3E Nano: The Future of Energy-Efficient Windows
3E Nano is a Toronto-based solar and energy windows coating manufacturer designing a novel film to increase the thermal insulation (R-Value) and decrease the emissivity of light (Low-E), making for more energy-efficient buildings.
Introduction
Global warming and climate change are clear and present dangers to our planet, and with rising temperatures, buildings increasingly rely on energy-hungry HVAC (heating, ventilation, and air conditioning) systems to maintain livable environments for those inside. However, building operations from heating and cooling account for roughly 28% of all GHG emissions from the built environment, of which 30–38% comes from heating and cooling for commercial and residential respectively [1]. While there have been tailwinds in building codes to improve energy efficiency, the need for better windows technologies is pertinent.
Even with more efficient energy production systems and building architectures, windows remain the weak point, as 80% of the market, including much older buildings and homes, use low-efficiency windows with R-Values (the measurement of the thermal insulation for windows) of R2 or less. Even with the market trending towards higher consumption low-E coating double-paned windows, the R-Value only increases to R4, and higher-insulating windows like triple-paned are yet to take off [2].
New technologies have been long sought after, including dynamic shading windows or “smart glass” and several initiatives by state and federal organizations to improve on the current standard, most solutions are expensive and solve only one pain point.
At Vectors Capital, we believe there is a clear need to decarbonize the buildings industry through more efficient building operations to support new development and deep energy retrofits, to reduce global GHG emissions at scale. That’s why we are excited to announce our investment in 3E Nano’s Seed round alongside wonderful investors including Energy Foundry, Creative Ventures, MUUS Climate Partners, ACT Venture Partners, New Climate Ventures, and VertueLab.
Why 3E Nano?
3E Nano manufactures high R-Value solutions to make double-paned glass as effectively triple- or quadruple-paned glass without increasing cost. The company has developed a novel, simple method for sputtering a low-E coating onto a polymer instead of glass, making it lightweight, flexible, and transparent, reflecting heat from the infrared spectrum back into the building while allowing visible light to pass through. In short, by keeping heat in (or out), building operators can spend less on heating or cooling, increasing the building’s overall energy efficiency.
3E Nano is able to apply its technologies across all climate zones by specifically controlling for the qualities of each roll for specific customers. Compared to traditional window coatings, 3E Nano’s technology only requires three layers with conventional materials deposited at low temperatures, compared to 11–20 layers of several materials deposited at a high temperature for standard high-performance coatings in the market today. Additionally, 3E Nano’s nano-thin polymer coatings are not only great for architectural glass on buildings but also for several other applications where de-fogging and glare mitigation are necessary, including glazings for the aerospace and automotive industries.
Lastly, the regulatory landscape for energy-efficient buildings will enable 3E Nano’s technology to enter the market quickly. New regulations like New York’s Local Law 97 aim to make buildings more sustainable in order to reduce emissions from the city by 80% before 2050 [3]. In doing so, building owners who emit more than their limit are subject to a $268/metric ton of carbon over the cap starting in 2024, incentivizing owners to act now [4].
3E Nano is led by a team of veterans with deep expertise and decades of experience in the polymer industry and technology management. We are excited to work with Steve Ferrero, Gordon Jekubik, Dan Shea, and Dr. Nazir Kherani, who led the company spin-out from the University of Toronto.
3E Nano’s Pledge
At Vectors Capital, our portfolio companies certify their commitments to decarbonization by pledging their emissions drawdown or displacement from the work of their technology and organization. We are proud to support 3E Nano’s emissions as they strive to green the built environment.
3E Nano is a promising company with a unique and innovative product that addresses a real need in the market for more energy-efficient windows. With its cost-effective and easy-to-manufacture coating technology, 3E Nano has the potential to disrupt the architectural windows market and many more. We are beyond excited to be working with Steve, Dr. Kherani, the rest of the 3E Nano team, and Co-Investors.
Sources:
[1] “New Buildings Institute — The Embodied Carbon Conundrum, Solving for All Emission Sources from the Built Environment.” New Buildings Institute, 2021, https://newbuildings.org/resource/the-embodied-carbon-conundrum-solving-for-all-emission-sources-from-the-built-environment/.
[2] U.S. Department of Energy. “Research and Development Opportunities Report: Windows.” Energy.gov, 2021, https://www.energy.gov/eere/buildings/articles/research-and-development-opportunities-report-windows.
[3] “Local Law 97.” Sustainable Buildings, City of New York, 2021, https://www.nyc.gov/site/sustainablebuildings/ll97/local-law-97.page#:~:text=Buildings account for approximately two,reducing emissions in the nation.
[4] “How Much Will My Building Be Charged for Emissions Under Local Law 97?” NY Engineers, 2 Mar. 2021, https://www.ny-engineers.com/blog/how-much-will-my-building-be-charged-for-emissions-under-local-law-97.
