Tesla CTO invests in supermarket energy storage startup

California-based Axiom Exergy’s Refrigeration Battery energy-saving system for supermarkets and cold storage facilities has raised $2.5 million from investors, it says, including J.B.Straubel, co-founder and CTO of Tesla Motors.

The system, still in development, is expected to have its first install later this year, and, says president and co-founder Amrit Robbins, has $5 million in signed contracts. It promises to reduce a supermarket's peak energy demand by up to 40%. The company says supermarkets spend 60% of their energy on refrigeration.

The system protects perishables during power outages for up to six hours and gives retailers that extra time to deal with prolonged power shortages.

The newly raised funds “will assist in Axiom’s growth, positioning it to deploy the first wave of Refrigeration Battery systems in supermarkets and cold-storage facilities throughout the U.S.,” the company announced. It will also fund early startups with major California supermarkets.

Axiom Exergy’s business plan has it ready to go to market in Canada in 12 months, and includes financing the purchase and installation of the system, assuring customers of no out-of-pocket expenses.





Though they would not divulge the cost of the system, agreements will last seven to 10 years, with purchasers paying Axiom Exergy from the savings on their energy bill, says Robbins.

The new system is easily installed and connected to existing refrigeration systems, says Robbins.

There is no modification to existing systems, he says. “It’s a drop, in bolt on, retro fit.”

Simply put, the battery system comprises of two components that allow a storage tank of salted water to be frozen during off peak hours when electric rates are lowest in some places.

The stored cold energy is then used to reduce power consumption during peak daylight hours when some power providers charge premium rates.

“During afternoon peak hours, the Refrigeration Battery uses the frozen tanks to supply refrigeration services to the building, eliminating the need to run energy-intensive compressors and condensers,” says the company.

One component sits in a back of store’s mechanical room, measuring about 18 sq. ft. and plugs into existing ports while a large, insulated storage tank is parked anywhere outdoors. The two are connected.

Robbins says installation can be done in as little as a week and would not interrupt normal business.

Savings would vary depending on the electric utility and its peak time rates.