Last Week in ConTech - 17 June 2024
Renewable energy infrastructure and rising local opposition
Last Week in ConTech is a summary of the most important construction startup funding, news, policy changes and national project investments in the last 7 days. The goal is to provide decision makers with information on technology solutions and macro-economic trends in construction to help drive innovation in the industry.
In this issue there are:
19 Startup Fundings
10 Policy and Regulatory Changes
7 New National Infrastructure Projects & Priorities
0 New investment funds
1 Acquisitions
6 News articles
51 open jobs - view here
Reading time: 15 mins
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Startup Funding
Training
Visibly, a London startup, raised €7m in funding. They provide training and compliance management for employees in infrastructure sectors such as construction and utilities. More here.
[View open jobs - 2 roles in Operations, 1 role in Software]
Water
vorteX-io, a French startup, raised €2.9m in funding. Their solution measures the key hydrological parameters for rivers and streams (water height, surface velocity and imagery) in real time to provide strategic insights for public and private decision makers, optimize water management and secure infrastructure. More here.
[View open jobs - 1 role in Finance, 1 role in Marketing]
Notes:
vorteX-io’s solution provides hyperlocal and accurate water metrics which can be used for design and ensuring transportation infrastructure resiliency (protect from flooding).
In Australia, the Bureau of Meteorology has remote water gauge stations which provide near real time rainfall statistics which can be interpolated to determine flooding risk.
This solution monitors waterways to provide business and infrastructure relevant alerts supporting evacuation and resiliency planning.
Watergate AI, a London startup, raised £1.8m in seed funding. They use AI to detect and proactively stop water leaks.
Site Coordination
OnStation, an Ohio startup, raised $8.5m in Series A funding. They provide digital stationing solutions for the heavy highway industry which offers a location based project record from bid to close. More here.
Notes:
OnStation’s solution allows users to identify their location instantly on a job site via a mobile app.
User’s can overlay design layers on the project map and communicate via a chat platform which tags their comments/notes based on their location.
Site Decarbonization
Tenderd, a Danish startup, raised $30m in Series A funding. They provide a platform to analyze data from heavy equipment used in construction to improve equipment productivity by tracking and running equipment effectively to optimize asset usage and lower emissions. More here.
Supply Chain
CargoSense, a Virginia startup, raised $8m in funding. They provide a ‘Visibility OS’ platform for supply chain automation allowing users to gain real time transportation visibility, risk analysis and act as a system of record. More here.
Notes:
A use case for this software was a data center operator which needed to track inbound delivery of heavy haul truck loads used in the construction of new data centers.
The solution allowed them to track the shipment including ensuring it met security constraints (only dwelling at secure locations, never stopped for more than a certain time, etc) and environmental constraints, such as condensing humidity, throughout the journey.
Site Safety
Relay, a North Carolina startup, raised $35m in Series B funding. They have created smart walkie-talkies which enable managers to communicate to workers remotely while providing real time location data and insights. More here.
[View open jobs - 5 roles in Sales, 3 roles in Support, 2 roles in Marketing, 1 role in Operations, 1 role in Product, 1 role in HR, 2 roles in Other]
Notes:
On construction sites walkie-talkies are often used as the primary mechanism for communication especially between mobile plant operators and laborers.
A reason is that for safety reasons phones cannot always be used on the site (on some rail project sites in Australia phones are prohibited due to the need to maintain situational awareness).
Relay’s solution allows for individual and group based communications, provides real-time language translation (in the US, Spanish translation is valuable), and serves as a safety alert if assistance is required.
Site Security
Vosker, a Canadian startup, raised CAD$171.2m in debt. They build surveillance hardware such as security cameras which are solar powered, wire-free and don’t require WI-FI. They have gained traction in the construction sector to monitor ins and outs to protect material and equipment. More here.
[View open jobs - 5 roles in Marketing, 2 roles in Product, 1 role in Operations, 1 role in Sales, 1 role in Other]
Weather
Mitiga Solutions, a Spanish startup, raised €8m in Series A extension funding. They help businesses better understand, predict and calculate the impact of climate change and adverse weather events to future proof assets (real estate and infrastructure). More here.
[View open jobs - 2 roles in Sales, 3 roles in Product, 2 roles in Software, 2 role in Finance, 1 role in Support]
Critical Infrastructure
XONA, a Maryland startup, raised $18m in funding. They provide a secure platform for remote access to critical infrastructure such as energy infrastructure, government and manufacturing. More here.
[View open jobs - 1 role in Sales]
Notes:
Infrastructure is increasingly operated and managed in the digital domain with cybersecurity and critical threats a major concern for governments.
Due to this, the US recently updated its blueprint for protecting critical infrastructure from hackers.
In this they formalized the role of the Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency (CISA) as the lead agency tasked with protecting infrastructure from bad actors and natural hazards.
Building Decarbonization
kelvin, a Parisian startup, raised €5m in funding. They are building a software solution which provides energy efficiency recommendations for home energy renovation projects. More here.
[View open jobs - 1 role in Other]
Notes:
To meet decarbonization goals, over 300m homes must be renovated in Europe within the next 30 years.
In France, the National Housing Agency’s goal is to have 200,000 homes renovated in 2024.
Parity, a Canadian startup, raised $19m in Series B funding. They have built a remote HVAC optimization service which uses control automation algorithms, real time monitoring and proactive technical support to ensure heating, cooling and ventilation systems are operating efficiently. More here.
[View open jobs - 2 roles in Finance, 1 role in Other]
Procurement
The Build Chain, a British startup, raised £1.7m in Series A funding. They provide an online building materials procurement platform which connects contractors, merchants and manufacturers. More here.
Home Construction
Haaven, a Dutch startup, raised €1.1m in pre-seed funding. They are developing a homebuilding platform which matches customers with builders, engineers and architects and manages the budget and timeline. More here.
Electric Charging
FLO, a Canadian startup, raised CAD$136m in Series E funding. They are an EV charging network operator and smart charging solutions provider. More here.
Renewable Energy
Sol Systems, a Washington startup, raised $85m in debt. They construct and operate utility scale solar projects with the funding going towards five project sites. More here.
[View open jobs - 2 roles in Construction, 1 role in Finance, 3 roles in Other]
Smart Energies, a French startup, raised €87m. They are a vertically integrated independent power producer (IPP) specializing in the financing, constructing and operating of medium sized solar projects. More here.
Other
Connexus, a Washington startup, raised $800k in Seed funding. They provide a procurement and request for proposal (RFP) platform for the real estate sector helping owners and operators to receive and consider bids, manage contracts, analyze spend data and ensure vendor insurance compliance. More here.
ResVR, a Canadian startup, raised CAD$1.7m in funding. They offer a visualization platform for home builders and developers that showcases all the options and upgrades for each floor plan allowing clients to easily view and select design options. More here.
Notes:
Similar visualization concepts have been considered for larger scale construction projects such as ‘BIM big room.’
In this a visualization of the design is placed on a screen (or in a VR headset) with all project stakeholders walking through the project site and aligning on delivery requirements.
This is valuable as construction decisions are made in a ‘mobile and decentralized’ fashion.
Decisions can be made via email, over text, in the clients or designers office or in the site office often looking at 2D drawings.
Being able to communicate in 3D and accurately communicate concepts improves decision making (and outcomes).
Policy and Regulatory Changes
U.S. GSA Officially Recognizes Uniform Plumbing Code
The U.S. General Services Administration (GSA) has incorporated IAPMO’s Uniform Plumbing Code (UPC) in its newly released Facilities Standards for the Public Buildings Service (P100).
P100 establishes mandatory design standards and performance criteria for GSA-owned buildings.
Design and construction professionals must abide by the policy and technical criteria in P100 while programming, designing, and documenting GSA buildings.
Notes:
Uniform codes are model or template building codes which are written by non-profit entities to enhance the safety and adoption of new practices in construction.
When a government or local municipality writes their building code, they can use the uniform code as a base or reference and modify as needed eg. in New Zealand they add additional earthquake loading measures.
This is the first time a US federal agency has officially referenced these uniform codes in their standards.
Tax on gas-powered large buildings will go to voters in Berkeley, California
In 2023, the Court of Appeals struck down Berkeley’s first in the nation ban on gas hookups in new construction.
In response and driven by community organizers, the city has created a ballot measure on whether the city should tax large buildings that use natural gas.
Notes:
After the court decision, a number of municipalities preemptively modified their gas bans in the anticipation of litigation.
This grassroots approach to tax gas hookups which is driven by voters, if successful, could be replicated by other municipalities as a way to drive building decarbonization.
EU climate policies could be slowed in future after rightward shift in election
The EU Parliament recently underwent elections shifting to the right.
The expectation is that this will make it harder to pass ambitious climate policies though the majority of their green policies will stay.
Notes:
The EU has consistently led in climate policy including ‘The Energy Performance of Buildings Directive (EPBD)’ which dictates the energy retrofit of the worst performing buildings.
The shift to the right could influence the number and scope of climate policy impacting the growth and formation of sustainability startups.
Developments in Opposition to Renewable Energy Facilities Through December 2023
A new report identified local opposition as a significant barrier to the renewable energy facilities in the US.
The report identified 378 renewable energy projects across 47 states that have encountered significant opposition.
It also identified 395 restrictions across 41 states as well as 19 state level restrictions that are so severe they could block a renewable energy project.
NYC approves second set of zoning changes
The updates remove a decades-old rule that barred certain commercial building uses.
The changes expands where businesses can be located in the city, increases the space for small-scale clean manufacturing and enables adaptive reuse projects involving existing buildings.
They include the removal of zoning impediments to rooftop solar, solar parking canopies, onshore wind and energy storage systems.
Gov. DeSantis approves building regulations law for windows, doors and garage doors
Building Regulations (HB 267) revises the time frames in which a building permit must be issued.
Additionally it requires the Florida Building Commission to modify Florida’s building codes for windows, doors and garage doors by waiving requirements for sealed drawings to replace windows, doors, and garage doors in homes that meet state standards.
Notes:
Permitting reform is seen as a key requirement in unlocking housing supply and reducing home prices.
Labour would allow firms to spend half of apprenticeship funds to train existing staff (UK)
Labour have announced plans for construction firms to use apprenticeships funds to train their existing workforce.
Firms are currently provided funds for apprenticeships raised through taxes and a levy paid by businesses with an annual wage bill of more than £3m.
Up to 50% of a firm’s fund could be used for training staff for an approved list of ‘high level technical skills.’
AI-powered cameras to sweep streets for code violations in a California city
The city of Stockton, California unanimously voted to use vehicle-mounted cameras and artificial intelligence to detect code violations like overgrown lawns, improper parking, peeling paint, boarded windows and graffiti.
Notes:
AI solutions will become increasingly common in cities as they struggle with resourcing.
While this solution is addressing understaffed police departments, it could be expanded to building inspections and infrastructure maintenance.
AI adoption in ‘smart cities’ is likely to be driven in a bottom up fashion first adopted by local municipalities before being used by states.
It remains to be seen if these solutions will encounter pushback or litigation.
$45M available for energy efficiency retrofits: DOE
The US Department of Energy announced 6 awards to provide access to capital to fund energy efficiency projects, including audits, upgrades and retrofits.
Energy efficiency financing is a proven approach to ramp up the adoption of clean energy.
Based on performance data from previous energy financing programs, each dollar of federal investment can draw over $20 in private capital.
9 climate resilience job training programs to launch with $60M from NOAA
The initiatives are to train workers for coastal climate resilience jobs across the US.
Job training areas include nature-based solutions, water utility management, construction, emergency preparedness and response and community engagement.
Notes:
Existing infrastructure requires a significant amount of work to ensure climate resiliency e.g rising sea levels and extreme weather events.
A chokepoint is the availability of labor.
National Infrastructure Projects & Priorities
Global
Clean Energy Investment Set to Run at Double Fossil-Fuel Spend
Investment in clean energy technologies will climb to $2 trillion this year.
This is the first time investment in renewable power and grids has overtaken the amount spent on fossil fuels ($1 trillion).
The majority of investment will be made in solar power ($500 billion).
United States
Charting a new course: The untapped potential of American shipyards (McKinsey)
Demand is increasing for shipyards due to:
The US Navy, the industry’s principal customer, increased its shipbuilding budget by 12.5 percent per year from fiscal year 2020 to fiscal year 2024.
Their most recent 30-year plan calls for the construction of 290 to 340 new ships by 2053.
There is additional anticipated demand from the AUKUS nuclear submarine partnership among the Australian, US, and UK defense agencies.
Notes:
This increase in demand could increase investment (and construction) in upgrading aging shipbuilding infrastructure (some infrastructure is from WWII).
European Union
European Union Hits E.V.s From China With Extra Tariffs Up to 38%
The EU will impose additional tariffs of up to 38 percent on electric vehicles imported from China into the bloc.
This is in an effort to protect the region’s manufacturers from unfair competition.
The EU automotive sector provides nearly 13 million jobs across the 27-nation bloc which is the world’s second-largest market for electric vehicles after China.
Notes:
As covered in this issue, the US recently increased Chinese EV tariffs to 100%.
Green manufacturing is increasingly a target of the trade war with governments using both tariffs and subsidies to spur domestic industries.
This has an impact on infrastructure (and construction).
India
India to invest over $360 billion in renewable energy and infrastructure by 2030: Moody's
India's infrastructure companies will need to invest between $190 billion and $215 billion in the next seven years.
This is to meet the country's goal of achieving 500 gigawatts (GW) of renewable energy capacity by 2030 and aim to be net zero by 2070.
An additional $150 billion to $170 billion will be required for the expansion and enhancement of electricity transmission, distribution, and energy storage systems.
China
The Largest Solar Power Plant In The World Just Got Switched On
The plant is located in Northwestern China and provides 3.5GW in capacity.
This is enough to power a country the size of Cameroon or Laos.
In 2023, China commissioned as much solar PV as the entire world did in 2022.
By 2030 almost half of China’s electricity generation will come from renewable energy sources with the goal to achieve net zero by 2060.
China installs world’s 1st 18 MW wind turbine, can power 36,000 homes yearly
The wind turbine is the world’s largest by power rating with the turbine’s rotor diameter is 853 feet (260 m).
The trend of increasing wind turbine size is being driven by Chinese firms with European ones such as Vestas not planning further product development in bigger turbines.
Additionally Chinese turbine manufacturers have taken the lead in the installation of offshore wind turbines being able to achieve this in less than 24 hours.
Notes:
China is creating a lead in clean manufacturing and innovation in the industry.
Due to this and the continued low cost of Chinese green technology, the US and EU have implemented tariffs and increased investment (Net Zero Industry Act, EU) in an effort to remain competitive and spur domestic growth.
This has downstream implications on construction.
China Plans Wave of Floating Nuclear Power Stations
China is planning a series of floating nuclear reactors (up to 20) on the contested South China Sea.
The reactors, described as mobile "power banks," are small plants designed to be housed on ships and provide power to both stationary facilities and other vessels.
They are intended to supply energy to China's artificial islands, where military infrastructure has been established, including airports.
Notes:
Floating reactors operate at roughly 25% the capacity of a standard land-based nuclear power station with Russia having the only operational floating plant in the world.
The development and deployment of these offers a novel solution to provide scalable and maneuverable clean energy.
This has applications for the aid and development sectors including disaster relief and remote construction sites (e.g. Pacific Islands / Antarctica).
Saudi Arabia
Saudi Arabia is getting into semiconductors, but it's not trying to beat Nvidia — yet
Saudi Arabia reportedly wants to attract 50 chipmaking firms to the country by 2030 to diversify its economy away from crude oil.
The National Semiconductor Hub is focused on relocating and establishing new chip companies without fabrication sites.
In the medium term chip manufacturing will be done abroad.
Notes:
This announcement shows significant interest from the government to establish capability in semiconductor development.
In the longer term, the hub may begin to develop domestic manufacturing capabilities requiring construction capability.
As mentioned in this issue, other countries such as Malaysia are also investing in attracting semiconductor talent indicating global demand for the industry which is seen as a national priority growth area - construction talent and technical expertise could command a premium.
Acquisitions
Ambuja Cements, an Indian cement product, is acquiring Penna Cement, another Indian cement producer for $1.2b. More here.
Notes:
This will increase Ambuja presence in South India.
Demand for cement is rising given India’s plans to modernize and grow infrastructure.
News
Data centers, retail lead construction planning
The Dodge Momentum Index, a benchmark that measures nonresidential construction planning, increased 2.7% in May.
Planning in the institutional sector (e.g. education, life sciences and healthcare) slowed by 3.4%.
Commercial planning (e.g office, industrial and data centers) rose 5.5%.
Virginia Explained: Data center expansion, with all its challenges and benefits
Virginia is home to 70% of the world’s data centers and is a significant source of tax revenue.
In the past legislative session dozens of bills were introduced to address rising concerns on how data centers could impact water demand, power delivery costs, the environment and more.
Notes:
Data center demand continues to grow due to the needs of AI.
Understanding how public concerns are influencing policy in Virginia is a valuable case study for understanding how development rules may be modified in other states to attract investment.
How to Build an AI Data Center (Construction Physics)
Digital infrastructure requires physical infrastructure - all that software requires some sort of computer to run it.
Amazon plans on spending $150 billion on data centers over the next 15 years and Meta plans on spending $37 billion on infrastructure and data centers, largely AI-related, in 2024.
A survey of data center professionals ranked availability and price of power as the top two factors driving data center site selection.
Solar-Powered Planes Take Flight
The light, uncrewed aircraft could provide surveillance and telecommunications that balloons and satellites can’t and stay aloft for months.
Notes:
Solar powered planes have applications for remote construction sites providing progress monitoring capability and internet access.
This is traditionally quite difficult due to limitations in infrastructure and coverage.
Researchers make ‘green’ floor to replace steel
The 3D printed single-piece, recyclable natural-material floor panel tested to be strong enough to replace construction materials like steel.
A significant cost of a traditional steel frame comes from workers cutting channels for electrical conduit, plumbing lines and ductwork for heating, ventilation and air conditioning after the steel floor assembly is nearly completed.
3D printing offers the ability to print the floor with cutouts designed into the product.
Johnson Controls launches global data center business
Johnson Controls has announced the creation of a new data center-focused organization, Global Data Center Solutions.
The team will prioritize offering their full suite of smart building technologies.
If I missed anything this week, please reply and let me know! I’ll make sure to include it next week.