3 Houston innovators to know this week

who's who

This week's roundup of Houston innovators includes Richard Seline of the Resilience Innovation Hub, Deanna Zhang of Tudor, Pickering, and Holt, and Brad Hauser of Soliton. Courtesy photos

Editor's note: In the week's roundup of Houston innovators to know, I'm introducing you to three innovators across industries recently making headlines — from resilience technology to energy innovation.

Richard Seline, co-founder at the Houston-based Resilience Innovation Hub Collaboratory

Richard Seline of Houston-based Resilience Innovation Hub joins the Houston Innovators Podcast to discuss how it's time for the world to see Houston as the resilient city it is. Photo courtesy of ResilientH20

Richard Seline says on this week's episode of the Houston Innovators Podcast, that people are exhausted and these feelings are festering into frustration and anger — and calling for change. The things that need to change, Seline says, includes growing investment and innovation in resilience solutions.

"As a fourth generation Houstonian, it's just so hard to see my hometown get hit persistently with a lot of these weather and other type of disasters," Seline says.

These unprecedented disasters — which are of course occurring beyond Houston and Texas — have also sparked a growing interest in change for insurance companies that have lost a trillion dollars on the United States Gulf Coast over the past seven years, Seline says. Something has got to change regarding preparation and damage mitigation. Read more and stream the podcast.

Deanna Zhang, director of energy technology at Houston-based Tudor, Pickering, Holt & Co.

Deanna Zhang of Tudor, Pickering, Holt & Co. writes a response to the energy crisis that occured in Texas in February. Photo courtesy of TPH

Deanna Zhang specializes in energy tech, and what she witnessed from February's winter weather was basically an epic fail caused by a myriad of issues.

"But it's oversimplifying to say that the only solution to preventing another situation like this is continued or increased reliance on the oil and gas industry," she writes in a guest article for InnovationMap. "What last week ultimately demonstrated was the multitude of technology solutions that needs to scale up to provide us with the best energy reliability and availability." Read more.

Brad Hauser, CEO of Soliton

Houston-based Soliton can use its audio pulse technology to erase scars, cellulite, and tattoos. Photo courtesy of Soliton

A Houston company has created a technology that uses sound to make changes in human skin tissue. Soliton, led by Brad Hauser, is using audio pulses to make waves in the med-aesthetic industry. The company, which is licensed from the University of Texas on behalf of MD Anderson, announced that it had received FDA approval earlier this month for its novel and proprietary technology that can reduce the appearance of cellulite.

"The original indication was tattoo removal," Hauser says. "The sound wave can increase in speed whenever it hits a stiffer or denser material. And tattoo ink is denser, stiffer than the surrounding dermis. That allows a shearing effect of the sound wave to disrupt that tattoo ink and help clear tattoos."

According to Hauser, the team then turned to a second application for the technology in the short-term improvement in the appearance of cellulite. With the use of the technology, patients can undergo a relatively pain-free, 40- to 60-minute non-invasive session with no recovery time. Read more.

What winter storm Uri ultimately demonstrated was the multitude of technology solutions that needs to scale up to provide us with the best energy reliability and availability. Photo by Lynn in Midtown via CultureMap

Houston expert: Winter storm Uri's devastation should be a reminder to prioritize innovative energy solutions

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Texas has landed itself in the middle of a fierce debate following what's been considered one of the worst winter storm in recent history for the state.

Uri wreaked havoc as it rolled through regions that were wholly unprepared for the sudden temperature drops, single digit wind chills, and unusual precipitation (e.g. thundersnow in Galveston). Rolling power outages and water shortages affected more than 4.5 million Texans. Businesses like grocery stores and restaurants — unable to wash food or sanitize equipment or even turn on the lights, —closed throughout the ordeal, leaving many families without food, water, or power.

For most, this was an unprecedented experience. The majority of catastrophes in Texas are in the form of warm weather events like floods, hurricanes, or tornadoes, which means that even if power is lost, freezing is rarely an issue. Uri turned this upside down. ERCOT's failure to provide reliable energy for days on end led to families sleeping in devastatingly cold temperatures, further water shortage due to municipal water facilities failing, carbon monoxide deaths, disruption in vaccine rollouts, hospitals overrun with people needing to charge essential medical equipment, and much more. Uri highlighted in harrowing detail the domino effect that energy (and lack thereof) has on everything around it.

A single source of ERCOT's failure is hard to pinpoint. The cold led to production shut-ins, exacerbating the existing natural gas supply shortage and resulted in the RRC prioritizing "direct-to-consumer" natural gas delivery (i.e. to residences, hospitals, schools, etc.) over natural gas for the grid. Iced-over gas lines disrupted this flow even further. Freezing temperatures shut off some wind turbines and solar panels (if they were not already covered in snow). Coal and nuclear plants in Texas also shut down due to frozen instruments and equipment.

Thrown into sharp relief was the importance of consumer access to natural gas and other fossil fuels like propane. Most homes that had completely electrified (including my own) were ill-prepared to heat their homes without access to the grid or backup generators. Residential and community solar did little to alleviate this problem in many cases as lower technology configurations either froze, were not able to capture enough energy from a low-light environment, or were covered in snow. Having access to gas for heating or a propane stove was a lifeline for most folks.

But it's oversimplifying to say that the only solution to preventing another situation like this is continued or increased reliance on the oil and gas industry.

What last week ultimately demonstrated was the multitude of technology solutions that needs to scale up to provide us with the best energy reliability and availability.

It wasn't enough for our grid to have five potential generation sources – they all failed in different ways. But what if we incorporated more geothermal, which is more cold-weather resistant? What if we upgraded our solar panels to all have trackers or heating elements to prevent snow accumulation? What if our grid had access to larger scale energy storage? What if consumers had more access to off-grid distributed energy systems like generators, residential solar, geothermal pumps, or even just really large home batteries? What if we had predictive solutions that were able to detect when the non-winterized equipment would fail, days before they did? What if we could generate power from fossil fuels without dangerous emissions like carbon monoxide?

All of these technologies and more are being created and developed in our energy innovation ecosystem today, and many in Houston. What we're building towards is diversity of our energy system — but not just diversity of source — which is often the focus – but diversity of energy transportation, energy delivery, and energy consumption. Energy choice is about being able to, as a consumer, have a variety of options available to you such that in extenuating circumstances like winter storms or other catastrophes, there is no need to depend on any single configuration.

In a state like Texas, which is not only the largest oil and gas producer but also the largest wind energy producer and soon to be home to the largest solar project in the US, innovation should and will happen across all energy types and systems. Uri can teach us about the importance of the word all and how critical it is to encourage startups and technology development to develop stronger energy choice. Texas is the perfect home for all of this — and our state's rather embarrassing failure around Uri should be exactly the kind of reminder we need to keep encouraging this paradigm.

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Deeana Zhang is the director of energy technology at Houston-based Tudor, Pickering, Holt & Co.

This week's roundup of Houston innovators includes Deanna Zhang of Tudor, Pickering, & Holt Co., Sarma Velamuri of Luminare, and Amy Chronis of Deloitte. Courtesy photos

3 Houston innovators to know this week

who's who

Editor's note: In the week's roundup of Houston innovators to know, I'm introducing you to three innovators recently making headlines — from health tech founders to the new GHP chair.

Deeana Zhang, director of energy technology at Tudor, Pickering, Holt & Co.

Deanna Zhang of Tudor, Pickering, Holt & Co. joined the Houston Innovators Podcast to discuss 2020's effect on the energy transition — and what that meant for startups. Photo courtesy of TPH

Deanna Zhang looks closely at the energy innovation market and, well, last year was extremely enlightening about the energy industry and where tech is taking it. She joined the Houston Innovators Podcast last week to discuss some of the 2020 trends and observations she had — and what that means for 2021.

"The energy transition saw a huge uptick in 2020 — and there's a lot of implications of that from what pilots are getting commercialized and what companies are getting more funding," says Zhang. "All around it was hugely disruptive — but hugely beneficial I think to the energy transition." Click here to read more and stream the episode.

Dr. Sarma Velamuri, CEO of Luminare

A Houston health tech startup has launched a COVID-19 vaccine management tool. Image via luminaremed.com

As great as it was to be able to begin distributing the life-saving COVID-19 vaccine, the logistics of the two-dose process was a nightmare. Dr. Sarma Velamuri, CEO of Luminare, thought he could innovate a solution. His new platform, Innoculate (a mash-up of "innovate" and "inoculate"), enables organizations like public health departments, fire departments, school systems, and businesses to manage high-volume vaccination initiatives.

"Usually when you hear news of a new batch of vaccines headed your way, there is dread at the management and distribution overhead. Not anymore," Velamuri says in a release. "Innoculate will help streamline the vaccination process in the fight against COVID-19 and allow for hundreds of thousands of people to get vaccines easily." Click here to read more.

Amy Chronis, Greater Houston Partnership's 2021 chair and the Houston managing partner at Deloitte

Houston, we have a perception problem — but the Greater Houston Partnership's new chair, Amy Chronis, is here to fix it. Photo courtesy Deloitte/AlexandersPortraits.com

Hey Houston, it's time to speak up — a little louder for the people in the back. That's what Amy Chonis, 2021 chair for the Greater Houston Partnership, wants you to know, and that it's important for business leaders across the city to take the initiative about how great Houston is.

"We just don't brag enough about how much the city has changed and its trajectory," she tells InnovationMap.

While Houston has long been innovative in the health, space, and energy industries, it has a perception problem. Recently, Chronis addressed some of these concerns in her address at the GHP's 2021 Annual Meeting. She joined InnovationMap for an interview to zero in on how the business community can work to change this perception problem and continue to grow its innovation and tech community. Click here to read the Q&A.

Deanna Zhang of Tudor, Pickering, Holt & Co. joined the Houston Innovators Podcast to discuss 2020's effect on the energy transition — and what that meant for startups. Photo courtesy of TPH

Houston expert: 2020 was 'hugely disruptive — but hugely beneficial' for the energy transition

HOUSTON INNOVATORS PODCAST EPISODE 69

In 2020, the economy was hit with a double whammy of sorts — from a devastating pandemic to an unprecedented drop in oil prices — and that has meant that the energy transition is happening at a faster pace than ever.

Deeana Zhang, director of energy technology at Tudor, Pickering, Holt & Co., joined the Houston Innovators Podcast this week to discuss what she observed throughout the year as she worked closely with energy tech businesses.

"Because it was such a disruptive year, everyone — from the commercial and business side to the consumer side — has rethought how they are using and thinking about energy," she says on the show. "It was the first time that you saw such a mass disruption of energy demand, and that rolls through the entire ecosystem."

The effect touched all four corners of the industry in some way, and it forced all major energy players to be more intentional with their business strategy — especially when it comes to the role they play within the energy transition.

"The energy transition saw a huge uptick in 2020 — and there's a lot of implications of that from what pilots are getting commercialized and what companies are getting more funding," says Zhang. "All around it was hugely disruptive — but hugely beneficial I think to the energy transition."

Environmental, social and corporate governance, which has been growing in importance to investors and company leadership for several years now, also got a spur from 2020. ESG has been propelled by activism and consumer choice, Zhang says, but now investors are now forced to be more cognizant than ever.

"What's the investor responsibility to society as a whole? It's going beyond economics — what's your social and environmental responsibility? I think a lot of that expansion of responsibility is what's driving ESG," she says. "That's going to trickle down corporations and companies as they think about what is their expanded responsibility."

Zhang, who works closely with energy startups, also observed a profound effect when it came to capital and new business.

"A lot of companies say numbers go down in 2020, but the exceptions to that were companies that had a strong energy transition angle. Those companies were able to reposition themselves to ... counteract what was going on in the market in general," Zhang says. "From a capital raising standpoint, it was also really challenging. A lot of funds put a hold on investing in new companies and even some to their existing portfolio."

Investment came back toward the second half of the year, but there was a new level of caution, she says, and this is something startups saw happening across the country.

Zhang discusses more about what she saw happen last year for energy technology — as well as what that means for 2021 — on the episode. Listen to the full interview below — or wherever you stream your podcasts — and subscribe for weekly episodes.

From fossil fuels to clean and sustainable energy, here's what experts postulate the industry will look like in 2050. Natalie Harms/InnovationMap

Overheard: Experts weigh in on what the energy industry will look like in 2050 at Houston summit

Crystal ball

There are a lot of things up in the air within the energy industry when you look at the next 40 years — clean energy, regulation regarding fossil fuels, carbon footprint, and so much more.

At the Society of Petroleum Engineers' inaugural SPE Dot Energy Leadership Summit, the big question was what does 2050 look like for the industry. Tasked with the discussion were three energy leaders — Deanna Zhang, energy tech investment banking associate at TudorPickering Holt & Co., Lees Rodionov, vice president of Global Stewardship at Schlumberger, and David R. Hall, managing director of Hall Labs — on a panel moderated by Gabriella Rowe, CEO of Station Houston.

The panel, which took place on August 15 at MATCH, discussed all the variables and what their potential theories are for how time will change oil and gas. Of course, no one knows for sure. If they did, they wouldn't be sharing it, would they?

"It's very hard I think to capture all the things that will play out by 2050, and honestly, if I knew with any amount of certainty what would happen, I wouldn't be talking about it in public," Zhang says. "I'd be in a basement somewhere, making a company that would make a trillion dollars."

Fair enough. Here are some other overheard quotes from the discussion in case you missed it.

“I think we’ll face the fact that we’ve got to be totally clean and solve the emissions problem and do a complete full cycle. It’ll mean lots of innovation, but I certainly see the capability to get it done.”

— David R. Hall, managing director of Hall Labs.

“When it comes to bridging the efficiency debate and the green and clean debate, that will be something that by 2050 we will have bridged.”

— Deanna Zhang, energy tech investment banking associate at Tudor Pickering Holt & Co. Currently, she says the industry is split. "Right now we are trying to optimize for two objectives. The industry is divided."

“I think that one of the challenges actually is that it’s an idea of ‘us and them,’ and energy is a ‘we.’ Everyone has a role to play.”

— Lees Rodionov, vice president of Global Stewardship at Schlumberger. She emphasized that it's the energy industry — oil and gas is just one part, and it's where there's a lot of money. O&G does have opportunities for carbon neutral development.

“The opportunity for the oil and gas industry is to recognize the problems and then announce solutions itself. If the industry doesn’t, regulators will."

— Hall says on moving the industry toward a cleaner, greener future.

“In 50 years, we’ll find a way to survive, but it won’t be the same quality of life.”

— Zhang, when asked about the worst case scenario if the industry doesn't make big changes. She cites urbanization and a greater wealth gap as some things to expect.

"Stop saying 'oil and gas.' It's 'energy.'"

— Rodionov, when asked about bridging the gap between renewables and fossil fuels.

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Houston-based equitable entrepreneurship tech platform expands programs

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Fresh off of celebrating the dismissal of a lawsuit from former Trump Administration officials, Hello Alice is expanding some of its offerings for entrepreneurs.

In partnership with top organizations — like Progressive, Antares Capital, Wells Fargo, and FedEx — Hello Alice has added new offerings for its 2024 Boost Camp programs, a mix of skill-building support and grant opportunities.

“We are fortunate to continue working with great enterprise partners who share our commitment to supporting Main Street through crucial grants and mentorship programs,” Carolyn Rodz, CEO and co-founder of Hello Alice, says in a news release. “Small businesses drive our economy, yet often lack the necessary financing and resources. By partnering with major companies, Hello Alice is ensuring that small businesses have access to the tools and opportunities they need to thrive and create jobs in their local communities. Together, we are building a robust support system that fosters innovation and growth for small businesses across the country.”

This year's programs, according to Hello Alice, are as follows:

  • Antares Capital REACH Cohort: The Antares REACH Grant Program provides $20,000 grants to small businesses. Grant recipients will also take part in Antares’ Growth Track Boost Camp program, a digital community which will be home to monthly business coaching workshops, mentorship, networking, and more. Applications are open until June 28, and the program begins August 8.
  • Progressive Driving Small Business Forward Grant & Booster Camp Program: Progressive is dedicating $1 million to award 20 deserving businesses with a $50,000 grant each. Grant recipients will be invited to attend an exclusive 12-week virtual Boost Camp coaching program. Applications have closed for the program beginning September 10.
  • Wells Fargo: Wells Fargo is supporting four virtual accelerator programs over the next 18 months, designed to support up to 500 participants for each program, with a focus on business health and credit-building practices. Applications will be announced this summer for the program, which will begin in early fall.
  • FedEx: The FedEx Entrepreneur Fund supports entrepreneurs in the United States by providing them with the necessary funding, resources, and networks to enhance the success of their businesses, including the Boost Camp coaching program.
    • Applications will be announced this fall for the program, which will begin in the winter.

More information and application access is available online.

Last year's Boost programs benefitted 100 small businesses, according to Hello Alice, which reported that the 2023 Antares REACH Cohort resulted in 60 percent of participants seeing an increase in their Business Health Score and 93 percent felt better equipped to confront challenges and capitalize on opportunities. In the end, 85 percent of participants feeling more optimistic about their business growth prospects.

"Hello Alice is proud to partner with high-level enterprise companies to empower small businesses and foster their success," Natalie Diamond, vice president of business development at Hello Alice, adds. "Together, we are creating unparalleled opportunities for entrepreneurs to achieve brand success, drive financial fitness, and thrive in today's competitive market. Our joint endeavors not only offer access to capital and resources but also provide tailored guidance and mentorship, arming small business owners with the insights and support necessary to navigate challenges and seize growth opportunities.”

Houston company's sustainable oil product reaches milestone production capacity 5 years early

overachieving

Houston-based biotech company Cemvita has achieved a key production goal five years ahead of schedule.

Thanks to technology advancements, Cemvita is now capable of generating 500 barrels per day of sustainable oil from carbon waste at its first commercial plant. As a result, Cemvita has quadrupled output at the Houston plant. The company had planned to reach this milestone in 2029.

Cemvita, founded in 2017, says this achievement paves the way for increased production capacity, improved operational efficiency, and an elevated advantage in the sustainable oil market.

“What’s so amazing about synthetic biology is that humans are just scratching the surface of what’s possible,” says Moji Karimi, co-founder and CEO of Cemvita. “Our focus on the first principles has allowed us to design and create new biotech more cheaply and faster than ever before.”

The production achievement follows Cemvita’s recent breakthrough in development of a solvent-free extraction bioprocess.

In 2023, United Airlines agreed to buy up to one billion gallons of sustainable aviation fuel from Cemvita’s first full-scale plant over the course of 20 years.

Cemvita’s investors include the UAV Sustainable Flight Fund, an investment arm of Chicago-based United; Oxy Low Carbon Ventures, an investment arm of Houston-based energy company Occidental Petroleum; and Japanese equipment and machinery manufacturer Mitsubishi Heavy Industries.

Tech disruptions sparked by Texas co.'s update highlight the fragility of globally connected technology

Airlines, banks, hospitals and other risk-averse organizations around the world chose cybersecurity company CrowdStrike to protect their computer systems from hackers and data breaches.

But all it took was one faulty CrowdStrike software update to cause global disruptions Friday that grounded flights, knocked banks and media outlets offline, and disrupted hospitals, retailers and other services.

“This is a function of the very homogenous technology that goes into the backbone of all of our IT infrastructure,” said Gregory Falco, an assistant professor of engineering at Cornell University. “What really causes this mess is that we rely on very few companies, and everybody uses the same folks, so everyone goes down at the same time.”

The trouble with the update issued by CrowdStrike and affecting computers running Microsoft's Windows operating system was not a hacking incident or cyberattack, according to CrowdStrike, which apologized and said a fix was on the way.

But it wasn't an easy fix. It required “boots on the ground” to remediate, said Gartner analyst Eric Grenier.

“The fix is working, it’s just a very manual process and there’s no magic key to unlock it,” Grenier said. “I think that is probably what companies are struggling with the most here.”

While not everyone is a client of CrowdStrike and its platform known as Falcon, it is one of the leading cybersecurity providers, particularly in transportation, healthcare, banking and other sectors that have a lot at stake in keeping their computer systems working.

“They’re usually risk-averse organizations that don’t want something that’s crazy innovative, but that can work and also cover their butts when something goes wrong. That’s what CrowdStrike is,” Falco said. “And they’re looking around at their colleagues in other sectors and saying, ‘Oh, you know, this company also uses that, so I’m gonna need them, too.’”

Worrying about the fragility of a globally connected technology ecosystem is nothing new. It's what drove fears in the 1990s of a technical glitch that could cause chaos at the turn of the millennium.

“This is basically what we were all worried about with Y2K, except it’s actually happened this time,” wrote Australian cybersecurity consultant Troy Hunt on the social platform X.

Across the world Friday, affected computers were showing the “blue screen of death” — a sign that something went wrong with Microsoft's Windows operating system.

But what's different now is “that these companies are even more entrenched,” Falco said. "We like to think that we have a lot of players available. But at the end of the day, the biggest companies use all the same stuff.”

Founded in 2011 and publicly traded since 2019, CrowdStrike describes itself in its annual report to financial regulators as having “reinvented cybersecurity for the cloud era and transformed the way cybersecurity is delivered and experienced by customers.” It emphasizes its use of artificial intelligence in helping to keep pace with adversaries. It reported having 29,000 subscribing customers at the start of the year.

The Austin, Texas-based firm is one of the more visible cybersecurity companies in the world and spends heavily on marketing, including Super Bowl ads. At cybersecurity conferences, it's known for large booths displaying massive action-figure statues representing different state-sponsored hacking groups that CrowdStrike technology promises to defend against.

CrowdStrike CEO George Kurtz is among the most highly compensated in the world, recording more than $230 million in total compensation in the last three years. Kurtz is also a driver for a CrowdStrike-sponsored car racing team.

After his initial statement about the problem was criticized for lack of contrition, Kurtz apologized in a later social media post Friday and on NBC's “Today Show.”

“We understand the gravity of the situation and are deeply sorry for the inconvenience and disruption,” he said on X.

Richard Stiennon, a cybersecurity industry analyst, said this was a historic mistake by CrowdStrike.

“This is easily the worst faux pas, technical faux pas or glitch of any security software provider ever,” said Stiennon, who has tracked the cybersecurity industry for 24 years.

While the problem is an easy technical fix, he said, it’s impact could be long-lasting for some organizations because of the hands-on work needed to fix each affected computer. “It’s really, really difficult to touch millions of machines. And people are on vacation right now, so, you know, the CEO will be coming back from his trip to the Bahamas in a couple of weeks and he won’t be able to use his computers.”

Stiennon said he did not think the outage revealed a bigger problem with the cybersecurity industry or CrowdStrike as a company.

“The markets are going to forgive them, the customers are going to forgive them, and this will blow over,” he said.

Forrester analyst Allie Mellen credited CrowdStrike for clearly telling customers what they need to do to fix the problem. But to restore trust, she said there will need to be a deeper look at what occurred and what changes can be made to prevent it from happening again.

“A lot of this is likely to come down to the testing and software development process and the work that they’ve put into testing these kinds of updates before deployment,” Mellen said. “But until we see the complete retrospective, we won’t know for sure what the failure was.”

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