Penrose's advance process control software can increase production by 10 to 15 percent in downstream oil and gas refineries. Pexels

In the next 30 years, the world will need 30 percent more energy due to population growth. While energy production will increase to keep up with demand, there is an increasing concern with the impact on the environment.

"How do you produce more energy without emission increases or more air quality pollution?" asks Erdin Guma, CFO of Penrose Technologies.

According to Guma, Penrose is uniquely well-suited to solve these serious challenges with its advanced process control technology increases the productivity of a chemical plant or refinery by 10 to 15 percent. The increase in productivity means the plants use less fuel to produce the energy. The plant then releases fewer emissions while producing the same amount of energy.

The technology itself is an automation software — similar to autonomous software on a plane. The autonomous operation increases downstream productivity, which brings about the energy efficiency.

"Our autopilot software (like a human operator) can manage and foresee any unexpected disturbances in the plant," Guma explains. "The achievements that the Penrose technology has brought about seemed impossible to chemical and process engineers in the refinery space a few years ago."

Penrose recently signed its first project with one of the biggest downstream firms in the world. With a network of refineries and petrochemical plants around the world, this contract could lead to a global roll out of the Penrose technology.

A ground-breaking technology for O&G
The word "Penrose" is taken from a penrose triangle, an impossible geometrical object. Guma explained that the energy efficiency brought about from their software seemed impossible at first. Penrose has been able to reduce emissions inside plants and refineries by 15 to 20 percent while keeping production at the same level.

In 2007, a chief engineer working at a major oil and gas processing plant in Houston procured the technology for one of his plants. When the engineer saw how well the technology worked, he founded Penrose Technologies in 2017 with Tom Senyard, CTO at Penrose, who originally developed the technology.

After starting the company at the end of 2007, Penrose joined Station Houston. Guma said that by becoming a member, Penrose was able to plug into a large refining and petrochemical network.

"Penrose Technologies is completely self-financed. We worked with [Station Houston] as we finalized the software to find out what potential customers thought of the product. For us, Station Houston has been a great sounding board to potential investors in the company," Guma says.

Guma also explained that while there has been an uptick in innovation in the last few years, the refining and petrochemical business is traditional a slow mover in the uptake of innovation.

"I think more major oil and gas firms are becoming attune to startups and the innovation solutions they offer," Guma says.

He went on to explain that the biggest challenge Penrose faces is perception. Since the software allows plant operators and engineers at the plant to be hands off in the processes, there is a concern with reliability. For industry insiders, any viable product must be reliable even when process conditions at the plant change, which can happen often.

"The Penrose software is maximum hand off control from operators, and the reliability of our software gives us a huge edge in other competing products that can be unreliable," Guma says.

Future growth on a global market
Given the pressing need for more environmentally sustainable energy production, new technology will be adopted in the oil and gas energy. As Guma explains it, there will be no way to continue producing energy as it's been produced for decades because the negative effects of air pollution and emissions will be too severe — particularly in the areas where refineries operate.

"We see the global market for this type of technology as severely underserved," Guma says. "It's a big and sizable market, and I think we can reach a $2 to $3 billion valuation in the next five years."

With a core team of six employees in Houston, Penrose's software is now commercially available, and the company is in full growth mode at this point. The software can be distributed directly to customers, but they are working to develop distribution with major engineering companies as well.

Guma is grateful to be in an environment conducive to energy start-ups. He sees Houston as a major advantage given its proximity to the energy sector.

"No technology rises up in a vacuum. Any new technology needs a good ecosystem to come from," says Guma. "Houston was that ecosystem for Penrose."

Dyan Gibbens translated her Air Force experience with unmanned missiles into a drone services company. Courtesy of Alice

Houston drone company has big business on the horizon

The sky's the limit

Dyan Gibbens found her dream career. She studied engineering, learned to fly at the United States Air Force Academy, went into pilot training, and served as engineering acquisitions officer managing stealth nuclear cruise missiles. She even went on to support Air Force One and Global Hawk UAS engineering and logistics. She dedicated five years to active service before transitioning to the reserves.

"When I went to transition, I learned I was permanently disqualified from ever serving again," Gibbens said. "It was devastating to me, because all I've ever wanted to do was serve."

She went into a doctorate program — she already had her MBA — and was close to finishing up when her drone startup took flight. Trumbull Unmanned provides drone services to the energy sector for various purposes. With her experience as a pilot and managing unmanned missiles, she knew the demand for drones was only growing — and, being from Texas, she knew what industry to focus on.

"I wanted to start a company that uses unmanned systems or drones to improve safety and improve the environment and support energy,"

InnovationMap: What exactly does Trumbull Unmanned do?

Dyan Gibbens: We fly drones in challenging and austere environments to collect and analyze data for the energy sector. We fly across upstream, midstream, and downstream either on or off shore. We focus on three areas: digital transformation, inspection and operations, and technology development and integration.

The types data we collect and analyze could be LiDAR — light detection and ranging — to multispectral — to see the help of different properties — to visible — to perform tech-enabled inspections. We've recently hired inspectors in house as well. On LiDAR, we just hired a subject matter expert.

IM: So, the company is growing. What else is new for Trumbull?

DG: We just signed a few five-year agreements with supermajors. We're excited about that and the new hires. We're starting to do more on communications and situational awareness. We're doing more in energy and now in the government.

IM: What were some early challenges you faced?

DG: We are 100 percent organically funded — from our savings and from client contracts. Our first client was ExxonMobil. Our second client was Chevron. We had to prove ourselves over and over. We had to work hard to earn and then maintain that business. For us, it was also adjusting to a fluctuation in cash flow. It was going from a steady job to betting on yourself, and we didn't know anyone in Houston.

IM: What's the state of drone technology in the field?

DG: We've continued to see a hybrid approach toward services. Meaning, there's an in-house component and outsourced component. On the outsourced component, we intend to provide that for our clients. On the in-house component, while we don't train the masses, we do train our clients on request. We've promoted that model from the beginning. We think it makes sense that they are trained to do something simple, like take a picture, but for some of the more difficult projects, they outsource to us.

We're going to continue to see increased autonomy. There are really some amazing things already in autonomy, but there's still a lot of challenges flying in dense environments such as refineries and plants.

IM: How is Houston's startup scenes for veterans? What resources are out there?

DG: The way I see it is veterans have made a commitment to serve us, so we should make a commitment to serve them. That's my philosophy. Large companies have different programs, which is great, and there are entities such as Combined Arms, which has full services for transitioning veterans where you can go in and one-stop shop to get support from everything like getting connected to the VA to help working through PTSD to getting help transitioning to business. There are also really good Service Academy networks. More and more opportunities exist to step up to serve veterans.

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Portions of this interview have been edited.

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How this Houston innovator's tech is gearing up to impact EV charging, energy transition

houston innovators podcast episode 172

With more and more electric vehicles on the road, existing electrical grid infrastructure needs to be able to keep up. Houston-based Revterra has the technology to help.

"One of the challenges with electric vehicle adoption is we're going to need a lot of charging stations to quickly charge electric cars," Ben Jawdat, CEO and founder of Revterra, says on the Houston Innovators Podcast. "People are familiar with filling their gas tank in a few minutes, so an experience similar to that is what people are looking for."

To charge an EV in ten minutes is about 350 kilowatts of power, and, as Jawdat explains, if several of these charges are happening at the same time, it puts a tremendous strain on the electric grid. Building the infrastructure needed to support this type of charging would be a huge project, but Jawdat says he thought of a more turnkey solution.

Revterra created a kinetic energy storage system that enables rapid EV charging. The technology pulls from the grid, but at a slower, more manageable pace. Revterra's battery acts as an intermediary to store that energy until the consumer is ready to charge.

"It's an energy accumulator and a high-power energy discharger," Jawdat says, explaining that compared to an electrical chemical battery, which could be used to store energy for EVs, kinetic energy can be used more frequently and for faster charging.

Jawdat, who is a trained physicist with a PhD from the University of Houston and worked as a researcher at Rice University, says some of his challenges were receiving early funding and identifying customers willing to deploy his technology.

Last year, Revterra raised $6 million in a series A funding round. Norway’s Equinor Ventures led the round, with participation from Houston-based SCF Ventures. Previously, Revterra raised nearly $500,000 through a combination of angel investments and a National Science Foundation grant.

The funding has gone toward growing Revterra's team, including onboarding three new engineers with some jobs still open, Jawdat says. Additionally, Revterra is building out its new lab space and launching new pilot programs.

Ultimately, Revterra, an inaugural member of Greentown Houston, hopes to be a major player within the energy transition.

"We really want to be an enabling technology in the renewable energy transition," Jawdat says. "One part of that is facilitating the development of large-scale, high-power, fast-charging networks. But, beyond that, we see this technology as a potential solution in other areas related to the clean energy transition."

He shares more about what's next for Revterra on the podcast. Listen to the interview below — or wherever you stream your podcasts — and subscribe for weekly episodes.


Report: Houston's hot medical office market might be on track to cool

by the numbers

Houston’s medical office market is on a roll.

A report from commercial real estate services company JLL shows net absorption and transaction volume saw healthy gains in 2022:

  • The annual absorption total of 289,215 square feet was 50.5 percent higher than the five-year average.
  • Transaction volume notched a 31.7 percent year-over-year increase.

Meanwhile, net rents held steady at $26.92 per square foot, up 1.3 percent from the previous year. The fourth-quarter 2022 vacancy rate stood at 15.9 percent.

Despite those numbers, the report suggests a slowdown in medical office rentals may be underway.

“Tenants who may have previously considered building out or expanding their lease agreements are now in a holding pattern due to increased construction costs and higher interest rates,” the report says. “These factors are having a direct impact on financial decisions when it comes to lease renewals, making it more likely that tenants will remain in their existing location for the foreseeable future.”

Still, the report notes “a number of bright spots for the future of healthcare in Houston.” Aside from last year’s record-high jump in sales volume, the report indicates an aging population coupled with a growing preference for community-based treatment “will lift demand even higher in coming years.”

The report shows that in last year’s fourth quarter, 527,083 square of medical office space was under construction in the Houston area, including:

  • 152,871 square feet in the Clear Lake area.
  • 104,665 square feet in the South submarket.
  • 103,647 square feet in Sugar Land.
Last fall, JLL recognized Houston as a top city for life sciences. According to that report, the Bayou City lands at No. 13 in JLL’s 2022 ranking of the country’s top 15 metro areas for life sciences. JLL says Houston “is poised for further growth” in life sciences.

Houston financial services firm announces acquisition, plans to grow

M&A radar

A Houston-based financial services company has made a recent strategic acquisition that gives it a new banking status.

LevelField Financial, which is creating a platform that combines traditional banking and digital asset products and services, announced this week that it is acquiring Burling Bank, an FDIC-insured, Illinois state-chartered bank. According to the company, once it receives regulatory approval, "LevelField will be the first full-service bank to offer fully compliant traditional banking and digital asset services."

The financial terms of the deal's transaction, which is expected to close later this year, were not disclosed.

The combined company will be able to provide traditional banking services, as well as LevelField's digital asset management. Burling Bank's senior management team will join LevelField's leadership, per a press release. They will focus on serving the bank's existing clients and growing the banking business nationwide.

"We conducted a broad review of banks in the U.S. to find the ideal institution with both an existing business and a management team who are aligned with our vision; we exceeded our expectations with Burling Bank. With this acquisition, LevelField will become a traditional bank, albeit one serving customers interested in the digital asset class," says Gene A. Grant II, CEO of LevelField Financial, in the release.

"We are thrilled to have the Burling executives join our leadership team, and together we intend to deliver fantastic customer service and well-designed products to customers who have an interest in accessing the digital asset class through a traditional bank," he continues.

Founded in 2018 by former banking executives, LevelField's leadership believes "the future of money is digital and that banks will continue to be a trusted provider of financial services," according to the website. This acquisition comes ahead of the company's plans to expand nationally.

"LevelField's strategic approach presented a tremendous opportunity for the bank to expand beyond our local footprint and serve customers with shared interests across the nation," says Michael J. Busch, Burling Bank president and CEO. "Together, we will continue to provide superior service and demonstrate that we truly understand the expanding and unique needs of our customers. Additionally, through the carefully developed suite of products we can address our customers' interests in digital assets and introduce them to LevelField's safe, simple, and secure platform."