In the competitive world of product development, a strategic move known as tight integration has proven fruitful for many companies.
This approach involves designing and manufacturing key components in-house, leading to greater control over quality and innovation. Two well-known examples include Apple, with its custom microprocessors, and Tesla, renowned for its Superchargers.
Now, a new player is entering the scene with a similar game plan. General Galactic, a startup shrouded in secrecy, is betting on tight integration to revolutionize the production of e-fuels. These fuels, derived from captured carbon dioxide, hold promise as a greener alternative to traditional hydrocarbons.
“I was working on a team that was focused on propellant generation for Starship. I started to think, ‘Hey, what are we going to do when we get to Mars? How are we going to produce fuel to come home?’”
Halen Mattison
Mattison, a former SpaceX employee, suggested addressing a certain issue, but he explained it wasn’t closely aligned with the company’s objectives at the time. He said around that time, he was also leaving SpaceX to attend grad school at Stanford.
It was there that he crossed paths with Luke Neise. Recognizing the potential of producing methane from carbon dioxide for Earth-based applications, they decided to launch their own venture.
Following their graduation from Stanford in 2022, Mattison and Neise embarked on their entrepreneurial journey. Their efforts were buoyed by a successful fundraising round in July 2023, netting $1.9 million in pre-seed funding. Notable investors included venture capital firms like Box Group and Refactor, providing vital support for their fledgling company.
“The north star for us is to make methane in a way that is literally cheaper to synthesize from the air, to reuse the emissions, than to pump it out of the ground.”
Halen Mattison
Galactic’s Unique Strategy
General Galactic’s strategy diverges sharply from industry norms. Instead of focusing solely on one aspect of the process, such as direct air capture or electrolysis, the startup aims to develop the entire system in-house.
This comprehensive approach entails capturing carbon dioxide from the atmosphere, generating hydrogen from water, and combining the two to produce methane, all powered by renewable energy sources.
According to Mattison, this integrated approach offers significant advantages. By selling only the end product – the fuel – and not the individual components, the company is incentivized to drive down costs across the board.
Mattison said, “I think one of the mistakes that other companies have made, and other scientists who have looked at this, is siloing themselves.”
In contrast, General Galactic’s goal is to minimize costs throughout the entire process, ultimately making the fuel more accessible and affordable.
Furthermore, General Galactic plans to modularize each key component, an approach that’s becoming standard these days among climate tech startups.
Modular components can be mass-produced and are more easily transported long distances. They’re also easier to design and develop in a small lab, and the final installation of a commercial-scale plant is less likely to incur significant construction costs.
Initially, General Galactic concentrated its efforts on developing a methane reactor, currently producing around 2,000 liters of methane daily.
According to Mattison, the choice to prioritize methane over sustainable aviation fuel, a common objective among e-fuel startups, was intentional. He reasoned that while aviation fuel represents a limited market, methane finds widespread use across various sectors of the economy. As Mattison puts it, “We want to be anywhere that people are using methane today.”
This ambitious pursuit aligns with General Galactic’s overarching strategy of in-house development. Each component of their operation – from direct air capture units to electrolyzers and methane reactors – could potentially stand alone as an independent venture. Although grounded in established scientific principles, each step presents its own set of engineering obstacles. Past endeavors have stumbled over similar challenges.
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