Optimizing Energy Allocation and Purchase Decisions—Investing in Quantum Energy

Optimizing Energy Allocation and Purchase Decisions—Investing in Quantum Energy

Aug 14, 2023 1:29 PM
Posted by
Jahed Momand & Matthew Stotts

Quantum Energy is building an integrated renewable energy analysis platform combining energy system optimization and life cycle assessment to measure the environmental and social impacts and tradeoffs of nearly 279,000 corporate and government energy purchase decisions made each year globally. These decisions are largely ill-informed of the life cycle of environmental and health impacts, commonly referred to as “externalities,” yet when impact analytics are quantified and financially valued, they can be more than 10x larger than infrastructure costs alone.

The core of our work and our investment thesis at Cerulean is focused on the end of externalities. To that end it is critical that we build systems, support communities and invest in technologies that properly account for the costs of extractive industries and rent-seeking businesses. Quantum Energy has created the methodology to document provable financial accounting of planetary and human health and they are building a system to on-board corporations and municipalities to optimize their energy purchases for impact and accelerate the path to renewable energy for all.

For more information see this J.P. Morgan article on the social cost of carbon.

What is Quantum Energy?

Quantum Energy’s TotalView Energy is an integrated energy platform combining energy system optimization and life cycle assessment to measure the impacts and tradeoffs of corporate and government energy decisions. The initial product is a result of Dr. Howard’s post-doctoral research on the impacts of renewable energy decisions. The data, algorithm and statistical modeling is completed and a queryable application programming interface (API) is under development. SaaS platform delivery with a consumable dashboard for clients is on the product roadmap.

Also on the product roadmap is a second product, a “Client Impact Tracker” to enable corporations interested in telling their ‘sustainability hero’ story via impact analytics to drive consumer loyalty.

Why did we invest?

As of November 2021, the asset owners and managers of 77% of the global assets under management, in excess of $130 Trillion, have committed to transitioning their portfolios to net zero emissions by 2050. For these reasons, 5,229 corporations, 1,049 cities, 67 sub-national regions, 441 financial firms, and 1,039 higher education institutions have committed to “Race to Zero” by achieving net zero emissions by 2050 at the latest. Quantum Energy will go to market with its data and analysis tools in three segments:

  1. Environmental Sustainability Consulting Industry, which is valued at $40 billion/year and expected to increase to nearly $50 billion in 2022.
  2. Global 2000 Corporations. At least one fifth (21%) of the world’s 2,000 largest public companies have committed to achieve net zero by 2050.
  3. Municipal Governments. Every government, from small local governments to national governments make energy decisions on a regular basis and represent potential customers; Quantum Energy will focus on municipalities in the United States to start.

The team has what it takes to build in this space as well. Dr. Daniel Howard is uniquely qualified to develop a solution to the unmet need for better energy decision analytical tools due to his unique training that has made him a world expert in the niche modeling nexus of energy, environmental, and human health, and his previous SaaS development experience, having spent four years at a SaaS startup before a successful exit.

Andrew DeMille is a successful, multi-exit SaaS startup founder. Previously, Andrew co-founded and grew a skill development SaaS platform startup that connects coaches and athletes around the world to 500,000 users in over 100 countries before it was acquired. To Quantum EC and the efforts outlined herein, Mr. DeMille brings a strong sales acumen and understanding of SaaS commercialization and marketing to the organization, as well as expertise in SaaS business models, fundraising, technical and development team structuring and hiring, operations, go-to-market strategies, and commercialization. Commercialization efforts will be run by Andrew.

Nothing contained herein constitutes investment, legal, tax or other advice nor is to be relied upon in making an investment or other decision. This article contains the opinions of the author, and such opinions are subject to change without notice. Furthermore, it may also include data and opinions derived from third party sources. Cerulean Ventures does not accept liability for the accuracy or completeness of any such information or opinions which can be subject to change without notice.