Why this Hawaiian innovator took a bet on Houston for unique hydrogen pipeline technology

HOUSTON INNOVATORS PODCAST EPISODE 204

Patrick Sullivan of Oceanit joins the Houston Innovators Podcast to share the potential he sees for Houston's energy ecosystem to transition efficiently. Photo courtesy of Oceanit

On an island almost 4,000 miles away, a company is creating research-based tech innovation that's sending ripple effects across the Pacific Ocean to Houston's energy ecosystem.

While Oceanit, founded in 1985 by Patrick Sullivan, is based in Hawaii, a portion of its customer base is based right here in Houston.

“We are, indeed, in the middle of the sea, but we work around the world,” Sullivan, who serves as president and CEO of his company, says on the Houston Innovators Podcast. “What we do in Houston is interesting because we consider Houston the center of energy. And energy makes the world go around, and there’s just no two ways around it. Of course, there’s lots of transition going on, so it’s an exciting time to be doing energy.”

In fact, realizing how much business opportunity there is in Houston, Oceanit recently opened H2XCEL — short for “Hydrogen Accelerator” — locally, aiming to integrate hydrogen into the current energy infrastructure.

H2XCEL will be the only lab in the U.S. capable of testing hydrogen and methane mixtures at high temperatures and pressures. Its aim is to protect pipelines from hydrogen embrittlement — when small hydrogen molecules penetrate pipe walls and damage the metal, potentially causing cracks, leaks, and failures.

The facility acts as a demonstration opportunity for Oceanit to test and show how hydrogen could be transferred via existing infrastructure.

"We can test to failure right there in Houston," Sullivan says on the show. “We’re talking to all the pipeline companies about getting their steel pipe and running through all these tests to show how it’s going to perform with all these different mixtures."

“The idea is to get the community to see that when you integrate technology from different fields into the energy space, we can keep making progress,” he continues.

Hydrogen embrittlement prevention is just one piece of what Oceanit's team is working to find solutions for. Sullivan describes his company as a 'Mind to Market' approach to industry. His business model includes some venture capital backing, but he says he prefers to partner with customers directly, explaining that the type of technology Oceanit deploys takes time and customization. This corporate co-development, as he explains, is Oceanit's unique approach to disruption.

There are so many opportunities within the energy transition to innovate, as Sullivan says, and it's not just one thing that's going to move the needle. The transition will require many different types of tech.

"It’s going to take time," he says. "But if we start reducing carbon and the use of fossil fuel today, we buy time for the planet."

Sullivan shares more on his company's unique approach to innovation on the podcast. Listen to the interview here — or wherever you stream your podcasts — and subscribe for weekly episodes.

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Oceanit's lab, H2XCEL — short for “Hydrogen Accelerator” — aims to integrate hydrogen into the current energy infrastructure, a serious cost-saver for companies looking to make the energy transition. Photo via Getty Images

Hawaii-based tech company opens new lab in Houston to enhance hydrogen pipeline safety

HOU-DRYGEN

An innovative Hawaii-based technology company is saying aloha to Houston with the opening of a unique test laboratory that aims to increase hydrogen pipeline safety. It is the latest sign that Houston is at the forefront of the movement to hydrogen energy.

The lab, H2XCEL — short for “Hydrogen Accelerator” — aims to integrate hydrogen into the current energy infrastructure, a serious cost-saver for companies looking to make the energy transition. Oceanit, a Honolulu-based technology company, is behind the lab.

H2XCEL will be the only lab in the U.S. capable of testing hydrogen and methane mixtures at high temperatures and pressures. Its aim is to protect pipelines from hydrogen embrittlement — when small hydrogen molecules penetrate pipe walls and damage the metal, potentially causing cracks, leaks, and failures.

Photo courtesy of Oceanit

“The launch of this testing facility is a major milestone. It is the only lab of its kind in the U.S. and the work underway at H2XCEL will accelerate the transition toward a hydrogen-driven economy,” Patrick Sullivan, the CEO and founder of Oceanit, says in a news release. “We see a toolset emerging that will enable the U.S. to accelerate toward a low-carbon future.”

Houston was the obvious choice to launch the new lab, says Oceanit’s Direct of Marketing James Andrews.

“Houston is the energy capital of the world," Andrews explains. "Oceanit knew that if we wanted to make inroads with decarbonization technologies, we needed to be physically present there.”

H2XCEL uses Oceanit’s HydroPel pipeline nanotechnology, developed with the support of the U.S. Department of Energy. It is a surface treatment that protects metals, eliminating the need to build new pipelines using expensive, hydrogen-resistant metals. The estimated cost of building new hydrogen pipelines is approximately $4.65 million per mile, according to a press release from the company. In contrast, HydroPel can be applied to existing pipelines to prevent damage, and the cost to refurbish one mile of existing steel pipeline is less than 10 percent of the cost per mile for new pipeline construction.

One of the main objectives of the new Houston lab will be to test hydrogen-methane blends under varying conditions to determine how to use HydroPel safely. By enabling the energy sector to reduce its climate impact while continuing to provide energy using existing infrastructure, methane-hydrogen blends capitalize on hydrogen’s carbon-free energy potential and its positive impact on climate change.

“We want to create a situation where we can speed up energy transition,” says Andrews. “By blending it into a safer environment, we can make it attractive to bigger players.”

Oceanit already has a Houston presence where the team is focused on several other technologies related to hydrogen, including HeatX, a water-based technology for heat transfer surfaces in refineries, power plants, and more, as well as their HALO system, which utilizes directed energy to produce clean hydrogen wastewater and other waste byproducts produced in industrial businesses.

A recent report issued by Rice University’s Baker Institute for Public Policy about the hydrogen economy

in Texas insists that the Lone Star State is an ideal hub for hydrogen as an energy source. The report explains that with the state’s existing oil and gas infrastructure, Texas is the best spot to affordably develop hydrogen while managing economic challenges. The Houston region already produces and consumes a third of the nation’s hydrogen, according to the report, and has more than 50 percent of the country’s dedicated hydrogen pipelines.

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This article originally ran on EnergyCapital.

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2 Houston professors named as fellows for prestigious group of inventors

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The highest professional distinction awarded to academic inventors, the National Academy of Inventors, have elected two fellows from Rice University and the University of Houston for its 2024 class.

Edward Ratner, computer information systems lecturer in the Department of Information Science Technology at the University of Houston’s Cullen College of Engineering, and Omid Veiseh, bioengineer at Rice University and director of the Biotech Launch Pad, were two of the 170 honorees representing 39 states and 12 countries.

The 2024 class will be honored and presented their medals on June 26 in Atlanta, Georgia by a senior official of the U.S. Patent and Trademark Office.

Ratner’s research includes artificial intelligence, machine learning, image analysis, video compression and video streaming, and has led to 40 patents currently. His inventions on adaptive video streaming assists the technology used today for streaming video over the internet. Ratner becomes the 40th UH faculty who is either a fellow or senior member of the NAI.

“Ed Ratner’s recognition as a Fellow of the NAI is a testament to his exceptional creativity, dedication and impact in advancing innovation,” Ramanan Krishnamoorti, vice president of energy and innovation at UH, says in a news release. “Here at the University of Houston, we take great pride in fostering a culture where visionary thinkers like Ed can thrive. This honor reflects not only his remarkable achievements but also the University’s commitment to shaping the future through groundbreaking research and invention.”

Veiseh is a current professor of bioengineering, a Cancer Prevention and Research Institute of Texas Scholar and faculty director of the Rice Biotech Launch Pad, which is a Houston-based accelerator that focuses on “expediting the translation of the university’s health and medical technology discoveries into cures,” according to a news release from Rice.

His research focuses on developing innovative treatments that involve combining synthetic biology, molecular engineering and advanced materials science. He also helped lead a $45 million project funded by the Advanced Research Projects Agency for Health (ARPA-H) to create implantable cancer monitoring and treatment devices.

“It is our mission to make sure that scientific and technological advancements are translated from laboratory discoveries into life-saving cures and products that have a real and enduring impact on patients’ lives,” said Veiseh in a news release. “I am honored to be recognized by this distinguished award and would like to thank my collaborators at Rice and elsewhere for working toward this shared goal of improving lives through better, more effective treatments.”

In

2023, UH’s Vincent Donnelly, Moores professor of Chemical and Biomolecular Engineering, and Christine Ehlig-Economides, Hugh Roy and Lillie Cranz Cullen Distinguished university chair of Petroleum Engineering, all received the Fellows honor. Other 2024 Texas-based fellows include Malcom Brenner from Baylor College of Medicine, Maria Croyle from The University of Texas at Austin, Jaime Grunlan from Texas A&M University, and more.

FDA clears health startup, tech co. enters Houston market and more top innovation articles from the week

trending news

Editor's note:Let's roundup the most-read Houston innovation news from the week. Trending Houston tech and startup articles from InnovationMap and its daily newsletter included the last innovation events roundup of the year, TMC wins a prestigious award, a startup's acquisition, and more.

Founder bets on Houston to grow innovative corrosion detection technology

Anwar Sadek of Corrolytics joins the Houston Innovators Podcast to discuss his company's growth and move to Houston. Photo courtesy

Despite having success in taking his technology from lab to commercialization, Anwar Sadek made the strategic decision to move his company, Corrolytics, from where it was founded in Ohio to Houston.

"Houston is the energy capital of the world. For the technology we are developing, it is the most strategic move for us to be in this ecosystem and in this city where all the energy companies are, where all the investors in the energy space are — and things are moving really fast in Houston in terms of energy transition and developing the current infrastructure," Sadek, co-founder and CEO of Corrolytics, says on the Houston Innovators Podcast.

And as big as a move as it was, it was worth it, Sadek says.

"It's been only a year that we've been here, but we've made the most developments, the most outreach to clients in this one last year."

FDA greenlights Houston surgery robotics company's unique technology

EndoQuest Robotics secured an Investigational Device Exemption from the FDA for its clinical study. Photo via Getty Images

A Houston surgical robotics company has gotten a Investigational Device Exemption from the FDA to go forward with human trials.

This news allows EndoQuest Robotics to begin its Prospective Assessment of a Robotic-Assisted Device in Gastrointestinal Medicine (PARADIGM) study, which will be conducted at leading United States health care facilities, including Brigham and Women’s Hospital (Boston), Mayo Clinic (Scottsdale), Cleveland Clinic (Cleveland), AdventHealth (Orlando), and HCA Healthcare (Houston). The study will include surgeries on 50 subjects, who will hopefully begin to enroll in January.

“The foundational thesis is we're trying to make sure that the world's largest medical center is also the world's largest med tech innovation center,” Eduardo Fonseca, interim CEO of EndoQuest Robotics, tells InnovationMap.

Canadian construction co. enters Houston market amid Texas takeover

Mercator.ai, founded in 2020 by Chloe Smith and Hogan Lee, expanded in Austin earlier this year. The company has now established a presence in Houston and plans to break into the Dallas-Fort Worth and San Antonio markets next. Photo via mercator.ai

Construction tech startup Mercator.ai has entered the Houston area’s $22.3 billion commercial construction market with its AI-powered business development platform.

Calgary, Canada-based Mercator.ai says that although 80 percent of construction projects are secured through relationships, business development specialists spend about two-thirds of their time hunting for construction leads. The startup says its business development platform flips that script for the Houston area, Texas’ biggest commercial construction market.

“Houston’s construction community is known for innovation and relationship-building,” Chloe Smith, co-founder and CEO of Mercator.ai, says in a news release.

Houston AI data firm partners on Alzheimer’s clinical trial

The trial, known as ADO2, will utilize OmniScience's recently developed product, Vivo, which uses generative AI to centralize and analyze clinical trial data in real time. Photo omniscience.bio

Houston data science firm OmniScience announced this month that it has partnered with Florida-based INmune Bio (NASDAQ: INMB) on a global Phase 2 Alzheimer’s disease clinical trial.

The trial, known as ADO2, will utilize OmniScience's recently developed product, Vivo, which uses generative AI to centralize and analyze clinical trial data in real time, according to a release. The two companies also partnered during Vivo’s development and recent roll-out.

"OmniScience and INmune Bio share a vision to transform how clinical trial teams engage with data – transforming data into knowledge in real time and informing decisions that increase the probability of success,” Angela Holmes, CEO of OmniScience, says in a statement. “As our partnership moves forward, we’re gaining further insights from the INmune team that we can integrate into Vivo’s roadmap. We look forward to our continued mutual success.”

UH researchers secure $3.3M for AI-powered subsurface sensing system to revolutionize underground power lines

Researchers have secured $3.3 million in funding to develop an AI-powered subsurface sensing system aimed at improving the safety and efficiency of underground power line installation. Photo by Matthew Henry on Unsplash

Researchers from the University of Houston — along with a Hawaiian company — have received $3.3 million in funding to explore artificial intelligence-backed subsurface sensing system for safe and efficient underground power line installation.

Houston's power lines are above ground, but studies show underground power is more reliable. Installing underground power lines is costly and disruptive, but the U.S. Department of Energy, in an effort to find a solution, has put $34 million into its new GOPHURRS program, which stands for Grid Overhaul with Proactive, High-speed Undergrounding for Reliability, Resilience, and Security. The funding has been distributed across 12 projects in 11 states.

“Modernizing our nation’s power grid is essential to building a clean energy future that lowers energy costs for working Americans and strengthens our national security,” U.S. Secretary of Energy Jennifer M. Granholm says in a DOE press release.

2024's 5 most-read startup feature stories

year in review

Editor's note: As the year comes to a close, InnovationMap is looking back at the year's top stories in Houston innovation. This past year, InnovationMap featured profiles on dozens of these Houston startups — from health tech to startups fostering community. Here are five Houston startup features that stood out to readers this year — be sure to click through to read the full story.

Houston immuno-oncology company reaches next FDA milestone, heads to phase 2 trial

A Houston company with a promising immuno-oncology is one step closer to delivering its cancer-fighting drug to patients who need it. Photo via Getty Images

A Houston immuno-oncology company has recently made major headway with the FDA, including both a fast track and an orphan drug designation. It will soon start a phase 2 trial of its promising cancer fighting innovation.

Diakonos Oncology was born in 2016, the brainchild of Baylor researchers already hard at work in the realm of dendritic cell vaccines. Drs. Will Decker, Matt Halpert, and Vanaja Konduri partnered with Dan Faust, a Houston businessman and pharmacist, to bring their treatment to the public, says COO Jay Hartenbach.

The name Diakonos means “deacon or servant in Greek,” he explains. “A lot of companies end up focusing on treating a specific disease or cancer and what you end up having is a significant amount of potential but with a lot of tradeoffs and downsides. And so our goal is we need to eliminate the cancer but we can't harm or dramatically malign the patient in doing so.” Continue reading.

Houston founder taps into AI tech to create game-changing healthy eating platform

A Better Meal — a new app from a Houston founder — gives you all the tools you need to make healthier food choices. Photo via abettermeal.com

After many years of living to eat, a large swath of American society is now facilitating a seismic shift to the healthier alternative, eating to live.

But here’s the rub: eating healthy is confusing, time consuming and, unfortunately, oftentimes pricey.

So, anyone that can come in and cut through the healthy eating machine can carve out a necessary niche in the marketplace.

Enter Houstonian Mark Semmelbeck, founder and CEO of A Better Meal, a platform created to help busy families plan healthy meals easier and to make gradual improvements to their health and well-being.

“My vision is to use rapidly expanding AI technology together with the knowledge and wisdom of an active community to take the stress out of meal planning and improving nutrition,” says Semmelbeck, a seasoned oil and gas executive with over 30 years of experience in founding companies. “While developing the technology for the app, my daughter gave me two beautiful grandkids who both have significant food allergies. Combine that with the fact I now have five cardiac stents and the significance of eating well while paying attention to the details has only grown in importance.” Continue reading.

Hardtech startup moves into Houston area with new Conroe facility, eyes tests in space

FluxWorks, a hardtech startup, opened its new home-base in Conroe, Texas. Photo courtesy FluxWorks

FluxWorks, a hardtech startup, recently opened its new base of operations in Workhub Developments’ Conroe location.

Founded in College Station by CEO Bryton Praslicka, FluxWorks specializes in making contactless magnetic gears for use in extreme conditions. At 9,000 square feet, the new Conroe facility is a result of discussions with Governor Greg Abbott's office and the Greater Houston Partnership, who introduced the company’s leadership to the Conroe Economic Development Council, encouraging their move, Praslicka tells InnovationMap.

“The pieces of the puzzle were all there, and with the support of the local, state, and federal government, we were thrilled to move to Conroe,” Paslicka says. Continue reading.

Houston startup secures IBM partnership for AI-backed consumer tech

IBM and Boxes recently partnered to integrate the IBM watsonx Assistant into Boxes devices, providing a way for consumer packaged brands to find out more than ever about what its customers like and want. Photo courtesy of Boxes

With the help of a new conversational artificial intelligence platform, a Houston startup is ready to let brands get up close and personal with consumers while minimizing waste.

IBM and Boxes recently partnered to integrate the IBM watsonx Assistant into Boxes devices, providing a way for consumer packaged brands to find out more than ever about what its customers like and want.

The Boxes device, about the size of a 40-inch television screen, dispenses products to consumers in a modern and sustainable spin on the old-fashioned large vending machine.

CEO Fernando Machin Gojdycz learned that business from his entrepreneur father, Carlos Daniel Machin, while growing up in Uruguay.

“That’s where my passion comes from — him,” Gojdycz says of his father. In 2016, Gojdycz founded Boxes in Uruguay with some engineer friends. Continue reading.

Houston founder aims to help find your purpose, make strategic connections over a cup of coffee

Cup of Joey has expanded across Houston to help make valuable connections to Houston entrepreneurs. Photo courtesy of Cup of Joey

What is your purpose in life? One Houstonian is asking that question of his fellow entrepreneurs all across town.

Joey Sanchez founded Cup of Joey, a weekly meetup opportunity for innovators, business leaders, and the whole Houston community. The events are a place not only to share a cup of coffee but also their very own mission in life.

It all started in 2021 at the Houston Tech Rodeo, an initiative from Houston Exponential, where Sanchez worked as a director of corporate engagement. Texas had just opened social distancing in public events since the beginning of the COVID-19 pandemic, and Sanchez was finding ways to reconnect the Houston community.

‘We thought what better way than over a cup of coffee?” Since then, Sanchez has connected thousands of people based on purpose every Friday for the past three and a half years. Continue reading.

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