It might not be surprising to discover that the energy capital of the world is a hub for energy startups. Getty Images

If you thought Houston's wildcatter days were exciting, just you wait. Houston has an emerging ecosystem of tech startups across industries — from facial recognition devices used at event check in to a drone controller that mimics movement in space.

A somewhat obvious space for Houston entrepreneurs is oil and gas. While the energy industry might have a reputation of being slow to adapt new technologies, these five Houston startups are developing the future of the industry — one device at a time.

Future Sight AR

Lori-Lee Emshey's Future Sight AR is revolutionizing antiquated construction tools using augmented reality. Courtesy of Future Sight AR

Working on an oil and gas construction site is like constructing a really large puzzle — one that, if constructed incorrectly, could have dangerous and costly consequences. On her first job in the industry, Lori-Lee Emshey was required to move through the site with a pen and a clipboard to mark down any issues or problems, only to later log that information into a computer. It was a slow process, and she felt frustrated by that.

"I was really shocked at how much work they were doing with such little technology," Emshey says. "I thought, 'there's so much room for innovation here.'"

She created Future Sight AR that uses artificial reality technologies on a smart device so that technicians can instantly see instructions and solutions for the hardware they are constructing on the site. Read more about Future Sight AR here.

Nesh

Nesh's digital assistant technology wants to make industry information more easily accessible for energy professionals. Photo courtesy of Thomas Miller/Breitling Energy

Access to information is endless in the digital age, but Sidd Gupta wanted to create a digital assistant that specifically focused on the energy industry. Nesh is an information bot that users can chat questions to. Think: Siri or Alexa, but with an engineering degree.

"We created Nesh as something super-simple to use," Gupta says. "There's no learning curve, no technical knowledge required, you just need to speak plain English."

Nesh has the potential to change productivity and hiring requirements in various energy companies. Read more about Nesh here.

Cemvita Factory

The Karimi siblings have created a way to synthetically convert CO2 into glucose, and they are targeting the energy and aerospace industries for their technology. Courtesy of Cemvita Factory

Energy companies are getting more and more pressure to create a sustainable solution for the carbon dioxide refineries produce on a daily basis. Houston-based Cemvita Factory has a solution. The company has a patented technology that can convert CO2 into glucose — just like plants do in the photosynthesis process.

"We go to these companies and say, 'What do you want to convert CO2 into?,'" Moji Karimi, co-founder of Cemvita, says. "Then, we do a quick pilot in six months in our lab, and we show them the metrics. They decide if they want to scale it up."

The company also has big plans for making an impact on the aerospace industry too. Read more about Cemvita here.

NatGasHub.com

Jay Bhatty looked at how pipeline data reached traders and thought of a better way. Getty Images

Information around natural gas pipelines — such as whether a pipeline has capacity issues that could trigger a spike in prices — has, for years, been scattered across the web. Now, Houston-based NatGasHub.com aggregates pipeline data from dozens upon dozens of websites.

Jay Bhatty, a veteran of the natural-gas-trading business, founded the Houston-based NatGasHub.com platform, which runs on cloud-based software, launched in late 2017. The company is already profitable and hasn't taken any outside funding. Read more about NatGasHub.com here.

Arundo Analytics

This growing Houston company is providing industrial industries with smart analytics. Courtesy of Arundo

While information can be slow and siloed between energy companies, energy professionals come across the same problem within their own organization. Arundo Analytics is developing software to help connect the dots within an energy company's operations.

Stuart Morstead, co-founder and chief operating officer of Arundo, says that most industrial companies that encounter issues with operations such as equipment maintenance "lack the data science and software capabilities to drive value from insights into their daily operations." Read more about Arundo Analytics here.

These energy startup leaders are the reason Houston will keep its "energy capital of the world" title. Courtesy images

3 Houston energy innovators to know this week

Who's Who

Houston's known as the energy capital of the world, but it won't stay that way if the city as a whole doesn't work toward innovation. These three professionals started their own companies to improve efficiency and promote ingenuity in their fields. From drones and AI to quicker pipeline data access, this week's three innovators to know are the future of the energy industry.

Lori-Lee Emshey, co-founder of Future Sight AR

Courtesy of Future Sight AR

Growing up the daughter of an oil and gas professional and traveling the world, Lori-Lee Emshey studied journalism and didn't necessarily intend to go into the family business, so to speak. However, that's where she ended up. She was surrounded by innovation and technology in New York working at The Daily Beast, but when she got her first job on an energy construction site, she returned to the antiquated process of pen and paper. The wheels started turning for her.

Future Sight AR is a company that is working on smart device technology for large oil and gas pants, where workers can see — in real time — how to fix a problem or log an issue. The company has done a proof of concept and is looking to do three pilot program as well as a round of funding in early 2019.

Jay Bhatty, CEO and founder of NatGasHub.com

Courtesy of Jay Bhatty

As vice president of energy trading at JPMorgan Chase & Co.'s investment-banking arm, Jay Bhatty felt frustrated by the sluggish nature of natural-gas-trading activities, and he decided to something about it. He founded Houston-based NatGasHub.com in October 2016 to streamline the traditionally complicated processes of moving natural gas from one point to another, and of unearthing data about natural gas pipelines.

After only a little over two years in business, NatGasHub.com already is profitable — a rare feat in the startup world.

Dyan Gibbens, founder and CEO of Trumbull Unmanned

Courtesy of Alice

Dyan Gibbens maybe have thought her true purpose was serving in the military, but it's lately it's leading her Houston-based drone technology company, Trumbull Unmanned, to great success. While in her doctorate program, the Air Force veteran started the idea using unmanned vehicles to patrol refineries and plants in the energy and utilities sector. The company took flight — her first clients were Chevron and ExxonMobil.

Gibbens juggles motherhood and engineering — among other responsibilities — as her company grows and technology evolves.


Jay Bhatty looked at how pipeline data reached traders and thought of a better way. Getty Images

Growing Houston company makes pipeline data more accessible for natural gas trading

Digital upgrade

In the energy capital of the world, Houston entrepreneur Jay Bhatty has established a rapidly growing technology hub for the natural gas industry.

Bhatty, a veteran of the natural-gas-trading business, founded Houston-based NatGasHub.com in October 2016 to streamline the traditionally complicated processes of moving natural gas from one point to another, and of unearthing data about natural gas pipelines. After only a little over two years in business, NatGasHub.com already is profitable — a rare feat in the startup world.

The NatGasHub.com platform, which runs on cloud-based software, launched in late 2017. The startup participated in the final accelerator class of the Houston Technology Center; the accelerator program shut down in early 2018.

Bhatty hatched the idea for NatGasHub.com while he was vice president of energy trading at JPMorgan Chase & Co.'s investment-banking arm, where for more than eight years he felt frustrated by the sluggish nature of natural-gas-trading activities.

First off, data about natural gas pipelines — such as whether a pipeline has capacity issues that could trigger a spike in prices — has, for years, been scattered across the web. Now, NatGasHub.com aggregates pipeline data from dozens upon dozens of websites.

Secondly, transferring natural gas from Point A to Point B has historically involved the tedious task of manually typing a "nomination" to enable the sale of natural gas. NatGasHub.com automates that job, freeing up workers' time so they can tackle meatier projects.

Bhatty compares the now-streamlined nomination process to buying an airline ticket on Expedia or booking a hotel room on Hotels.com. Like those travel websites, NatGasHub.com also serves as a one-stop shop, only in this case it offers a single dashboard for selling natural gas. Until NatGasHub.com came along, U.S. companies had relied on cadres of employees to enter natural gas nominations by hand into about 100 gas pipeline websites, and to track gas flow around the clock via spreadsheets and phone calls, Bhatty says.

In a nutshell, NatGasHub.com serves as both a data supplier and a logistics provider for the natural gas industry.

"Software automation has led to reduced costs for our clients," Bhatty says.

As of early December 2018, NatGasHub.com's customer roster featured 32 companies. Bhatty declines to identify the startup's clients, but he says they're well-known names in energy circles. Bhatty says energy producers, utilities, banks, and hedge funds are among the types of clients that benefit from NatGasHub.com.

"We're adding customers at a pretty fast rate," Bhatty says. "We're definitely in growth mode right now."

NatGasHub.com also is adding revenue at a pretty fast rate. From October 2017 to October 2018, revenue soared by 300 percent, while profit skyrocketed by 5,500 percent, according to Bhatty.

NatGasHub.com has accomplished all of that without taking one penny from outside investors, Bhatty says.

The energy industry has taken notice of NatGasHub.com's success. In August, Energy CIO Insights named it one of North America's 10 best energy technology startups for 2018.

Today, NatGasHub.com employs 18 people in Houston. Bhatty envisions the workforce growing to 30 to 35 employees by the end of 2019. Planned expansions into other segments of the energy industry, such as crude oil, and into the Canadian market could bump up that projection. Currently, NatGasHub.com operates only in the U.S.

Among the kinds of workers NatGasHub.com will be hiring over the next year are software programmers, database administrators, and sales representatives.

"It's hard to find any kind of qualified people in this economy with the unemployment rate so low," Bhatty says. "But the good part has been that there's a lot of qualified people who want to work in a startup environment — they want to leave the bigger companies and try something different."

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NASA unveils Artemis III astronauts at Johnson Space Center in Houston

To the moon

NASA on Tuesday, June 9, revealed the crew for its Artemis III mission, the next step in the space agency's plan to eventually land astronauts on the moon.

The announcement came two months after Artemis II's record-breaking trip around the moon that surpassed the distance record of Apollo 13.

NASA's Randy Bresnik, Frank Rubio, Andre Douglas and the European Space Agency's Luca Parmitano won't fly to the moon or land on the surface. Instead, they’ll orbit Earth while practicing docking their Orion capsule with two lunar landers.

“To the Artemis III crew, we wish you Godspeed on the journey ahead,” said NASA administrator Jared Isaacman.

Elon Musk’s SpaceX and Jeff Bezos’ Blue Origin are racing to deliver the lunar landers. The two-week demo is targeted for 2027. Blue Origin suffered a recent setback when its massive rocket exploded during an engine-firing test on the launch pad in Florida, shaking nearby homes and illuminating the sky with an orange fireball.

NASA's Jeremy Parsons said the setback is a learning opportunity and that the space agency is confident Blue Origin's rocket will be ready in time.

NASA's Artemis program aims to return astronauts to the moon's surface for the first time since the 1970s. A recent revamp of the program announced by Isaacman aims to fast-track it similarly to the Apollo era, adding the upcoming spaceflight around Earth before eyeing a lunar landing in 2028.

“We are certainly humbled as a crew to be able to be your crew that executes this Artemis III mission in space,” said Bresnik, Artemis III commander.

Added Douglas, mission specialist: “My brain — it is going a mile a minute right now. But my heart, it is so warm. It is so full."

In May, NASA awarded hundreds of millions of dollars in contracts to four companies, including Blue Origin, to build landers, rovers and drones for a future moon base. Isaacman said the goal of the moon base is to lay the foundation for a Mars expedition.

Meta to bring $115 million AI data center training initiative to Houston

ai workforce

Meta and Associated Builders and Contractors have entered into a partnership to invest $115 million in training programs for the construction of AI data centers, with a portion of the project launching in Houston.

The companies announced June 8 that they would open America’s Workforce Academies at ABC chapter training centers in Houston; Indianapolis; Baton Rouge, Louisiana; and Columbus, Ohio.

The academies will offer career readiness and safety training, plus five weeks of hands-on education. Participants who complete the program will be granted a job offer from contractors working on Meta projects.

“The AI revolution is bringing change but also historic opportunities,” Dina Powell McCormick, Meta president and vice-chairman, said in a news release. “Skilled workers electrified rural America one pole at a time. They manned the factories that built the arsenal that won World War II. Now a new generation will pour the foundations and lay the fiber that secures American strength in this new age.”

Overall, the Meta and ABC aim for the academies to build a more sustainable pipeline of skilled construction workers and ensure safety and job readiness for the surging number of data center projects underway.

“This new program is an innovative talent solution that is a critical part of addressing the construction industry’s ongoing workforce shortage and creates an accelerated, new-entrant strategy for job seekers ... The sustained demand for data center construction technicians means the industry needs an all-of-the-above approach to address this shortage and grow the construction talent pool,” Michael Bellaman, ABC president and CEO, added in the release.

In Texas, Meta, the parent company of Facebook and Instagram, has launched or broken ground on data centers in El Paso, Fort Worth and Temple. The company announced in March that it planned to grow its El Paso Data center by 1 gigawatt, representing more than a $10 billion investment.

Apart from Meta, Texas has attracted data center development to power other giants like Google and Amazon in recent years. In turn, Texas has been predicted to become the biggest data center market. Commercial real estate services provider JLL reported this spring that the state could topple Northern Virginia as the world’s largest data-center market by 2030. Similarly, CBRE predicted that Houston's data center capacity could double by 2028. Read more here.

New Houston biotech co. lands $30M for pulmonary fibrosis drug

drug money

Most of us can claim a scar or two on our bodies. But when scarring develops inside the body, it’s known as a fibrotic disorder. A freshly launched Houston company, Oorja Bio Inc., is working on a treatment that can help to repair cells and reduce the damage wrought by the growth of fibrotic tissue in patients.

Late last month, Oorja Bio hit the scene with a pair of big announcements. Not only has the company raised a $30 million Series A thanks to founding investor California-based Westlake BioPartners, but it has also already paved the way for a Phase 2 study to take place this year.

Oorja Bio received Investigational New Drug (IND) clearance from the U.S. Food and Drug Administration (FDA), allowing the company to test its treatment in patients with idiopathic pulmonary fibrosis (IPF), a scarring of the lung tissue. IPF affects more than 150,000 adults in the United States and can result in a range of symptoms from shortness of breath to organ failure and death as it progresses.

Oorja Bio’s lead drug candidate, ORJ-001, was shown in a Phase 1 in-human trial to demonstrate “therapeutically relevant exposure and favorable tolerability” in 64 healthy adult volunteers in whom it was administered daily or weekly, according to a news release. Pre-clinical studies of ORJ-001 showed durable target tissue engagement and biomarker activity in bleomycin-induced lung fibrosis.

Administered subcutaneously, ORJ-001 is intended to improve and even restore function in cells that can reduce the signaling that causes IPF. It stops advancement of IPF and also allows for tissue repair. Currently available treatments for the disease can slow the development of IPF down, but do not address the declining lung function that’s inherent in its progression.

“The clinical and preclinical results from our studies to date give us confidence that ORJ-001 represents a novel treatment approach with the potential to repair and reverse fibrosis and modify disease progression in IPF,” Dr. Janethe Pena, CMO of Oorja Bio, said in the release.

“Our team is energized to deliver on our goal of redefining the future of fibrotic diseases, beginning with ORJ-001,” CEO and founder Sujay Kango added. “As we advance ORJ-001 in the clinic, we are embracing the paradigm shift in our biological understanding of IPF pathology that aligns with the central role of the alveolar epithelium. ORJ-001 was designed with this biology in mind and may provide, for the first time, a therapeutic intervention that repairs and reverses fibrosis and promotes disease modification.”

Most patients live only three to five years following their IPF diagnosis. Soon, ORJ-001 and Oorja Bio could give them a fighting chance.