Please welcome Anode Labs’ React Network, the energy internet of the future
Meet Anode Labs’ React Network, the latest addition to Lerer Hippeau’s portfolio.
HQ: Austin, TX
Founders: Jason Badeaux, Dallas Griffin, Evan Caron
The problem: Though billions of dollars are being invested in renewable energy including solar, wind, and nuclear, these sources are relatively unreliable at present because they don’t generate power in an always-on fashion. Battery storage technology — which would help us sustain our cars and homes for longer periods of time without consistent wind and sun — is in development, but progress is slow. As this infrastructure gets built, individuals are using solar to generate their own energy for personal use, but they’re not redistributing extra power back to the grid. Our current grid needs to modernize and become more flexible to prevent power outages from the effects of climate change. Moreover, as demand grows for home batteries and the electrification of devices that currently rely on fossil fuels and natural gas, our grid needs to modernize and adapt to prevent power outages caused by climate change. In short, the U.S. needs a more flexible energy solution.
Anode Labs’ React Network’s solution: Anode Labs is aiming to modernize the national power grid by creating a community network connecting energy storage assets to markets that value them. Instead of an outdated and dirty fossil fuel power plant set in one location, Anode is building The React Network, a virtual power plant made up of a network of distributed energy resources working together to support a power grid. React will allow participants to connect their home batteries to the company’s Web3 network in order to be rewarded for the relative contribution of their energy assets.
React’s platform is built to create a layer of flexibility that blankets our power grids, providing the necessary support to enable further decarbonization of the electric grid. The community-connected ecosystem will allow people with home batteries, and, in the future, EV chargers, to connect their devices to the React network to earn rewards and React’s token, KWH. Once there are enough participants in a region, operations of the Anode Network can begin and power will be supplied. Revenue made by the Network will be used to buy-and-burn tokens, returning value to stakeholders. By creating a community-owned energy internet, Anode Labs’ efforts will reduce reliance on fossil fuels and decentralize power sources.
Origin story: Anode’s team is committed to realizing the future of energy. All three of the team’s co-founders have worked in power grid storage, energy utility infrastructure, and energy investing. With the team’s deep knowledge of how energy is deployed, and how blockchain can be used to manage energy data and carbon accounting, we believe Anode Labs has what it takes to build the fabric that will underpin the green energy transition
Why we’re betting on it: The electrification-of-everything is leading to increased energy demand that our power grid will need to meet and exceed, which will require major modernization of our current methods. We believe Anode Labs has a blueprint for a decentralized and decarbonized energy network that not only increases flexibility but also incentivizes and rewards participants, paving the way for green energy mass adoption.
Grid flexibility is a massive high-growth market with wide open possibilities for innovation. Virtual power plants are still in the early innings and a winner has not emerged for residential / small load energy aggregation. Because of its use of Web3 technology, Anode Labs has an advantage over competitors that are constrained due to the economics of their centralized, corporate business model. Plus, we appreciate that while many blockchain applications are directly damaging to the environment, Anode is taking a completely opposite approach to contribute positively.
Our take: Decarbonizing the grid is going to take many stakeholders, which Anode recognizes. The company is bringing individuals in as power suppliers to activate the collective power of their distributed energy resources. We believe it makes sense to incorporate crypto and blockchain technology to incentivize and reward those participants as it only enhances the community aspects of the network. A vision like this takes ambition and bold thinking and we couldn’t be more excited to support Anode Labs in their mission.
Further reading: “Web3 startup eyes power management” via Axios; “Anode Labs raises $4.2 million to build web3 energy grid” via The Block
