Safe & Green's Energy Gambit: Tech and Strategy Drive Olenox's New Push

CONROE, TX – November 24, 2025 – In a move that signals a significant strategic pivot, Safe & Green Holdings Corp. has set the wheels in motion for its energy subsidiary, Olenox Corp., to become a fully operational service provider in the oil and gas sector. The company announced that Olenox has secured its Department of Transportation (DOT) number, a critical regulatory hurdle that unlocks the mobilization of its service division assets across Texas, Kansas, and Oklahoma.

While on the surface a procedural milestone, the activation of Olenox's service arm represents a calculated, multi-pronged strategy. It's a play for vertical integration designed to slash internal costs, but more importantly, it's a launchpad for a new, high-margin revenue stream targeting third-party operators. For parent company Safe & Green, a firm primarily known for modular construction, this move deepens its diversification and underscores a commitment to building a synergistic, technology-forward portfolio.

A Strategic Play for Vertical Integration

At its core, Olenox's new capability is a classic case of vertical integration aimed at capturing efficiencies. By bringing well maintenance and workover services in-house, the company can directly control the costs and timelines associated with keeping its own oil and gas assets productive. This is a crucial step for a company focused on optimizing underdeveloped properties, where operational expenses can make or break profitability.

Michael McLaren, CEO of Safe & Green Holdings Corp., highlighted this internal benefit, stating, “This is a big step for us to get our service assets mobile and rekindle our O&G (Oil and Gas) service division. Our O&G service division is a key part of our production strategy, being able to do our own work greatly reduces the cost of our maintenance and workover costs. We can now go full out getting our wells back online.”

However, the strategy extends far beyond internal cost savings. The company is actively preparing to hire a sales team to market its service rigs and equipment to other operators. This transforms a cost center into a potential profit center, allowing Olenox to compete in the vast and recurring market for oilfield services. By leveraging its assets for external contracts, Olenox can generate revenue that directly supports the parent company’s ambitious goal of achieving cash-flow positivity in 2026. This dual-purpose approach - serving internal needs while building an external customer base - is a savvy way to maximize asset utilization and accelerate the return on investment.

From Modular Buildings to Oilfields: A Diversification Story

The move is particularly noteworthy given the profile of the parent company, Safe & Green Holdings Corp. As a provider of modular construction and sustainable infrastructure, its foray into the traditional energy sector might seem disconnected. Yet, a closer look reveals a deliberate strategy of diversification into synergistic, asset-heavy industries where its principles of efficiency and innovation can be applied. Olenox is not an outlier but a key component of this broader vision.

Olenox itself is structured as a vertically integrated energy company, with divisions for oil and gas production, energy services, and energy technologies. This structure is designed to create a self-reinforcing ecosystem where technology enhances production, and the service arm supports both. The mobilization of the service division is the critical link that connects these components, turning a theoretical synergy into a practical, on-the-ground operation.

This expansion is fundamental to Safe & Green's financial roadmap. The press release explicitly states that growth in third-party service revenue is a "key driver" of its plan to become cash-flow positive. For investors and market observers, the success of Olenox's service division will therefore serve as a primary indicator of Safe & Green's ability to execute its complex, cross-sector growth strategy and transform its diversified holdings into a profitable enterprise.

The Technological Edge in a Traditional Market

What could set Olenox apart in the crowded oilfield services market is its technology division. The service rigs are not just for standard maintenance; they are the delivery mechanism for Olenox's proprietary downhole tools, including an ultrasonic cleaning tool and a plasma pulse tool. These technologies represent a potential step-change in well optimization and enhanced oil recovery (EOR).

Traditional well servicing often involves mechanical or chemical interventions that can be costly, time-consuming, and carry environmental risks. Advanced tools like ultrasonic cleaners, which use high-frequency sound waves to break down scale and paraffin buildup, offer a more precise and less invasive method to improve flow and extend a well's productive life. Similarly, plasma pulse technology can stimulate reservoirs by creating powerful shockwaves deep within the formation, increasing permeability and unlocking trapped hydrocarbons that conventional methods might miss.

By bundling these advanced tooling services with standard well maintenance, Olenox can offer a value proposition that goes beyond simple repairs. It can position itself as a technology partner capable of measurably improving a client's asset performance and return on investment. This technology-led approach could allow the company to capture higher-margin contracts and build a defensible competitive moat based on innovation rather than just price or availability. The challenge will be to prove the efficacy and economic benefits of these tools in the field to a traditionally conservative customer base.

Navigating the Road Ahead: Regulation and Competition

Obtaining its active USDOT Number (4491242) from the Federal Motor Carrier Safety Administration (FMCSA) was a non-negotiable first step, clearing Olenox to legally operate its commercial vehicle fleet for its intended purpose. This number is essential for safety monitoring and compliance across its operational footprint in Texas, Kansas, and Oklahoma. Given the interstate nature of its business, Olenox will likely also need to secure a Motor Carrier (MC) number to transport equipment for hire across state lines, a standard requirement for third-party service providers.

The regulatory landscape, which includes state-specific rules like the Texas Department of Motor Vehicles (TxDMV) number and unique Hours of Service (HOS) exceptions for oilfield drivers, presents a complex but manageable operational framework. The real test will be market penetration. Olenox is entering a mature and competitive field dominated by established players with long-standing relationships.

The company's success will hinge on its ability to rapidly build a credible and effective sales and marketing operation. Hiring a skilled sales team, as planned, is paramount. This team will need to not only sell rig time but also effectively communicate the technical advantages and ROI of Olenox's proprietary tooling. Initial target markets will likely be smaller, independent operators who may be more receptive to innovative, cost-effective solutions that larger service companies might overlook. The ability of Olenox to execute this market entry strategy, secure its first third-party contracts, and demonstrate tangible results will be watched closely over the coming quarters as a bellwether for Safe & Green's energy ambitions.