Issue #29: Earth's Battery Revolution

Sage Geosystems: Turning the Earth into a Giant Battery

In the sun-baked expanse of Starr County, Texas, a startup is quite literally shaking up the renewable energy landscape. Sage Geosystems, led by former oil and gas veterans, is pioneering a novel approach to geothermal energy that could revolutionize how we store and generate clean power.

Key Points:

• Developing "geopressured geothermal systems" that act as both energy generators and massive batteries

• Building first commercial-scale 3MW facility near San Antonio, partnering with San Miguel Electric Cooperative Inc.

• Aims to provide continuous power at around 10 cents per kilowatt-hour

• Plans to start drilling in September and begin operations in December

Sage's approach is ingeniously simple yet profoundly impactful: use deep wells as giant batteries by injecting water under pressure and releasing it to generate electricity when needed. It's like having a geyser on demand, but one that can power hundreds of homes.

"It was literally vibrating the ground," recalls CEO Cindy Taff, describing the moment she realized the potential of their technology. This visceral experience underscores the raw power Sage is tapping into.

The implications are enormous. By offering a steady, clean power source that can complement intermittent renewables like solar and wind, Sage could help solve one of the biggest challenges in the transition to clean energy. Their technology could be particularly game-changing for energy-intensive operations like data centers, which require constant, reliable power.

But Sage's ambitions don't stop at power generation. The company sees its wells as a way to store excess renewable energy, effectively turning the Earth into a massive battery. This dual functionality could be a key piece in the puzzle of a 100% renewable energy grid.

As we grapple with the urgent need to decarbonize our energy systems, the question now is: Could Sage's technology be the breakthrough we've been waiting for? And how might this reshape our approach to renewable energy infrastructure?

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Vocabulary

💡Each edition we’ll bring you a new “Startup word” to help bolster your vocabulary and understanding of the subject!

Geothermal: adjective /ˌdʒiː.əʊˈθɜː.məl/

Definition: Relating to or produced by the internal heat of the earth.

Why It Matters: In the startup world, geothermal energy is becoming increasingly important as companies seek sustainable and reliable energy sources. It represents a form of renewable energy that isn't dependent on weather conditions, unlike solar or wind power.

In Action: Sage Geosystems is harnessing geothermal energy in an innovative way, using deep wells not only to generate electricity from the earth's heat but also as a method of energy storage. This application of geothermal technology could potentially revolutionize the renewable energy sector.

Quick Bites

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Startup Shutdown Of The Day :(

Tally: When Debt Management Meets Its Own Financial Hurdle

San Francisco-based fintech startup Tally, which aimed to help consumers manage and pay off credit card debt, has announced its shutdown after nearly nine years of operation.

Key Points:

• Founded in 2015, Tally raised a total of $172 million in funding

• Last funding round was an $80 million Series D in October 2022, valuing the company at $855 million

• CEO Jason Brown cited inability to secure necessary funding as the reason for shutdown

• Closure affects 183 employees

Tally's demise highlights the challenges facing fintech startups in the current economic climate. Despite its innovative approach to debt management and previous success in fundraising, the company couldn't secure the capital needed to continue operations.

The startup's journey serves as a cautionary tale about the volatility of the fintech sector and the importance of sustainable business models. It underscores how even well-funded startups with seemingly solid value propositions can struggle when investor sentiment shifts.

As we reflect on Tally's closure, it's worth considering: How can fintech startups build more resilient business models in a fluctuating funding environment? Is there a way to balance rapid growth with financial sustainability in the debt management space?