How Sarthak approaches capital access for climate with Neufin | @IITMadrasOfficial x SusVentures

Summary

Satak, a founding team member at Newan, shares his entrepreneurial journey, from his college experiences to founding a clean-tech startup. He highlights the importance of practical experience, diverse teams, and early exposure to innovation in building a successful business. At Newan, Satak focuses on enabling capital flow into renewable technologies like solar, wind, and carbon removal. He discusses various carbon removal technologies, the challenges in securing funding for deep-tech ventures, and the supply chain hurdles in waste-to-energy projects. Satak also touches on government support for waste management and clean energy, providing insights for aspiring entrepreneurs.

Takeaways

• 😀 Satak, an entrepreneur and founding member of Newan, shares his journey of transitioning from an engineering student to a clean tech entrepreneur.
• 😀 He emphasizes that although he didn't gain much technical knowledge from his engineering courses, co-curricular activities like technical clubs were key to shaping his skills and mindset.
• 😀 Satak’s experience in the Formula racing club at college helped him understand the importance of teamwork, innovation, and business planning, which led him to start his entrepreneurial journey.
• 😀 Participating in student competitions and hackathons provided Satak with exposure to new ideas and helped build confidence to start his own business.
• 😀 Team-building is crucial for startup success, and Satak advises aspiring entrepreneurs to work with diverse teams, including non-technical members, to address both technical and commercial challenges.
• 😀 Higher education and work experience in an industry can provide an advantage for entrepreneurs, as it helps identify real-world problems that need solving, but it's not essential for success.
• 😀 Clean tech innovations like carbon dioxide removal (CDR) and bioenergy solutions are critical for addressing climate change, and Satak’s company is actively involved in enabling these technologies.
• 😀 Biochar is one of the low-cost CDR technologies, using agricultural waste and pyrolysis to store carbon in soil or mix with concrete, which sequesters carbon long-term.
• 😀 Direct air capture (DAC) technologies are more expensive ($300-$600 per ton of CO2) but offer a scalable solution for removing carbon directly from the atmosphere.
• 😀 One of the major challenges in clean tech, especially in waste-to-energy models, is the supply chain, including the sourcing of feedstock like agricultural waste. Centralized collection of waste is a potential solution.
• 😀 Government policies, such as fines for stubble burning, incentivize farmers to collect and sell biomass, creating opportunities for bioenergy startups to scale their operations.

Q & A

What was Sak's educational background, and how did it influence his entrepreneurial journey?

Sak studied Electronics and Instrumentation engineering at BITS. While he found the formal curriculum less impactful, his involvement in co-curricular activities, especially technical clubs like formula racing, gave him the hands-on experience and exposure to entrepreneurship. This experience laid the foundation for his future ventures.

How did Sak’s early exposure to student clubs influence his decision to start a company?

Sak's involvement in technical clubs, particularly in projects like manufacturing formula racing cars, exposed him to the dynamics of running a company. These clubs operated like small businesses, requiring team-building, fundraising, and product development. This experience inspired him to think about starting his own company during college.

What were the challenges Sak faced while raising capital for his startup, and how did they impact the company's growth?

Sak faced significant challenges in raising capital, particularly in the deep tech sector, where scaling a proven concept often requires substantial investment. These capital access issues led him to create Newan, a company focused on enabling capital flow into clean technologies, addressing the funding gap in renewable energy solutions.

What advice did Sak give to aspiring entrepreneurs about team building?

Sak emphasized the importance of working with a diverse team, including individuals with non-technical backgrounds. He stressed that commercialization, alongside the technical aspects of a product, is crucial for the success and scaling of a business. Diverse team experiences help in balancing innovation with real-world application.

How does Newan contribute to the renewable energy sector?

Newan facilitates the adoption of renewable energy by enabling capital access and supporting clean technology procurement. The company helps businesses and corporations navigate the renewable energy procurement process, and it focuses on scaling technologies in solar, wind, and carbon dioxide removal sectors.

What are some of the carbon removal technologies discussed by Sak, and how do they work?

Sak mentioned two key carbon removal technologies: biochar and direct air capture. Biochar involves converting agricultural waste into stable carbon, which is then stored in soils or mixed with concrete for long-term CO2 sequestration. Direct air capture, on the other hand, uses machinery to capture CO2 directly from the air, though it is more expensive and has scalability challenges.

What are the cost differences between biochar and direct air capture technologies?

Biochar is a low-cost carbon removal solution, typically costing around $80 to $100 per ton of CO2 removed. In contrast, direct air capture is much more expensive, with costs ranging from $300 to $600 per ton of CO2 removed, due to the advanced machinery and infrastructure required.

What supply chain challenges are associated with waste-to-energy projects?

In waste-to-energy projects, supply chain issues often arise from competition for feedstock. For example, agricultural waste like stubble can be used in various applications, leading to price inflation. Additionally, decentralized collection models for waste are expensive and less efficient, which makes centralized collection a more viable solution for scaling such projects.

How can centralized waste collection improve the economics of renewable energy projects?

Centralized waste collection makes waste-to-energy projects more cost-effective by consolidating feedstock in a single location. Instead of collecting waste from individual sources, aggregating it at industrial sites like rice mills or sugar refineries reduces costs and ensures a steady supply of biomass, making the project more scalable and economically viable.

Are there government policies or incentives supporting waste management and renewable energy projects?

Yes, there are some government policies that support renewable energy and waste management, such as fines for stubble burning in certain Indian states. However, centralized waste collection systems are not yet strongly incentivized. Municipalities and industries, however, are open to collaborations with startups, especially if they provide a viable solution for waste management, as seen with industries that generate large amounts of waste like coconut or timber processing.