Minnesota Energy Alley launches, first cohort includes local startups Carba and Aza Power Systems

Clean Energy Economy Minnesota in partnership with Grid Catalyst announced the launch of a new initiative — Minnesota Energy Alley — which will support a select group of startups focusing on clean energy.

CEEM hired clean-energy startup accelerator Grid Catalyst to manage this initiative, which includes network-building and resources for early-stage innovators and demonstration opportunities for later-stage startups. The initiative is funded by a $3 million grant from the Minnesota Department of Commerce.

"It is exciting to see CEEM and Grid Catalyst launch Energy Alley and fund six startups that bring innovation to clean energy actions in Minnesota," Minnesota Commerce Commissioner Grace Arnold said in an announcement of the initiative. "These are the types of investments that help support Minnesota's Climate Action Framework and that will strengthen Minnesota now and as we transition to a clean energy future."

For its launch, the initiative has chosen six startups, two of which are based in Minnesota, to provide seed funding for its first demonstration cohort. In total, Minnesota Energy Alley will provide $850,000 in seed funding for 10 projects facilitated by the six startups. Both Minnesota-based startups were launched through researchers from the University of Minnesota — Carba and Aza Power Systems.

Carba is developing technology for permanent carbon removal and converts plant-waste carbon dioxide into a solid charcoal-like substance that can be sequestered underground for thousands of years. Carba won the MN Cup's grand prize and was a recipient of Minne Inno's Fire Awards, both in 2023. The startup's goal is to remove a billion tons of carbon dioxide from the air by 2035. Aza Power Systems creates carbon-free combustion clean engines powered by ammonia.

"We believe our process can help the city advance its climate action goals, and we are excited to begin exploring what's possible with their team," Carba CEO and co-founder Andrew Jones said in the announcement. "As a homegrown Minnesota business, we are grateful for the program's support as we scale our technology and expand our impact.”

Startups selected for the cohort underwent an application process that started in June 2023. The initiative sought late-stage businesses with prototypes that could be implemented over 12 months. Startups did not have to be based in Minnesota to apply for the cohort but had to be able to demonstrate them in the state.

Each cohort recipient received a $5,000 stipend for participation in the 2024 cycle.

The 2024 demonstration cohort:

The 2024 demonstration cohort has been matched with energy partners around the state, including American Engineering Testing Inc., the Center for Microgrid Research at the University of St. Thomas, Minnesota Power and the City of Saint Paul. One of the demonstration projects is in the early stages of project scoping, and that partnership will be announced later this year.