Month: April 2022

We need to remove development bottlenecks, build five times more wind and solar energy every year
Wind and solar are now the lowest-cost new power source for two-thirds of the global population.[1] In 2020, wind and solar represented ~85% of global additions of power generating capacity;[2] however, to reach net-zero by 2050, annual capacity additions need to be at least five times higher than current development rates.[3] Limited transmission capacity is a well-known bottleneck to development, and one that is hard to resolve quickly. There is another lesser-known bottleneck that slows market growth—matching buyers and sellers of renewable energy. While there are an unprecedented number of parties interested in (a) developing renewable energy projects, (b) financing renewable energy projects, and (c) buying renewable energy, transactional inefficiencies plague the market.

LevelTen provides transaction infrastructure that makes buying and selling renewable energy, and the underlying projects, much easier
The current approach to buying and selling renewable energy (electrons and projects) is not scalable—almost every deal is bespoke, almost every deal is negotiated bilaterally, and transactions often take more than a year. The industry lacks a functioning, liquid market – characterized by centralization, standardization, transparency, and automation. LevelTen’s goal is to change that with cloud-based software, automated analytics, and improved deal standardization.

LevelTen’s core product, the Energy Marketplace, is now the world’s largest online hub for utility-scale renewable energy procurement, connecting a network of consultants, retail electricity providers, and corporate energy buyers with more than 500 project developers. The transparency and analytics provided by the Energy Marketplace have already streamlined the power purchase agreement process. Plans for continued contract standardization will further improve market liquidity over time. Importantly, LevelTen’s platform is expanding the universe of qualified buyers – allowing businesses without the dedicated procurement resources of a Google, Microsoft, or Amazon to buy clean energy without undue cost and/or risk.

LevelTen’s market-leading liquidity creates value for users
LevelTen currently has 70% of all project developers in North America and Europe on its platform, 4,000 pricing offers from 1,800 projects across 21 countries, and more than 30 demand-side channel partners (consultants, banks, and retail electricity providers).

With such an expansive base of market participants, LevelTen can launch complementary products that enhance the value proposition of the entire ecosystem. The company released two new products in 2021, the Asset Marketplace and Performance Monitoring, and we see tremendous synergies from several in-development products that take advantage of LevelTen’s unique market position and data.

We are proud to partner with LevelTen Energy
Bryce Smith and the rest of the LevelTen management team bring passion and valuable experience in building and scaling project development and software businesses. We are excited to support Bryce and his team as they work to deliver much-needed efficiency to renewable energy markets.

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Learn more about LevelTen Energy: https://www.leveltenenergy.com/

About NGP ETP
NGP ETP focuses on investments that are part of the global transition toward a lower-carbon economy. NGP ETP partners with top-tier management teams and invests growth equity in companies that drive or enable the growth of renewable energy, the electrification of our economy, or the efficient use of energy. Founded in 2005, NGP ETP is one of the most experienced energy transition investors in the industry.

For additional information, visit www.ngpenergycapital.com/energy-transition or contact the NGP ETP energy transition team at info@ngptrs.com.

[1] BNEF: “Executive Factbook 2021” (March 2021)

[2] IRENA: “World Energy Transitions Outlook” (June 2021)

[3] BNEF: “New Energy Outlook 2020” (October 2020) – statistic based on NEO Climate Scenario

In October 2021, NGP ETP led the $38 million Series B financing in Via Separations (“Via”).

In the US, roughly 15% of energy is consumed by industrial separation processes, roughly the same amount of energy as all the gasoline used for transportation.[1]
While there is a path to reducing transport emissions by switching from gas to electric (with batteries charged from renewable energy), the transition from low-efficiency thermal separation (using heat for evaporation, distillation, and drying) does not have a clearly defined decarbonization roadmap. Recent advancements in membrane technology may change this equation, as advancements with graphene oxide may provide a low-cost, high-performance, and scalable solution to industrial separations. Our recent investment in Via reflects these advancements, with immediate application to the paper and pulp market.

In paper, pulp, and chemical processing plants, it is common to apply thermal separation—evaporators and distillation columns that separate chemical compounds by boiling—which is energy intensive and inefficient, using 10x more energy than thermodynamically required.[2] Via has created a proprietary membrane aimed at radically reducing these industrial emissions.

Via’s membrane applies mechanical separation, rather than thermal separation (heat), to save energy and reduce industrial emissions.
Via uses a proprietary graphene-based membrane technology to transition energy-intensive thermal separations to a more efficient mechanical process—akin to using a strainer to drain the pasta pot rather than boiling off all the water. In the industrial context, Via’s membrane reduces the load on energy-intensive evaporators and distillers by as much as 90%, while reducing use of process chemicals, decreasing downtime, increasing throughput, and capturing previously lost valuable byproducts. As deployment scales, Via’s technology has the potential to make a significant dent in global emissions.

Via is deploying its membranes first in North American paper and pulp mills, where Via’s technology can enable efficient energy use and higher production with minimal changes to status quo operations.

Via’s stellar team is led by co-founder and CEO Shreya Dave, who holds bachelor’s, master’s and doctorate degrees in Mechanical Engineering from MIT. She has led the Via team to scale up the technology 10 million-fold and is now partnering with commercial customers for pilot deployments.

NGP is thrilled to be part of the journey as Via seeks to deliver meaningful emissions reductions in hard to abate industrial sectors.

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Learn more about Via Separations: https://viaseparations.com/

About NGP ETP
NGP ETP focuses on investments that are part of the global transition toward a lower carbon economy.  NGP ETP partners with top tier management teams and invests growth equity in companies that drive or enable the growth of renewable energy, the electrification of our economy or the efficient use of energy.  Founded in 2005, NGP ETP is one of the most experienced energy transition investors in the industry.

For additional information, visit www.ngpenergycapital.com/energy-transition or contact the NGP ETP energy transition team at inquiries@ngptrs.com.

[1] Oak Ridge National Laboratory. Materials for Separation Technologies: Energy and Emission Reduction Opportunities (2005).

[2] “Seven chemical separations to change the world” Nature (28 April 2016)