Context 

Our client has long been a leading manufacturer of machinery for the construction, agricultural and logistics sectors.

More specifically, in recent years, the group has been developing electric machinery. Within the framework of this strategic orientation, our client has a double challenge: to invest in innovative technologies and to develop its electric vehicle business in order to present a competitive offer that meets the market’s needs.

Aster Fab’s mission was to support our client in the closing of a deal with a modular battery startup. In addition, Aster Fab has been commissioned to work on other M&A deals carried out by the group.

Mission

• Valuation of the startup using five different methods (comparable company analysis, precedent transactions, DCF analysis, R&D headcount, replacement cost value)
• Structuring the acquisition proposal by drafting the letter of intent setting out the terms, governance, management package, performance criteria, etc
• Assistance, coordination and negotiation with all stakeholders throughout the process until the completion of the transaction
• Support in the preparation of separate documents for the governance bodies: Audit Comittee, Strategic Committee and Board of Directors
• Coordination of the due diligence and the closing of the deal

Key figures

123Fab #95

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

Generating renewable power is vital to the world’s decarbonization efforts. But so too will be developing the energy storage systems that are required at times when the intermittency of solar and wind power prevents energy production. According to the International Energy Agency (IEA)’s Net Zero scenario, installed grid-scale battery storage capacity expands 44-fold between 2021 and 2030 to 680 GW.

Amongst the various stationary battery energy systems, lithium-ion batteries have been stealing the spotlight in recent few years due to their success in e-mobility. While they account for 90% of battery applications, even lithium iron phosphate, the most competitive type of lithium-ion battery, is beginning to look economically uncompetitive compared to emerging, alternative solutions. Last week’s announcement by BASF Stationary Energy Storage GmbH (wholly owned subsidiary of BASF SE) and G-Philos (Korea’s leader in power-to-gas technology) to intensify their cooperation on sodium-sulfur (NAS) stationary batteries is an example of this.

But what are the other alternatives in the space?

A number of companies are working on new battery chemistries based on zinc, iron and other low-cost materials. Fundraising in the startup ecosystem is a strong signal:

• Form Energy (United States) raised $450M in October 2022 and has developed an iron-air battery
• H2 (South Korea) raised $15M in October 2021 and has developed a vandium redox flox battery
• EnerVenue (United States) raised $137M in September 2021 and has developed a nickel-hydrogen battery
• Ambri (United States) raised $144M in August 2021 and has developed a high-temperature calcium-antimony battery 
• Sila NanoTechnologies (United States) raised $600M in January 2021 and has developed a silicon battery
• Tiamat (France) raised $4.2M in October 2018 and has developed a sodium-ion battery

Researchers are also exploring other chemistries such as aluminium-ion batteries (paper) and potassium-ion batteries (paper). Indeed, aluminium is one of the most abundant materials on earth (reducing the cost) and has demonstrated great potential for high energy density systems. Although at a more embryonic stage, the significant advantage of potassium is also its abundance.

Many of these batteries already rival lithium-ion in capabilities but are lagging in capital investiture and manufacturing infrastructure, playing catch-up with an already established sector of the industry. Thus, the European Commission has notably launched the NAIADES (sodium-ion batteries), SOLSTICE (sodium-zinc batteries) and CARBAT (calcium-ion batteries) projects to help fund the research in these spaces. Live installations are also visible. France-based startup Tiamat, developer of a sodium-ion battery, has joined forces with Plastic Omnium in the automotive industry and with Startec to extend applications to other hybrid industries such as rail and aerospace. While Schlumberger has invested and signed a collaboration agreement with EnerVenue, developer of a nickel-hydrogen battery.

In short, lithium-ion batteries will continue to dominate battery technology for stationary energy storage in the short term, driven by the EV sector. But in the long term, alternatives to lithium-ion are set to play an increasingly important role in stationary energy battery storage systems.

2 Key Figures

The stationary battery market is projected to reach $224.3 bn by 2030

The market was valued at $31.2 bn in 2021 and is projected to reach $224.3 bn by 2030, at a CAGR of 24.9%

>30 funded companies

Tracxn

3 startups to draw inspiration from

Form Energy

US-based startup founded in 2009 that has developed an iron-air energy storage system for renewable energy storage. Claims to store energy at less than 1/10th the cost of lithium-ion battery technology.

H2

South Korea-based startup founded in 2010 that has developed a vandium redox flox battery. This month the startup begun construction of a factory with 330MWh annual manufacturing capacity in the city of Gyeryong-si, one year after the 20MWh project in California.

Tiamat

France-based startup founded in 2017 that has developed a sodium-ion battery. Partnerships include Plastic Omnium and Startec.

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123Fab #94

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

In September, Munich-based startup Orcan Energy raised €28.5M from investors, including TiLT capital (French private equity investment) and existing investor Air Liquid Venture Capital. The startup’s technology is designed to turn waste heat into clean electricity. With 502 modules worldwide, Orcan Energy is the world’s second largest supplier of waste heat-to-power technologies, behind Ormat, a power generator that has been operating internationally since 1965 with 1,226 solutions.

This fundraising round reflects the trend of increasing global demand for waste heat recovery solutions. Indeed, the global market was valued at $59.4 bn in 2020 and is projected to reach $114.7 bn by 2028, at a CAGR of 9.2%. The main drivers are rising fuel and electricity prices, as well as the imperative to reduce greenhouse gas emissions across all industrial sectors. Indeed, waste heat is a primary source of recoverable energy loss, offering significant potential for greenhouse gas emissions reduction. Total waste heat emissions account for 23 –53% of global input energy, with a range of theoretical recovery potentials of 6–12% (Oxford University).

Industrial waste heat is, by definition, the excess heat produced during industrial processes which is releasted into the environment. Residual heat sources are transferred by conduction, convection and radiation. There are three categories: losses at high-temperature (> 400°C) which mostly arise from the direct combustion processes; at medium-temperature (200 – 400°C) from the exhaust gases in combustion units; at low-temperature (< 200°C) from parts, products and equipment of the treatment units. Low-temperature losses represent the largest share accounting for a total of 66%, 29% for medium-temperature and 5% for high-temperature (Interreg Central Europe).

But which waste heat recovery (WHR) technologies exist? And what are their maturity?

Technologies can be categorized as passive or active technologies. This depends on whether external energy input is required or not.

• Heat exchange (passive): contains the technologies through which the recovered waste heat is used directly at the same or lower temperature (e.g., plate heat exchanger, thermal energy storage systems)
• Waste heat to heat (active): through which recovered waste heat is used to produce thermal energy at a higher temperature level (e.g., heat pumps, mechanical steam compression);
• Waste heat to cold (active): contains the technologies through which recovered waste heat is used to produce cooling energy (e.g., absorption and adsorption chillers);
• Waste heat to power (active): contains the technologies through which recovered waste heat is converted into electricity (e.g., Organic Rankine cycles, Kalina cycles, Supercritical CO2 cycles, etc.);

The underlined technologies are the most representative of their category.

Numerous industries can benefit from waste heat recovery systems such as glass manufacturing, cement manufacturing, iron and steel manufacturing, aluminum production, metal casting, industrial boilers, ethylene furnaces, etc. As such, pilot projects have been developed by leading players in the space.

Cement manufacturing

CEMEX has joined forces with Orcan Energy for the establishment of a waste heat recovery plant at its Rüdersdorf, Brandenburg, cement plant. Orcan Energy will supply six generator modules for the installation using its Organic Rankine Cycle (ORC) technology.

Chemical and petrochemical

BASF and MAN Energy Solutions have entered into a strategic partnership to pursue the construction of an industrial-scale heat pump at the BASF site in Ludwigshafen.

Glass manufacturing

Beginning of the year, Saint-Gobain announced its plans to install heat recovery technology at its gypsum wallboard plant in Vancouver.

Iron and steel manufacturing

Tata Steel UK took part in the H2020-funded project “Industrial thermal energy recovery conversion and management”.

Yet, there are practical limits (technical and economic) with respect to the recovery potential of those losses. Factors that influence the feasibility of WHR options include heat quantity, heat temperature (quality), composition and logistical constraints like operating schedules and availability. As such, there are no particular barriers to heat recovery at high temperatures: this process is more feasible, mainly due to the availability of more mature technologies and the greater energetic efficiencies involved, which results in a more immediate economic return. As regards to low temperatures, the situation is different; due to its low exergy, low-grade waste heat is more difficult to capture & use.

In short, waste heat recovery has significant potential to increase energy efficiency in industry. Accounting for two thirds of the share, many low-grade heat recovery technologies have been developed in the last decade such as Organic Rankine Cycles (ORC), heat pumps (HP), various heat exchangers, and many other technologies under development. To accelerate their adoption, as well as to educate stakeholders on the topic, numerous Horizon Europe-funded projects have flourished. These include TASIO, LOWUP, EU-MERCI and more.

2 Key Figures

The waste heat recovery market is projected to reach $114.7 bn by 2028

The market was valued at $59.4 bn in 2020 and is projected to reach $114.7 bn by 2028, at a CAGR of 9.2%

38 funded companies

Tracxn

3 startups to draw inspiration from

Orcan Energy

German-based startup founded in 2008 that uses Organic Rankine Cycle (ORC) technology to turn low-temperature waste heat into clean electricity. They have sold more than 500 modules globally.

FutraHeat

England-based startup founded in 2021 that uses high-temperature heat pumps called TurboClaw® to turn waste heat into steam. FutraHeat has joined forces with Honeywell.

Water Horizon

France-based startup founded in 2017 that uses a thermochemical process to recover and store waste heat into mobile thermal batteries. Water Horizon was an EDF Pulse laureate in 2020.

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123Fab #87

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

Last week, Canada Steamship Lines’ latest diesel-electric self-unloading vessel – the MV Nukumi – entered service with Windsor Salt. In order to reduce the vessel’s greenhouse gas emissions by 25% and air pollutants (substances that have a detrimental effect on living organisms) by 80%, the MV Nukumi was fitted with a twin-fin diesel-electric propulsion system. According to the International Council on Clean Transportation, maritime shipping could account for 17% of total emissions by 2050. For several years, the IMO (the International Maritime Organization) has been tightening the requirements for international shipping in order to achieve its goal of reducing the sector’s carbon intensity by 40% by 2030. In response, several initiatives and technologies, including fuels, are being developed to comply with the new rules that are gradually coming into force.

Electricity-based solutions

Solutions based on electric power (batteries, motor) have been widely developed over the last few years, such as the Yara Birkeland, the first autonomous battery-powered container ship that set sail last year in Norway to transport 120 containers over 7.5 nautical miles. Startups are flocking to the sector, with total funding of more than $360 million. Fleetzero, which builds battery-electric cargo ships, has already raised $3.5 million. The startup is increasing the efficiency of existing diesel ships by converting them into battery-electric vessels and is pioneering innovation with the MVE7 – an electric ship designed for transpacific cargo delivery.

However, for the time being, due to energy storage constraints, the electric solution can only be relevant for niche use, such as ferries with fairly short and stable routes, multiple recharging times at the quayside, or for coastal and river transport, and not for long-distance ships. Other alternatives seem more appropriate for maritime transport and it is likely that a transition to hybrid engines will be necessary to reduce carbon emissions in the sector.

Other non-combustion engine solutions

Several technologies show that there are alternatives to power generation by internal combustion engines, but they are not suitable for all uses, including long-distance shipping.

• Wind: Hybrid electric propulsion combined with renewable energies such as wind has the best total carbon footprint, especially for small ships. The Nantes-based start-up Neoline has the ambition to develop commercial lines operated with ships designed to use wind. Scheduled to enter service in 2024, the first Neoliner will be a 136-meter long, 24-meter wide ship capable of carrying 5,000 tonnes of cargo. The sails, combined with a reduction in commercial speed will reduce energy requirements by 90% compared to a traditional cargo ship of the same size.
• Hydrogen: Hydrogen stored onboard powers a fuel cell that produces the electricity needed for propulsion. While this technology meets the objectives of reducing CO2 emissions, it nevertheless shifts the problem to the production of hydrogen, 95% of which is currently produced from fossil fuels on land (Futura Planète). Moreover, the stability of onboard storage still raises technical reservations. The startup Boundary Layer Technologies combines the known physics of hydrofoil with patented designs to build 160-container ships that run on hydrogen. The ARGO cargo ship is powered by liquid H2 and travels at twice the speed of conventional containerships. It uses direct routes to reduce overall transit times and be competitive with air freight.

New fuels for internal combustion engines

For the next 30 years, the predominance of internal combustion engines for ship propulsion remains the most credible scenario. But it is possible to improve the environmental balance by changing the fuels.

• MGO – Maritime Gas Oil: The aim is to integrate a growing proportion of fuels from agricultural production, mainly ethyl, or recycled petroleum products such as waste oils or recycled vegetable oils. However, production is costly if not subsidized (collection, reprocessing) and the impact on emissions remains low. On the other hand, in the case of fuels derived from agricultural production, the ecological cost is highly controversial. The startup Mash Makes was a finalist of the 2022 World-Changing Ideas Awards. It specializes in converting various agricultural residues into carbon-negative fuel products that meet the necessary international maritime standards.
• Ammonia: Compared to hydrogen, ammonia has a higher energy density and is more available in ports. In addition, the production cost per tonne is very low, and this solution can meet the targets set by the IMO. However, its mass production as a fuel has been ruled out until now because of its toxicity and low flammability. It is massively manufactured from fossil fuels, which also shifts the environmental problem. The most promising combustion tests for this technology are based on a combination of 70% ammonia and 30% MGO. Brooklyn-based startup Amogy is developing an ammonia power system for ships and heavy-duty road transportation. The technology uses liquid ammonia and converts it into hydrogen gas, which then runs through a fuel cell. The one-year-old company says it plans to launch a small demonstration vessel by early 2023, along with large road vehicles.
• Methanol: Methanol is a promising alternative fuel for reducing emissions and improving the environmental performance of shipping. It contains no sulfur and, because it is a clean-burning alcohol, emissions of NOx and particulate matter from combustion are low. However, the use of methanol requires certain levels of safety and engine adaptation as well as increased bunkering capacity on board.
• LNG – Liquefied natural gas – coupled with MGO: LNG can drastically reduce combustion emissions, including carbon emissions, which is its great advantage. Moreover, it requires only minor modifications to current propulsion technologies, which means that emission reduction targets can be met quickly and with limited investment. However, this technology relies soleyl on fossil resources.

Large groups are also targeting this segment. In August 2021, Maersk ordered eight green methanol-fuelled ocean-going vessels for delivery from the first quarter of 2024. They have also invested in WasteFuel, another Californian start-up making greener biomethanol from waste. Through the Ammonia 2-4 project, a strong consortium of shipping players including Wärtsilä, C-Job, DNV, and MSC aims to develop demonstrators of two- and four-stroke marine engines running on ammonia.

Finally, numerous alternatives are being developed, notably under pressure from the IMO and numerous supra-national bodies, including the Brussels Commission. While for small ships and routes, 100% electric or renewable energy-based alternatives are being developed, for freight transport, hybrid engines seem more feasible for the coming years. But questions remain: batteries have a limited life expectancy and their production requires many critical materials. The overall carbon impact of these new fuels is therefore far from zero.

2 Key Figures

Global marine fuel market is expected to reach a total market size of $156 billion in 2025.

Research And Markets

+80 startups manufacturing electric ships

Traxcn

3 startups to draw inspiration from

Fleetzero

The startup is building battery-electric ships that will sail between major neighbouring ports. The plans call for unloading containers of cargo and nearly depleted batteries, and then loading containers of replacement cargo and freshly recharged batteries. This method would allow the ships to carry a relatively small fleet of batteries.

Neoline

The startup is working on decarbonized merchant shipping, powered mainly by sail. The first Neoliner will be capable of carrying 5,000 tonnes of cargo. The sails, combined with a reduction in commercial speed will reduce energy requirements by 90% compared to a traditional cargo ship of the same size.

Mash Makes

The startup is specialized in the environmentally friendly conversion of various agricultural residues into fuel products in accordance with international standards. The biofuel is compliant in a B11 blend with DMA (or  MGO) directly from the pyrolysis machine. The fuel has been validated at Alfa Laval’s Marine Test and Training Center.

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123Fab #85

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

Last week, a team of Dutch researchers succeeded in developing a unidirectional superconductor. This approach could lead to a substitute for semiconductors and develop computers 300 to 400 times faster than those of today. More than just faster information transmission, the use of superconductors instead of ordinary semiconductors could save up to 10% of all Western energy reserves according to the Netherlands Research Council (NWO). They are also very valuable for the future in solving energy efficiency issues.

Superconductivity is a phenomenon of zero electrical resistance and expulsion of magnetic fields that occurs in certain materials when they are cooled below their critical temperature. In other words, this creates very strong magnetic fields and ensures that no energy is lost when superconducting materials carry or produce energy. There are two types of superconductors: Low-temperature superconductors (LTS) are those whose critical temperature is below -196.2°C and high-temperature superconductors (HTS) are those whose critical temperature is above -196.2°C. LTS critical temperature is relatively close to absolute zero, which is a problem because materials have to be cooled with expensive technologies such as liquid helium cooling. Its scope is therefore rather limited when a large quantity of material needs to be cooled. On the contrary, HTS have critical temperatures above the liquefaction temperature of nitrogen. They can therefore be more easily cooled with the latter (LN2), as is already done in other sectors such as IT or food processing.

There are many diverse applications for superconductors. To begin with, for the energy sector, the use of superconductors has great potential along the value chain.

• Conversion: High-temperature superconducting generators or engines are lighter and more compact than traditional ones and allow high efficiency.
• Transmission: An average of 5% of the electricity consumed is lost during transport. Thanks to superconducting materials, and their resistance-free current conduction, higher energy yields resulting from reduced energy losses in are achieved.
• Network security: Superconducting fault current limiters (FCLs) act as protective devices during power transmission, inserting an impedance into a conductor when there is a sudden surge of current on the transmission networks.
• Storage: Superconducting Magnetic Energy Storage (SMES) stores electricity from the grid in the magnetic field of a coil consisting of a superconducting wire with zero energy losses.

Other applications also exist, notably in health and transport and several technologies use the ability of superconductors to generate large magnetic fields. Indeed, superconductivity has played a key role in medical imaging as it is at the heart of MRI technology, providing intense, stable, and uniform magnetic fields. Superconductors can also replace conventional electromagnets in magnetic levitation trains (maglev), i.e. monorail trains that use magnetic forces rail to avoid energy losses due to friction with the rail. Last year, Chinese engineers presented a train of this type capable of traveling at 620 km/h.

However, several challenges remain to make superconductors the key to energy efficiency. First, superconducting wires and films are still expensive compared to conventional electrical cables because their manufacturing process is very complex. Indeed, HTS are ceramics, therefore difficult to manufacture and LTS are metals, easy to manufacture but difficult to cool. Moreover, the cooling infrastructure needed to exploit the capacities of superconductors is also expensive (even with liquid nitrogen for HTS).

Although the sector is not yet very mature, several large companies and start-ups are developing initiatives to overcome these limitations and benefit from this promising technology. Late last year, Nexans, a leading manufacturer of superconductor cables, installed and commissioned its technology for power grid system provider American Superconductor (AMSC) for Chicago’s Resilient Electric Grid project. In the same way, the startup SuperNode is developing superconducting cables to provide a medium-voltage direct current (MVDC) transmission system. One use case for the startup is to connect an offshore wind farm to the grid using superconductors as the mechanism of energy transfer. They make it possible to place renewable energy sources at the most strategic location without worrying about transporting the energy, since it is done without loss. Another example is the British company Epoch Wires, which manufactures patented superconducting wire. Their production process creates low-cost, durable magnesium di-boride superconducting wires that have the potential to provide superconductivity at temperatures of 40K (-233°C) for magnetic resonance imaging and power applications. For the cooling process, the startup Veir raised $10 million in funding last year to further develop a  cooling system for high voltage superconducting transmission lines.

The prospects for superconductors, studied since the 1980s, are significant and very promising. Its benefits could revolutionize the energy industry. Indeed, having a non-resistive conductor would save a huge amount of energy on the existing grid installation. They could also contribute to the development of remote renewable energy sources by ensuring lossless energy transmission. However, deployments remain limited today due to the cost of the infrastructure and the complexity of the large scale.

2 Key Figures

The superconductors market is expected to reach $8.78B in 2025 at a CAGR of 13.08%

The Business Research Company

+$100M raised in the last six years in the superconductor market

Traxcn

3 startups to draw inspiration from

SuperNode

The Irish startup designs and delivers superconducting connection systems to connect renewable generation and increase grid interconnection in mature markets. It manufactures superconductor cables that can carry huge amounts of power in a much smaller surface area than conventional cables and require significantly less infrastructure, materials, and space.

Epoch Wires

The UK startup is specializing in manufacturing superconductor wires using environmentally friendly, abundant, and cheap material, namely Magnesium Diboride (MgB2). The company’s patent-pending technology offers high capacity production of infinitely long wire at one of the lowest market prices.

Veir

The US start-up has developed a passive evaporative cryocooling solution that enables reliable and cost-effective transmission of superconducting cables over very long distances. It provides 20 times more cooling power per kilogram of nitrogen flow than mechanical subcooling.

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123Fab #79

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

In early March, the price of natural gas in Europe hit an all-time high due to tensions between Ukraine and Russia, reaching €345 per megawatt-hour. In response, the EU proposed the REPowerEU plan, to increase the resilience of its energy system, and plans to cut imports from Russia by two-thirds this year. Alternative energy sources like solar, hydrogen and next-generation nuclear are in the spotlight. To that extent, solar is seen as one of the fastest replacements for Russia’s supply. The Commission estimates that by accelerating the rollout of rooftop solar photovoltaic systems to 15TWh this year, the EU could save an additional 2.5 billion cubic meters (bcm) of gas (155 bcm of gas was imported from Russia in 2021). Overall, solar energy seems to be an essential way for Europe to wean itself off Russian gas and it has become a priority for governments in a very short time. Start-ups and players in the sector have understood this well.

Solar energy is already well represented in the European energy mix, reaching a record 10% of total electricity last summer with a 34% increase in solar PV capacity compared to 2020. It is particularly popular with companies and individuals for its profitability. In 2020, 16% of the French photovoltaic park was composed of residential roofs, with a power of less than 9 kWp. Depending on the technology of the panels used, their power, the geographical area of implantation, the orientation, the inclination or the materials of the solar kit, the yield of the photovoltaic panels can vary from 6 to 24%. This puts them slightly below wind turbine efficiencies, which vary from 20 to 35%. The issue of efficiency is closely related to the recurring questions about the reliability of solar panels. Indeed, any change in the availability and intensity of sunlight has an impact. Technology has addressed this issue with battery storage options for off-grid systems. By storing excess solar energy in batteries, energy can continue to be distributed when there is no sun to power the panels.

Startups have played a key role in this sector in providing answers to the various limitations of solar panels, especially from a BtoC perspective. This is the case of Pika Energy, acquired in 2019 by Generac, which offers a complete platform dedicated to energy management and storage. The startup ensures an efficient flow of energy between the smart battery, the solar cells and the building, to produce energy continuously. Another well-known limitation to the efficiency of photovoltaics is the dust and dirt that can accumulate on the solar panels. In response to this, the startup Pellucere has developed the MoreSun product, which adds an anti-reflection and anti-fouling silica screen to solar panels. Field tests of the startup’s solution have shown energy gains ranging from 3.5% to 4.1%. Another startup, Inti-Tech has developed semi-autonomous and autonomous cleaning systems that clean solar farms without the need for infrastructure changes, with absolutely no water and fewer people than traditional cleaning methods.

The growing need for solar energy is also leading to increased fundraising in the sector, notably through the creation of funds dedicated to the transition from fossil fuels to clean energy, such as Gaia Impact Fund or Energy Transition Ventures. Germany-based company Enpal has raised the most venture capital so far, following a €150 million investment by Japanese venture capital fund SoftBank six months ago. Its BtoC solution is full stack: it sources its solar panels, modules, batteries and inverters directly from China, employs all the installers and has also created its own software. Another startup, Otovo, raised €30m in February. Its solution is a kind of marketplace: Otovo does not install its own solar panels but instead uses local contractors.

It seems that the crisis in Ukraine has been an accelerator for renewable energies, and in particular solar energy. Green energy has jumped really quickly from the ESG budget to the national security budget. This is especially true for countries that were highly dependent on eastern energy, such as Germany, where total solar PV capacity reached 59 gigawatts in 2021 and is expected to rise to 200 gigawatts in 2030. This opens many doors for players in the sector, especially in the installation and recycling of these solar panels, which will become a central issue for the next decade.

2 Key Figures

The solar energy market is expected to reach $200 billion by 2026, growing at a CAGR of 20% between 2020 and 2026 

It was estimated to be worth $50 billion in 2019 – GlobeNewswire

+1,300 Funding Rounds in solar energy

In the last 10 years – Tracxn 2021

3 startups to draw inspiration from

Inti-Tech

The chilean startup has developed an electro-mechanic device to make more efficient the operation of solar photovoltaic plants. It offers an automatic, high-frequency and eco-friendly cleaning service to stop the efficiency loss caused by dirt over the surface of PV modules. One robot per array of panels is permanently installed to clean with no human intervention.

Enpal

The German startup uses AI for provisioning and installing solar panels. The whole provisioning part of the installation is done remotely with AI-based algorithm. An app allows consumers to measure their energy gathering, storage and consumption, and to pay for services. They pay rent on the solar panels and for the all-round service.

Otovo

The Norwegian startup connects solar energy installers with homeowners who want to put solar panels on their roof. The solution analyses the potential of any home and finds the best price and installer for customers based on an automatic bidding process between available installers. Otovo has more than 12,000 customers and expects to add 10,000 new customers in 2022.

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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 #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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