The shift from molecules to electrons driving transformation in the energy industry has to cover a number of hurdles to meaningfully move the world to net zero and even reduce carbon in the atmosphere.
The technology needs to work and a business model developed but then scale-up capital has to come in.
The requirements are different to the capital-light, intangibles-heavy approach of software and information technology that uses network effects to drive net income to be reinvested in further research has been perhaps the greatest money-creating mechanism known to the world.
For a classic take on disruptive innovation in this context do read James Allworth, head of innovation at Cloudflare and co-host of the Exponent podcast alongside Ben Thompson, article discussing the recent breakup of Apple and Intel (H/T Lightspeed VC’s Alex Taussig’s Drinking from the Firehose blog).
The development of steam as the first general purpose technology then electricity from fossil fuels have powered the world for centuries. Fracking unlocked American shale gas but alternative energy sources have taken time having missed its breakout moment with nuclear power using fission (we shall see on fusion given the excitement in the area recently). Wind and solar power are effectively limitless and have now achieved cost parity to fossil fuels but timing and storage an issue.
This, however, is a solvable challenge forced by governments focusing on the big emitters of carbon, such as transport, which makes up 23% of global carbon emissions, and heavy industry (hence the renewed interest in hydrogen – see last month’s magazine). The UK government, which will host the COP 26 climate talks in a year’s time, has already said it would ban sales of new petrol and diesel cars and vans by 2035.
UK-based Zenobe Energy, formerly known as Battery Energy Storage Solutions, raised £150m ($175m) from Infracapital, the infrastructure equity investment unit of mutual fund manager M&G, following last year’s round from Tepco Power Grid and power supplier Jera.
Zenobe has 170MW of grid-scale batteries in operation or construction to National Grid and the distribution network operators, to then fuel more than 100 electric buses.
Lisa Lambert, chief technology and innovation officer at National Grid and founder and president of its corporate venturing unit, National Grid Partners, has become chairwoman of the GCV’s Global Energy Council bringing together the main energy producers, utilities, infrastructure and tech providers and consumers. The move follows the pattern Lambert set out last year through the Next Grid Alliance of energy utilities from around the world.
From Amazon to General Motors, BP, Chevron, Shell and Total to Hitachi and Schneider Electric the Global Energy Council’s advisory board members are already working with more than 100,000 startups and hundreds of VC firms and other investors starting to network through the Global Innovation Venturing ecosystem being launched ahead of the next GCV Digital Forum on 27 January.
Together we can create the conditions for scale-up and our sustainable future through innovation rather year zero-style disruption.
Contact Paul Morris for more details on the Global Energy Council.
