This is the fifth episode in our latest series exploring cutting-edge technological trends that excite us as deep-tech investors. Our previous posts have delved into the immense potential of Advanced Material innovations and tools to enable those innovations, the exciting world of synthetic biology , cutting-edge work being done in biomaterials & the breakthrough innovations happening in the world of nanomaterials. In this post, we focus on chemicals: materials that have defined the last century & will continue to do so in the foreseeable future.

Investing in Advanced Materials: Chemicals

For over a century, the chemical industry has been one of the key architects of modern life. From the medicines that keep us healthy to the fuels that power our vehicles, from the polymers that make up plastics to the fertilizers and pesticides that have transformed agriculture, chemicals are integral to the products and processes that define the modern world.

What comes next is even more exciting. The role of chemicals in addressing some of the most pressing global challenges is more critical than ever. New and emerging chemicals have the potential to drive innovations that will shape the future of energy, healthcare, and environmental sustainability.

For example, perovskite materials are revolutionizing the solar energy industry by offering a low-cost, efficient alternative to traditional silicon-based solar cells. In the domain of environmental sustainability, biodegradable plastics are emerging as a game-changer in the fight against the scourge of plastic. These materials are designed to break down more quickly in the environment, reducing the long-term impact of plastic waste on our ecosystems.

Novel chemicals that can efficiently capture and store CO2 from industrial emissions are being developed, which could play a crucial role in mitigating climate change by reducing the amount of CO2 released into the atmosphere. In energy storage, solid-state electrolytes are paving the way for the next generation of batteries. These advanced materials promise higher energy densities, improved safety, and longer life spans, potentially transforming the electric vehicle market and energy storage solutions for renewable energy.The transformative power of these chemical innovations to shape the future is incredible. As we at pi engage with startups pushing the boundaries in their labs, we are witnessing firsthand the relentless drive to perfect these innovations that have the potential to redefine the landscape globally.

For this blog, we’d like to do a deep-dive on the potential of chemicals in the energy sector. In particular we are actively looking at the following 3 themes:

•  Flow Batteries: As the world increases its reliance on renewable energy sources like solar and wind, the demand for reliable, large-scale energy storage solutions has never been greater. Flow batteries are uniquely positioned to address this need, offering the capacity to store energy for extended periods and release it on demand, ensuring grid stability even when renewable energy generation is intermittent.
  
  Despite their potential, flow batteries face significant hurdles, including high costs, the need for rare or expensive materials (like vanadium), and issues related to scalability and efficiency. We are excited about startups that are innovating by exploring alternative chemistries, such as organic molecules and low-cost metals like iron or zinc, to replace vanadium and reduce costs & develop more compact and efficient system designs that require less space and materials, making flow batteries more viable for widespread adoption.
  
  
• Solid State Batteries: As the demand for electric vehicles (EVs) grows, there is a pressing need for batteries that offer higher energy densities, faster charging times, and enhanced safety. Solid-state batteries are seen as the key to unlocking the next generation of EVs, enabling longer ranges and reducing the risk of fires associated with liquid electrolytes.
  
  The development of solid-state batteries is hindered by significant technical challenges, including the need for solid electrolytes that can efficiently conduct ions at room temperature while remaining stable over time. Manufacturing these batteries at scale is also a major challenge due to the complexity of the materials and processes involved.
  
  We are keenly looking at startups that are developing new solid electrolyte materials, such as sulfides and ceramics, that offer higher ionic conductivity and stability & startups that are working on scalable manufacturing techniques.
  
  
• Green Hydrogen: Green hydrogen holds the promise of being a versatile, clean fuel that can decarbonize sectors where electrification is difficult, such as heavy industry and long-haul transport. It also has the potential to act as a large-scale energy storage medium, helping to balance supply and demand in renewable energy systems.
  
  The production of green hydrogen through electrolysis is currently expensive and energy-intensive, making it less competitive than fossil-fuel-derived hydrogen. Additionally, the storage and transport of hydrogen pose significant technical challenges due to its low energy density and high flammability. We have met startups working on more efficient and cost-effective electrolyzer technologies, including innovations in PEM and solid oxide electrolyzers. Companies are also developing advanced hydrogen storage solutions, such as liquid organic hydrogen carriers (LOHCs) and metal hydrides, to make transportation and storage safer and more efficient.

If you are as excited about the potential of novel chemicals & its manufacturing processes in transforming human lives and are actively working towards making it a reality, please reach out to us. With our focus on breakthrough technologies, we'd love to partner with you in your journey!