Cleaner
energies

Report 3
Cleaner energies
The latest IPCC 6th Assessment Report underscores fossil fuel emission cuts as anurgent requirement in our climate change mitigation efforts. Although low-carbon
electricity generation and storage technologies were rapidly deployed in thelast decade, fossil fuels still represent ~80% of the world’s energy consumption (1).
This is highly alarming and inconsistent with the COP 21 Paris Agreement and IEA’s
net-zero roadmap, which project a need to reduce emissions to 20% by 2050 (2).
To effectively address our fossil fuel usage and emission impact, we must take active
steps toward an energy transition. This transition to the energy infrastructure of
the future will require substantial investment and new technological developments.
These factors are required to scale mass electrification and energy storage, andestablish a sufficiently diverse energy mix from alternative sources. Currently,
economical and geopolitical uncertainties, such as the ongoing war in Ukraine,
challenge these efforts and pull attention toward short-term policies and solutions
for energy security. Additionally, it is not enough to only tackle the fossil fuelemission problem from an energy angle. We must also create and implement
solutions in how we manufacture and build the energy infrastructures of the future.
For example, we can properly dispose and repurpose the composite materials
found in wind turbines, materials from solar panels and batteries to securelong-term environmental impacts.
Today’s deep tech entrepreneurs focus their work on the following topics:
3.1 Scaling low-carbon electricity production & storage
Moving away from fossil fuels requires massive electricity usage. Scaling
electrification demands innovative and low carbon energy harvesting and storage
solutions. These solutions are specifically curated for each use case. Additionally,
establishing a material recycling infrastructure is key for completing this resilient
energy supply chain cycle. Deep tech companies are driving the solutions we needto develop this resilient and sustainable energy supply chain. These start-ups aredeveloping large scale recycling technologies for the battery industry, cleaner
storage solutions adapted to low power electronics, and nonintermittent renewableelectricity production.
3.2 Accelerating clean energy production capacity
Some heavy polluting industries, such as steel production, cannot be electrified
and therefore rely on other decarbonized solutions. Hydrogen holds immense
potential for these more complicated sectors but requires massive infrastructure
and R&D investment to rapidly meet the demands and gains in energy efficiency.
Deep tech companies are developing solutions to create cheaper and more efficientelectrolyzers, new H 2 production processes and infrastructure transformations.
In the meantime, deep tech startups are making efforts to develop innovativetechnologies that recover waste heat from industrial processes and buildings,
and convert waste streams into biofuels with synthetic biology processes.

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Cleaner energies – Hello Tomorrow | Boston Consulting GroupCleanerenergies

Why it matters
To continue life on Earth, we must significantly reduce greenhouse gas (GHG)
emissions. Even if we were to achieve net-zero tomorrow, the cumulative emissions
already in our atmosphere would invariably increase temperatures over the next
twenty years (3). A 1.5C° increase alone will shrink glaciers and ice caps, andincrease sea levels, severe weather and ocean water acidity. However, there
is hope. According to the United Nations, we can still curb the increase in the
average global temperature to 2°C above pre-industrial levels (3), by implementing
a broad range of technological measures and changing some of our behaviors.
Without these efforts, developing countries will face increasingly limited accessto food, water, health, and energy security. Today, 70% (5) of global GHG emissions
come from energy production and consumption. The immediacy of this climate
crisis only underscores the urgency with which the energy industry must consider
this reality, and implement scaled sustainable solutions now.

Why is it important to play the ecosystem game?
Fossil fuels will inevitably become an energy source of the past; however,increasing the number of renewables to meet the resulting energy demand
gap will require the energy industry to undertake broad scale development
and adopt use-case specific energy harvesting and storage solutions. Valued
at $151.96 billion in 2019, the global market for advanced battery storage
systems is expected to achieve a 5.5% growth rate from 2020 to 2027 (6).
Additionally, by relying on greener H 2 production models, large industries canscale decarbonization through electrification. With sustained investments anda maturing hydrogen value chain, the market for hydrogen-related machinery,equipment, and components can reach up to $200B annually, with projected
increases leading into 2050 (7). Deep tech startups are now outpacing establishedindustry actors, adding some healthy competition to the established selectionof energy solutions. However, the entire energy industry, inclusive ofcorporations, startups, private and public investors, will need to join forces
to invest, develop, and deploy these new solutions, at an unparalleled levelof coordination and collaboration if we are to meet our net-zero goals in time.

3

Cleaner energies – Hello Tomorrow | Boston Consulting GroupOverview of trends
Deep tech startups are actively supporting the electrification scaling effort by developing
new solutions, such as harvesting tidal wave energy, designing paper-enzyme batteries
for low-power devices, and creating new processes for efficiently recovering raw materials
from used batteries (see page 09).
They are also leveraging deep tech to accelerate greener H 2 production and curb
infrastructure costs by using anion-exchange electrolyzers (see page 15). Additionally,
deep tech startups are introducing new materials that recover heat waste to warm officebuildings, and engineering microorganisms to scale biomethanation from organic waste
and flue gases. (see page 16).
These forerunners are helping the entire energy industry transition into a moresustainable model.

What's next to watch?
After closely reviewing over 150 deep tech startups, selected through the Hello Tomorrow
Global Challenge in 2021, we have identified two trends that will have long-term inpacts
on the energy market:
1. The emergence of carbon-negative biofuels derived from new sources, such as plastic
wastes or wastewater streams, an evolution from today’s agro and organic waste
valorisation technologies;
2. The development of new nuclear reactor designs and technological bricks to accelerate
fusion energy development, the most promising energy production technology
leveraging nuclear power with abundant and safe elements, and without harmful
radioactive emissions and wastes.
AlgBio » This startup from Turkey producescarbon-negative biofuels from microalgaeby treating wastewater and flue gas.

Renaissance Fusion » A startup bringing aunique fusion power solution onto the gridby building on a proven, new design formagnetic-based fusion technologies.

4

Cleaner energies – Hello Tomorrow | Boston Consulting GroupTrends’ expected time to market (8)pages 12 - 16

Accelerating clean energy
production capacity

2028

Spark Cleantech » Sustainable H2
production through cold plasma
Energo » large-scale biomethane
supplyAccenta » Building heating
decarbonization through thermalenergypages 08 - 11

2026

Scaling low-carbon electricity
production & storage
Eco Wave Power » 24/7 energy
harvesting from sea waves
BeFC » Paper and enzymes-based
battery
Noon Energy » Low-cost and long
duration CO2-based battery
NEU Battery Materials » Fulllithium-ion battery recycling

2024

2022

5

Cleaner energies – Hello Tomorrow | Boston Consulting Group

Alchemr » Cost-effective
electrolyzers

3.1 Scaling low-carbon
electricity production
and storage3.1 

Scaling low-carbon electricity
production and storage

Context
Counteracting climate change and building a sustainable society
will require a transition from a fossil fuel to renewable energy basedindustry. Central to this transition is the energy sector, which produces
around 70% of global GHG emissions (9). Yet renewables only accountfor 15% of global energy production.
Today, numerous challenges including energy harvesting capacity,
production intermittence, development time, materials availability
and territorial non-adaptation, limit industry ability to meet global
energy demands with renewable sources. Therefore, developments
in electricity storage technology are key for supporting this renewableenergy transition.

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Cleaner energies – Hello Tomorrow | Boston Consulting Group

3.1.1

Why does it matter now?
Our selected deep tech startups are leading the charge towards global electrification,by creating next-generation energy harvesting and storage solutions. Thus, these start-ups
are steering an industry heavily reliant on Lithium ion (Li-ion) storage technology, toward
more cost-efficient and sustainable technologies. Additionally, the limited number ofcompanies and geographies that can extract and purify Li-ion at a large scale restrict theindustry's supply. As a result, Li shortages could appear as soon as 2025 leaving a large
gap in the growing energy demand (8). Deep tech startups are working to secure the futureof batteries, by developing new solutions to address battery efficiency and sustainability
ahead of the projected Li shortage, and by building infrastructures that recover andrecycle end-of-life batteries.

3.1.2

Market potential & applications
Li-ion technology dominates the current battery and energy storage market. The Li-ion
battery market is expected to grow from $41.1 billion in 2021 to $116.6 billion by 2030 (11).
However, the limited availability of vital materials, quick performance decreases,
and the non-recyclability of Li-ion batteries threaten the industry's continued relianceon this technology. Additionally, this dependence on Li-ion batteries has severe
environmental impacts, compromise the energy transition to renewables, and accelerate
geopoltical instability.
Improving and going beyond Li-ion
While the global battery market is projected to reach atleast $360 billion by 2030 (12), Li-ion technology cannot
accommodate a market of this size. To meet this market
demand, we must optimize battery performance, production
scalability, and long term reliability. Already, a new generationof batteries is emerging to address these concerns, boasting
innovative designs, materials, and performance.

New energies and storage systems
In additional to battery market innovations, developments
in energy harvesting and delivery systems are driving
global electrification in parallel. These new systems
are capable of adapting to climate, geographic anddemographic specificities. Solutions include flexible solar
panels, plants harvesting energy from tidal and oceanic
currents, and technologies that store renewable energy
surplus by compressing gas, leveraging gravity
or chemical bonding.

3.1.3

Key roadblocks to overcome
While progress is underway, the road towards global electrification is still fraught withchallenges. One roadblock is the discovery and introduction of new, innovative systems
that provide non-intermittent renewable energy and large-scale electricity storage
solutions. There is also a need for more energy efficient and sustainable batteries,
which are recyclable and made with cleaner materials and processes. Additionally,
global electrification efforts must meet growing demands from a diverse range ofenergy requirements, including Industry 4.0, Internet of Things (IoT), consumer
electronics, transportations, cities, etc.

8Cleaner energies – Hello Tomorrow | Boston Consulting GroupThere is also a need for batteries
that are more energy-efficientand sustainable, meaning madeusing cleaner materials andprocesses, and recyclable.

3.1.4

Use cases
Eco Wave Power » Today’s renewableenergies are subject to intermittence and, assuch, only account for 15% of the global energymix (13). However, there are alternative energy
sources that continually generate electricity.
Eco Wave Power taps into one of thesealternative energy sources: ocean waves.
Using a patented technology, this deep
tech startup harvests the mechanical energy
naturally generated by waves, 24/7. The
result is a climate change resistant source ofsustainable electricity, which can power remotelocations, islands and coastal communities.
BeFC » As of 2020, IoT counted 20 billion
connected devices worldwide,and is expected
to reach 30 billion devices by 2025 (14). Manyof these products, such as smart consumer
goods, microchips for packaging, urban
sensors, small drones, and wearables, run
on low-power electronic devices. Because
they are low-consumption, they won’t
require high-performance batteries. BeFC
is committed to providing low cost and low
environmental impact electronics. Their
paper-based biofuel cell uses enzymes toconvert glucose and oxygen into electricity.
Combined with flexible electronic platforms,
featuring highly-optimized hardware andfirmware, BeFC provides data opportunities
without the negative environmental impactof battery disposal.

9

Cleaner energies – Hello Tomorrow | Boston Consulting GroupNoon Energy » This deep tech startup
is developing a new type of battery thatprovides low cost, energy dense, long durationelectricity storage. Solar and wind power
are now available for less than 3 cents/kWh,but require costly gas peaking power plants,
because available energy storage technologies
are too expensive. Noon Energy’s battery uses
ultra low cost storage media, while providing
high energy efficiency comparable to Li-ion
batteries. This new technology will makegrid-scale renewable electricity available 24/7,
year round for 5 cents/kWh, achieving 100%carbon-free electricity.
NEU Battery Materials » By 2030, around
1.2 million tons of Li-ion batteries will need
to be recycled (15). NEU Battery Materials,
a spin-off of the National University ofSingapore, proposes a closed-loop system,that recovers reusable raw material fromend-of-life batteries. Their system is over
100x less polluting and 10x more profitable
than Li recycling systems currently in place.
Additionally, their compact, Lego-like,stackable design is highly scalable.

3.1.5

What our startups need
Collaboration opportunities and constraints based on our deep tech pioneers' insights.

Experiment
1

2

Exploration

Develop3

4

Experimental,
proof ofconcept

Scale

5

6

7

Functional
proof ofconcept

Minimum
viable product9

Industrialization

Commercialization» Providing industrial
facilities to demonstratebatteries performancesin field conditions» Engaging in discussions
about large capacity
manufacturing anddistribution» Exploring the battery value
chain to find applications
where innovations canbring value» Provide international
visibility through customers
portfolios and contacts» Licensing the technology
first

10

8

Cleaner energies – Hello Tomorrow | Boston Consulting Group» Acquisition opportunities

3.2 Accelerating clean
energy production
capacity3.2 

Accelerating clean energy
production capacity

Context
As efforts accelerate to achieve the 2050 net-zero economy objective,
set by the Paris Agreement, Hydrogen (H2) is emerging as a potential
global-scale solution for decarbonizing energy, mobility, and industrial
sectors. The European Green Deal has already identified hydrogen
implementation as a key action area. Close to 60 million tons of H 2
are already used every year, with dominating usage in the chemical(ammonia synthesis) and oil refining industries (16). Indeed, hard-to-abate
sectors, such as steel, glass and chemical production require vast
amounts of heat that cannot be provided by electricity. In the transportand mobility sectors for instance, large fleets could also benefit
from hydrogen technology instead of batteries.
Deep tech startups match growing energy demands with specificsolutions aligned to economical, logistical, and environmental
concerns. As a result, these startups are driving a paradigm shift
in the energy industry.
To secure a sustainable and resilient future, and stay alignedwith the 2C trajectory, we must diversify our energy source mix.
It is why the demand for energy produced through circular processes(recovering waste heat, transforming organic wastes to biofuelsand biogas, etc.) is growing. These technologies will also help to facegeopolitical instabilities and potential technological limitations.

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Cleaner energies – Hello Tomorrow | Boston Consulting Group

3.2.1

Why does it matter now?
H 2 is set to play an important role in the future energy mix. However, around 95%
of H 2 is generated from steam methane reformation, a costly process that demands
significant energy levels and leads to air pollution. This current process falls out of stepwith the industry's environmental goals. (17)Propelled by the geopolitical and price instabilities caused by the war in Ukraine,
European countries are prioritizing energy sovereignty as a major strategical component.
While fuel and gas prices are soaring, innovative technologies can help relocate energy
production and consumption by using new sources, including organic and industrial
waste streams. Additionally, heat efficient materials and processes can decrease fossil
fuel dependency.

3.2.2 Market potential & applications
The global market for hydrogen production is currently increasing at a steady 5% CAGR.
The market already reached $120 billion in 2022, due to support from government
initiatives such as the EU's plan to achieve a 40-gigawatt (GW) electrolyzer by 2030 (18).
In response and anticipation, the public and private sectors have turned their interests
towards two forms of hydrogen: the first, known as green H 2 , is mostly produced bya water electrolysis reaction and powered by renewable energies; the second, blue H 2 ,is produced by reforming methane while capturing CO 2 emissions in the process.
While more R&D is needed to scale these technologies at the industrial level, the futureof these technologies is hugely promising and optimistic.
On the other hand, biogasses such as biomethane, resulting from organic waste
digestion by dedicated microbes, can replace the use of fossil natural gas for residential
and industrial heating applications. Biogas implementation is expected to become alarge opportunity in the energy space in the coming years. In fact, the latest EU energy
package set a target of 35 billion cubic meters (bcm) of annual biomethane production
by 2030 (19). This would lead to a more than 10 fold increase in biomethane production,
when compared to the 3 bcm currently produced.
The global demand for biofuels, which mainly lies in the transport and mobility sectors,
is also increasing and projected to grow by 28% between 2021 and 2026 (20). As a result,the global biofuel market is projected to reach more than $200 billion by 2030.

Cost-competitive green hydrogenTo satisfy the growing energy demand while meeting
the industry's environmental targets, deep techplayers are creating new technologies, processes,
and materials that can provide low-carbon power.
Deep tech startups provide new materials to produce
H 2 in an environmental and cost competitive way,
including energy efficient electrolyzers and low
consumption methane plasmalysis.

13

Cleaner energies – Hello Tomorrow | Boston Consulting GroupBuilding the hydrogen infrastructure
The need for cost efficient H 2
distribution infrastructures become
clearer as low carbon, H 2 production
scales. Creating these infrastructures,in addition to up-cycling existingones, is now the focus of several
key innovative solutions.

Scaling green fuels and gas production
Waste streams that do not compete with foodproduction, such as industrial flue gas, heat, andorganic waste, innovative heat production technologies,
biofuels, and biogasses are now at the industrial pilot
production stage. Additionally, there is governmental
support for these alternatives. However, scaling
production and generating big impact on the market
will require investment and industrial collaborations.

3.2.3 Key roadblocks to overcome
New innovations and developments are required to industrially scale H2 and make the costof green H 2 , fuels, and heat waste competitive when compared to traditional processes.
In response to this need, deep tech startups are now developing new base materials,
along with more energy-efficient processes to rapidly scale cleaner energy production.

14

Cleaner energies – Hello Tomorrow | Boston Consulting GroupDeep tech startups are now
developing new base materials
along with more energy-efficient
processes to rapidly scalecleaner energy production.

3.2.4 Use cases
Alchemr » This startup uses anion-exchange
technology to develop water electrolyzer
stacks at a megawatt scale. Their solution
efficiently couples with intermittent
renewable power sources, and makes useof low-cost metals, such as stainless steel,to offer on-site production. Unlike otherwater electrolyzer options currently available,
their technology does not require expensive
or precious metals, or highly corrosive
electrolytes. The net result is a 300% costsavings compared to existing electrolyzers,
and the ability to produce green hydrogenat less than $2/kg by 2024.
Spark Cleantech » This startup proposesa new process called plasmalysis, that uses
cold pulsed plasma discharges. Cold plasmas
enable molecule separation while minimizingpressure and temperature increases.
This decreases energy consumption andthe associated footprint of methane reforming
to produce H2 .

15

Cleaner energies – Hello Tomorrow | Boston Consulting GroupENERGO » Shaking up the world of chemistryby developing a completely new way of
converting gases into other gases, in thefastest, cheapest, and most environmentallyfriendly way. This technology combines
two mature and robust technologies(catalysis and cold plasma), and canbe applied to H 2 , methanol, ammonia
production and depollution. ENERGO offers
the first, most mature renewable methane
production process from wastes, at a cost
15-40% cheaper than conventional methods.
As a result, this solution produces gas at
prices competitive to fossil gas.
Accenta » The act of heating and coolingbuildings accounts for almost 17% of global
GHG emissions (21). With the introductionof more environmental policies, theconstruction and building sectors areseeking new solutions to drive infrastructureenergy management toward a sustainable
future. With its .PILOT LowCarbon software,
Accenta combines AI and data science toharness geothermal energy from the groundto power infrastructure heating and cooling.

3.2.5 What our startups need
Collaboration opportunities and constraints based on our deep tech pioneers' insights.

Experiment
1

2

Exploration

Develop3

4

Experimental,
proof ofconcept» Financing or incorporating
pilot programs todemonstrate technologies

16

Scale

5

6

7

Functional
proof ofconcept

Minimum
viable product» Building long-term
partnerships to carry out
industrial demonstrationand scale up to firstcommercial projects

Cleaner energies – Hello Tomorrow | Boston Consulting Group8

9

Industrialization

Commercialization» Activating new market
opportunities on a large
geographical scale» Providing licensing
opportunities

Sources
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 -GHG emissions by sector, Our World in Data, 2019
IEA’s Net-Zero in 2050, Reclaim Finance, 2021
Richard B. Rood, STAOIPCC report, United Nations, 2021
GHG emissions by sector, Our World in Data, 2019
Global Advanced Battery Energy Storage System Market, GlobeNewsire, 2021
The Green Tech Opportunity in Hydrogen, BCG, 2021
Hello Tomorrow Global Challenge 2021
GHG emissions by sector, Our World in Data, 2019
Ian Shine, World Economic Forum, 2022
Global Lithium-Ion Battery Market (2021 to 2030), PR Newswire, 2021
Capturing the battery value-chain opportunity, McKinsey, 2022
What is the global energy mix? Planete energies, 2021
State of the IoT 2020, IoT Analytics, 2020
Lithium batteries - 1.2m tons ready for recycling by 2030, PV Magazine, 2019
What is the global energy mix?, Planete energies, 2021
Hydrogen4EU, Deloitte Finance, 2021
Hydrogen Insight, Hydrogen Council, 2021
Biomethane, European Commission, 2022
IEA, Biofuels report, 2021
GHG emissions by sector, Our World in Data, 2019

Authors
Arnaud de la Tour CEO Hello Tomorrow
Lucas Maurice Deep Tech & Innovation Consultant Hello Tomorrow
Vincent Durand Head of Deep Tech & Innovation Consulting Hello Tomorrow
Jean-François Bobier Partner and Director BCG
Anne-Douce Coulin Director Deep Tech BCG

Hello Tomorrow is accelerating radical solutions to improve human and planetary health, leveraging the powerof deep tech ventures. Its flagship startup competition, the Hello Tomorrow Global Challenge, received morethan 25,000 applications from 132 countries. Thousands of corporates and VCs attend Hello Tomorrow events
every year. Leveraging this international network and knowledge of deep tech trends, Hello Tomorrow partners withprivate and public organizations to help them identify new opportunities, and build new ventures to seize them.
hello-tomorrow.org

Boston Consulting Group (BCG) partners with leaders in business and society to tackle their mostimportant challenges and capture their greatest opportunities. BCG was the pioneer in business strategy
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