Author: Dwayne Pattison

In our second instalment of focused market maps (see Food and Agriculture for the first), we are charged up to bring you our take on the Energy sector. Climate tech in the energy sector encompasses a broad range of innovative technologies and solutions aimed at mitigating climate change impacts, primarily through reducing greenhouse gas emissions and enhancing energy efficiency. 

Energy is the largest sector in terms of how many companies we monitor. It is also potentially the most impactful in terms of the number of technologies being developed and their ability to cut carbon emissions. Additionally, energy is the most connected to all other segments we will look at given that we need energy to grow food, move around, and build and manufacture things. 

This sector is pivotal in the transition towards a more sustainable and low-carbon future. It includes advancements in renewable energy sources, energy storage, ocean and hydro power, geothermal energy, grid technologies, and nuclear energy. Each of these subsegments plays a crucial role in transforming the energy landscape, offering unique solutions to the challenges posed by climate change.

Enabling Technologies and Energy Management

Advanced Technologies and Intelligent Systems are rapidly being developed for all aspects of energy management. We use the catch-all term of “energy management” in our map to highlight some of the companies active in the space. However, there is a great deal of overlap among the subsegments discussed below. Under Grids for example, many of the smart grid systems are employing some or all of these enabling technologies to increase efficiencies and improve operations. These technologies include:

• Artificial Intelligence (AI): AI is being used to optimise various aspects of renewable energy, from manufacturing to energy management.
• Predictive Maintenance and Performance Monitoring: Advanced analytics and machine learning are being used to predict maintenance needs and monitor the performance of renewables, and energy storage systems .
• Internet of Things (IoT): IoT technology is used to monitor and manage energy systems, improving their efficiency and reliability. IoT also allows for integration of renewable energy in more complex systems by linking solar panels or wind turbines to batteries. IoT is also valuable in integrating all of the microgrid components.
• Digital twins are virtual replicas of physical systems, used to simulate and analyse their performance. The technology assists can help analyse and optimise the operation of a solar farm, for example, before it is fully developed. Therefore, they can help in establishing more efficient designs and maintenance plans.

As these technologies continue to mature, we can expect even greater efficiency and integration of renewables and other technologies in all sectors. Startups are not just focusing on improving efficiency and reducing the cost of climate technology but are also exploring innovative ways to integrate new energy systems into our daily lives and industrial processes. The timeline for widespread adoption of these technologies varies, but many are already in advanced stages of development or early commercial deployment.

Renewables

Renewable energy technologies harness natural processes to generate power with minimal environmental impact. This includes solar panels, wind turbines, and bioenergy solutions. Startups in this space are innovating with higher-efficiency photovoltaic cells, floating wind farms for offshore energy generation, and advanced biofuels that reduce reliance on fossil fuels. 

Wind

Wind energy harnesses the power of wind to generate electricity. This is achieved through wind turbines, which convert the kinetic energy of wind into mechanical power. The mechanical power can then be converted into electricity through a generator..

Wind turbines and related technologies are mature technologies. However, the startups we are monitoring are challenging the past constraints of traditional systems including (a) where turbines can be located (b) how wind is harnessed and (c) how much of the wind can be harnessed. 

Traditional wind turbines are being upgraded. Startups are working on improving the materials and designs of these structures to increase efficiencies. Improvements include more aerodynamic blades and turbines designed for specific environments, like low-wind areas. Further, using artificial intelligence and the Internet of Things, wind farms can optimise energy production and predictive maintenance, reducing costs and increasing efficiency.

Innovations in design are opening up new opportunities to harness wind energy. For instance, bladeless, floating and airborne turbines will allow turbines to be located in more select sites

• Bladeless Wind Turbines harness wind energy through oscillation or other mechanisms. 
• Airborne Wind Turbines fly at high altitudes where the wind is stronger and more consistent than at ground level. They can be tethered to the ground or autonomously controlled.
• Offshore Floating Turbines are designed for deep-water environments where traditional bottom-fixed structures are not feasible. 

Solar 

Solar energy involves converting sunlight into electricity, either directly using photovoltaics (PV), or indirectly using concentrated solar power (CSP). PV systems use solar panels composed of many solar cells to convert sunlight into electricity. CSP uses mirrors to concentrate a large area of sunlight onto a small area, generating heat that drives a power plant’s engine.

The solar technology industry, particularly in the realm of climate tech, has seen significant advancements and innovations in recent years. Startups around the world are exploring new methods and technologies to harness solar energy more efficiently and effectively. Here are some of the key developments:

• Bifacial Solar Technology: Bifacial solar panels are designed to capture sunlight from both sides, increasing their energy yield compared to traditional single-sided panels.
• Building-Integrated Photovoltaics (BIPV): These are photovoltaic materials that are used to replace conventional building materials such as the roof, skylights, or facades. Some of these technologies will also be discussed in more detail in our upcoming market map for the Built Environment. 
• Reflective Solar Technology: This involves enhancing the reflectivity of surfaces to increase the efficiency of existing solar panels.
• Floating Solar Farms: These are solar panels installed on large bodies of water, such as reservoirs and lakes.
• Solar-Powered Transportation: Startups are also integrating solar technology into various modes of transportation.
• Agrivoltaics: This is the co-development of land for both solar photovoltaic power as well as for agriculture.

Bioenergy

Bioenergy (or biomass-to-energy) is derived from biomass (e.g. crops, trees) or animal byproducts (e.g. manure).  It can be used in various forms, including biofuels (like ethanol and biodiesel), biogas, and bioheat. Bioenergy is unique among renewable energy sources because it can be converted directly into liquid fuels for transportation.

• Advanced Biofuels: Startups are developing new methods to produce biofuels more efficiently and from non-food sources, such as algae or waste biomass.
• Biogas and Waste-to-Energy: Many startups are focusing on converting organic waste into biogas through anaerobic digestion. Non-biomass sources are discussed under Waste-to-Energy.
• Bioenergy with Carbon Capture and Storage (BECCS): Some bioenergy startups are integrating carbon capture technologies to make bioenergy production carbon-neutral or even carbon-negative.

Energy Storage

Energy storage is a critical component in the transition to a sustainable energy future, especially in managing the intermittency of renewable energy sources. Beyond conventional battery technologies, several innovative approaches are emerging, offering unique solutions to energy storage challenges.

• Batteries: Startups are focusing on lithium-ion batteries, solid-state batteries, and flow batteries for more efficient, safer, and cost-effective storage solutions. 
• Pumped Hydro Storage: Pumped hydro storage is one of the more established methods of energy storage. It involves two water reservoirs at different elevations; during periods of low energy demand, excess electricity is used to pump water to the higher reservoir. When energy is needed, water is released back down to the lower reservoir, driving turbines to generate electricity. Startups and energy companies are exploring ways to implement pumped hydro storage in more varied geographical locations, including using abandoned mines or constructing artificial reservoirs.
• Compressed Air Energy Storage (CAES): Involves storing energy in compressed air in underground caverns or containers. When electricity is needed, the pressurised air is released to power turbines.
• Hydrogen Energy Storage: Hydrogen energy storage involves using excess electricity to power electrolysis, splitting water into hydrogen and oxygen. The hydrogen can then be stored and later reconverted into electricity via fuel cells. Innovations are focusing on green hydrogen production using renewable energy sources, and improving the efficiency and cost-effectiveness of electrolyzers and fuel cells. Hydrogen as an energy carrier is discussed below and in more detail in a future market map.

Read also: Top Climate Tech Trends & Innovations in 2024 and Beyond

Other Innovative Ideas for Storing Energy 

• Flywheel Energy Storage: This method stores energy in the rotational motion of a spinning mass, or flywheel. Innovations are focusing on materials that allow for higher rotational speeds and longer energy retention times.
• Liquid Air Energy Storage (LAES): This technology involves cooling air to a liquid state, storing it in tanks, and then expanding it to drive a turbine when energy is required.
• Underwater compressed air energy storage (UCAES): These systems push air into large, flexible balloons or chambers that are submerged in water.
• Gravity-Based Storage: Some companies are exploring the use of gravity for energy storage, such as by lifting and dropping weights in a controlled manner to store and release energy.
• Thermal energy storage (TES): stores energy by heating or cooling a storage medium so that the stored energy can be used later for heating and cooling applications and power generation. TES systems are used to bridge the gap between energy supply and demand, making them particularly useful for balancing the intermittency of renewable energy sources like solar and wind. The types of medium being developed are: sand, molten salt, tin, graphite and carbon. 

Ocean and Hydro

This segment includes technologies harnessing the power of water, such as tidal and wave energy, and hydroelectric power. 

Tidal

Tidal energy uses the rise and fall of tides to generate electricity. These systems operate as the water moves through different types of turbines. Efforts are being made to minimize the ecological impact of tidal energy systems, particularly on marine life. Startups are developing:

• Advanced Turbine Technology: Which are more efficient and environmentally friendly tidal turbines.
• Modular Systems: Some are working on smaller, modular tidal energy systems that can be easily deployed in various locations.

Wave

Companies are developing technologies that can transform ocean surface waves into electricity. The common structures use the motion to drive generators or turbines. Startups are working on new designs that improve the efficiency and make them more durable. A key consideration, as it is with other ocean energy technologies, is energy storage and integration into existing power grids.

Other Emerging Ocean Technologies 

• Ocean Thermal Energy Conversion (OTEC): is a process that generates electricity by using the temperature difference between deep cold ocean water and warm tropical surface waters. This temperature gradient can be utilised to produce energy
• Salinity Gradient Power: Generates electricity from the difference in salt concentration between seawater and freshwater.
• Ocean Current Energy: Similar to tidal energy but focuses on the continuous, steady movement of ocean currents. Turbines or other devices are placed in the path of these currents to generate electricity.

Hydroelectric Technologies

Hydroelectric production from dams is a mature technology and they are often operated by large utility companies. Other technologies are:

• Run-of-the-River Systems: Divert a portion of a river’s flow through a channel and do not require a large dam or reservoir.
• Pumped Storage: A method of storing energy by using two water reservoirs at different elevations (see above).

Startups in this area are working on small-scale, modular hydroelectric systems that can be deployed in rivers and streams. Innovations in turbine design and materials are increasing the efficiency of hydroelectric systems.

For all of these technologies, companies are working on lowering costs and integrating the energy harnessed into grid systems and finding effective ways of storing the energy.

Geothermal

Geothermal energy utilises heat from the Earth’s interior. Hot water reservoirs or springs near the surface of the earth can be used to generate electricity or for heating buildings. Startups are active in developing:

• Enhanced Geothermal Systems (EGS): Involves artificially creating reservoirs in areas where hot rock is available, but not water, as in traditional geothermal methods. 
• Advanced Drilling Techniques: Techniques are being developed to access heat resources more efficiently and at lower costs. 
• Low-Temperature Technologies: Some startups focus on low-temperature geothermal resources. 
• Hybrid Systems: Combine geothermal with other forms of renewable energy.
• Heat Storage Solutions: Given the constant output of geothermal energy, startups are also exploring ways to store excess thermal energy (see above).

Grids 

Grid technology innovations focus on improving electricity distribution and management. 

• Smart grids use digital technology for more efficient energy use and distribution, integrating renewable sources effectively.
• Microgrids are localised grids that can operate independently, enhancing resilience. 
• Utility-scale grids involve large-scale energy generation and distribution. 

Startups are working on AI and IoT-based solutions for grid management, predictive maintenance, and integrating distributed energy resources.

Nuclear 

Nuclear technology plays a significant role in the context of climate technology, primarily due to its potential for generating large amounts of low-carbon electricity. Nuclear subsegments include fission, small modular reactors (SMRs) and fusion. 

• Fission: involves splitting atomic nuclei, with advancements focusing on safety and waste reduction. It is a well-established technology that provides a significant portion of the world’s low-carbon electricity. Some startups are developing new fission reactor designs that are safer, more efficient, and produce less waste. These include advanced molten salt reactors, high-temperature gas-cooled reactors, and fast reactors.
• Small Modular Reactors (SMRs): are being developed for their flexibility and lower initial investment costs. They also offer enhanced safety features and are considered more adaptable to the varying demands of the power grid, complementing renewable sources. Startups in this space are exploring new reactor designs, advanced nuclear fuels, and waste management technologies.

• Fusion Technology: Still in experimental stages, fusion promises abundant energy with minimal waste. Numerous startups are pursuing various approaches to make fusion energy practical and commercially viable. The most advanced options  include using different confinement methods like magnetic confinement (tokamaks, stellarators) and inertial confinement. 

Waste to Energy

Waste-to-Energy (WtE) refers to the process of generating energy in the form of electricity and/or heat from the primary treatment of waste. The main technologies in WtE are:

• Incineration: The most common WtE process, where municipal solid waste is burned at high temperatures. The heat generated is used to produce steam that can drive turbines to generate electricity.
• Gasification and Pyrolysis: Advanced thermal treatments that convert organic materials into synthetic gas (syngas) and a solid residue. Syngas can be used to generate electricity or as a basic chemical feedstock.
• Anaerobic Digestion: Biological processes where organic waste (like food or animal waste) is broken down by bacteria in the absence of oxygen. It produces biogas (mainly methane and carbon dioxide), which generates electricity and heat.
• Landfill Gas Recovery: Captures methane gas emitted from decomposing waste in landfills. The methane can be used to generate electricity and heat.

Startups are working to improve the efficiency of each of the above while reducing emissions (particularly with incineration). Some startups are creating smaller, modular WtE systems that can be implemented in various settings, including urban areas where waste is abundant. Companies are also working on integrating WtE processes with recycling operations to ensure maximum waste diversion from landfills.

Other Segments

As stated above, Energy is intricately linked to all the other segments which we will explore in upcoming articles and market maps:

• Hydrogen: We have discussed hydrogen’s role in energy storage above but it will play an integral role in other aspects of the new energy ecosystem. Companies are focusing on using hydrogen as a clean fuel for power generation and transportation. 
• Carbon Capture and Storage (CCS): Technologies that capture carbon dioxide emissions from sources like power plants and reuse or store it to prevent its release into the atmosphere. CCUS are also potentially important technologies in the energy transition as we move away from fossil fuels. 
• Food and Agriculture: In our first market map we explored some of the technologies that. Certainly, agriculture has a big role to play in bioenergy production and waste to energy. Food producers are looking for ways to easily integrate renewable energy into production processes. Other opportunities include using geothermal for heating greenhouses and agrivoltaics (above). 
• Built environment; Much of the work related to buildings and energy is the integration of renewable energy into residential and commercial buildings that is less costly for owners. Building-Integrated Photovoltaics (BIPV) discussed above is one example.
• Manufacturing: We look at manufacturing and energy in two ways. Manufacturing companies that are developing innovative ways to use energy more efficiently and manufacturing companies that are finding new ways to produce energy technologies.  

In summary, climate tech in the energy sector is a dynamic and rapidly evolving field, with startups playing a crucial role in driving innovation and pushing the boundaries of what’s possible in sustainable energy generation, distribution, and storage.

To stay informed about the climate industry explore our latest climate news.

Read also: Top 11 Climate Tech Companies in 2024

Companies on the Map

Aerones

Agilyx

Airloom

AltaRock Energy

Antora Energy

ARC

Atlas Renewable Energy

Aurora Solar

AW-Energy

BBOXX

Biomet

BladeRunner Energy

Blue Planet Energy

BluPower

Blykalla

Bombora Wave Power

Brite Solar

Calwave Power

Cambridge Industries

Camus Energy

Canopus Drilling Solutions

Carbo Culture

Ceraphi Energy

Clevergy

Commonwealth Fusion Systems

CubicPV

Cyklone Tidal Energy

Dandelion Energy

DEEP 

Drax

Easy Hydro

Eavor

Electron Green

Emrgy

Enchanted Rock

Energy Vault

Enexor Bioenergy

Enode

Enpal

envelio

Ex-Fusion

Factorial

Fervo Energy

Field

First Light Fusion

Flibe Energy

Floating Wind Technology 

Form Energy

Fourth Power

FREYR

Frontline Bioenergy

Fulcrum Bioenergy

GedCo

General Fusion

GetSolar

GKN Hydrogen Corp

GPS Renewables

Green Hydrogen SOlutions

Heliogen

Helion Energy

HH2E

Highview Power

Holtec International

Hydrostor

Hyme

INGINE

Insolight

Intersect Power

Kairos Power

Kite Power Systems

Lavo

Lunar Energy

Luvside

Maana Electric

Mavericks Microgrids

Minesto

Modvion

Moltex Energy

NearStar Fusion

New Cleo

Next Energy Technologies 

Northvolt

Nuru

NuScale Power

Octopus Energy

Odyssey Energy Solutions

Optiwatt

Orcan

Our Next Energy 

Oxford PV

PVCase

Quaise Energy

Raycatch

RCAM Technologies

ReNew Power

RheEnergise

Sage Geosystems

Scale Microgrid Solutions

Seabased

Seaborg Technologies

Sensorfact

Sesame Solar

SIMEC Atlantis Energy

SolarBotanic Trees

SolarFloat

Soletair Power

Solho

SparkMeter

Sun’Agri

Sunbird Bioenergy Africa

SunCulture

SungreenH2

SuperNode

Sustainable Marine

Swaprobotics

Synvertec

TAE Technologies

Terra Power 

Thorizon

Tight Light Composites

Tokamak Energy

Transmutex

Tree Energy

Turbulent

Typhoon HIL

Ubiquitous Energy

Wattwatchers

Windlift

X-Energy

XGS Energy

Zenobē