Texas Central Partners hopes to partner with Amtrak on high-speed trains in Texas. Rendering courtesy of Texas Central

In the latest chapter in the saga of the high-speed bullet train between Houston and Dallas, Amtrak is now involved.

According to a press release, Texas Central Partners and Amtrak are exploring a partnership to work together on the proposed Dallas-Houston high-speed rail project that's been under consideration for more than a decade.

Amtrak has cooperated with Texas Central on various initiatives since 2016 and the two entities are now evaluating a potential partnership to determine the line's viability.

“If we are going to add more high-speed rail to this country, the Dallas to Houston Corridor is a compelling proposition and offers great potential,” says Amtrak senior VP of High-Speed Rail Development Programs Andy Byford. “We believe many of the country's biggest and fastest-growing metropolitan areas, like Houston and Dallas, deserve more high quality high-speed, intercity rail service, and we are proud to bring our experience to evaluate this potential project and explore opportunities with Texas Central so the state can meet its full transportation needs.”

The route being proposed would span approximately 240 miles, going at 250 mph, resulting in a trip that would take less than 90 minutes between the two cities.

Texas Central has been working towards getting a train rolling since 2013, including lining up a potential builder in 2021. But the project has had pushback from Texas politicians and landowners along the route; a lawsuit against the project was filed by six rural counties in 2021, and the Texas Legislature passed a law prohibiting the state from spending any funds on the project.

Facing a seeming dead end, Texas Central CEO Carlos Aguilar and its board members resigned in June 2022; Michael Bui, a consultant, has been serving as CEO since then.

Texas Central and Amtrak have submitted applications to several federal programs in connection with further study and design work, including the Consolidated Rail Infrastructure Safety and Improvements (CRISI) grant program, the Corridor Identification and Development program, and the Federal-State Partnership for Intercity Passenger Rail (FSP-National) grant program.

Amtrak previously entered into an agreement with Texas Central to provide through-ticketing using the Amtrak reservation system and other support services for the planned high-speed rail line.

"This high-speed train, using advanced, proven Shinkansen technology, has the opportunity to revolutionize rail travel in the southern U.S., and we believe Amtrak could be the perfect partner to help us achieve that,” says Bui in a statement.

Despite its detractors, the project is forecast to provide social, environmental, employment and economic benefits including reducing greenhouse gas emissions by more than 100,000 tons per year, saving 65 million gallons of fuel and removing 12,500 cars per day from I-45.

The release from Amtrak has statements from both Dallas Mayor Eric L. Johnson and Houston Mayor Sylvester Turner, who calls the collaboration between Texas Central and Amtrak "an important milestone for the City of Houston and this project."

Byford joined Amtrak in April 2023 to begin developing a team focused on high-speed opportunities throughout the U.S. In his newly created role, he will develop and lead the execution of Amtrak’s long-term strategy for high-speed rail throughout the country, including the extension of the Crescent from Mississippi through Louisiana and Texas; Kansas DOT’s Heartland Flyer Extension Corridor Identification and Development (Corridor ID) connecting Wichita to Oklahoma and Texas, and TxDOT’s applications for the Texas Triangle (Houston — Dallas – Fort Worth – San Antonio) routes.

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This article originally ran on CultureMap.

HCC is working on a new center focused on resiliency on its Northeast Campus. Image via HCC

Houston college system plans to open $30M resiliency-focused center

to the rescue

Houston’s initiative to protect the city from catastrophes is getting a big boost from Houston Community College.

The college is developing the Resilience Center of Excellence to aid the city’s resilience campaign. At the heart of this project is the 65,000-square-foot, $30 million Resiliency Operations Center, which will be built on a five-acre site HCC’s Northeast campus. The complex is scheduled to open in 2024.

HCC estimates the operations center will train about 3,000 to 4,000 local first responders, including police officers and firefighters, during the first three years of operation. They’ll be instructed to prepare for, manage, and respond to weather, health and manmade hazards such as hurricanes, floods, fires, chemical spills, and winter freezes.

According to The Texas Tribune, the operations center will include flood-simulation features like a 39-foot-wide swift water rescue channel, a 15-foot-deep dive area, and a 100-foot-long “rocky gorge” of boulders.

The college says the first-in-the-nation Resilience Center of Excellence will enable residents, employers, civic organizations, neighborhoods, and small businesses to obtain education and certification aimed at improving resilience efforts.

“Our objective is to protect the well-being of our citizens and our communities and increase economic stability,” Cesar Maldonado, chancellor of HCC, said when the project was announced.

Among the programs under the Resiliency Center of Excellence umbrella will be non-credit courses focusing on public safety and rescue, disaster management, medical triage, and debris removal.

Meanwhile, the basic Resilience 101 program will be available to businesses and community organizations, and the emergency response program is geared toward individuals, families, and neighborhoods.

HCC’s initiative meshes with the City of Houston’s Resilient Houston, a strategy launched in 2020 that’s designed to protect Houston against disasters. As part of this strategy, the city has hired a chief resilience and sustainability officer, Priya Zachariah.

“Every action we take and investment we make should continue to improve our collective ability to withstand the unexpected shocks and disruptions when they arrive — from hurricanes to global pandemics, to extreme heat or extreme cold,” Mayor Sylvester Turner said last year. “The time is now to stop doing things the way we’ve always done them because the threats are too unpredictable.”

In an InnovationMap guest column published in February 2021, Richard Seline, co-founder of the Houston-based Resilience Innovation Hub, wrote that the focus of resilience initiatives should be pre-disaster risk mitigation.

“There is still work to be done from a legislative and governmental perspective, but more and more innovators — especially in Houston — are proving to be essential in creating a better future for the next historic disaster we will face,” Seline wrote.

TMC3's Collaborative Building has topped out. Image courtesy of Texas Medical Center

First TMC3 Collaborative Building tops out, plans to open next year

medical milestone

Construction of Houston’s 250,000-square-foot TMC3 Collaborative Building has reached a milestone.

Founders of the research facility recently celebrated completion of the uppermost part of the building, known as “topping out.” Construction started in January 2021.

The building is part of the first phase of the TMC3 campus, a 37-acre life science property designed to capitalize on the intersection of medicine and commercialization. Founders of the campus are Texas Medical Center, the University of Texas MD Anderson Cancer Center, Texas A&M University Health Science Center, and the University of Texas Health Science Center at Houston.

The TMC3 Collaborative Building, set to open in 2023, will promote innovation and collaboration among the founding institutions, as well as with academic, healthcare, and industry partners. A key feature is a 43,000-square-foot research lab that’ll be shared by MD Anderson, Texas A&M Health, and UT Health Houston.

“The topping out of the TMC3 Collaborative Building marks an integral milestone in the future of life science research and innovation and reflects an unprecedented commitment to collaboration among the four founding institutions,” William McKeon, president and CEO of Texas Medical Center, says in a news release. “The lifesaving research and technologies that will come out of this building will truly revolutionize healthcare.”

In addition to the research lab, the building will include:

  • 85,000 square feet of lab and office space for industry partners.
  • 14,200 square feet for Texas Medical Center’s strategic initiatives, the Braidwell investment firm, the TMC Venture Fund, and national venture and equity fund partners.
  • A 7,000-square-foot atrium for lectures, programs, and informal events.

“Houston already has a place on the world stage as a leader in clinical care and life sciences. With the launch of the TMC3 Collaborative Building and larger TMC3 campus, we showcase why our city leads in the areas of innovation and technology,” Houston Mayor Sylvester Turner says. “In the process, we will create opportunities to bring new partners and industry to our city and generate new jobs for the residents of the Greater Houston community.”

Mayor Sylvester Turner says this new smart city technology partner will help digitize and optimize waste operations. Photo via rubicon.com

City of Houston partners with digital waste, recycling solutions company

smart city tech

The City of Houston announced that it has entered into a three-year partnership with Kentucky-based Rubicon with the goal of improving its waste, recycling, and heavy-duty municipal fleet operations.

According to a statement, the city has installed the company's RUBICONSmartCity platform on the Solid Waste Management Department’s 391 vehicles, and has trained the workforce on using the SaaS software.

“Partnering with Rubicon will help our great city optimize its solid waste operations and make it possible for us to digitize our entire waste and recycling management system,” Mayor Sylvester Turner said in a statement. “The City of Houston is committed to providing the highest level of service to its residents and this partnership will allow us to provide better services, save taxpayer dollars, and deliver a better quality of life for Houstonians.”

RUBICONSmartCity is a cloud-based suite that will allow the department's workforce to track key metrics about pickup, including issues at the curb and recycling contamination, as well as information about its fleet of vehicles. The platform includes a mobile app, an onboard data collection device, and a web-based portal.

The city envisions that information collected by RUBICONSmartCity will enhance reporting tools used by 311 and give the department a better understanding of what's happening in the field.

“The City’s Department of Solid Waste can use this information to advise and educate residents around service scheduling, best practices for waste and recycling management, and reduce costly return trips,” Solid Waste Management Department Director Mark Wilfalk said in a statement. “These insights, alongside route optimization and digitization efforts, are set to deliver an optimal operation to the City of Houston.”

RUBICONSmartCity is used in more than 70 cities across the U.S., including San Antonio. The product was the focus of a 2021 Amazon documentary entitled "The Road to Zero Waste," which focused on Rubicon's work in Santa Fe, New Mexico.

“Our partnership with the City of Houston is off to a fantastic start, as we were able to install our products and train the entire Solid Waste Department’s workforce in only 73 days, an incredibly fast turn for such an undertaking,” Michael Allegretti, Chief Strategy Officer at Rubicon, said in a statement. "This partnership comes at a critically important time, as Houston and other cities across the nation look to maintain, and ultimately expand, service levels.”

In August 2021, the City of Houston also launched HTX Collects, a mobile app aimed at helping residents keep track of weekly services, updates, and waste collection days. At that time, the city estimated that it collected curbside service for over 395,000 residential homes within the city limits.

Bill.com's new Houston office is in West Houston and has space for 125 employees. Natalie Harms/InnovationMap

Silicon Valley fintech company officially opens its second headquarters in Houston

New to town

Only 18 months ago, a growing Palo Alto, Calif.-based fintech company was weighing its options for its first out-of-state expansion. And yesterday, Bill.com opened its second headquarters in Houston.

"When we set out to find a second headquarters in Houston, we had three criteria we were looking for," says René Lacerte, CEO of Bill.com.

Those three things were a good education foundation, vibrant business economy, and diversity, which "Houston has that in spades," Lacerte adds.

Lacerte, who is based in Palo Alto, celebrated the opening of the office on September 18 at a reception that included Mayor Sylvester Turner, Susan Davenport, president of the Greater Houston Partnership, and others who were involved in the process of bring Bill.com to Houston. Mayor Turner even celebrated the office opening by proclaiming September 18th as Bill.com Day in Houston.

"We've worked very hard the past few years to strengthen Houston's digital tech innovation ecosystem," says Davenport. "Today, I think solidifies the momentum we've been building."

The new office is located on the west side of town at the CityWest office development. Bill.com has 25,000 square feet and can have up to 125 employees. Lacerte says he wants to have every department represented in the Houston office, from sales to programming.

"There are two reasons I founded the company," Lacerte says to the crowd. "One was to make a difference in the lives of our customers, and the other was to make a difference in the lives of our employees. Having this second office is a huge opportunity in the lives of people in our communities."

Lacerte founded Bill.com in 2006, and the company has raised over $259 million in funding. The software-as-a-service company has over 3 million members, according to Bill.com, and processes $60 billion in payments annually.

Nine companies committed to Houston Exponential's first round of funding. Shobeir Ansar/Getty Images

Houston Exponential's ambitious venture fund closes first round with $25 million

Money moves

Houston Exponential closed the first round of funding for its fund of funds with $25 million in commitments from nine companies. The money will go to non-Houston venture capitalists to invest back into Houston startups.

HX Venture Fund's first-round partners include: Insperity, Chevron, Shell, Quanta Services, Westlake Chemical, The Plank Companies, PROS, HEB, and Camden.

Kingwood-based Insperity was the anchor investor, committing to $5 million last October, according to the release. The company also provided an undisclosed amount of resources support the operations of the fund as it launched.

"This is another transformational moment for Houston," says Gina Luna, chair of Houston Exponential, in the release. "From day one at Houston Exponential, we have been executing a plan to accelerate the growth of the ecosystem, including connecting Houston startups with the capital they need to grow their businesses. This is a significant, tangible milestone. Houston's leading companies have stepped up in a big way to make this happen, and this is a clear signal that Houston is committed to success."

Houston-based venture capital firm Mercury Fund's co-founder and managing director, Blair Garrou, chaired the fund's advisory board. He's also a board member for HX.

The fund of funds won't donate to Houston organizations directly, Garrou says in a statement. The fund's organizers had a different approach to growing funds in Houston's startup space.

"The HX Venture Fund will invest in venture capital funds outside of Houston – generating investment and interest in the region while increasing the investable capital available to Houston-based startups," says Garrou. "The HX Venture Fund is built upon a proven model that provides multiple benefits to its investors."

The benefitting venture capital funds haven't yet been named.

HX modeled the fund after the Renaissance Venture Capital Fund in Michigan, from which 10 outside venture capital firms benefitted —Mercury Fund was one of the 10. It was Garrou who led the movement to get Renaissance Fund's CEO and Fund Manager, Chris Rizik, as a part of the HX Venture Fund from the start as a member of the investment committee.

The Michigan fund launched 9 years ago and exceeded all expectations. For ever dollar Rizik and his team invested, $17 came back into the Michigan area, he told the Houston Business Journal. He says Houston has the same potential.

"I've spoken to many cities about Renaissance's fund of funds model and the impact it has had on Michigan," says Rizik in the release. "Houston has leaned into this model and it is impressive what they have been able to accomplish in a short time. It is a testament to the commitment of Houston's business and tech leaders to growing the ecosystem. It's really exciting to see."

In October 2017, Houston Exponential was launched by Mayor Sylvester Turner's Innovation and Technology Task Force in collaboration with the Greater Houston Partnership's Innovation Round Table and the Houston Technology Center. HX's launch included three main goals, according to the release: "make Houston a top 10 innovation ecosystem, generate $2 billion in venture capital annually and create 10,000 new technology jobs a year by 2022."

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Houston company secures $100M for 'world’s largest geothermal energy plant'

loan guaranteed

Houston-based geothermal energy company Fervo Energy has secured a $100 million bridge loan for the first phase of its ongoing project in Utah.

The loan came from an affiliate of Irvington, New York-based X-Caliber Rural Capital. Proceeds will support construction of Fervo’s Cape Station project, which is being touted as the world’s largest geothermal energy plant.

The first phase of Cape Station, which is on track to generate 90 megawatts of renewable energy, is expected to be completed in June 2026. Ultimately, the plant is supposed to supply 400 megawatts of clean energy by 2028 for customers in California.

“Helping this significant project advance and grow in rural America is a true testament to how investing in communities and businesses not only has local influence, but can have a global, long-lasting impact by promoting sustainability and stimulating rural economies,” Jordan Blanchard, co-founder of X-Caliber Rural Capital, says in a news release.

X-Caliber Rural Capital is an affiliate of commercial real estate financing company X-Caliber Capital Holdings.

Fervo says its drilling operations Utah’s Cape Station show a 70 percent reduction in drilling times, paving the way for advancement of its geothermal energy system.

Tim Latimer, co-founder and CEO of Fervo, says his company’s drilling advancements, purchase deals, transmission rights, permit approvals, and equipment acquisitions make Fervo “an ideal candidate” for debt financing. In May, Latimer joined the Houston Innovators Podcast to discuss the company's growth and latest project.

With a new office in downtown Houston, Fervo recently signed up one of the country’s largest utilities as a new customer and expanded its collaboration with Google.

To date, Fervo has raised $531 million in venture capital funding, per Crunchbase data.

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This article originally ran on EnergyCapital.

Houston research finds race, gender ineffective predictors of employee productivity

houston voices

The Latin phrase scientia potentia est translates to “knowledge is power.”

In the world of business, there’s a school of thought that takes “knowledge is power” to an extreme. It’s called statistical discrimination theory. This framework suggests that companies should use all available information to make decisions and maximize profits, including the group characteristics of potential hires — such as race and gender — that correlate with (but do not cause) productivity.

Statistical discrimination theory suggests that if there's a choice between equally qualified candidates — let's say, a man and a woman — the hiring manager should use gender-based statistics to the company's benefit. If there's data showing that male employees typically have larger networks and more access to professional development opportunities, the hiring manager should select the male candidate, believing such information points to a more productive employee.

Recent research suggests otherwise.

A peer-reviewed study out of Rice Business and Michigan Ross undercuts the premise of statistical discrimination theory. According to researchers Diana Jue-Rajasingh (Rice Business), Felipe A. Csaszar (Michigan) and Michael Jensen (Michigan), hiring outcomes actually improve when decision-makers ignore statistics that correlate employee productivity with characteristics like race and gender.

Here's Why “Less is More”

Statistical discrimination theory assumes a correlation between individual productivity and group characteristics (e.g., race and gender). But Jue-Rajasingh and her colleagues highlight three factors that undercut that assumption:

  • Environmental uncertainty
  • Biased interpretations of productivity
  • Decision-maker inconsistency

This third factor plays the biggest role in the researchers' model. “For statistical discrimination theory to work,” Jue-Rajasingh says, “it must assume that managers are infallible and decision-making conditions are optimal.”

Indeed, when accounting for uncertainty, inconsistency and interpretive bias, the researchers found that using information about group characteristics actually reduces the accuracy of job performance predictions.

That’s because the more information you include in the decision-making process, the more complex that process becomes. Complex processes make it more difficult to navigate uncertain environments and create more space for managers to make mistakes. It seems counterintuitive, but when firms use less information and keep their processes simple, they are more accurate in predicting the productivity of their hires.

The less-is-more strategy is known as a “heuristic.” Heuristics are simple, efficient rules or mental shortcuts that help decision-makers navigate complex environments and make judgments more quickly and with less information. In the context of this study, published by Organization Science, the heuristic approach suggests that by focusing on fewer, more relevant cues, managers can make better hiring decisions.

Two Types of Information "Cues"

The “less is more” heuristic works better than statistical discrimination theory largely because decision makers are inconsistent in how they weight the available information. To factor for inconsistency, Jue-Rajasingh and her colleagues created a model that reflects the “noise” of external factors, such as a decision maker’s mood or the ambiguity of certain information.

The model breaks the decision-making process into two main components: the environment and the decision maker.

In the environment component, there are two types of information, or “cues,” about job candidates. First, there’s the unobservable, causal cue (e.g., programming ability), which directly relates to job performance. Second, there's the observable, discriminatory cue (e.g., race or gender), which doesn't affect how well someone can do the job but, because of how society has historically worked, might statistically seem connected to job skills.

Even if the decision maker knows they shouldn't rely too much on information like race or gender, they might still use it to predict productivity. But job descriptions change, contexts are unstable, and people don’t consistently consider all variables. Between the inconsistency of decision-makers and the environmental noise created by discriminatory cues, it’s ultimately counterproductive to consider this information.

The Bottom Line

Jue-Rajasingh and her colleagues find that avoiding gender- and race-based statistics improves the accuracy of job performance predictions. The fewer discriminatory cues decision-makers rely on, the less likely their process will lead to errors.

That said: With the advent of AI, it could become easier to justify statistical discrimination theory. The element of human inconsistency would be removed from the equation. But because AI is often rooted in biased data, its use in hiring must be carefully examined to prevent worsening inequity.

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This article originally ran on Rice Business Wisdom based on research by Rice University's Diana Jue-Rajasingh, Felipe A. Csaszar (Michigan) and Michael Jensen (Michigan). For more, see Csaszar, et al. “When Less is More: How Statistical Discrimination Can Decrease Predictive Accuracy.”

New downtown Houston hub opens to support energy transition innovators

now open

Three Houston energy innovators have cut the ribbon on a new space for energy transition innovation.

The Energy Tech Nexus, located in the historic Niels Esperson Building at the corner of Travis and Rusk Avenue, opened on September 10, which was proclaimed Energy Tech Nexus Day by the city.

Jason Ethier and Juliana Garaizar, formerly in leadership roles at Greentown Labs, teamed up with Nada Ahmed, previously headed innovation and transformation at Aker Solutions, launched ETN as a community for energy transition startups. The new hub plans to host incubation programs, provide mentorship, and open doors to funding and strategic partnerships for its members.

"We are creating more than a space for innovation," Garaizar, who serves as CEO of ETN, says in a news release. "We are crafting a community where pioneers in technology and energy converge to challenge the status quo and accelerate the shift to sustainable energy solutions."

The hub describes its goal of tackling the "trilemma" of energy security, sustainability, and affordability while also contributing to the mission of setting up Houston as the global center for energy transition. To accomplish that mission, ETN will help facilitate rapid deployment of cutting-edge energy technologies.

'The future of energy is not just being written here in Houston; it's being rewritten in more sustainable, efficient, and innovative ways," adds Garaizar. "Houston provides the perfect backdrop for this transformation, offering a rich history in energy and a forward-looking approach to its challenges and opportunities."

"We believe that a broad spectrum of perspectives is crucial in solving global energy challenges. It's about bringing everyone to the table — startups, industry leaders, and investors from all backgrounds," she continues.

Ethier, who co-hosts the Energy Tech Startups Podcast with Ahmed, says he hopes that ETN acts as a meeting place for energy transition innovators.

"By providing the right tools, access, and expertise, we are enabling these companies to leap from ideation to implementation at an unprecedented pace;" Ethier explains. "The interaction between startups and established companies within Energy Tech Nexus creates a unique synergy, fostering innovations that might otherwise take years to mature in isolation."

Payal Patel, an angel investor who has held leadership roles at Station Houston, Plug and Play Ventures, and Softeq, also contributed to launching ETN, which is collaborating with George Liu, who has over 15 years of investment banking experience across energy, cleantech and hardtech with more than $20 billion in M&A projects across his career.

In May, ETN teamed up with Impact Hub Houston to establish the Equitable Energy Transition Alliance and Lab to accelerate startup pilots for underserved communities. The initiative announced that it's won the 2024 U.S. Small Business Administration Growth Accelerator Fund Competition, or GAFC, Stage One award.

ETN celebrated its opening during the inaugural Houston Energy and Climate Week.

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This article originally ran on EnergyCapital.