In the world of cleantech startups, landing an offtake agreement is like finding the Holy Grail. Secure one, and you’re on your way to attracting essential investments, locking down suppliers, and scaling up your operations. Miss it, and you could find yourself stranded in the “valley of death.”  Once you’ve done the introductions and signed that first NDA, it’s time to aim for the prize. But here’s the thing: don’t just leap straight into negotiating a legally binding offtake agreement. Rushing in is like trying to start a car in fifth gear—you’ll stall before you even get going. Why is that? Your offtake will be with a big corporation. That is a given, as only corporations will have the buying and staying power necessary for long-term contracts. To get the best terms for your small startup, you need to understand that beast well.   Start with a person you will be negotiating with. It is almost certain that this person has no decision power. To have a fully-fledged and legally binding offtake, this person will have to involve various departments of their corporation in negotiations, like legal, finance, operations, procurement, etc. What is certain is that none of those will work on your contract willingly - they are mostly busy minimizing their workload for a given annual pay.  So you have to give your counterpart some way to bring all those necessary corporate resources to work for you. And what works best inside a big, bureaucratic machine? You guessed right - a piece of paper with a signature from the boss. Now, a corporate boss will not just sign any paper laid on his table. So you need a certain paper that he will be okay to sign, which gives him plenty of room to maneuver and even back off while still giving your peer negotiator an effective enough instrument to pull in necessary resources. Enter the MOU.  What Is An MOU, And Why Is It Important? The Memorandum of Understanding (MOU) is a simple yet crucial step toward securing your offtake. Here’s why the MOU matters: - Formalizes Intent to Collaborate: An MOU signals to your corporate partner’s organization that this is worth exploring. It helps justify involving various departments in the vetting process, preparing everyone for what comes next. - PR Opportunity: MOUs are often public announcements. This means you get a headline moment—a chance to boost your credibility with current investors, future investors, and suppliers. They are sometimes even signed at big events or conferences, which brings your partnership into the limelight.  What Goes into an MOU? So, what exactly should you include? Here’s a quick breakdown: 1. Background: Outline who the parties are, why they’re here, and what they’re hoping to achieve. This is a simple overview that adds context to the agreement.     2. Aim of the MOU: State the purpose. Typically, it’s something like “agreeing to explore potential future cooperation” around your product or service. Broad, but to the point. 3. Scope of Collaboration: This is your to-do list for what you aim to explore together. The clearer you can be, the better—it helps your corporate partner navigate their internal processes. You can even include “drafting a Letter of Intent (LOI)” as part of the scope. 4. Responsibilities: Even though it’s non-binding, start as you mean to go on. Lay out who’s doing what, and make it clear who’s providing which information.  5. Term and Termination: Set a deadline to keep things moving. Three to five months for an LOI is typical—this way, they can’t drag it out forever. 6. General Provisions: Here’s where you specify that the MOU isn’t legally binding. It’s your handshake agreement before the big deal. Why the MOU Works for You An MOU is low-cost, quick, and doesn’t require a legal army to draft. You can use it to lock down your corporate partner in a preliminary commitment, giving you some negotiating leverage. The trick now is to keep the pressure on—steady communication ensures that you’re progressing toward that LOI, and eventually, the offtake agreement itself. The MOU is just the start. But it’s a solid start. And if you navigate it right, it’ll set the stage for a smoother, faster route to the holy grail of offtakes. Keep your eyes on the prize! 🏆 Want more tips on navigating the cleantech journey? Subscribe to my mailing list for more insights! #mou #offtake #scaleup #cleantech #greentech #negotiations

The IEA Renewable Energy Report 2024 is out today, and here is the core message: the Fourth Energy Transition looks certain to be accomplished by the end of the decade. This means that wind and solar combined will generate 30% of electrical energy worldwide by 2030.  If you throw in hydropower and other renewables, the energy transition already happened, and by 2030, renewables in total will generate over 45% of all energy. The bulk of heavy lifting will be done by China, with a little help from Europe, the US, and India. In any case, this will set a new time record for energy transitions - two decades instead of three.   What does all this mean for batteries? That the demand for stationary energy storage will pick up. Most research and practice have shown that after 30% renewable energy grid penetration, storing excess energy starts to become an issue. So watch out for those battery deployments in the next five years! And what does green hydrogen have to do with it? Nothing, really. IEA sees it growing to 7% of today’s demand to about 0,8 EJ by 2030. In my view, even this is hugely optimistic.  Stay tuned for regular insights about scaling up clean technologies!  #scaleup #renewableenergy #windenergy #solar #hydrogen #energytransition #batteries

Today’s global shipping industry moves over 80% of the world’s goods and contributes to more than 3% of global CO2 emissions. Decarbonizing this sector is essential, but what’s the best route forward? Ammonia and synthetic fuels are often cited, but there’s a compelling case for nuclear-powered vessels. While nuclear reactors have reliably powered submarines and icebreakers for decades, some startups, like Core Power, a UK-based company, are now exploring nuclear for commercial shipping. Core Power raised over $100 million in private funding to develop molten salt reactors (MSRs). These reactors could power a vessel for its entire 30-year lifespan without refueling, cutting reactor costs by up to 80% and increasing cargo space and speeds beyond 30 knots.  Cost-wise, nuclear makes sense for large fleets rather than one-off ships. A single container ship runs about $200 million, with a viable nuclear reactor needing to cost no more than 20-25% of the total. According to TU Delft, nuclear propulsion can break even within 5-15 years, depending on fuel prices and operating profiles. And unlike ammonia or synthetic fuels, nuclear is a proven technology for maritime propulsion.  But bringing nuclear to commercial shipping isn't just a matter of engineering; it’s about regulation. To make nuclear-powered commercial shipping a reality, international frameworks need to be updated. The International Maritime Organization’s (IMO) safety chapter on nuclear propulsion has remained unchanged since 1974, meaning Core Power and partners like Lloyd’s Register are working to establish the necessary safety, classification, and insurance frameworks. Nuclear is the tried and tested path to decarbonizing shipping, as opposed to hydrogen and synth fuels. The only thing standing before nuclear-powered fleets is, frankly, paperwork. A lot of it, for sure, but still, paperwork. Not so for any other clean fuels.    This week, though, I’m heading offshore the old-fashioned way—powered by the wind and some trusty sails. 🌬️⛵ #NuclearEnergy #Shipping #Decarbonization #Maritime #ClimateAction #CleanTech

It’s a time of rebellion in the EU. To defeat the evil empire of carbon emissions and hit net zero by 2050, the EU battery industry is gearing up for an epic adventure. But this time, the Dark Side isn't the issue—it’s those Asian battery giants! Let’s face it, Europe’s battery dream feels a bit like young Luke Skywalker staring down the Death Star with nothing but a dusty old lightsaber and some hope. Is there a chance the EU could become the hero of this electric revolution? Cue the Star Wars theme—let's dive in. The Call of the Force The mission? Decarbonize transport across the EU galaxy, and do it with a homegrown battery industry. Sounds like a piece of cake, right? Well, not so fast. While Europe’s fighting the good fight, it’s up against Asia’s fleets—CATL, BYD, LG—with factories the size of Death Star and with experience to match. The clock’s ticking, and the EU needs to figure out how to build its own fleet of gigafactories, stat. Or maybe it should change the game? For all Europe’s high hopes, some local battery rebels like Northvolt are facing tough odds. First, they were on fire—gunning to take on the world. Now? Well, let’s just say they’ve had to shed some excess cargo and retreat to their core mission to stay afloat. Asia’s had decades to build up their Death Stars, and Europe’s trying to do it all in lightspeed. The pressure is real, and the challenges are daunting.  Try not. Do or do not. There is no try.  No Jedi Knight has ever succeeded without a mentor, right? Europe could do worse than to take a page from Asia’s playbook. By drawing on Asia’s skilled workforce and battle-tested production techniques, the EU can leapfrog some of the growing pains. And hey, a few Yodas in the workforce could help guide the next gen of EU battery heroes. The Rebel Alliance’s Secret Weapon Let’s be real: the EU can’t just throw its weight around like a galactic superpower. That time is long gone. Its power is in agility, not sheer size. So here’s the play: instead of building mega-gigafactories, Europe should go for a fleet of smaller, nimble craft. Picture this: a dozen electrode manufacturing centers scattered across Europe, supporting many small, quick-to-assemble cell manufacturers. It’s not quite the Rebel Alliance, but it’s close. Electrodes are the building blocks of batteries, and they’re 60-80% of the CAPEX. By decentralizing electrode production, Europe could focus on developing raw materials and recycling operations. These nimble cell factories could then be located closer to customers, reducing transport times and staying on top of demand with the speed of light.  The Millenium Falcon’s Crew  The EU has a ragtag group of characters who can band together for the cause. From heavy industry to small bus and car manufacturers, they’re ready to rally for the electrification of transport. The big automakers? Maybe they’re not quite the heroes we’re looking for. They’re scaling back EV plans and aren’t ready to tolerate the initial costs of a flexible manufacturing system. But the EU’s small manufacturers might just prove themselves a scrappy, resourceful force in this battle. To make this mission a success, the EU needs a little help from the higher-ups. A regulatory boost here, a stimulus package there—these could give Europe’s battery rebels the support they need to take on the giants. Local equipment manufacturing could get a jumpstart with a little extra funding. Or, if all else fails, borrow some of Asia’s gear for the first few years.  Startups in alternative battery materials could also benefit from a distributed setup, getting new cathodes, anodes, and electrolytes to market faster. With the help of AI and digital twins, even a scrappy cell factory could cut down the time needed to identify and fix production errors. And with enough support, the EU could become a galaxy-wide leader in battery innovation.  The New Beginning: An Agile Force Awakens Is this the end of the story? Hardly. Europe might not have the raw power of Asia’s battery empire, but with a distributed, flexible approach, it could pull off a win that would make even Yoda proud. The EU could become a leader in battery applications, bolstered by the same agility and innovation that fueled the Rebel Alliance.  No guarantees, of course. But if Europe plays its cards right, it could find its place in the battery universe. What would Yoda say? Probably something like this: "Raw power, not enough it is. Agile, you must be. Strong the giants may be, but swift and nimble wins the day." May the Force be with you!

What makes batteries so tough to crack? Northvolt’s recent struggles have been blamed on everything from mismanagement to chemistry issues. But the reality is, you won’t find the people who actually know—those running the manufacturing lines—posting on LinkedIn. They’re too busy, you know, actually trying to get some shit done. So, instead, we get second-hand commentary from those who’ve never set foot inside a battery plant. I can’t say exactly what went sideways at Northvolt, and I won’t speculate. But I do know what happened to Liotech, the first Russian gigafactory—and it’s a lesson worth revisiting. Back in 2010, Liotech set up a 1 GWh factory in Novosibirsk. They got their equipment and tech from a Chinese supplier, which sounds awfully familiar, doesn’t it? But here’s where it unraveled: every single cell produced had a mind of its own. The culprit? They couldn’t make a proper electrode. And their Chinese supplier couldn’t help, they were just there to provide the equipment, after all. The electrode process is incredibly complex. It’s foil made of aluminum (for the cathode) or copper (for the anode), coated with a slurry mix of your choice - lithium, manganese, cobalt, phosphate, or a bunch of other materials. The slurry gets rolled, pressed, and dried, and the quality of this process is what makes or breaks your electrode—and ultimately, your entire battery. It’s incredibly easy to get this wrong. And just as hard to get it right. It requires skills honed over years of experience, and when Liotech opened, they simply didn’t have the know-how. Now only Chinese, Korean, and Japanese manufacturers have the years of experience needed. Today EU and US battery makers are on the same path. If they don’t quickly develop these skills, they might find themselves heading down the same road as Liotech. How do you think they can avoid it? Drop your thoughts in the comments. Let’s talk batteries! 🔋👇 Photo credits: JR Energy Solution ( www.jrenergysolution.com ). #BatteryManufacturing #Cleantech #Innovation #ScaleUp #LiIon #Northvolt

Some VC investments are head-scratchers, right? I thought so too. So, I took a deep dive into the world of climate VC investing to understand their decision-making process. And guess what? It’s wildly different from the PE and infrastructure world I know. Here’s what I learned: 1️⃣ 𝗧𝗵𝗲 𝗣𝗼𝘄𝗲𝗿 𝗟𝗮𝘄 𝗥𝘂𝗹𝗲𝘀: VCs know that less than 5% of their investments will bring in most of their returns. And they’re talking outsized returns—10x as mediocre, 100x as the holy grail. They’re fine with most bets flopping because the whole game is about one or two big wins. In this world, they spread bets equally across many startups. Startups can fail for any number of reasons, so they cast a wide net. 2️⃣ 𝗜𝘁’𝘀 𝗔𝗯𝗼𝘂𝘁 𝗢𝘂𝘁𝗹𝗶𝗲𝗿𝘀: If the tech is already in the headlines, then VCs have probably moved on. They’re hunting for the not-yet-obvious, those niche technologies that have potential but are still under the radar with low valuations. They want to get in early, before everyone else even notices. 3️⃣ 𝗧𝗲𝗮𝗺 𝗚𝗲𝘁𝘀 𝗧𝗵𝗲 𝗠𝗼𝗻𝗲𝘆: For Angels, the team accounts for 80% of their decision, and even VCs weigh it heavily at around 40-50%. In the early days, there’s not much data to go on, so they lean on the team’s track record and drive. Tech DD plays second fiddle here because it’s still too early to know if the tech can scale. 4️⃣ 𝗖𝗹𝗶𝗺𝗮𝘁𝗲-𝗦𝗽𝗲𝗰𝗶𝗳𝗶𝗰 𝗖𝗵𝗲𝗰𝗸𝘀: True climate investors have some extra criteria. They’re looking for tech with huge CO2 mitigation potential—think the Bill Gates rule of at least 1% emissions reduction, or one billion tons of CO2. Plus, they want startups with a Tech Readiness Level (TRL) between 5 and 7. If your TRL is lower, it’s angel territory; higher, and it’s for the strategics and infrastructure funds. When I ran my own heat pump startup through this lens, I found we only matched 2 out of the 4 criteria. Residential heat pumps aren’t exactly new, and they won’t deliver 100x returns. Plus, with a TRL of 9, we’re outside the VC’s preferred range. 𝗦𝗼, 𝗶𝗳 𝘆𝗼𝘂’𝗿𝗲 𝗮 𝗰𝗹𝗶𝗺𝗮𝘁𝗲 𝗼𝗿 𝗰𝗹𝗲𝗮𝗻𝘁𝗲𝗰𝗵 𝘀𝘁𝗮𝗿𝘁𝘂𝗽 𝗶𝗻 𝘁𝗵𝗲 𝗲𝗮𝗿𝗹𝘆 𝘀𝘁𝗮𝗴𝗲𝘀, 𝗰𝗵𝗲𝗰𝗸 𝘁𝗵𝗲𝘀𝗲 𝗰𝗿𝗶𝘁𝗲𝗿𝗶𝗮 𝗯𝗲𝗳𝗼𝗿𝗲 𝘆𝗼𝘂 𝘀𝘁𝗮𝗿𝘁 𝗿𝗮𝗶𝘀𝗶𝗻𝗴 𝗳𝘂𝗻𝗱𝘀. If you’re already past it, drop me a note, and we’ll find a way to get you into the big leagues. Follow me for more cleantech insights, and let’s navigate this landscape together! 💼🌍 Big thanks to Yoann Berno for clearing my head about Angel/VC investing in his super-intensive and fun course on Climate Tech investments! #Cleantech #ClimateTech #VentureCapital #StartupLife #Innovation #AngelInvestors #Fundraising #ScaleUp

Last week, I had the opportunity to attend Battery Day in The Hague, where over 400 participants gathered to talk about everything from mining and materials supply chains to battery manufacturing and recycling. It was a fascinating deep dive into the Netherlands’ growing battery ecosystem—one that’s been quietly laying the groundwork for years. Unlike some of their European counterparts, the Netherlands hasn’t been making waves in the battery headlines. But don’t let that fool you. Behind the scenes, they’ve been doing the hard work—building up scientific expertise, nurturing startups focused on materials innovation, and refining manufacturing technologies. What struck me is that this might actually be an advantage. The Dutch are watching and learning from the ups and downs of other European battery makers, positioning themselves for a strategic move when the time is right. While other markets rush forward, the Netherlands is playing the long game, laying a strong foundation for when they decide to step into the spotlight. Is the Dutch battery ecosystem ready for its breakout moment? Only time will tell, but the groundwork has certainly been laid. Stay tuned—things are about to get interesting. Follow me for more insights on cleantech scale-ups and the evolving battery industry! 🚀🔋  #BatteryIndustry #Netherlands #Cleantech #EnergyStorage #ScaleUp #Innovation #Sustainability #BatteryDay

The four of us raised our glasses, toasting innovation and disruption. We were all CEOs of corporate startups, but instead of celebrating our successes, we gathered to commiserate. We called ourselves the "Broken Hearts Club"—and for good reason. We didn’t talk about markets, tech, or competition at these meetings. 90% of the conversation was navigating internal corporate politics. How do I get this decision through? How do I stay on good terms with that executive? How do I prevent unwanted appointments from corporate HQ? These were our daily battles. When we were hired, we were sold a dream: challenging projects, groundbreaking technologies, and limitless growth opportunities. And we got those projects—just without the independence or support we were promised. Which made the challenges that much harder. Here’s my takeaway for scale-ups looking to work with corporate partners: guard your independence fiercely . The moment you let a corporation dictate your operations is the moment you lose control. You won’t be developing strategies or perfecting your tech; you’ll be spending 90% of your time managing corporate politics. Got your own heartbroken stories? Share them in the comments or drop me a message—let’s set up a call. 💔 #CorporateStartups #Innovation #Cleantech #ScaleUp #StartupLife #Entrepreneurship #CorporatePolitics

We had three to six months. After that, the full weight of corporate procedures would bear down on us, slowing our growth by a factor of ten. This wasn’t my first corporate scale-up rodeo. Our wind turbine manufacturing project, funded by a Russian state corporation, had a clear expectation: return to the fold quickly. And while we eventually did, we made sure at least our manufacturing unit stayed out of the mothership’s reach. Why? Because once you're back under full corporate control, agility is a luxury you can’t afford. Rosatom, a giant in nuclear energy, has tried its hand at non-nuclear ventures—wind energy, carbon fiber, municipal infrastructure, and even 3D printing. When I was there, they had backed 84 projects, but only four really took off: wind energy, turbine manufacturing, municipal energy infrastructure, and carbon fiber production. What did they all have in common? Most were born outside of Rosatom’s direct oversight.  This echoes what Clayton Christensen pointed out: disruptive innovation can’t thrive under corporate command and control. Startups need the freedom to experiment without constantly looking over their shoulders. Corporations that want to back innovation need to fund it—and then step out of the way.  So what about lithium-ion cell manufacturing, another Rosatom venture? Two 4GWh factories are in the works, but they didn’t get the same independence. Success here was a result of sheer effort. Yes, you can grow disruptive tech from within a corporation, but the odds aren’t in your favor. You need perfect timing, access to funds, a corporation willing to take risks, and—perhaps most importantly—a relentless project manager ready to go all-in despite the hurdles. Follow me for more insights into cleantech scale-ups and overcoming the innovator's dilemma. 💡 #Innovation #CorporateStrategy #Cleantech #ScaleUp #DisruptiveTech #Entrepreneurship

It was a typical Monday meeting. The project report on advanced nuclear fuel came in—everything was running smoothly, the budget was solid, and the returns looked promising. Then we moved on to non-nuclear ventures, and chaos erupted. The 3D printing, advanced chemistry, and battery cell projects were all behind schedule, with low sales and razor-thin margins. Senior management from the nuclear fuel company, that owned us, began to question why we were even bothering with these side hustles. It’s a fair question. When your core business rakes in billions and boasts margins over 50%, why bet on high-risk, low-margin ventures? It’s not until a startup comes back to buy your factory—like NIO potentially snapping up Audi’s plant in Belgium—that you realize the missed opportunity. Big corporations are great at incremental innovation—making what they already do, just a bit better. Think of Apple’s product evolution or automotive giants tweaking their models year after year. Incremental innovation is safe, predictable, and fits perfectly into corporate decision-making processes. They know the costs, the risks, and the rewards. It’s a no-brainer. But when it comes to disruptive technologies, everything changes. The market, customer needs, and cost structures are unknown, and that terrifies established players. Is there a solution to this? Yes, but corporate execs aren’t always ready to embrace it. Follow me to catch the next post where I dive into the way forward. 👇 #Innovation #CorporateStrategy #ScaleUp #Disruption #technoeconomicanalysis

“How much is the hopium for the people?” Paraphrasing Ostap Bender from the “Golden Calph”, a satirical novel by Ilf and Petrov, about a trickster in post-revolutionary Russia, I wonder at the parallels between this charismatic fictional crook and the modern peddlers of hopium.  Hydrogen seems to be the latest addiction in the investment world. Just look at the data: hydrogen startups have pulled in over $1.4B in equity funding this year alone, with around half of that—$750M—coming straight from U.S. taxpayers, according to Crunchbase. But when it comes to investors I work with, who have a time horizon of 5-10 years, I advise caution. While hydrogen may be booming, not all bets are worth making. I recommend focusing on green fertilizers and, with caution, new electrolyzer development. Beyond that? It’s better to steer clear. Curious about hydrogen investments or other cleantech scaleup strategies? Follow me and drop your questions in the comments!  Source article: https://news.crunchbase.com/clean-tech-and-energy/hydrogen-startup-funding-boom-zeroavia-electrolyzers/?utm_source=cb_daily&utm_medium=email&utm_campaign=20240919&utm_content=intro&utm_term=content&utm_source=cb_daily&utm_medium=email&utm_campaign=20230703 #Hydrogen #Cleantech #GreenFertilizers #Electrolyzers #StartupFunding #InvestSmart #VC #Scaleup

The Innovator's Dilemma is playing out in real-time, and Nio's potential purchase of Audi’s factory in Belgium is a prime example. We’ve all heard about how legacy companies struggle to innovate and adapt to new tech. Well, now we’re seeing it in the most concrete way possible—a Chinese EV startup might be buying out a German automotive giant’s manufacturing facility. Sure, they’re just in talks right now, and the deal might fall through. But let’s pause for a second. Just a few years ago, could anyone have imagined this scenario? A startup, born in the EV revolution, potentially taking over a factory from a traditional, century-old carmaker like Audi? The fact that these discussions are happening at all is a testament to how fast the automotive landscape is shifting. It’s a visual reminder: the disruptors aren’t just taking market share—they’re taking the factories too. 🚗⚡ Thanks to Claudio Afonso for the original news article! https://eletric-vehicles.com/nio/nio-in-talks-to-buy-audis-factory-in-belgium/ Follow me for more insights on cleantech and scaleups! 👇  #EV #Automotive #Innovation #ScaleUp #Nio #Audi #ElectricCars #Disruption #InnovatorsDilemma #Cleantech