In this Research Note, we examine Nostromo, the Israeli public company developing Behind-the-Meter thermal energy storage solutions for commercial buildings.
Founded in 2017, Nostromo Energy is a developer of sustainable energy storage and energy demand management solutions for commercial buildings that use chiller-based air conditioning.
The system is based on proprietary IceBrick encapsulated ice cells that allow modular installation. The modular structure of the cells is economical in space and volume, which enables swift installation on roofs, in basements, or along walls.
The system "charges” cold energy during hours when electricity demand is low or there is a surplus of renewable energy, and "discharges" the energy during peak consumption hours, relieving the grid from the high air conditioning electricity demands.
Nostromo completed an IPO on the Tel Aviv Stock Exchange in June 2021. In Nov 2021, the business subsequently closed a post-IPO investment of $15.5 million which was intended to be deployed to expand its presence on the US market, as well as to expand its R&D, software, engineering, project management, production, Q&A, regulatory and US sales and marketing organisation.
Nostromo's proprietary technology has gained significant traction this year. In June 2023, Nostromo announced the first deployment in the United States at the Beverly Hilton hotel to install a 1.4 MWh system (serving both the Hilton and the adjacent Waldorf Astoria Beverly Hills).
Nostromo also signed an agreement with Sandstone Properties for the construction of a 900 kWh system in a Los Angeles office building and a memorandum of understanding with Westfield, one of the biggest owners and operators of large retail centers in the U.S, to install systems at its sites. A demonstration project has also been installed at a medical device manufacturer’s rooftop in Jerusalem, Israel.
The company has ended the R&D stage of the IceBrick system, and is at the beginning of the commercialization stage. At the same time, it continues R&D activities involving the next generation of its products. Nostromo’s investments in its assets and R&D have not yet generated revenues.
In June 2023, the US Department of Energy (DOE) Loan Programs Office invited Nostromo into due diligence and terms sheet negotiations for a loan worth up to US$176 million.
The water-based behind-the-meter (BTM) energy storage system is an attractive alternative to lithium-ion battery-based energy storage, with limited competition in the C&I segment. Nostromo’s technology has the potential to cut both the environmental and financial cost of air conditioning for large commercial buildings.
This article was written by Daphne Tomlinson, Senior Research Associate at Memoori.