The global thermal energy storage market size reached US$6.3 billion in 2022. According to IMARC Group, the market is projected to expand to US$11.5 billion by 2028, with a compound annual growth rate (CAGR) of 10 per cent from 2023 to 2028.

The market is expanding due to increased demand for energy efficiency and sustainability, driven by the growing adoption of renewable energy sources like solar and wind power. Thermal energy storage (TES) systems play a vital role in this by storing excess energy from peak periods and releasing it when demand spikes, thus improving grid stability and reliability.

Amidst this trend, Alternō, a climate tech startup based in Vietnam, stands out as a significant player dedicated to reducing carbon emissions and generating revenue through the decarbonization of industrial and building heating systems.

Innovating energy storage: The Alternō Air solution and founding journey

Alternō operates in the green energy sector, providing Alternō Air, a Thermal Energy Storage (TES) system powered by sand batteries, which offers a sustainable solution for efficient and eco-friendly energy storage and utilisation.

Alternō Air operates by storing thermal energy in sand, a sustainable and abundant medium. Unlike traditional methods that rely on less efficient or environmentally harmful materials, Alternō’s technology excels in storing excess thermal energy, typically generated from renewable sources like solar or wind power, and releasing it as needed.

The system comprises an insulated container filled with sand embedded with heat transfer pipes. Silicon dioxide, the main component of sand, possesses remarkable heat retention properties, capable of stabilising temperatures up to 1,000 degrees Celsius. During operation, thermal energy stored in the sand is discharged through these pipes, providing heating or cooling solutions.

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Alternō’s founders Kent Nguyen, Hai Ho, and Nam Nguyen envisioned adapting sand battery technology to meet Vietnam’s energy needs. They explored applications like crop drying, leading to a promising prototype and securing a US$110,000 investment through Antler’s startup incubation program to launch their project.

Ho, who also serves as the company’s Chief Commercial Officer, highlighted, “What sets Alternō Air apart is its novel application of sand as a storage medium, combined with a state-of-the-art heat transfer system. This innovation provides a more cost-effective solution than conventional energy storage systems and significantly reduces carbon emissions. The system’s efficient heat retention capabilities mean that energy can be stored for extended periods, making it a reliable source of renewable energy.”

Empowering sustainability: Alternō’s impact and revenue strategy

Southeast Asia’s focus on sustainable energy solutions due to traditional energy reliance and environmental concerns presents opportunities in climate technology. Alternō stands to benefit from this trend with its technology, aligning with the region’s shift towards greener energy.

Alternō Air’s applications in agriculture and industry revolutionise processes like crop drying, offering a zero-emission alternative for products like tea, coffee, and rice. This ensures sustainable, cost-efficient, and high-quality drying methods, replacing environmentally damaging fossil fuel-based approaches.

Alternō Air also addresses thermal energy management in the industrial sector, particularly benefiting high-energy-demand industries like biotechnology and construction. Its sand battery technology aligns with global efforts to reduce industrial carbon footprints, potentially cutting operational costs while meeting environmental standards.

The firm has secured patents for this unique system, marking it as the world’s first to apply thermal energy storage in zero-emission drying processes.

Ho stated, “Alternō’s revolutionary technology has found a strong foothold in the agricultural sector, with robust demand for sustainable and efficient energy solutions. However, the demand for Alternō’s products currently outstrips supply, underlining the urgent need and market potential for eco-friendly energy solutions. The company is actively working to scale up its production capabilities to meet this increasing demand.”

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Alternō employs a three-pronged revenue strategy rooted in a versatile business model generating income through direct sales and deployment of its thermal energy storage systems, supplemented by innovative financial solutions tailored to client needs.

• Sales and deployment: The startup’s primary revenue source is the sale and installation of its Alternō Air systems, targeting agricultural and industrial clients seeking sustainable energy solutions.
• Rent-to-Own Model: To broaden accessibility, Alternō offers a Rent-to-Own model, allowing clients to use its systems by paying a monthly fee of US$1,000, gradually acquiring ownership over time.
• Heat-As-A-Service (HAAS): Alternō provides Heat-As-A-Service, enabling clients to pay for thermal energy usage similar to a utility bill, appealing to those preferring operational expenditure over capital investment.

Funding journey and future plans

Alternō is on track to conclude an oversubscribed seed funding round of US$1 million in Q1 2024, following a pre-seed round, primarily from VC firm Antler, where it transitioned from concept to commercial product within six months. The firm also utilised grants and partnerships from key contributors like JICA, Qualcomm, Temasek Foundation, and P4G Partnerships to strengthen its financial and operational capabilities.

Alternō plans to expand beyond Southeast Asia, targeting regions heavily reliant on fossil fuels to reduce carbon footprints. By 2030, the company aims to achieve a monumental goal of reducing 100 million tons of CO2 emissions, contributing significantly to the global race towards net-zero emissions by 2050. Alongside this environmental target, the company also aims to generate US$100 million in revenue, demonstrating its sustainable solutions’ economic viability and scalability.

The escalating demand for green energy solutions, driven by government incentives and a global push for sustainability, positions Alternō for substantial growth and profitability. Alternō aims to transform the way energy is consumed and managed across multiple sectors.

With the ambitious goal of reducing the 52 per cent of global energy consumption attributed to heating and cooling, the company is poised to become a key player in the global transition towards sustainable energy practices.

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Image credit: Alternō

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