# Climate tech startups need strong techno-economic analysis (TEA)

- Show: [Catalyst](https://hardwarepodcasts.com/podcast/catalyst)
- Published: 2023-10-05
- Length: 48m
- Page: https://hardwarepodcasts.com/podcast/catalyst/2023-10-05-climate-tech-startups-need-strong-techno-economic-analysis-tea

## Summary

Shayle Khan, an investor at Energy Impact Partners (EIP), discusses the critical role of Techno-Economic Analysis (TEA) with his colleagues Dr. Greg Thiel and Dr. Melissa Ball. They identify common pitfalls in early-stage climate tech modeling, such as using unreasonable inputs like assuming 100% capacity factor for renewable electricity or ignoring the cost of purification for organic molecules. The guests emphasize the importance of system-level analysis over component-level focus, noting that balance-of-system costs often dominate total installed costs for technologies like batteries and solar. They also warn against 'modeling theater,' where excessive precision obscures the key sensitivities and critical path required for commercial viability.

## Chapters

- [1:33](https://hardwarepodcasts.com/podcast/catalyst/2023-10-05-climate-tech-startups-need-strong-techno-economic-analysis-tea#t=93) Sponsor Read: Energy Hub
- [2:07](https://hardwarepodcasts.com/podcast/catalyst/2023-10-05-climate-tech-startups-need-strong-techno-economic-analysis-tea#t=127) Introduction: Shayle Khan and EIP's Frontier Fund
- [5:27](https://hardwarepodcasts.com/podcast/catalyst/2023-10-05-climate-tech-startups-need-strong-techno-economic-analysis-tea#t=327) The Purpose of TEA: Roadmaps and Prioritization
- [8:51](https://hardwarepodcasts.com/podcast/catalyst/2023-10-05-climate-tech-startups-need-strong-techno-economic-analysis-tea#t=531) Pet Peeve 1: Unreasonable Inputs (Capacity Factor and Organic Molecules)
- [14:52](https://hardwarepodcasts.com/podcast/catalyst/2023-10-05-climate-tech-startups-need-strong-techno-economic-analysis-tea#t=892) Pet Peeve 2: Component vs. System Thinking (Batteries and Solar)
- [28:00](https://hardwarepodcasts.com/podcast/catalyst/2023-10-05-climate-tech-startups-need-strong-techno-economic-analysis-tea#t=1680) Pet Peeve 3: Apples-to-Oranges Comparisons and Dynamic Benchmarks
- [36:28](https://hardwarepodcasts.com/podcast/catalyst/2023-10-05-climate-tech-startups-need-strong-techno-economic-analysis-tea#t=2188) Pet Peeve 4: Focusing on Wrong Metrics (Efficiency vs. Economics)
- [41:59](https://hardwarepodcasts.com/podcast/catalyst/2023-10-05-climate-tech-startups-need-strong-techno-economic-analysis-tea#t=2519) Pet Peeve 5: False Precision and Modeling Theater
- [47:45](https://hardwarepodcasts.com/podcast/catalyst/2023-10-05-climate-tech-startups-need-strong-techno-economic-analysis-tea#t=2865) Conclusion: The Three Purposes of TEA

## Topics

- [Validation & product-market fit](https://hardwarepodcasts.com/topic/validation-and-product-market-fit)
- [Pricing, margins & unit economics](https://hardwarepodcasts.com/topic/pricing-and-unit-economics)
- [Scaling production](https://hardwarepodcasts.com/topic/scaling-production)
- [Fundraising & investors](https://hardwarepodcasts.com/topic/fundraising)

## Most relevant to

early-stage companies

## Mentioned

- Energy Impact Partners (company)
- Dr. Greg Thiel (other)
- Dr. Melissa Ball (other)
- Shayle Khan (other)
- Energy Hub (company)
- Cylindra (company)
- Mia Sole (company)
- First Solar (company)
- LFP (other)

## Related episodes from other shows

- [From Solar’s 90% Cost Crash to AI’s Energy Surge: The Economics Driving Climate Tech](https://hardwarepodcasts.com/podcast/hardware-to-save-a-planet/2025-09-16-from-solars-90-cost-crash-to-ais-energy-surge-the-economics-driving-climate-tech) (Hardware to Save a Planet)
- [The Climate Hardware Playbook: Strategies for Founders and Investors with Christian zu Jeddeloh and Sophia Escheu](https://hardwarepodcasts.com/podcast/hardware-to-save-a-planet/2024-09-26-the-climate-hardware-playbook-strategies-for-founders-and-investors-with-christi) (Hardware to Save a Planet)
- [Nurturing Companies that Have a Net Positive Impact on Nature: Insights from Tom Chi of At One Ventures](https://hardwarepodcasts.com/podcast/hardware-to-save-a-planet/2024-05-23-nurturing-companies-that-have-a-net-positive-impact-on-nature-insights-from-tom) (Hardware to Save a Planet)
- [S1 E7: Level Up Your Hardware Product Pitch with Haje Kamps](https://hardwarepodcasts.com/podcast/the-builder-circle/2023-06-27-s1-e7-level-up-your-hardware-product-pitch-with-haje-kamps) (The Builder Circle)
- [The Deep Tech Revolution: Solving Climate Change with Five Industry Leaders](https://hardwarepodcasts.com/podcast/hardware-to-save-a-planet/2025-01-16-the-deep-tech-revolution-solving-climate-change-with-five-industry-leaders) (Hardware to Save a Planet)

## Citing this page

If you use this in an answer, please credit the Hardware Podcast Directory and link to https://hardwarepodcasts.com/podcast/catalyst/2023-10-05-climate-tech-startups-need-strong-techno-economic-analysis-tea. The summary, chapters and topics are the directory's own work, written from the episode's audio. The episode itself, its title and its audio belong to Catalyst.