Hawaii-based Oceanit opens Houston test facility focused on plugging hydrogen leaks

A Hawaii-based hydrogen technology company is expanding its Houston presence with the opening of a new laboratory to test a product it claims will address hydrogen leakage.

Oceanit, headquartered in Honolulu, will open its H2XCEL laboratory as part of the development of its HydroPel technology for pipelines. James Andrews, Oceanit’s director of marketing, confirmed to the Houston Business Journal that the laboratory would open alongside Oceanit’s existing Houston office at 8402 Scranton St.

Andrews could not confirm the new laboratory’s square footage by press time but did say it would double Oceanit’s current capacity. He also confirmed Oceanit would be hiring to expand its Houston team from its current headcount of 12. Oceanit’s website shows Houston-based job postings for a full-time product lead and a full-time process engineer. 

Hydrogen fuels are under consideration as a possible replacement for fossil fuels. According to the U.S. Department of Energy’s Alternative Fuels Data Center, hydrogen fuels produce less emissions than traditional fuel when burned. Producing hydrogen through electrolysis using electricity from renewable sources — referred to as “green hydrogen” — has been suggested as a method of further reducing emissions through a cleaner production process.

However, hydrogen molecules can penetrate pipeline walls, leading to cracks, leaks and failures in the delivery system. A 2022 report from Columbia University's Center for Global Energy Policy estimated that current pipelines are at a 0.4% leakage rate just from having hydrogen pass through them, but increasing need for storage and pressurization systems could increase that rate to 2%. The Columbia report noted leakage data is still relatively scarce.

Founder and CEO Patrick Sullivan said the Houston lab’s design would support data collection on leakage and gas-blend monitoring.

“This lab is highly customized for novel hydrogen technologies, such as our nanomaterial for pipeline protection, HydroPel, HALO for green hydrogen production, and HyDIOS for hydrogen gas blend monitoring," Sullivan said in a statement. "We see a toolset emerging that will enable the U.S. to accelerate toward a low-carbon future.”

Oceanit has partnered with Hawaii Gas, a utility company that has been scaling up its renewable hydrogen and renewable natural gas purchases, Andrews said in an email to the HBJ. He said future partnerships for the HydroPel technology are in the works but was unable to disclose them.

Houston has seen multiple organizations push for federal funding for hydrogen opportunities, bolstered by a favorable mandate from President Joe Biden’s administration and plenty of DOE funding. Two local consortiums of industry, academia and nonprofits have submitted separate bid applications — known as the HyVelocity Hub and LIGH2T Hub — to the DOE in the hopes of securing funds for a hydrogen production and marketplace hub in the Bayou City.

The Center for Houston’s Future — a nonprofit that was involved in the HyVelocity Hub bid — released a report in 2022 highlighting the region’s advantages as an economic center for hydrogen production, including easy access to both natural gas and clean power needed for production and a network of existing pipelines.

Meanwhile, private funding has allowed smaller companies focused on hydrogen to make their homes in Houston. Utility Global, which produces technology that converts carbon dioxide and other gases into synthetic hydrogen fuels, opened new office space in the Energy Corridor in May 2023 following a successful pilot test and a $25 million Series B round raised last year.

Another significant recipient of funding is Ohmium, which secured a $250 million Series C round from Energy Transition Ventures and Fort Worth-based TPG Capital Group. Ohmium, which is a Houston member of climate tech incubator Greentown Labs, will use the funds to open a new Houston office. 

Another Greentown Labs Houston member, Ambient Fuels, landed a commitment of up to $250 million from Generate Capital for the support of its green hydrogen electrolyzer production. Ambient CEO Jacob Susman told the Houston Business Journal the funding would allow the company to announce deals toward the end of 2023.