Deus or Diabolus Ex Machina: New Technology in Renewable Energy
In the dynamic arena of renewable energy technology, innovation remains the cornerstone. As the world strives to adopt sustainable practices to mitigate climate change, embracing cutting-edge technologies becomes imperative. But at what cost?
The Essence of Innovation
Developers continually seek new solutions to sustainably meet the planet’s energy needs. Innovation increases efficiency and often the durability of plant and machinery.
For example, hydropower, a stalwart in renewable energy, has seen transformative upgrades in its turbines. The unpredictable pressure on turbines historically led to fatigue cracks, necessitating premature replacements.
However, the advent of adjustable blades in 1913 by Austrian professor Viktor Kaplan alleviated the pressure by reacting to the direction and power of water flow. Developers are now leveraging machine learning to predict changes in water flow, a proactive approach outlined in a study published in ScienceDirect.
Solar energy, too, has undergone a remarkable evolution. The journey began in 1954 when Bell Labs in the United States developed the first silicon photovoltaic cell. While it converted a mere 6% of sunlight into electricity, the pursuit of efficiency has been relentless.
Modern Multi-Junction solar cells achieve a 47.6% conversion rate according to the Fraunhofer Institute for Solar Energy Systems, represent a monumental leap. An interactive chart by the National Renewable Energy Laboratory (NREL) vividly illustrates this progress.
Navigating Uncharted Territory
Venturing into unproven energy technologies is akin to a high-stakes gamble. The allure of groundbreaking renewable energy technology is magnetic, yet the risks should not be underestimated. Consequently, due diligence is imperative, considering environmental, economic, and social ramifications.
In the pursuit of innovative energy storage solutions, Battery Energy Storage System (BESS) fires have emerged as a concerning risk. The McMicken Energy Storage facility in Arizona faced a critical incident in 2019 – sending 8 bystanders to hospital – involving a 2MW lithium-ion battery system by AES and LG Chem. A 300MW Tesla battery in Victoria, Australia, caught fire in 2021 – fortunately with no casualties.
Both incidents were attributed to a case of thermal runaway, highlighting the need for meticulous safety measures in energy storage installations.
Similarly, in 2020, an Amazon warehouse in Fresno experienced solar inverter issues leading to the destruction of 220 solar panels. Investigations revealed that the root cause was improper installation and combinations of inverters and panels.
Ensuring the reliability and safety of new technologies requires a comprehensive understanding of potential risks and a commitment to implementing robust safety protocols.
Incidents like these influence how lenders assign risk to unproven technologies. Unproven BESS or EfW incinerators are red flags for lenders.
Staying Informed: A Developer’s Lifeline
In the renewable developer landscape, staying awareness of emerging renewable energy technologies is a strategic imperative. Otherwise, the value of your planned RTB sales exit in two years time might be a whole lot less than you planned.
Regular updates on renewable energy technology can be found from a variety of sources – newsletters, conferences, colleagues, competitors. We’ve selected a few top options:
Best sources for new climate and renewable energy technology:
- Climate Tech Venture Capital (https://www.ctvc.co/)
- GreenBiz (https://www.greenbiz.com/collections/climate-tech)
- Clean Technica (https://cleantechnica.com/)
Best conferences and events:
- World Future Energy Summit (https://www.worldfutureenergysummit.com)
- Energy Tech Summit (https://energytechsummit.com/)
- Viva Tecehnology (https://vivatechnology.com/)
Exciting Ventures in Renewable Energy technology,
Amidst challenges, exciting ventures illuminate the path forward. Notably, endeavors in climate technology and energy technology underscore the dual focus on sustainability and efficiency.
A recent analysis by PwC looked at the portion of funding allocated to different climate tech sectors (see figure below). Mobility remains the highest funded sector, with energy closing the gap.
We’ve picked a few of our favorite companies from various climate and energy tech verticals in the list below.:
Energy
Northvolt: Pioneering Sustainable Battery Manufacturing
In Stockholm, Sweden, Northvolt is spearheading a revolution in battery manufacturing. With an ambitious goal of delivering batteries with an 80% lower carbon footprint compared to those made with coal energy, Northvolt is redefining the industry landscape. Boasting a diverse workforce of over 5,500 employees from more than 120 nationalities, the company is committed to achieving an annual cell output of 150 GWh by 2030.
Recently securing $1.2 billion in convertible notes for growth, Northvolt is not only dedicated to technological advancement but also prioritizes powering its factories with clean, renewable energy, emphasizing minimal resource use and battery recycling for a sustainable future. Their solutions span across automotive, construction, e-mobility, and industrial applications.
Financial Services
Mosaic: Loans for Solar Solutions
Mosaic stands at the intersection of finance and sustainability, collaborating with leading solar and home improvement companies to provide fast and affordable financing options for homeowners.
Mosaic’s impactful approach has helped approximately 400,000 homeowners switch to sustainable solutions, resulting in the elimination of over 16.9 million metric tons of CO2. As of 2023, the company has raised a total of $488.6 million.
Mobility
Joby: Transforming Flight with eVTOL
In the realm of mobility, Joby Aviation is at the forefront, introducing Electric Vertical Takeoff and Landing (eVTOL) aircraft. Their 5-person (4-passenger) aircraft completed its first passenger flight in NYC in November 2023, covering the distance from Downtown Heliport to JFK in just 7 minutes.
With an impressive $2 billion raised, Joby is reshaping urban transportation, providing sustainable alternatives for the future.
Industrials
Seurat: Revolutionizing Metal Printing for Sustainable Construction
Seurat is leading the charge in 3D decarbonized metal printing, aiming to replace traditional construction materials with sustainable alternatives. The launch of their pilot factory in 2023 signifies a pivotal step in realizing this vision. Seurat has raised $99 million.
Other
Evolved by Nature: Innovating Sustainable Chemistry and Healthcare Biomolecules
Evolved by Nature is making waves in sustainable chemistry and healthcare. Leveraging their Activated Silk™ biotechnology, they are developing sustainable, biobased chemistry for various industries, including textiles and architectural coatings. With the potential to replace significant amounts of problematic chemicals, Evolved by Nature is contributing to a cleaner industry.
Additionally, their Activated Silk™ platform is paving the way for innovations in regenerative and aesthetic medicine applications, aiming to advance biomedicine and create a healthier future. With a substantial funding of $190 million, Evolved by Nature is poised to drive impactful change in multiple sectors.
The Savior Paradox: Rethinking Our Future
As society looks to new technologies as a savior, a paradox emerges. New technologies are pivotal, yet caution is necessary. The ‘Deus ex Machina’ outlook on carbon capture and renewable microgrids is certainly tempting. However, overreaching on new solutions often overlooks the preexisting bottlenecks that already exist – even 100% solar cell efficiency will not make a difference if the solar farm cannot be grid connected.
In the quest for a sustainable future, developers must tread carefully, acknowledging the dual nature of technological advancement. It’s a delicate balance between progress and potential pitfalls. Consequently, a cautious, iterative and observant approach is needed to avoid ignoring bottlenecks and unintended consequences of running before we can walk.
The future may be powered by technology, but the path we choose will determine whether it leads to salvation or unforeseen perils.
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