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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123Fab #69

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

According to the International Energy Agency’s “Net Zero by 2050” report, the world will need 2,600 GW of hydropower capacity by mid-century to have a chance of keeping the global temperature rise below 1.5 degrees Celsius. In other words, we would need to build the same amount of hydropower capacity in the next 30 years as we did in the previous 100.

Hydropower is now the leading renewable source and the third largest source of electricity production in the world (15.8% in 2018) behind coal (38%) and gas (23.2%). Over the last 20 years, total hydropower capacity has increased by 70% globally, but its share of total generation has remained stable due to the growth of wind, solar PV, coal and natural gas. Hydropower is the harnessing of energy from a flow of water by means of a turbine connected to a generator, turning it into electricity. Most hydropower plants store water in a dam, which is controlled by a valve to measure the amount of water flowing. More recently, new uses of water as an energy producer have emerged, including the use of seas and oceans for tidal or wave energy.

Emerging and developing economies have led the global hydropower growth since the 1970s, primarily through public sector investment in large-scale plants. Throughout the life cycle of a power plant, hydropower offers great advantages, notably some of the lowest greenhouse gas emissions per unit of energy generated. Moreover, security and flexibility are increased with this mode of electricity production. Power plants can generally ramp up and down their electricity production very quickly, allowing them to adapt to variations in demand or to offset fluctuations in the supply of other sources of electricity. Today, hydropower plants account for almost 30% of the world’s flexible electricity supply capacity. It therefore appears that the role of renewable energy will become increasingly important over the next few decades, both as a low-carbon provider of electricity and to support the huge growth in wind and solar power needed to limit global warming.

In advanced economies, the share of hydropower in electricity generation has been declining and plants are ageing. The business case for hydropower plants has deteriorated due to high infrastructure costs and lack of certainty about long-term revenues. There are also real challenges related to complex permitting procedures, environmental and social acceptance, and long construction periods. In China, the construction of the Three Gorges Dam, which began in 1994, displaced 1.4 million people and has reportedly caused numerous landslides and earthquakes since. Current power plants are also ageing: in North America, the average hydropower plant is nearly 50 years old; in Europe, the average is 45 years old. There is a real need for modernization but also for updated sustainability standards and measures to minimise risk and reduce project delivery times.

In response, governments are stepping up to provide funding and new innovations are emerging. On November 5th, the U.S. House of Representatives passed the more than $1.2 trillion Infrastructure Investment and Jobs Act, which includes over $900M in waterpower incentives for new and existing hydropower, pumped storage, and marine energy. Several startups also have innovated in the face of complex infrastructure development procedures and heavy budget requirements. For example, Natel Energy uses pre-existing facilities and discontinue dam building to make hydropower less costly. It also developed a turbine that requires less cement and steel and which is safer for aquatic life. Dutch startup Blade Runner Energy offers a scalable micro-hydro solution which harnesses the energy of the natural flow of water without needing to build a dam. Others use the power of water differently, especially to avoid the social and environmental problems caused by dams. This is the case of Hace, which is developing a patented process that takes advantage of the immense reserve of wave energy to produce electricity with integrated energy stations. Another example is the US-based startup Big Moon, which is developing a technology to harness tidal energy without installing anything on the ocean floor or creating a negative impact on the environment. The longevity of these installations is often superior than that of wind turbines and solar panels. Tidal plants can last about four times as long. However, the initial costs of this type of project are still very high (for example, the Sihwa Lake Tidal Power Station cost $560m) and research has not yet fully determined the impact of the project, including EMF emissions on marine life.

Thus we see that hydropower has a key potential for the future in the constitution of a new energy mix and in support of other renewable energies. Government action will be crucial in setting their priorities and willingness to modernise the current fleet, especially for China which is set to remain the single largest hydropower market through 2030, accounting for 40% of global capacity growth (the International Energy Agency). Policy measures that provide more certainty about future revenues can reduce investment risks and ensure the economic viability of hydropower projects. But today, this support remains limited, with less than 30 countries targeting hydropower.

2 Key Figures

Global hydropower capacity is set to increase by 17%, or 230 GW, between 2021 and 2030

The International Energy Agency

132 hydropower funded companies

registered by Tracxn in 2019

3 startups to draw inspiration from

This week, we identified three startups that we can draw inspiration from: Blade Runner Energy, Hace and Big Moon.

Blade Runner Energy

The startup develops micro-hydro energy services intended to generate sustainable power. This small-scale hydropower generation can provide energy to hard-to-reach and remote areas, and to achieve faster returns on investment, due to the low capital costs of building these plants.

Hace

The startup technology intends to generate electricity by harnessing the power of ocean waves. It offers modular organization of wave power generators makes it possible to create wave power parks or to build coastal protection dikes that integrate energy production.

Big Moon

The startup created a tidal energy technology designed to harness tidal energy without negatively impacting the environment. The solution does not use any type of electrical component and does not attach equipment to the seafloor.

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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. 

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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

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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

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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).

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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 #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.

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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 #56

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

Since the first flight using blended biofuel took off in 2008, more than 150,000 flights have used biofuels. In May 2021, Air France-KLM flew an Airbus A350 from Paris to Montreal with a 16% mix of sustainable aviation fuel (SAF) in its fuel tanks, produced in France by Total from used cooking oil. This example illustrates the growing concern to limit aviation-related emissions. Indeed, aviation will account for 3.5% of global energy-related CO2 emissions by 2030, compared to just over 2.5% today. Thus, the development and promotion of biofuels for aviation will be essential to reducing carbon emissions of the industry.

Biofuels are fuels derived immediately from living matter, plants or waste. Depending on the type of biomass used, they could lower CO2 emissions by 20–98% compared to conventional jet fuel. The biofuels with the highest emission savings are those derived from photosynthetic algae (98% savings, not yet a mature technology) and non-food crops and forest residues (91-95% savings), taking into account the GHG emissions associated with the production of algal oil but not with transportation.

Worldwide, major aviation players are showing an increased interest in this technology. As a first step, some pioneering airports have already integrated bio-jet fuels into their refueling systems. Today, five airports have regular biofuel distribution: Bergen, Brisbane, Los Angeles, Oslo and Stockholm. Long-term agreements between airlines (like KLM and Lufthansa) and biofuel producers are another sign of their commitment to the use of SAF. They now cumulatively cover around 6 billion liters of fuel (1.6% of total annual consumption).

Meeting this demand will require further production facilities. This is why some airlines have invested directly in aviation biofuel refinery projects or biofuel startups. The first example is a partnership announced in October 2020, between Virgin Atlantic and LanzaTech, on renewable jet fuel that will power planes from Shanghai and Delhi to Heathrow within two to three years. Recently, United Airlines has also joined the biofuel race, investing $30 million in Fulcrum BioEnergy. United Airlines will be both an investor and a regular customer of Fulcrum, a California-based company that has developed a technology turning municipal waste into sustainable aviation fuel. In January 2021, Qatar Airways announced it would invest in Byogy Renewables, a US startup that produces advanced biofuels (jet fuel and gasoline) from any source of bioethanol.

Corporate investment in biofuels is a rising and necessary trend, as most aviation biofuel production pathways are not yet mature. The four major ones are:

• HEFA bio-jets (Hydroprocessed Esters and Fatty Acids): a process that uses oleochemical feedstocks such as oilseed crops and fats. It is currently the only technically mature and commercialized process. It is therefore expected that HEFA will be the main biofuel used in aviation in the short to medium term.
• FT fuels (gasification through the FischerTropsch): a method that uses municipal solid waste or woody biomass as feedstock.
• SIP fuels (Synthesised Iso-Paraffinic): biochemical conversion processes, such as the biological conversion of biomass (sugars, starches or lignocellulose-derived feedstocks) into longer chain alcohols and hydrocarbons.
• ATJ fuels (Alcohol-to-jet based on isobutanol): a process that includes “hybrid” thermochemical or biochemical technologies; the fermentation of synthesis gas; and catalytic reforming of sugars or carbohydrates.

However, before we witness the widespread use of biofuels in aviation, several challenges must be overcome. The major constraint is the high cost of the technologies compared to fossil-based jet fuels. For instance, the production cost of HEFA is about $1,500/ton of bio-jet fuels, and fuel costs are the largest overhead expense for airlines, accounting for an average of  22% of direct costs. Secondly, to fulfill the potential of aviation biofuels, further technological developments are needed.

Policy frameworks have a key role to play in this crucial early phase of SAF industry development. Without a supportive policy landscape, the aviation industry is unlikely to scale biofuel consumption to levels where costs fall and SAF becomes self-sustaining.

To conclude, the aviation biofuels market is likely to grow exponentially. Several startups are seizing this opportunity and collaborating with larger players, such as airlines. Government support, through policies and financial incentives, is essential to secure this growth potential and pave the way for more decarbonized air transport. 

2 Key Figures

43 sustainable aviation fuel startups

registered by Traxcn

The sustainable aviation fuel market is expected to reach $15.3bn by 2030

The global aviation biofuel market was estimated at $66 million in 2020 and is expected to reach $15.3 billion by 2025, at a CAGR of 72.4%

3 startups to draw inspiration from

This week, we identified three startups that we can draw inspiration from: BioRefly, Sundrop Fuels, and Fulcrum Bio-energy.

BioRefly

The German startup BioRefly is an operator of an industrial scale demonstration biorefinery to produce lignin-based aviation fuels. It is developing technologies allowing an increased and more economical utilization of selected renewable lignocellulosic raw materials for the production of second-generation biofuel for aviation.

Sundrop Fuels

This US startup is the developer of renewable energy technology. It is using a proprietary high-temperature bioreforming system to transform cellulosic biomass into clean, affordable, renewable gasoline, jet and diesel fuels. It uses a high-temperature solar gasification process that turns natural gas combined with any plant material into liquid transportation biofuels.

Fulcrum

Fulcrum is an American startup that produces sustainable fuel intended to reduce reliance on imported oil. The company’s technology involves a process of converting municipal solid waste into low-carbon transportation, enabling clients to provide customers with low-cost and low-carbon drop-in fuel that is competitively priced with traditional petroleum fuel.

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