[Climate Management] ③ "We Protect the Earth"… Startups Fighting the Climate Crisis

Startup Challenges to Overcome Climate Change Issues Through Technology
Investment in Climate Tech Sector Also Increasing

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"A risk more deadly than an asteroid is approaching." This is the statement from Lee Yong-kwan, CEO of Bluepoint Partners, a leading startup accelerator in Korea. What he described as more fatal than an asteroid colliding with Earth is precisely ‘climate change.’ He likened the urgency of climate change, which could collapse the Earth’s ecosystem and erase the very ground we stand on, to an impending asteroid. Even if we have been indifferent to climate change so far, our response would inevitably change if an asteroid were hurtling toward Earth. Just like in the 1998 movie Deep Impact, we might have to launch a Messiah ship to save the planet. CEO Lee emphasized, "Messages that stress moral imperatives like ‘there is no second Earth’ or that trigger individual guilt cannot solve the crisis. Fundamentally, overcoming it must be achieved through technology."

◆ Startups aboard the ‘2023 Messiah ship’=Innovative startups are boarding the ‘Messiah ship of 2023’ to overcome climate change through technology. The solutions they offer are wide-ranging because climate change can trigger a chain reaction that amplifies crises of different natures. Choi Ye-rim, Senior Investment Manager at Bluepoint, said, "Climate change will bring about pandemics, loss of biodiversity, and involuntary refugees." NutriIndustry, a startup invested in by Bluepoint, is tackling environmental crises among these issues. They focused on the fact that 1.3 billion tons of food waste are generated globally each year, but over 80% is water content, making recycling difficult. NutriIndustry developed a ‘bio-conversion solution’ that uses insects to eliminate wastewater and then uses the insects as livestock feed. Hong Jong-joo, CEO of NutriIndustry, which aims to start factory operations this year, explained, "We are building a team that covers mass insect farming, factory automation, and plant design to turn possibilities into reality."

Superbin is a startup focusing on solving recycling problems. Their AI-based resource circulation robot ‘Nephron,’ developed in-house, recognizes the shape of waste when it is inserted, collects only recyclable waste, and ejects non-recyclable trash outside the entrance. For recyclable items such as transparent PET bottles and aluminum cans, users receive points that can be accumulated and exchanged for cash. This encourages consumers to voluntarily wash and dispose of recyclable waste properly. Currently, over 600 Nephron units are installed nationwide, processing an average of 200 tons of waste per month. Superbin plans to recycle the collected waste at its own factory, which started operations earlier this year. Kim Jung-bin, CEO of Superbin, said, "Recycling activities based on a circular economy with voluntary citizen participation are exemplary cases that save cities, overcome the climate crisis, and preserve biodiversity."

Next-generation battery company Standard Energy developed an energy storage system (ESS) incorporating vanadium ion battery (VIB) technology. Vanadium ion batteries use water as the main component of the electrolyte, eliminating fire risks and offering excellent durability, meaning they do not explode. Simply put, there is no risk of fire caused by the battery. Solar or wind energy can be stored in the ESS and used 24 hours a day. The reason Standard Energy’s vanadium ion battery is promising is that it has the potential to replace lithium-ion batteries, which currently dominate the global ESS market. Although lithium-ion batteries are efficient, they use volatile substances as electrolytes, exposing them to fire hazards. Additionally, their short lifespan causes environmental pollution when discarded. In contrast, vanadium ion batteries have a long lifespan and allow material recycling.

◆ Money flows into climate tech=These innovative startups did not enter the market solely out of a sense of mission. As countries worldwide focus on developing technologies to respond to severe climate change, the market is expanding. Despite an investment ‘cold season,’ funds flow in if there is technological capability. For example, Standard Energy received 65 billion KRW in investment from Lotte Chemical last year. Prior to that, they secured 10 billion KRW from SoftBank Ventures.

Market opportunities are expected to expand further. Market research firm PitchBook reported that global investments in climate tech companies reached $44.8 billion in 2021, more than tripling in two years. Deloitte Korea projected that if carbon neutrality is actively pursued over the next 50 years, the global economy could benefit by $43 trillion, and the Korean economy by 2,300 trillion KRW. Jeong Hwan-soo, a researcher at KDB Future Strategy Research Institute, said, "There is a growing trend of investment in deep tech recently, driven by expectations to solve urgent issues such as the climate crisis and food problems facing our era, and to pioneer new business markets."