Investment Insights: Station A

Decarbonizing Commercial and Industrial Real Estate

 

1. The Big Picture

What is usually referred to as the built environment, i.e. the human-made surroundings that provide the setting for human activity, stands at a critical juncture in the fight against climate change. Currently responsible for approximately 37% of the global greenhouse gas (GHG) emissions, it represents one of the most significant opportunities and challenges for reducing our carbon footprint.

Without intervention, emissions from buildings are projected to double by 2050, according to the Climate Group. To align with Net Zero goals, the International Energy Agency (IEA) estimates that the building sector must achieve a more than 50% reduction in emissions by 2030-requiring an average annual reduction rate of about 9%. This scale of change cannot happen without a massive financial commitment.  McKinsey estimates an annual investment requirement of $1.7 trillion across the building sector.

 

2. Why It Matters

Commercial buildings alone accounted for 38% of emissions from the built environment in 2022 (excluding construction)3. This sector is primed for disruption due to regulatory tailwinds such as the Inflation Reduction Act (IRA) in the US, the EU Green Deal in Europe-as well as energy price volatility, high interest rates, and tightening environmental regulations. Large real estate portfolios, managed centrally, offer a unique opportunity for scalable impact.

Yet, Commercial and Industrial (C&I) solar deployment lags residential adoption, leaving significant decarbonization potential untapped. This slower adoption is largely due to outdated manual and analog processes. Buyers, such as building owners and property managers, typically rely on brokers to facilitate the transaction. These brokers managed projects individually within their existing supplier networks, leading to time-consuming exchanges via phone or email to identify and negotiate the best offer.

Key pain points include:

  • Difficulty understanding the real costs, incentives, and financial gains
  • Challenges in comparing and selecting the right providers
  • Inefficient bid comparison process
  • Limited time and resources for non-core activities among portfolio owners.  Station A tackles all these challenges with its AI-based, digital marketplace platform opening access to a much bigger supplier network and making the process transparent and fast.

‘’We are excited to have advised FEV Fund I to invest in Station A and see the acceleration of clean energy solutions deployment in the C&I sector using AI-based digital technologies driving speed, efficiency and transparency,” says  Patrick Elftmann, Managing Partner at Future Energy Ventures.

 

3. What They Do

Station A is a unique, AI-based software platform that revolutionizes the deployment of clean energy for C&I customers. The scope includes on-site solar photovoltaic (PV) systems, battery storage solutions, and community solar PV projects. The platform leverages machine learning and geospatial analysis to offer a one-stop shop solution, from portfolio evaluation to contract signing, fully automating and digitizing the procurement process. Key features include:

  • Automated Property Evaluation: AI-driven data-synthesis using geospatial analysis to identify the most attractive sites and estimate return on investment
  • Marketplace: Competitive procurement via RFQs and RFPs, with options for direct financing or Power Purchase Agreements (PPAs) through trusted suppliers, facilitated by AI-based matching algorithms for efficiency, best price and highest customer satisfaction

Station A’s leadership team combines deep industry expertise and technical excellence. Kevin Berkemeyer, Co-Founder and CEO, brings extensive experience in the clean energy sector, having worked at NRG, First Solar, and Tesla. Kevin’s passion is sales. Together with Manos Saratsis, Co-Founder and Head of Product, who is an architect, building scientist, and software engineer with expertise in geospatial analytics at NRG and Jeremy Lucas, Co-Founder and Head of Engineering, who previously led engineering at NRG’s innovation unit, the three founders combine industry expertise, technical skills and sales experience.

 

4. How It’s Going

Station A has quickly earned the trust of major real estate portfolio owners including Prologis, RMR, Goldman Sachs, Nestlé, CBRE and Wayfair. Most recently, Station A onboarded one of the U.S.’s largest retailers, who will be leveraging Station A’s Platform to evaluate their >4,500 owned locations on an ongoing basis and bringing projects to market in tranches.

 

5. Looking Ahead

Station A has already pre-qualified over 1 million commercial buildings and identified over 83 GW of financially viable clean energy projects. The Station A Marketplace has listed a total transaction value of 288 MW to date. FEV is pleased to be joining Station A’s Series A round led by Climactic and Building Ventures alongside Systemiq Capital, Renewal Funds and Schneider Electric. The investment will strengthen Station A’s sales team and accelerate product enhancements. FEV looks forward to supporting the company as it drives large-scale clean energy deployment and delivers meaningful impact in the C&I sector.

Co-Authored by Anna Trendewicz and Patrick Elftmann

 

Sources

  • 1) United Nations Environment Programme, Global Status Report for Buildings and Construction, 2024, https://www.unep.org/resources/report/global-status-report-buildings-and-construction
  • 2) https://www.theclimategroup.org/built-environment
  • 3) https://www.iea.org/energy-system/buildings
  • 4) https://www.mckinsey.com/capabilities/sustainability/our-insights/the-net-zero-transition-what-it-would-cost-what-it-could-bring

 

 

 

 

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