A fast-growing Houston biotechnology company is spinning out businesses based on the application of its technology, and it named an experienced energy leader to head up one of them this week.
Cemvita appointed Prabhdeep Singh Sekhon as the CEO of Gold H2, a company aiming to transform unrecovered oil and depleted assets into biologically produced hydrogen. Gold hydrogen is also the industry term for hydrogen produced through natural processes, as opposed to hydrogen produced through industrial processes or a laboratory.
Sekhon previously had stints at NextEra Energy Resources, where he was most recently head of the Florida-based company’s strategy and new business development team. He also previously worked at New York-based Hess Corp. (NYSE: HES), which has its exploration and production offices in Houston.
“Over the last few years, my team 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,” Sekhon said in a May 1 press release. “What’s equally intriguing is that the technology leverages existing infrastructure by transforming mature oil and gas fields into clean, hydrogen-producing assets. Joining the company at this growth stage is an exciting challenge and a huge responsibility: We intend to move quickly to disrupt an industry in significant need of cost-effective innovation.”
According to Cemvita CEO and co-founder Moji Karimi, Gold H2 had grown to the point where it needed a CEO and business leadership of its own. Karimi said that similar growth could happen for other Cemvita businesses, such as its Endolith mining unit.
Cemvita uses a library of microbes to turn carbon dioxide and waste products into feedstocks that can be further converted to sustainable aviation fuel, or SAF. The company’s technology has previously been backed by major names such as Houston-based Occidental Petroleum Corp. (NYSE: OXY) and Chicago-based United Airlines (UAL).
“Once [Gold H2] became a business unit, they had to go work on deployment of the technology, and they were getting deep into that vertical,” Karimi told the Houston Business Journal. “After we did a lot of research and talked to our investors, we felt the way to really unleash their growth was to let them continue into the vertical without running a matrix organization as a business unit.”
Karimi said the spinout of Gold H2 has been taking place for the past two years. Gold H2 is also in the process of fundraising and filed a Form D in February stating an equity raise of $6.5 million. Citing confidentiality agreements, Karimi declined to comment on when that funding round would be closed.
Gold H2 is currently sharing space at Cemvita’s headquarters at 9350 Kirby Drive in the Texas Technology Park, according to Karimi.
Cemvita hit some other major milestones over the past 18 months as well. In September 2023, the company signed a major commercial deal with United Airlines for 50 million gallons of SAF over 20 years for a total of 1 billion gallons.
The company also launched and began operating its first pilot plant last year at its Houston headquarters. Karimi previously said that plant could be the template for future designs that would capture carbon from refineries or pipelines to convert into feedstocks.
Cemvita appointed its first CFO, Lisa Bromiley, this year. Bromiley previously held roles at several oil and gas companies, including Houston-based Flotek Industries (NYSE: FTK).
