Houston entrepreneur on how mobile payments will impact the energy transition

Q&A

Don Frieden of P97 shares his thoughts on the future of payment technology amid the energy transition. Photo courtesy of P97

Whether you fuel up your car at the pump or a plug, you need to pay for it. One venture-backed Houston company is dedicated to optimizing that transaction process.

P97 was founded in 2012 to upgrade gas station payments — something that had remained stagnant since around 1997 with the card reader. Don Frieden, CEO and president at the company, thought more can be improved in this process and other daily transactions.

He shared his vision for the company — past, present, and future — on the Houston Innovators Podcast, as well as how he sees the relationship between fintech and the energy transition.

Tell me about the founding mission you had for P97 and the current technologies you're working on.

Don Frieden: P97 is my second software startup — both Houston-based companies. The first one was back in the late '90s, and we were leveraging technology to enable workforce automation and decisions for technology. I mentioned that just because it's relevant because fast forward, and that business was required by public traded company in 2008 and some of our learnings were about payments of gas technology, which led us to start this business.

With P97, our mission from the beginning was simplifying and energizing daily journeys. We think about daily journeys from the time we leave home in the morning and when we get back at the end of the day — whether it's tolling, parking, buying fuel, fast food restaurants, it's all a part of your daily journeys, and our goal is to make things a little bit simpler each day.

There hadn't been any payment innovation from the late '90s, and that was contactless payment at the gas pump, but nothing more until we started the business in 2012. Part of the reason the company name is P97 is because we wanted to innovate around payments since we really hadn't seen anything innovative since 1997.

One of the things we’re most excited about is voice enable payments through our partnership with Amazon's Alexa. The landscape of payments at gas stations underwent this next revolution, and we're using cutting-edge speech recognition and artificial intelligence to allow drivers to pay for fuel just using their voice. It makes the process faster and more efficient, and is completely hands-free. From this time I say, “Alexa, buy gas,” six seconds later, the gas would be turned on and any loyalty rewards I have would be applied, all from the comfort of my car.

How is P97 set up to address the energy transition and the new fuel sources coming out of it?

DF: The good news is about fuel is it's a process of filling up a vehicle — whether it's with a EV charge or whether you're putting hydrogen in the tank. We run one of the largest hydrogen networks in California now. Or, it’s just traditional fuel selling in gallons. The biggest challenge really is integrating all of those different use cases into mobile apps so families can have a wide variety of ways to to fuel their vehicles of wide variety of ways to pay for that fuel — all in one really frictionless experience.

How do you see Houston as a hub for your company as well as an energy transition leader?

DF: Houston is pretty much the energy capital of the world, so from from a partnership and client perspective, life is really easy in Houston right because we have so many major energy companies represented here, but we're not exactly a tech hub. Hiring in Houston has been a bit of a challenge. We have to sometimes hire people out of California and relocate them to Houston. Because of the high quality of life in Houston, we have been able to relocate people here and hire the very best talent.

The reality is that all these energy companies have now recognized the energy transition. Early on, electric vehicles were not overly popular, but now I think we all embrace the importance of climate change and zero hydrocarbon footprint. I think the last 24 months have seen really a major change in embracing everything from wind to solar to supporting the electrification of transportation. You've seen major investments by energy companies acquiring technology companies that can help them accelerate as they make the transition. It was maybe a little bit slow going early on, but the last couple of years, we've just watched it really accelerate. I think also with the US Government getting behind the Infrastructure Bill and putting programs out there to help companies transition has really also helped accelerate this process.

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1PointFive signs latest deal, shares update on $1.3B carbon removal project

DAC deal

Houston-based 1PointFive, a subsidiary of Occidental Petroleum Corp., has secured another buyer of carbon dioxide removal credits for its $1.3 billion STRATOS project as it moves toward operation.

Bain & Company, a Boston-based consulting firm, has agreed to purchase 9,000 metric tons of carbon dioxide removal (CDR) credits from the direct air capture (DAC) facility over three years, according to a news release. DAC technology pulls CO2 from the air at any location, not just where carbon dioxide is emitted.

The deal is Bain's first purchase of DAC removal credits. The company has developed a program that helps clients purchase carbon credits from a range of carbon-removal technologies.

"We are proud to partner with 1PointFive and add them to our portfolio of engineered carbon removal technologies," Sam Israelit, Bain’s chief sustainability officer, said in the news release. "Their track record for developing DAC technology, coupled with their deep understanding of what it takes to deliver large-scale infrastructure projects, uniquely positions them to be a leader in this emerging segment.”

“We believe this agreement demonstrates continued momentum for the solution while supporting the development of vital domestic infrastructure,” Anthony Cottone, president and general manager of 1PointFive, added in the release.

Bain joins others like Microsoft, Amazon, AT&T, Airbus, the Houston Astros and the Houston Texans that have agreed to buy CDR credits from STRATOS.

The Texas-based STRATOS project is being developed through a joint venture with investment manager BlackRock and is designed to capture up to 500,000 metric tons of CO2 per year. The U.S Environmental Protection Agency approved Class VI permits for the project last year.

1PointFive says STRATOS is "progressing through start-up activities." The company shared in a LinkedIn post that Phase 1 of the project is expected to go online in Q2, with Phase 2 ramping up through the remainder of 2026.

Houston researcher develops efficient method to cool AI data centers

cool findings

A University of Houston professor has developed a new cooling method that can remove heat at least three times more effectively from AI data centers than current technologies.

Hadi Ghasemi, a distinguished professor of Mechanical & Aerospace Engineering at UH, published his findings in two articles in the International Journal of Heat and Mass Transfer. The findings solve a critical issue in the growing AI sector, according to UH.

High-powered AI data centers generate huge amounts of heat due to the GPU and operating systems they use with extreme power densities, which introduce complex thermal challenges. Traditionally, cooling methods, like microchannels, which use flow and spray cooling, have had limitations when exposed to extreme heat flux, according to UH.

Ghasemi’s research, however, found a more effective way to design thin-film evaporation structures to release heat from data centers and electronics at record performance.

Ghasem’s solution coupled topology optimization and AI modeling to determine the best shapes for thin film efficiency, ultimately landing on a branch-like structure—resembling a tree.

The model found that the “branches” needed to be about 50 percent solid and 50 percent empty space for optimum efficiency, and that they could sustain high heat fluxes with minimal thermal resistance.

“These structures could achieve high critical heat flux at much lower superheat compared to traditionally studied structures,” Ghasemi said in a news release. “The new structures can remove heat without having to get as hot as previous removal systems.

Ghasemi’s doctoral candidates, Amirmohammad Jahanbakhsh and Saber Badkoobeh Hezave, also worked on the project. The team believes their results show the impact of a physics-aware, AI design and can help ensure reliability, longevity and stability of AI data centers.

“Beyond achieving record performance, these new findings provide fundamental insight into the governing heat-transfer physics and establishes a rational pathway toward even higher thermal dissipation capacities,” Ghasemi added in the release

Texas federal judge allows lawsuit against California AG over ExxonMobil remarks

In the News

A federal judge in Texas ruled that ExxonMobil can bring a defamation lawsuit against California’s attorney general over comments about the company’s plastic recycling efforts.

U.S. District Judge Michael J. Truncale in the Eastern District of Texas said in a ruling in February that California Attorney General Rob Bonta cannot claim official immunity in regards to several statements he made, including one in a campaign email sent to Texas residents.

Bonta sued Exxon in September 2024, saying that the oil giant encouraged consumers to purchase plastics products with the promise that the products would be recycled. He said less than 5% of plastic is recycled into another plastic product, and that recycling processes touted by Exxon don't work. Exxon said the problem is with California's recycling system.

Exxon later sued Bonta in his individual capacity and environmental groups for defamation, saying that the comments harmed current and future business contracts. The lawsuit was filed in Texas, near its principal place of business.

Truncale dismissed the lawsuit against the environmental groups but allowed it to proceed against Bonta.

The judge pointed to a campaign email Bonta sent to Texas residents saying that only 5% is recycled and the rest ends up in the environment and in our bodies: “Exxon Mobil knew, and Exxon Mobil lied.” Bonta, a Democrat, argued he was simply updating email recipients on his office's activities.

But Truncale said a campaign contribution link on the email turned the communication into a campaign activity not protected by immunity in Bonta's official capacity as attorney general.

“Here, the contribution request betrays the email's true nature: a campaign promotion. Campaigning is not within Bonta's scope of employment,” the judge wrote.

Bonta has filed a notice of appeal.

“The Attorney General looks forward to vigorously litigating this case, and is proud to advance his lawsuit against ExxonMobil,” his press office said.

ExxonMobil said in a statement that the “campaign of lies designed to derail our advanced recycling business must stop.”

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