major moves

Texas oilfield equipment provider opens Houston office, names new COO amid energy transition growth

SCS Technologies opened a new office in the Ion. Photo courtesy of the Ion

Big changes are happening at a Texas oilfield equipment provider. In the span of a few weeks, the company named a new C-level executive and announced a new strategic office.

SCS Technologies, based in Big Spring, Texas, has opened a new office in the Ion, a 266,000-square-foot innovation hub in Midtown, to focus on strategy and innovation. SCS provides CO2 capture measurement and methane vapor recovery equipment for the energy, industrial, and environmental sectors.

“Embracing Houston's pivotal role in the energy transition, the Ion has swiftly become the epicenter of innovative collaborations. For SCS Technologies, this marks an exciting opportunity to align our capabilities and technology with a diverse consortium of organizations working toward ambitious carbon-neutral goals,” says Cody Johnson, CEO of SCS Technologies, in a news release. “Looking ahead, we are invigorated by the boundless possibilities at the Ion, envisioning groundbreaking solutions and technologies that will unfold there.”

On July 20, SCS announced René Vandersalm as COO. Johnson says in a July 20 statement that the appointment comes at a time when "energy and industrial sectors are undergoing a considerable transformation of their processes and infrastructure to align with carbon-neutral goals."

Vandersalm previously worked for over 20 years at Thermon Manufacturing leading the company's heating solutions. In his new role, he says he will work within SCS "to design and produce the innovative compression and measurement systems our customers need to achieve emissions goals."

“It’s an exciting time as energy and industrial companies strive towards sustainable operations, all while delivering the energy and products that customers worldwide rely on,” Vandersalm continues in the release. “I am both excited and honored to collaborate with the talented and motivated SCS Technologies team as we make a significant impact in this industry-wide transition.”

SCS is partnered with New Orleans-based Black Bay Energy Capital, an energy-focused private equity fund.

The Ion has seen a flurry of activity when it comes to energy tenants. In March, United Kingdom-based Carbon Clean, opened its US headquarters in the Ion as it expands nationally. In April, the Ion named several other new tenants, which included industrial software company Cognite, robotics tech provider Nauticus, and more. These companies join Chevron, which officially opened its new outpost in 2022 after being announced as a founding partner in 2020. ExxonMobil is also a founding partner.

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A View From HETI

Here's 1PoinFive's newest customer on its Texas CCUS project. Photo via 1pointfive.com

Occidental Petroleum’s Houston-based carbon capture, utilization and, sequestration (CCUS) subsidiary, 1PointFive, has inked a six-year deal to sell 500,000 metric tons of carbon dioxide removal credits to software giant Microsoft.

In a news release, 1Point5 says this agreement represents the largest-ever single purchase of carbon credits enabled by direct air capture (DAC). DAC technology pulls CO2 from the air at any location, not just where carbon dioxide is emitted.

Under the agreement, the carbon dioxide that underlies the credits will be stored in a below-the-surface saline aquifer and won’t be used to produce oil or gas.

“A commitment of this magnitude further demonstrates how one of the world’s largest corporations is integrating scalable [DAC] into its net-zero strategy,” says Michael Avery, president and general manager of 1PointFive. “Energy demand across the technology industry is increasing, and we believe [DAC] is uniquely suited to remove residual emissions and further climate goals.”

Brian Marrs, senior director for carbon removal and energy at Microsoft, says DAC plays a key role in Microsoft’s effort to become carbon-negative by 2030.

The carbon dioxide will be stored at 1PointFive’s first industrial-scale DAC plant, being built near Odessa. The $1.3 billion Stratos project, which 1Point5 is developing through a joint venture with investment manager BlackRock, is designed to capture up to 500,000 metric tons of CO2 per year.

The facility is scheduled to open in mid-2025.

Aside from Microsoft, organizations that have agreed to buy carbon removal credits from 1Point5 include Amazon, Airbus, All Nippon Airways, the Houston Astros, the Houston Texans, and TD Bank.

Occidental says 1PointFive plans to set up more than 100 DAC facilities worldwide by 2035.

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