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

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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.

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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

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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.

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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

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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

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    This article originally ran on EnergyCapital.

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    Houston ranks No. 3 among rising coding markets in U.S.

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    When you think of coders—the wizards who design, write and test programming languages for software and mobile apps—tech hotbeds like Silicon Valley and Austin might pop into your head.

    But Houston has earned a spot on the coding map.

    A new study puts the Houston area in third place among the fastest-growing metros for coding in the U.S.

    The study, published by coding platform Coddy Tech, ranks Albuquerque, New Mexico, as the top on-the-rise market for coding. San Antonio sits in second place.

    Houston earned a “momentum score” of 77 out of 100. The momentum category measured job growth for developers, rising interest in coding as measured by online searches, and growth in hackathon activity.

    Here are the 10 fastest-rising U.S. metros for coding:

    • No. 1 Albuquerque, New Mexico
    • No. 2 San Antonio
    • No. 3 Houston
    • No. 4 Jacksonville, Florida
    • No. 5 Cape Coral, Florida
    • No. 6 Columbia, South Carolina
    • No. 7 New York City
    • No. 8 Salt Lake City
    • No. 9 North Port, Florida
    • No. 10 Tampa, Florida

    The study analyzed the country’s 75 largest metros “to map where coding has taken hold and where it’s catching fire.” It took into account learning searches, GitHub developer density, job growth, interest in bootcamps and hackathon activity. Only 64 metros were eligible for the ranking of fastest-growing markets.

    Austin tops ranking of coding capitals

    Coddy crowned Austin the coding capital of the country, with Houston landing at No. 24 in the ranking of the most established coding hubs. San Antonio appeared at No. 16 and Dallas at No. 22.

    Here are the top 10 coding hubs:
    • No. 1 Austin
    • No. 2 San Jose, California
    • No. 3 Seattle
    • No. 4 San Francisco
    • No. 5 New York City
    • No. 6 Salt Lake City
    • No. 7 Denver
    • No. 8 San Diego
    • No. 9 Los Angeles
    • No. 10 Raleigh, North Carolina

    Why do coders matter?

    Without coders, cellphones, laptops, smart TVs and other devices might not work well — or at all. Coding allows people to communicate with these devices, according to ComputerScience.org.

    “Since computers do not communicate like humans, coding acts as a translator,” ComputerScience.org explains. “Code converts human input into numerical sequences that computers understand.”

    NASA awards Texas Space Commission role in $10M aerospace workforce initiative

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    The Texas Space Commission is one of seven organizations tapped by NASA to lead the space agency's new state and regional Skilled Technical Workforce Hubs.

    The $10.5 million initiative aims to help foster the next generation of skilled workers in the aerospace industry.

    Through the new program, the hubs will work together over the next three years to meet growing industry needs by aligning “industry employers, community colleges, high school career and technical education programs, and workforce systems,” according to a news release from NASA.

    It aims to create clear pathways for workers in technical jobs, like welding, electrical work and machining, plus other jobs that require advanced STEM knowledge but do not require a bachelor’s degree.

    “The need for technical talent is already urgent and will only continue to grow as we return humanity to the Moon and set our sights on Mars and beyond,” Elaine Ho, associate administrator for the Office of STEM Engagement at NASA, said in the release. “NASA is uniquely positioned to be the catalyst and convener that accelerates America’s aerospace workforce development and fosters the next generation of technicians.”

    As part of the initiative, the TSC plans to launch the statewide network known as the Texas Space STEM Alliance (TSSA). According to a TSC release, the TSSA will link up schools, colleges, workforce groups and aerospace companies to build a pipeline for space-industry workers.

    Additionally, the TSC is developing the Texas Aerospace Pathways Plus (TAP+) portal to consolidate information on training programs, internships, apprenticeships, employment opportunities and scholarships, while also identifying regional gaps in workforce opportunities.

    Other state and regional organizations to receive the award include:

    • Antelope Valley Community College District in Lancaster, California
    • Georgia Tech Research Corporation
    • Minnesota State Colleges and Universities
    • Southern Utah University
    • Space Florida
    • State Board for Community Colleges and Occupation Education, Arapahoe Community College in Littleton, Colorado

    The Houston area is home to more than 43,000 aerospace and aviation professionals, according to the Greater Houston Partnership. The Texas Space Commission has been awarded $150 million for 24 projects since being established to increase the state’s space economy in 2023.

    The funding for the NASA state hubs comes from NASA’s Office of STEM Engagement through its Next Gen STEM Project.

    Amazon's robotaxi service Zoox rolls out in 'sprawling' Houston market

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    Amazon-owned robotaxi ride-hailing service Zoox is zooming into Houston in September, becoming the latest robotaxi operator jockeying for local riders.

    Initially, self-driving retrofitted SUVs with safety drivers on board will serve downtown Houston, centrally located tourist hotspots, and certain residential neighborhoods. The SUVs will test Houston roads before Zoox rolls out autonomous robotaxis here, the company says.

    Zoox takes Houston for a test drive

    At the outset, Zoox says, a limited number of vehicles will be driven by people to gather data about Houston roads.

    Zoox test drive Photo courtesy of Zoox

    “This helps create a detailed picture of each street, from road geometry to traffic lights,” the company says. “Once we have mapped out an area, we will test autonomous driving capabilities. Safety and operational readiness govern the pace of our rollout.”

    Zoox says its robotaxi differs from vehicles operated by other ride-hailing services.

    The all-electric robotaxi “is purpose-built for autonomous ride-hailing and designed for riders from day one,” the company says. “It has no traditional driving controls and instead has carriage-style seating, sliding glass doors, and features that let the rider personalize their journey.”

    To help manage the fleet, Zoox plans to open a depot in Houston for vehicle charging and maintenance, a representative says via email.

    Along with Houston, Zoox is launching this month in San Diego. The ride-hailing service already operates in Austin, Dallas, Atlanta, Las Vegas, Los Angeles, Miami, Phoenix, the San Francisco Bay Area, Seattle, and Washington, D.C.

    Zoox breaks into “sprawling” Houston market

    Zoox describes Houston as its “most sprawling market to date.”

    “Driving here means navigating complex service-road networks, unique merging scenarios, and challenging environmental conditions, including severe heat, heavy rain, and urban flooding,” the company says. “It’s a rigorous test of our technology across geography and terrain.”

    Zoox will join two other autonomous ride-hailing services in Houston:

    • Waymo began rolling in Houston in February. Alphabet, the parent company of Google, owns Waymo.
    • Electric vehicle manufacturer Tesla began offering robotaxi services earlier this year.

    A third Zoox competitor is arriving within the next year. A partnership comprising rideshare provider Uber, EV manufacturer Lucid, and autonomous technology company Nuro plans to launch a robotaxi service in Houston by mid-2027.

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    This article originally appeared on CultureMap.com.

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