Funding the energy transition - A case study

A British startup that is developing a heat storage system looks to be set to advance the technology readiness level (TRL) of its system. The system heats a heat core made of recycled aluminum and volcanic rocks using electricity collected from solar panels. The heat core is stored in an insulated vacuum vessel and used, on-demand, to flash water to steam for use in industrial processes.

The use of recycled materials to convert solar energy to on-demand energy is an excellent example of home-grown innovation that could tackle one of the big issues with renewal energy in the UK, volatility. When the sun is not shining and the wind is not blowing, where does renewal energy come from in the UK? And when it is sunny and windy what do we do with the excess electricity that the grid may not be able to manage? Storing energy for future use is an obvious solution, but huge battery farms currently face global supply chain issues. However, besides the technology, an interesting aspect of this story is the company's funding journey.

The company, Caldera, was crowdfunded on the platform Crowcube raising £1.5 million in 2021. Then in June 2023, the company was awarded approximately £4.3 million in funding from the UK Department for Energy Security & Net Zero in phase 2 of their industrial fuel switching program.

This highlights one of the big talking points of COP28, funding climate change. The UK's industrial fuel switching program selected 13 companies and granted funds of upwards of £52.5 million. Such levels of funding, and beyond, are suggested as being necessary to advance the technologies needed to reach net-zero targets. However, good ideas may not be enough. The money needed to advance from conception to proof-of-concept, real-world trials, and finally full technology adoption may not be available to companies that are revenue-less for extended periods. The climate funding commitments made at COP28 may play the most significant role in meeting global net-zero targets.

Can intellectual property help accelerate the race to net zero? Visit our Energy Transition hub to find out.