To support the global demand for Sustainable innovations that address climate change, Phononic, a developer of solid-state cooling and heating technology, today announced that it has secured a significant growth investment led by $50 million from the Sustainable Investing business within Goldman Sachs Asset Management (Goldman Sachs). This investment allows Phononic to dramatically expand sales and marketing, domestic and international high-volume manufacturing capabilities, and expand its cooling and refrigeration product portfolio and platform.
Goldman Sachs joins previous investors Temasek, Franklin Templeton, Venrock, Oak Investment Partners, and others.
The world faces a climate warming catastrophe only exacerbated by a voracious appetite for cooling, refrigeration, and air conditioning. If left unchecked, by 2045 leaked refrigerants alone will contribute as much to CO2 emissions as automobiles. Furthermore, 3 billion people live in hot climates, yet only 8% have access to air conditioning. As standards of living continue to increase and meet that of the developed world, CO2 emissions will only worsen. Refrigerant regulations are often patchwork, eliminating some GWP refrigerants, but replacing them with toxic or flammable alternatives.
Solid-state cooling and refrigeration solutions that meet performance, cost, and sustainability metrics are key drivers behind Phononic’s explosive growth in Optolelectronics (Fiber Optic Communications/ 5G/LIDAR); Cold Chain Fulfillment (ecommerce ecosystem); and Technology Licensing (vaccine protection, cold chain and retail merchandising, and climate control).
“With millions of high-performance thermoelectric devices already in use around the globe, and tens of thousands of solid-state refrigerators and freezers in the field, Phononic’s technology and products are mission critical to the way we communicate; feed our families; safeguard and transport life-saving vaccines; and even shop for our favorite ice cream snacks,” said Tony Atti, Phononic Co-founder and CEO. “This support from Goldman Sachs is a validation of our team’s continued focus and dedication to making a transformative environmental impact.”
The investment from Goldman Sachs creates an exciting sustainability and growth opportunity for both parties.“We recognize the critical role cooling and refrigeration plays in the planet’s long term sustainability and climate viability, and we’re excited to invest in Phononic to further Goldman Sachs’ broader sustainability commitments,” said Jeff Possick, Managing Director at Goldman Sachs. “Phononic’s solid-state solutions are delivering performance and sustainability not available through legacy thermoelectric or compressor incumbents, and our investment aims to help grow and expand their capabilities to meet anticipated demand.”