Houston offshore robotics company secures $12M, makes major leadership changes

big moves

Houston-based Nauticus Robotics has a new CEO and fresh funding. Photo via LinkedIn

In the wake of a leadership reshuffling and amid lingering financial troubles, publicly traded Nauticus Robotics, a Webster-based developer of subsea robots and software, has netted more than $12 million in a second tranche of funding.

The more than $12 million in new funding includes a $9.5 million loan package.

Nauticus says the funding will accelerate certification of the company’s flagship Aquanaut robot, which is being prepared for its inaugural mission — inspecting a deep-water production facility in the Gulf of Mexico that’s owned by a major oil and gas company.

The new funding comes several weeks after the company announced a change in leadership, including a new interim CEO, interim chief financial officer, and lead general counsel.

Former Halliburton Energy Services executive John Gibson, the interim CEO, became president of Nauticus last October and subsequently joined the board. Gibson replaced Nauticus founder Nicolaus Radford in the CEO role. Radford’s LinkedIn profile indicates he left Nauticus in January 2024, the same month that Gibson stepped into the interim post.

Radford founded what was known as Houston Mechatronics in 2014.

Victoria Hay, the new interim CFO at Nauticus, and Nicholas Bigney, the new lead general counsel, came aboard in the fourth quarter of 2023.

“We currently have the intellectual property, prototypes, and the talent to deliver robust products and services,” Gibson says in a news release. “Team Nauticus is now laser-focused on converting our intellectual property, including both patents and trade secrets, into differentiated solutions that bring significant value to both commercial and government customers.”

A couple of weeks after the leadership shift, the NASDAQ stock market notified Nauticus that the average closing price of the company’s common stock had fallen below the $1-per-share threshold for 30 consecutive trading days. That threshold must be met to maintain a NASDAQ listing.

Nauticus was given 180 days to lift its average stock price above $1. If that threshold isn’t reached during that 180-day period, the company risks being delisted by NASDAQ. The stock closed February 6 at 32 cents per share.

The stock woes and leadership overhaul came on the heels of a dismal third-quarter 2023 financial report from Nauticus. The company’s fourth-quarter 2023 financial report hasn’t been filed yet.

For the first nine months of 2023, Nauticus reported an operating loss of nearly $20.9 million, up from almost $11.3 million during the same period a year earlier. Meanwhile, revenue sank from $8.2 million during the first nine months of 2022 to $5.5 million in the same period a year later.

Nauticus went public in September 2022 through a SPAC (special purpose acquisition company) merger with New York City-based CleanTech Acquisition Corp., a “blank check” company that went public in July 2021 through a $150 million IPO. The SPAC deal was valued at $560 million when it was announced in December 2021.

Nauticus recently hired investment bank Piper Sandler & Co. to help evaluate “strategic options to maximize shareholder value.”

One of the strategic alternatives involves closing Nauticus’ previously announced merger with Houston-based 3D at Depth, which specializes in subsea laser technology. When it was unveiled last October, the all-stock deal was valued at $34 million.

The robots, developed by UH researchers, will provide a safer and more cost effective alternative to pipeline inspections, which are traditionally performed by human divers and require a great deal of time and money. Photo via UH.edu

UH team partners with Chevron, Oceaneering for remote-operated pipeline inspector

subsea innovation

Two professors at the University of Houston have developed an autonomous subsea vehicle that aims to decrease the number and severity of oil spills.

Known as SmartTouch technology, the Remote Operated Vehicles (ROVs) use smart touch sensors, video cameras and scanning sonars to inspect flange bolts in subsea pipelines, which are considered to lead to increased rates of leakage, according to a release from the university.

The ROVs, developed by UH's Zheng Chen and Gangbing Song, will provide a safer and more cost effective alternative to pipeline inspections, which are traditionally performed by human divers and require a great deal of time and money.

“By automating the inspection process with this state-of-the art robotic technology, we can dramatically reduce the cost and risk of these important subsea inspections which will lead to safer operations of offshore oil and gas pipelines as less intervention from human divers will be needed,” Chen, the Bill D. Cook Assistant Professor of Mechanical Engineering, said in a statement.

The technology will also be highly accurate in monitoring corrosion, which according to Song, the John and Rebecca Moores Professor of Mechanical Engineering, is responsible for most small leaks in subsea pipelines.

The project is funded by a $960,000 grant from the Bureau of Safety and Environmental Enforcement (BSEE), which is a part of the U.S. Department of the Interior. Chen and Song are also collaborating with Houston-based Oceaneering International on the development of the ROVs, which Oceaneering specializes in. Energy giant Chevron will evaluate the technology’s future commercialization, according to UH, and preliminary studies were funded by the university's Subsea Systems Institute.

Thus far, a prototype of the ROVs has been tested in Chen's lab at UH and in Galveston Bay. Experiments showed the technology's ability to inspect the looseness of subsea bolted connections, like flange bolts.

Chen and Song see other applications for their technology, as well.

"Ultimately, the project will push the boundaries of what can be accomplished by integrating robotics and structural health monitoring technologies," Chen added in the statement. "With proper implementation, the rate of subsea pipeline failure and related accidents will decrease, and subsea operations will be free to expand at a faster rate than before.”

Earlier this summer the UH Subsea Systems Institute and SPRINT Robotics teamed up to develop a robotics training program for the energy industry known as “Robotics in Energy.” The first of a series of two-day courses debuted in May and a subsequent course, Automation & Autonomy, will launch next month. Others are expected to be rolled out in the future as part of the university's Micro-Credentialing Programs in UH Energy.

Additionally Chevron and UH partnered up again last month to announce its inaugural cohort of UH-Chevron Energy Graduate Fellows.

UH is developing a wide range of robotics programming for the energy industry. Photo courtesy of University of Houston

University of Houston introduces robotics training programming for energy industry

automation station

Over the past 14 months, UH Energy at the University of Houston has developed a unique robotics training program for the energy industry.

UH Subsea Systems Institute and SPRINT Robotics teamed up to make the robotics-focused curriculum “Robotics in Energy,” which debuted in May. The two-day course offered hands-on training experience with innovative robotics technologies and attracted professionals from the oil and gas industry like participants from Chevron, and renewable energy sectors made up the 40 companies that were involved. The first day focused on topics like impact on business, safety and reliability, and risk analysis all within the spectrum of the energy industry. The second day of the course included a site tour at Sonardyne with instructor-led demonstrations of robotics technologies.

Wenyu Zuo, SSI coordinator of the robotics curriculum tells the University that he believes this will “address a critical workforce challenge.”

“The robotics program will help workforce development to give them robotic knowledge to help them to use robots to improve the quality, and in the future, the demand for remote operations- this is very important for current energy companies,” Zuo says.

The unique programming will prepare and upskill a workforce where robotics have a seat at the table. Photo via uh.edu

The Robotics in Energy class is the first of four modules in the robotics curriculum. The next courses are Robotics Foundation, Automation and Autonomy, and AI & the Vision for Integration, and are expected to be offered sometime later in 2023. Robotics Foundation will be a fundamentals of robotics course, Automation and Autonomy will aim to go in-depth on automation and robotics, and AI & the Vision for Integration,will look to “enhance integrity within energy operations” according to the official course descriptions.

While renewable energies and other energy innovations are being more accepted into the discourse among the industry, the UH Subsea Systems Institute saw an opening to integrate robotics as a new innovation for companies to consider.

“We are upscaling…we see the energy industry from an innovation perspective as very invested in certain things, but not very invested in this automation and robotics space, so it is quite needy “ says John Allen, adviser to the program who previously has experience as an executive at General Electric and Automation Machinery Manufacturing along with various other energy organizations.

When labor-intensive work conditions offshore provide some risk to the humans doing the job, robotics may work in the environment to get people out of “harm's way” and “automate” the work according to Allen.

For now, the workforce is the audience that they are targeting to help companies catch up with the technology, which the course hopes to evolve with.

“In the future, as the technology is developing , and robotics is rapidly developing technology, we want to keep it (the program) evolving year-by-year,” Zuo says on how Robotics in Energy may look going forward.

Houston-based Nauticus Robotics founder, Nicolaus Radford, shares the latest from his company. Image via LinkedIn

Q&A: Houston robotics entrepreneur on IPO, military innovation, and more

automation nation

Almost a decade ago, Nicolaus Radford founded a robotics company that automated underwater operations for heavy industry customers. Now, the company provides its robotics-as-a-service business to customers across industry, providing key analytics, risk-managed monitoring, and emission-reducing service.

Nauticus Robotics (Nasdaq: KITT) went public via SPAC last year, and Radford, CEO and founder, sat down with InnovationMap earlier this year to share the unique challenges he faced with the IPO, the company's partnerships with the United States Marine Corps, and more. Check out the shortened Q&A below and head to InnovationMap for the full conversation.

InnovationMap: Tell me about life after IPO. What’s been surprising for you leading your company through the transition and now on the other side of IPO?

Nicolaus Radford: I'll tell you what, it’s the hardest thing I ever did in my professional career by a factor of 10. It was a very exceptionally challenging period of time. It took a long to complete the transaction, and the market was just changing under our feet. Rules were and regulations were changing — were we grandfathered in or were we not?

I'm part of some business organizations and, and some of those confidential relationships have turned into friendships. And a couple of them call me and they're like, “we're really worried. We think this is going to be we don't know if you're going to get it done. And we just want you to be aware that you're not you may not get it done.” It is a little scary because once you engage in it, you're running quite a tab with bankers and law firms and all sorts of things. And if you don't complete the deal, it just might kill the company.

But we did it. We were one of a few people last year to actually get a deal over the line. I'm very proud of that. I think it speaks to the quality of the deal that we had. The macro economic environment was exceptionally difficult. It remains to be very difficult today. But we had strong backing from our strategic investors and our partners that were already on the cap table. They put a tremendous amount of money into the deal.

You know, I look back on it and it's, you know, ringing the Nasdaq bell when we listed, and giving that speech at the podium — it was a surreal moment. I remember when I was standing there looking at the Nauticus logo on the seven-story Nasdaq tower, having as many people in the company as we could bring, and just sharing that moment with all of them.

I was excited but cautious at the same time. I mean, the life of a CEO of a public company at large, it's all about the process following a process, the regulations, the administration of the public company, the filings, the reportings — it can feel daunting. I have to rise to the occasion to tackle that in this the next stage of the company.

IM: You’re working with the military on a project that adapts Nauticus tech for Marine Corps use. What’s it been like working with the military on this project?

NR: We've probably worked with military interests for the last six years, but all of the things that we have been doing have been extremely confidential and hush. Now we've been able to work with customers that have a stronger public facing persona, and the Defense Innovation Unit is one of those.

Their charter is it's quite literally looking for commercial technology and adapting that towards military applications, and so it's been nice to be able to show the utility and the application of of a lot of our technology and what we've been working on for so long as it's applied on a broader scale to the big services, whether it's the Navy or the Marine Corps.

Both of the programs we’re working on are all about mine countermeasures, and mines are really, really difficult, especially underwater mines. We've been we've been applying all of Nauticus’s broad technology portfolio to being able to search autonomously and being able to identify and neutralize threats in the water. I love that mission because anytime we can remove our service men and women from these situations, that's just the right thing to do.

IM: What’s next for Nauticus?

NR: What’s next is tough to talk about, because I can only talk about what’s already been published. I see Nauticus being the preeminent ocean robotics company. I want Nauticus to be an empire. It starts small but it grows — and it grows in many different ways, and we’re exploring all of those different ways to grow. We’re leading a technology renaissance in the marine space — and that happens only a few times in an industry.

------

This conversation has been edited for brevity and clarity. This article originally ran on InnovationMap.

Nauticus Robotics has secured a new customer, taking expanding its services to Brazil. Photo courtesy of Nauticus

Houston robotics company secures deal with Brazilian energy giant

sea change

Houston-based Nauticus Robotics, a developer of autonomous ocean robots, has landed a deal to supply its equipment to one of the world’s largest energy companies — a deal that eventually could blossom into $100 million worth of contracts.

Under the deal, Nauticus will dispatch its Aquanaut autonomous subsea robot to support offshore oil exploration activities carried out by Brazil’s Petrobras. Specifically, Aquanaut — propelled by artificial intelligence-enabled software — will supervise infield inspection services over a two-month span.

The deal with Brazil’s Petrobras represents Nauticus’ entry into the South American market and puts Nauticus in a position to score several Petrobras contracts that could collectively be valued at $100 million. Both companies are publicly traded.

Nicolaus Radford, founder and CEO of Nauticus, says Brazil offers a significant market opportunity for his company, as South America’s largest nation boasts one of the world’s most active offshore energy basins.

“A contract with [a] worldwide leading operator for Nauticus speaks to the state-of-the-art technologies of our autonomous robots as we further penetrate the global markets,” Radford says in a news release.

Petrobras is one of the world’s biggest offshore operators, managing 57 platforms, operating 10,000 miles of oil and gas pipelines, and producing the equivalent of 2.6 million barrels of oil per day. The company generated $124.47 billion in revenue last year.

Founded in 2014, Nauticus posted revenue of $11.4 million in 2022. The company went public last year through a $560 million merger with a special purpose acquisition company (SPAC). Nauticus recently opened a new office in The Ion, in addition to their Webster office.

“I see Nauticus being the preeminent ocean robotics company. I want Nauticus to be an empire. It starts small but it grows — and it grows in many different ways, and we’re exploring all of those different ways to grow,” Radford told InnovationMap in May. “We’re leading a technology renaissance in the marine space — and that happens only a few times in an industry.”

Square Robot's Houston office has the ability to showcase the technology to its potential customers. Photo courtesy of Square Robot

Boston-based tech company grows Houston team to deliver robotics to energy industry

do the robot

The robots are coming. Although the rise of Chat GPT has frightened plenty of professionals, we’re not on the precipice of the singularity just yet. And some of Houston’s coolest robots are contained in above-ground tanks, simply doing jobs that are too expensive and difficult for humans. The mechanical helpers in question come courtesy of Square Robot.

Square Robot co-founder and chief technology officer Jerome Vaganay started the company in 2016 in Boston. The company opened its Houston office in August of 2019.

“A lot of our partners and client base is out of here,” says director of operations, Matt Crist.

Karishma Prasad, director of technical operations, who joined the team in Houston earlier this year, adds “It’s a great centralized place for us. Houston is a great hub both nationally and internationally. There is so much energy transition innovation happening here.”

Square Robot is indeed a robotics company, but it trades in a very specific type of robot. The SR-1 is an innovative tank inspector.

“Since the ‘60s there’s been a traditional way of going into a tank. People would go inside and clean it with a variety of products," Crist explains. "Once it was clean, they would come in and inspect it repair it and that could take months.”

In fact, it could often cause a 15 or 16-week outage, he says.

Square Robot’s brainstorm was to take the human element out of the process. In other words, robots can do the job more safely, efficiently and quickly than a human ever could by collecting 18,000 data points per square foot, while allowing the product — most often diesel — to stay in the tank.

Square Robot saves those vast weeks of time, but perhaps even more importantly, says Prasad, “We’re avoiding emissions being released into the atmosphere.”

With its key location in Houston, Square Robot has worked with most of the major names in the energy world, including ExxonMobil, Chevron, BP, and Crist’s former employer, Phillips 66.

The latest robot is the SR-3, which is currently being tested in Houston. Curious webwatchers can see its progress on Square Robot’s website. Unlike the flagship SR-1, the new robot boasts a side launcher that allows it to be completely immersed in a tank before being launched.

But perhaps the most exciting thing about Square Robot’s 15-human Houston office is its test tank. There, potential partners can see exactly what the company’s ingenious creation can do. Square Robot will participate in ILTA, the International Operating Conference & Trade Show, which takes place from May 21-24. On the 24th, the company will host an open house from noon to 3 p.m. to allow potential users to see the SR-3 in action in the 42-foot-long test tank.

Square Robot will complete its hundredth tank inspection in May. It is also growing beyond the oil and gas world to include work with the power industry and was recently selected as a finalist in the Incubatenergy Lab Start Up program. This is one robot that we will happily allow to take over formerly all-too-human responsibilities.

Square Robot has a team of 15 in Houston. Photo courtesy of Square Robot

---

This article originally ran on InnovationMap.

Ad Placement 300x100

Ad Placement 300x600

CultureMap Emails are Awesome

Property Showcase

Texas-based Tesla gets China's initial approval of self-driving software

global greenlight

Shares of Tesla stock rallied Monday after the electric vehicle maker's CEO, Elon Musk, paid a surprise visit to Beijing over the weekend and reportedly won tentative approval for its driving software.

Musk met with a senior government official in the Chinese capital Sunday, just as the nation’s carmakers are showing off their latest electric vehicle models at the Beijing auto show.

According to The Wall Street Journal, which cited anonymous sources familiar with the matter, Chinese officials told Tesla that Beijing has tentatively approved the automaker's plan to launch its “Full Self-Driving,” or FSD, software feature in the country.

Although it's called FSD, the software still requires human supervision. On Friday the U.S. government’s auto safety agency said it is investigating whether last year’s recall of Tesla’s Autopilot driving system did enough to make sure drivers pay attention to the road. Tesla has reported 20 more crashes involving Autopilot since the recall, according to the National Highway Traffic Safety Administration.

In afternoon trading, shares in Tesla Inc., which is based in Austin, Texas, surged to end Monday up more than 15% — its biggest one-day jump since February 2020. For the year to date, shares are still down 22%.

Tesla has been contending with its stock slide and slowing production. Last week, the company said its first-quarter net income plunged by more than half, but it touted a newer, cheaper car and a fully autonomous robotaxi as catalysts for future growth.

Wedbush analyst Dan Ives called the news about the Chinese approval a “home run” for Tesla and maintained his “Outperform” rating on the stock.

“We note Tesla has stored all data collected by its Chinese fleet in Shanghai since 2021 as required by regulators in Beijing,” Ives wrote in a note to investors. “If Musk is able to obtain approval from Beijing to transfer data collected in China abroad this would be pivotal around the acceleration of training its algorithms for its autonomous technology globally.”

Houston organization celebrates zero waste goal

earth day win

Discovery Green celebrated Earth Day with a major milestone this year — achieving it’s Zero Waste goal.

The nonprofit, along with Citizens’ Environmental Coalition and Houston Public Works, are announced that the 2024 Green Mountain Energy Earth Day, which generated more than 3,800 pounds of garbage, diverted the majority of that waste from landfills. "Zero Waste," as defined by the Environmental Protection Agency, is successfully diverting at least 90 percent of waste from the landfill.

On Earth Day, Discovery Green composted 2,200 pounds of waste and recycled 1,300 pounds of trash.

“Part of Discovery Green Conservancy’s mission is to serve as a village green for our city and be a source of health and happiness for all. Our goal is to sustain an exceptional environment for nature and people,” Discover Green President Kathryn Lott says in a news release. “We are beyond thrilled to have achieved Zero Waste certification.”

The achievement was made possible by volunteers from the University of Houston – Downtown.

Steve Stelzer, president of Citizens’ Environmental Coalition’s board of directors, acknowledged how rare the achievement is in a public space in a major city like Houston.

“Discovery Green Conservancy stepped up and made a commitment to weigh, measure and record everything. They should be congratulated to have done this at this scale,” Stelzer adds. “The Conservancy said they were going to do it and they did. It’s an amazing accomplishment.”

The 2024 event included:

31,000 visitors in attendance
60 + exhibitors
100 + volunteers
12 artists
- 9 chalk artists
- Donkeeboy and Donkeemom
- Mark Bradford
25 Mark Bradford artworks made of scrap presented in partnership with Houston First
4 short films shown
3,836.7 pounds of waste collected during Green Mountain Energy Earth Day

Texas hydrogen research hub opens to support statewide, DOE-backed initiative

hi to hydrogen

A Texas school has cut the ribbon on a new hydrogen-focused research facility that will play a role in a statewide, Department of Energy-funded energy transition initiative.

The Center for Electromechanics at The University of Texas, Frontier Energy, Inc., and GTI Energy celebrated the grand opening of a hydrogen research and demonstration facility in Austin as part of the “Demonstration and Framework for H2@Scale in Texas and Beyond” project, which is supported by the DOE's Hydrogen and Fuel Cell Technologies Office.

The hydrogen proto-hub is first-of-its-kind and part of Texas-wide initiative for a cleaner hydrogen economy and will feature contributions from organizations throughout the state. The facility will generate zero-carbon hydrogen by using water electrolysis powered by solar and wind energy, and steam methane reformation of renewable natural gas from a Texas landfill.

The hydrogen will be used to power a stationary fuel cell for power for the Texas Advanced Computing Center, and it will also supply zero-emission fuel to cell drones and a fleet of Toyota Mirai fuel cell electric vehicles. This method will mark the first time that multiple renewable hydrogen supplies and uses have been networked at one location to show an economical hydrogen ecosystem that is scalable.

“The H2@Scale in Texas project builds on nearly two decades of UT leadership in hydrogen research and development” Michael Lewis, Research Scientist, UT Austin Center for Electromechanics, say in a news release. “With this facility, we aim to provide the educated workforce and the engineering data needed for success. Beyond the current project, the hydrogen research facility is well-positioned for growth and impact in the emerging clean hydrogen industry.”

Over 20 sponsors and industry stakeholders are involved and include Houston-based partners in Center for Houston’s Future and Rice University Baker Institute for Public Policy. Industry heavyweights like Chevron, Toyota, ConocoPhillips, and the Texas Commission on Environmental Quality are also part of the effort.

Texas hydrogen infrastructure and wind and solar resources position the state for clean hydrogen production, as evident in the recently released study, “A Framework for Hydrogen in Texas.” The study was part of a larger effort that started in 2020 with the H2@Scale project, which aims to develop clearer paths to renewable hydrogen as a “clean and cost-effective fuel” according to a news release. The facility will serve as an academic research center, and a model for future large-scale hydrogen deployments.

Participants in the DOE-funded HyVelocity Gulf Coast Hydrogen Hub will aim to gain insights from the H2@Scale project at UT Austin. The project will build towards a development of a comprehensive hydrogen network across the region. HyVelocity is a hub that includes AES Corporation, Air Liquide, Chevron, ExxonMobil, Mitsubishi Power Americas, Orsted, and Sempra Infrastructure. The GTI Energy administered HyVelocity involves The University of Texas at Austin, the Center for Houston’s Future, and Houston Advanced Research Center.

“H2@Scale isn't just about producing low-carbon energy, it's about creating clean energy growth opportunities for communities throughout Texas and the nation,” Adam Walburger, president of Frontier Energy, says in a news release. “By harnessing renewable energy resources to create zero-carbon hydrogen, we can power homes, businesses, transportation, and agriculture – all while creating jobs and reducing emissions.”

View All Listings

ENERGYCAPITALHTX EMAILS ARE AWESOME