New Investment Opportunity: Quidnet Energy
Underground storage for low-emission power
- Patented energy storage technology uses the Earth as a mechanical "battery" to store energy as pressurized water beneath the ground
- Smooths rapidly fluctuating net loads of wind, solar, intermittent renewables at lower cost than other long duration energy storage technologies
- Texas-based company leverages existing oil and gas industry supply chain and drilling systems with multibillion-dollar annual deployment capacity
- $30M first deployment contract signed with CPS, largest US public utility
- $10M award from US Department of Energy competition
- Fast-growing market with sustainable-energy tailwinds: $50B expected to be installed globally by 2025, $500B by 2030, $1.8T by 2035
- Up to $15M Note which will convert according to either 25% discount or $70M valuation, led by existing investors including Breakthrough Energy Ventures
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Dear Josb,
Renewable energy sources such as sun and wind are good as long as the sun shines and the wind blows, but the power grid requires stored energy-backup systems to produce an uninterrupted supply of electricity to consumers and industry.
OurCrowd is investing in Quidnet Energy, a Texas-based energy storage technology company that provides a radically lower-cost form of grid-scale storage using the Earth as a mechanical "battery." The details in this email are based on information received from, and verified solely by, the company.
The Problem
Climate change is a worldwide threat that requires swift remedial action, including rapid transition to a carbon-free electric grid. Among the most potent tools for this transition are wind power and solar energy. These renewable energy resources produce no emissions and are powered by free, sustainable energy sources. Unfortunately, the availability of wind and sun is variable, with periods of cloud cover or windless conditions leaving these renewable technologies temporarily unable to generate electricity. As low-emission resources are added to the grid, the power utilities need new technology to store energy for reliable electricity generation.
The Solution
Quidnet's patented geomechanical pumped storage technology utilizes excess renewable energy to pump water into deep underground reservoirs where it is stored under high pressure. When renewable energy is not able to meet demand, the pressurized water is released, driving hydroelectric turbines to produce electricity. Quidnet systems deploy at a significantly less capex per kWh than other long-duration energy storage systems. Broad IP coverage includes underlying subsurface energy storage process as well as reservoir sealing, subsurface monitoring and other key components critical for commercial operations.
The Traction
During 2020, Quidnet executed pilot projects in NY, Texas, Ohio, and Alberta, Canada to test the technology in diverse geologies and regulatory settings. The company executed its first deployment contract totaling ~$30M of lifetime revenues with CPS, a large Texas-based municipal utility company. Quidnet is currently on track to fully commercialize its storage facilities in 2024-2025 ‒ in time to meet aggressive state and regional long-duration storage goals.
Quidnet was selected as one of only eight companies to receive $10M in funding from a prominent US Department of Energy program to scale up critical technologies for clean energy production.
The Market
The global market for long duration energy storage is expanding rapidly and is estimated to reach $50B of installed systems by 2025, rising to $500B by 2030, and $1.8T by 2035.
The Team
Quidnet is led by CEO Joe Zhou who previously led business development at Green Charge Networks, a battery storage company acquired by Engie, the French multinational utility company. Joe sits on the board of the LDES Council, whose mission is to replace the use of fossil fuels to meet peak demand by accelerating the market for long duration energy storage. The team comprises seasoned project development, engineering, construction, and finance executives with 50+ combined years of experience managing multimillion-dollar capital projects with Tier 1 oil and gas companies and financing multibillion dollar infrastructure capital projects globally.
The Round
The company is raising a $15M Note led by existing investors with a 25% discount or a $70M cap and 5% interest. Participants include Breakthrough Energy Ventures, backed by Bill Gates et al, and Grantham Foundation.
Meet the CEO
We're hosting a webinar/conference call on Wednesday, January 11th, at 8PM Israel / 1PM New York / 10AM San Francisco for investors to meet CEO Joe Zhou and learn more about Quidnet.
Can't make the webinar? Register and we will send you a recording of the call.
The Quidnet Solution
The Quidnet module is built with conventional drilling technology and off-the-shelf hydropower equipment. Facilities operate with closed-loop water systems designed for conservation against evaporating loss. The energy-storing rock bodies are non-hydrocarbon bearing and found abundantly throughout the world, intersecting with major electricity transmission and distribution hubs.
When electricity is abundant, it is used to pump water from a pond down a well (1) and into a body of rock. The well is then closed, keeping the energy stored under pressure between rock layers (2) for as long as needed. When electricity is needed, the well is opened (3) to let the pressurized water pass through a turbine to generate electricity, and return to the pond ready for the next cycle.
Quidnet developed a broad patent portfolio covering both underlying subsurface energy storage process as well as reservoir sealing, subsurface monitoring and other key components critical for commercial operations.
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