"Decarbonization is a molecule game." - Paul Sheng, Fathom Capital

"The energy transition is like a volleyball game between climate and energy." - David Baldwin, Keynote Speaker

These quotes encapsulated the theme at this year's Energy Tech Venture Forum hosted by the Rice Alliance. The event brought together innovators, investors, and thought leaders from across the energy sector, all focused on addressing the intricate balance between meeting today’s energy needs and driving forward the necessary decarbonization efforts. The forum provided deep insights into how cutting-edge innovations, particularly in Green Molecules™, are tackling the most pressing challenges in the energy transition. From methane detection to hydrogen technologies and industrial gas management, the discussions reflected the complex yet promising future of sustainable energy.

Panel Highlights: ECV’s Stefano Galiasso on Hydrogen’s Role in Shaping the Future of Energy

Energy Capital Venture’s Vice President, Stefano Galiasso, participated in a panel discussion on harnessing hydrogen technologies to accelerate the energy transition. Representing ECV's Green Molecule™ thesis, the panel (from left to right: Deanna Zhang of V1 Climate Solutions, Trevor Best of Syzygy Plasmonics, Angela Bruneau of Chevron, Calum Ferguson of AP Ventures, Stefano Galiasso of ECV and Seema Santhakumar of Baker Hughes) offered a shared vision of how hydrogen plays a pivotal role in decarbonization efforts. Here are the key takeaways from his discussion:

• In general, there is no green premium for clean hydrogen. Customers are not ready to sign long term offtake contracts for high volumes of low carbon hydrogen, and as such startups and innovators should look into low-volume / high-value applications in specialty chemicals, cosmetics, or other industries where hydrogen is used as a molecule (rather than just its energy content). Over time and as costs go down, more and more use cases can be enabled until hydrogen will be potentially as ubiquitous as natural gas is today. The lack of long-term offtakes is, in the short-term, affecting the ability of startups to access project financing vehicles for their initial deployments - partnerships with energy incumbents, which can leverage decades of expertise have large balance sheets to fund higher risk projects, is key in the early stages of the clean hydrogen economy.
• Location is a major factor in the cost competitiveness of clean hydrogen. Hydrogen is only $1.25-1.50 a kilogram in the Gulf Coast, where low cost, abundant natural gas and an established hydrogen infrastructure make it easy to procure, transport and trade hydrogen (99% of hydrogen is made from natural gas today). As Trevor rightly pointed out, that cost shots up to more than $4/kg in Europe (where natural gas is primarily imported from abroad via pipeline or via LNG) and $4-6/kg in Japan and south Korea (also big importers). For a hydrogen technology startup or a clean hydrogen producer, finding markets that can absorb the price of new technologies early on is critical, and location is only one of the levers to play with to nudge a project into FID.
• Reliability and Availability are key: for startups with a new technology that is, say, 30% more energy efficient than incumbents, that performance metric is very important but is not the only factor in a customer mind. Customers are willing to pay more for dirtier, less efficient hydrogen production technologies that can show reliability, ability to manufacture machines at high volumes, ability to offer a standard warranty, and so on (as both Trevor and Calum also highlighted during the panel). Companies are not only competing on efficiency as a performance metric, and there are different elements of “cost” that go beyond the levelized cost of hydrogen - trust can have a steep price. Intense testing, field trials, demonstrations and stress cycles are necessary for startups to level the playing field with incumbents as they look to find willing buyers of their machines.

In summary, Hydrogen, one of ECV’s Green Molecules™ pillars, is a key leg of the decarbonization stool, but these are still the early days and innovators and incumbents alike are working hard to pave the way for its widespread adoption as a key building block of both the chemical and energy industries.

Startups on the Rise

As always, the forum was filled with brilliant entrepreneurs showcasing their groundbreaking solutions. This year, we witnessed a range of Green Molecules startups introducing transformative innovations, from energy production to carbon capture and industrial processes. Here are a few standout companies that left a lasting impression:

Osmoses: Showcasing Gas Separation Innovation

At the forum, Osmoses, one of ECV’s portfolio companies, stole the show. Bob Bory, Osmoses Chief Commercial Officer, showcased their groundbreaking technology for gas separation using advanced membranes. Their pitch highlighted how they are revolutionizing industrial gas processes, offering a more efficient and sustainable way to separate gases like hydrogen and helium. Osmoses was recently announced as a finalist for NECEC’s Emerging Company of Year award.

KC8 Capture: Scaling Carbon Capture for Large Industries

KC8 is revolutionizing CO2 capture with its UNO MK 3 solvent absorption process, developed to capture over 95% of CO2 emissions from industries like cement plants and power stations. Their technology boasts a 50% reduction in cost and 15% lower energy usage compared to conventional amine-based systems. KC8’s process also produces valuable by-products like fertilizers while minimizing environmental impact, making it ideal for both retrofitting existing plants and new builds in high-oxygen flue gas environments, such as Natural Gas Combined Cycle (NGCC) generators.

Trellisense: Advanced Optical Sensors for Continuous Emissions Monitoring

Ben Silton showcased Trellisense's ability to provide advanced optical sensors for continuous methane emissions detection, localization, and quantification across various industries, including agriculture, landfills, oil and gas, and utilities. Their technology functions like "methane radars" offering real-time, verifiable data with minimal operational disruption. Trellisense's solutions are designed to be cost-effective, providing continuous daily monitoring to detect leaks, comply with methane regulations, and capture value from emissions reductions.

Teren: Geospatial Analytics for Environmental Risk Management

Teren provides advanced geospatial analytics and environmental twin platforms that deliver accurate digital replicas of changing environmental conditions. Their solutions combine remotely-sensed data, real-time climate intelligence, and ecosystem insights to help industries like finance, renewable development, and pipeline management proactively manage environmental risks. Teren's technologies support applications in post-wildfire reclamation, landslide detection, hydrology, and more, offering data-driven insights for better resilience planning and environmental management.

Mitico: Accessible Carbon Capture Solutions for Industrial Emissions

Mitico offers accessible carbon capture technology designed for industrial emissions reduction. Their solutions feature affordable CAPEX and OPEX, easy implementation, and environmentally friendly materials that avoid hazardous byproducts. Mitico's platform captures CO₂ using non-toxic granulated metal carbonates and tracks emissions through blockchain technology, ensuring transparent and verifiable monitoring from capture to sequestration. Their approach is adaptable to various industrial needs, aiming to simplify the path to carbon neutrality.

The Energy Tech Venture Forum hosted by the Rice Alliance provided a platform for cutting-edge energy innovation, featuring startups like Osmoses, KC8 Capture, Trellisense, Mitico and Teren, tackling key challenges in areas like gas separation, biofuels, and carbon capture. Energy Capital Ventures was proud to participate and remains committed to supporting innovators advancing the development of Green Molecules™, driving the transition toward a more sustainable energy future.

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