Five energy startups selected by Minnesota partners for 2025 demonstrations

Demonstration projects empowered by the Grid Catalyst accelerator and the Minnesota Energy Alley initiative

MINNEAPOLIS — Today, Minnesota clean energy accelerator Grid Catalyst announced the first slate of startups matched for projects in its 2025 Demonstration Cohort program:

• 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 the 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.

These startups are advancing technologies critical to modernizing the energy system while helping their project partners optimize their operations for greater efficiency and resiliency. 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.

“Minnesota has been and will continue to be a leader in clean energy,” said Governor Walz. “I’m grateful for the collaboration happening to support small businesses, attract millions in new investment, and promote union job growth across the state. These innovative startups are critical to growing Minnesota’s economy and keeping us on top of energy innovation.”

The demonstration program is backed by the Minnesota Energy Alley initiative — led by Clean Energy Economy Minnesota, in partnership with the Minnesota Department of Commerce and Grid Catalyst. 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 enabled millions of dollars in public and private investment for startups.

“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 of Grid Catalyst. “The public and private leadership in our state makes these projects and partnerships possible.”

The demonstration projects are supported by additional Innovators Network and ecosystem partners: the City of Minneapolis, the City of Saint Paul, Itasca Economic Development Corporation, and Full Stack Saint Paul. This network of over 30 Minnesota businesses, utilities, higher education, and government partners showcases our state’s leadership as an early adopter and hub for innovative technologies.

“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.”

These demonstration projects play a crucial role in the commercialization journey for startups. By showcasing their technology in real-world settings, they can attract investors and new customers while opening doors for long-term manufacturing partnerships and regional job creation. Energy technologies serve a critical role across every sector of our economy, and this program provides the rigor and technical expertise required to derisk the adoption of new solutions.

“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.”

More information on the finalists is available on the Grid Catalyst website.

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About Grid Catalyst

Grid Catalyst empowers entrepreneurs and startups leading Minnesota’s energy system modernization. We provide innovators with access to resources, mentorship, and strategic partnerships to accelerate their technologies from concept to commercialization. We work with a vibrant network of partners in local and state government, industry, nonprofit, and community organizations to address gaps in the development and deployment of energy technologies in our region.

About Clean Energy Economy MN (CEEM): CEEM is an industry-led 501(c)(3) nonprofit representing the business case for clean energy in Minnesota. CEEM provides a unified voice for clean energy business across the state. Our mission is to provide educational leadership, collaboration, and policy analysis that accelerates clean energy market growth and smart energy policies.