Overheard: Here’s what these energy VCs think of the pandemic’s effect on the energy transition

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The energy industry is finally prioritizing new technology and greener energy — both in light of and in spite of a global pandemic. Photo via Getty Images

In a lot of ways, venture capital firms are tasked with predicting the future. They put money into tech and business services that are going to disrupt the status quo, and energy VCs are tasked with taking bets on the energy transition.

At a virtual event as a part of the 18th annual Rice Alliance Energy Tech Venture Forum, which is taking place online this week, a group of panelists moderated by Sandy Guitar, managing partner at the HX Venture Fund, discussed how the pandemic has affected the energy transition. The group of experts talked about the future of work, decarbonization, and more.

If you missed the event, here are a few key moments from the discussion.

“The role of digitization is going to be huge. The pandemic really exacerbated just how far oil and gas had been behind in that.”

— Sean Ebert, partner at Altira. Ebert explains that when times are good for energy companies, it's hard to get the attention of executives to introduce new technologies. Now, corporations are having to invest in tech that allows their employees to be mobile and remote.

“There’s never been a better time to invest in energy technology. … We are at a point where we can get the type of returns [we look for.]”

— George Coyle, managing partner at Energy Innovation Capital. Coyle adds that he's seen the pandemic effect major growth opportunities in energy startups in his portfolio.

“What we have is a sense of urgency that didn’t exist 15 years ago. Public companies virtually all have a sustainability report and need to show some sort of progress."

— Cory Steffek, managing director at Ara Partners. He adds, "I really think the opportunity in the near term is de-risking software or hardware technologies and showing people that you can construct assets where they can deploy substantial amounts of capital profitably. If you have that, from a returns standpoint, you have something that should generate significant yield."

“The part we have been focused on is how can you make the conventional more efficient, so energy-on-energy conversion is even better.”

— Hossam Elbadawy, managing director at SCF Ventures and technology partner at SCF Partners. He's referring to the question of whether to prioritize new low-carbon innovations or to make conventional methods more sustainable. His observation is that the solution is going to be a hybrid of both.

“When we think about the future of work, we think about what are the capabilities going to be required in the future to be able to improve operations in the field today?”

— Ricardo Angel, managing director and CEO of PIVA. Angel adds that, "a lot of activities might be replaced by AI," and he and his firm are thinking about how they can go about "developing the skills for the people who will be working with those tools."

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NASA awards Houston university $1.2M for diversity in aerospace initiative

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NASA will award the University of Houston $1.2 million toward a collaborative project with some of the biggest players in aerospace to foster diversity in the field.

The funds will go toward UH's Partnership for Inclusivity in Engineering Education and Research for Space, or PIE2RS, which is a collaboration between UH, UH-Clear Lake, NASA’s Johnson Space Center, the Boeing Company, and the Greater Houston Partnership.

PIE2RS will provide experiential learning opportunities for marginalized students through capstone projects, internships and research opportunities. It will also offer a 10-week paid research experience for 18 students each year, along with professional development workshops and mentoring opportunities.

It will be led by Jerrod A. Henderson, assistant professor of chemical and biomolecular engineering at UH. Karolos Grigoriadis, the Hugh Roy and Lillie Cranz Cullen Endowed Professor and chair of the Mechanical and Aerospace Engineering Department, will serve as co-principal investigator.

“Our research, as well as the research of leading scholars, has highlighted the challenges underrepresented students face, including isolation, marginalization, racial bias and hostile educational environments,” Henderson said in a statement. “Our goal with PIE2RS is to improve the recruitment and retention of students in aerospace-related STEM disciplines, increase their sense of belonging and broaden their participation through hands-on research and experiential learning opportunities.”

UH professors Olga Bannova, Mariam Manuel and Tian Chen will also work on the project along with collaborator Rick Greer.

The funds come from NASA’s Minority University Research and Education Project in partnership with the National Science Foundation’s Nation of Communities of Learners of Underrepresented Discoverers in Engineering and Science network, which aim to support diversity in the engineering fields.

UH is one of six universities to receive funding for DEI projects from NASA, totaling $7.2 million. The other institutions include:

Alabama A&M University
Morgan State University
North Carolina A&T University
University of Central Florida
University of Colorado – Denver

“With these awards, we are continuing to create pathways that increase access and opportunities in STEM for underrepresented and underserved groups,” Keya Briscoe, NASA's MUREP manager, said in a statement. “NASA continues to invest in initiatives that are critical in driving innovation, fostering inclusion, and providing access to the STEM ecosystem for everyone.”

NASA has inked several deals and agreements with Houston ties in recent months.

Space tech company Intuitive Machines (Nasdaq: LUNR, LUNRW) secured its fourth contract with NASA’s Commercial Lunar Payload Services, or CLPS, program last month for $116.9 million. The agreement includes six lunar deliveries.

In August, oil giant bp America and NASA agreed to share digital technology and technical expertise to boost U.S. space exploration efforts.

Ken Nguyen, principal technical program manager at bp, explained the unique opportunities behind the deal in a recent episode of the Houston Innovators Podcast.

First-of-its-kind electric jet to fly over greater Houston area

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An aircraft that's being touted as the first fully electric jet is taking off from Hobby Airport to serve the greater Houston area.

Lilium Jet, which takes off and lands vertically, is making its United States market debut at Houston-area facilities – Houston Hobby Airport, Conroe North Houston Regional Airport, and The Woodlands Heliport Lilium. Houston-based aircraft brokerage EMCJET will house the Lilium Jet at its Galaxy FBO Houston-area facilities at the airports.

“We are excited to transform Galaxy FBO into a cutting-edge hub for the eVTOL innovation,” Jeremy Gee, CEO of Galaxy FBO, says in a news release. "As the future of electric aviation takes flight, this marks a significant step in making Houston a leader in sustainable and efficient transportation solutions. Our team is proud to support Lilium's revolutionary mode of travel that will connect Greater Houston in ways never thought possible."

The Lilium Jet is capable of quickly connecting routes like Houston Hobby Airport to Galveston, Houston Spaceport to College Station, The Woodlands to Galveston, and others. The jet is designed for regional travel with its aerodynamic shape. The ducted electric fans prioritize efficiency and speed during forward flight. The jet’s anticipated initial operating range is roughly 110 miles. Lilium aims for the first piloted flight of the Lilium Jet to occur early in 2025.

“Lilium is serious about expanding in the U.S. and actively progressing towards FAA validation,” Lilium’s Vice President of Commercial Americas Matthew Broffman says in a news release.” As part of our commitment to working with communities across the U.S. and expanding our customer base, we’re excited to showcase our aircraft for the first time in Houston, a city with a proud legacy of aerospace innovation in America.”

The Greater Houston Partnership will also host a discussion with industry leaders on how electric aviation can “revolutionize regional travel” according to a news release.

“Houston is home to the world’s leading aerospace companies, and we’re thrilled to welcome Lilium and this next generation of aviation technology,” says Kevin Tipton, senior director for aerospace and aviation at GHP in a news release. “Together, we’re on the brink of something groundbreaking for our region.”

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This article originally ran on EnergyCapital.

US Latinas are contributing to the Houston economy at a volume worth celebrating

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Hispanic Heritage Month provides an opportunity each year to reflect on the impact Hispanics have made in our culture. Whether we recognize it or not, we experience this impact year-round through our food, sports, business, politics, science, education and the arts. Yet, one of the most important and lasting impacts that isn’t often celebrated is the role the Hispanic community plays in accelerating economic growth.

The recently released U.S. Latina GDP Report, commissioned by Bank of America, reveals a powerful truth: Latinas are a driving force in the U.S. economy, contributing $1.3 trillion to the GDP in 2021.

In fact, Latina economic output has grown over 50 percent in a decade - far outpacing the growth rate of any other segment. Today, the Latina GDP is larger than the entire economy of Florida, and that of every other state except California, New York and Texas.

This rapid rise reflects the resilience, hard work and entrepreneurial spirit of Latinas across the country. Here in Houston, these statistics are evident in the contributions of Latinabusiness owners who are driving our local economy and revitalizing our community.

Known as one of the most ethnically and culturally diverse cities in America, Houston is bolstered by an ever-growing Latino population. With over 2.8 million Hispanic and Latino residents in 2023, the Houston metropolitan area is home to the fourth-largest Hispanic and Latino population in the nation. Latina entrepreneurs are playing a vital role in shaping our economic landscape. About 25 percent of all Latino-owned businesses in Texas are owned by Latinas. To provide perspective, there are more than 11,000 Latino-owned businesses in Houston that are preserving the heritage of our community while fueling economic growth.

When it comes to college education, the number of Latinas with a bachelor’s degree or higher increased 103 percent between 2010 and 2021, while the number of highly-educated non-Hispanic females increased only 38.3 percent. And despite being just 9.3 percent of the U.S. population, Latinas are responsible for 30.2 percent of the U.S. labor force growth since 2010.

Through this increased educational attainment and powerful entrepreneurial mindset, Latinas continue to build thriving businesses that uplift their local communities, propel economic mobility and create generational wealth. They provide valuable services and act as role models, showing the next generation what is possible with dedication and opportunity.

As we celebrate Hispanic Heritage Month and the significant role Latinas play in our nation’s economic growth, we applaud the women who are strengthening our city, local communities and beyond.

These women are not just contributing to the economy; they are giving life to it.