet Energy, is providing electricity storage solutions that are cost effective and are able to be used long term. Quidnet uses traditional pumped hydro storage that, before the company, was restricted to specific terrains. The company offices out of downtown Houston.

SOTAOG

Data analytics company SOTAOG wants to be one-stop shop for its energy clients' data needs. SOTAOG's proprietary algorithms can provide real-time data that can improve operations and create cost-saving initiatives. The company works out of The Cannon's West Houston campus.

Voyager

Houston-based software startup Voyager is making waves in the maritime bulk-shipping industry. Whether shipping plans are transporting crude oil and LNG or complex offshore rig movements, Voyager can replace the thousands of logistics emails shared across several companies and bring communications and data onto one platform. The company's main office is in downtown Houston, but also has an office in Brazil.

WellNoz

WellNoz creates inflow control devices, or ICDs, for its oil and gas industry clients. The downhole devices are crucial for controlling the opening and closing of the well. WellNoz's device is made from a proprietary metal alloy that remains strong to remain closed when required, and then dissolves after a certain time to open up the valve. The startup's first client is Abu Dhabi National Oil Company, which will will purchase 10,000 ICDs each year for the next five years.

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Autonomous truck company rolls out driverless Houston-Dallas route

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Houston is helping drive the evolution of self-driving freight trucks.

In October, Aurora opened a more than 90,000-square-foot terminal at a Fallbrook Drive logistics hub in northwest Houston to support the launch of its first “lane” for driverless trucks—a Houston-to-Dallas route on the Interstate 45 corridor. Aurora opened its Dallas-area terminal in April and the company began regular driverless customer deliveries between the two Texas cities on April 27.

Close to half of all truck freight in Texas moves along I-45 between Houston and Dallas.

“Now, we are the first company to successfully and safely operate a commercial driverless trucking service on public roads. Riding in the back seat for our inaugural trip was an honor of a lifetime – the Aurora Driver performed perfectly and it’s a moment I’ll never forget,” Chris Urmson, CEO and co-founder of Pittsburgh-based Aurora, said in a news release.

Aurora produces software that controls autonomous vehicles and is known for its flagship product, the Aurora Driver. The software is installed in Volvo and Paccar trucks, the latter of which includes brands like Kenworth and Peterbilt.

Aurora previously hauled more than 75 loads per week under the supervision of vehicle operators from Houston to Dallas and Fort Worth to El Paso for customers in its pilot project, including FedEx, Uber Freight and Werner. To date, it has completed over 1,200 miles without a driver.

The company launched its new Houston to Dallas route with customers Uber Freight and Hirschbach Motor Lines, which ran supervised commercial pilots with Aurora.

“Transforming an old school industry like trucking is never easy, but we can’t ignore the safety and efficiency benefits this technology can deliver. Autonomous trucks aren’t just going to help grow our business – they’re also going to give our drivers better lives by handling the lengthier and less desirable routes,” Richard Stocking, CEO of Hirschbach Motor Lines, added in the statement.

The company plans to expand its service to El Paso and Phoenix by the end of 2025.

“These new, autonomous semis on the I-45 corridor will efficiently move products, create jobs, and help make our roadways safer,” Gov. Greg Abbott added in the release. “Texas offers businesses the freedom to succeed, and the Aurora Driver will further spur economic growth and job creation in Texas. Together through innovation, we will build a stronger, more prosperous Texas for generations.”

In July, Aurora said it raised $820 million in capital to fuel its growth—growth that’s being accompanied by scrutiny.

In light of recent controversies surrounding self-driving vehicles, the International Brotherhood of Teamsters, whose union members include over-the-road truckers, recently sent a letter to Lt. Gov. Dan Patrick calling for a ban on autonomous vehicles in Texas.

“The Teamsters believe that a human operator is needed in every vehicle—and that goes beyond partisan politics,” the letter states. “State legislators have a solemn duty in this matter to keep dangerous autonomous vehicles off our streets and keep Texans safe. Autonomous vehicles are not ready for prime time, and we urge you to act before someone in our community gets killed.”

Houston cell therapy company launches second-phase clinical trial

fighting cancer

A Houston cell therapy company has dosed its first patient in a Phase 2 clinical trial. March Biosciences is testing the efficacy of MB-105, a CD5-targeted CAR-T cell therapy for patients with relapsed or refractory CD5-positive T-cell lymphoma.

Last year, InnovationMap reported that March Biosciences had closed its series A with a $28.4 million raise. Now, the company, co-founded by Sarah Hein, Max Mamonkin and Malcolm Brenner, is ready to enroll a total of 46 patients in its study of people with difficult-to-treat cancer.

The trial will be conducted at cancer centers around the United States, but the first dose took place locally, at The University of Texas MD Anderson Cancer Center. Dr. Swaminathan P. Iyer, a professor in the department of lymphoma/myeloma at MD Anderson, is leading the trial.

“This represents a significant milestone in advancing MB-105 as a potential treatment option for patients with T-cell lymphoma who currently face extremely limited therapeutic choices,” Hein, who serves as CEO, says. “CAR-T therapies have revolutionized the treatment of B-cell lymphomas and leukemias but have not successfully addressed the rarer T-cell lymphomas and leukemias. We are optimistic that this larger trial will further validate MB-105's potential to address the critical unmet needs of these patients and look forward to reporting our first clinical readouts.”

The Phase 1 trial showed promise for MB-105 in terms of both safety and efficacy. That means that potentially concerning side effects, including neurological events and cytokine release above grade 3, were not observed. Those results were published last year, noting lasting remissions.

In January 2025, MB-105 won an orphan drug designation from the FDA. That results in seven years of market exclusivity if the drug is approved, as well as development incentives along the way.

The trial is enrolling its single-arm, two-stage study on ClinicalTrials.gov. For patients with stubborn blood cancers, the drug is providing new hope.

Elon Musk's SpaceX site officially becomes the city of Starbase, Texas

Starbase, Texas

The South Texas home of Elon Musk’s SpaceX rocket company is now an official city with a galactic name: Starbase.

A vote Saturday, May 3, to formally organize Starbase as a city was approved by a lopsided margin among the small group of voters who live there and are mostly Musk’s employees at SpaceX. With all the votes in, the tally was 212 in favor to 6 against, according to results published online by the Cameron County Elections Department.

Musk celebrated in a post on his social platform, X, saying it is “now a real city!”

Starbase is the facility and launch site for the SpaceX rocket program that is under contract with the Department of Defense and NASA that hopes to send astronauts back to the moon and someday to Mars.

Musk first floated the idea of Starbase in 2021 and approval of the new city was all but certain. Of the 283 eligible voters in the area, most are believed to be Starbase workers.

The election victory was personal for Musk. The billionaire’s popularity has diminished since he became the chain-saw-wielding public face of President Donald Trump’s federal job and spending cuts, and profits at his Tesla car company have plummeted.

SpaceX has generally drawn widespread support from local officials for its jobs and investment in the area.

But the creation of an official company town has also drawn critics who worry it will expand Musk’s personal control over the area, with potential authority to close a popular beach and state park for launches.

Companion efforts to the city vote include bills in the state Legislature to shift that authority from the county to the new town’s mayor and city council.

All these measures come as SpaceX is asking federal authorities for permission to increase the number of South Texas launches from five to 25 a year.

The city at the southern tip of Texas near the Mexico border is only about 1.5 square miles (3.9 square kilometers), crisscrossed by a few roads and dappled with airstream trailers and modest midcentury homes.

SpaceX officials have said little about exactly why they want a company town and did not respond to emailed requests for comment.

“We need the ability to grow Starbase as a community,” Starbase General Manager Kathryn Lueders wrote to local officials in 2024 with the request to get the city issue on the ballot.

The letter said the company already manages roads and utilities, as well as “the provisions of schooling and medical care” for those living on the property.

SpaceX officials have told lawmakers that granting the city authority to close the beach would streamline launch operations. SpaceX rocket launches and engine tests, and even just moving certain equipment around the launch base, requires the closure of a local highway and access to Boca Chica State Park and Boca Chica Beach.

Critics say beach closure authority should stay with the county government, which represents a broader population that uses the beach and park. Cameron County Judge Eddie Trevino, Jr. has said the county has worked well with SpaceX and there is no need for change.

Another proposed bill would make it a Class B misdemeanor with up to 180 days in jail if someone doesn’t comply with an order to evacuate the beach.

The South Texas Environmental Justice Network, which has organized protests against the city vote and the beach access issue, held another demonstration Saturday that attracted dozens of people.

Josette Hinojosa, whose young daughter was building a sandcastle nearby, said she was taking part to try to ensure continued access to a beach her family has enjoyed for generations.

With SpaceX, Hinojosa said, “Some days it’s closed, and some days you get turned away."

Organizer Christopher Basaldú, a member of the Carrizo/Comecrudo Nation of Texas tribe, said his ancestors have long been in the area, where the Rio Grande meets the Gulf.

“It’s not just important,” he said, “it’s sacred.”

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