Houston energy startup closes $17M series A to fund Texas geothermal facility

money moves

Houston-based Sage Geosystems announced the first close of $17 million round led by Chesapeake Energy Corp. Photo via sagegeosystems.com

A Houston geothermal startup has announced the close of its series A round of funding.

Houston-based Sage Geosystems announced the first close of $17 million round led by Chesapeake Energy Corp. The proceeds aim to fund its first commercial geopressured geothermal system facility, which will be built in Texas in Q4 of 2024. According to the company, the facility will be the first of its kind.

The venture is joined by technology investor Arch Meredith, Helium-3 Ventures and will include support from existing investors Virya, LLC, Nabors Industries Ltd., and Ignis Energy Inc.

“The first close of our Series A funding and our commercial facility are significant milestones in our mission to make geopressured geothermal system technologies a reality,” Cindy Taff, CEO of Sage Geosystems, says in a news release. “The success of our GGS technologies is not only critical to Sage Geosystems becoming post-revenue, but it is an essential step in accelerating the development of this proprietary geothermal baseload approach.

"This progress would not be possible without the ongoing support from our existing investors, and we look forward to continuing this work with our new investors," she continues.

The 3-megawatt commercial facility will be called EarthStore and will use Sage’s technology that harvests energy from pressurized water from underground. The facility will be able to store energy — for short and long periods of time — and can be paired with intermittent renewable energy sources like wind and solar. It will also be able to provide baseload, dispatchable power, and inertia to the electric grid.

In 2023, Sage Geosystems debuted the EarthStore system in a full-scale commercial pilot project in Texas. The pilot produced 200 kilowatt for more than 18 hours, 1 megawatt for 30 minutes, and generated electricity with Pelton turbines. The system had a water loss of less than 2 percent and a round-trip efficiency (RTE) of 70-75.

From Your Site Articles
This week's roundup of Houston innovators includes Jai Shah of Kahuna, Cindy Taff of Sage Geosystems, and Patrick Flam of Revterra. Photos courtesy

3 Houston innovators to know this week

who's who

Editor's note: Each week, I'm introducing you to three Houston innovators to know — three individuals behind recent innovation and startup news stories in Houston as reported by InnovationMap. Learn more about them and their recent news below by clicking on each article.

Jai Shah, CEO of Kahuna Workforce Solutions

Kahuna CEO Jai Shah shares how he plans on deploying the $21 million his Houston company just raised. Photo courtesy of Kahuna

With a recent $21 million series B funding round set to fuel more growth and expand an impressive client roster, Kahuna Workforce Solutions is riding a big wave into 2024.

CEO Jai Shah tells InnovationMap that the Houston skills management software service company’s Hawaiian name captures their style.

“Kahuna is that kind of expert, competent leader in a tribe or family,” Jai says. “That’s all because we had this concept of really wanting to be providing a very..family-oriented consulting approach. Treat our customers like family, and with respect, love and really just try and deliver on that promise.” Continue reading.

Cindy Taff, CEO of Sage Geosystems

Cindy Taff of Sage Geosystems explains why she's so optimistic about geothermal and her company's technology. Photo courtesy of Sage

Geothermal energy is an integral part of decarbonizing the energy industry, and Sage Geosystems CEO Cindy Taff believes her company's tech has what it takes to lead the way.

Founded in Houston in 2020, Sage Geosystems is focused on two business lines — energy storage and geothermal. In addition to developing these technologies, Taff says Sage has "cracked the code" on both reducing costs and maximizing electricity output. Sage has customers ranging from Nabors, the world’s largest land-based drilling company, and Virya LLC, an investor in climate ventures with high impact of eliminating global greenhouse gas emissions or sequestering CO2. Continue reading.

Patrick Flam, CFO of Revterra

Revterra was selected from among 10 finalists receiving up to $1 million piloting opportunities. Photo via ADNOC

Revterra, which produces novel batteries made from recycled steel, has been awarded a million-dollar piloting opportunity by ADNOC following a global competition. The ADNOC Decarbonization Technology Challenge, in collaboration with AWS, bp, Hub71, and the Net Zero Technology Centre, sought to find emerging climate tech innovations that are ready for scale.

At the event in Dubai, Revterra was selected from among 10 finalists receiving up to $1 million piloting opportunities. In addition to the $1 million, they will gain access to facilities and expertise at the ADNOC Research and Innovation Center in Abu Dhabi.

“We are thrilled to win this opportunity,” Patrick Flam, CFO of Revterra, says in a news release. “At Revterra, we have developed an environmentally friendly battery that doesn’t rely on metals like lithium, nickel, or cobalt.” Continue reading.

Cindy Taff of Sage Geosystems explains why she's so optimistic about geothermal and her company's technology. Photo courtesy of Sage

Houston sustainability startup founder on why geothermal is a 'cornerstone' tech for energy transition

Q&A

Geothermal energy is an integral part of decarbonizing the energy industry, and Sage Geosystems CEO Cindy Taff believes her company's tech has what it takes to lead the way.

Founded in Houston in 2020, Sage Geosystems is focused on two business lines — energy storage and geothermal. In addition to developing these technologies, Taff says Sage has "cracked the code" on both reducing costs and maximizing electricity output. Sage has customers ranging from Nabors, the world’s largest land-based drilling company, and Virya LLC, an investor in climate ventures with high impact of eliminating global greenhouse gas emissions or sequestering CO2

In a Q&A that originally ran on EnergyCapital, she explains why she's so optimistic about geothermal and her company's technology.

EnergyCapital: Why do you believe geothermal has a major role to play in the energy transition?

Cindy Taff: Geothermal energy is not just a contender in the energy transition; it is a cornerstone. The question isn’t if we can drive down the costs to be competitive with wind, solar, and natural gas—it’s when. As renewable credits for solar and wind begin to expire, these industries will face the reality of their “real costs.”

As a 24/7 renewable energy source, it provides a constant and reliable power supply, unlike the intermittent nature of solar and wind. Moreover, the rising costs of lithium-ion batteries, driven by the increasing scarcity of lithium and cobalt, further underscore geothermal’s economic viability.

My extensive experience in both geothermal and the O&G sector is a testament to the synergistic relationship between these industries. The skills honed in O&G are not only transferable—they are essential to advancing geothermal technologies. In summary, the O&G industry can make a huge impact to geothermal by systematically driving down costs while scaling up, which is exactly what we did for unconventional shales.

EC: When it comes to finding partners or investors, what are you looking for? What should potential partners/investors know about Sage?

CT: Our technology is ready to scale today, not five to 10 years into the future. We will deliver our first energy storage power plant in 2024 and our first enhanced geothermal power plant in 2025. We are looking for synergies with investors, such as companies with power market or O&G expertise.

In addition, we seek to partner with others who have local content and relationships in places around the world to enable us to quickly and broadly scale our technologies. Sage's technologies are extremely flexible, in that we can deliver energy storage or enhanced geothermal to the utility grid or behind-the-meter to targeted commercial customers, including a dedicated microgrid (i.e., for the U.S. Air Force). Our technologies can provide electricity to remote locations such as mining operations or to large population centers such as Houston, and everything in between.

EC: What's the biggest challenge Sage is facing as an energy transition startup and how do you plan to tackle it?

CT: A common misunderstanding about Sage is that we only do energy storage or that we only do geothermal. However, we do both and the technologies build on one another. Essentially, our energy storage technologies will allow us to "walk" before we "run" with geothermal. On a related point, at this point in the energy transition, time to commercialization and affordability of new clean technology are the leading factors in terms of climate impact. As the first geothermal company to deliver a cost-effective commercial enhanced geothermal system, we are poised to truly make a meaningful difference.

EC: As a woman in a male-dominated industry tackling a global problem, what's been your biggest lesson learned? What's your advice to fellow energy tech female founders?

CT: In my journey as a woman in the energy tech industry, I’ve been fortunate to focus on the work and the global challenges we’re addressing, rather than on any gender-based obstacles. My biggest lesson learned is that innovation and leadership know no gender. Success is driven by perseverance, vision, and collaboration.

------

This conversation has been edited for brevity and clarity.

The six finalists for the sustainability category for the 2023 Houston Innovation Awards weigh in on their challenges overcome. Photos courtesy

Top Houston-based sustainability startups share their 4 biggest challenges

houston innovation awards

Six Houston-area sustainability startups have been named finalists in the 2023 Houston Innovation Awards, but they didn't achieve this recognition — as well as see success for their businesses — without any obstacles.

The finalists were asked what their biggest challenges have been. From funding to market adoption, the sustainability companies have had to overcome major obstacles to continue to develop their businesses.

The awards program — hosted by InnovationMap, and Houston Exponential — will name its winners on November 8 at the Houston Innovation Awards. The program was established to honor the best and brightest companies and individuals from the city's innovation community. Eighteen energy startups were named as finalists across all categories, but the following responses come from the finalists in the sustainability category specifically.

    Click here to secure your tickets to see who wins.

    1. Securing a commercial pilot

    "As an early-stage clean energy developer, we struggled to convince key suppliers to work on our commercial pilot project. Suppliers were skeptical of our unproven technology and, given limited inventory from COVID, preferred to prioritize larger clients. We overcame this challenge by bringing on our top suppliers as strategic investors. With a long-term equity stake in Fervo, leading oilfield services companies were willing to provide Fervo with needed drilling rigs, frack crews, pumps, and other equipment." — Tim Latimer, founder and CEO of Fervo Energy

    2. Finding funding

    "Securing funding in Houston as a solo cleantech startup founder and an immigrant with no network. Overcome that by adopting a milestone-based fundraising approach and establishing credibility through accelerator/incubator programs." — Anas Al Kassas, CEO and founder of INOVUES

    "The biggest challenge has been finding funding. Most investors are looking towards software development companies as the capital costs are low in case of a risk. Geothermal costs are high, but it is physical technology that needs to be implemented to safety transition the energy grid to reliable, green power." — Cindy Taff, CEO of Sage Geosystems

    3. Market adoption

    "Market adoption by convincing partners and government about WHP as a solution, which is resource-intensive. Making strides by finding the correct contacts to educate." — Janice Tran, CEO and co-founder of Kanin Energy

    "We are creating a brand new financial instrument at the intersection of carbon markets and power markets, both of which are complicated and esoteric. Our biggest challenge has been the cold-start problem associated with launching a new product that has effectively no adoption. We tackled this problem by leading the Energy Storage Solutions Consortium (a group of corporates and battery developers looking for sustainability solutions in the power space), which has opened up access to customers on both sides of our marketplace. We have also leveraged our deep networks within corporate power procurement and energy storage development to talk to key decision-makers at innovative companies with aggressive climate goals to become early adopters of our products and services." — Emma Konet, CTO and co-founder of Tierra Climate

    4. Long scale timelines

    "Scaling and commercializing industrial technologies takes time. We realized this early on and designed the eXERO technology to be scalable from the onset. We developed the technology at the nexus of traditional electrolysis and conventional gas processing, taking the best of both worlds while avoiding their main pitfalls." — Claus Nussgruber, CEO of Utility Global

    ------

    This article originally ran on EnergyCapital.

    Ad Placement 300x100
    Ad Placement 300x600

    CultureMap Emails are Awesome

    Property Showcase

    NASA revamps Artemis moon landing program by modeling it after Apollo

    To the moon

    NASA is revamping its Artemis moon exploration program to make it more like the fast-paced Apollo program half a century ago, adding an extra practice flight before attempting a high-risk lunar landing with a crew in two years.

    The overhaul in the flight lineup came just days after NASA’s new moon rocket returned to its hangar for more repairs, and a safety panel warned the space agency to scale back its overly ambitious goals for humanity’s first lunar landing since 1972.

    Artemis II, a lunar fly-around by four astronauts, is off until at least April because of rocket problems.

    The follow-up mission, Artemis III, had been targeting a landing near the moon’s south pole by another pair of astronauts in about three years. But with long gaps between flights and concern growing over the readiness of a lunar lander and moonwalking suits, NASA’s new administrator Jared Isaacman announced that mission would instead focus on launching a lunar lander into orbit around Earth in 2027 for docking practice by astronauts flying in an Orion capsule.

    The new plan calls for a moon landing — potentially even two moon landings — by astronauts in 2028.

    “Everybody agrees. This is the only way forward,” Isaacman said.

    The hydrogen fuel leaks and helium flow problems that struck the Space Launch System rocket on the pad at NASA's Kennedy Space Center in February also plagued the first Artemis test flight without a crew in 2022.

    Another three-year gap was looming between Artemis II and the moon landing by astronauts as originally envisioned, Isaacman said.

    Isaacman stressed that “it should be incredibly obvious” that three years between flights is unacceptable. He'd like to get it down to one year or even less.

    Isaacman, a tech billionaire who bought his own trips to orbit and performed the world’s first private spacewalk, took the helm at NASA in December.

    During NASA’s storied Apollo program, he said, astronauts’ first flight to the moon was followed by two more missions before Neil Armstrong and Buzz Aldrin landed on the moon. What's more, he added, the Apollo moonshots followed one another in quick succession, just as the earlier Projects Mercury and Gemini had rapid flight rates, sometimes coming just a few months apart.

    Twenty-four Apollo astronauts flew to the moon from 1968 through 1972, with 12 of them landing.

    “No one at NASA forgot their history books. They knew how to do this," Isaacman said. “Now we're putting it in action.”

    To pick up the pace and reduce risk, NASA will standardize its Space Launch System rockets moving forward, Isaacman said. These are the massive rockets that will launch astronauts to the moon aboard Orion capsules. At the same time, Elon Musk's SpaceX and Jeff Bezos' Blue Origin are speeding up their work on the landers needed to get the astronauts from lunar orbit down to the surface.

    Isaacman said next year will see an Orion crew rendezvousing in orbit around Earth with SpaceX's Starship, Blue Origin's Blue Moon or both landers. It's similar to the methodical approach that worked so well during Apollo in the late 1960s, he noted. Apollo 8, astronauts' first flight to the moon, was followed by two more missions before Armstrong and Aldrin aimed for the lunar surface.

    “We should be getting back to basics and doing what we know works,” he said.

    The Aerospace Safety Advisory Panel recommended that NASA revise its objectives for Artemis III “given the demanding mission goals.” It’s urgent the space agency do that, the panel said, if the United States hopes to safely return astronauts to the moon. Isaacman said the revised Artemis flight plan addresses the panel's concerns and is supported by industry and the Trump administration.

    Booming Houston suburb launches innovation grant to attract startups

    innovation incentive

    Think you’ve got a burgeoning startup? Consider moving it to southwest Houston. The City of Sugar Land announced the Sugar Land Starts Innovation Fund last week to support companies that move jobs to the area.

    “The Sugar Land Starts Innovation Fund is designed to support companies that are ready to grow and make a meaningful, long-term commitment to our community,” Colby Millenbruch, business recruitment manager for the City of Sugar Land, said in a news release. “By focusing on revenue-generating startups and performance-based incentives, we are creating a clear pathway for innovative companies to scale while reenergizing existing office space.”

    The performance-based, non-equity dilutive grant program is open to companies that demonstrate at least $250,000 in generated revenue or $500,000 in institutional backing from a bank or venture capital firm. They must commit to hiring or relocating at least three employees in Sugar Land for a minimum of three years and at an average salary of $61,240. Compliance will be verified through Texas Workforce Commission reporting.

    The fund builds off the Sugar Land Plug and Play partnership to turn the city into an innovative technology hub.

    Collaboration with the Silicon Valley-based startup incubator and accelerator on a physical location in southwest Houston has supported 22 startups and has raised $6.5 million in capital since it officially launched in Sugar Land last March. Companies located at the Sugar Land Plug and Play include Synaps, a browser-based design platform for architects, and Intero Biosystems, which produces miniature human organs for preclinical drug development.

    In addition to direct funding and business space, both the new grant and the overall Plug and Play project facilitate meetings with Houston-area businesses like CenterPoint Energy.

    This should not only bring new industries to Sugar Land, but also allow existing companies to expand outward as technological investors to create a web of new progress.

    “This investment is about more than technology. It’s about creating an environment where innovation can take root, grow, and deliver lasting value for the Sugar Land community,” David Steele, director of Texas at Plug and Play, added in the release. “Sugar Land is setting itself apart by taking a long-term view, investing in founders, partnerships, and technologies that will define the next chapter of growth. We’re proud to partner with the city in building an innovation ecosystem that benefits both entrepreneurs and the broader community.”

    Income study shows $100,000 salary goes further in Houston in 2026

    Money Talk

    A 2026 income study has good news for big earners in Houston: A six-figure salary goes further than it did last year.

    A Houston resident's $100,000 salary is worth $84,840 after taxes and adjusted for the local cost of living, according to the new financial analysis from SmartAsset. That's about $1,500 more than Houstonians were bringing home last year.

    The 2026 take-home pay is about 8 percent higher than it was in 2024, when the same salary had an adjusted value of $78,089.

    SmartAsset used its paycheck calculator to apply federal, state and local taxes to an annual salary of $100,000 in 69 of the largest American cities. The figure was then adjusted for the local cost of living (which included average costs for housing, groceries, utilities, transportation, and miscellaneous goods and services). Cities were then ranked based on where a six-figure salary is worth the least after applicable taxes and cost of living adjustments.

    Houston ranked No. 60 in the overall ranking of U.S. cities where $100,000 is worth the least. If the rankings were flipped and the cities were ranked based on where $100,000 goes the furthest, that places Houston in the No. 10 spot nationwide.

    Manhattan, New York remains the No. 1 city where a six-figure salary is worth the least. A Manhattan resident's take-home pay is only worth $29,420 after taxes and adjusted for the cost of living, which is 3.10 percent lower than it was in 2025.

    SmartAsset determined Manhattan has a 29.7 percent effective tax rate on six-figure salaries. Meanwhile, the effective tax rate on a $100,000 salary in Texas (based on the eight cities examined in the report) is 21.1 percent. It's worth highlighting that New York implements a statewide graduated-rate income tax from 4-10.90 percent, whereas Texas is one of only eight states that don't tax residents' income.

    Oklahoma City, No. 69, is the U.S. city in the report where a $100,000 salary stretches the furthest. A six-figure salary is worth $91,868 in 2026, up from $89,989 last year.

    This is the post-tax value of a $100,000 salary in other Texas cities, and their ranking in the report:

    • Plano (No. 27): $72,653
    • Dallas (No. 47): $80,103
    • Austin (No. 53): $82,446
    • Lubbock (No. 59): $84,567
    • San Antonio (No. 62): $86,419
    • El Paso (No. 67): $90,276
    • Corpus Christi (No. 68): $91,110
    According to the report, getting some "financial breathing room" by making six-figures really depends on where someone lives and what their lifestyle is. For residents living in the 42 states that levy some amount of income tax, their take-home pay dwindles further."And depending on how taxes are filed, reaching a $100,000 income may push a household from the 22 percent to 24 percent marginal tax bracket," the report's author wrote. "Meanwhile, locations with high costs across housing and everyday essentials may be less forgiving to a $100,000 income."

    ---

    This article originally appeared on CultureMap.com.

    View All Listings