3 things to know this week in Houston's energy transition ecosystem

quick catch up

Here's what you need yo know this week. Photo via Getty Images

Editor's note: It's a new week — start it strong with three quick things to know in Houston's energy transition ecosystem: Baker Hughes makes headlines for new hydrogen tech and grants, three people to know in energy, and more.

Who to know

Last week, EnergyCapital had three stories introducing you to key players within the energy transition:

Patrick Sullivan, president and of Hawaii-based Oceanit, explained the impact the company is having on the energy transition in Houston and beyond. Read more.
Ken Gilmartin, CEO of Wood, shared his company’s strategic mission for the future and their recent wins in the energy space that are driving the energy transition forward. Read more.
Tania Ortiz Mena was named president of Sempra Infrastructure, which is based in Houston. Read more.

What to attend

Here are two events not to miss this month. Photo via Getty Images

Put these upcoming events on your radar.

October 10-11 — SPRINT Robotics World Conference and Exhibition will show that many robots are in use and that the industry is accelerating and starting to scale. Learn more.
October 30-31 — Fuze is a must-attend event for executives, investors, and founders serious about solving the energy crisis and boosting company efficiency. Learn more.

Baker Hughes makes moves

Missed these storied about Baker Hughes? Photo courtesy of Baker Hughes

As you might have seen, Baker Hughes had two pieces of news last week.

Houston-based energy technology company Baker Hughes is rolling out two new products — pressure sensors for the hydrogen sector.

“Hydrogen plays a key role in the transition to a more sustainable, lower-emissions future but also poses challenges for infrastructure and equipment due to hydrogen embrittlement,” Gordon Docherty says. Read more.

Additionally, the Baker Hughes Foundation revealed details on a $75,000 grant to Houston Minority Supplier Development Council, or HMSDC, and a $100,000 grant to Washington, D.C.-based WEConnect International. HMSDC supports economic growth of minority-owned businesses, and WEConnect International is focused on women-owned companies. Read more.

Patrick Sullivan of Oceanit joins the Houston Innovators Podcast to share the potential he sees for Houston's energy ecosystem to transition efficiently. Photo courtesy of Oceanit

Why this entrepreneur sees a bright future for hydrogen innovation Houston's energy transition ecosystem

Q&A

While Patrick Sullivan lives on an island almost 4,000 miles away from Houston, the entrepreneur is no stranger to Houston's energy ecosystem.

Oceanit, founded in 1985 by Sullivan, is based in Hawaii, a portion of its customer base is based right here in Houston. Additionally, he opened his company's H2XCEL lab locally earlier this year.

“We are, indeed, in the middle of the sea, but we work around the world,” Sullivan, who serves as president and CEO of his company, says on the Houston Innovators Podcast. “What we do in Houston is interesting because we consider Houston the center of energy. And energy makes the world go around, and there’s just no two ways around it. Of course, there’s lots of transition going on, so it’s an exciting time to be doing energy.”

Learn more about Oceanit's presence in Houston and the impact the company is having on the energy transition in the podcast as well as the excerpt below.

EnergyCapital: What’s the opportunity you see with hydrogen?

Patrick Sullivan: The US has several millions of miles of methane pipelines, so if you start looking at loading hydrogen into those methane pipelines, you start displacing carbon. There are all sorts of interesting trade offs, but one of the challenges is this area called embrittlement. What that means is hydrogen is a little molecule, and when you put it next to a metal, sometimes it likes to hide in the metal, and over time, sometimes it builds up and then it can crack that metal. That’s called hydrogen embrittlement, and people are worried about that.

Turns out, we have developed a technology for a military application, and we can do things to metal without embrittlement. We’ve learned a lot over the years. We thought, what if we take what we’ve learned in the defense space and apply it to energy with the pipelines.

EC: What’s your goal with your new Houston-based H2XCEL lab that features your hydrogen embrittlement prevention technology?

PS: We can test those to failure right there in Houston. We’re talking to all the pipeline companies about getting their steel pipe and running through all these tests to show how it’s going to perform with all these different mixtures.

The idea is to get the community to see that when you integrate technology from different fields into the energy space, we can keep making progress.

It’s going to take time. But if we start reducing carbon and the use of fossil fuel today, we buy time for the planet.

EC: What’s the next big thing within tech that you’re working on?

PS: It’s a really interesting question, there’s so much going on right now, it’s really an exciting time in the tech space and the reason is because the world has been asleep at the switch for a while in terms of real technology.

One of the things we’ve put a lot of time and effort into is artificial intelligence. Large language models are definitely entertaining and have tons of opportunities. They’ve have got their pros and cons. We’ve worked with Noam Chomsky for years now, and our approach is based on Chomskyan grammar. The idea of human cognition is linguistic competency. When you speak, you’re mathematically efficient. It’s not random, it’s how human brains are put together. We built a system based on that hypothesis.

I think the reason AI is going to get more airtime too is the social and political consequences of misinformation.

— — —

This conversation has been edited for brevity and clarity.

Oceanit's lab, H2XCEL — short for “Hydrogen Accelerator” — aims to integrate hydrogen into the current energy infrastructure, a serious cost-saver for companies looking to make the energy transition. Photo via Getty Images

New lab opens in Houston to help make pipelines safer for hydrogen transport

HOU-DRYGEN

An innovative Hawaii-based technology company is saying aloha to Houston with the opening of a unique test laboratory that aims to increase hydrogen pipeline safety. It is the latest sign that Houston is at the forefront of the movement to hydrogen energy.

The lab, H2XCEL — short for “Hydrogen Accelerator” — aims to integrate hydrogen into the current energy infrastructure, a serious cost-saver for companies looking to make the energy transition. Oceanit, a Honolulu-based technology company, is behind the lab.

H2XCEL will be the only lab in the U.S. capable of testing hydrogen and methane mixtures at high temperatures and pressures. Its aim is to protect pipelines from hydrogen embrittlement — when small hydrogen molecules penetrate pipe walls and damage the metal, potentially causing cracks, leaks, and failures.

The lab uses Oceanit’s HydroPel pipeline nanotechnology, developed with the support of the U.S. Department of Energy. Photo courtesy of Oceanit

“The launch of this testing facility is a major milestone. It is the only lab of its kind in the U.S. and the work underway at H2XCEL will accelerate the transition toward a hydrogen-driven economy,” Patrick Sullivan, the CEO and founder of Oceanit, says in a news release. “We see a toolset emerging that will enable the U.S. to accelerate toward a low-carbon future.”

Houston was the obvious choice to launch the new lab, says Oceanit’s Direct of Marketing James Andrews.

“Houston is the energy capital of the world," Andrews explains. "Oceanit knew that if we wanted to make inroads with decarbonization technologies, we needed to be physically present there.”

H2XCEL uses Oceanit’s HydroPel pipeline nanotechnology, developed with the support of the U.S. Department of Energy. It is a surface treatment that protects metals, eliminating the need to build new pipelines using expensive, hydrogen-resistant metals. The estimated cost of building new hydrogen pipelines is approximately $4.65 million per mile, according to a press release from the company. In contrast, HydroPel can be applied to existing pipelines to prevent damage, and the cost to refurbish one mile of existing steel pipeline is less than 10 percent of the cost per mile for new pipeline construction.

One of the main objectives of the new Houston lab will be to test hydrogen-methane blends under varying conditions to determine how to use HydroPel safely. By enabling the energy sector to reduce its climate impact while continuing to provide energy using existing infrastructure, methane-hydrogen blends capitalize on hydrogen’s carbon-free energy potential and its positive impact on climate change.

“We want to create a situation where we can speed up energy transition,” says Andrews. “By blending it into a safer environment, we can make it attractive to bigger players.”

Oceanit already has a Houston presence where the team is focused on several other technologies related to hydrogen, including HeatX, a water-based technology for heat transfer surfaces in refineries, power plants, and more, as well as their HALO system, which utilizes directed energy to produce clean hydrogen wastewater and other waste byproducts produced in industrial businesses.

A recent report issued by Rice University’s Baker Institute for Public Policy about the hydrogen economy

in Texas insists that the Lone Star State is an ideal hub for hydrogen as an energy source. The report explains that with the state’s existing oil and gas infrastructure, Texas is the best spot to affordably develop hydrogen while managing economic challenges. The Houston region already produces and consumes a third of the nation’s hydrogen, according to the report, and has more than 50 percent of the country’s dedicated hydrogen pipelines.

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Houston researchers develop compact carbon capture tech for data centers

AI emissions

Two scientists from the University of Houston have been experimenting with new carbon capture systems that fit inside a standard shipping container, which have the potential to make eliminating carbon output from industrial sites much easier.

The capture of industrial carbon is an important complement to the fight against climate change, as well as winning tax credits for businesses that use carbon capture technology.

The problem is that such systems are often measured in acres, making them expensive to build and extremely power-hungry to actually use. UH Engineering Professor Mim Rahimi and former UH Ph.D. student Ahmad Hassan (now a postdoctoral associate at Harvard) have managed to fit their new system, the Small Modular Electrochemical Container (SMECs), inside a standard 40-foot shipping crate, making them compact and modular enough to be installed almost anywhere for operations of all sizes. Their research was recently published in the journal Environmental Science & Technology.

“With a conventional system, you’re building a 130-foot-tall structure designed for a specific power plant. With our technology, we can adjust the capacity by simply turning containers on or off,” Rahimi said in a news release. “That flexibility is particularly important for data centers, where electricity can come from a combination of natural gas and renewable sources.”

Rahimi and Hassan used simulated gas models to show that under optimal conditions, the SMEC used electrochemically mediated amine regeneration (EMAR) cells developed in Rahimi’s lab to capture 90 percent of carbon under optimal conditions through 300 cycles over 50 hours.

Encouraged, the team then modeled a 360-megawatt natural gas power plant associated with OpenAI’s Stargate AI data center project in Abilene, Texas. In addition to the savings on infrastructure costs, 20 of the researchers’ shipping container systems were able to capture 98 percent of carbon from Stargate’s 875-acre campus based on the model.

The looming energy costs and subsequent carbon emissions from data centers are a real concern. Estimates from the U.S. Department of Energy hypothesize that 12 percent of America’s energy needs could be gobbled up by the centers as soon as 2028. That is a massive new source of carbon. The flexibility of the SMEC means they can be deployed wherever the centers spring up.

“We’re taking a technology that traditionally requires enormous infrastructure and finding a way to fit it inside a shipping container,” Rahimi added in the release. “That opens up entirely new possibilities for how and where carbon capture systems can be used.”

In the future, the researchers say they plan to look at ways to adapt the technology to capture carbon dioxide directly from the atmosphere.

Hertha Metals breaks ground on $100M high-purity iron factory in Conroe

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Shortly after announcing a $133.65 Series A funding round, Conroe-based Hertha Metals broke ground Oct. 8 on a $100 million factory that will produce steel-grade and magnet-grade high-purity iron.

Hertha’s Chalyx plant, located in Conroe, will manufacture a total of about 10,000 metric tons per year of magnet-grade and steel-grade high-purity iron. The factory will use Hertha’s single-step process to generate high-purity iron for rare-earth-magnet and steel manufacturers in the U.S.

Hertha says Chalyx will be the first U.S. commercial plant for production of magnet-grade high-purity iron.

Chalyx is being built next to Hertha’s headquarters and its Pi100 pilot plant, which will remain in operation. Chalyx and Pi100 will form the first modern-day iron and steel “innovation complex” in the U.S., the company says.

“I founded Hertha Metals because I believed we could significantly improve how the world makes iron and steel from ore, and that an industry so fundamental to our future still had enormous room for invention,” Laureen Meroueh, founder and CEO of Hertha, said in a press release.

The 4-year-old startup says the Chalyx complex will lay the foundation for its first 500,000-ton-per-year steel mill.

Chalyx’s first priority is making high-purity iron for U.S. manufacturers of rare-earth magnets, Hertha says. These magnets are critical components for electric vehicles, data centers, wind turbines and defense systems.

China produces an estimated 94 percent of high-purity iron for rare-earth magnets, according to Hertha.

Aside from iron for rare-earth magnets, Chalyx will make iron and steel for pilot projects in the steel industry.

The plant is expected to come online in late 2027, with production of magnet-grade high-purity iron starting in early 2028.

Today, Hertha employs 32 people, the company says. Once it’s fully operating, the Chalyx plant will employ about 50 people.

Just ahead of the groundbreaking, Hertha announced the $133.65 million Series A round, co-led by Khosla Ventures and Doerr Capital. The round included a $65 million equity investment from the Pentagon.

“Iron and steel have shaped human progress for thousands of years. And I believe there is still an enormous amount left to invent,” Meroueh said at the groundbreaking ceremony.

Canada-founded energy tech company moves global HQ to Energy Corridor

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Pulsed-power technology company BlueSpark Energy will open its new global headquarters in Houston’s Energy Corridor to house its engineering, research and development, manufacturing, commercial and digital teams.

“Houston isn’t simply our new headquarters; it’s where a new BlueSpark begins,” Kahina Abdeli-Galinier, president and CEO of BlueSpark, said in a news release. ”We’re building the well health technology the industry needs to get more from existing wells, reduce intervention costs and keep wells producing for longer. Our new home brings us closer to our customers and places us at the heart of one of the most exciting markets in the industry, with the talent pool to match.”

The company, which began in Calgary, plans to grow its Houston workforce to 100 employees by the end of 2028, while the manufacturing element is expected to be operational in February 2027.

According to BlueSpark, the new facility will feature double the manufacturing floorspace of its current site, and the extra space will allow it to scale its tool manufacturing.

The headquarters is on West Sam Houston Parkway. BlueSpark's Chief Technology Officer Matt Mohajer and Chief Commercial Officer Zach Wilbur are already leading teams at the new space, according to the release.

BlueSpark develops pulsed-power technology that uses electrical energy to clean oil and gas well components, remove scale buildup and restore production without damaging equipment. Its technology helps operators reduce downtime, improve well performance and extend the productive life of existing wells.

Late last year, the company named Kahina Abdeli-Galinier as its CEO. It has since rebranded and focused on expanding its technology into new applications, including plugging and abandonment, cement removal and water services.

“We’re investing heavily in our technology, both the physics and the intelligence and delivery layer around it,” Abdeli-Galinier added in the release. “Having our engineering, manufacturing, digital, R&D and commercial teams in one place allows us to move much faster, giving our customers the tools they need to keep wells healthy and producing more for longer.”

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