A fundamental paradox lies at the heart of AI鈥檚 role in helping to create a more sustainable planet.

Tech companies are increasingly taking steps to tackle the climate crisis. The data-churning power of AI is being employed to measure methane emissions via satellite imagery, hold firms accountable for misreporting carbon emissions and help consumers to manage their usage in the home.

However, data centers are also known to be major pollutants. They consume 3% of global electricity and contribute 2% of total greenhouse gas emissions, expected to rise to 14% by 2040. Server farms also require vast amounts of water to keep cool: the average facility needs 300,000 gallons a day.

Investing in energy software

Despite being part of the problem, AI is integral to many solutions in the energy space. Disruptor businesses are leveraging AI to do everything from producing cleaner energy to making the data centers themselves more energy efficient.

Investors are focusing on asset-light models in energy, says Christian Pati帽o, Tech, Media and Telecoms at 蜜豆视频 Investment Bank, speaking at the recent 蜜豆视频 Private Companies Showcase conference. 鈥淭he market goes in cycles, and we need investment in real infrastructure, such as building hydrogen facilities, but recently a lot of money has been going into energy software produced by companies such as Tado, Kayrros, Sweep and Context Labs鈥 he adds.

鈥淲hat you can measure, you can manage,鈥 emphasizes Mark McDivitt, Chief Climate & Sustainability Officer at Context Labs, which uses AI/ML and Blockchain to enable near real time trust in the provenance and veracity of data to support the acceleration of the energy transition. 鈥淲e ingest a multiplicity of disparate data sets, to include satellite, sensor and other publicly available data, to reveal 鈥榞round truth鈥 on the asset being quantified鈥. A turning point came in 2017, when the launch of the European Space Agency鈥檚 Sentinel-5P satellite made it possible to measure methane emissions for the first time.

鈥淐ompanies鈥 reporting is meaningless because they are obfuscating. Independent measuring satellites are really changing the game,鈥 says Antoine Rostand, president and co-founder of environmental intelligence company Kayrros.

Kayrros uses geoanalytics technology to measure greenhouse gases and satellite imagery to calculate wildfire risk 鈥 bringing a new level of clarity to valuing risks and closing the gap between companies鈥 reported data and provable reality. 鈥淥ur job is to use satellite and science to measure that, so that policy makers, financial institutions and operators can change their behavior,鈥 says Rostand.

Sweep, a sustainability data management platform, helps companies track, disclose and act on their carbon emissions. 鈥淕ranular data means actionable data,鈥 says co-founder and chief design officer Raphael G眉ller, who hopes every product and service will eventually come with both a retail price and a carbon cost.

鈥淎I is a tool, not a solution,鈥 G眉ller says. AI shouldn鈥檛 be employed simply for the sake of it, but energy software that can accelerate climate action is a worthwhile use case. By using Sweep, companies can see where they can make the biggest impact on their emissions 鈥 and potentially save money in the process. G眉ller sees comparatively big wins for small companies, such as a US company with approximately 100 employees that swapped planes for trains as a means of transportation and saved $1m in the first year using Sweep.

New data-measuring tools help put a price on carbon emissions, bringing greater transparency. 鈥淎ttributing carbon intensity to your asset, from natural gas to data centers, helps to quantify the 鈥榯rue鈥 value of your asset, making it not only more competitive but also potentially supports it fetching a premium price in the market. We help companies demonstrate this potential enhanced return on investment. Quantifying carbon intensity of assets is simply good business,鈥 says McDivitt. He believes that policymakers now need to use available technology to properly price these externalities of emitters to level the playing field on who ultimately pays for the impact of carbon emissions.

AI in the home

In EU households, heating and hot water account for approximately , according to Tado. Tado uses AI-based algorithms to help households manage their energy use, such as controlling heating through smart thermostats that consider building characteristics, existing systems and weather forecasts. Tado also allows households to operate heat pumps based on user profiles, actual energy demand and energy price information. 鈥淲e bring efficiency into any home. While we believe that heat pumps are the future of sustainable heating, households can already make their heating systems more energy-and cost-efficient, including gas and oil systems.鈥 says Christian Deilmann, Tado鈥檚 co-founder and managing director.

Nicolas Banchet, co-founder of the French start-up Zeplug which operates under the brand name ChargeGuru outside of France, predicts households could cut their EV charging costs from around 鈧1,000 a year to up to zero, by using their vehicle as a giant battery, charging when energy is cheap and selling it back to the grid when energy is more expensive. Zeplug鈥檚 EV charging solution, designed with residents of multi-occupancy buildings in mind, installs the infrastructure at no extra cost to the building, helping them become an important driver of green mobility.

New sources of energy on the rise through technology-driven innovation

It鈥檚 not just about how we measure, track and reduce our emissions through new solutions. Major breakthroughs are also coming, increasing availability of fossil-free sources of energy. Cleantech company Synhelion has developed the world鈥檚 first industrial plant to produce synthetic fuel using the heat of the sun. Synhelion鈥檚 plants concentrate solar radiation to create high-temperature process heat. This heat then drives a thermochemical reactor to produce syngas, which is converted into liquid fuels that can be used for aviation, shipping, or road transportation.

鈥淲e are focusing on transportation sectors that are very difficult to defossilize, and aviation is the prime example. Our primary mission is to disrupt the fossil fuel market by replacing fossil fuels with sustainably produced synthetic fuels. Our key customers include the Lufthansa Group, the biggest kerosene consumer in Europe,鈥 says CEO and co-founder Philipp Furler. 鈥淭oday, sustainable fuel only accounts for 0.2% of aviation, but airlines are urgently demanding it. Demand is not an issue. It鈥檚 about building up supply. I鈥檓 not worried about competition鈥 we need lots of suppliers to meet the demand.鈥

Norwegian company Gen2 Energy aims to produce the cheapest hydrogen in Europe by using the abundant, cheap power generated by the country鈥檚 several hundred hydropower plants.

Green hydrogen, produced through electrolysis of water using renewable energy, is currently around five times as expensive as its grey equivalent. Scaling up, will drive down costs. 鈥淲e need to build very large plants as fast as we can,鈥 says CEO Kjetil B酶hn.

Nuclear innovator NEWCLEO, launched in 2021, develops advanced modular reactors using liquid lead rather than water as the primary coolant. These so-called fast-neutron reactors permit the multi-recycling of spent nuclear fuel, which effectively closes the fuel cycle and eliminates the need for uranium mining. Lead cooling also guarantees ultimate safety, since it does not require a pressurized vessel and averts the risk of chemical explosions even at very high temperature, being chemically inert.

Cleantech that costs as little as its carbon-producing equivalents is essential for reaching net zero. Disruptors in every sphere of the energy sector, from at-home electric car charging to the new generation of nuclear reactors, are demonstrating solutions that are sustainable, scalable and, ultimately, profitable.

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