Methane

Methane (CH4) has a global warming potential >80x that of CO2 (on a 20-year horizon).

Oil and gas, agriculture, and waste sectors emit the largest quantities of anthropogenic methane.

Methane Monitoring, Reporting, and Verification (MRV) is one of our key sub-theses, given that it’s a critical enabler for accelerating reduction of the ~580 Mt of methane emitted annually.
What's the problem?
  • AccelR8 prioritizes venture-backable solutions to the “most important, most unmet” drivers of climate change.
  • Although shorter-lived in the atmosphere, methane’s global warming potential is ~85x stronger than that of CO2 over a 20-year timeframe and it’s responsible for 20-30% of warming to-date.
  • As a colorless and odorless gas, however, methane measurements have historically been challenging and based on assumptions-based calculations that are frequently underestimated. Accurately identifying and sizing methane leaks is vital for effective mitigation.
Who are the key players?
  • A remarkably broad array of startups and solutions exist for methane MRV, spanning hardware and software. This breadth has emerged in response to a demand landscape that is very fragmented – in oil and gas, for example, one operator often manages a variety of sites whose individual needs can vary widely based on locale, part of value chain, and more.
  • Coupled with the fragmentation is a checkered regulatory environment; the U.S. Congress repealed the Inflation Reduction Act’s methane fee, indicating a step-back from the major U.S. methane MRV regulations that the IRA set forth, while other actions such as the E.U.’s methane MRV requirements for imports starting in 2027 could still drive regulatory pressure.
  • At the same time, methane mitigation has an inherent value proposition given that the molecule’s a valuable commodity as a very useful (and sellable) high-energy fuel source.
What does AccelR8 think?
With such a fragmented landscape, one may surmise that any possible market is too small for venture – but we’ve identified three promising pathways that can tap into large cross-sectoral markets:
  • Lower the cost (and price) of the highest-sensitivity solutions, such as optical gas imaging, by an order of magnitude. Approaches can include potential metasurface applications, low-cost or replacement of cryocooling, component redesign, or more.
  • Improve the performance of continuous sensor technology by an order of magnitude at a low price (e.g., single-digit-dollars per device). This includes components – e.g., new sensor arrays integrated into existing devices – as well as full devices, with additional value if able to sense multiple gases (CO2, VOCs, SF6, H2, etc).
  • Offer an all-in-one solution that addresses all of a customer’s pain points – from monitoring diverse sites at different proximities, to reducing humans in-the-loop, to delivering predictive analysis for optimizing operations – in a highly integrated, intuitive package.
How can you help?
  • We’re actively seeking to connect with electrical and chemical engineers, researchers, and early-stage innovators working on developing and commercializing the above technology – if you have a solution that fits the bill, please reach out!
  • If you want to jam more on this topic with us or think we’re missing something, we’d also be delighted if you send us a note.

Questions.

What we look for.
What we look for in founders:

We back founders building great companies at the speed and scale necessary to avert climate tipping points. We look for founders who are:

Problem Solvers: You obsess over customer problems, not just the tech. Your goal is rapid, widespread adoption.

Relentless Builders: You thrive on creating products, closing deals, and cultivating high performing teams. You embrace the hustle.

Visionary Leaders: Your clear and compelling vision inspires others to join and make it a reality.

Adaptive Learners: You fail fast, learn quicker, and constantly push to build a world-class company.

What we look for in companies:

We invest in and build companies that transform physical industries. We back solutions that solve acute problems for industrial customers and governments by being cheaper, better, and faster. Specifically, we look for companies that are:

Impactful: Demonstrable potential for significant, quantifiable GHG reduction and climate resilience within 20 years.

Feasible: Technology proven at TRL 3-4+ with a clear path to scalable, probable deployment and adoption driven by market pull.

Economic: Compelling unit economics, validated by robust techno-economic analysis, leveraging capital-efficient models and possessing global economic potential.

Formidable: Led by a committed team with the essential technical and commercial expertise.

Where we're at our best:

We provide strategic and active partnership from the earliest stages of company formation, preferring to lead pre-seed and seed rounds. Our support is hands-on and focused on shortening market feedback cycles, ruthlessly prioritizing and delivering on milestones, and developing world class talent and organizations. We primarily invest in North American-based teams building companies with transformative technology and great execution.

Working on an innovation to solve climate change? We're ready to help you build it.

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If you share our sense of urgency and believe you have an innovation to address this existential threat, please reach out.
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