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

Q&A

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?

CodyJohnson: 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.

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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Houston renewable energy developer teams up with global commercial real estate biz

collaboration station

Houston-based Catalyze, a developer of independent power systems, has teamed up with commercial real estate services powerhouse Cushman & Wakefield to expand installation of solar panels and battery storage technology at U.S. commercial and industrial properties.

The two companies say the partnership will help owners and tenants of office buildings, warehouses, and other commercial properties reduce utility costs, boost operating income, achieve environmental goals and ease stress on the power grid.

“This partnership marks a significant step forward in our mission to accelerate the adoption of renewable energy among commercial and industrial customers, benefiting both tenants and building owners,” Jared Haines, CEO of Catalyze, says in a news release.

The partnership will enable Cushman & Wakefield to decrease greenhouse gas emissions at facilities it manages for clients as well as its own corporate offices. The real estate sector accounts for about 40 percent of greenhouse gas emissions around the world.

“Our strategic partnership with Catalyze is a testament to our shared commitment to decarbonize the built environment by being at the forefront of the clean energy revolution,” says Jessica Francisco, Cushman & Wakefield’s chief sustainability officer. “Together, we are poised to advance the adoption of solar and storage technologies while driving down costs for our clients.”

In May, Catalyze announced that it secured $100 million in financing from NY Green Bank to support a 79 megawatt portfolio of community distributed generation solar projects across the state of New York.

Houston crews deal with disgruntled residents over power outages after Beryl

Houston, we have a problem

Drawn guns. Thrown rocks. Threatening messages. Houston’s prolonged outages following Hurricane Beryl has some fed-up and frustrated residents taking out their anger on repair workers who are trying to restore power across the city.

The threats and confrontations have prompted police escorts, charges in at least two cases, and pleas from authorities and local officials to leave the linemen alone so they can work.

Beryl knocked out power to nearly 3 million people in Texas — with most of those in the Houston area — after making landfall July 8. The Category 1 storm unleashed heavy rain and winds that uprooted trees and damaged homes and businesses along the Texas Coast and parts of Southeast Texas. State authorities have reported 18 deaths from Beryl. In the Houston area, some have been due to heat exposure following the loss of power, according to the medical examiner’s office in Harris County.

As of Tuesday, crews were still working to restore power to some residents.

“Linemen are our friends and are doing their job. Do not threaten them. I understand you’re angry and mad and frustrated, but let’s get through this together,” Mayor John Whitmire said during a news conference on Monday.

Houston police have investigated at least five cases involving threats made to workers and other employees, whether in person or online.

In one of these cases, police arrested Anthony Leonard, 38, charging him with aggravated assault with a deadly weapon. Authorities allege Leonard on Saturday threw rocks and pointed a gun at a group of CenterPoint Energy workers who were at a staging area.

Leonard remained jailed Tuesday. His attorney did not immediately return a call seeking comment.

CenterPoint CEO Jason Wells said over 100 line workers had to be evacuated from the staging area on Saturday. He said such threats are counterproductive as crews have to be moved to safer areas, delaying their work.

“So many of our fellow Houstonians have addressed this situation with patience and grace. And I want to thank them. But unfortunately, there have been instances where either acts of violence have been threatened or actually committed against our crews that are working this vital restoration. This is unacceptable. The safety of our crews is paramount,” Wells said.

KPRC reported that a charge of making a terroristic threat has been filed against a woman from the Houston suburb of Baytown. The Texas Department of Public Safety alleges the woman made multiple online threats of murder, assault and deadly conduct against employees, including Wells, at CenterPoint’s headquarters in downtown Houston. The woman has not been arrested.

Chief Deputy Mike Lee with the Harris County Sheriff’s Office said his agency has investigated a break-in of a CenterPoint vehicle and three cases where residents refused to let linemen enter their properties.

Ed Allen, business manager for the International Brotherhood of Electrical Workers Local Union No. 66, which represents workers at CenterPoint, said in 42 years in this industry, he’s never seen a response like this where workers are being threatened.

Allen said he spoke to one crew that said while they were working in a suburban Houston neighborhood, several men stood across the street from them and held an assault type rifle in a menacing way.

“It is very disheartening to see the community that I’ve worked in and that I’ve dedicated my life to provide electricity to act the way they have during this event,” Allen said.

Crews on Tuesday told Allen they haven’t received any new threats.

“I hope it’s gotten better out there. Part of that I think has a lot to do with the fact that regardless of what anybody thinks, the restoration effort has gone really well,” Allen said.

As of late Tuesday afternoon, CenterPoint reported that less than 82,000 customers remained without power.

On Tuesday, Gov. Greg Abbott sent a letter to CenterPoint demanding information from the company, including what actions it will take to reduce or eliminate power outages during future storms and how it will improve communication with its customers before, during and after a weather event.

“Texans must be able to rely on their energy providers to keep the power flowing, even during hurricane season. It is your responsibility to properly prepare for these foreseen incidents and work tirelessly to restore power as quickly as possible when it is lost. Anything less is unacceptable,” Abbott wrote.

In a statement, CenterPoint said it's addressing Abbott's request and that its work with officials and community leaders to increase the resiliency of the electric grid is essential in "creating and sustaining an environment in Texas where people want to live and build their businesses.”

Harris County Commissioner Adrian Garcia said the threats to CenterPoint workers and out-of-town crews only makes “it harder and longer to get your lights back on.”

“These folks are just here trying to help. Let them do their work and help us and tomorrow will be a better day,” Garcia said.

Energy giant announces deal retail company to bring EV tech to Houston malls

plugging in

Two Houston-area malls will be getting bp's electric vehicle charging technology thanks to a new global collaboration.

The global energy company will be bringing its global EV charging business, bp pulse, to 75 shopping facilities across the country thanks to a partnership with Simon Malls. Two malls in town — The Galleria and Katy Mills Mall — soon see bp's EV charging Gigahubs. The company will install and operate the chargers at the two area sites.

The deal aims to deliver over 900 ultra-fast charging bays that will support most make and model of EVs with the first locations opening to the public in early 2026. Other Texas locations include Grapevine Mills in Grapevine, and Austin’s Barton Creek Square.

“We’re pleased to complete this deal with Simon and expand our ultra-fast charging network footprint in the U.S.,” Richard Bartlett, CEO of bp pulse, says in a news release. “The Simon portfolio aligns with bp pulse’s strategy to deploy ultra-fast charging across the West Coast, East Coast, Sun Belt and Great Lakes, and we are thrilled to team up with Simon so that EV drivers have a range of retail offerings at their impressive destinations.”

Last month, bp pulse opened a EV charging station at its North American headquarters in Houston. The company plans to continue deployment of additional charging points at high-demand spots like major metropolitan areas, bp-owned properties, and airports, according to bp.

“As a committed long term infrastructure player with a global network of EV charging solutions, bp pulse intends to continue to seek and build transformative industry collaborations in real estate required to scale our network and match the demand of current and future EV drivers,” Sujay Sharma, CEO bp pulse Americas, adds.

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This article originally ran on InnovationMap.

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