In the fight against climate change, individuals are often told by governments, researchers and companies that we can help by eating less meat, using lower-carbon transport and buying more sustainable products.
These changes can make a difference but, given that the industry sector is responsible for around a quarter of global energy system CO₂ emissions, changes need to be made at the industry level too.
One of the mechanisms for doing so is the New Energy Challenge, an annual competition for startups and scaleups in renewable energy, jointly organised by Rockstart, Shell, Unknown Group and YES!Delft. This year’s theme was industrial sustainability.
“While consumers are increasingly making more sustainable choices, such as installing solar panels, flying less, or switching to electric vehicles, the majority of the decarbonisation battle must be won in the industrial sector,” says Jermaine Saaltink, investment director of Shell Ventures, the VC arm of Shell, and one of the jury members of the competition.
While the New Energy Challenge is framed as a competition, Akilah LeBlanc, general manager of commercial innovation partnerships at Shell and another jury member, describes it as a collaboration opportunity which helps startups to scale, and Shell to identify technologies with the potential to accelerate the decarbonisation of energy systems.
“We know that one corporation or one startup can’t do things alone. We each bring strength to the table, whether it’s capital, expertise, ideation or speed,” she says. “Marrying those strengths together really allows us to accelerate our technology innovation, scale up and deployment, to develop solutions faster and get them to market.”
This year’s winners are German startup HyperHeat, which is designing an electric heater capable of reaching temperatures up to 2000°C for use in energy-intensive industries, and Canadian startup Edgecom Energy, an all-in-one platform that leverages AI to help large energy consumers navigate the energy transition.
A hairdryer for heavy industry
Heavy industries like steel, cement and chemical production are essential to modern life, but also produce significant CO₂ emissions due to the high-temperature processes involved in their manufacture.
Many industrial processes still lack the necessary technology to decarbonise
Frederick Lessmann, cofounder of HyperHeat, compares his company’s innovation to a super-hot electric hairdryer. This technology can directly replace natural gas burners used in high-temperature industrial processes, enabling decarbonisation when powered by renewable electricity.
“Our products heat air up to 2000°C; many times higher than a domestic hairdryer, which operates at around 60°C,” he tells Sifted. “Our innovation lies in using materials that can withstand extremely high temperatures without degrading.
“Many of our daily products and materials come from heavy industries,” he adds. “While we tend to focus on personal sustainability, many industrial processes still lack the necessary technology to decarbonise.”
This week, HyperHeat closed its fundraising round with $3.7m to scale its solution.
“Everyone is saying we have the technology, we just need to apply it. In reality, there are some solutions but they are either unable to reach the required temperatures or they are prohibitively expensive. That’s where we come in, providing a durable, viable and economical solution for heavy industry,” says Lessmann.
An all-in-one solution
As the energy transition progresses, the grid is changing and the way industrial energy users look at energy and consume energy is also changing.
“The energy transition brings a lot of complexity, which means tariffs are getting more complicated, programmes are getting more complicated,” says Behdad Bahrami, CEO and cofounder of Edgecom Energy. “All of that complexity is creating significant challenges for large energy users.”
The end goal is to have a virtual energy manager.
To help large facilities navigate these energy management changes, Edgecom Energy has created an all-in-one platform designed to optimise the energy consumption of industrial assets and commercial buildings. The platform is based around four components: grid data, facility data, facility control and AI. Founded in 2016, the company has received 4m Canadian dollars (£2.5m) so far in funding.
“The different aspects of the platform are used in different facilities,” he says. “We have some facilities that are using just one or two. But all in all, we’re deployed right now in over 150 large facilities throughout North America.”
Bahrami says the AI aspect of the platform allows facility operators to have a conversation with their software in natural language.
“Instead of having to understand Python, instead of having to write code or having to work with massive Excel files, CoPilot, through natural language, is able to translate technical documentation, production information and specific limitations that a factory might have and provide better insights,” he says.
Right now, Edgecom Energy is adding more capabilities to the CoPilot.
“The end goal is to have a virtual energy manager that’s able to understand tariffs, understand price structures, understand grid programmes, in addition to understanding production considerations and energy considerations within the facility,” Bahrami adds.
Collaboration station
When it comes to the New Energy Challenge, Lessmann says that he hopes to use HyperHeat’s win to further understand how the startup can collaborate with Shell, for instance, through Shell’s GameChanger programme. The programme provides support, expertise and seed funding while allowing participating startups to maintain their independence.
Every time I finish the New Energy Challenge, I think we have the ideas, we have the technology, let’s go and do this
“For us, the New Energy Challenge offers a unique opportunity to connect with Shell experts, gain insight into how the organisation works and understand how our startup can make a meaningful impact,” he says. “Because it’s not only about technology and its application in chemical processes to lower CO₂ emissions, it’s also about getting into an organisation and bringing a project forward.”
Edgecom Energy is also excited about the prospect of piloting with Shell.
“We are getting to the point where we have capacity to start having more global aspirations,” says Tanner Behrend, manager of strategic growth at Edgecom Energy. “So expanding into new markets is becoming something that’s an increasingly prevalent topic for us.”
Behrend adds that outside of the business opportunity, Edgecom Energy got a “tonne of value” out of the competition.
“Meeting our Shell colleagues often leaves startups with a really positive impression, breaking down the perception of Shell as a large corporation that might take without giving back,” says LeBlanc. “Once you go through the Gamechanger programme, work with Ventures or collaborate with our experts, I think that myth is quickly dispelled.”
For Saaltink, the challenge fosters a sense of positivity towards change.
“Decarbonising industries like chemicals is not easy, but Shell is committed to the effort, and startups are developing promising solutions,” he says. “Every time I get to the end of a New Energy Challenge I think, we have the ideas, we have the technology, let’s go and do this!”
The New Energy Challenge aims to identify technologies with the potential to significantly impact the future of energy, and support innovators and entrepreneurs to affordably prove the viability of their technologies. Some of the participating startups may be selected to join the Shell GameChanger programme, receive investment from Shell Ventures or collaborate directly with Shell businesses at a later stage, subject to compliance with applicable laws, regulations and Shell’s internal policies.
Read the orginal article: https://sifted.eu/articles/new-energy-challenge-decarbonise-industry-brnd/
