As 2025 begins, clean energy startups stand at the forefront of the energy transition, driving innovation in the face of pressing climate goals. The remainder of the decade demands rapid technological development to decarbonise hard-to-abate sectors, scale renewable energy and enhance grid resilience.

At NZTC, we support startups that are developing breakthrough solutions. Their grit, determination and adaptability make them central to the clean energy revolution. Through our accelerator programme, we have uncovered and propelled forward a range of innovations, enabling the likes of novel renewable energy conversion solutions and affordable, low-carbon hydrogen production.

As we welcome our 2025 TechX Accelerator cohort, here are some key trends reshaping the energy landscape, which clean energy startups are responding to through the development of transformative solutions.

Artificial intelligence enabling transformation

AI startups are tackling major energy challenges, including grid management, renewables integration and emissions reduction. In 2024, AI’s influence grew significantly, with the global AI energy market projected to reach $7.78 billion by 2025. In fact, AI companies accounted for over half of global venture capital investments in November 2024 alone, reflecting confidence in their transformative potential. For example, French startup Vazy Data, founded in 2023, has developed a platform which leverages AI to support energy companies better integrate renewable sources by analysing performance, demand forecasts and grid efficiency.

At NZTC, we have adapted the eligibility criteria for our own TechX Clean Energy Accelerator, opening up the programme to AI startups developing solutions across our four technology focus areas: CCUS, low-carbon hydrogen, alternative fuels and renewable energy.

Despite challenges such as a shortage of talent and the high energy demands of AI, the trajectory for AI in the energy sector remains promising, with venture funding fuelling innovations.

The future is circular

The circular economy is no longer just a theoretical framework. A recent Bain & Company survey revealed that executives expect a 30% growth in the share of revenue from circular products and services between 2021 and 2030. Startups are demonstrating how waste can be turned into scalable, revenue-generating opportunities while maximising resource efficiency.

Construction waste, once considered an environmental challenge, is now being reimagined as a source of carbon-negative materials. Similarly, wastewater is emerging as a valuable resource for clean energy production. Wastewater Fuels, a UK-based company from our 2023 cohort, is pioneering microbial electrolysis cell technology to produce green hydrogen, effectively linking waste treatment with renewable energy generation. PuriFire Energy, another of our UK alumni companies, employs hydrothermal processes to transform wastewater into green hydrogen and bio-methanol. This approach demonstrates the potential of circular systems to decarbonise hard-to-abate sectors like shipping and chemicals while creating sustainable fuel alternatives.

These startups demonstrate how circular economy principles are shaping the future of energy, offering scalable solutions that support a cost-effective energy transition while addressing critical environmental and resource challenges.

Energy storage underpins renewable growth

Energy storage remains a cornerstone of the energy transition, with startups playing a pivotal role in scaling and diversifying solutions. From long-duration energy storage to innovative battery chemistries, the sector is witnessing a surge in innovation. The global energy storage market is projected to grow by more than 600% by 2033 on 2024 levels, reflecting the urgency to enable greater renewable energy integration and grid resilience.

Startups are advancing technologies such as flow batteries, which promise scalable, long-duration energy storage with minimal degradation. Other companies are focusing on solid-state batteries that offer higher energy density and improved safety, paving the way for wider adoption in both stationary and mobile applications. For example US startup Revterra which won ADNOC’s 2023 Decarbonisation Technology Challenge, delivered in partnership with NZTC, is developing a proprietary kinetic stabiliser that provides immediate, scalable solutions for grid stabilisation, enhanced resilience and reduced reliance on costly power electronics.

Decentralised energy systems and localised storage solutions

While large-scale storage solutions are vital for grid applications and industrial electrification, there is also a growing shift towards decentralised energy systems. Microgrids with local power generation and storage offer a promising alternative, empowering communities and industries to operate more independently from the central grid. Swiss startup INERGIO is supporting this movement through its novel system design that combines the benefits of fuel cells and diesel generators for sustainable off-grid and backup power solutions.

The rise of decentralised energy solutions complements the need for large-scale energy storage by enabling more flexible, localised energy resilience, while also contributing to decarbonisation goals.

The energy transition is facing headwinds. Major energy companies are adopting a more cautious approach to clean energy investments, and many are focusing instead on maximising value from oil and gas. Additionally, the possibility of a less engaged US government under the new presidency may slow the pace of clean energy technology innovation.

To navigate these challenges, it is crucial to support the progress of clean energy startups. Sustained investment will ensure a robust pipeline of innovation, ready to accelerate the transition when conditions shift once more. At NZTC, our commitment to nurturing pioneering companies ensures that the energy sector continues to accelerate toward a sustainable future.

For more on the trends shaping the energy sector, stay tuned for updates from our 2025 TechX Accelerator cohort.

Explore