Israel is home to more than 230 EnergyTech companies, according to a new report by Start-up Nation Central and Ignite the Spark.
The team released its 2023 Israeli EnergyTech sector map on Monday, which includes information about 130 of those 230 companies, making these companies more accessible to potential tech partners or investors.
“Start-Up Nation Central sees EnergyTech in particular and ClimateTech in general as sectors experiencing the most significant growth potential in the Israeli ecosystem,” said Start-Up Nation Central’s head of the Climate Tech Sector, Yael Weisz Zilberman. “We are advancing the Israeli energy sector and its technologies as an important and viable solution to the world energy challenge and a solutions hub for reducing global carbon emissions.”
The energy sector is not only growing fast in Israel but worldwide
According to a 2021 market research report by Facts and Factors, the global clean energy technologies market size and share revenue are expected to reach as much as $423.7 billion by 2026.
“The remarkable growth of the EnergyTech ecosystem demonstrates its dual nature: not only does it tackle the toughest sectors to decarbonize, but it also embraces a rapidly expanding business landscape,” said Ignite the Spark CEO Shon Dana.
Hila Lipman, head of Cleantech & Smart Infrastructure at the Israel Export Institute, said her organization believes the Israeli EnergyTech sector’s solutions will be “integral to accelerating the transition to a sustainable and clean energy future.”
Around 70% of global greenhouse gas (GHG) emissions worldwide are attributed to the energy sector, according to Start-Up Nation Central. In Israel, that number is around 40%. Therefore, new technology innovations for producing, distributing and storing energy more efficiently are critical.
Other areas of EnergyTech innovation include waste-to-energy, carbon capture and hydrogen.
According to the US Department of Energy, hydrogen fuel cells can be up to 60% energy efficient versus around 25% for fossil fuels. The department said that the energy in 1 kilogram of hydrogen gas is about the same as the energy in 2.8 kilograms of standard gasoline when discussing using hydrogen as an alternative fuel source.
The Israeli map highlighted several start-ups developing solutions to produce, store, and transport hydrogen more efficiently and cost-effectively.
However, experts have cautioned that using hydrogen effectively as fuel in any mass capacity could take over a quarter century.
In a Monday conversation at the Jerusalem Post Annual Conference in New York, Delek USA Chairman Uzi Yemin stressed that “we are in the early stages” with these technologies despite the “advanced ideas coming out.
“Let’s not get excited,” he said.
Israel has been lagging behind other Western countries in meeting its efficiency targets. While the Environmental Protection Ministry and NGO advocates, the president and the comptroller are working on legislative and other efforts to reduce GHG emissions, climate tech is considered an area where Israel can play a critical role.
Two years ago, at the United Nations Climate Change Conference, then prime minister Naftali Bennett put developing climate technology among Israel’s top priorities. According to Start-Up Nation Finder, the country has around 850 start-ups addressing climate change, including about 100 that received venture funding or grants in the last two years.
