T-Omega May Have the Key to California Offshore Wind

T-Omega May Have the Key to California Offshore Wind

Offshore wind could be the biggest untapped renewable resource for California, and one that provides pretty steady power. The problem in tapping it has been that the best spots are in very deep water (3000 feet and more). Sites like that have been far too expensive to exploit in conventional ways.

On January 5, Brita Formato, CEO of offshore wind innovator T-Omega Wind, and her colleagues CTO Andy Myers and CCO Dave Forbes presented their potential breakthrough in making the 25 GW CEC goal for offshore wind installations a reality. The attraction of the offshore wind resource off the California coast is that it is so steady. It could be a “baseload renewable,” offsetting the problem of intermittency to a large degree. That would add a great deal more certainty to the zero-carbon power mix.

T-Omega TurbineBut the traditional kind of floating offshore wind installations have been expensive. To date, the offshore wind installations have been providing power at $85-130/MWh. T-Omega has designed a much simpler and dramatically less costly option for deepwater install-lations, with its four-leg design. It floats, and is loosely tethered to the sea floor, allowing it to survive rough conditions while being lightweight. It is relatively low profile and can be moved if it interferes with fishing grounds unexpectedly. Their projected LCOE is less than half the conventional approach.

The typical offshore wind is a heavy floating platform weighing 3-4,000 tons for a 10 MW installation. The T-Omega alternative tips the scale at an estimated 1,000 tons for the same size. That huge savings in steel and concrete translates directly to lower cost.

In addition, T-Omega has made innovations in the type of generator used (a more “pancake” design) and the reduction of the stress on the bearings holding the rotor, accomplished by supporting the rotor at both ends rather than in the middle. Maintenance is simpler, too, with the ability to tow out another unit and retrieve the broken one for a trip back to shore. No need for expensive and difficult on-site repairs. And the port/onshore construction and repair facilities would be much simpler for their modules than for the huge platforms taller than a New York skyscraper.

Brita said they have seen a great deal of interest from developers that won the recent $757 million auction of offshore wind leases in California (with the potential for 4,600 MW of generation), but that the company needs to validate all its projections with a couple of demonstration projects to be considered a viable option. They have recently been awarded an NSF grant to move that work forward. They are also trying to raise $10-12 million for that purpose now. They want to get to a commercial scale unit by 2026.

During the discussion, it was pointed out that getting adequate transmission to move the power into the backbone of the grid may be a big hurdle. To get more than a few hundred MWs tied-in could require a big investment. That problem is being worked on by the CEC, the CPUC, and the utilities, but the pace at which they add transmission may be the bottleneck that slows progress.

T-Omega is sure to gain more attention and we will definitely be inviting them back for an update.

The session is available on our YouTube Channel, if you missed it. 

Thomas Hall

ABOUT THE AUTHOR

Gary Simon is the Chair of CleanStart’s Board. A seasoned energy executive and entrepreneur with 45 years of experience in business, government, and non-profits.

CleanStart Sponsors

Weintraub | TobinBlueTech Valley, Revrnt, River City Bank

Moss AdamsPowerSoft.biz, Greenberg Traurig, California Mobility Center

XeroHome Getting Great Traction

XeroHome Getting Great Traction

In April 2022, we wrote that we believed Rocklin-based XeroHome had a bright future. In the last nine months, XeroHome has been seeing that very future unfold.

XeroHomeXeroHome provides a software app that can give individual homeowners insights on how best to save money and avoid GHG emissions based on scraping a massive amount of information from databases and applying their analytics engine. It takes only a few seconds to generate a report using public data and their proprietary AI. The homeowner doesn’t need to do a thing. It is a “push” application. By answering a few supplemental questions, the homeowner can get even more refined answers. This app replaces the tedious and expensive door-to-door home energy audit process, not to mention the sales process of trying to get homeowners engaged. It has been validated repeatedly as providing information as good as or better than the audits. XeroHome has a great 2 minute video explaining the product and one that talks about a recent project with EPRI that left the client very satisfied.

According to CEO Mudit Saxena, they have now 4 big projects and have been promoted widely by the Electric Power Research Institute to its utility members. There are projects in St. Louis, Atlanta, Petaluma, and San Luis Obispo. Most significantly, the City of Sacramento and SMUD are engaging XeroHome to model all 120,000 homes in the city, the largest application of the software yet attempted. More projects are in the pipeline in Seattle, San Diego, and Birmingham.

XeroHome

Clients have been thrilled with the outcomes. One said they had never seen such an efficient application before, even though they were skeptical at first. XeroHome is now in the enviable position of out-performing client expectations. That has a way of snowballing sales. One measure of this success is the rate at which customers, after receiving the report, actually respond and take steps to decide how to act on the recommendations. Utility programs have struggled to reach 1% to 2% engagement while XeroHome have now repeatedly shown over 10% engagement rates in their deployments. Compared to the old process, this can result in much quicker improvements in homes.

Now XeroHome needs to cope with the challenges of success: Building out a top team and creating a cash reserve to underwrite the growing level of activity in the face of expected lags in invoice payments. They are looking to have revenue in excess of $1 million in 2023 (up 35% over 2022), and they see a need to raise funds to propel their growth.

The signs are good so far.

Thomas Hall

ABOUT THE AUTHOR

Gary Simon is the Chair of CleanStart’s Board. A seasoned energy executive and entrepreneur with 45 years of experience in business, government, and non-profits.

CleanStart Sponsors

Weintraub | TobinBlueTech Valley, Revrnt, River City Bank

Moss AdamsPowerSoft.biz, Greenberg Traurig, California Mobility Center

Ascent OS: One Year Later

Ascent OS: One Year Later

We recently caught up with John Meissner, CEO of software company Ascent OS, to chat about how things were going since their spin-out from Infinity Energy. So far, the news is pretty good. They added a half-dozen people, they are spreading out to serve customers in Southern California, Missouri, Baltimore and Boston in addition to their base around Sacramento, and have a solid MVP. On the other hand they discovered they needed to do more work to upgrade the product and progress to customer revenue is slower than expected. Now they are focused on raising more money to extend their runway. In other words, they are in a pretty typical situation for a startup.

Ascent OSWe wrote about Ascent before just as it was being spun-out in November 2021. We noted that they had a good kickstart with taking over legacy customers and with having a functioning product. Their proposition was aimed at mid-sized solar installers who did not have the chance to gain the economies of scale of the big vertically integrated players. Their solution was some clever software that could mimic the big players’ scale economies by providing an end-to-end service of lead generation, paperwork administration, efficient dispatch of crews, supplier logistics, and receivables/payables management plus getting better supplier pricing.

Ascent sees their market as the 13,000 small independent solar installers that are looking to compete with the ten biggest. They have spent their time honing their value proposition to these customers in terms they understand. It apparently is working since they have a long list now of testimonials from existing and potential customers raving about the product they describe. A big lesson from this exercise is putting the value proposition in detailed metrics the potential customer find compelling – doubling the sales conversion rate, improving the productivity of operations, reducing installation cost, eliminating rework, and lowering the cost of lead generation. This kind of detail gives potential customers confidence that the claimed overall, hence the need for more runway. There are several directions Ascent could take this product to open even more markets and give their customers more of an edge—storage installations, and dual-use heat pump installations, for example—all of which are pretty similar to solar rooftop installation in terms of the processes Ascent’s software could improve.  Ascent OS is looking to close up to $4 million in its round in 2023, with a first closing in January if all goes well.

Thomas Hall

ABOUT THE AUTHOR

Gary Simon is the Chair of CleanStart’s Board. A seasoned energy executive and entrepreneur with 45 years of experience in business, government, and non-profits.

CleanStart Sponsors

Weintraub | TobinBlueTech Valley, Revrnt, River City Bank

Moss AdamsPowerSoft.biz, Greenberg Traurig, California Mobility Center

ToloPhoto’s Bumpy Startup Journey

ToloPhoto’s Bumpy Startup Journey

Photo from CalSEED website, awardees Cohort 4

In our December 13 Perspectives webcast, Thomas Karagianes, CEO of ToloPhoto, shared the story of his road to building a business.  He reinforced the importance of spending time early-on discovering customers and networking to find the resources he needed.  

In 2015 Thomas had a good idea.  Seeing all the problems in deterioration of utility distribution and transmission systems in remote areas causing wildfires, he came up with the notion of doing inspections with a drone rather than sending crews in the field to assess the condition of the systems manually.  Not just any drone would do, it had to be one that took exceptional high-resolution pictures.  Then those pictures needed to be analyzed better than having someone look at 100K+ photos one at a time.  The savings in time and in the costs of avoiding catastrophic failures on the system that could lead to sparking incredibly destructive wildfires could be enormous.  How did he go about finding what he needed to build his business?

He tried going to the people in the utilities he thought would have the most to gain from his innovation, but discovered the well-known aversion in utilities to taking risks with new technology.  He tried going directly to VCs to get the funds to build prototypes, but they told him that without a utility customer lined-up, they could not afford to have their money tied up for the time it would take to get to profitability.  

In the world of startups, Thomas was discovering the “Valley of Death” for himself—up close and personal.  By 2020, he found the value of spending more time seeking advice and building a network of connections.  The decision that made all the difference for him was to apply to CalSEED.  It originated in 2017 as a way to support early stage innovators that need money to develop and test their ideas.  It exists to bridge that “Valley of Death.”  ToloPhoto was awarded a $150,000 Phase 1 concept award and then did so well, it advanced to Phase 2 with an additional $450,000 to develop and test a prototype.  Now Thomas has much of what he needs to get a foot in the door with customers and investors.  Now he is getting exposure to the Electric Power Research Institute, to mentors, and to more sympathetic investors.  

What he still needs is at least one customer that says, “I gotta have it.”  But he is enthusiastic to keep searching.  In our discussion, we talked about other industries which might need his technology, particularly those that are desperate to inspect thousands of bridges for corrosion so serious it might cause a collapse.  The current method of manual inspection from bucket trucks under the bridge is far too costly and time-consuming.  

In summary, Thomas said the big lesson from his journey is not to spend too much time heads down developing the technology.  Asking lots of questions about what customers want and who the real customers are pays a lot of dividends.  

Thomas Hall

ABOUT THE AUTHOR

Gary Simon is the Chair of CleanStart’s Board. A seasoned energy executive and entrepreneur with 45 years of experience in business, government, and non-profits.

CleanStart Sponsors

Weintraub | TobinBlueTech Valley, Revrnt, River City Bank

Moss AdamsPowerSoft.biz, Greenberg Traurig, California Mobility Center

California Sunlight Finds a Niche

California Sunlight Finds a Niche

In the same year CleanStart was founded, Bing Gu founded his startup, California Sunlight.  Bing and his team were always coming up with solar-based products that others had overlooked and built a business around that.  The early years were lean, but now Bing has some very interesting products that are attracting attention and sales are growing.  His journey is one of persistence and struggle, but one which may now pay off.

Bing was born in China and received his Ph. D. in plasma physics there before relocating to Canada for a post-doc in 1999.  He moved to Sacramento in 2001 to advance his career. Bing partnered with a NGO to build
very simple solar products for use in underdeveloped countries. On that path he developed a number of solar ovens and cookers that were simple and cheap.  They were adaptable for campers, particularly backpackers seeking a way to cook food without a fire and without carrying containers of fuel.  He produced a very clever inflatable solar balloon that focused the sun’s energy with the help of reflective inner surface on the balloon, and focused by its parabolic surface.   Still the products did not catch on.

Rethinking the idea of making simple and inexpensive solar products, but this time focused on first world countries, Bing realized the range anxiety of owners of EVs and the desire for portable power when camping or recreating could be other good markets.  He and his collaborators came up with a new range of products using photovoltaic panels and lithium-ion batteries.  You can see them and read the details on his website (https://california-sunlight.com/).  Basically, he has a range of capacities of battery packs with convenient input (AC and DC) and output ports (12 VDC, 120 VAC, 3 watt USB), and a variety of portable, foldable solar panels to charge the batteries or to be used directly.  His most popular battery pack is the 2000 W/1800 Wh one for $1800, with an integrated handle and wheels so it can be rolled around like a piece of luggage.  His foldable 36 v PV panels come in sizes from 100 watts ($200) to 1000 watts ($2,000) that can be plugged together.  He says the 2000-watt storage unit can run an efficient refrigerator for 24 hours.  

He has gained a great deal of interest in his products both from the recent spate of power shutoffs and from a road trip he took up from San Diego showing off his product at various stopovers at EV events along the way.  

His notion of using the 2000-watt unit as a “peace of mind” reserve for an EV is to keep it in the trunk and then use the Level 1 charger most EV come with to plug into the AC outlet on the battery pack to provide an emergency 8-10 mile charge to limp home or to a charging station.  He wanted to avoid trying to do something more elegant that would require altering the wiring on the vehicle and potentially jeopardizing the vehicle warranty.  Keep it simple.  

Since the pivot to the PV products, sales have taken off for California Sunlight.  He is now selling hundreds of units per year with revenues in excess of $250,000 per year and growing, a level which he says is profitable.  He has outsourced the creation and management of his website, as well as fulfillment of online orders.  His units are manufactured in Shenzhen, China for now, but he wants to bring that activity home.

He has no illusions that his products could be duplicated, but believes the features he has included, the simplicity of use, his aggressive prices (including a 10% discount for anyone in the Sacramento region), and his focus on a relatively overlooked niche product can propel his sales growth.  We will be monitoring his progress.

Bing Gu

Bing with the 100-watt folding PV array

Bing with the 2000 W

Bing with the 2000 W unit (yellow) plugged into the 100-watt foldable PV array, and a 500 W unit (red)

Thomas Hall

ABOUT THE AUTHOR

Gary Simon is the Chair of CleanStart’s Board. A seasoned energy executive and entrepreneur with 45 years of experience in business, government, and non-profits.

CleanStart Sponsors

Weintraub | TobinBlueTech Valley, Revrnt, 

Moss AdamsPowerSoft.biz, Greenberg Traurig