With its kinetic hydropower plants, the start-up is tapping into a new renewable energy source that protects the entire river biotope.
Founders Georg Walder and Richard Eckl are experienced entrepreneurs: they sold their company INVENOX, which specialised in lithium-ion battery storage systems for mobile machinery, to a German medium-sized company in 2020 after ten years. The team is complemented by CTO Chantel Niebuhr, who completed her doctorate on kinetic hydropower at the University of Pretoria, and CMO Natalie Rojko.
In this interview, founder Richard Eckl explains why their idea is successful and how they got there.
What does Energyminer do?
With our compact hydrokinetic underwater power plant, the Energyfish swarm, we are tapping into a new renewable energy source. We utilise the flow velocity of water in rivers and - in contrast to photovoltaics or wind power - reliably produce electricity in all weather conditions and at any time of year. The technology is low-maintenance, failsafe and reliable and therefore highly economical. The electricity is fed directly into the local low-voltage grid. Power plants capable of meeting base load requirements are being shut down on a regular basis - but there is no adequate replacement with renewable energies in sight. As a renewable energy source that is base-load capable, kinetic hydropower makes an important contribution to the success of the energy transition. If the technology is used consistently in all European rivers, up to 16% of current CO2 emissions in Europe could be saved. The expansion potential of kinetic hydropower in Europe amounts to 37 billion euros or 473 terawatt hours per year. This means an annual CO2 saving of 411 megatonnes.
Were you the first to take a close look at kinetic hydropower?
We analysed the market in detail right from the start. We realised that there were and still are some who have already tried such approaches - without success. We wanted to understand the reasons for the failure so that we wouldn't repeat the same mistakes. Our intensive analysis revealed that the competitors' systems were fundamentally too expensive. The result was little or no profitability. Another critical point was the business model. Our competitors had previously tried to sell their systems as hardware only. We realised that this was the wrong approach. That's why we take all the worries away from our customers and deliver turnkey swarm power plants. Above all, this includes challenges such as site authorisation, the right choice of location, installation and maintenance of the plants. If we take on all these tasks and deliver a turnkey power plant that is already connected to the grid and supplying electricity, this opens up completely new perspectives. Instead of using a new business model that requires explanation, we operate with existing customer groups and structures. This makes it easier for us to enter the market.
Photos: Energyminer
How did the idea of entering this particular field come about?
Our path to this idea has a long history. My co-founder Georg has two small hydropower plants in his family. We toyed with the idea of building or operating one ourselves. Unfortunately, we realised that this was not possible as all suitable sites were occupied or new permits were not being granted. So we looked for another way to build a hydropower plant that would be better and more efficient. After intensive research, we came across kinetic hydropower and developed a completely new plant concept. With this in mind, we then founded Energyminer.
Energyminer is not your first start-up; you already had a successful company with INVENOX. Would you say that you have approached your new project differently due to your many years of entrepreneurial experience?
It's a mixture of "starting from scratch" and "completely reworking things", as it's a different topic. Of course, we can draw on some familiar things and not repeat certain mistakes. Our knowledge of how to manage a company is particularly valuable. We were able to transfer this experience directly. For example, we implemented the Scrum process right from the start and work entirely according to it. Agile project management is very valuable to us as it increases the efficiency of our work in this complex environment.
What concrete next steps do you have planned? What challenges are you facing?
The challenge we face today is that financing is no longer as easy to obtain as it was perhaps two years ago. We are therefore focussing on a hybrid form of financing, i.e. we are not just relying on one source of financing, but combining different ones.
We are now on the verge of obtaining licences for larger sites with up to 100 turbines. The next few months will show how quickly these licences are granted.
Another exciting aspect is the further technical development of our products. We are currently in the transition from pilot to series production. This means that our pre-series systems are being produced in collaboration with production partners. This transition from prototype to real product is an exciting phase for us.
Why did you take part in the Munich Business Plan Competition? What did you take away from it?
Taking part was very valuable for us. Our business model is not commonplace and the feedback helped us to sharpen our presentation. It is essential to be able to communicate the business model clearly and comprehensibly, especially when approaching investors. Access to the BayStartUP network is invaluable for us. All the financing rounds we have gone through so far have come either directly or indirectly from this network. Last but not least, taking part in the competition has given us publicity and raised our profile among investors and key stakeholders in politics.
We can only recommend everyone to take part in the competition. It is always a very valuable experience, even if you don't win first place.
Photo: Andreas Gebert
How do you assess the current situation for start-ups and what advice would you give young founders?
The search for investors has become much more challenging. However, you shouldn't let this put you off too early and shouldn't give up prematurely. It is advisable to stay on the ball, keep looking and try to tap into more "sources" for investor contacts. By reducing the financing targets somewhat, it will be easier to acquire the necessary funds.