Leveraging local innovation, Israel positions itself as EnergyTech leaderApr 07, 2022 by Energy Connects
The perilous state of our climate is no longer a hot topic, it is a given. What interests the world these days is how we can rebalance the energy sector and secure our future. With the tech sector leading the way in many fields, it is no surprise that technology is our go-to for solving this complex issue.
It’s why in 2021 corporate venture funds globally invested more than $23 Billion into Climate Tech, and that figure is expected to rise even further this year and in the following years. This rapid influx in capital has encouraged a rapid transition of the world’s energy sector toward lower carbon systems. Triggered by simultaneous shifts in technological development, regulations, consumer preferences and investor sentiments, we are in a pinnacle moment of change and one that is long overdue.
Small Country, Big EnergyTech Impact
At the core of ClimateTech, which seeks to address the overarching climate problem, is EnergyTech. After all, the energy domain is no doubt a core driver, with about 70 percent of global greenhouse gas emissions associated with the energy sector. If we’re to see success, changes in the energy sector must lead the way. While solutions are pouring in from all corners of the world, one small country has created a large footprint in EnergyTech: Israel.
Israel is almost synonymous with innovation, with a burgeoning high-tech industry that has brought us household brands like Waze, MobileEye, and Wix. This little country has an outsized presence on the Nasdaq and regular additions to the global list of “unicorns” grown domestically. It’s no wonder that applying local ingenuity and experience to the energy sector has sprouted Israeli solutions. From low carbon energy systems, such as renewables, green hydrogen, smart and clean grid management, storage, energy efficiency, waste to energy and more, Israel is playing a key role in facilitating the energy transition.
Drilling down further, we see Israeli startups and well-established companies alike are disrupting all aspects of the energy value chain - from generation to transmission and distribution, to storage and user consumption. For example, the Israeli landscape includes recognized global leading PV inverter manufacturer SolarEdge (market cap $17B), as well as alternative and renewable geothermal energy technology leader Ormat (market cap $4.58B) not to mention rising stars such as Silib’s silicon anodes for high-capacity lithium-ion batteries.
Of particular interest are the hydrogen and carbon mitigation solutions that we’re seeing, as they are considered by many as the silver bullet to drive the transition into a low carbon economy. Companies such as H2Pro have made the news globally recently for its hydrogen fuel generation solution that has raised $75M in B round funding. While Electriq Global is making waves with their hydrogen powder that facilitates the transportation and usage of hydrogen fuels.
Mapping Out Israeli EnergyTech
New Israeli EnergyTech solutions are being unveiled at a blistering pace, which is why Start-Up Nation Central has been keen to map them all out. We’ve done just that, with the recent release of our EnergyTech Landscape Map. The map features over 100 innovation-driven companies that are the backbone of the Israeli EnergyTech sector. It offers a clear perspective of the different innovations that are being developed in the Israeli ecosystem to drive the global energy transition.
The map is split into sub-sectors and is dynamic, making it an easy-to-use tool to learn about the Israeli ClimateTech ecosystem as a whole, and EnergyTech in particular. Global investors can use the map to identify deal-flow, while multinational corporations can identify solutions to their pain points and decarbonization targets.
A great deal of time and thought has gone into the creation of this map, but with good reason. EnergyTech is a core focus at Start-Up Nation Central, playing a key part in our overall goal of promoting the local ClimateTech sector and helping it grow. We strongly feel that this is a key strategic sector that will not only help solve some of the world’s greatest challenges but encourage collaborations between innovative Israeli ecosystem players and international partners, especially those within our own region with whom we share the threat, but also the opportunity to overcome it.
An exciting example of these efforts is the recently launched Energy Tech Challenge, sponsored by SolarEdge in collaboration with Start-Up Nation Central. This challenge is one of many within our Climate Solutions Prize initiative, which aims to foster breakthrough innovations to tackle climate change.