Commercial Buildings
October 10, 2024—NETenergy, founded by Said Al-Hallaj, is at the forefront of energy storage innovation with its thermal batteries designed to improve energy efficiency in buildings heating and cooling applications. Unlike traditional HVAC system powered by electricity or natural gas, NETenergy’s system leverages a two-fluid design, using refrigerants to “store cold” by capturing cool energy during off-peak hours and distributing it during peak periods to reduce demand.
“Thermal energy storage is an essential piece of the energy transformation puzzle,” Al-Hallaj said. “Our battery is lighter, smaller, and faster than other options. It uses about 40% less energy during peak demand, reduces emissions by 20-30%, and improves efficiency by at least 10%.”
The startup’s success was catalyzed by its participation in the second Wells Fargo Innovation Incubator (IN2) cohort in 2016, where it received validation and technical guidance from experts at the National Renewable Energy Laboratory (NREL).
“We wanted an unbiased third-party evaluation to critically assess the technology and determine its potential,” Al-Hallaj said. “After NREL’s thorough review, they confirmed there was real merit to our idea. With support from IN2, we were able to move forward confidently and take our innovation to the next phase.”
NREL played a pivotal role in refining the technology by designing the two-fluid thermal storage system that NETenergy subsequently licensed. This innovative system utilizes a refrigerant to capture and store cool energy during off-peak hours, while a second fluid acts as a heat transfer medium to distribute that stored energy for cooling buildings. The compressors are programmed to run at night when electricity is cheaper and temperatures are usually cooler, allowing for efficient deployment of the stored cold during peak demand periods, ultimately reducing both energy demand and operational costs.
“The system will be smart enough to know when you should charge the battery,” Al-Hallaj said. “If it is done at night, it’s more likely from a renewable or low emission energy source since peak hours are often when utilities rely on the plants that produce more emissions.”
Today, NETenergy is working with NREL and industry leaders such as Copeland and Trane to move the technology closer to commercial use. NREL is already testing a full-scale NETenergy thermal battery and plans to integrate it with a commercial HVAC system in early 2025. The U.S. Department of Defense (DOD), one of the nation’s largest building owners, has also taken a strong interest in the technology and is preparing for field testing at one of its military bases in summer 2025.
“The DOD said to us: ‘We know it’s going to be harder for you to get to the full market, but we don’t want to wait. We want to be the first adopter, and we’ll give you money to demonstrate that it works,’” Al-Hallaj said.
NETenergy is not only revolutionizing thermal energy storage, but also shaping the future of the clean energy workforce. Through a unique partnership with the University of Illinois Chicago, where Al-Hallaj is a research professor of chemical engineering, students can practice real-world entrepreneurship and play a vital role in advancing the startup’s commercialization efforts. They are helping with commercialization of technologies developed by startups that are launched by students and faculty members at the university.
“The experience they gain is invaluable because they work on real-world problems and contribute to actual solutions,” he said. “Many of these students quickly get jobs and then I get to train more people. The university encourages this collaboration, recognizing the importance of technology commercialization and the value of creating an ecosystem around entrepreneurship and innovation.”
The students are paid by the startups and have opportunities to earn scholarships. NETenergy also provides funding to the university, supporting various labs and initiatives.
“It’s truly a win-win situation,” Al-Hallaj said.
