Last Week in ConTech - 25 March 2024
Building bigger planes to unlock wind infrastructure potential
In this issue there are:
15 Startup Fundings
9 Policy and Regulatory Changes
1 New investment funds
5 Acquisitions
8 News articles
Reading time: 12 mins
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Startup Funding
Estimating
Ediphi, a Boston startup, raised $12m in Series A funding. They are building a cloud based solution to help construction estimators to predict building costs. More here.
Notes:
Ediphi raised $6.5m in seed funding in November 2023 led by Suffolk Technologies.
Industrialized Construction
Automated Architecture (AUAR), a London startup, raised £2.6m in seed funding. They are building a distributed and automated micro-factory network to deliver sustainable timber housing. More here.
[Hiring - 1 role in Other]
Notes:
AUAR aims to empower the industry in delivering sustainable housing by licensing its low CapEX robotic micro-factories and tech stack to a network of builders and contractors.
This allows existing home builders to deliver low energy houses cheaper to their clients and is in contrast to the traditional vision of centralized automation in large factories.
Their tech stack includes:
Design algorithms which can generate endless design variations adapted to local sites.
An underlying data model which makes costs and data known upfront to clients and manufacturing partners.
Water
Salinity Solutions, a UK startup, raised £1m in funding. They are developing a batch reverse osmosis water treatment technology which uses less energy, generates less waste and purifies a higher amount of wastewater. This dramatically reduces the environmental impact of treatment. More here.
Hydraloop, a Dutch startup, raised €10.5m in Series B funding. They design, manufacture and sell graywater recycling systems which can be used to recycle wastewater in sporting facilities, student housing and commercial properties. More here.
[Hiring - 1 role in Sales]
Notes:
Water Sensitive Urban Design (WSUD) is a design philosophy which treats all forms of water (potable water, rainwater, stormwater, graywater and blackwater) as resources that should be managed.
Due to concerns over water availability, government regulation and subsidies will increasingly focus on water reusability.
An example is a subsidy by the Spanish government which offers a 70% subsidy for hotels and campsites that want to recycle graywater.
Green Materials
CemVision, a Swedish startup, raised €10m in seed funding from investors including Zacua Ventures. They use recycled industrial waste from the steel and mining industry to produce a green cement which reduces CO2 by more than 95% and builds early strength 5x faster when compared to traditional Portland Cement. More here.
[Hiring - 3 roles in Other]
Notes:
This is the largest seed funding round for a green cement startup to date.
CemVision announced last year that they have reached industrial scale production of green cement at its demo plant ~ 4,000 tonnes annually (global demand for cement is ~ 4bn tonnes).
Novocarbo, a German startup, raised $27m in funding. They remove C02 from the atmosphere and produce biochar which is used in the construction and industrial sectors as a soil amendment or as a concrete aggregate. More here.
[Hiring - 2 roles in Operations, 1 role in Finance]
Supply Chain
Radia, a Colorado startup, is raising $300m in Series C funding. They develop planes which can carry large wind turbines which are used only for offshore projects because of transportation limitations onshore. More here.
Notes:
An important consideration in construction is how we can deliver products to the site.
For offshore wind farms, large wind turbines can be delivered directly to the site via large ships.
However for inland wind farms, a bottleneck is the transportation of large turbines from ports via trucks.
Wind turbines must be delivered in one piece, and the roads can support 230 ft (70m) turbines; however, the turbine size is expected to increase to 330 feet (~100m), making transportation by truck difficult and limiting energy generation capability.
Radia’s solution for inland wind farms is to build a plane large enough to carry a large turbine, providing an alternative delivery method instead of relying on ports and trucks.
This alternative delivery method provides the opportunity for wind turbines to be delivered to vast swaths of inland areas, transforming the generation capability of wind energy in those regions and making wind more viable.
Related:
Building Decarbonization
Monaire, a Massachusetts startup, raised $3.5m in seed funding. They provide building management systems which use AI to automatically detect, diagnose, and fix problems with HVAC systems in small commercial buildings to reduce energy consumption. More here.
[Hiring - 3 roles in Sales, 3 role in Software]
Enpal, a Berlin startup, has raised €1.1bn in debt commitments. They provide energy saving solutions for homeowners such as solar panels, batteries and heat pumps. They offer a comprehensive package including consultation, planning, and installation. More here.
Drilling
Quaise Energy, a Massachusetts startup, raised $21m in extended Series A funding. They are developing advanced drilling technology which allows for deep geothermal power plants. More here.
[Hiring - 1 role in Other]
Notes:
Quaise Energy have developed a drilling technique which melts, vaporizes and bores through extremely hard and hot rock layers using high-power microwaves (continuous beam of energy waves) in the millimeter range.
This technique allows for the access of deep geothermal up to 3-20 km below the Earth’s surface at temperatures of 500 degrees celsius.
This novel drilling technique could have applications in the construction industry.
Energy Infrastructure
PowerGem, a New York startup, raised equity funding (undisclosed). They provide modelling software and technical services for grid operators and electric utilities and help engineering firms to assess electric transmission grid reliability. More here
[Hiring - 2 roles in Other]
Buzz Solutions, a Californian startup, raised $5m in funding. They use AI to automate power line inspections, assist with prioritizing and performing maintenance and protecting critical energy infrastructure through monitoring services. More here.
[Hiring - 1 role in Sales]
Weather
MarineLabs, a Canadian startup, raised CAD$4.5m in seed funding. They provide real-time maritime weather intelligence which is used as validation data essential for modelling coastal infrastructure projects and designing climate resilient coastal protection. More here.
[Hiring - 1 role in Sales, 1 role in Operations, 2 roles in Software]
Other
Fuel Me, a Chicago startup, raised $18m in Series A funding. They provide an online ordering and management platform for fuel delivery services used by large scale and enterprise transportation and construction companies. More here.
[Hiring - 2 roles in Sales]
Coast, a New York startup, raised $25m in funding. They offer fuel cards and a real time financial platform managing fleet related expenses for ‘real world’ field personnel business such as plumbers, HVAC businesses, landscapers and construction companies. More here.
[Hiring - 2 roles in Sales, 1 role in Finance, 5 roles in Software, 1 role in Product]
Notes:
Coast is focusing on the construction industry as they recognise they have data needs regular corporate cards do not provide.
Firms want detailed real time visibility on employee spendings at a line item level.
This allows them to provide insights such as how many liters of which fuel grade is being bought for which vehicle.
Regulatory & Policy Changes
Biden administration lays out plan for zero-emission 'freight corridors'
The Biden administration released its National Zero-Emission Freight Corridor Strategy.
This is a plan to establish a charging and hydrogen refuelling infrastructure network for zero emission commercial trucks by guiding development to high volume priority corridors and existing freight hubs.
It will involve a focused buildout around freight and trucking return to base depot infrastructure, regional hub to hub corridors and national network nodes.
It involves four phases:
Establish priority hubs based on freight volumes (2024-2027)
Connect hubs along critical freight corridors (2027-2030)
Expand corridor connections initiating network development (2030-2035)
Achieve national network by linking regional corridors for ubiquitous access (2035-2040)
25 cities to get climate-focused innovation teams through $200m Bloomberg initiative
The Inflation Reduction Act and 2021 Infrastructure Law have provided more than $400b of available funding and grants to local governments.
A bottleneck is local government capacity in monitoring, identifying and then developing grant applications.
The funding is aimed at helping communities leverage federal funds by providing customized policy and technical assistance.
Notes:
This issue is not limited to local governments.
Given the amount of funding and grants available, contractors specializing in the energy transition and building decarbonization projects often do not have the capacity to find and apply for grants - the process can be laborious.
This has led to the rise of aggregator solutions which streamline the process of finding and applying for grant funding.
An example is Sealed which provides software and solutions to contractors to help them install more home weatherization and electrification projects by calculating energy savings for their customers, identifying and guaranteeing eligible government rebates and submitting the rebate applications.
For those interested, I’d also recommend checking out Pivla (part of the 2024 Formwork Labs Cohort) which is building a solution to help firms navigate the $350 billion in funding available for energy-efficient construction through the recent Inflation Reduction Act in order to lower project costs.
Proposed National Building Code Changes for Encapsulated Mass Timber Buildings (Canada)
In Canada, the National Research Council (NRC) (a Federal Crown Corporation) publishes model codes, including building, fire safety, plumbing, and energy codes, for adoption by provincial and territorial authorities.
The provinces and territories can either adopt these model codes in their entirety and modify as required, or they can publish independent codes, which may or may not be based on the NRC's model codes.
Changes have been proposed to the National Building Code regarding Encapsulated Mass Timber Construction (EMTC).
EMTC refers to buildings where the mass timber components of the building have been surrounded by fire-resistive material.
The proposed changes could make EMTC a more viable construction method, which is relevant for those seeking low-carbon alternatives to traditional construction materials.
US releases ‘strongest ever’ car pollution rules in push for EV transition
The US Environmental Protection Agency has announced the final national pollution standards for cars, light duty trucks and medium duty vehicles for model years 2027 through 2032 and beyond.
These standards aim to avoid over 7b tons of carbon emissions.
Notes:
These standards accelerate the transition to electric vehicles (EVs), and as a result, there will be an increased demand for charging infrastructure.
To accommodate the accelerated increased electricity demand, an improvement in the electricity grid is required.
There will be a greater demand for critical grid components such as transformers and for 'grid orchestration' technology.
This has been reflected in rising venture funding for startups in these sectors.
National Grid announces $4B plan to upgrade upstate New York power grid
In 2022, the US Department of Energy determined that transmission lines need to grow by 60% by 2030.
This is to meet heightened demand from population growth and connect renewable energy projects to the grid.
The $4b will support 70 projects including building substations and rebuilding over 1,000 miles of transmission lines to carry more electricity and better handle extreme weather.
Border projects get $1B for clean construction
38 US land ports of entry will get electrification and low carbon material upgrades.
The goal is to modernize facilities and increase US clean manufacturing and sustainable technologies.
The funding will include converting buildings to electric energy, improving windows and water systems and utilizing greener materials in the buildings such as paving with low-carbon concrete.
Florida bill aims to ban local mandates for heat protection
House Bill 433 would block local governments from mandating heat exposure protections.
Should it be signed by the governor, counties and cities in Florida will note be able to require employers to have any type of mitigations for extreme heat even for outdoor workers in construction.
The law does state, if the Federal Occupational Safety and Health Administration has not developed rules regulating heat by July 1 2028, the Dept. of Commerce must adopt a statewide heat exposure requirement.
Update of Washington’s wildfire building code gets ditched
The Wildland Urban Interface codes were meant to protect homes on the edge between wooded and developed areas against wildfire.
The codes require homes in these areas to be built with certain fire resistant materials, less surrounding vegetation and accessible driveways.
Areas were mapped to determine where the code was to be applied.
The final map required most of the state to follow at least some code.
Implementation of the code is to be pushed back until new maps for wildfire risk are drawn.
DOE unveils $180M for energy efficiency, air quality upgrades in K12 schools
The US Department of Energy is providing funding for energy upgrades in schools.
The eligible projects include new HVAC and ventilation systems and alternative fuel vehicles such as electric vehicles and infrastructure and renewable energy technologies.
The aim is to reduce energy use and operating costs for schools.
New Funds
Montauk Climate, a New York incubator has launched with $8.5m in operating capital. They are dedicated to creating technology companies at the forefront of climate, infrastructure and the energy transition. More here.
Acquisitions
Shell plans to divest 1000 retail sites (of ~46,000) in a shift towards Electric Vehicle charging. More here.
Notes:
Shell will focus on public chargers as it believes customers need them more than home charging.
As discussed in this issue (see PowerDot) expectations over consumer behavior on electric charging habits are diverging.
Some believe charging infrastructure will continue to reflect service station behavior (taking trips to refuel), while others believe drivers will want to charge passively at retail locations, offices, gyms, or their homes, integrating charging into their existing daily routines.
Terra Drone, a drone and advanced air mobility company has become the largest shareholder in Aloft Technologies, a US company focusing on developing drone airspace management and UTM systems.
Notes:
Unmanned Aircraft System Traffic Management (UTM) refers to how airspace will be managed to enable multiple drone operations conducted beyond visual line of sight where air traffic services are not provided.
It is required to allow UAVs (unmanned aerial vehicles) and drones to co-exist within the same airspace as manned aircraft.
The aim is for UTM to provide autonomous low altitude airspace management without the need for air traffic controllers.
This will be integral for cities due to the increasing amount of unmanned aircraft operating in civilian airspace such as drone parcel delivery.
Boral, a construction materials company, is urging shareholders to reject a $1.3b offer for the company. More here.
Carlisle, a building products company, is to acquire MTL, a commercial roofing company for $410m. More here.
TPG, an alternative asset manager, is in talks to acquire the manufactured housing business of Canadian Apartment Properties. More here.
News
Mass timber producer debuts construction services division
Mercer Mass Timber, a timber building materials manufacturer will offer onsite installation and consultancy services.
The new division is not aimed at competing with general contractors, rather they would work with clients who are building with mass timber for the first or second time.
They provide services such as engineering, full mass timber structure erection, project and labor management, scheduling and quality control.
Schneider Electric, NVIDIA partner to map AI data center playbook
The collaboration will provide reference designs for upgrading existing data centers to meet AI demands.
Florida approves statewide AI traffic management by NoTraffic
NoTraffic is a startup which offers AI driven traffic management systems.
The Florida Department of Transportation has approved the use of the startups technology throughout the state.
The technology gives traffic authorities the ability to control and prioritize traffic flow for all transportation modes including vehicles, pedestrians and bicycles.
Industrial heat pumps: Five considerations for future growth (McKinsey)
Automatic e-bike power cuts to be trialed in Amsterdam
‘Intelligent speed adjustment' technology can be used to actively restrict motors when riding through hazardous areas (traffic centers, schools, parks etc)
Lighthouse, a timber-frame modular builder is on brink of administration
The climate case for a career in mining
Scientists Hack Weather Satellite Data to Quantify Methane Leaks
Researchers can observe emissions every five minutes and estimate the total amount emitted.
If I missed anything this week, please reply and let me know! I’ll make sure to include it next week.