The initiative leverages Minnesota’s technological expertise, industry leadership, and collaborative spirit to drive the transition to a clean energy economy. In its inaugural year, Minnesota Energy Alley is providing seed funding to six startups participating in Grid Catalyst’s 2024 Demonstration Cohort and supporting other entrepreneur training and development. These partnership efforts are building a more investment-ready energy innovation ecosystem and commercializing emerging technologies faster.
Through a competitive selection and review process, six startups have been chosen for the first demonstration cohort funded by this initiative:
- Aza Power Systems – ammonia-powered engines
- Blip Energy – residential-scale battery storage
- Carba – carbon sequestration
- NeoCharge – electric vehicle charging
- Prezerv – AI-powered 3D mapping for infrastructure projects
- SolarSteam – industrial solar heating
“It is exciting to see CEEM and Grid Catalyst launch Energy Alley and fund six startups that bring innovation to clean energy actions in Minnesota. These are the types of investments that help support Minnesota’s Climate Action Framework and that will strengthen Minnesota now and as we transition to a clean energy future,” said Minnesota Commerce Commissioner Grace Arnold.
CEEM envisions Minnesota Energy Alley as a critical tool to increase Minnesota’s market and economic competitiveness at a time of unprecedented global investment in emerging energy and clean technologies. The initiative focuses on emulating the success embodied by Medical Alley — the gold standard for sector partnership and innovation. Minnesota Energy Alley plans to leverage similar strengths, including industry leadership, research, and public-private partnerships. The timing is crucial, with S&P predicting investments of $800 billion in clean energy technology in 2024 and reaching $1 trillion by 2030.
“CEEM is thrilled to embark on this important initiative with Grid Catalyst and the Minnesota Department of Commerce,” said Gregg Mast, Executive Director of CEEM. “The range of innovative technologies being developed by this inaugural cohort of startup companies, together with their local partners, is poised to significantly accelerate progress towards net zero across our economy. We look forward to the positive impact these projects will have in growing jobs and elevating Minnesota’s energy innovation ecosystem.”
The 2024 Demonstration Cohort has been matched with leading energy partners from around the state, including American Engineering Testing, Inc. (AET), the Center for Microgrid Research at the University of St. Thomas, Minnesota Power, and the City of Saint Paul. One of the more intricate demonstration projects is in the early stages of project scoping, and that partnership will be announced later this year.
Both Minnesota-based startups were launched through researchers from the University of Minnesota — Carba and Aza Power Systems. “Carba is grateful for the opportunity to be matched with the City of Saint Paul as a demonstration partner for our innovative carbon sequestration technology,” said Andrew Jones, CEO and co-founder of Carba. “We believe our process can help the city advance its climate action goals, and we are excited to begin exploring what’s possible with their team. As a homegrown Minnesota business, we are grateful for the program’s support as we scale our technology and expand our impact.”
These demonstration projects are a critical step in the commercialization process for startups. Proving out their technology in real-world applications will attract investors and new customers, with long-term potential for manufacturing partnerships and regional job growth. Accelerated energy ventures also access nearly twice as much financing, earn 50% higher revenue growth, and average 16% more full-time hires.