Houston is known for energy, but the city is also building a budding technology sector. The world's oil capital is home to scores of hopeful entrepreneurs developing new websites, software, medical devices, clean technologies and other innovations. Research at the Texas Medical Center, NASA, local universities and in the energy industry, for example, has given birth to new ventures. Here's one of an occasional set of snapshots of local tech startups. Time will tell if they take off.
AirGenerate
• Elevator pitch: Use air to heat water.
• The idea: AirGenerate has developed a device called the AirTap, a metal unit that connects to a traditional water tank. The unit then works like a conventional heat pump by using an electric-powered compressor to pull heat from the surrounding air. It sends the heat through long copper tubes into an adapter where it’s released into the water tank. The unit uses about 70 percent less energy then conventional electric or gas water heaters, co-founder and CEO Rick Pal said. The company also recently launched a water tank with the AirTap technology integrated into the unit.
• Users: The company has sold about 10,000 units to distributors and estimates about 7,000 have been installed. The average units retail for $895 plus installation. (Editor's note: This story was changed from an earlier version because of incorrect price.)
• The brains: Before co-founding the company in 2008, Pal was a master franchisee for Liberty Tax Service in Greater Houston Area. Co-founder Sunil Sinha invented the device. Prior to starting AirGenerate, he founded Sunlit, a California-based solar panel installation company.
• The competition: Gas and electric water heaters, as well as tankless ones, are less energy efficient than the AirTap, Pal said, while solar water heaters can be more expensive.
• The money: The company raised about $1.5 million, mostly from Houston-area individuals and small businesses, Pal said. He’d like to sell the company in about two to three years, he said.
Emission Technologies
• Elevator pitch: A system that improves fuel combustion in diesel engines.
• The idea: Emissions Technology has developed a device that attaches to diesel engines and feeds a catalyst to the engine’s airstream. The catalyst helps make the combustion reaction more efficient, the company says. The efficiency can help save up to 25 percent on fuel consumption and lowers emissions because it burns more of the fuel in the tank, CEO Mark Spoon said. The company is targeting off-road diesel vehicles, like tractors.
• Users: The company has sold 2,000 to 3,000 systems, which sell for about $1,200, Spoon said. The catalyst sells separately.
• The brains: Spoon joined the company in 2008, when it started to commercialize the system. He previously consulted for the company, prior to which he spent 25 years at ConocoPhillips.
• The competition: Fuel additives. • The money: The company has raised “several million” from private investors, and will likely need another $2 million to $5 million to grow, Spoon said.
SeprOx
• Elevator pitch: Separating pure oxygen from air.
• The idea: Pure oxygen is used in breathing systems for patients with pulmonary disorders as well as in welding and chemical industries. Using pure oxygen in high-temperature furnaces for industrial uses improves efficiency and reduces emissions. But traditional methods of separating oxygen for such uses can be costly and use a lot of energy, according to SeprOx. The company says it has a developed a new system that uses what’s called an Ion Transport Membrane to pull oxygen from air by first converting the oxygen molecules to ions that are recovered through a patented membrane. The resulting oxygen is as pure as the more commonly found liquid oxygen but at half the cost and using a third of the energy, according to the company.
• Users: None. The company expects to complete a prototype by the end of the year.
• The brains: The company was founded by CEO Robert Schucker in 2008 based on technology licensed from the University of Houston. Schucker retired from Exxon Mobil Corp. in 2000, after which he founded Trans Ionics, which focuses on fuel cell and battery development and is the parent company for SeprOx. Allan Jacobson, director of the Texas Center for Superconductivity at the University of Houston, invented the material that allows the device to function.
• The competition: Connecticut-based Praxair and Pennsylvania-based Air Products are also working on oxygen separation technologies.
• The money: Last year the Woodlands-based company received $750,000 from the Texas Emerging Technology Fund. Prior to that, Jacobson received a $1.35 million research grant from the U.S. Department of Energy. The company is seeking to raise an additional $450,000 from investors.



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