After selling his San Francisco-based solar power company to Houston-based NRG Energy Inc. (NYSE: NRG) in 2011, SkyH2O CEO and serial entrepreneur Alexander von Welczeck turned his attention to what he saw as the biggest need in the climate technology space: water.
“There's no shortage in energy. It's only a question of who can do it faster, who can do it cheaper,” von Welczeck said in an interview with Houston Inno. “Water, there’s a huge shortage. Depending on what study we read, we currently have about 3.2 billion people living in water stress, and that number is expected to increase.”
That need led von Welczeck to identify atmospheric water generation as a potential solution and a potential business opportunity. He founded SkyH2O in California in 2016, and seven years later the company is now preparing to build its first-ever full-scale atmospheric water generation plants in the Houston area. Businesses and customers will be able to purchase water beginning in 2025 when the plants are completed.
The plants, called Stations, will be in Dickinson and Angleton. Von Welczeck said the Dickinson location is rated to generate over 30,000 gallons of drinkable water a day, which would then be bottled and sold on location for customers to pick up. Each Station also features additional amenities such as electric vehicle charging and delivery services for its water. Von Welczeck said SkyH2O would also explore partnerships with retailers for its water to be sold in stores for purchase.
“This is all about being the [best] in sustainability,” von Welczeck said. “We’ll have sustainable coffee, a juice bar, a farmer’s market, making it kind of a space that people will want to go not just to get water.”
The Stations have another purpose for the company’s business: They also serve as investment vehicles. SkyH2O is raising a $20 million Series A round, of which the company has raised $6.5 million, according to von Welczeck. However, investors can also fund the construction of an individual Station, which is valued at $25 million, according to von Welczeck. SkyH2O plans to have 100 Stations operating in the United States by 2027, with six to eight planned for the Houston area.
“There’s investors who are often invested in smaller amounts, but sometimes there’s large strategic investments, and we can accommodate anybody,” von Welczeck said.
Houston’s much-maligned humidity is actually a blessing for SkyH2O, according to von Welczeck. Since atmospheric water generation relies on drawing out water trapped in the air, locations that have an average of 70%-80% humidity, such as Houston, can result in water generation of 3,000 gallons per day. Von Welczeck said the company had received interest from investors based in locations with similar humidity, such as Saudi Arabia.
The humidity wasn’t the only draw for SkyH2O. The company also joined the Houston branch of climate tech incubator Greentown Labs, where it currently has an office location.
“I think it might be the best of all these different types of incubators,” von Welczeck said. “If you go across the country, most incubating-type facilities are underfunded; they don’t really have true industrial players. In Greentown Labs, you have Chevron, Shell, Aramco all there.”
Somerville, Massachusetts-based Greentown Labs recently added to its leadership team in August, naming former Department of Energy Chief of Staff Kevin Knobloch as its new permanent CEO. The Houston location also hired former corporate venture capital investor Timmeko Moore Love to fill the newly created position of general manager.
