Photo by Adi Goldstein on Unsplash

As UTSI International celebrates its 40th anniversary, president and CEO Shaun Six reflects on the company's history, achievements, and exciting future.

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In March 1985, Dan Nagala and a few friends took a risk, leaving their full-time jobs to pursue their passion and start their own company.

They founded UTSI International amidst groundbreaking advancements in Industrial Control Systems and SCADA technology, revolutionizing remote operations for critical infrastructure. From the start, UTSI has been at the forefront of OT innovation and integration — a legacy we proudly carry forward today.

The legacy of Dan Nagala

Dan Nagala’s 50-plus-year career is too vast to cover every accomplishment, but if you’ve ever heard the phrase “Houston, we have a problem” in a movie, those screens in the control room and the logic causing the “blinky lights” to alert the operators, you’ve seen some of his work. Dan and his team ultimately paved the way for field communications to detect and communicate leaks on pipelines and give operators in remote locations situational awareness, expanding their ability to safely monitor and control their operations.

This capability was requested early on in the first pipeline control rooms, leading to UTSI’s first check-in 1985 (which I proudly have framed on my bookshelf). The protocols to communicate and do advanced calculations — which many would be tempted to call AI today — for the purpose of monitoring and control, was created from this group of enthusiasts who open sourced it and allowed it to proliferate, leading to over 80 percent of all critical infrastructure in the world now utilizing a variant thereof.

Given the novelty of the technology and the experience of UTSI, having implemented control systems and automation for pipelines in over 22 countries, Dan was asked to collaborate with industry experts, creating the first API leak detection and control room management standards for the American Petroleum Institute. These would later become regulation under PHMSA, DoT, and TSA, placing UTSI as the go-to experts in compliance in addition to their traditional expertise.

UTSI has delivered for the world’s largest infrastructure owners in multiple critical infrastructure sectors, like mining, water/wastewater, oil and gas, green energy, transportation authorities, etc. We have also done AI and cybersecurity, in addition to SCADA and ICS work for the DoD and DoE.

Strength in partners

I joined UTSI in 2022 as vice president, working under Dan, with the goal of gradually stepping into leadership. In 2023, I became CEO, president, and majority shareholder. While no one can truly fill Dan’s shoes alone, we’ve focused on strengthening our team, partnerships, and capabilities to continue UTSI’s legacy of excellence.

One of our first strategic partnerships was with Tory Tech, a leading API-compliant Control Room Management tool. UTSI has worked as integrators with Tory Tech for years and Dan worked as a CRM compliance advisor for them in the U.S. while they were setting up their headquarters in Houston. In 2024 we made it an official partnership, becoming a preferred integrator and focusing our team on training and development in the MaCRoM (Master Control Room Management) tool.

We've also made significant investments in our OT cybersecurity capabilities, expanding our team and partnering with industry leaders like Dennis Parker, Derrik Oates, Nozomi Networks, Fortinet, and Schneider Electric. These strategic moves ensure we deliver top-tier expertise, products, and solutions to better serve our customers.

Our partnership with ThreatGEN and the utilization of their AI-driven “AutoTableTop” tool not only utilizes our experience with TSA guidelines, but adds an element of reality that the traditional methods are lacking, making these engagements more interactive and beneficial for operators who are required to participate annually.

In 2024, UTSI also invested heavily in AI and Data Science by acquiring Houston-based AI company Pandata Tech and leveraging their Data-Quality-Methodology (DQM), Leak Geek, and time-series data science expertise to solve industry specific problems.

Moving up – in and around Houston

Building on our recent successes, we strategically relocated our office to the Netrality building (1301 Fannin St.), bringing us closer to clients and partners, while getting access to a Tier 3 Data Center with an uninterrupted 40-year power record.

Netrality is a SOC2-compliant facility with seven points of detection from the street to our server, including biometric screening. Our very own Roberto deLeon has architected our upgraded servers using the Purdue model as a basis of design while leveraging our relationship with Fortinet to standardize our hardware and software to the highest standards. We practice what we preach — every architecture, framework, and hardware recommendation we make is not just advised but actively implemented within our own operations.

Our investment in this space includes increasing our “SCADA R&D Lab” to play with toys from vendors, testing them out in our environment before we recommend and advise them to our clients and partners. Currently we’re working on LLMs for OT, building our own “DANN2.0” for use in-house. DANN is an homage to Dan Nagala (and, for the nerds, stands for Dan Artificial Neural Network), which we started in 2022 when I realized that knowledge capture is an industry wide epidemic and we need to be ready to integrate for our clients in a safe and local way at scale, in the OT environment.

Additionally, having come from a startup before joining UTSI, I wanted to get us closer to the heart of innovation, so we’ve added additional office space at The Cannon downtown. While there are many tech hubs around Houston, and we are proud to work with and partner with companies from Greentown Labs and the Ion, to name a few, we’ve found that The Cannon community is incredibly active and innovative, with experience in industrial use-cases.

Houston is set to become the Energy Transition capital, leading in hydrogen, carbon capture, and repurposing. With a 5:1 ratio of engineers leaving the industry and an average age over 60, we must innovate. The solution lies in combining a secure, cloud-free "ChatGPT for OT" with digital twins. Bringing the field to engineers is essential. We've partnered with a satellite constellation for asset imaging and U.K.-based Mods Solutions to leverage their CFIHOS-driven platform for intelligent digital twins — more on that partnership soon!

And we will need to leverage enhanced automation tools and actively monitor control networks to ensure security and respond quickly to issues, which is why we’ve partnered with Nozomi Networks.

Shaping the future

Although Dan has semi-retired to his cabin in Montana, he continues to do “the fun stuff” that brings him joy, such as conducting research for PRCI and assisting long-time clients. He also has been a mentor and advisor to me since I started at UTSI three years ago. I’m grateful for him and the group of industry experts he gathered around him to make UTSI such a well-known systems integrator and OT advisor for the world’s largest asset owners.

Our group of experts are active in the industry and will be speaking at events throughout the year, with a presence at Entellec, Level Zero, and participating at this year's API Cybernetics and PSIGs biannual conferences. We proudly serve on the BCarbon advisory board and GHPs Energy Committee.

Lastly, we have one request: We see a critical need for H2 and supercritical CO2 studies to develop simulation models, response plans, and leak detection best practices. These gases differ from those covered in existing standards. If you know anyone interested in funding or contributing, we’re collaborating with industry partners to secure support.

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Houston unicorn closes $421M to fuel first phase of flagship energy project

Heating Up

Houston geothermal unicorn Fervo Energy has closed $421 million in non-recourse debt financing for the first phase of its flagship Cape Station project in Beaver County, Utah.

Fervo believes Cape Station can meet the needs of surging power demand from data centers, domestic manufacturing and an energy market aiming to use clean and reliable power. According to the company, Cape Station will begin delivering its first power to the grid this year and is expected to reach approximately 100 megwatts of operating capacity by early 2027. Fervo added that it plans to scale to 500 megawatts.

The $421 million financing package includes a $309 million construction-to-term loan, a $61 million tax credit bridge loan, and a $51 million letter of credit facility. The facilities will fund the remaining construction costs for the first phase of Cape Station, and will also support the project’s counterparty credit support requirements.

Coordinating lead arrangers include Barclays, BBVA, HSBC, MUFG, RBC and Société Générale, with additional participation from Bank of America, J.P. Morgan and Sumitomo Mitsui Trust Bank, Limited, New York Branch.

“As demand for firm, clean, affordable power accelerates, EGS (Enhanced Geothermal Systems) is set to become a core energy asset class for infrastructure lenders,” Sean Pollock, managing director, project Finance at RBC Capital Markets, said in a news release. “Fervo is pioneering this step change with Cape Station, a vital contribution to American energy security that RBC is proud to support.”

The oversubscribed financing marks Cape Station’s shift from early-stage and bridge funding to a long-term, non-recourse capital structure, according to the news release.

“Non-recourse financing has historically been considered out of reach for first-of-a-kind projects,” David Ulrey, CFO of Fervo Energy, said in a news release. “Cape Station disrupts that narrative. With proven oil and gas technology paired with AI-enabled drilling and exploration, robust commercial offtake, operational consistency, and an unrelenting focus on health and safety, we have shown that EGS is a highly bankable asset class.”

Fervo continues to be one of the top-funded startups in the Houston area. The company has raised about $1.5 billion prior to the latest $421 million. It also closed a $462 million Series E in December.

According to Axios Pro, Fervo filed for an IPO that would value the company between $2 billion and $3 billion in January.

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This article first appeared on EnergyCapitalHTX.com.

Houston food giant Sysco to acquire competitor in $29 billion deal

Mergers & Acquisitions

Sysco, the nation's largest food distributor, will acquire supplier Restaurant Depot in a deal worth more than $29 billion.

The acquisition would create a closer link between Sysco and its customers that right now turn to Restaurant Depot for supplies needed quickly in an industry segment known as “cash-and-carry wholesale.”

Sysco, based in Houston, serves more than 700,000 restaurants, hospitals, schools, and hotels, supplying them with everything from butter and eggs to napkins. Those goods are typically acquired ahead of time based on how much traffic that restaurants typically see.

Restaurant Depot offers memberships to mom-and-pop restaurants and other businesses, giving them access to warehouses stocked with supplies for when they run short of what they've purchased from suppliers like Sysco.

It is a fast growing and high-margin segment that will likely mean thousands of restaurants will rely increasingly on Sysco for day-to-day needs.

Restaurant Depot shareholders will receive $21.6 billion in cash and 91.5 million Sysco shares. Based on Sysco’s closing share price of $81.80 as of March 27, 2026, the deal has an enterprise value of about $29.1 billion.

Restaurant Depot was founded in Brooklyn in 1976. The family-run business then known as Jetro Restaurant Depot, has become the nation's largest cash-and-carry wholesaler.

The boards of both companies have approved the acquisition, but it would still need regulatory approval.

Shares of Sysco Corp. tumbled 13% Monday to $71.26, an initial decline some industry analysts expected given the cost of the deal.

Houston researcher builds radar to make self-driving cars safer

eyes on the road

A Rice University researcher is giving autonomous vehicles an “extra set of eyes.”

Current autonomous vehicles (AVs) can have an incomplete view of their surroundings, and challenges like pedestrian movement, low-light conditions and adverse weather only compound these visibility limitations.

Kun Woo Cho, a postdoctoral researcher in the lab of Rice professor of electrical and computer engineering Ashutosh Sabharwal, has developed EyeDAR to help address such issues and enhance the vehicles’ sensing accuracy. Her research was supported in part by the National Science Foundation.

The EyeDAR is an orange-sized, low-power, millimeter-wave radar that could be placed at streetlights and intersections. Its design was inspired by that of the human eye. Researchers envision that the low-cost sensors could help ensure that AVs always pick up on emergent obstacles, even when the vehicles are not within proper range for their onboard sensors and when visibility is limited.

“Current automotive sensor systems like cameras and lidar struggle with poor visibility such as you would encounter due to rain or fog or in low-lighting conditions,” Cho said in a news release. “Radar, on the other hand, operates reliably in all weather and lighting conditions and can even see through obstacles.”

Signals from a typical radar system scatter when they encounter an obstacle. Some of the signal is reflected back to the source, but most of it is often lost. In the case of AVs, this means that "pedestrians emerging from behind large vehicles, cars creeping forward at intersections or cyclists approaching at odd angles can easily go unnoticed," according to Rice.

EyeDAR, however, works to capture lost radar reflections, determine their direction and report them back to the AV in a sequence of 0s and 1s.

“Like blinking Morse code,” Cho added. “EyeDAR is a talking sensor⎯it is a first instance of integrating radar sensing and communication functionality in a single design.”

After testing, EyeDAR was able to resolve target directions 200 times faster than conventional radar designs.

While EyeDAR currently targets risks associated with AVs, particularly in high-traffic urban areas, researchers also believe the technology behind it could complement artificial intelligence efforts and be integrated into robots, drones and wearable platforms.

“EyeDAR is an example of what I like to call ‘analog computing,’” Cho added in the release. “Over the past two decades, people have been focusing on the digital and software side of computation, and the analog, hardware side has been lagging behind. I want to explore this overlooked analog design space.”