🎙️EP06 - Thermal Energy Storage + Decarbonising Heat
A conversation with James Macnaghten on thermal energy storage, industrial strategy, CfD, offshore wind, people, scaling, and everything in between!
Introduction
It's time for EP06, with James Macnaghten of Caldera.
A far-ranging conversation, we discuss the critical role of thermal energy storage in decarbonising heat and absorbing excess generation, alongside other challenges faced in the energy transition.
We also dive into the innovative technology developed by Caldera:
giant night storage heater in a vacuum flask
James' words, not mine! A disservice, more credit is due; as you will see from the video, the factory production process is complex, big, heavy, and incredibly hot!
James shares insights on the economics of energy storage, the significance of partnerships, and the need for consistent energy policy. The conversation concludes with reflections on leadership and scaling.
If you want to check out x6 quick 1-minute clips to see what it's all about before diving in, then head this way ⬇️
Kane Watkinson
James has strong views on the UK's industrial strategy, offshore wind, zonal pricing and the benefits of startup and innovation funding.
His pragmatic thinking always references back to his core belief:
What's useful for the system?
We want to decarbonise as quickly as possible, and we can't be sentimental about it, even if something seems slightly contrarian, if it gets us there faster and cheaper, we should do it.
We dipped into the UK's strategic outlook - do we have a cohesive industrial and energy strategy in the UK? We share similar views on the opportunity to leverage our East Coast industrial base, offshore wind industry, and local steelworks in Scunthorpe.
At the time last year, zonal pricing was the subject of continuous chatter - now that zonal pricing is off the table, we can focus on what actually needs fixing.
As James notes, smarter CfD design that accounts for location and capacity factors could help solve the challenge. We already have a complex and challenging market design; we don't have the time or need to reinvent the wheel.
That would kill investment - CfD reform could be implemented faster, with less disruption, and actually addresses the root cause.
Sometimes the best regulatory decision is recognising when you're solving the wrong problem.
Industrial heat is a massive emissions source; most people don't realise it's enormous scale. This is a critical market, and we aren't doing nearly enough, fast enough. You can see why Caldera ended up here.
Decarbonising everything under 200°C in industry = removing every single car off the road worldwide!!
But he didn't start out in the industrial space - knowing when to pivot and align for better product-market fit, while avoiding reliance on long-term policy changes is a key lesson for other cleantech founders.
James has nurtured Caldera on its own path, eschewing the typical high-velocity startup overreach and burnout.
They have focused on fundamentals, with incremental steps at the right time and pace. Important milestones have included £4.3m in Gov. funding for pilot demonstrators and, more recently, a £10m Series A round with a key industry partner, GEA.
Wrapping up, James reflects on his experiences, people, technology, and what comes next.
Just hit play below and watch right here on the page! 🎬 🍿
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Chapter summary for your guidance...
Chapters
What's next?
As always, would love to get your feedback on this episode and what/who else you might like to see. 🗣️
If you want to volunteer yourself or a colleague to promo your own climate tech adventure, let's talk!
Up next in EP07, Stephen Crosher, CEO of RheEnergise talking about their High density Pumped Hydro solution.
Some background on them from Newsletter 030.
Stand by... 💧
Hope you enjoyed this one, on we go!
Kane
