Exclusive: Canadian energy software company plans to grow local team and open Houston office

new to Hou

A Canadian software company is expanding its presence in Houston to meet the needs of its clients. Photo via Getty Images

One of the biggest obstacles heavy industry tech startups face — especially in oil and gas — is getting that first big customer, says Vicki Knott, co-founder and CEO of Crux OCM.

"Our biggest challenge is nobody wants to be first in energy," she tells InnovationMap.

But Crux OCM, based in Calgary, overcame that challenge and currently counts Houston-based Phillips 66 among its clients. The two companies announced a pilot program for Crux OCM's pipeBOT technology earlier this year.

Crux OCM's technology focuses on automating the control room operations — something that, like most automation software, increases revenue and reduces errors. The company, which was founded in 2017, also allows its clients consistency and reliability with its software.

"Even though the pumps and the equipment are automated, control room operators are still executing procedures, checklist, and rules of thumb on their own via screens," Knott says. "If you think of pilots and planes have autopilot software, why don't our control room operators? That's really the problem we set out to tackle."

Vicki Knott is co-founder and CEO of Crux OCM. Photo courtesy

Automation is certainly a growing opportunity for energy companies — especially in light of the pandemic that forced remote work and less on-site personnel across industries. Knott says just over a year ago, Crux OCM saw increased interest.

"We had a couple customers who had their capital budget cut when the pandemic hit and when oil went negative, and we had a couple customers who said they were doubling down on software like this," Knott explains.

The company has raised $3 million in venture funding, backed by Root Ventures, Angular Ventures, and Golden Ventures. Knott says another funding round is on the horizon as is growth for its Houston presence.

Crux OCM currently has three full-time Houston employees and is looking to grow that team in the next six months. Specifically, the local team will focus on sales, as well as product development, as the company's head of sales and senior product manager are both based here. As the local clientbase grows, Knott says they will also need to hire deployment engineers as well.

A new office to support this growing team is also in the works. Knott says she's looking for space in North Houston, and, depending on how comfortable people are returning to offices and meetings, it could open as early as later this year.

Calgary and Houston have a lot in common, Knott says, and she sees a very natural connection to the two regions. Knott plans to work six months of the year in Houston with the local office.

"A lot of the companies that head offices in Houston, they have head offices in Calgary," she says. "If a startup in Houston is getting traction, I think there's a natural movement to start in the Calgary market and vice versa."

Catch up on space news — from new partnerships at Rice University and the latest snub for the Space City. Photo via NASA.gov

Space City News: Houston passed over for military HQ, Rice forms new partnerships

aerospace updates

It's been a busy few days for space news, and in Houston — the Space City — it's all relevant to the continued conversation of technology and innovation.

With so much going on — from Houston being passed over for the Space Command's headquarters and Rice receiving $1.4 million in federal funds for a new hub — here's what you may have missed in space news.

The Ion awarded $1.4M to launch Aerospace Innovation Hub

The Ion will be home to the Aerospace Innovation Hub, thanks to a federal grant. Courtesy of Rice University

Through a partnership with NASA's Johnson Space Center and DivInc, The Ion has been awarded $1.4 million in federal funding to create its Aerospace Innovation Hub. The ASCI-Hub will support and develop regional minority business enterprises addressing aerospace-related challenges.

"Landing this award is another win for the region that leverages the unique strengths of the crewed space program at NASA JSC," says Jan E. Odegard, interim executive director of the Ion, says in a news release. "As Houston was critical to landing men on the moon in the late-'60s, the Ion's Aerospace Innovation Hub will be key not only to advancing the future of spaceflight, including the mission to Mars in the future, but also to tackling challenges facing our everyday lives here on Earth."

The hub will provide NASA's expertise and resources across robotics, medicine, health support systems, additive manufacturing, and more — as well as community events, education and training, and an accelerator program.

"We're eager to partner with the MDBA, Rice University and the Ion to help develop and grow minority entrepreneurs and accelerate innovative and tech-forward solutions in Houston," says Vanessa Wyche, deputy director of the JSC, in the release. "This partnership builds toward NASA's goals to enhance scientific and technological knowledge to benefit all of humankind and catalyze economic growth, as we propel commercialization of space and extend our presence in the solar system."

Opening in 2021, the Ion announced $1.5 million in grant funds in September. Those funds are going toward accelerators, which will collaborate with the Aerospace Innovation Hub.

"While we have taken many small — and valuable — steps over the past few years, this is one giant leap forward for our efforts to promote sustainable inclusion in Houston's entrepreneurial and technological ecosystem," says Christine Galib, senior director of programs at the Ion, in the release.

The Air Force announces 6 potential sites for Space Force base — and Houston misses the mark

Houston will not be considered for the Space Command HQ — but Texas isn't completely out of the running. U.S. Air Force Graphic by Rosario "Charo" Gutierrez

The United States Department of the Air Force announced the six candidate locations for the U.S. Space Command Headquarters — and Houston didn't make the cut.

The six locations include:

  • Kirtland Air Force Base in New Mexico
  • Offutt AFB in Nebraska
  • Patrick AFB in Florida
  • Peterson AFB in Colorado (where temporary operations are located)
  • Port San Antonio in Texas
  • Redstone Army Airfield in Alabama

The Air Force evaluated self-nominated cities from across 24 states based on factors related to mission, infrastructure capacity, community support, and costs to the Department of Defense, according to a press release. U.S. Space Command Headquarters location announcement is expected in early 2021.

"We are disappointed that Houston is not among the finalist locations for the U.S. Space Command," Susan Davenport, chief economic development officer for the Greater Houston Partnership, says in a statement to the Houston Chronicle. "We believe we put together a strong case for why Houston should be chosen. We will continue to work with the U.S. Air Force and other branches of the military on future opportunities and we will remain vigilant in our pursuit of aerospace industry opportunities for this region."

Rice Space Institute to collaborate with Canada

The Rice Space Institute has a new partner is Canada. Photo courtesy of NASA

Rice University's Rice Space Institute has signed a memorandum of understanding with the Consulate General of Canada in Dallas to collaborate on space science and technology.

The parties made the collaboration official at a virtual event on November 20. RSI Director David Alexander OBE, a Rice professor of physics and astronomy, says the partnership is key to the continued commercialization of space exploration.

"What's different about this agreement is that with the rapid growth of commercial space worldwide and the strength of the aerospace industry in Houston, it presents a new pathway for potential interactions between Canadian science and industry and commercial entities not just in the Houston region but around the world," he says in a news release. "It's a nice, complementary aspect to our connection with NASA."

The United States has collaborated with Canada on space exploration for decades, and Canada's government is committed to advancing space technology.

"This MOU with the Rice Space Institute comes at an exciting time in human space exploration," says Rachel McCormick, the Consul General of Canada in Dallas and Canada's official representative in the U.S. South Central region, in the release. "In 2019, the Government of Canada announced an investment of $1.9 billion over 24 years for the next generation of smart, AI-powered space robotics for the U.S.-led Lunar Gateway program.

"We are also providing $150 million over five years for the Lunar Exploration Accelerator Program," she continues. "LEAP will fund the development and demonstration of lunar science and technologies in fields that include AI, robotics and health."

Validere, a Canada-based energy logistics company, is expanding in Houston. Courtesy of Validere

Canadian startup fresh off $7 million seed funding raise picks Houston for U.S. expansion

Energy Tech

Houston's established reputation as the energy capital of the world combined with burgeoning tech scene has made the city attractive for a growing oil and gas company with roots in Canada.

Validere is an oil and gas company focused on using real-time data and both artificial and human intelligence insights to improve its clients' quality, trading, and logistics. The company's technology enhances the ability of oil and gas traders to make informed decisions, which currently are made based off unreliable product quality data. Annually, $2 trillion of product moves around the oil and gas industry, and Validere uses the Internet of Things to improve the current standard of decision making.

"It's like if you'd go to the grocery store to buy milk not knowing if it's 1 percent, 2 percent, or cream," co-founder Nouman Ahmad says about how companies are currently making oil and gas trading decisions.

In October, Validere concluded its seed funding round with $7 million. Among Validere supporters are several Silicon Valley power players, such as Sallyport Investments, Y Combinator, Real Ventures, Moment Ventures, and ZhenFund. The funds, in part, will help the company expand into the United States market.

"The goal in 2019 is to be at the same stage — in terms of customer success — in the U.S. market as we were at the end of 2018 in the Canadian market," Ahmad says.

The company has seen great success in Canada, and some of its existing clients have business in the Houston area already, Ahmad says.

With the increased focus on Houston comes a growing office. Currently, Ahmad leads the efforts in town with one other staffer, however, operations won't be a skeleton crew for too much longer. Ahmad says he is "aggressively hiring" in the Bayou City, which will be a key office for them as they grow across the country.

"As we think about the long-term future of the business, Houston is one of the most important markets for us going forward," Ahmad says.

Houston has been a welcoming community to the Canadian transplant, who says he spends most of his time here now. Both the startup and tech scenes in Houston have been valuable resources to the company — as has the energy industry's potential clients.

"Houston market is very receptive and ready for innovative companies that are solving problems for them," Ahmad says.

The company was founded in 2015 at Harvard by entrepreneurs who saw the potential for better transparency in the oil and gas industry. Validere's other co-founder and CTO, Ian Burgess, first had the idea for the technology after an accident happened in Canada; a train carrying crude oil derailed and blew up a small town killing 45 people.

"The industry largely bases important operational decisions on poor quality data," Burgess says in a release. "Our platform not only informs product quality reliably and in real time, but it also uses AI to help oil and gas companies optimize product movement."

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Texas Republicans are pushing to move NASA headquarters to Houston

space city

Two federal lawmakers from Texas are spearheading a campaign to relocate NASA’s headquarters from Washington, D.C., to the Johnson Space Center in Houston’s Clear Lake area. Houston faces competition on this front, though, as lawmakers from two other states are also vying for this NASA prize.

With NASA’s headquarters lease in D.C. set to end in 2028, U.S. Sen. Ted Cruz, a Texas Republican, and U.S. Rep. Brian Babin, a Republican whose congressional district includes the Johnson Space Center, recently wrote a letter to President Trump touting the Houston area as a prime location for NASA’s headquarters.

“A central location among NASA’s centers and the geographical center of the United States, Houston offers the ideal location for NASA to return to its core mission of space exploration and to do so at a substantially lower operating cost than in Washington, D.C.,” the letter states.

Cruz is chairman of the Senate Committee on Commerce, Science, and Transportation; and Babin is chairman of the House Committee on Science, Space, and Technology. Both committees deal with NASA matters. Twenty-five other federal lawmakers from Texas, all Republicans, signed the letter.

In the letter, legislators maintain that shifting NASA’s headquarters to the Houston area makes sense because “a seismic disconnect between NASA’s headquarters and its missions has opened the door to bureaucratic micromanagement and an erosion of [NASA] centers’ interdependence.”

Founded in 1961, the $1.5 billion, 1,620-acre Johnson Space Center hosts NASA’s mission control and astronaut training operations. More than 12,000 employees work at the 100-building complex.

According to the state comptroller, the center generates an annual economic impact of $4.7 billion for Texas, and directly and indirectly supports more than 52,000 public and private jobs.

In pitching the Johnson Space Center for NASA’s HQ, the letter points out that Texas is home to more than 2,000 aerospace, aviation, and defense-related companies. Among them are Elon Musk’s SpaceX, based in the newly established South Texas town of Starbase; Axiom Space and Intuitive Machines, both based in Houston; and Firefly Aerospace, based in the Austin suburb of Cedar Park.

The letter also notes the recent creation of the Texas Space Commission, which promotes innovation in the space and commercial aerospace sectors.

Furthermore, the letter cites Houston-area assets for NASA such as:

  • A strong business environment.
  • A low level of state government regulation.
  • A cost of living that’s half of what it is in the D.C. area.

“Moving the NASA headquarters to Texas will create more jobs, save taxpayer dollars, and reinvigorate America’s space agency,” the letter says.

Last November, NASA said it was hunting for about 375,000 to 525,000 square feet of office space in the D.C. area to house the agency’s headquarters workforce. About 2,500 people work at the agency’s main offices. NASA’s announcement set off a scramble among three states to lure the agency’s headquarters.

Aside from officials in Texas, politicians in Florida and Ohio are pressing NASA to move its headquarters to their states. Florida and Ohio both host major NASA facilities.

NASA might take a different approach, however. “NASA is weighing closing its headquarters and scattering responsibilities among the states, a move that has the potential to dilute its coordination and influence in Washington,” Politico reported in March.

Meanwhile, Congressional Delegate Eleanor Holmes Norton, a Democrat who represents D.C., introduced legislation in March that would prohibit relocating a federal agency’s headquarters (including NASA’s) away from the D.C. area without permission from Congress.

“Moving federal agencies is not about saving taxpayer money and will degrade the vital services provided to all Americans across the country,” Norton said in a news release. “In the 1990s, the Bureau of Land Management moved its wildfire staff out West, only to move them back when Congress demanded briefings on new wildfires.”

Houston research breakthrough could pave way for next-gen superconductors

Quantum Breakthrough

A study from researchers at Rice University, published in Nature Communications, could lead to future advances in superconductors with the potential to transform energy use.

The study revealed that electrons in strange metals, which exhibit unusual resistance to electricity and behave strangely at low temperatures, become more entangled at a specific tipping point, shedding new light on these materials.

A team led by Rice’s Qimiao Si, the Harry C. and Olga K. Wiess Professor of Physics and Astronomy, used quantum Fisher information (QFI), a concept from quantum metrology, to measure how electron interactions evolve under extreme conditions. The research team also included Rice’s Yuan Fang, Yiming Wang, Mounica Mahankali and Lei Chen along with Haoyu Hu of the Donostia International Physics Center and Silke Paschen of the Vienna University of Technology. Their work showed that the quantum phenomenon of electron entanglement peaks at a quantum critical point, which is the transition between two states of matter.

“Our findings reveal that strange metals exhibit a unique entanglement pattern, which offers a new lens to understand their exotic behavior,” Si said in a news release. “By leveraging quantum information theory, we are uncovering deep quantum correlations that were previously inaccessible.”

The researchers examined a theoretical framework known as the Kondo lattice, which explains how magnetic moments interact with surrounding electrons. At a critical transition point, these interactions intensify to the extent that the quasiparticles—key to understanding electrical behavior—disappear. Using QFI, the team traced this loss of quasiparticles to the growing entanglement of electron spins, which peaks precisely at the quantum critical point.

In terms of future use, the materials share a close connection with high-temperature superconductors, which have the potential to transmit electricity without energy loss, according to the researchers. By unblocking their properties, researchers believe this could revolutionize power grids and make energy transmission more efficient.

The team also found that quantum information tools can be applied to other “exotic materials” and quantum technologies.

“By integrating quantum information science with condensed matter physics, we are pivoting in a new direction in materials research,” Si said in the release.

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This article originally appeared on our sister site, EnergyCapitalHTX.com.

Houston humanoid robotics startup inks new deal to deploy its rugged robots

big deal

Houston-based Persona AI announced the expansion of its operations at the Ion and a major milestone in deploying its humanoid robots.

The company will establish a state-of-the-art development center in the prominent corner suite on the first floor of the Ion, and is slated to begin expansion in June.

“We chose the Ion because it’s more than just a building — it’s a thriving innovation ecosystem,” CEO Nicolaus Radford said in a news release. “This is where Houston’s tech future is being built. It’s a convergence point for the people, energy, and ideas that power our mission to redefine human-machine collaboration. For an industrial, AI-driven robotics company, there’s no better place to scale than in the heart of Houston.”

Persona AI’s new development center will be located in the suite utilized by the Ion Prototyping Lab, managed by TXRX Labs. The IPL will transition its operations to the expanded TXRX facility in the East End Maker Hub, which will allow the lab to grow its team and meet increased demand.

At the start of the year, Persona AI closed $25 million in pre-seed funding. Earlier this month, the company announced a memorandum of understanding with HD Korea Shipbuilding & Offshore Engineering, HD Hyundai Robotic, and Korean manufacturing firm Vazil Company to create and deploy humanoid robots for complex welding tasks in shipyards.

The project will deliver prototype humanoids by the end of 2026, with field testing and full commercial deployment scheduled to begin in 2027.

"As heavy industry faces growing labor constraints—especially in high-risk trades like welding—the need for rugged, autonomous humanoid robots is more urgent than ever,” Radford added in a separate statement. “This partnership with HD Hyundai and Vazil is more than symbolic—deploying to the shipyard is one of the largest real-world proving grounds for Persona's tough, humanoid robots.”

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