Energy startups demonstrate innovation across Minnesota

March 2025

Minnesota clean energy accelerator‬‭ Grid Catalyst‬‭ recently announced the first round of‬ startups selected for its 2025 Demonstration Cohort program. These companies will test their technologies with local partners to advance energy efficiency and sustainability.

The selected startups and their demonstration projects include: 

  • Flow Environmental Systems‬‭, based in Rogers, makes a CO2 heat pump for heating and cooling buildings, offering the first refrigerant-free option on the market. They are demonstrating with the Local 455 Pipefitters/Steamfitters‬‭ training facility in Saint Paul.
  • LiquidCool Solutions‬‭, based in Rochester, develops immersive cooling for data centers and is the only company combining direct-to-chip with total immersion cooling. They are demonstrating with data center solutions provider‬‭ Vaultas in St. Cloud.
  • Enspi‬, based in Minneapolis, develops AI-enabled software for utility management to increase efficiency and cybersecurity. They are demonstrating with Grand Rapids Public Utilities
  • C-Motive Technologies‬‭, based in Madison, Wis, makes high-efficiency and magnet-free electrostatic motors. They are demonstrating with‬‭ Summit Brewing‬‭ in Saint Paul.
  • EcoSnap‬‭, based in Centennial, Colo., makes easy-to-install, ductless mini-split heat pumps that cost a fraction of current solutions on the market. They are demonstrating with‬‭ Precipitate Architecture in Minneapolis.

“The 2025 cohort creates tremendous opportunities for Minnesota…”

Nina Axelson, Grid Catalyst

Public and private partnerships fuel growth

These startups are advancing technologies critical to modernizing the energy system while helping their project partners improve efficiency and resilience. That innovation drives growth‬ and impact in Minnesota’s economy, with three of this year’s startups headquartered in the state.‬‭ Several‬ other startups from this finalist round are still exploring projects with Minnesota-based partners, with the‬ potential to mobilize project activities by the end of 2025.‬

“The 2025 cohort creates tremendous opportunities for Minnesota, elevating our region as an early market‬ for innovation and energy technologies, bolstering our energy system reliability and efficiency, and helping‬ businesses scale their solutions and, potentially, manufacturing here,” said‬‭ Nina Axelson‬‭, president at Grid‬ Catalyst. “The public and private leadership in our state makes these projects and partnerships possible.”

Grid Catalyst’s Demonstration Cohort program is backed by the‬‭ Minnesota Energy Alley‬‭ initiative — led by‬‭ Clean Energy‬ Economy Minnesota‬‭, in partnership with the‬‭ Minnesota Department of Commerce‬‭.‬ Minnesota Energy Alley was launched in 2024 to drive innovation and secure Minnesota’s energy and‬ economic development future. In its first 14 months, the initiative has supported over two dozen businesses,‬ mobilized seven pilot projects, launched a new Minnesota business incubator program, and facilitated millions‬ of dollars in public and private investment for startups.‬

What two of the participating businesses are saying

“LiquidCool’s advanced immersion cooling technology is a game-changer for enabling high-density AI and large language models (LLMs) at an enterprise level, bringing next-gen computing closer to the edge,” said Joe Unger, VP of Business Development for Vaultas. “By dramatically improving cooling efficiency, we can support AI workloads in more compact data center footprints, reducing energy consumption and environmental impact. We are proud to host an innovative Grid Catalyst project that fosters business growth in Minnesota.”

“Flow is honored to be a part of the demonstration cohort and to partner with the Local 455 Steamfitters/Pipefitters,” said Sean Jarvie, Chief Technology Officer for Flow Environmental Systems. “We have developed a more efficient and sustainable way to heat and cool buildings, and we are thankful to Minnesota Energy Alley for supporting the potential for ANSWR™ and to Local 455 for being an early adopter and a source of expertise as we scale throughout the country from our Minnesota home base.”

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