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.

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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Exclusive: Houston hydrogen spinout names energy industry veteran as CEO

good as gold

Cleantech startup Gold H2, a spinout of Houston-based energy biotech company Cemvita, has named oil and gas industry veteran Prabhdeep Singh Sekhon as its CEO.

Sekhon previously held roles at companies such as NextEra Energy Resources and Hess. Most recently, he was a leader on NextEra’s strategy and business development team.

Gold H2 uses microbes to convert oil and gas in old, uneconomical wells into clean hydrogen. The approach to generating clean hydrogen is part of a multibillion-dollar market.

Gold H2 spun out of Cemvita last year with Moji Karimi, co-founder of Cemvita, leading the transition. Gold H2 spun out after successfully piloting its microbial hydrogen technology, producing hydrogen below 80 cents per kilogram.

The Gold H2 venture had been a business unit within Cemvita.

“I was drawn to Gold H2 because of its innovative mission to support the U.S. economy in this historical energy transition,” Sekhon says in a news release. “Over the last few years, my team [at NextEra] was heavily focused on the commercialization of clean hydrogen. When I came across Gold H2, it was clear that it was superior to each of its counterparts in both cost and [carbon intensity].”

Gold H2 explains that oil and gas companies have wrestled for decades with what to do with exhausted oil fields. With Gold H2’s first-of-its-kind biotechnology, these companies can find productive uses for oil wells by producing clean hydrogen at a low cost, the startup says.

“There is so much opportunity ahead of Gold H2 as the first company to use microbes in the subsurface to create a clean energy source,” Sekhon says. “Driving this dynamic industry change to empower clean hydrogen fuel production will be extremely rewarding.”

In 2022, Gold H2 celebrated its successful Permian Basin pilot and raised early-stage funding. In addition to Gold H2, Cemvita also spun out a resource mining operation called Endolith. In a podcast episode, Karimi discussed Cemvita's growth and spinout opportunities.

Rice University's student startup competition names 2024 winners, awards $100,000 in prizes

taking home the W

A group of Rice University student-founded companies shared $100,000 of cash prizes at an annual startup competition.

Liu Idea Lab for Innovation and Entrepreneurship's H. Albert Napier Rice Launch Challenge, hosted by Rice earlier this month, named its winners for 2024. HEXASpec, a company that's created a new material to improve heat management for the semiconductor industry, won the top prize and $50,000 cash.

Founded by Rice Ph.D. candidates Tianshu Zhai and Chen-Yang Lin, who are a part of Lilie’s 2024 Innovation Fellows program, HEXASpec is improving efficiency and sustainability within the semiconductor industry, which usually consumes millions of gallons of water used to cool data centers. According to Rice's news release, HEXASpec's "next-generation chip packaging offer 20 times higher thermal conductivity and improved protection performance, cooling the chips faster and reducing the operational surface temperature."

The rest of the winners included:

Second place and $25,000: CoFlux Purification
Third place and $15,000: Bonfire
Outstanding Achievement in Social Impact Award and $1,500: EmpowerU
Outstanding Achievement in Artificial Intelligence and $1,000: Sups and Levytation
Outstanding Achievement in Consumer Goods Prize and $1,000: The Blind Bag
Frank Liu Jr. Prize for Creative Innovations in Music, Fashion and the Arts and $1,500: Melody
Outstanding Achievement in Climate Solutions Prizes and $1,000: Solidec and HEXASpec
Outstanding Undergraduate Startup Award and $2,500: Women’s Wave
Audience Choice Award and $2,000: CoFlux Purification

The NRLC, open to Rice students, is Lilie's hallmark event. Last year's winner was fashion tech startup, Goldie.

“We are the home of everything entrepreneurship, innovation and research commercialization for the entire Rice student, faculty and alumni communities,” Kyle Judah, executive director at Lilie, says in a news release. “We’re a place for you to immerse yourself in a problem you care about, to experiment, to try and fail and keep trying and trying and trying again amongst a community of fellow rebels, coloring outside the lines of convention."

This year, the competition started with 100 student venture teams before being whittled down to the final five at the championship. The program is supported by Lilie’s mentor team, Frank Liu and the Liu Family Foundation, Rice Business, Rice’s Office of Innovation, and other donors

“The heart and soul of what we’re doing to really take it to the next level with entrepreneurship here at Rice is this fantastic team,” Peter Rodriguez, dean of Rice Business, adds. “And they’re doing an outstanding job every year, reaching further, bringing in more students. My understanding is we had more than 100 teams submit applications. It’s an extraordinarily high number. It tells you a lot about what we have at Rice and what this team has been cooking and making happen here at Rice for a long, long time.”

HEXASpec was founded by Rice Ph.D. candidates Tianshu Zhai and Chen-Yang Lin, who are a part of Lilie’s 2024 Innovation Fellows program. Photo courtesy of Rice

2 Houston high schools rank among America's top 100 in 2024, says U.S. News

best in class

Two Houston high schools are dominating U.S. News and World Report's prestigious annual list of the country's best public high schools.

The 2024 rankings from U.S. News, released April 23, put Houston ISD’s Carnegie Vanguard High School at No. 31 nationally (up from No. 35 last year and No. 40 in 2022) among the country’s best high schools. The school also ranks No. 248 nationally among the best STEM (science, technology, engineering, and math) high schools and No. 12 among the best magnet high schools.

Meanwhile, DeBakey High School for Health Professions ranks No. 70 nationally among the best high schools (down from No. 66 last year and No. 50 in 2022) and No. 19 among best magnet high schools. DeBakey ranked No. 426 nationally among best STEM high schools.

Topping the national list for 2024 is the BASIS Peoria Charter School in Peoria, Arizona.

Each year, U.S. News evaluates about 18,000 high schools on six factors: college readiness, reading and math proficiency, reading and math performance, underserved student performance, college curriculum breadth, and graduation rates.

“The 2024 Best High Schools rankings offer a starting point for parents to understand a school’s academic performance, whether it’s a prospective school or one that their child is already attending,” said LaMont Jones, Ed.D., the managing editor of education at U.S. News, in a release. “Accessible data on our high schools can empower families across the country as they navigate today’s educational environment and plan for the future.”

Elsewhere in Texas
Around the state, these Texas high schools also made it into the top 100 nationally:

Dallas ISD's The School for the Talented and Gifted, No. 6 (unchanged from last year). No. 21 nationally among the best STEM high schools, and No. 3 among the best magnet high schools.
Dallas ISD's Irma Lerma Rangel Young Women's Leadership School, No. 23 (down from No. 18 last year) and No. 10 nationally among the best magnet high schools.
Dallas ISD's Science and Engineering Magnet School, No. 29 nationally among the best high schools (down from No. 23 last year), No. 37 nationally among the best STEM high schools, and No. 11 nationally among the best magnet high schools.
Grand Prairie ISD's Collegiate Institute, No. 30 (up from No. 188 last year). No. 6 nationally among best charter high schools.
Austin ISD’s Liberal Arts and Science Academy, No. 38 (down from No. 32 last year and No. 34 in 2022). No. 34 nationally among the best STEM high schools.
BASIS San Antonio - Shavano Campus, No. 64 (up from No. 81 last year and No. 77 in 2022). No. 76 nationally among the best STEM high schools and No. 13 nationally among the best charter high schools.
Brownsville ISD's Early College High School, No. 71 (up from No. 229 last year).
Dallas ISD’s Judge Barefoot Sanders Law Magnet, No. 85 (up from No. 93 last year and No. 48 in 2022) . No. 21 nationally among the best magnet high schools.

When broken down just to Texas schools, Houston's Carnegie Vanguard High School (No. 5) and DeBakey High School for Health Professions (No. 8) are both in the top 10 best-rated public high schools in Texas this year, U.S. News says.

Other Houston-area schools that rank among Texas' 100 best are:

No. 24 – Kinder High School for Performing and Visual Arts, Houston ISD
No. 25 – Challenge Early College High School, Houston ISD
No. 29 – Young Women's College Prep Academy, Houston ISD
No. 32 – Eastwood Academy, Houston ISD
No. 37 – Harmony School of Innovation - Katy, Katy
No. 40 – Kerr High School, Alief ISD, Houston
No. 43 – Houston Academy for International Studies, Houston ISD
No. 47 – East Early College High School, Houston ISD
No. 59 – Clear Horizons Early College High School, Clear Creek ISD, Houston
No. 61 – Seven Lakes High School, Katy ISD
No. 63 – Early College Academy at Southridge, Spring ISD, Houston
No. 68 – KIPP Houston High School, Houston
No. 70 – North Houston Early College High School, Houston ISD
No. 71 – Victory Early College High School, Aldine ISD, Houston
No. 75 – Tompkins High School, Katy ISD
No. 76 – Clements High School, Fort Bend ISD, Sugar Land
No. 82 – Sharpstown International School, Houston ISD
No. 85 – Tomball Star Academy, Tomball ISD
No. 89 – Westchester Academy for International Studies, Spring Branch ISD, Houston
No. 95 – Harmony School of Innovation - Sugar Land, Sugar Land
No. 97 – Harmony School of Discovery - Houston, Houston
No. 98 – Energy Institute High School, Houston ISD