From exit to corporate growth — Houston founder talks scaling his sustainable tech

Houston innovators podcast episode 93

Robert Kester joins the Houston Innovators Podcast to discuss his entrepreneurial journey. Photo courtesy of Honeywell

There are several ways for a Houston startup to make an exit — it could IPO, receive massive private equity funding, or even get acquired. It wasn't always in the plan for Robert Kester to have his startup take the acquisition route, but he saw a huge opportunity to get the technology he had worked on for a decade into the field — and he took it.

Kester co-founded Rebellion Photonics in 2010. A doctoral candidate at Rice University at the time, Kester had an idea for scaling a sensor technology that can detect chemicals. The developed device could be used to automate the process and improve safety on oil and gas sites.

"When we first got going, it was an idea on a napkin. We had no idea if it could work or not," Kester says on this week's episode of the Houston Innovators Podcast. "So getting those first pilots from companies like BP — some of these major companies believing in us and deploying the technology. We grew it to a point where we'd shown value, and we were scaling the solution."

Kester says he initially saw this application benefitting onsite safety, but it quickly evolved into being a key took to promoting sustainability in a world where climate change is increasingly on everyone's mind. The company started considering a way to get its technology to scale — and fast. In 2019, Rebellion exited in an acquisition by Honeywell.

"For us it just made sense that we could team up with Honeywell and figure out how we could scale this thing globally and quickly, so that we could help be a solution for climate change," Kester continues.

Now, as president and general manager at Honeywell Rebellion, Kester still oversees his technology and, with the support of Honeywell, is able to see it be deployed at a quick pace.

Amid the pandemic, he was even able to make a pivot with his technology. Recognizing the importance of temperature reading as an early indicator of COVID-19, Kester and his team worked to develop ThermoRebellion, a temperature scanning technology that was implemented in airports — like JFK and Boston's Logan Airport — to screen travelers.

"I think the latest statistic I heard is that we've scanned over a million passengers coming in and out of the country," Kester says. "For me, I get a lot of satisfaction out of the fact that we're working on important issues in trying to keep the country safe."

Kester shares more about what he's focused on at Honeywell Rebellion on the episode. Listen to the full interview below — or wherever you stream your podcasts — and subscribe for weekly episodes.

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A temperature checking technology originally created for oil and gas industry has pivoted amid the pandemic. Photo courtesy of Honeywell

Tech giant warms up to temperature monitoring system created by Houston startup

temp tech

A Houston startup's temperature monitoring system originally developed for oil and gas facilities is being used to help companies safely get their employees back into work.

The ThermoRebellion temperature software uses technology from Houston-based Rebellion Photonics, which Honeywell acquired in December of last year. The technology uses infrared imaging technology and artificial intelligence to quickly conduct non-invasive screenings of people before they enter offices, banks, airports, as businesses begin to reopen.

Robert Kester, Rebellion Photonics founder and Honeywell president and general manager, says the ongoing health crisis called for a reimagining of the AI-driven oil and gas technology, which is used to quickly detect leaks by using a real-time monitoring platform that provides automated notifications.

"The key component is our software powered by artificial intelligence," Kester tells InnovationMap. "Our imaging systems leverage a decade of experience in the most advanced imaging technologies for gas leak detection, fire detection, and intrusion monitoring applications. The system features uncooled high-resolution FPA infrared sensors allowing for each pixel to be assessed for temperature."

As states begin to lift stay-at-home orders, a return to a new normal is expected, as people begin to go back to the workplace and have to spend time in commercial buildings surrounded by others. In Houston's Memorial Hermann Hospital, temperature scanners by Austin-based Athena Security have already been installed, minimizing contact and reducing foot traffic congestion in entrances.

"Experts believe temperature checks can become more common in public spaces," says Kester. "Our system works allows for social distancing as people don't have to queue closely. Imagine an airport, for example, it wouldn't be feasible to have passengers wait in additional long lines for temperature screening."

The ThermoRebellion system can scan individuals in groups for effective screening at a wide range of sites and venues, instantly providing temperature results in an non-invasive manner, to keep employees and customers safe from introducing and spreading coronavirus.

"It's important for people to get back to work safely, whether that's an office building or a factory, or taking a flight to meet a customer," says Kester.

Honeywell is moving the technology to its piloting phase, racing against the clock to meet the demand as businesses open for business. The system, according to Kester, is intuitive and easy to use, implementing audible and visual alarms to alert if a person has elevated body temperature. Plus, it can also be easily deployed to different access points.

The fast-tracked product couldn't have been done without the team of designers and engineers who quickly pivoted from gas imaging to body temperature solutions. The team is already recruiting potential users who are interested in implementing the system in their facilities.

By Kester's and his team's estimates, the ThermoRebllion system will be ready to deploy as early as June.

"It's going to be difficult for people to go back to busy locations without knowing that companies are taking proactive steps to protect its patrons or employees," says Kester. "We're excited to be part of the set of solutions that can help improve safety."

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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.”

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