Why we invested in
PROTONAS.

Protonas is directly tackling the urgent need for reliable, long-duration power backup systems, a challenge that has become increasingly important as the world shifts towards renewable energy sources. While renewable energy sources like wind and solar are essential for a sustainable future, they are inherently intermittent, which can lead to instability in power supply. Furthermore, severe weather events, such as hurricanes in the USA, can disrupt traditional power grids for extended periods, leading to prolonged power outages. Protonas’s hydrogen fuel cells provide a solution to these challenges by offering efficient and clean electricity with the capability for long-term storage. This makes their technology ideal for stabilizing power grids during peak demand periods and ensuring a consistent power supply during extreme weather events.

Protonas has identified substantial market opportunities in both the USA and India, two regions with growing demand for reliable backup power solutions. In the USA, the increasing frequency of severe weather events and the rapid adoption of renewable energy have driven a surge in demand for products like the Tesla Powerwall. Protonas is poised to capture a significant share of this market by initially focusing on the sub-2kW power backup segment, which is expected to reach a market value of $3 billion by 2030. Furthermore, Protonas's development of a 12kW liquid-cooled stack positions them to enter the lucrative telecom tower backup power market, also projected to be a $3 billion opportunity. In India, Protonas is targeting the burgeoning market for hydrogen fuel cell systems in three-wheelers and lightweight commercial vehicles, which is expected to reach a market value of $1 billion by 2030. This dual-market strategy not only diversifies Protonas’s revenue streams but also positions them as a key player in the global energy transition.

One of the major barriers to the widespread adoption of hydrogen fuel cells has been their high cost. Protonas is at the forefront of overcoming this challenge by developing innovative strategies to significantly reduce costs. They are currently working on both a 2kW closed cathode air-cooled system and a 12kW liquid-cooled system, with a focus on leveraging advancements in catalyst manufacturing and bipolar plate design. Protonas aims to achieve a production cost of $1 per watt, a figure well below the current industry average. This cost reduction is crucial for making fuel cell technology more accessible and competitive, especially in high-demand applications such as grid stabilization and backup power systems. Additionally, Protonas's use of advanced design methodologies and strategic partnerships, such as their collaboration with Sigma Pi in Chennai for R&D, underscores their commitment to driving innovation while maintaining cost efficiency. These efforts not only make Protonas's products more affordable but also enhance their scalability and suitability for a wide range of applications across different markets.