Deep Tech Briefing #33: ⚛️ Modular Underwater Nuclear Reactors; 🌳 Drones for Sustainable Forestry; 🧱 Carbon-Storing Concrete; 🧬 RNA Therapies Target Kidneys and more...
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Hey there! Welcome to the #33 edition of Deep Tech Briefing, our Sunday column where we break down the week’s top developments in Deep Tech Startups and Venture Capital.
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In today’s edition
Robinhood cofounder launches a space-based solar power startup, aiming to deliver energy from orbit.
Modular underwater nuclear reactors gain $45M to accelerate safe, shipyard-built power solutions.
Drones lead a fossil-free shift in forestry, protecting ecosystems while harvesting trees.
Carbon-storing concrete attracts investment, turning buildings into climate-positive assets.
RNA therapies make strides with kidney-targeted treatments for previously untreatable conditions.
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🛰️ Robinhood Cofounder Launches Startup Embracing a New Approach to Space-Based Solar Power
Baiju Bhatt, best known as the co-founder of Robinhood, has recently embarked on an ambitious new venture in the field of Space-Based Solar Power (SBSP) with his startup, Aetherflux. This project aims to strategically place hundreds of solar panels in orbit, taking advantage of the nearly continuous sunlight while cleverly avoiding terrestrial challenges like sunsets and cloud cover.
Although the concept of SBSP is not new—it has intrigued scientists and visionaries since the 1970s—it has historically faced significant challenges. High costs and technical barriers have long impeded its progress. However, recent developments have changed the landscape. Notably, launch costs have dropped significantly due to reusable rockets from companies like SpaceX, and substantial advancements in photovoltaics, material science, and energy transmission have renewed interest in SBSP.
Nevertheless, Aetherflux is entering a competitive market where both private and government entities are actively working on different solutions. For example, Northrop Grumman and the Japan Aerospace Exploration Agency (JAXA) have invested heavily in microwave-based systems. While microwave transmission is effective for long-distance power transfer, it requires large ground-based receiving stations, making it a high-risk and costly option.
Currently, the SBSP market is dominated by two primary transmission methods: microwaves and lasers. Microwave systems, which account for approximately 80% of the market, are valued for their reliability and minimal energy loss over long distances, making them particularly attractive for government and defense applications. Meanwhile, laser-based systems, the focus of newer players like Aetherflux, are emerging as the fastest-growing segment.
Laser transmission offers the potential for lower launch and maintenance costs through smaller, modular satellite constellations. However, it faces challenges, particularly in achieving precise beam pointing. If successful, laser-based SBSP could greatly support high-efficiency distributed energy networks, making it ideal for commercial use and areas with limited terrestrial energy infrastructure.
Indeed, the market for Space-Based Solar Power is rapidly growing. In 2024, it is projected to reach approximately $3.4 billion, with expectations to grow to $4.7 billion by 2030, reflecting a compound annual growth rate (CAGR) of around 4.2%. This acceleration underscores the increasing global demand for renewable energy and highlights SBSP’s potential as a largely untapped source of continuous, weather-independent energy.
Interestingly, space has always been a personal passion for Bhatt, whose father worked at NASA. Bhatt himself studied physics and mathematics at Stanford University, which further fueled his interest in the cosmos. Now, with a small team in San Carlos, California, and tens of millions of dollars in personal capital backing Aetherflux, the company is preparing to launch its first satellite by late 2025 or early 2026 to generate solar energy and transmit it back to Earth.
However, the path forward is not without significant hurdles. According to BNN Bloomberg, launching the initial modules could cost between $2 billion and $5 billion, not including the additional expenses required to refine microwave transmission technology. Furthermore, concerns around safety and regulation persist. The Federal Communications Commission currently lacks detailed guidelines for SBSP, and issues like space debris and the health risks of energy transmission remain unresolved.
According to the U.S. Department of Energy, terrestrial solar energy currently accounts for less than 3% of global energy production, struggling with challenges related to storage capacity and intermittency. Unlike these existing technologies, SBSP offers the promise of nearly continuous energy, unaffected by weather or time of day. Preliminary estimates suggest that a single SBSP satellite could potentially power over 100,000 homes, a figure far exceeding the output of typical terrestrial solar plants, which are often constrained by environmental and logistical factors. In this scenario, Aetherflux aims to bridge the gap and help accelerate the global shift toward more reliable, renewable energy sources.
⚛️ Underwater Nuclear Reactor with Shipyard Manufacturing: $45M Funding Boost for Modular Nuclear Power Plants
In recent years, nuclear energy has reemerged as a focal point for delivering clean, dependable power, critical for sustainable industrial growth and meeting the ambitious goals of global decarbonization. This subject has been a recurring theme in our discussions, but the latest development is a groundbreaking initiative from MIT’s Department of Nuclear Science and Engineering.
This week, a startup called Blue Energy made its debut, announcing the completion of a $45 million Series A funding round, led jointly by Engine Ventures and At One Ventures. The company unveiled a concept for a modular nuclear power plant that can be centrally manufactured in existing shipyards—indeed, underwater.
Blue Energy claims this innovative method could slash capital costs from $10,000 per kilowatt (kW) to $2,000/kW, while reducing construction timelines from ten years to just two. Each reactor is designed to generate between 100 MW and 300 MW and can be installed in shallow waters up to 3.6 meters deep, improving resilience to seismic events, aircraft impacts, and other potential threats.
The modular small reactors (SMRs) boast an unconventional design tailored for offshore use. By submerging the reactors, Blue Energy aims to integrate a passive, foolproof cooling system that harnesses the surrounding water—offering significant safety benefits.
This strategy, reminiscent of offshore wind farms, promises two major advantages: a self-sustaining cooling system and increased resistance to impacts, tackling some of the biggest challenges in nuclear energy. Unlike traditional land-based reactors that depend on backup cooling systems, these submerged models should offer passive safety features that prevent critical incidents without human intervention.
Of course, Blue Energy isn't alone in the SMR space. For instance, Oklo has launched an SMR model aimed at off-grid industrial applications, featuring similar passive cooling and "walk-away safe" security capabilities. Meanwhile, TerraPower is developing a sodium-cooled reactor designed for extended operational periods and targeting sectors that demand high reliability.
However, using shipyards for production could reduce material and labor costs, centralize production, and minimize the complex regulatory hurdles associated with building traditional plants. Indeed, although there have been exciting advances in nuclear reactor technology, reactors represent less than 10% of the cost of nuclear power plants; over 90% of the cost stems from construction and regulatory challenges elsewhere in the facility.
Despite these technological strides, Blue Energy remains, in any case, subject to the rigorous regulatory scrutiny that pervades the nuclear industry. While there have been modest regulatory reforms intended to expedite approvals, launching a nuclear plant on the market still demands extensive regulatory processes.
However, the surge in AI data centers and manufacturing has further highlighted the urgency for reliable, clean electricity. In fact, in its 2024 report on pathways to commercializing advanced nuclear, the U.S. Department of Energy underscored the risks of delay: "Waiting until the mid-2030s to implement new large-scale nuclear could lead to failing to meet decarbonization goals and necessitate 50% more capital."
In essence, the narrative of Blue Energy touches a crucial nerve in the global energy debate: In a world striving for decarbonization, how can we satisfy the escalating demand for energy without compromising safety, environmental integrity, and future resources?
🌳 Fossil-Free Aerial Forestry: Spotify’s Investors Now Backing a Startup That Aims to Harvest Trees with Drones
AirForestry, a Swedish startup developing aerial tree-harvesting technology with drones, has closed an initial funding round of €10.3 million. This round was led by Northzone, a renowned global multi-stage venture capital fund valued at $4 billion, famous for investing in groundbreaking companies such as Spotify, Trustpilot, and iZettle.
The startup has designed a 6.2-meter-wide drone equipped with a 60 kg tool that enables forestry work from the air, in contrast to traditional heavy, cumbersome, and fuel-intensive ground machinery.
Here’s how it works: the drone approaches the tree targeted for thinning, grips the top, and trims branches as it descends before making a precise cut through the trunk. It then secures the tree for transport to the nearest road—all without disturbing the forest floor.
From an environmental perspective, this method preserves and protects trees, soil, and plants, strengthening the forest ecosystem. This approach improves surrounding waterways and benefits the planet overall. But when it comes to numbers, what makes this so interesting?
Compared to conventional methods, one of the most significant advantages of using drones and similar technologies is the reduction in fixed costs related to logistics and manual labor. The adoption of drones for forestry operations eliminates the need for road construction and large machinery, with potential operational savings of up to 50%, according to a DroneSeed Report.
Traditional forestry relies heavily on diesel, consuming over 3.5 billion liters annually. In contrast, AirForestry’s electric-powered solution offers transformative potential, with the capacity to cut CO2 emissions by up to 10 megatons annually. Initial tests conducted by the company show that thinning forests without building access roads, while optimizing growth conditions, can save approximately 0.8 tons of CO2 per hectare each year—equating to over 500 megatons globally.
The sustainable forestry technology sector is projected to grow driven by stricter environmental regulations and demand for more efficient methods. For instance, the EU promotes policies for increased forest coverage and sustainable resource management, and recent U.S. climate legislation offers green incentives.
Interest in sustainable forestry extends beyond regulatory mandates. According to the World Economic Forum, decarbonizing forestry through advanced technologies could reduce agricultural emissions by up to 25% over the next decade. As a result, forestry technology companies stand to benefit from both the carbon credit market and government support programs.
Sustainably managed forests absorb significant amounts of CO2, and forestry tech companies capitalize on this by selling carbon credits to corporations aiming to offset their emissions. Notably, carbon credit prices have risen by 15-20% annually over the past three years, a trend likely to continue as more companies, including Amazon, Microsoft, and Unilever, prioritize “net zero” goals.
Ultimately, cleaner, more efficient forestry practices contribute to healthier ecosystems, lower emissions, and more resilient landscapes. This convergence of technology, sustainability, and capital marks a significant step forward in preserving our natural resources for future generations.
🧱$25M Funding Fuels Paebbl’s Mission to Embed Carbon Storage in Building Materials
Imagine a world where urban infrastructure itself actively absorbs carbon, making our cities and buildings part of the climate solution…
Well, that’s precisely the bold vision of Paebbl, a Rotterdam-based startup that just secured $25 million in Series A funding, backed by Capnamic, Amazon’s Climate Pledge Fund and global construction heavyweight Holcim. In short, they must have inspired this vision even these industry giants to dream a little! :)
But in all seriousness, this European startup is setting out to make this vision a reality through its cutting-edge mineralization technology. In a sector responsible for 8% of global CO2 emissions, such innovations could redefine sustainable construction.
At the core of Paebbl’s approach is an accelerated mineralization process that mimics—and speeds up—the natural carbon-capture mechanism in rocks. By transforming CO2 into magnesium carbonate through a chemical reaction with silicates, Paebbl generates carbon-storing materials durable enough for construction. Unlike traditional concrete production, which is energy-intensive and emits significant CO2, Paebbl’s method skips the high-energy lime kiln process used by competitors like CarbonCure and Solidia, thanks to its innovative use of magnesium minerals.
This process accelerates nature’s own way of capturing and storing CO2 in magnesium-rich materials, turning what was once a harmful emission into a stable, structural asset. The impact of this technology is especially relevant as the carbon capture, utilization, and storage (CCUS) market is expected to grow from $3 billion in 2022 to more than $10 billion by 2032, driven by evolving regulations and corporate sustainability commitments.
Europe’s upcoming Carbon Border Adjustment Mechanism (CBAM), set to impose tariffs on carbon-intensive imports in 2026, could spur demand for low-carbon construction materials across the continent. Similarly, the 45Q tax credit in the U.S. incentivizes companies to adopt carbon capture, enhancing the market potential for these CCUS technologies.
Although competitors like CarbonCure and Solidia are advancing carbon-negative concrete, Paebbl’s magnesium-based approach avoids the high-energy demands of calcium-rich processes. This advantage could translate to both cost efficiency and lower emissions, critical in a sector where low-carbon technology still faces cost premiums of 20-30% over traditional materials. Still, the challenge of scaling production and securing a steady magnesium silicate supply remains. Paebbl aims to tackle this with plans for a demonstration plant by 2025, though operational and supply chain challenges loom.
As construction companies and governments intensify their focus on reducing emissions, could carbon-sequestering materials transform the $1.2 trillion global building materials market? Will widespread CCUS adoption bring costs down to match traditional methods, or will scaling challenges slow progress?
As regulatory frameworks tighten, the construction sector’s contribution to climate action may ultimately hinge on resolving these questions. In this emerging era, cities themselves could become powerful tools for passive carbon mitigation—an inspiring prospect for sustainable urban development.
🧬 Judo Bio's $100 Million Launch: A Strategic Move in Kidney-Targeted Oligonucleotide Therapies
The RNA-based therapy market is evolving quickly, propelled by innovations that enable treatments for previously hard-to-reach organs. One of the latest players in this space is Judo Bio, which has emerged from three years of stealth mode with $100 million in financing.
Judo Bio’s strategy focuses on developing oligonucleotide therapies specifically for the kidney, a challenging organ to target with genetic drugs. Leveraging receptor-mediated delivery technology, the company aims to address anatomical and biochemical barriers that have limited therapeutic effectiveness for renal diseases.
In recent years, companies like Alnylam Pharmaceuticals have made notable progress in RNA interference (RNAi) technology for liver-targeted therapies. Through attaching small interfering RNA (siRNA) molecules to sugar-based compounds, Alnylam has introduced four FDA-approved liver-focused therapies since 2018, beginning with Onpattro™. Judo Bio appears to be pursuing a parallel approach with a focus on kidney-targeted therapies.
At the center of Judo Bio’s technology is the STRIKE platform (Selectively Targeting RNA Into Kidney), which employs ligand-siRNA conjugates to deliver therapeutic agents directly to kidney cells through receptor engagement. In practice, the STRIKE platform is designed to interact with the megalin receptor, a protein found naturally on renal epithelial cells, to facilitate the direct delivery of RNA-based therapies to the kidney. This approach seeks to keep the therapy within the kidneys, potentially circumventing challenges like rapid degradation or elimination that have hindered other oligonucleotide drugs aimed at the kidney.
Kidney disease impacts over 850 million people globally, with 37 million adults in the United States affected by chronic kidney disease (CKD). CKD, often accompanied by metabolic and cardiovascular complications, underscores an unmet need for effective treatment options. Presently, many therapies primarily address symptoms, providing limited direct action on renal dysfunction itself. Given the prevalence of related conditions such as type 2 diabetes, hypertension, and certain metabolic disorders, approaches targeting renal pathways could play a valuable role in improving patient outcomes.
However, delivering RNA therapies effectively to the kidney presents unique challenges. Unlike the liver, where selective receptors assist in the uptake of therapeutic oligonucleotides, the kidney’s intricate structure has made it more difficult for these therapies to penetrate. Many oligonucleotide drugs have shown a tendency to degrade or be expelled before taking effect.
Leading Judo Bio is Dr. Rajiv Patni, an experienced figure in the biopharma industry who previously served as Chief R&D Officer at Reata Pharmaceuticals, a company acquired by Biogen for $7.3 billion in 2023.
While Judo Bio has yet to disclose the specific conditions it aims to treat with its megalin-STRIKERS or provide a timeline for clinical trials, the company reports success in preclinical studies, where its proprietary ligand-siRNA conjugates demonstrated receptor-mediated delivery of oligonucleotides to the kidney, silencing multiple target genes.
As regulatory guidelines for RNA-based therapies develop, the market for kidney-targeted RNA drugs could expand, and platforms like STRIKE could revolutionize treatment approaches for renal diseases, aligning with regulatory and healthcare system preferences for therapies that not only demonstrate efficacy but also offer cost-effectiveness.
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