123Fab #68

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

It’s omnipresent. Decarbonization is underway in many sectors: micromobility, automotive, rail… In last week’s 123Fab, we even saw that a new generation of tractors is making inroads in agriculture. But what about the sector of maritime shipping?

Cargo and container ships, which refer to merchant ships carrying goods and materials from one port to another, are responsible for nearly 1 billion metric tons of carbon each year. Although the industry accounts for a relatively small share of global CO2 emissions — between 2% and 3% according to S&P Global Platts Analytics — scientists have projected that maritime shipping could account for 17% of total emissions by 2050. That’s why the International Maritime Organization (IMO) has set a target of decarbonizing global shipping by at least 50% from 2008 levels by 2050.

Yet many were left disappointed by the Glasgow Climat Pact, the outcome of the COP26 climate conference. Although steps forward have been made since the Paris agreement, which did not include maritime shipping at all, the only concrete outcome that came out of it is the ‘Clydebank Declaration’. The signatory countries agreed to support the creation of at least six green corridors by 2025. Initial analyses focused on two promising candidates for developing green corridors: the iron ore route from Australia to Japan, and container shipping from Asia to Europe. But out of the 50,000 ships currently plying international shipping lanes, only 200 will be green by 2030. This reflects the costs and complexity of decarbonizing shipping. Indeed, alternative fuels are more expensive than conventional heavy fuel oils, they have a lower volumetric density requiring the manufacture of larger tanks and the fragmentation of the industry is such that the incentive to invest in these technologies is low. Maersk, which owns the largest shipping fleet, announced that it would only have 8 ships ready to run on methanol by 2025.  The lack of ambition on shipping emissions has thus been strongly criticized, with COP26 seen as a missed opportunity to push the industry for more rigorous commitments. 

In the maritime industry, a number of measures can support its decarbonization, resulting in multiple possible pathways. In other words, there is no silver bullet to a low-carbon trajectory.  However, only a combination of technological innovation, operational measures and alternative fuels will deliver sufficient CO2 reductions.

• Technological innovation — these refer to innovations applied to ships to help increase their energy efficiency. These can relate to the weight of ships (lighter materials), the design of ships, ways to reduce friction (hull coatings and air purification) and ways to recover energy (propeller upgrades and heat recovery).
• Operational measures — these refer to ways in which ships are operated. 4 types of measures can be distinguished: speed, ship size, ship-port interface (lower waiting time before entering a port) and onshore power (change their power supply from vessel’s engines to shore-based electricity).
• Alternative fuels and energy — numerous fuels exist to replace bunker fuels such as liquified natural gas (LNG), hydrogen, ammonia, methanol.

When it comes to alternative fuels and energy many possible options are currently being explored. While deep-sea vessels must store large amounts of energy to maintain a constant speed over long distances, the options are more varied for short-haul vessels, including the possible use of electric or hybrid-electric power and propulsion systems. Overall, there is a lack of technology when it comes to alternative fuels. If shipowners have begun to convert existing ships to run on LNG, it still emits methane. Biofuels are another solution that is becoming increasingly available as a marine fuel. Unlike LNG, it can be a carbon-neutral solution, but mass-scale biofuel production is not sustainable, which puts it in the same position as liquefied petroleum gas (LPG): a good solution but not a panacea. In the long-term, technological solutions, such as green hydrogen and ammonia, are expected to take hold. Intrinsically carbon-free, these fuels produce zero CO2 emissions when sourced renewably. In fact, the shipping industry is banking heavily on ammonia. Unlike hydrogen, it does not need to be stored in high-pressure tanks or cryogenic dewars and its energy density is 10 times that of a lithium-ion battery. However, for ammonia-fueled shipping to become a reality, port operators and fuel suppliers must build vast bunkering infrastructure so that ships can fill ammonia tanks wherever they dock. And technologies are still underway.

But decarbonization, while still in its infancy, is making progress. In November 2020, Yara claimed to have delivered the world’s first net-zero, battery-powered autonomous container ship to Norway. While it had been in the port of Horten ever since, undergoing further preparations for autonomous operation, the Yara Birkeland completed its first trip to Oslo (around 70km) at the beginning of the week. Alongside the construction of the ship, Yara has also initiated the development of green ammonia. As the world’s largest producer of fertilizers, and thus of ammonia, it is striving to push decarbonization in the shipping industry forward. At the same time, startups are positioning themselves on the topic. Greek startup DeepSea Technologies provides a vessel emission tracking solution, Norwegian startup TECO 2030 develops modular hydrogen fuels and American startup Prometheus Fuels removes CO2 from the air and turns it into zero-net carbon gasoline. In September of this year, Maersk announced its investment in the American startup.

In short, discussions around decarbonizing the shipping sector are emerging yet most measures focus on making ship design and the operation of vessels more energy efficient. To achieve the decarbonization of the industry, mechanisms increasing the use of alternative propulsion technologies will need to be strengthened. However, regulation and financial incentives will be necessary to make them technologically feasible and their adoption commercially viable, to reduce the current price gap between conventional ship fuel and more sustainable options.

2 Key Figures

At least $1 trillion in investments needed to decarbonize shipping 

According to the Global Maritime Forum, the scale of cumulative investment needed between 2030 and 2050 to achieve the IMO target of reducing carbon emissions from shipping by at least 50% by 2050, is approximately USD 1-1.4 trillion, or on average between USD 50- 70 billion annually for 20 years.

1,177 Maritime startups

registered by Tracxn

3 startups to draw inspiration from

This week, we identified three startups that we can draw inspiration from: Prometheus Fuels, Hy2Gen and Shone.

Prometheus Fuels 

The startup extracts CO2 from the air, creating hydrocarbon fuel with zero impact on greenhouse gas levels, enabling cars, planes and ships to replace fossil fuels with high-performance zero-net carbon fuels made from CO2 that’s already in the air.

Hy2Gen

The startup develops, builds and operates plants for the production of green hydrogen and hydrogen-based e-fuels. Hy2Gen recently joined forces with Swiss commodity trader Trafiguar to investigate green ammonia as a marine fuel.

Shone

The startup has developed a shipping automation platform that uses AI to provide a digital co-pilot to improve the safety and energy efficiency of maritime operations, enabling reductions in fuel consumption and carbon emissions.

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123Fab #67

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

Within weeks, in January 2021, the 215 million euros allocated to the conversion of agricultural equipment in France were distributed by the government as part of the 2020-2022 stimulus plan. This measure, implemented in early 2021 following the COVID19 crisis, consisted of investment assistance for the replacement of old and inefficient equipment and the acquisition of environmentally efficient equipment. Indeed, agriculture is one of the world’s biggest greenhouse gas contributors. The sector is projected to account for about 20% of total global emissions in the next 20 years (Reuters). According to a McKinsey report, of the 25 measures identified to reduce emissions, replacing tractors and combine harvesters that use fossil fuels with lower-emission vehicles would have the biggest impact, although no vehicles are commercially available now on the market. From a more global perspective, electrification is truly underway. Fully electric cars now account for 7.5% of new sales in Europe, and truck manufacturers are also moving towards sustainable mobility.

Despite the lag in the electrification of agricultural machinery, particularly the heavier ones, the seeds are sown for the electrification of farming vehicles and multiple companies already have been working on electric-powered prototypes. According to IDTechEx, the market for electric vehicles in the construction, agriculture and mining sectors could reach $149 billion in 2030. John Deere, an industry leader, has proposed a conceptual model of electric tractors that could allow autonomous operation, increasing efficiency and accuracy. Cable power could even eliminate the need for onboard batteries,  so an electric version would not weigh more than its fossil-fueled counterpart. Japanese company Kubota also presented models that allow for autonomous operation and can adjust to the height in the field. The company’s concept tractor was also equipped with an onboard solar battery. California-based Solectrac already offers small tractors and agricultural utility vehicles in the 30 and 40 horsepower range. Other relatively small tractor options are offered by Fendt, Rigitrac, Escorts and others. At the same time, almost all aerial drones are electric. Research is focusing on small electric ground-based autonomous vehicles, such as robots that sense the plant environment. They could be particularly helpful for family farms in developing regions that still use non-mechanized methods for agriculture.

Some startups are also tackling this market and fundraising is on the rise. Silicon Valley-based company Monarch Tractor, which creates electric robotic tractors to make farming safer and more sustainable, raised $20 million in March as it prepares to start deliveries. The startup calls its tractor “driver optional” as it can perform programmed tasks without a driver. It is designed with roll and collision prevention and can collect and analyze data. Startup Blue White Robotics, which notably retrofits traditional tractors into fully autonomous vehicles by adding sensors and AI models, has raised $37 million in Series B funding a month ago. In the last 2 years, $1.5 billion has been funded in AI for the agriculture sector according to Tracxn. At the beginning of October, startup Sabi Agri, which develops electric agricultural equipment for agro-ecology, was named a winning company in the EIC (European Innovation Council) Accelerator program. It creates lightweight autonomous tractors that avoid degradation and compaction of cultivated soil and reduce emissions. Autonomous robots and tractors are booming, and the challenges of electrification are being met little by little by large groups as well as startups.

But there is a big step to take from prototypes and limited applications to widespread adoption. Electric engines face major logistical challenges, particularly with regard to charging, replacing diesel-burning machines in the field. Indeed, the use of agricultural machines is not very regular but requires great autonomy, they are often used a few weeks per year (16 days in average) but with durations that can go up to 15 hours per day. Planting time is limited, and the efficiency of the machines is therefore essential. Machine weight is also crucial to avoid soil compaction and Wi-Fi connectivity is an additional challenge for all onboard AI mechanisms. Beyond the technical constraints, an agricultural machine is expensive, machinery capital amounts to approximately 11% of farm income on average, and the frequency of fleet renewal does not allow for a generalized adoption as quickly as for utility vehicles. That is why niche areas for smaller electric machines and robotic equipment could probably expand more quickly because they have fewer constraints.

Agriculture today faces many mobility challenges. A balance must be struck to serve the goal of increasing yields and productivity while reducing emissions and managing land more sustainably. Beyond the modernization of machines, the development of AI, especially embedded, can contribute to this objective by providing more real-time data analysis, facilitating farmers’ decision-making and thus improving machine action.

2 Key Figures

The global agricultural machinery market is anticipated to reach $194.94 billion by 2026, registering a CAGR of 5.4% between 2020 and 2026

The market was valued at $138.59 billion in 2020 – Mordor Intelligence

+300 funded companies in AI for Agriculture

Tracxn – 2021

3 startups to draw inspiration from

This week, we identified three startups that we can draw inspiration from: Blue White Robotics, Sabi Agri and Monarch Tractor.

Blue White Robotics

The startup has developed a robot-as-a-service platform intended to deliver remote control capabilities for land and air autonomous robots. The platform transforms existing fleets, manages both air and ground robots, and collects data seamlessly, thereby enabling businesses to improve efficiency and provide actionable insights.

Sabi Agri

The startup has developed electric agricultural equipment for agro-ecology. The light autonomous tractors will be able to replace all thermal tractors, regardless of their power in multiple agricultural projects (viticulture, field crops, breeding…). They enable farmers to incorporate cost-effective agro-ecological farming practices.

Monarch

The startup has developed electric tractors intended to make the transition to productive and sustainable farming practices. The company’s tractors run on artificial intelligence and are equipped with sensors and 360° cameras to implement, identify and eliminate plant ailments and estimate yields, enabling farmers to enhance the existing growing operations.

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EIT Health and Biogen are joining forces to launch ‘neurotechprize’ to advance promising technology solutions addressing Alzheimer’s Disease (AD) from around the globe.

Through the neurotechprize, they aim to accelerate the most promising solutions and technologies addressing the challenge of AD in Germany.

Aster Fab is thrilled to have supported Biogen and the neurotechlab in the design and organization of the prize. 

**

4 AREAS OF FOCUS

EIT Health and Biogen have identified four areas of focus that could make a difference in the life of people diagnosed with AD:

1. Accelerating the diagnostic pathway

2. Improving disease monitoring

3. Easing burden on patients

4. Maintaining quality of life

**

THE PROGRAM

The program is aimed at health entrepreneurs in the neurotech space seeking support in the validation of their ideas and developing business goals in a supportive and enriching environment.

The program offers participants:

• A tailored three-month journey focused on your team’s objectives, established individually at the beginning of the program
• Intensive mentoring from top experts in business and science
• Access to industry stakeholders
• 10,000€ funding to support participation of founders and/or key team members in the journey

**

ADMISSION PROCESS

Shortlisted teams will be invited for an online interview directly by EIT Health staff and Biogen experts. The interviews will take place between 20-26 January 2022. Shortlisted teams will be able to book the time for the interview via link provided in the invitation.

The application score and the result of the online interview will be combined to draw up a list of teams selected to pitch live in front of the Jury.

Up to 15 shortlisted teams (Semi-Finalists) will be invited to pitch their solution in front of the Jury on February 1st, 2022 to secure their spot in the program. The Jury will select up-to 10 teams (Finalists) who will be invited to enter the program (Finalists).

**

THE PRIZE

The Jury will be able to award up-to two prizes:

• 1st Prize of 100,000€ for the winning solution
• 2nd Prize of 50,000€ for the runner-up

123Fab #66

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

German technology group Bosch announced a few days ago that it would invest more than 400 million euros in microchip production in Germany and Malaysia next year. Similarly, Intel, the largest maker of processor chips for PCs and data centers, said last month that it could invest up to 80 billion euros in Europe over the next decade. These announcements follow the global chip shortage that has plagued the world since the end of the Covid-19 crisis. This shortage is the result of an unforeseen increase in demand, plant closures due to the pandemic, chip stockpiling due to geopolitical tensions, and extreme weather events. It is primarily affecting the consumer electronics and the automotive sectors, with losses that could reach $210 billion according to AlixPartners. Intel and TSMC, two of the world’s largest semiconductor companies, have suggested that the global chip shortage could continue until 2022 or beyond.

Chip is a general term for semiconductor component-based products and is the carrier of integrated circuits, which are divided into wafers. Semiconductors are materials that lie between a conductor and an insulator: they manage and control the flow of current in electronics. They are often made from raw materials such as silicon and germanium, gallium arsenide or silicon carbide. Production is a complex process, taking more than three months and involving giant factories, dust-free rooms, multi-million-dollar machines, molten tin and lasers. To reduce costs, almost all players have specialized in one part of their production chain or in certain types of components.

At a time when chip shortages are hitting many industries, this constraint seems to be ushering the semiconductor industry into a new era of innovation. Big companies are doing what they can to boost production, such as Taiwan Semiconductor Manufacturing Company and Samsung Electronics, for example, which this year achieved the increasingly difficult feat of placing more transistors on each wafer. In May, IBM announced that it had achieved a record level of miniaturization in chip manufacturing (2 nanometers). Recent years have also been marked by the emergence of more and more startups in the semiconductor landscape. While for years venture capitalists considered semiconductor companies too expensive to start, in 2020 they invested more than $12 billion in 407 chip-related companies, according to CB Insights. That is more than double what the industry received in 2019 and eight times the total in 2016. Cerebras, a startup that sells massive artificial intelligence processors that span an entire wafer, for example, has attracted more than $475 million. The firm claims 2.6 trillion transistors in its latest chip, an impressive number compared to the 5.4 billion transistors in the most powerful conventional processor. In April, SambaNova raised $676 million for its reconfigurable artificial intelligence chips. This growth may be related to the need to design new chips capable of running increasingly complex artificial intelligence models, especially for neural networks and convolution.

Beyond chip production and manufacturing, startups are trying to tackle the complexity of semiconductor creation by improving planning and productivity in fabs. Startup Flexciton has created software based on mixed integer linear programming for better factory scheduling. This reduces the time it takes the plant to produce each semiconductor by 7-10%, which would translate into savings of $3-5 million per month. The startup raised £15 million in August. Motivo, a five-year-old startup, is creating software to speed up chip design using AI. The product examines, among other things, the layout of the chip, the underlying RTL code that makes the chip work and the netlist. The company’s ultimate goal is to cut the chip design process from three years to three months. In August, the company announced a $12 million Series A round.

The current chip shortage is causing quite a stir and is pushing companies of all sizes to innovate in order to increase production and meet the growing demand. States are also mobilizing for their sovereignty: South Korea announced a push worth $450-billion over ten years, the United States is pushing legislation worth $52 billion, and the EU could plow up to $160-billion into its semiconductor sector. The current situation reveals our dependence on these critical resources and also shows us what is in store for us in the next 30 years. Indeed, the exploitable resources of certain rare metals, which are essential for the production of chips, could be exhausted within a few decades. Other threats to the sector include climate change. In Taiwan, the world’s number one chipmaker, TSMC, which alone uses 156,000 tons of water per day, had to innovate to cope with the historic drought last spring. Minimizing waste and making progress on chip recycling will be crucial for the future.

2 Key Figures

The global semiconductor market is expected to reach $778 billion by 2026 with a CAGR of 7.7% from 2021 to 2026

Reportlinker

+400 semiconductor startups

Crunchbase – 2021

3 startups to draw inspiration from

This week, we identified three startups that we can draw inspiration from: Untether IA, Flexciton and Motivo.

Untether AI

The startup is specialized in the production of AI acceleration chips for data centers, network edge equipment and embedded systems. It combines the eco-efficiency of near-memory computing and the robustness of digital processing for neural network inference. Intel has participated in the financing of the startup.

Flexciton

The startup has developed a solution to improve the efficiency and productivity of fab manufacturing processes. Using AI-powered mathematical algorithms and Mixed Integer Linear Programming, the solution analyse real-time data to make the best choices possible and decide which actions need to be taken to optimise production.

Motivo

The startup has developed a platform to to accelerate chip design utilizing a learning-on-graph methodology for automated data-driven feature extraction. This enables the platform to recognize and find patterns in the layout and make millions of improvements automatically and in an intelligent way all within the design rules.

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123Fab #65

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

In March 2020, the European Commission presented an industrial policy to support the twin green and digital transitions to make the EU industry more competitive globally, and strengthen Europe’s open strategic autonomy. Indeed, today’s industry, and more particularly the manufacturing sector, has a real problem of productivity and difficulties to innovate, especially in comparison with other sectors. As an illustration, the manufacturing sector in the US has experienced the steepest decline in productivity growth of any sector, according to Economics TD. In the EU, productivity growth for industrial companies fell from an average of 2.9% over the 1996–2005 period to just 1.6% percent from 2006–2015. This can be explained by the fact that digitalization in manufacturing is low compared to sectors such as transportation, utilities or finance. Manufacturing also represents less than 10% of venture capital investments in the US and EU. This looks set to change, as Industrial Tech Investment levels have grown 8.8x since 2014, nearly three times faster than overall European VC investment. AI-based use-cases can really help improve the productivity of manufacturing companies.

AI can improve the productivity of the manufacturing sector at different levels. First, it can help to optimize processes. Machines become self-optimized systems that adjust their parameters in real-time by continuously analyzing and learning from current and historical data. It can also be used for predictive maintenance by continuously analyzing machine data to predict and avoid breakdowns. AI may help to automate quality control by using image or time-series sensor data to identify defects and deviations in product features. Finally, AI can be used to train cobots and enable them to perform a wide range of tasks.

Some large companies have started to integrate AI into their operations to improve productivity. For example, Mitsubishi Electric has developed its own system internally to adjust the parameters of its industrial robots. It has reduced process times by 90%. But overall, according to PWC, only about 9% of manufacturing companies have successfully implemented AI in their operations. They face certain difficulties, particularly in the development and deployment of AI models. Factory data can come from many sources and in many forms, making data collection and integration challenging. Labeling manufacturing data is also a cumbersome and time-consuming process. It often requires domain knowledge which means that manufacturing companies may be reluctant to work with labeling service providers. There are also many challenges in terms of security, processing power, scalability and explainability.

This is why startups seem to have a role to play alongside manufacturers. Startups can help in a variety of activities: improve data sourcing, improve data labelling and quality, facilitate model deployment and provide final use cases. Some players have already joined forces with startups such as Alcoa, which partnered with the UK startup Senseye to build a predictive maintenance solution. In total, Alcoa has reduced unplanned downtime by nearly 20%. A French Tier-1 automotive manufacturer partnered with the startup Scortex to automate the inspection of painted plastic parts. Scortex’s solution reduced inspection time by 80%. There is also a growing appetite among venture capital firms to invest in this sector. Cognite, which provides an IIoT platform as well as use-cases such as predictive maintenance, raised €128m in May 2021, Kili Technology which enables large companies to transform their raw data into high-quality annotated data raised €21m in June 2021…

However, the market is young, small and niche, which explains the low number of startups that manage to emerge. For data sourcing, hyperscalers like Amazon or Microsoft or incumbents like Siemens are competing with startups, and in-house solutions are being developed by industrial companies. With the exception of time-series data labeling and quality monitoring, there is no need for a specific tool for manufacturing and a generalist tool can be applied (H2O.ai for example is an AI Cloud Platform designed to operate in any environment).

In short, it is clear that AI and more specifically machine learning are full of promise for the manufacturing sector, to improve processes and boost productivity. However, the market is still not yet mature and developed. Startups attempting to conquer the market seem to have difficulty scaling or to competing with hyperscalers like Amazon. As a result, generalist tools are being applied to the manufacturing sector, especially in the deployment of models. It is likely that such tools will see a stronger adoption from the manufacturing sector as it matures, but the first step is to improve data sourcing, annotation and quality monitoring.

2 Key Figures

The Global Artificial Intelligence in Manufacturing Market is expected to reach $11.5 Bn by 2027, with a growing CAGR of 27.2%

The market was valued at $2.1bn in 2020 – AllTheResearch (Sept 2021)

318 funded companies in AI in manufacturing

$3.1bn total funding and $1.5bn funding in last 2 years – Tracxn (Sept 2021)

3 startups to draw inspiration from

This week, we identified three startups that we can draw inspiration from: Scortex, Senseye and Kili technology.

Scortex

The startup has developed a a machine intelligence platform designed to set up a solution for the factory production line. It transforms quality inspection and offers an automated defect detection and analytics solution to more accurately identify defective products in real-time.

Senseye

The startup has developed a cloud-based machine monitoring and diagnostics platform intended to deliver a way to predict machine failure. The platform automatically tracks and sends depreciation data of machinery and notifies manufacturers about machine conditions.

Kili technology

The startup has developed an annotation platform intended to create and manage data sets for artificial intelligence training. The platform allows for easy management of the training data for annotation, quality control, data management and labeling workforce.

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123Fab #64

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

Copper plays a major role in the global economy. From thermal and electrical conductivity to corrosion resistance, copper is an extremely versatile metal that has long contributed to the way the world works. By way of illustration, it is used in numerous industries such as telecommunications (cables, wires), electronics (printed circuits, chips), transportation (injection systems, braking circuits), construction (pipes, tubing), currency, etc. In fact, one tonne of copper brings functionality to 40 cars, powers 100,000 mobile phones, runs 400 computers and distributes electricity to 30 homes.

This year, the price of copper broke the $10,000 per ton mark for the first time in 10 years. This indicates an expected increase in global demand, which should benefit Chile, Peru and China (47% of global production). Described as the ‘new oil’, demand for copper has been driven in recent years by its vital role in a number of rapidly growing industries, such as electric vehicle batteries and semiconductor wiring. According to Citigroup Global Markets, demand related to renewable power generation, battery storage, electric vehicles, charging stations and related grid infrastructure accounts for about 20% of copper consumption. Thus, copper is lauded as an essential, structural metal for the energy transition. However, the recent price surge threatens to make decarbonization more costly. At the same time, the global average copper ore grade is expected to decrease, as mines with higher ore grades become exhausted. As a result, there is growing concern about the availability of copper, and several studies have sought to estimate the peak of global copper production using Hubbert’s model, which has been estimated to be between 8 and 40 years from now.

Given the importance of copper, innovation is beginning to spur in the industry. Continuous research and testing of new concepts are being deployed to make processes more efficient, minimize environmental impact, lower energy consumption and improve design. In 2015, Aurus III, a $65 million venture fund focused solely on copper mining innovation, was launched in Chile. Among the startups they have invested in are Ceibo (formerly known as Aguamarina), which focuses on soil stabilization through biomineralization, and Scarab Recovery Technologies, which is centered on recovering valuable materials from tailings. Recycling is also receiving increased interest because copper – like gold, silver and other non-ferrous metals – suffers no loss in quality from the process, making it infinitely repeatable. In addition, it requires up to 85% less energy than primary production. Hamburg-based Aurubis is one of the companies leading the charge on the recycling of copper and other metals by a pyrometallurgy method. This year it announced that it is investing €27 million in a new recycling plant at its Beerse country site. The ASPA plant will process anode sludge, a valuable intermediate product from the electrolytic refining of copper, from the recycling sites in Beerse and Lünen, Germany. New Zealand startup Mint Innovation, however, uses a unique biohydrometallurgy method. Launched in 2016, it has developed a low-cost biotech process to recover precious metals from e-waste. It raised NZ$20 million last year to build its first two biorefineries in Sydney, Australia and northwest England.

It should be noted, however, that the copper recycling business requires considerable financial resources, particularly in terms of working capital and cash flow. This is what led to the near bankruptcy and takeover of the French factory M.Lego, which employs 110 people. Likewise, while secondary production of refined copper has increased in volume and percentage, it is growing at a much slower rate than the waste stockpile. This is primarily due to the fact that the sectors with the highest recycling rates (construction and infrastructure) have their copper tied up for several decades due to the life of the structures built. In contrast, consumer goods, which have a shorter life span, are only recycled at rates between 25 and 40%

In short, copper is projected to be a critical metal in the coming years, with a vital role to play in the energy transition. The gradual depletion of its reserves and dependence on certain countries is driving companies to innovate in the field of recycling, in order to make it both more profitable and sustainable. However, the copper industry will need strong government support to stimulate innovation to avoid a gradual shortage that would contribute to a sharp increase in prices.

2 Key Figures

About 50% of the copper used in Europe comes from recycling

International Copper Study Group (ICSG)

Copper consumption is predicted to rise more than 40% by 2035 compared to 2018 

European Copper Institute (2018)

3 startups to draw inspiration from

This week, we identified three startups that we can draw inspiration from: Mint Innovation, Sortera Alloys and Weeecycling.

Mint Innovation

The New-Zealand startup has scaled biological processes that recover valuable metals like copper from electronic waste and other residues. The company’s firm uses microbes to selectively and rapidly recover precious metals from various low concentration materials under environmentally benign conditions.

Sortera Alloys

The American startup has developed a sorting system designed to reuse metals recovered from end-of-life products. The company’s system sorts metal by its type and alloy composition through a combination of X-ray fluorescence and optical sensor fusion, artificial intelligence (AI) and machine learning image processing.

Weeecycling

The French startup WeeeCycling has set up a circular economy loop for recycling strategic metals. The company buys electrical and electronic scrap in the world and, via its Morphosis brand, manufactured products. The rare metals are then extracted through a thermal and electrochemical stage to be resold for reuse.

Please fill out our contact form so that we can get back to you very quickly with our product offer.

123Fab #63

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

On Sunday, October 10, ten European Union countries signed a declaration supporting nuclear energy and its role in the fight against global warming. The debate has been raging for many years on the use of this energy and some countries such as Germany and Austria are opposed to it, as well as many NGOs that consider it a risky technology. This initiative comes at a time of rising energy prices, but also ahead of the European Commission’s classification of energies, which will open up access to green finance and give a competitive advantage to sectors recognized as virtuous for the climate and the environment.

Nuclear energy production involves three main stages: uranium mining, production in nuclear power plants and the treatment of radioactive waste.

Uranium ore is found in uranium mines, mainly in the following countries: Kazakhstan, Canada, Australia, Namibia and Niger. After purification, the uranium is enclosed in a nuclear reactor, which uses the principle of nuclear fission to produce electricity. In this way, uranium nuclei replace the fossil fuels (coal, oil) used in thermal power plants. When a neutron strikes a uranium nucleus, it breaks up, releasing other neutrons and energy in the form of heat. The neutrons released will collide with other uranium nuclei, and so on: the reaction is self-perpetuating, and we speak of a chain reaction. The heat released during the chain reaction is used to produce water vapor. In the same way as in thermal power plants, this steam drives a turbine and its alternator to produce electricity. Once the uranium has been used, there remains a material that can no longer be used to fuel reactors, but which remains radioactive. This is nuclear waste, which is sent to a processing plant, where it is sorted according to its degree of radioactivity. Then, nuclear waste is stored or buried deep underground.

The great advantage of nuclear power is its ability to produce large quantities of energy at a moderate cost. Moreover, this energy is available all year round and the life span of the power plants is quite long (40 years). In terms of CO2 emissions, nuclear power only emits water vapor. Consequently being classified as a low-carbon energy source together with renewables.

However, nuclear power also comes with very complex issues. Among the most frequently cited drawbacks is the management of nuclear waste in the long run, which is still radioactive and harmful to health. Similarly, in case of an accident, the consequences on health can be serious, as shown by the example of the Chernobyl or Fukushima nuclear accidents. Moreover, uranium resources are not unlimited, as can be seen in France, where the mines have been almost exhausted, which leads to energy dependence on other states. In a much shorter term, the construction of nuclear plants is facing drastic challenges as cost and planning are hardly met by the commissioners, hence a trend to also look at smaller reactor technologies.

An increasing number of startups and organizations have entered the nuclear energy business to address these issues. One such case is Transmutex, a Swiss startup, which is developing cutting-edge technologies to transform nuclear waste into clean energy. Its first plant is planned for 2030. Recently, the firm also announced the development of a thorium reactor. Another notable initiative is that of Oklo, a Silicon Valley-based startup, that wants to build tiny nuclear reactors that can run off spent fuel from much bigger, conventional nuclear reactors. Large groups such as EDF in France, with the Nuward project, are also turning to the construction of mini-reactors, with much shorter production times and greater modularity.

The recent litany of announcements in the field of nuclear fusion has highlighted the effervescence of the sector, driven by public research institutes and start-ups. According to the think-tank Zenon Project, about 30 start-ups worldwide are seriously working on this subject. Nuclear fusion consists of transforming two light atoms into a heavier atom to release energy. To do this, a medium must be heated to over 150 million degrees, which requires a lot of energy. This process does not produce any carbon dioxide and uses a very small amount of fuel readily available in nature, unlike nuclear fission of uranium. The fuels necessary for its operation are present in large quantities on earth. Moreover, it generates little radioactive waste with a short life span, and the risks of explosion or runaway are zero. With the ITER project, 35 countries are engaged in the construction of the largest tokamak ever conceived, a machine that is intended to demonstrate that fusion can be used on a large scale to produce electricity.

Although nuclear power has been strongly criticized, it seems necessary, particularly in large consumer countries, to support the energy transition and reduce CO2 emissions. This is why a new wave of countries is now investing in nuclear power, such as England and Finland. Coupled with the development of renewable and low-carbon energies, it has every chance of being a major player in future decarbonization.

2 Key Figures

World’s installed nuclear capacity by 2050: 792 GW

International Atomic Energy Agency

27 companies in nuclear fusion with $592M invested in the last two years 

Tracxn

3 startups to draw inspiration from

This week, we identified three startups that we can draw inspiration from: Transmutex, Commonwealth Fusion Systems and ARC Clean Energy.

Transmutex

Geneva-based start-up Transmutex is developing technologies combining a proton accelerator and a subcritical thorium reactor (an alternative fuel to uranium) to transmute the most dangerous nuclear waste into stable elements for producing electricity and hydrogen.

Commonwealth Fusion Systems

The American startup intended to combine proven physics with magnet technology to accelerate the path to commercial fusion energy. The company engages in the design and building of fusion machines that provide limitless and clean fusion energy.

ARC Clean Energy

The Canadian startup intended to offer inherently safe, reliable, and economical carbon-free power. The company focuses on developing an advanced small modular reactor (SMR) which has a simple, modular design providing 100 megawatts of electricity that is cost-competitive with fossil fuels.

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123Fab #61

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

According to a McKinsey report, the prediction that machines and automation would destroy more jobs than they would create has proven wrong. On the contrary, even the most advanced factories in terms of automation, the “lighthouses”, are hiring heavily. However, as many as 375 million workers may need to switch occupational categories and learn new skills. At the same time, recruiting and retaining skilled workers is becoming increasingly difficult for manufacturers. According to a study by Deloitte and The Manufacturing Institute, U.S manufacturers say it is 36% harder to find the right talent today than it was in 2018, even as the unemployment rate has nearly doubled the number of available workers. This highlights the gap between the skills manufacturers are looking for and the skills available in the labour market. As many as 2.1mn manufacturing jobs will be unfilled by 2030 and this shortage could ultimately cost the U.S. economy up to $1tr dollars.

In its traditional sense, a blue-collar worker refers to workers who perform strenuous manual labor and mindless tasks, typically in agriculture, manufacturing, construction, logistics, or maintenance. Nowadays, these activities are typically performed by machines and new-age jobs in these sectors have evolved with the advancement in technology and robotics. They now require a certain level of digital literacy to successfully manage tasks and ensure intelligent workflows. Today, the focus is on building a workforce that can operate, repair and maintain technology rather than perform physical tasks. This knowledge gap makes it difficult for both historical blue-collar workers to find jobs and for manufacturers to recruit qualified people for the job. And the desire of many Western countries to reshore some of their activities and downsize the supply chain may increase the need for these new blue-collars.

This significant shortfall of medium-skilled jobs requiring a certain level of training could be addressed by investing more in further skilling and upskilling the blue-collar workforce. Many startups are trying to tackle this problem and are offering solutions to address this worker shortage and knowledge gap. They are supporting the development of blue-collar skills through training, sometimes even putting them in touch with employers. Some focus directly on training and knowledge management tools, others more on intelligent equipment to assist them in their daily tasks. There are also platforms for planning assignments and fostering coordination according to individual skills. Recently, Indian startup Apna became a unicorn in less than two years. The startup connects blue-collar workers with each other, as well as with employers and offers training to upskill. Large groups are also turning to these startups to skill their employees and improve their recruitment process. Toyota, Casio, Shell and several others, for example,  use RapL, a micro-learning workforce training platform. Beyond technical, practical or digital knowledge, training can also include use cases on company safety procedures or on new standards like EHS (environment, health, safety) and ESG (environment, social, governance).

Beyond the benefits to the company, employee training has many advantages. According to Gartner, in 2018, 70% of employees reported not mastering the skills they need for their jobs. Structured training for blue-collar workers will not only diversify their skill sets but will also motivate them to be more productive while increasing their analytical thinking and problem-solving abilities.

While investment in blue-collar training seems necessary to address the worker shortages, it comes at a significant cost and does not directly guarantee productivity. Globally, the average cost per employee is $1,252, according to the Association for Talent Development’s 2016 State of the Industry Report. On the other hand, training via digital platforms or trainers does not ensure that employees will have the necessary skills to master the new technologies and truly progress.

With the shortage of blue-collar workers, training is becoming a priority, both for in-house employees and for recruiting new workers. Many large groups are teaming up with startups or external organizations to undertake these trainings. This market is now very important for blue-collars in factories, logistics and construction but it is increasingly expanding to other sectors and topics such as data, artificial intelligence or machine learning.

2 Key Figures

3,100+ startups in Corporate Learning 

More than one-third of the funding has been raised in the last years (2019-2020) according to Tracxn

$26.2 billion on internal and external training initiatives for new and existing employees

 According to The Manufacturing Institute, manufacturers spent $26.2 billion in 2020 on internal and external training initiatives for new and existing employees.

3 startups to draw inspiration from

This week, we identified three startups that we can draw inspiration from: Knowron, How.FM and Betterplace.

Knowron

The German startup created an AI-based digital assistant for industrial workers. It provides on-spot diagnosis of machine problems, automated workflows using NLP technology, and real-time information on the machine.

How.FM

The German startup How.FM is a multi-language training software built to onboard, upskill, and support the blue-collar workforce. The digital coach can cover off everything from health and safety, and compliance training, to actual work procedures such as packing processes.

Betterplace

The Indian startup helps companies with a all-in-one lifecycle platform intended to offer digital support for blue-collar workforce management.The plateform proposes to upskill every employee with a chatbot based app.

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