The case for smarter CUI inspections in the energy sector

Guest Column

A new generation of technology is making it faster, safer, and more cost-effective to identify CUI. Courtesy photo

Corrosion under insulation (CUI) accounts for roughly 60% of pipeline leaks in the U.S. oil and gas sector. Yet many operators still rely on outdated inspection methods that are slow, risky, and economically unsustainable.

This year, widespread budget cuts and layoffs across the sector are forcing refineries to do more with less. Efficiency is no longer a goal; it’s a mandate. The challenge: how to maintain safety and reliability without overextending resources?

Fortunately, a new generation of technologies is gaining traction in the oil and gas industry, offering operators faster, safer, and more cost-effective ways to identify and mitigate CUI.

Hidden cost of corrosion

Corrosion is a pervasive threat, with CUI posing the greatest risk to refinery operations. Insulation conceals damage until it becomes severe, making detection difficult and ultimately leading to failure. NACE International estimates the annual cost of corrosion in the U.S. at $276 billion.

Compounding the issue is aging infrastructure: roughly half of the nation’s 2.6 million miles of pipeline are over 50 years old. Aging infrastructure increases the urgency and the cost of inspections.

So, the question is: Are we at a breaking point or an inflection point? The answer depends largely on how quickly the industry can move beyond inspection methods that no longer match today's operational or economic realities.

Legacy methods such as insulation stripping, scaffolding, and manual NDT are slow, hazardous, and offer incomplete coverage. With maintenance budgets tightening, these methods are no longer viable.

Why traditional inspection falls short

Without question, what worked 50 years ago no longer works today. Traditional inspection methods are slow, siloed, and dangerously incomplete.

Insulation removal:

Disruptive and expensive.
Labor-intensive and time-consuming, with a high risk of process upsets and insulation damage.
Limited coverage. Often targets a small percentage of piping, leaving large areas unchecked.
Health risks: Exposes workers to hazardous materials such as asbestos or fiberglass.

Rope access and scaffolding:

Safety hazards. Falls from height remain a leading cause of injury.
Restricted time and access. Weather, fatigue, and complex layouts limit coverage and effectiveness.
High coordination costs. Multiple contractors, complex scheduling, and oversight, which require continuous monitoring, documentation, and compliance assurance across vendors and protocols drive up costs.

Spot checks:

Low detection probability. Random sampling often fails to detect localized corrosion.
Data gaps. Paper records and inconsistent methods hinder lifecycle asset planning.
Reactive, not proactive: Problems are often discovered late after damage has already occurred.

A smarter way forward

While traditional NDT methods for CUI like Pulsed Eddy Current (PEC) and Real-Time Radiography (RTR) remain valuable, the addition of robotic systems, sensors, and AI are transforming CUI inspection.

Robotic systems, sensors, and AI are reshaping how CUI inspections are conducted, reducing reliance on manual labor and enabling broader, data-rich asset visibility for better planning and decision-making.

ARIX Technologies, for example, introduced pipe-climbing robotic systems capable of full-coverage inspections of insulated pipes without the need for insulation removal. Venus, ARIX’s pipe-climbing robot, delivers full 360° CUI data across both vertical and horizontal pipe circuits — without magnets, scaffolding, or insulation removal. It captures high-resolution visuals and Pulsed Eddy Current (PEC) data simultaneously, allowing operators to review inspection video and analyze corrosion insights in one integrated workflow. This streamlines data collection, speeds up analysis, and keeps personnel out of hazardous zones — making inspections faster, safer, and far more actionable.

These integrated technology platforms are driving measurable gains:

Autonomous grid scanning: Delivers structured, repeatable coverage across pipe surfaces for greater inspection consistency.
Integrated inspection portal: Combines PEC, RTR, and video into a unified 3D visualization, streamlining analysis across inspection teams.
Actionable insights: Enables more confident planning and risk forecasting through digital, shareable data—not siloed or static.

Real-world results

Petromax Refining adopted ARIX’s robotic inspection systems to modernize its CUI inspections, and its results were substantial and measurable:

Inspection time dropped from nine months to 39 days.
Costs were cut by 63% compared to traditional methods.
Scaffolding was minimized 99%, reducing hazardous risks and labor demands.
Data accuracy improved, supporting more innovative maintenance planning.

Why the time is now

Energy operators face mounting pressure from all sides: aging infrastructure, constrained budgets, rising safety risks, and growing ESG expectations.

In the U.S., downstream operators are increasingly piloting drone and crawler solutions to automate inspection rounds in refineries, tank farms, and pipelines. Over 92% of oil and gas companies report that they are investing in AI or robotic technologies or have plans to invest soon to modernize operations.

The tools are here. The data is here. Smarter inspection is no longer aspirational — it’s operational. The case has been made. Petromax and others are showing what’s possible. Smarter inspection is no longer a leap but a step forward.

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Tyler Flanagan is director of service & operations at Houston-based ARIX Technologies.

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Pipeline robotics: How this Houston startup is revolutionizing corrosion monitoring ›

Dianna Liu of ARIX Technologies joins the Houston Innovators Podcast to share her entrepreneurial journey — and why Houston was the right place to start her company. Photo courtesy of ARIX

Pipeline robotics: How this Houston startup is revolutionizing corrosion monitoring

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After working for years in the downstream energy industry where safety and efficiency were top priorities, Dianna Liu thought there was a way technology could make a huge difference.

Despite loving her company and her job, she took a leap of faith to start a robotics company to create technology to more safely and efficiently monitor corrosion in pipelines. ARIX Technologies has developed software and hardware solutions for its customers with pipelines in downstream and beyond.

"Overall, this industry is an industry that really harps on doing things safely, doing things well, and having all the data to make really informed decisions," Liu says on the Houston Innovators Podcast. "Because these are huge companies with huge problems, it takes a lot of time to set up the right systems, adopt new things, and make changes."

But it's an industry Liu knows well, so she founded ARIX in 2017 and created a team of engineers to create the first iteration of the ARIX robot, which was at first made of wood, she says. Now, years later, the much-evolved robot moves up and down the exterior of the pipe, using its technology to scan the interior to evaluate corrosion. The technology works with ARIX's software to provide key data analysis.

With customers across the country and the world, ARIX has a strong foothold in downstream, but has garnered interest from other verticals as well — even working with NASA at one point, Liu says.

"Staying in downstream would be nice and safe for us, but we've been very lucky and have had customers in midstream, upstream, and even outside oil and gas and chemicals," she says. "We've gotten inquiries ranging from cosmetics plants to water or wastewater — essentially anything that's round or a pipe that can corrode, we can help with."

Liu, who goes into detail on the show about how critical establishing a positive company culture has been for ARIX, shares a bit about what it's been like growing her company in Houston.

"Houston being the Energy Capital of the World opens a lot of doors to both customers, investors, and employees in a way that's unparalleled. It is a great place to build a company because of that — you have all this expertise in this city and the surrounding areas that's hard to find elsewhere," she says. "Being such a hub — not only for energy, but in terms transportation — means it's easy for us to get to our customers from around the world."

———

This article originally ran on InnovationMap.

Nearly 20 Houston startups and innovators were named finalists for the 2024 Houston Innovation Awards this week. Photo via Getty Images

Houston energy transition innovators named finalists for annual awards program

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The Houston Innovation Awards have named its honorees for its 2024 awards event, and several clean energy innovators have made the cut.

The finalists, which were named on EnergyCapital's sister site InnovationMap this week, were decided by this year's judges after they reviewed over 130 applications. More 50 finalists will be recognized in particular for their achievements across 13 categories, which includes the 2024 Trailblazer Legacy Awards that were announced earlier this month.

All of the honorees will be recognized at the event on November 14 and the winners will be named. Registration is open online.

Representing the energy industry, the startup finalists include:

Amperon, an AI platform powering the smart grid of the future, was named a finalist in the Energy Transition Business category.
ARIXTechnologies, an integrated robotics and data analytics company that delivers inspection services through its robotics platforms, was named a finalist in the Energy Transition Business and the AI/Data Science Business categories.
CLS Wind, a self-erection wind turbine tower system provider for the wind energy industry, was named a finalist in the Minority-Founded Business category.
Corrolytics, a technology startup founded to solve microbiologically influenced corrosion problems for industrial assets, was named a finalist in the Minority-Founded Business and People's Choice: Startup of the Year categories.
Elementium Materials, a battery technology with liquid electrolyte solutions, was named a finalist in the Energy Transition Business category.
Enovate Ai, a provider of business and operational process optimization for decarbonization and energy independence, was named a finalist in the AI/Data Science Business category.
FluxWorks, developer and manufacturer of magnetic gears and magnetic gear-integrated motors, was named a finalist in the Deep Tech Business category.
Gold H2, a startup that's transforming depleted oil fields into hydrogen-producing assets utilizing existing infrastructure, was named a finalist in the Minority-Founded Business and the Deep Tech Business categories.
Hertha Metals, developer of a technology that cost-effectively produces steel with fewer carbon emissions, was named a finalist in the Deep Tech Business category.
InnoVentRenewables, a startup with proprietary continuous pyrolysis technology that converts waste tires, plastics, and biomass into valuable fuels and chemicals, was named a finalist in the Energy Transition Business and the People's Choice: Startup of the Year categories.
NanoTech Materials, a chemical manufacturer that integrates novel heat-control technology with thermal insulation, fireproofing, and cool roof coatings to drastically improve efficiency and safety, was named a finalist in the Scaleup of the Year category.
SageGeosystems, an energy company focused on developing and deploying advanced geothermal technologies to provide reliable power and sustainable energy storage solutions regardless of geography, was named a finalist in the Energy Transition Business category.
Square Robot, an advanced robotics company serving the energy industry and beyond by providing submersible robots for storage tank inspections, was named a finalist in the Scaleup of the Year category.
Syzygy Plasmonics, a company that's decarbonizing chemical production with a light-powered reactor platform that electrifies the production of hydrogen, syngas, and fuel with reliable, low-cost solutions, was named a finalist in the Scaleup of the Year category.
TierraClimate, a software provider that helps grid-scale batteries reduce carbon emissions, was named a finalist in the Energy Transition Business category.
Voyager Portal, a software platform that helps commodity traders and manufacturers in the O&G, chemicals, agriculture, mining, and project cargo sectors optimize the voyage management lifecycle, was named a finalist in the AI/Data Science Business category.

In addition to the startup finalists, two energy transition-focused organizations were recognized in the Community Champion Organization category, honoring a corporation, nonprofit, university, or other organization that plays a major role in the Houston innovation community. The two finalists in that category are:

Energy Tech Nexus, a new global energy and carbon tech hub focusing on hard tech solutions that provides mentor, accelerator and educational programs for entrepreneurs and underserved communities.
Greentown Houston, a climatetech incubator and convener for the energy transition community that provides community engagement and programming in partnership with corporations and other organizations.

Lastly, a few energy transition innovators were honored in the individual categories, including Carlos Estrada, growth partner at First Bight Ventures and head of venture acceleration at BioWell; Juliana Garaizar, founding partner of Energy Tech Nexus; and Neal Dikeman, partner at Energy Transition Ventures.

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Solid-state generator company secures $9M in financing, names CTO

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ATS Energy has secured a $9 million investment to help commercialize its solid-state generator technology, a representative from the company tells Energy Capital.

The Colorado-based company is a member of Houston's Greentown Labs climatech community and was named the second most-promising startup in the Innovations for Traditional Energy, Electricity, & the Grid track during CERA Week's Energy Venture Day and Pitch Competition in March.

ATS's technology converts industrial waste heat into electricity via its proprietary thermoelectric cartridges, according to a news release. The cartridges convert the otherwise wasted thermal energy directly into usable electricity with no turbine, no moving parts and no emissions.

"We have spent years building a proven track record of breakthrough technology," Doug Hudson, CEO of ATS Energy, said in the release. "What has developed over the past year is that markets are moving toward ATS Energy, said in the release. We've moved well beyond early interest to commercial commitments, active proposals and a pipeline that continues to expand across multiple industrial sectors. That puts us in a tremendous position to meet the moment in delivering energy to industry. This investment responds to real commercial opportunity, and it positions ATS Energy to scale production, meet customer demand faster, and drive commercial deployments."

According to the release, ATS plans to complete and deploy its first commercial generator using the thermoelectric cartridges by mid-2027. The company shared that it plans to begin revenue-generating operations next year, as well.

ATS has also named Edward Ganja as its new CTO. Ganja previously served as a technology advisor for ATS and spent more than 30 years at Shell, most recently as vice president of catalyst and analytical technology in Houston, according to LinkedIn.

"Having worked closely with the team as a Technology Adviser, I am thrilled to step into the Chief Technology Officer role to lead our technology strategy and advanced materials scale-up," Ganja shared in a LinkedIn post. "ATS is tackling crucial energy challenges, and I look forward to working with our talented team, partners, and industry colleagues to accelerate our commercial development and technological footprint."

A representative from the company shares that ATS has three employees in Texas, including two in Houston. The company is targeting industrial facilities, including Gulf Coast refineries and petrochemical plants, for its production model, which will leverage established manufacturing capabilities to help quickly scale its commercial pipeline.

"We are scaling manufacturing with the discipline required for commercial-grade industrial deployment, moving beyond proof-of-concept to deliver mission-critical equipment," Terry Hill, COO of ATS, added in the release. "We've been building the supply chain, identifying the right manufacturing partners and putting the processes in place to move toward repeatable production. By leveraging contract manufacturing, we can focus our capital on the technology, the product and our customers rather than building factories. Just as importantly, we're working to reduce the time between installations so we can respond to the demand we're seeing in the market."

ATS won the prestigious Earthshot Prize in the Fix Our Climate category in 2024. The Earthshot Prize, founded by Prince William, awards £1 million to five energy startups each year over a decade.

Trump says he's ending restrictions on methane emissions from oil drilling

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President Donald Trump said Tuesday that his administration is “terminating” a Biden-era rule that aimed to cut planet-warming emissions of methane from oil and gas drilling.

Trump said during a campaign rally in Texas that the change would save companies and consumers billions of dollars and unlock 210 million barrels of oil. That’s equivalent to about 10 days of U.S. petroleum consumption.

The move aims to encourage more domestic drilling as Trump faces criticism over high fuel prices amid the war in Iran.

Methane is responsible for about a third of planet-warming greenhouse gas emissions, scientists estimate.

Cuts in methane emissions have emerged in recent years as a global priority to slow the rate of climate change. Oil and gas operations are the largest industrial source of methane, which is the main component in natural gas and far more potent to the atmosphere than carbon dioxide in the short term.

The invisible gas leaks from equipment and is released into the atmosphere or burned off as a waste product by oil drillers.

Environmental Protection Agency Administrator Lee Zeldin previewed the changes last month, saying they would eliminate the agency’s “Super Emitter Program” that requires companies to investigate and repair major methane releases from oil and natural gas facilities. The agency would also set less restrictive standards for small oil and gas wells.

Trump said during Tuesday's rally in Lubbock for Texas Republican Senate candidate Ken Paxton that Biden's plan “crushed the small operators” with crippling regulations.

“I’m officially terminating Biden’s expensive and unnecessary methane regulations to save consumers and energy producers $45 billion in costs,” Trump said.

The loosening of the emissions rule comes as Trump and Republicans in Congress have been methodically dismantling climate policies enacted under former President Joe Biden. That's included the revocation of a scientific finding that was central to U.S. action on greenhouse gas emissions, lower fuel economy standards for vehicles and a move to repeal emission restrictions for coal and natural gas power plants.

Environmental groups said the latest rollback will let companies continue polluting the atmosphere with gas that could be captured and provide energy to millions of households.

Environmental Defense Fund President Fred Krupp said it gives a “free pass” to companies at the expense of American consumers.

“EPA should be fighting this waste, not making it easier,” he said.

Zeldin has said the methane rule would have cost $18 billion and was holding back the U.S. energy industry.

The Biden methane rule was announced by officials including former Vice President Kamala Harris during a 2023 U.N. climate conference in the United Arab Emirates.

Federal officials under Biden said it would prevent an estimated 58 million tons (52.6 million metric tonnes) of methane emissions by 2038 and reduce other pollutants that cause health problems.

By 2034, the rule was projected to yield $98 billion in benefits. That figure was derived by calculating the future “social costs” of greenhouse gas emissions on public health and the environment, an approach rejected by Trump's EPA.

While previous regulations focused only on new oil and gas wells in the U.S., the Biden rule regulated existing wells. Operators also would have needed to plug leaking methane from smaller wells that produce just 6% of the nation’s oil and gas while accounting for up to half of all methane emissions from oil and gas fields.

The final rule was published in 2024. The EPA last year imposed an 18-month delay to give companies time to meet new inspection requirements and other provisions.

The rule was crafted to be coordinated with a methane fee, approved in the 2022 climate law. The fee program would have levied a “waste emissions charge” of as much as $1,500 per metric ton of methane on energy producers that exceed a certain level of methane emissions.

The fee marked the first time the U.S. government directly imposed a fee, or tax, on greenhouse gas emissions. Congress repealed it weeks after Trump took office.

Officials also tried to rein in methane from oil and gas under former President Barack Obama, but that effort was scaled back during Trump's first term.

Houston energy company expands battery storage deal with Samsung

battery boost

Houston-based Alpha Omega Power, which develops, invests in and runs utility-scale battery energy storage systems, has signed a deal to add more storage capacity from a subsidiary of South Korean tech giant Samsung.

The latest deal adds 1 gigawatt-hour of storage capacity to Alpha Omega’s existing contract with Samsung SDI America, bringing total storage capacity to 1.5 gigawatts.

The Michigan-based Samsung subsidiary is manufacturing the systems’ cells and modules at a plant in Indiana, Alpha Omega said. Samsung SDI plans to deliver them by the end of this year.

“This second agreement strengthens our domestic supply chain supporting the next generation of energy infrastructure,” Paul Choi, CEO of Alpha Omega, said in a press release.

Houston-based Fengate Asset Management owns Alpha Omega. In 2023, they formed a partnership to build, acquire, and operate utility-scale battery energy storage projects in the U.S. Their 200-megawatt Vertus battery facility in Galveston County came online this month.

Alpha Omega plans to use the Samsung SDI systems to improve grid reliability and meet greater demand for power in markets served by the Electric Reliability Council of Texas (ERCOT) and the Salt Lake City-based Western Electricity Coordinating Council.

ERCOT covers 90 percent of power customers in Texas. The Western Interconnection grid covers all or part of 14 states, as well as parts of Canada and Mexico.

Samsung SDI is the only non-Chinese supplier of rigid-metal “prismatic” energy storage batteries in North America, according to Alpha Omega.

“With strong durability and fire safety compared with pouch-type batteries, its prismatic batteries have helped the company meet the stringent requirements of U.S. energy companies,” Alpha Omega said.

The Samsung Battery Box 1.7 equipment being purchased by Alpha Omega offers AI-powered algorithms and 25 years of continuous use, along with greater energy density than its predecessor. It also features the ability to directly inject fire-extinguishing agents on a module-by-module basis.

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