FlexiDAO, a leading software provider for 24/7 electricity and carbon tracking, supported by EIT InnoEnergy, has announced a $6.5 million investment round led by SET Ventures, with investment from Google and the Microsoft Climate Innovation Fund, and existing investor EIT InnoEnergy. FlexiDAO enables companies and governments to operate on round-the-clock carbon-free energy, by certifying and tracing their electricity and its true carbon content, every hour of every day.
Read the full press release, here.
The investment will drive rapid scaling of the company’s first-of-its-kind software platform worldwide, focused on the US and Europe. Google and Microsoft are not only investing but are also customers of FlexiDAO, already using the technology to support their targets of 100% 24/7 carbon-free electricity by 2030.
More than one-third1 of the world’s largest publicly traded companies now have net-zero targets, and there is increasing pressure on companies for transparent reporting of their emissions to drive decarbonisation. For example, the US Securities and Exchange Commission recently proposed new rules to enhance and standardize climate-related discloses for investors, requiring greater transparency. Yet, companies lack the tools to accurately calculate and reduce the carbon footprint of their electricity. Indeed, few companies know if the “green” electricity they already buy is really carbon-free, every hour and in every location.
Signing up to 100% renewable energy contracts does not guarantee carbon-free energy. Existing schemes used to certify and report the carbon footprint of electricity usage match a company’s energy demand with renewable energy on a global and annual basis. This doesn’t account for the real-world’s geographical constraints and the hourly, or daily, fluctuations where electricity may come from fossil fuels, such as when there is not enough wind or solar power available. This means a company procuring “100% renewable” energy may receive fossil fuel power depending on their location and the time of day, month or year.
FlexiDAO´s software platform uses blockchain technology to certify and trace2 electricity from production to consumption, to enable credible and verifiable claims on its carbon footprint, every hour of the day. This enables customers to understand the origin and carbon footprint of the energy they consume across their operations and take action to procure cleaner electricity and drive decarbonisation of their operations, making 24/7 carbon-free energy a reality.
By measuring the hourly match between energy consumption and the green energy purchased, FlexiDAO customers can verify progress towards their net zero ambitions. Electricity suppliers can increase customer engagement by providing more transparent information on the carbon footprint of their power. Extended across an economy, this transparency and accountability will support the growth of 24/7 carbon-free electricity grids, benefiting everyone.