Houston energy leader wins hydrogen program's competition

top project

The University of Houston's new hydrogen program selected an Houston executive's team as the top project of the course. Photo via Getty Images

An executive from Houston-based SCS Technologies is celebrating a win from his time at the University of Houston Hydrogen Economy Program.

Cody Johnson, CEO of SCS Technologies, a provider of CO2 measurement systems, petroleum LACT units, and methane vapor recovery units, was on the winning 2024 Spring Capstone Project team for the UH program with the project, "Business Roadmap for Utilizing Hydrogen in Houston." The presentation outlined possible profits of $1.8 billion over the contract life with $180 million in green H2 investments.

The winning capstone project demonstrated the implementation of decarbonization processes. It included the enhancement of “capacity utilization in existing industrial hydrogen production along the Houston Ship Channel through amine capture technology,” according to a news release.

The team also identified business opportunities in producing ammonia as a liquid carrier by using the Haber-Bosch process that would leverage maritime ammonia tanker fleets to ship to Western Europe and Northeast Asia markets.

"It was an honor to collaborate with my Hydrogen Economy Program teammates to explore business opportunities using existing technologies to produce clean hydrogen and reinvest profits to further advance decarbonization efforts in the future," Johnson says in a news release. "I extend my gratitude to the University of Houston for assembling top-notch resources on the critical topic of clean hydrogen production. By bringing together students, corporate leaders, engineers, and scientists, we are able to join forces to accelerate the renewable hydrogen economy."

Cody Johnson is the CEO of SCS Technologies, a provider of CO2 measurement systems, petroleum LACT units, and methane vapor recovery units. Photo courtesy of SCS

UH’s Hydrogen Economy Program helps energy professionals and students strategically at the world’s energy hub in the Houston area. The program provides a forum for information from faculty and industry leaders. Participants in the University of Houston Hydrogen Economy Program can develop a capstone project by using knowledge from the completed course and then present a business plan for a clean hydrogen start-up venture. The projects were evaluated by a panel of judges after class presentations.

"At the University of Houston, we are committed to advancing the energy transition by bringing diverse skills and knowledge together," Alan Rossiter, executive director of external relations and educational program development for UH Energy, says in a news release. "The Hydrogen Economy Program is one of the many ways we achieve this. With the new cohort beginning in August and registration now open, we look forward to working with a new group of passionate, curious, and intelligent energy professionals and students."

The Hydrogen Economy is a part of UH Energy's Sustainable Energy Development portfolio. The Hydrogen Economy Program is a joint effort by UH and the American Institute of Chemical Engineers.

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SCS Technologies named Jane Stricker, executive director of HETI, as the executive chairperson of its inaugural urban reforestation event next month. Photo via GHP

Houston energy transition leader to spearhead urban reforestation initiative

seeing green

One of Houston's foremost energy transition leaders has been named to a community urban reforestation project from a Texas energy company.

Big Spring, Texas-based SCS Technologies named Jane Stricker, executive director of the Greater Houston Partnership’s Houston Energy Transition Initiative, as the executive chairperson of its inaugural urban reforestation event next month.

SCS, a provider of liquid hydrocarbon, water, and CO2 measurement systems, is holding the event on March 23 at the Galena Park Resource and Training Center in Galena Park, Texas, in collaboration with One Tree Planted and Trees for Houston.

“We are honored that Jane Stricker is spearheading our Galena Park tree-planting effort. As a revered leader in the energy transformation movement, Jane's impact is profound across Houston’s diverse energy sector and internationally,” Cody Johnson, CEO of SCS Technologies, says in a news release. “Jane's stewardship of this event underscores the vital importance of fostering partnerships between the community and industry to improve local environments and make strides in reducing our collective carbon footprint.

"Our donation of trees to the Galena Park area—a community just east of Houston materially affected by emissions from surrounding petrochemical plants—is one step towards environmental restoration and tree equity," he continues.

The goal for the event is to give out 1,125 shade, flowering, and fruit trees to community members, who will be asked to plant at their homes and businesses.

“The vast undertaking of the energy transformation requires more than just technological innovation; it demands a shared commitment from all sectors to enact real change. SCS Technologies is leading by example, demonstrating how innovative solutions and community-focused actions can drive meaningful change,” Stricker adds in the release. “As the executive chairperson, I am proud to be part of the Galena Park tree distribution event, an initiative that illustrates our shared dedication to environmental sustainability and community enrichment. The impact of these trees extends beyond carbon sequestration, bringing beauty and much-needed shade from our hot summer sun to the Galena Park community.”

The initiative is a part of SCS's goal to plant 100,000 trees in "economically challenged urban neighborhoods" across Texas, Oklahoma, and Louisiana by 2030. The company, per its environmental initiatives, is also participating in SME Net Zero by 2050.

Navigating the energy transition is a relay race, and the baton is in Houston, says this energy executive. Photo courtesy of SCS

O&G exec: Houston is where the future of energy is taking shape

Q&A

Earlier this month, a West Texas-based oilfield equipment provider announced that it was opening an office in the Ion Houston. It's all a part of the company's energy transition plan.

SCS Technologies, based in Big Spring, Texas, has a new strategy and innovation-focused office in the Ion, the company announced last week. The company, which provides CO2 capture measurement and methane vapor recovery equipment for the energy, industrial, and environmental sectors, also announced René Vandersalm as the new COO.

These are just the latest moves for the company as the world moves away from hydrocarbons and toward a greener future, CEO Cody Johnson tells EnergyCapital, explaining that he recognizes Houston has a role in the energy transition.

"This is a relay race – a race that has already started," he says. "Houston is the place where the baton will be handed off – it’s the place where the race is occurring. SCS Technologies is determined to be part of this solution dreamed of and planned in Houston and then executed in the Permian Basin, where we call home."

In an interview with EnergyCapital, Johnson weighs in on the new office and the future of his company.

EnergyCapital: How has SCS’s business evolved amid the energy transition?

Cody Johnson: SCS Technologies was founded to design and fabricate customized Lease Automated Custody Transfer units in the Permian Basin. These LACT units were used primarily to measure the quality and quantity of crude oil at all points of custody transfer. Essentially, SCS Technologies produced the premier "crude cash registers" for the Permian Basin.

As the oil and gas industry has adapted into the energy transition industry, our customers and the communities we operate in have a growing need for SCS Technologies to use our design and fabrication of measurement skids to measure the quality and quantity of CO₂ or to design and fabricate methane — and other vent gases — Vapor Recovery Units. SCS Technologies’ design and fabrication expertise in measurement skids, pump skids, and compression skids, coupled with our Permian Basin based training and fabrication campus, ideally positioned us to answer the call to fill the expertise and capacity gap.

EC: How are you preparing for the future of energy?

CJ: Society has been powered for the past 100 years or so by the management of hydrocarbon molecules. The essential tools for that have been and continue to be oil rigs, pipelines, and refineries in large part. This has given society many benefits but at a price to the environment that isn’t sustainable. Over the next 50 years, society will complete a transition away from managing hydrocarbon molecules and towards managing electrons. Those electrons are created by wind, solar, geothermal, or nuclear processes and travel down copper wires. Managing this transition that is already occurring and working together to do it in the near-term future of energy.

As we execute this transition over the next several decades from managing molecules to managing electrons to provide energy, molecule management companies must find ways to reach net zero emissions in their management practices. This means primarily capturing and managing methane vapors and capturing and sequestering CO₂. This is starting in 2023 in a meaningful way and needs to continue past 2030 and probably past 2050 to have any chance to meet the globally shared social goal to achieve net zero emissions by 2050 and stay below a maximum increase of 1.5 degrees C in global temperatures.

The clock is ticking, and we are behind. The largest molecule management infrastructure investment in history must happen for us to reach these goals. It's mission-critical as one of the three things we simply cannot fail at to achieve net zero by 2050. SCS Technologies is very focused on being an intentional part of the tremendous supply chain buildout to support the infrastructure buildout.

EC: How does the new office in the Ion support these plans?

CJ: SCS Technologies needs to collaborate with the brightest minds working on the energy transition challenges. To contribute meaningfully to the overall effort and to be the thought leader in the methane vapor recovery and CO₂ compression and measurement niche, we need to be at the heart of the energy transition collaboration community. That beating heart is the Ion in Houston.

EC: What role does your new COO, René Vandersalm, play in SCS evolving with the energy transition?

CJ: René is a proven executive in growing mission-critical design and fabrication capacity without sacrificing quality. René’s experience, capabilities, and global network will play a key role in our path forward.

EC: Based in West Texas, SCS has a growing presence in Houston. Why do you see Houston as a leader in the energy transition?

CJ: West Texas has an amazing group of oil and gas professionals and infrastructure. We are proud of that heritage and will always maintain our roots and foundation there. Houston has the only community of engineers, scientists, universities, companies, investors, and key professional service providers that can deliver on the buildout of the molecule management infrastructure required to buy the electron management infrastructure folks time to transition fully to green energy after 2050.

This is a relay race – a race that has already started. Houston is the place where the baton will be handed off – it’s the place where the race is occurring. SCS Technologies is determined to be part of this solution dreamed of and planned in Houston and then executed in the Permian Basin, where we call home.

------

This conversation has been edited for brevity and clarity.

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

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

major moves

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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University of Houston collaborates with county on future-facing sustainability efforts

dream team

Researchers at the University of Houston are partnering with the Harris County Office of County Administration’s Sustainability Office, the Harris County Energy Management Team, and other county staff in an effort to develop a comprehensive baseline of energy use and energy-use intensity that will aim to reduce energy costs and emissions in county facilities.

Once fully established, the team will work on tracking progress and evaluating the effectiveness of energy-saving measures over time. They will begin to build the foundation for future programs aimed at maximizing savings, reducing energy consumption, and increasing the use of renewable energy sources in county operations.

Harris County energy managers, Glen Rhoden and Yas Ahmadi, will work with UH professionals, including:

Jian Shi, UH Cullen College of Engineering associate professor of engineering technology and electrical and computer engineering
Zhu Han, Moores professor of electrical and computer engineering
Xidan "Delia" Zhang, UH research intern

The group began collaborating a year ago, and analyzed energy consumption data from county facilities.They were able to successfully identify key summertime energy-saving opportunities and completed retro-commissioning of four county buildings. Those efforts saved over $230,000 annually in electricity costs.

“This project is a prime example of how impactful research at UH can be when applied to real-world challenges, delivering tangible benefits to both the environment and the communities we serve,” Shi says in a news release.

The team will plan to do additional building projects, which includes the development of solar energy and heat pump initiatives, building automation system upgrades, and LED lighting installations. The goal is to reduce electricity usage by at least 5 percent per year for county facilities by 2030 and cut greenhouse gas emissions by 50 percent over the next 5 years for county buildings.

“Addressing climate change and the energy transition requires a collaborative effort that is not only data-driven and action-oriented but also human-centric,” Shi adds. “It’s about more than just technology—it’s about improving the quality of life for Texans.”

Houston-based autonomous trucking tech co. raises $20M

fresh funding

A Houston-based autonomous vehicle technology company has raised early funding.

Bot Auto has announced the completion of its pre-series A funding round which was oversubscribed and raised $20 million. The round was led by investments from Brightway Future Capital, Cherubic Ventures, EnvisionX Capital, First Star Ventures, Linear Capital, M31 Capital, Taihill Venture, Uphonest Capital, and Welight Capital.

“As true believers in autonomous trucking, we're thankful for our investors' shared vision,” Xiaodi Hou, founder and CEO of Bot Auto, says in a news release. “Our strong commitment, combined with recent AI advancements and a sharpened focus on operational efficiency, has created a clear path to commercialization.”

The funds raised will be focused on developing the technology and will opt to avoid unnecessary hiring ahead of operational maturity, scaling the operational footprint prior to product readiness, over expansion and partnership debt. The company aims for a more sustainable and efficient future, and is hoping its engineers and AV executives help Bot Auto become an autonomous trucking game changer.

The Investment is expected to help expand Bot Auto's tech development in autonomous trucking that will focus on safety and operation efficiency.

“Our prospects for success have never been more promising,” Hou adds. “ We march forward, committed to bringing this transformative technology to humanity for a brighter future.”

Bot Auto’s vision aligns with the pioneering spirit of Houston’s legacy in space exploration, striving to achieve remarkable feats in technology and transportation. The company is dedicated to leveraging this investment to make significant strides in the US autonomous trucking industry, ultimately contributing to a more sustainable and efficient future.

———

This article originally ran on InnovationMap.

Texas-based Tesla posts first quarterly increase in deliveries, but shares slump

mixed feelings

Low interest financing, sweet lease deals, price cuts and free charging boosted Tesla’s global deliveries in the third quarter, the first increase this year for the electric vehicle maker.

The Austin, Texas, company said Wednesday that it delivered 462,890 vehicles from July through September, bolstered by loans as low as 1.99%, and $299 monthly leases on the Model 3, its least expensive vehicle. It delivered 435,059 vehicles during the same period last year.

The figures for July through September came in slightly higher than analyst estimates of 462,000 for the period, according to data provider FactSet.

However, shares of Tesla Inc. dropped sharply in morning trading, down nearly 4%.

The deliveries were “good and a step in the right direction,” wrote Dan Ives of Wedbush, but that there would be pressure on the company's stock because investors had been hoping for even better.

“Overall, this is a clear improvement from the first half and we believe getting in the range of 1.8 million for the year is still the key and important bogey,” Ives said.

Tesla has struggled much of the year to sell its aging model lineup as growth in electric vehicle sales in the U.S. and Europe slowed due to concerns with range, price and the ability to charge on trips.

Falling sales early in the year led to once-unheard of discounts for the automaker, cutting into its industry leading profit margins. Analysts estimated that Tesla’s average vehicle sales price was $42,500 for the third quarter, the lowest price in four years.

The sales decline likely will pull down third quarter earnings when they are announced on Oct. 23.

Tesla’s sales decline comes as competition is increasing from legacy and startup automakers, which are trying to nibble away at the company’s market share.

Nearly all of Tesla’s sales came from the smaller and less-expensive Models 3 and Y, with the company selling only 22,915 of its more expensive models that include X and S, as well as the new Cybertruck.

Wedbush analyst Dan Ives wrote in a note to investors Tuesday that third-quarter sales would bring a rebound as China sales continue to increase and price and demand stabilizes.” As China continues to heat up on the demand story for Tesla with favorable leasing/financing terms and pent-up demand in the region, we are confident that we will see a significant growth figure in the region,” he wrote.

Europe will continue to be slow with macroeconomic pressures, and U.S. demand should stabilize, Ives wrote.

But BNP Paribas Exane said in an investor note that long term expectations of the market are somewhat high for Tesla. The company said its sales estimates for 2026 and 2027 “remain 10% to 15% below the street, respectively.”

Tesla is scheduled to unveil a purpose built robotaxi at an event next week.

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