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Pioneering engineering firm Qnergy targets new ESG markets as corporations prioritise methane mitigation in fight against climate emergency

Qnergy, the world’s leading manufacturer of clean, reliable, electric power based on linear Stirling engines – proven to reduce methane emissions by up to 98% in natural gas operations – today announced the appointment of Kevin Pang as VP, Business Development. Kevin is a scientist, entrepreneur and technologist with a Ph.D from Harvard and his appointment will accelerate plans for expansion into new distributed methane markets such as dairy and industrial catering.

The company was founded in 2009 as a team of engineers solved a 200-year-old engineering problem – how to manufacture cost-effective power generators based on the Stirling engine and apply it commercially.

In the last four years since initial commercialization, Qnergy has grown exponentially by supplying its generators to the natural gas industry; Kevin’s hire will now help the business identify new markets and expand its offering. This follows significant interest in Qnergy’s systems by players in the landfill and farm biodigester spaces.

Qnergy has a proven solution employed by over 80 clients with hundreds of deployments in the oil and gas industry to help eliminate methane emissions. Energy leader TotalEnergies already announced the 98% methane reduction benefits and low abatement cost of Qnergy’s gas well emissions solution.

Methane containing biogas is the next big challenge to overcome: it is a byproduct of human activities including farming, agriculture, food waste and water waste. Qnergy provides the platform by which methane generated from distributed sources like businesses, homes, industrial parks, landfills, wastewater treatment facilities and farms, can be effectively converted into useful power and energy.

With more energy companies – and their investors – now seeking greater proactivity in reducing methane emissions, this is a growth market.

Qnergy CEO Ory Zik said:

“Immediate conversion of distributed methane to useful energy remains the single most effective way to net zero and address the climate emergency. Methane is now well-known for being a climate change catalyst, compounding the damage caused by carbon emissions by a factor of 80 over the next 20 years. The good news is that the private sector is recognizing the value of distributed methane- practical technical solutions – such as ours – now exist to remove emissions in the first place.”

Qnergy VP BD Kevin Pang said:

“This business has solved the 200-year-old Stirling engineering challenge, and is making great strides. Building on that success, we are following the distributed methane path into other industries also challenged by waste generated spaces such as farms, landfills, food waste, and other potential markets.”

“With large, socially responsible corporations such as Nestlé, Lactalis, Danone, Fonterra, Dairy Farmers of America and Arla Foods all looking to reduce emissions across their supply chains, we see there is huge demand for practical, reliable and sustainable methane abatement in food production and waste management.”

“Qnergy’s initial biogas trials show the potential to help our clients and partners reduce environmental damage, create a reliable, sustainable and low-cost power source from waste methane – and reduce emissions by replacing diesel engines.”

Beyond the dairy sector, Qnergy sees potential growth in many other markets; any industry that requires reliable remote power and produces ongoing quantities of methane – dairy farms, large industrial kitchens such as universities, industrial parks, hotels, military bases or prisons, garbage landfills, wastewater and more.”

About Qnergy

Qnergy (q-ner-gy) was founded to provide reliable power using a wide range of heat sources including conventional and alternative fuels. Our power solutions help customers improve their resilience to blackouts, lower costs and reduce emissions. We are best known for our ability to provide energy in remote locations and harsh conditions where others cannot operate. Our engine design was recognized by NASA as the most reliable heat engine technology ‘in history’.

Our generators are based on a proprietary Free Piston Stirling Engine technology. These engines are enclosed systems that require no lubrication, oil changes or repair, delivering many years of uninterrupted operation. Over the past two years, hundreds of our systems have endured multiple hurricanes without a single power interruption.

Our methane mitigation program leverages our ability to work reliably with both raw natural gas and biogas to convert normally vented methane into useful energy. Two of the largest sources of methane emission are the oil and gas supply chain and organic waste. Our solutions address both. In oil and gas we use our generators to replace methane emissions from pneumatic devices with compressed air. We are in the process of deploying hundreds of these systems. In addition, we are testing biogas systems that turn biomethane into electricity and heat.

https://www.youtube.com/watch?v=OadiysJS3f0

TotalEnergies and Qnergy remove 98% of vented methane emissions

Challenge:
Across many of the world’s natural gas production fields, gas pneumatic devices used for
process control and chemical injection vent methane directly into the air. TotalEnergies
lowered the methane emissions intensity of its operated gas facilities to below 0.1% in 2020,
but to achieve a further objective of 20% reduction of absolute methane emissions from
operated oil and gas assets in 2025 compared to 2020, it targeted venting at its Barnett gas
field in Texas.

Solution:
In March 2021, TotalEnergies began a 30-day trial of Qnergy’s CAP3 compressed air
pneumatics technology. The pilot study sought to quantify and characterize the pneumatic
gas and electric power requirements of a typical 4-5 well pad on the Barnett field. It tested
the feasibility of converting from natural gas to compressed air powered instrumentation, thus
eliminating methane release during the process.

Result:
Up to 98% of methane emissions were eliminated. Using remote monitoring to assess
performance, the CAP3 air system logged 42,515 ft3 of mitigated emissions. The solution
proved simple to install and operate, while also demonstrating reliability. The on-site test with
TotalEnergies, an OGCI member company, also supports the rapid deployment and scaling of
Qnergy, a Climate Investments’ portfolio company, and similar growth-stage companies.

Expanding impact:
Gas operated instruments will not be used on any new developments on the Barnett field, or
across the TotalEnergies asset portfolio.
The company is deploying 100 Qnergy CAP3 units on its Barnett field through 2021 and 2022,
with potential for a further 300 by the end of 2024. Once fully deployed, this replacement of
gas pneumatics would reduce methane venting emissions by approximately 7,000 tonnes a
year.

To learn more, please visit the following link: https://darcypartners.com/research/case-study-total-energies-and-qnergy-remove-98-of-vented-methane-emissions#comment-1018

Qnergy closes $16 million series C funding round, led by OGCI Climate investments

Latest funding round will allow Qnergy to accelerate the deployment of its methane abatement products

OGDEN, Utah, November 16, 2021 – Qnergy, the world’s leading manufacturer of clean, reliable, electric power based on Stirling engines, today announced the closing of a $16 million Series C funding round led by OGCI Climate Investments (“CI”) with participation from Tene Capital (“Tene”).

Qnergy will use the increased investment to fund cost saving engineering and manufacturing capabilities, and to further accelerate the deployment of its products. The company’s Compressed Air Pneumatics (CAP) product, CAP3, helps customers eliminate methane emissions by converting the methane into a useable energy source.

“We are grateful for the support, vote of confidence and mostly the opportunity to continue working with the OGCI Climate Investments team in pursuing our joint mission of eliminating methane emissions from the natural gas supply chain” said Dr. Ory Zik, Qnergy’s CEO. “The funding will help us accelerate deployment across the natural gas sector in North America and globally, while expanding to other markets.”

Qnergy’s CAP3 product has been deployed extensively across the North American gas market, replacing highly emitting pneumatic devices powered by pressurized natural gas. Data from TotalEnergies, an OGCI member, that is now in the process of deploying hundreds of those systems, has shown that up to 98% of the methane emissions could be eliminated using Qnergy’s product. Beyond the energy sector, Qnergy has developed a biogas system to turn methane from food waste and livestock waste into electricity and useful heat.

Pratima Rangarajan, CEO of OGCI Climate Investments, said: “Qnergy’s technology has been proven to eliminate methane emissions in real-world conditions. We are delighted to be providing capital and the market development support they need to accelerate their business and deliver even more impact.”

Two senior OGCI Climate Investment representatives – Avi Sahi, Chief Commercialization Officer, and Jonathan Yellen, Investment Director – will join the board of Qnergy to provide further strategic counsel and commercialization support through OGCI’s unique energy ecosystem network.

TotalEnergies and Qnergy deploy an innovative technology to reduce methane emissions on the Barnett field

Paris, 11 October 2021 – As part of its effort for continuous progress and sustainable
development, TotalEnergies announces deployment of an innovative technology developed by
Qnergy, to significantly reduce methane emissions related to its operations on the Barnett gas
field in the United States.

CAP3 Nano


An innovative and efficient technology

The solution proposed by Qnergy uses a technology allowing to convert methane powered
instrumentation to compressed air powered instrumentation, thus eliminating the release of
methane to the atmosphere during the process.


During a successful pilot project at the Barnett site in March 2021, Qnergy’s technology proved
to be reliable, simple to install and easy to operate, allowing it to eliminate up to 98% of the
methane venting emissions related to instruments using natural gas.


Following successful additional tests, TotalEnergies has decided to install this new
technology by deploying 100 units on the Barnett field in 2021 and 2022. The
deployment of 300 additional units throughout the field will reduce methane venting
emissions from pneumatic devices by approximately 7,000 tons a year by end 2024.


From now on, new developments on the Barnett field and across the Company will be designed
without instruments using natural gas.


To fully play its role in the energy transition, notably as a substitute for coal, the integrated
natural gas chain must limit its methane emissions as much as possible. We have successfully
demonstrated the effectiveness of Qnergy’s technology on the Barnett field. By immediately
deploying this technology on our US onshore operations, we are actively demonstrating our
commitment to reducing our own methane emissions by 20% between 2020 and 2025,”
said
Carole Le Gall, Senior Vice President Sustainability & Climate at TotalEnergies.


Ory Zik, CEO of Qnergy, declared:
“We are thrilled to support TotalEnergies’ global effort to
eliminate methane emissions from the natural gas supply chain. This 100-unit deployment is
one of the largest projects in the pneumatic devices sector. It marks the beginning of a new
scale of emission mitigation across this sector.”


Reducing methane emissions is a priority for TotalEnergies


TotalEnergies’ performance in reducing methane emissions is one of the best in the industry.
The company has cut its emissions by close to 50% since 2010, through actions focused on
different sources – such as flaring, venting and fugitive emissions – and by complying with
stringent design standards for new projects to ensure that methane emissions are close to

zero. The Company has already reduced routine flaring by more than 90% since 2010 and has
pledged to eliminate the practice by 2030.


TotalEnergies’ achieved to lower the methane emissions intensity of its operated gas facilities
to below 0.1% in 2020. The Company has now set an objective of a further 20% reduction of
absolute methane emissions from its operated oil and gas assets in 2025 compared to 2020.
In November 2020, TotalEnergies signed onto a second phase of the United Nations
Environment Programme’s Oil and Gas Methane Partnership (OGMP 2.0), supporting a
broader, more ambitious reporting framework extended to cover the entire gas value chain and
non-operated assets. The Company is also a signatory of the Methane Guiding Principles.
TotalEnergies is a founding member of the Oil and Gas Climate Initiative (OGCI), a $1 billion
climate fund that has also invested in Qnergy

Total Energies Logo Qnergy Logo

Qnergy Announces Appointment of Chief Financial Officer

Asaf Vos Headshot

Ogden, Utah, March 9th 2021 Qnergy Inc. (www.qnergy.com), the world’s leading manufacturer of clean, reliable, electric power based on Stirling engines, announced today the appointment of Mr. Asaf Vos as Chief Financial Officer, effective March 1st 2021.

Mr. Vos joins Qnergy from IMERYS Refractory, Abrasive and Construction Americas, where he oversaw the financial activity of five manufacturing plants. Prior to working at IMERYS, Mr. Vos served as CFO of Baran Telecom USA, a leading provider of engineering services to large infrastructure projects in the wireless industry in North America.

Along with significant global telecom and manufacturing experience, Mr. Vos brings to Qnergy growth and scaling experience. At both IMERYS and Baran, Mr. Vos gained valuable experience helping drive consistent sales growth and gross margin expansion across multiple product lines in both domestic and foreign markets.

Ory Zik, Qnergy’s Chief Executive Officer, commented, “We are excited about the opportunity to work with Asaf. He is a seasoned financial executive with a strong manufacturing background and experience in telecom. Asaf is well-equipped to work with our executive team supporting our systematic growth and scaling as we move towards becoming a key global player in the energy transition. Having led the finance department for a global organization like IMERYS, Asaf earned the reputation of being a strong, ‘hands on’ leader and an excellent collaborator with commercial, operations and engineering teams.”

Mr. Vos commented, “I am very excited to join the Qnergy family and executive team. I believe the potential for growth and value creation at Qnergy is tremendous, especially given the need for clean and reliable electric power and the passion and technological expertise of the Qnergy team. Having played a leadership role in similar business situations, I am confident that we can develop and execute plans to drive consistent sales and margin growth. I look forward to partnering with the team to build and scale the business.”

Why Invest in Methane Abatement?

The Biden Administration’s climate plan targets multiple sectors. The top three are transportation, power plants, and methane emissions from Oil & Gas operation. The first two are more familiar than the third. Let us talk about methane with the aid of a new visualization tool called En-Roads (beta) https://en-roads.climateinteractive.org/. En-Roads visualizes the climate impact of different clean energy policies. The tool was recently published by MIT and Climate Interactive.

Open En-Roads and you will have a dashboard that looks like this:

Picture of Enroads dashbaord

The planet is on a path to a 3.60C (6.50F) warming by 2100.

Electrifying the Transportation Sector

To see the potential impact of electrifying the transport sector – slide the Transport/Electrification slider all the way to the right:

The potential impact of electrifying the entire transportation fleet to electric – including cars, trucks, buses, and trains is reducing global temperature by 0.10C by 2100 (from 3.60C warming to 3.50C). How very disappointing!

This means that the aggregate of Tesla (>$800bn when I write this). Tens of billions of dollars invested in SPACs. Overall, nearly a Trillion Dollars of ESG capital earmarked to electrifying the transportation sector – will only account for 0.1 degrees by 2100.

In the future, we’ll deploy residential, hydrogen-driven Stirling engines to help charge EV’s at home. But for now, until there is a hydrogen economy, we focus on the methane mitigation sector.

Methane Emissions Mitigation

To see why mitigating methane is so important, slide the methane slider to the left to estimate the potential impact of the sector:

Half a degree. A significantly larger impact than transportation.

The methane abatement sector raised a fraction of a percent to achieve a significantly larger impact than the electric transportation sector. The difference in capital efficiency in terms of GHG mitigation exceeds three orders of magnitude.

Don’t get me wrong – electrifying the transportation fleet is very important and we wholeheartedly support it. But for those interested in deploying capital to mitigating GHG emissions, methane abatement is where you will maximize your climate returns.

picture of CAP3

Happy Holidays From Qnergy

The employees at Qnergy would like to take this time to thank our loyal partners and customers for your continued business throughout this challenging year.

From our family to yours:
Merry Christmas and Happy Holidays.

 

Picture of many powergens in different places