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

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.

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This conversation has been edited for brevity and clarity.

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Rice University spinout lands $500K NSF grant to boost chip sustainability

cooler computing

HEXAspec, a spinout from Rice University's Liu Idea Lab for Innovation and Entrepreneurship, was recently awarded a $500,000 National Science Foundation Partnership for Innovation grant.

The team says it will use the funding to continue enhancing semiconductor chips’ thermal conductivity to boost computing power. According to a release from Rice, HEXAspec has developed breakthrough inorganic fillers that allow graphic processing units (GPUs) to use less water and electricity and generate less heat.

The technology has major implications for the future of computing with AI sustainably.

“With the huge scale of investment in new computing infrastructure, the problem of managing the heat produced by these GPUs and semiconductors has grown exponentially. We’re excited to use this award to further our material to meet the needs of existing and emerging industry partners and unlock a new era of computing,” HEXAspec co-founder Tianshu Zhai said in the release.

HEXAspec was founded by Zhai and Chen-Yang Lin, who both participated in the Rice Innovation Fellows program. A third co-founder, Jing Zhang, also worked as a postdoctoral researcher and a research scientist at Rice, according to HEXAspec's website.

The HEXASpec team won the Liu Idea Lab for Innovation and Entrepreneurship's H. Albert Napier Rice Launch Challenge in 2024. More recently, it also won this year's Energy Venture Day and Pitch Competition during CERAWeek in the TEX-E student track, taking home $25,000.

"The grant from the NSF is a game-changer, accelerating the path to market for this transformative technology," Kyle Judah, executive director of Lilie, added in the release.

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This article originally ran on InnovationMap.

Rice research team's study keeps CO2-to-fuel devices running 50 times longer

new findings

In a new study published in the journal Science, a team of Rice University researchers shared findings on how acid bubbles can improve the stability of electrochemical devices that convert carbon dioxide into useful fuels and chemicals.

The team led by Rice associate professor Hoatian Wang addressed an issue in the performance and stability of CO2 reduction systems. The gas flow channels in the systems often clog due to salt buildup, reducing efficiency and causing the devices to fail prematurely after about 80 hours of operation.

“Salt precipitation blocks CO2 transport and floods the gas diffusion electrode, which leads to performance failure,” Wang said in a news release. “This typically happens within a few hundred hours, which is far from commercial viability.”

By using an acid-humidified CO2 technique, the team was able to extend the operational life of a CO2 reduction system more than 50-fold, demonstrating more than 4,500 hours of stable operation in a scaled-up reactor.

The Rice team made a simple swap with a significant impact. Instead of using water to humidify the CO2 gas input into the reactor, the team bubbled the gas through an acid solution such as hydrochloric, formic or acetic acid. This process made more soluble salt formations that did not crystallize or block the channels.

The process has major implications for an emerging green technology known as electrochemical CO2 reduction, or CO2RR, that transforms climate-warming CO2 into products like carbon monoxide, ethylene, or alcohols. The products can be further refined into fuels or feedstocks.

“Using the traditional method of water-humidified CO2 could lead to salt formation in the cathode gas flow channels,” Shaoyun Hao, postdoctoral research associate in chemical and biomolecular engineering at Rice and co-first author, explained in the news release. “We hypothesized — and confirmed — that acid vapor could dissolve the salt and convert the low solubility KHCO3 into salt with higher solubility, thus shifting the solubility balance just enough to avoid clogging without affecting catalyst performance.”

The Rice team believes the work can lead to more scalable CO2 electrolyzers, which is vital if the technology is to be deployed at industrial scales as part of carbon capture and utilization strategies. Since the approach itself is relatively simple, it could lead to a more cost-effective and efficient solution. It also worked well with multiple catalyst types, including zinc oxide, copper oxide and bismuth oxide, which are allo used to target different CO2RR products.

“Our method addresses a long-standing obstacle with a low-cost, easily implementable solution,” Ahmad Elgazzar, co-first author and graduate student in chemical and biomolecular engineering at Rice, added in the release. “It’s a step toward making carbon utilization technologies more commercially viable and more sustainable.”

A team led by Wang and in collaboration with researchers from the University of Houston also shared findings on salt precipitation buildup and CO2RR in a recent edition of the journal Nature Energy. Read more here.