123Fab #78

1 topic, 2 key figures, 3 startups to draw inspiration from

At the end of 2021, Australian researchers announced the creation of the Earth’s Black Box, modeled on an airplane’s black box, to collect data, notably climate data. The box will be completed this year and will inform future generations of mistakes not be repeated, with information such as land and sea temperatures, ocean acidification levels, species extinction, number of people in the world, military spending, energy consumption and news-related information. This illustrates the growing need to communicate with future generations. Other sectors are concerned, on different scales, such as the nuclear industry. Communication on the burial of nuclear waste, whose lifespan of several thousand years for the most radioactive, goes far beyond the next generations. In France, the National Agency for Radioactive Waste Management (ANDRA) has been entrusted by the Nuclear Safety Authority with the task of maintaining the memory of the Bure site, a potential future storage center for industrial nuclear waste, for at least five centuries after its closure.

The consideration of communication on very long-lived assets stems in particular from the nuclear sector, for which the risks of exposure, contamination, but also proliferation are significant and imply taking into account an unprecedented and uncommon duration. The vagaries of civilization history such as armed conflicts or budget cuts, climatic events and geological time must be taken into account when judging the capacity of a semiotic device to communicate the dangers of nuclear waste storage sites for millennia to come. The medium of transmission, the language or code used, and the way in which messages are transmitted, are at the heart of the problem.

Digital solutions seem to have their limits and lack efficiency when used alone. Hard disks, for example, do not have such a long lifespan and technology. They are likely to evolve, making readers and software capable of deciphering them obsolete. Combining a technological solution with “permanent paper” could be a solution. Made from pure cellulose, with a basic pH and resistance to oxidation, such a document, printed with a stable ink, could be preserved for 600 to 1,000 years. The detailed memory of the historical storage site in the Channel, intended for experts, already benefits from such a solution. Until now, certain organizations such as ANDRA have used sapphire disks, developed and marketed in particular by the Arnano company. They are able of withstanding at least 2000 years and a temperature of 1700°C. But this solution does not guarantee that the message will be understandable for future generations. A universal and simplified language could alleviate this problem. In the United States, researchers have thought of bristling the center of New Mexico with gigantic spines carved into granite and drawing a huge skull and crossbones, visible from above, in the landscape. But future generations must be able to decode this message. It can also be expected that in the next few years blockchain-based solutions will emerge, like SLAFKA, the world’s first blockchain prototype for safeguarding nuclear material.

There is a great technological and industrial need at this level, for the nuclear sector in particular, but more generally to create a multimillennial memory and communicate with the future. Very few companies and startups have taken up this subject and this may be linked to the difficulty of identifying the responsible of this memory. As far as public health is concerned, it could be the duty of national or supranational institutions. But how can we envisage an institution capable of taking charge of the management of nuclear waste for thousands or even millions of years to come? The economic model for such a solution remains difficult to envisage as long as institutions or private companies do not take on this type of responsibility. This may soon happen, as in March 2020, the OECD published a report entitled Preservation of Records, Knowledge and Memory (RK&M) Across Generations, which addresses the issue of radioactive waste over time and proposes a specific methodology to address it. The initiative offered a number of suggestions, such as libraries, time capsules and physical markers. The need is real, and it is gradually spreading to more and more sectors.

2 Key Figures

There are approximately 6.6 million m3 of nuclear waste in Europe 

The world nuclear waste report (2019)

The Technetium 99, one of the most important fission products, has a half-life of 220,000 years

The Technetium 99, one of the most important fission products, has a half-life of 220,000 years

3 startups to draw inspiration from

Arnano

The startup relies on the properties of sapphire disks and microscopic engraving to provide data storage for very long periods. This solution is already being used in the nuclear industry to store radioactive waste storage sites or nuclear power plant plans to ensure that the information can be read by future generations.

Ternoa

The startup Ternoa’s solution allows to create time capsules from a smartphone and to easily add photos, videos or messages. Each time capsule is encrypted and stored in a decentralised way on the blockchain, for future transmission to the chosen beneficiaries.

Earth’s Black Box

The project is a collaboration between the University of Tasmania and a communications firm called Clemenger BBDO. It will be able to collect a large amount of information on the climate and current events, similar to an aircraft’s black box. Its outer layer will be made up of 3″ thick steel.

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123Fab #77

1 topic, 2 key figures, 3 startups to draw inspiration from

In recent years, the number of digital buyers has skyrocketed reaching a total of over 2 billion people worldwide in 2020. While e-commerce was already a growing industry before pre-Covid, the pandemic has fast-tracked its growth making e-shopping experiences a key differentiating factor. Traditional brick-and-mortar companies have been pushed to adopt such experiences, with Digital Vertical Brands (DNVBs) gaining ground.

This has had an impact on the infrastructure and supply chain required to distribute these goods. Retail giants (Amazon, Cdiscount, Alibaba, or Ocado) have made operational excellence their core business, accustoming their clients to simple, very fast, and very reliable home deliveries. At the same time, the vast majority of companies selling products online do not have warehouses, picking and packing centers, and distribution networks to deliver their products to the end customer. This is because, fulfillment infrastructure, while essential, is not flexible for small companies. Once maximum storage is reached, it can be complicated not only to find a new warehouse, but also to connect the company’s IT to the warehouse, and to recruit and onboard a new team in a short timeframe. Such a barrier has led to the emergence of startups offering externalized fulfillment solutions. These solutions can be end-to-end, handling the delivery of the package once the customer has completed its order, through to managing the storage, shipping and sometimes the return of goods.

Yet, these startups, which are tackling the fulfillment market, have had to compete with large, long-established companies by offering flexible, tailor-made services. In order to be as efficient and fast as they are, they manage a large number of small warehouses so that the stored product is never too far from the delivery location, reducing both costs and delivery times. ShipBob and ShipMonk are the two leaders in this segment, both of which have a large number of warehouses throughout the US but also in Canada, Mexico and Europe. They target all e-commerce companies regardless of the industry and size. ShipBob even provides plans for startups shipping less than 400 orders a month. They handle every aspect of the supply chain, from order and inventory management to analytics reports to review performance and get insights on their client’s products. On the other hand, some startups like MasonHub choose to focus on a particular industry, in their case beauty, fashion, and wellness. They also own several warehouses across the US and target retailers of all sizes. But in addition to storing the products, picking, packing, and shipping them, they also handle the returned products from inspection to refund.

One of the challenges faced by startups providing fulfillment solutions is the high cost of owning warehouses in strategic locations. Thus, some startups bypass the latter by partnering with warehouse operators rather than owning the warehouses themselves. These are so-called “asset-light” fulfillment startups. Flexe, which has built one of the largest logistic networks of fulfillment centers (more than 1,500 locations in North America), connects retailers to warehouse operators in North America  through its platform. It helps them find new storage space in a flexible way and at specific locations, enabling 2-day or same-day delivery to their customers. In turn, warehouse operators can increase their revenues by having a higher occupancy rate and reach new customers, such as smaller companies, that they have struggled to attract. Deliverr provides a solution that connects directly to the sales channels of ones choice such as Amazon, Facebook, or Instagram and enables for fast shipping options such as 2-day delivery of ones product. Byrd, on the other hand, focuses on the European market, with more than 20 storage locations in their network. Their solution has two main upsides: the first is that they provide cross-border fulfillment, allowing their customers to reach a larger base of potential clients. The second is that they handle product returns, which can be a logistical nightmare for retailers and sellers. The main drawback of these solutions is that they become expensive if the products remain in the warehouses for a long period of time. Companies using these services must either store as little as possible of the goods that are not selling fast enough, or stop selling them. And predicting which item will be selling the fastest can be a very challenging question.

Micro-fulfillment is another type of fulfillment process that involves the automated handling of perishable goods in very small centers. This solution is particularly suitable for large agrifood companies that sell some of their fresh produce online. Fabric provides micro fulfillment solutions for online grocery shopping. Their micro-fulfillment centers use AI-powered robotic arms to perform basic tasks such as transporting bags of items within the facility and handling packaged items, while manned stations handle loose and more fragile products. Their station also provided the world’s first 1-hour delivery fulfilled by robots. Takeoff also provides automated micro fulfillment centers. Their solution is said to take up one-eighth of a traditional store’s space, allowing them to be built in strategic locations to reduce last-mile delivery time and cost. They claim that their solution can assemble an average order in less than 15 minutes which is ten times faster than manual picking in a store.

Considering the growth rate of e-commerce, whether for retail products or groceries, it seems that adapting our way of delivering products to this trend is inevitable. Investments are pouring in to fuel this transformation. Last June, ShipBob raised $200M to extend its geographical reach and invest in R&D and ShipMonk raised $290 6 months earlier. Last November deliverr’s valuation reached $2bn with a $250M Series E funding. Earlier in 2021 Flexe raised 65M€. Thus, the fulfillment industry has clearly seen the changes of customer behaviour over the last few years and is preparing for a massive transformation. The role of classic shopping malls and grocery stores remains uncertain in this transformation.

2 Key Figures

2k+ e-commerce fulfillment startups

Registered by Tracxn

By 2028, the global e-commerce fulfillment market is expected to reach $168.7bn

Compared to $86.44bn in 2021, growing at a CAGR of 10% – Grand View Research

3 startups to draw inspiration from

MasonHub

Founded in 2018, MasonHub provides of inventory management services allowing brands total visibility into their omnichannel supply chains. The company allows users to connect their e-commerce tools, see fulfillment activity, oversee inventory, ship quickly and affordably.

Byrd

Based in Vienna, Byrd developed an e-commerce fulfillment platform intended to offer scalable logistics to every online shop so that they can fulfill their potential. The company’s application offers e-commerce shop integration, online real-time stock tracking, and first-mile shipping services.

Takeoff

Takeoff was founded in 2016 and developed an automated grocery fulfillment system designed to fulfill orders using robots in micro fulfillment centers. The company’s platform helps customers find and select products easily, enabling retailers to lower last-mile and assembly costs.

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123Fab #75

1 topic, 2 key figures, 3 startups to draw inspiration from

Earlier this month, the CISA (Cybersecurity & Infrastructure Security Agency) issued a “shields up” warning to US companies to upgrade their cybersecurity assets due to the increased risks associated with the growing tension between Russia and Ukraine. As a matter of fact, the number of attacks has skyrocketed in recent years and data protection is becoming increasingly complicated. The rise of remote working has also made data protection harder by extending greatly the amount of information transferred and the number of external platforms used to share and store documents. Thus, cyberattacks are not only a financial threat, they also call into question the public credibility of the company and can even put people’s lives at risk. Fortunately, numerous startups are entering the space.

Startups that help companies protect their industrial data with cutting-edge technology and software are addressing a number of uses cases. First, some strive to educate employees on phishing for example, while others help strengthen their hardware and software assets. Solutions include automatic intrusion detection, blocking scenarios to limit the propagation as well as counter-attacks to seek information on the hacker and the way it succeeded to get it. As factories use increasingly more IoT technology, the size and complexity of the networks and communications that need to be monitored are growing. As such, some startups ambition to protect these networks as a whole. Cybus, for example, has developed connectivity software for smart factories that use Industrial Internet of Things (IIoT), to help them secure the connection between different machines, different databases, the company’s ERP as well as its connection to external services. That way, industrials can carry out quality management, condition management, or predictive maintenance in a safe manner. Dragos provides an industrial cybersecurity platform that contains all the necessary capabilities for vulnerability assessment and management, threat detection, investigation and incident response. It draws insight on previous cyberattacks to track and profile various threat activity groups to determine how they operate and how to best respond. Veracity offers a zero-trust network management platform that allows companies to define exactly which devices can communicate with which and avoid unwanted information communication. In addition, the fact that the authorizations are given to a specific device rather than a port number on a switch makes the network flexible. A machine can be moved and plugged at another side of the network and keep the authorizations and communication rules intact. Even in the case of a malfunction of the machine, the information can be rerouted, and a warning is sent to check the device.

A good example of an industry where cybersecurity is critical is automotive manufacturing, as it is particularly vulnerable to cyberattacks and has a higher stake in protecting its networks. For example, it is essential for connected car manufacturers to avoid any tempering of their cars as their passengers’ lives are in their hands. Startups are tailoring offers specifically to fit their needs. Upstream Security provides a cybersecurity and data management platform for connected vehicles. Their cloud-based solution analyzes and reports the potential security risks and has an integrated workflow to respond in the event of an attack. More than just protecting the vehicles from cyber-attacks, Upstream analytics provides insights on mobility data to help OEMs, Tier-1s, or Tier-2s to better understand their fleet. One upside of their solution is that it does not require adding software or hardware within the vehicle, their technology uses the data already produced by the connected vehicles to monitor the various systems status. Cybellum, on the other hand, provides digital twins of the car’s software architecture in an attempt to detect potential security flaws. Its solution enables car manufacturers to test any new software or feature on the digital twin to detect any weaknesses in the integrated system before deploying it on the fleet. The digital twins are continuously tested for flows as Cybellus adds new potential attack methods to its database.

The average annual budget spent by companies on cybersecurity ranges from $500k for smaller companies to millions of dollars for larger ones. While these amounts seem huge, they are still affordable compared to the colossal losses that can result from a successful cyberattack. The high budget and urgency of the matter has made cybersecurity a critical topic for corporations. As an example, Microsoft acquired CyberX to enhance its IoT securing technology. Similarly, earlier this month, Forescout acquired CyberMDX to enhance its security focus in the healthcare industry. Finally, last year, cybersecurity giant Fortinet partnered with Dragos to integrate its technology into Fortinet’s software.

To conclude, as technological equipment and networks become more complex, the number of potential security breaches grows. Companies of all sizes have realized that cybersecurity is critical and that most of them cannot do it in-house due to a lack of manpower or expertise. That is why startups have a great role to play in mitigating this risk by offering ever-new protections to stay one step ahead of malware.

2 Key Figures

140+ Industrial cybersecurity startups

Registered by Tracxn

By 2040, the industrial cybersecurity market is expected to reach $22.5bn

Compared to $16.9bn in 2020, growing at a CAGR of 5.8% – Markets and Markets

3 startups to draw inspiration from

Dragos

Dragos designed a security software that provides critical visibility into ICS and OT networks so that threats are identified and can be addressed before they become significant events, its solutions are optimized for emerging applications like the Industrial Internet of Things (IIoT), enabling its clients in power and water utilities, energy and manufacturing industries to establish a resilient and adaptable security posture.

Veracity

Cybellum

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123Fab #74

1 topic, 2 key figures, 3 startups to draw inspiration from

Plastic pollution in oceans is one of the most pressing environmental issues. The Great Pacific garbage patch alone is estimated to be 1.6 million square kilometers wide, three times the size of France, and contains about 1.8 trillion pieces of plastic, the equivalent of 250 bits for every human being. Once in the ocean, the sunlight, waves, and wind break the plastic into increasingly smaller pieces, ultimately reaching the size of microplastic (<5mm) which are then dispersed in the water. This affects all marine organisms since their small size makes them virtually impossible to collect once they have broken down. Some companies have decided to tackle the problem by collecting and upcycling these plastics in order to slow the growth of these garbage continents but NGOs remain the key players in the sector. As recycled plastics cannot financially compete with cheap new plastics, it is hard for startups to identify a clear business model.

The Ocean Cleanup is a non-profit organization based in the Netherlands that aims to remove 90% of floating ocean plastic. It harvests it by dragging a 3-meter deep, 800-meter long net between boats throughout the Pacific garbage patch. To make the capture as efficient as possible, they use computational modeling to predict where the highest concentration of plastic is. However, one of the problems with this technology is that the surface to be covered to retrieve plastics in the ocean is gigantic. Luckily, most plastic in the ocean arrives via rivers, which is easier to filter. Thus, they place barriers on rivers to guide floating plastic to solar-powered conveyor belts that carry it to dumpsters. As for River Cleaning, they place floating devices diagonally across the river to form a chain to a storage area on the riverbank. The river current makes the devices spin so that floating plastic is diverted from one device to the other to end up in the storage area. One highlight of this solution is that, as each floating device is anchored to the bottom of the river, they allow ships and boats to pass through and return to their position by themselves. Another innovative technology to filter plastics from rivers is provided by The Great Bubble Barrier, pumping compressed ambient air through perforated tubes at the bottom of the waterway to create a diagonal bubble curtain that will direct plastics to the storage area on the side of the river. The bubble curtain is also safe for fish and ships traffic and increases the oxygen concentration in the water, benefitting the aquatic ecosystem.

The main obstacle to these technologies is that sorting and recycling the different types of plastic is expensive, while the plastic itself is cheap. Some companies have focused on revalorizing the plastic in the ocean. Bureo partners with fishermen to retrieve discarded fishing nets, which represent more than 46% of the great pacific garbage patch and transform them into their NetPlus material that can then be used to make clothes, skateboards, sunglasses, or even board games. Oceanworks also provides materials such as resins, textiles, bottles, and more made from recycled plastics collected by local communities throughout the world. The retrieved plastics come either from the ocean, streams, and waterways or coastal areas. Oceanplastik, meanwhile, plans to create an ecosystem based on crypto tokens to reward the collection of plastic waste before it reaches the ocean. Their phone app would allow users to tag, collect and drop off plastic wastes at collection points and earn crypto tokens. The recovered plastics would then be sorted, washed, and recycled into granules to use in new plastic products.

Major industrials are interested in recycled plastic from the ocean, like Patagonia’s partnership with Burneo to use their recycled fishing net as fabric for their clothes. Last year, Coca Cola announced a partnership with The Ocean Cleanup to support the deployment of their solution on 15 new rivers by the end of the year. In 2020, the world’s largest zipper manufacturer YKK partnered with OceanWorks to produce an ocean-sourced collection of zippers.

As humanity has just crossed the 5th planetary limit on chemical pollution, in which plastic production plays a major role, recycling and collecting plastic waste is more important than ever. However, it goes without saying that limiting its production and use remains a mandatory step toward a sustainable future. Startups like Notpla and Sulapac are good examples of the role startups can play in avoiding single-use plastics in packaging and helping to keep our ocean clean.

2 Key Figures

37 Ocean cleaning initiatives

Registered by Tracxn

By 2040, a total of 600 metric tons of plastics could be accumulated in the seas

Compared to 150 metric tons in 2015 – National Geographic

3 startups to draw inspiration from

This week, we identified three startups that we can draw inspiration from: River Cleaning, The Great Bubble Barrier and Bureo.

River Cleaning

The Italy-based startup River Cleaning produces and install cleaning system made up of a series of floating devices, positioned diagonally on the course of the river; thus positioned, they allow to intercept plastic waste and transport it to the river bank, in a special storage area.

The Great Bubble Barrier

Founded in 2017 in the Netherlands, The Great Bubble Barrier developed a bubble barrier designed to stop plastic pollution in rivers and canals. Their barrier is comprised of bubble curtain, compressor, and catchment system, enabling users to collect and remove plastics from waterways.

Bureo

Manufacturer of plastic goods designed to sell materials made from ocean waste, specifically from nylon fishing nets. Bureo produces and sells sustainable skateboards, sunglasses, t-shirts, and caps made from recycled fishing nets, enabling consumers to protect the environment around them, using innovation to inspire change and create tangible positive impacts.

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123Fab #73

1 topic, 2 key figures, 3 startups to draw inspiration from

Vertical take-off and landing (VTOL) projects are spurring around the world. According to Oliver Wyman, there are an estimated 170 projects for flying taxis or VTOL aircraft worldwide. This futuristic scenario is getting closer, with Airbus, ADP and RATP announcing vertical take-off flying taxis for the 2024 Paris Olympics.

VTOLs are historically military aircraft designed to bypass the runways normally required for take-off and landing. The term VTOL or eVTOL is now being used to describe the flying taxi projects that are emerging. These aircraft are now possible thanks to new multi-rotor designs ranging from four to eight or even sixteen propellers (both safer because they are redundant and much quieter), advances in pilot automation and progress in electricity storage via lithium-Ion batteries, for example.

The advantages of these vehicles are interesting from an environmental point of view: less air pollution, less noise pollution, less road congestion and speed. However, the prohibitive cost of travel will probably not allow the general public to use these vehicles in the coming years, which is unlikely to drastically reduce road congestion and air pollution in cities. The limited space in the vehicles may explain this high price and is in opposition to the ecological model of a more decarbonized public transport. In addition, the manufacture of these devices, as well as their propulsion method (lithium-ion batteries or hydrogen for the cleanest) raises questions about their lifespan and their real carbon footprint.

The relatively high cost of these technologies requires the deployment of a service that allows the cost to be spread over several people, hence the boom in the flying taxi market or in delivery-related applications. Strict airspace regulations also make it more realistic for dedicated air corridors to be operated by clearly defined companies. Other companies are also targeting longer regional or intercity air travel, relying on hybrid engines.

The market is booming and is coveted by the aeronautics giants. Last September, Airbus unveiled plans for the new, fully electric CityAirbus, equipped with fixed wings, a V-shaped tail, and eight electrically powered propellers. It is designed to carry up to four passengers on a zero-emission flight with multiple applications. Its first flight is scheduled for 2023. Boeing has entered into a joint venture with Kitty Hawk to develop a startup, Wisk, described as an Urban Air Mobility (UAM) company. Last year it signed its first contract to operate air taxis in the US. Car manufacturers are also very active in the market. Hyundai has developed a vehicle called the S-A1 in collaboration with Uber. It can accommodate four passengers plus a driver, although Hyundai plans to operate the S-A1 autonomously in the future. Toyota has filed a patent for a “dual-mode” car that can be converted from a road-legal passenger car to a light aircraft.

On the startup side, fundraising is on the rise. Last year, German startup Volocopter closed a $241 million Series D fundraising round to certify its two-seat, piloted VoloCity aircraft and launch commercial air taxi services within the next two years. The company obtained the first European certification for test flights in a restricted area. The French startup Ascendance Flight Technologies raised €10 million in September 2021 and is banking on hybrid technology to launch its helicopter alternative within four years. Its aircraft are instead designed to operate in peri-urban areas and inland regions. Elroy Air is a Silicon Valley startup that is developing autonomous cargo aircraft systems to massively extend the reach of express transport. The company is developing the Chaparral, a VTOL air cargo platform. The first version of the Chaparral will carry 300 to 500 pounds of cargo over a 300 mile-range with its hybrid-electric powertrain and simple, redundant lift and forward motors. The vehicle can land, drop a load, pick up another load and take off again, all within minutes and without operator intervention.

Finally, although there is a lot of hype around VTOLs and that they become a reality, they face many challenges, such as high costs and environmental impact. It seems too early to imagine a science fiction landscape or mainstream use. The advent of VTOL drones – particularly for delivery operations – seems more relevant and likely to develop in the coming years.

2 Key Figures

By 2035, the flying taxi market could be worth $35 billion

With 40,000 to 60,000 flying machines in 60 to 90 cities – Challenges

1,6B+ in investments for VTOL

with 70+ companies registered by Tracxn

3 startups to draw inspiration from

This week, we identified three startups that we can draw inspiration from: Volocopter, Ascendance Flight Technologies and Elroy Air.

Volocopter

The German startup develops electrical vertical take-off and landing multicopters designed to transport people safely. The company’s engines can fly completely autonomously or be easily operated using a joystick and assistive systems for support, enabling users to travel by air.

Its urban air taxi, Volocity, has 2 seats, 18 rotors and is fully electric. The company has developed another model, VoloConnect, for longer distances, which can carry up to four passengers for 100 km. It is equipped with two propulsion fans plus six electrical motors and rotors.

Ascendance Flight Technologies

The French startup is a manufacturer of hybrid-powered aircraft systems designed to change the way people move around cities. The company’s systems are able to blend into existing infrastructures and regulations to ease its deployment and maximize social acceptance.

The startup has developed the Altea VTOL aircraft, capable of carrying 4 passengers on regional or intercity routes of up to 2 hours and over 400km. It has 8 rotors integrated in two fixed wings, 2 horizontal propellers and a hybrid-electric propulsion system.

Elroy Air

The startup develops automated drones and aircraft designed to aid in defense and logistics sectors. They use a combination of light detection and ranging, radar, cameras, and air-traffic management software to enable clients to benefit from express shipping and rapid autonomous aerial resupply to troops in the field.

Elroy Air has developed the Chaparral, a VTOL aerial cargo platform. It will be able to carry 300-500lbs of cargo over a 300-mile range thanks to its hybrid electric engine and six vertical rotors. It has a robust set of applications in national defence.

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123Fab #72

1 topic, 2 key figures, 3 startups to draw inspiration from

As concerns about climate change grow and energy use is at an all-time high, the need for an affordable, scalable, and low emission electricity source is clear. And while geothermal energy might not be the first source that comes to mind when talking about renewable energy, its potential is huge and startups and investors are investing in the field.

Producing electricity using geothermal energy is a straightforward process: the lower layers of the earth are hot and some of them contain pools of water at high temperature and pressure. To access as much of this water as possible, a fracturing step is used to improve the permeability of the surrounding rocks, called “fracking”. The water is pumped out and turned into steam when it reaches the surface. The steam passes through a turbine to produce electricity. Once it passes through the turbine, the pressure drops and the steam turns back into water, which is sent back underground.

One of the main drawbacks of this technique is that these pools are often very deep underground and the drilling of the well is exponentially expensive with the depth, but some startups are tackling this problem: Strada has developed a patented “water hammer” technology, a frac-free drilling method that they claim can reduce time and cost by up to 70% compared to conventional technology. Eden Geotech provides electro-hydraulic fracturing technology that enhances geothermal well production by increasing the liquid flow within the well. One of its advantages is that the electricity used for fracking can be produced by the geothermal power plant itself, lowering the ecological impact of the process. Eavor, on the other hand, offers a geothermal solution that does not require fracking with its Eavor-loop system. It harvests energy using its proprietary fluid flowing inside a chain of lateral wells dug several kilometers underground.

Another obstacle to the widespread adoption of geothermal energy is that it is location-dependent, as pockets of very hot, deep water are not found everywhere. Other technologies focus on “low enthalpy” geothermal wells, where the liquid temperature reaches 70-90°C, which are more abundant and closer to the earth’s surface. One way of producing power using these wells is through an Organic Rankine Cycle (ORC), which involves bringing hot water into contact with another liquid that has a lower boiling point and using the steam produced to generate electricity. Greenstorc has developed a proprietary fluid that evaporates at 50°C and creates 250 times more steam than water, thus reducing the energy loss of the conversion. Climeon produces modules using the ORC principle that can operate between with a hot source of 80 to 120°C and can be associated in parallel and in series, making it scalable to a wide range of flows and power generation needs.

The innovative geothermal energy production technology has attracted the attention of larger corporations: BP and Chevron led Eavor’s last year’s funding round. Two years ago, Climeon successfully installed its technology on virgin voyage’s first ship, using the waste heat from cooling systems as a heat source. Their technology is to be installed on Virgin’s first 4 ships.

In short, geothermal energy can be a viable and reliable energy source, as evidenced by Iceland, where 25% of the electricity is produced using geothermal energy. Nonetheless, these applications remain geographically constrained and are very expensive, but work continues to expand their use in less optimal conditions.

2 Key Figures

The geothermal energy market is expected to reach $6.8bn by 2026

The global geothermal energy market reached $4.6 bn in 2018 and is expected to grow at a CAGR of 5% over the period 2019-2026 – Allied Market Research

+350 funded companies in geothermal energy

registered by Tracxn

3 startups to draw inspiration from

This week, we identified three startups that we can draw inspiration from: Strada, Eden Geotech and Eavor.

Strada

The UK-based company provides onshore geothermal drill rig technology and specializes in providing deep geothermal well construction and completion services with access to patented drilling rigs and fluid percussion drilling methods.

Eden Geotech

Eden Geotech provides reservoir stimulation technology intended to enhance oil, gas and geothermal productivity. The company has developed water-less and injection-free technology and solutions to change the petrophysical properties of rock formation, create micro-fractures and increase permeability.

Eavor

Based in Canada, climeon developed a power generation technology designed to mitigate or eliminate the issues that have hindered traditional geothermal alternatives. The company’s technology circulates a benign working fluid that is completely isolated from the environment in a closed-loop and collects heat from the natural geothermal gradient of the Earth.

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123Fab #71

1 topic, 2 key figures, 3 startups to draw inspiration from

On October 28, 2021, Facebook Inc. announced the new name of its parent company: Meta. The message is strong and demonstrates the group’s strategic shift towards the 3D universe, and particularly the metaverse. The latter is a combination of multiple elements of technology, including virtual reality and augmented reality where users “engage” within a digital universe. The concept behind the metaverse is the introduction of new online environments whereby interactions between people are highly multidimensional, wherein they can immerse more interactively with digital content instead of just receiving information. For Meta, this world promises more social contact without going anywhere, whether it’s organizing a business meeting, attending a fitness class or strolling through a pixel shop.

There are several factors that explain why the metaverse is back in the spotlight. First of all, the Covid-19 epidemic and the lockdowns have greatly accelerated the digitization of our societies (zoom meetings, aperitifs or even online museum visits…) and the emergence of virtual communities as major living spaces, including interactive gaming landscapes as well as increasing adoption of mixed reality. Also from a technical point of view, digital infrastructures are becoming more and more powerful, the boom in virtual reality is becoming real and the development of 5g promises unprecedented speeds.

The race to the metaverse is therefore on and the competition is fierce. The uses are also numerous. Microsoft, for example, intends to create an “enterprise metaverse”. Its Mesh mixed reality collaboration platform, designed for Teams among other things, will begin previewing in 2022 with a set of pre-built immersive spaces for things like meetings and social gatherings. The company also specializes in the design of digital twins. Epic Games, the world of the popular game Fortnite, which raised $1 billion this year, is already hosting virtual mini-concerts with 12 million viewers. Regarding video games, one of the leaders remains Roblox, a free-to-play software that allows any user to create games and sell them. In this system of play and creation, one in five players will change their avatar every day, just as a person gets up and gets dressed every morning. Thus, the metaverse also offers luxury brands the opportunity to take advantage of digital collectibles and the rise of ‘social gaming’. Several brands, such as Gucci and Lagerfeld, have already held virtual exhibitions and digital model sales. Thanks to NFTs, linked to the blockchain, transactions are encrypted, secure and the items sold are unique, thus preserving their value.

The potential of the metaverse is therefore very large and major groups are not hesitating to join forces with the most successful startups in the field to get ahead. This is the case, for example, of Nike, which has announced the acquisition of RTFKT, a startup specialized in the creation of digital fashion objects for the metaverse. Whether it is in the development of new uses or new technical tools, startups are very active in this field. For example, Stockholm-based startup Gleechi, which launched in 2014, has developed a technology called VirtualGrasp, which enables a more natural hand interaction in virtual reality. It has partnerships with companies such as Siemens Energy, Scania and Saab Aeronautics to develop virtual training programmes. Another startup, Scapin’, based in Stockholm, is developing a mobile social communication platform that allows anyone to create personalized virtual spaces, either to connect with friends or to offer experiences to an audience.

On the basis of end-use, the global metaverse market is segmented into fashion, media & entertainment, education, aerospace & defense, and others. The media and entertainment segment is expected to account for the largest share of the global metaverse market over the next ten years, owing to the growth of the gaming industry worldwide. Although the metaverse is not yet well developed in the service of industry, its ability to deepen the digital continuity of companies, i.e. the digital availability of all product information throughout their life cycle, could also radically change the sector. Thanks to augmented reality but also to blockchain, which allows data to be authenticated and traced, the metaverse could be a real-time access point to all the information needed to manage production sites.

In short, the metaverse is not simply a new technological innovation, but rather a new technological paradigm that allows all the technologies that make up tomorrow’s digital world to converge: augmented reality, virtual reality, blockchain, NFT, etc. By enabling companies to develop their digital continuity at both the production and consumption levels, the metaverse provides them with a digital backbone that is destined to become indispensable in many sectors. However, concerns about data privacy and security in metaverse environments, user identity issues, and difficulties in convincing users to use payment systems in these environments are some of the key factors that are expected to hamper metaverse growth.

2 Key Figures

The metaverse revenue is expected to reach $828.95 bn by 2028

The global metaverse market size reached $47 bn in 2020 and is expected to register a revenue CAGR of 43.3% during the period 2020-2028 – Emergen Research

+1,300 funded companies in virtual reality

registered by Tracxn

3 startups to draw inspiration from

This week, we identified three startups that we can draw inspiration from: Gleechi, Powder and Scapin’.

Gleechi

The startup is specialized in developing software that makes it easy to animate realistic hand movement and interaction in games and virtual reality.

Powder

The French startup Powder aims to be a “metaverse camera”. It uses video recording and artificial intelligence to automatically detect and capture players’ highlights and share them with other players on the network.

Scapin’

The Stockholm-based startup has developed a mobile social communication platform that allows anyone to create personalised virtual spaces, either to connect with friends or to offer experiences to an audience.

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123Fab #70

1 topic, 2 key figures, 3 startups to draw inspiration from

As the world is looking for solutions to curb CO2 emissions and mitigate climate change, Carbon Capture, Utilization and Storage (CCUS) technologies have raised hope, especially for heavy emitters in the Oil & Gas or manufacturing sectors. The principle is simple: CO2 produced when burning fossil fuel is captured before it enters the atmosphere, and either safely stored or used as feedstock to make other products. The major obstacle regarding this technology is its cost. The capture step itself is costly, both financially and energetically, especially for low CO2 concentration flows. For carbon storage, the captured CO2 needs to be compressed and shipped to its destination and stored. All of these steps are also costly and energy-intensive, resulting in relatively low adoption. Carbon reuse solutions attempt to reduce the overall cost of the process by using CO2 to produce valuable products that can be sold.

There are a wide variety of solutions to valorize captured CO2: from producing carbon fibers using algae to producing building materials such as cement, concrete, or insulation foam, the possibilities are numerous. One utilization scheme seems to have caught the attention of investors and entrepreneurs: the production of carbon-neutral fuel using CO2. 

Some startups are focusing on reducing emissions in the transportation sector by producing an alternative fuel from captured CO2. Caphenia produces jet fuel using CO2 and methane as feedstock through a plasma process. Their process could reduce CO2 emissions by 92% compared to fossil fuel consumption. Other startups like Nordic Electrofuel produce it using CO2 and hydrogen produced from water electrolysis using renewable electricity. CERT systems has developed catalysts for electrodes used in electrolyzers to enhance the conversion rate of their CO2 to fuel electrochemical conversion technology.

Methanol is also an attractive alternative fuel that can be used to power cars and ships. Liquid wind and Carbon Recycling International are using CO2 and hydrogen to produce renewable methanol for maritime and road transport. Methanol has been proven to be a viable fuel for ships, and if mixed with petrol, it could also be used for cars, reducing the footprint of road transport as well. In addition, it is a widely used feedstock for the production of plastics, plywood, and synthetic fibers. The use of renewable methanol could also reduce emissions from the chemical industry.

CO2-based fuels are attracting the attention of large companies and partnerships are booming. Last month, Eramet signed a partnership agreement with Nordic Electrofuel to use the CO2 produced in Eramet’s furnace to produce kerosene. Carbon Recycling International joined forces with Johnson Matthey for catalyst supply in CRI’s methanol plants. Earlier this year, Siemens Energy partnered with Liquid Wind. Siemens will provide large electrolyzers that will produce hydrogen for liquid wind’s process.

While alternative fuels seem to be a good solution for decarbonizing the transportation industry, they have one major drawback: all these processes are very energy-intensive. Hydrogen production, which is mostly done through water electrolysis, and plasma technology both consume large amounts of electricity. These processes could use renewable energy, but it is not easy to fund such a large amount and, depending on the energy mix of the available electricity, the ecological impact varies greatly by location. These costs add to the CO2 capture cost, as the removal of CO2 from air or flue gas is very energy-intensive, lowering the ecological benefits of the process. More than that, when this fuel will be consumed, the captured CO2 is released into the atmosphere. The ecological outcome is not strictly zero as the CO2 produced in the first place is eventually released, it simply adds another step in the CO2 use cycle. Although alternative fuels appear to be crucial for lowering emissions of the transportation sector, captured industrial emissions remain untouched by the process, and reducing the number of travels remains the most efficient way to cut down emissions in the transport industry.

2 Key Figures

The global CCUS market is expected to reach $2.97 bn by 2025

The global CCUS market was estimated at $1.3 billion in 2020 and is expected to reach $2.97 billion by 2025, at a CAGR of 19.6% according to PR Newswire

20+ CO2 to fuel startups

registered by Tracxn since 2015

3 startups to draw inspiration from

This week, we identified three startups that we can draw inspiration from: Nordic Electrofuel, CERT systems and Carbon Recycling International.

Nordic Electrofuel

Producer of carbon-neutral, synthetic fuels and other fossil replacement products intended to offer renewable electrical energy to the transport sector. The company specializes in generating synthetic gas by separating CO and H2 gas through electrolysis and offers solutions to distribute and store stranded electrical energy and the conversion of renewable electric energy into liquid e-fuels.

CERT Systems

CERT Systems is a Toronto-based startup that develop a CO2 utilization system intended to catalyze the closure of the carbon cycle. The company’s system utilizes membrane electrode assembly (MEA) electrochemical cells and converts carbon dioxide into renewable fuels and chemical feedstocks using only water and electricity.

Carbon Recycling International

Carbon Recycling International produce renewable methanol intended to enhance resource efficiency by carbon recycling. Their renewable methanol is produced from carbon dioxide, hydrogen and electricity for energy storage, fuel applications and efficiency enhancement.

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