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Open Call
We need more energy. Everywhere. As soon as possible.
The world has sharply entered an era of global industrial transformation: supply chains are being (re-)built in new geographies, the climate crisis is escalating, and AI is rising faster than anyone can fully comprehend. All of which have an insatiable energy demand that must be as clean, cheap, and local as possible.
In the US, projected electricity demand has shot up over the next five years, driven by significant investments like the $481 billion committed to new industrial facilities and over $150 billion projected for data centers through 2028. Globally, the climate and energy transition will require approximately $131 trillion in global investment by 2050 to meet our energy needs while also achieving a 1.5°C climate target (all resulting in a net-positive $61 trillion growth to the global economy).
We’re not on that path yet.
Most geographies are scrambling to shift the regulatory, technology development, infrastructure, and investment landscapes to fill the energy gap. Every day, Newlab hears from our government partners that we’re in an early-onset energy crisis. Some national ministers tell us they “can’t even spend enough money to achieve their targets; new technologies need to be invented,” or they are “canceling data center permits because the energy demand will risk energy security.” A number of regional government agencies, like the NYC DOT, are ramping up their Newlab pilot engagements to mitigate this crisis.
The massive opportunity and need for new energy-focused startups is unquestionable, but there are still complex barriers to take on industrial energy as a founder. At Newlab, we’re actively shifting our thesis and platform to unblock founders in several high growth opportunity areas:
The demand for localized industrial energy is so high that we’re seeing more dedicated private power plants for energy-guzzling data centers and industrial sites. The growing economic opportunity is leading to some of the most advanced energy supply projects ranging from localized SMR nuclear power, space energy, and geothermal plants tied to new industrial plants around the world. Our longstanding industry partners in mining and materials often have to rely on the cheapest, dirtiest fuels to operate and break even, with a clear economic and climate requirement to bring new energy startups to serve their remote sites.
A new crop of startup FOAK (first-of-a-kind) facilities are emerging that fundamentally replace energy-intense, dirty industrial processes with breakthrough approaches that lower both the total energy and carbon footprints of a plant. H2 Green Steel recently raised a massive $5.2 billion to build a FOAK to use clean-burning, high-temperature hydrogen for the production of otherwise energy-intense steel.
FOAKs don’t always need billions of dollars… when the right mix of infrastructure, industry and capital structures comes together, they can happen with fractions of investment. We’re ramping up our collaboration with Greater New Orleans and the Department of Energy’s EPIC Program to show the speed, scale, and capital efficiency of startup FOAKs when the right conditions are built within an ecosystem.
Wind and solar have hit their stride with billions of dollars of projects in flight. Others are exploring entirely new energy sources, such as Koloma's efforts to locate reservoirs of cheap, naturally occurring geologic hydrogen. Alternatively, Fervo Energy has recently demonstrated the commercial viability of geothermal systems in previously uneconomic locations. There is a new “gold rush” mentality among founders and investors seeking to establish new energy sources. (Newlab may have a few under-wraps startup projects to massively expand renewables… let us know if you want to join the fun.)
We’re in the midst of several decades of massive demand for new critical technology startups in the energy sector. While H1 2024 saw a decline in climate tech investments, early-stage investments in energy storage saw a 21% increase in round sizes, along with continuous growth in hydrogen, grid, and geothermal sectors. There are trillions of dollars queuing up to be invested in our energy systems across geographies, technologies, and use-cases. Newlab is doubling down on our focus on energy, working with more global partners, investors, and startups to unblock startups addressing the unprecedented energy demand.
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