Pipeline Organics – why we invested
Pipeline Organics is a clean technology startup developing innovative enzymatic biofuel cell technology to generate renewable electricity from industrial wastewater. Their solution provides plug-and-play electricity generation by harnessing the untapped chemical energy in organic waste streams. This addresses the urgent need for clean, reliable and affordable energy solutions for industrial customers facing rising fuel costs, tighter regulations and environmental pressures.
Undeniable chemistry
Their core technology is highly technical, difficult to replicate and the amount of intensive R&D that has gone into its development provides a substantial point of difference to other technologies in the market. The technology uses specialised enzyme coatings on electrodes to catalyse reactions with organic waste like simple sugars, generating hydrogen ions that create an electrical current. Whilst this process has been around for over a century, and is relatively simple in its chemistry, Pipeline Organics has developed a unique way to increase the surface area of the electrode substrate which allows them to produce a substantially higher power density from the chemical compounds. With a steady supply of wastewater through various partners, Pipeline Organics will be able to generate clean, continuous renewable electricity which will deliver customers an immediate reduction in energy bills, carbon offsetting, and a reliable, in-house supply of energy.
A $1.9 trillion global opportunity
What excites us most about Pipeline Organics is the size of the market they are targeting, and how they will be able to apply their technology to different sectors and industries, ensuring that they have a substantial customer base to go after, and risk is not concentrated on the dynamics of a single industry or market.
Pipeline Organics are targeting the enormous $1.9 trillion global renewable energy market, with an initial focus on the $33.2 billion industrial bioenergy segment, which is expected to grow to over $100 billion by 2050. Their main target market is the energy-intensive food and beverage industry, which accounts for 20-30% of global greenhouse gas emissions. Pipeline Organics has conducted detailed case studies with major industry customers, which have committed to ambitious emissions reduction targets. A single full-scale operational unit has the potential to save a customer £200 million in energy costs and reduce over 38,000 tonnes of CO2 over its lifetime.
The revenue model consists of three primary income streams: direct sales, with optional recurring maintenance service; leasing with “energy-as-a-service”; and licensing with fees and royalties payable to Pipeline Organics over time. By applying this Go-To Market strategy we believe that the team has the best possible chance of monetising their unique intellectual property whilst helping their customers generate substantial energy savings powered by reliable renewable sources.
Why did we invest?
We have very strong conviction in the team, with the majority of the management team holding technical PhDs from leading institutions with years of combined doctoral research leading to the conceptualisation of their innovative energy solution. We are confident that the team are well placed to take advantage of the massive opportunity in front of them.This resolve is strengthened by the intellectual property protection plans they have adopted, having filed a UK patent which they intend to protect internationally.
Our resolve in supporting Pipeline Organics is bolstered by the corporate venture capital arm of Coca-Cola Europacific Partners, CCEP Ventures, which has led this pre-seed funding round and provided the opportunity to test the technology at their industrial plants to demonstrate its commercial potential. Their belief is that Pipeline Organics’ wastewater-to-energy solution could deliver substantial benefits at a corporate level, both financially and environmentally. Their decision to co-invest was a major factor in our participation in this early funding round.
Vala Investment Director Lian Michelson said “Pipeline Organics represents a unique opportunity to invest in a company that’s not only poised for significant growth, but also has the potential to make a substantial impact on industrial energy consumption and carbon emissions. Their innovative technology, strong partnerships, and clear market strategy make them a compelling investment in the renewable energy sector.”
