In recent months, TurboGen, an Israeli company developing advanced solutions for localized energy production, has reported a series of impressive milestones. Thus, for example, In May, the company installed its first commercial system in New York—a TG40 unit now providing electricity and heat to a high-rise building in Brooklyn, reducing costs by up to 20%. This installation is the first of six planned for the same complex. We sat for an interview with Alex Katz, a seasoned US-based real estate investor who recently invested approximately 10M ILS into TuboGen.
TurboGen has been gaining momentum in recent months. What did you see in the company that motivated your investment?
“I believed in the company even before the events of October 7th and provided a convertible loan of $1 million, with plans for a second infusion of $1.5 million. What particularly attracted me was their advanced technology and unique intellectual property, especially regarding hydrogen blends.”
Recent tests conducted in the Technion labs reinforce Katz’s faith in the technology. Professors Joseph Lefkowitz and Beni Cukurel from the Faculty of Aerospace Engineering at the Technion confirmed that the combustion chamber of the TG40 system can operate efficiently with low emissions across a wide range of hydrogen-methane blends, thanks to its innovative design.
How has your perspective on the company changed since October 7?
“After October 7th, I observed TurboGen closely from the sidelines. When my convertible loan was nearing maturity, I saw some significant developments. The company not only expanded into the defense sector but also signed an MoU with a major defense contractor.”
The Memorandum of Understanding, signed on November 19, 2024, aims to integrate TurboGen’s innovative technology into mobile energy production systems. According to Yaron Gilboa, TurboGen’s CEO, “The increasing demand for efficient mobile energy solutions in the field creates a strategic opportunity for TurboGen to penetrate new markets.”
Let’s talk about the U.S. market. How do you view its potential for TurboGen?
“I’m very excited about the potential in the U.S., especially with the prospects of the incoming Trump administration, which is expected by many to reduce regulations and focus on natural gas-based energy. This is significant news for companies like TurboGen.”
Katz’s enthusiasm is grounded in real-world successes. As stated, back in May, the company announced the operation of its first commercial system in Brooklyn, New York. The TG40 system provides electricity and heat to a high-rise building, cutting electricity costs by up to 20%. This system is the first of six planned for the building.
The company recently it is exploring a potential NASDAQ listing. How does this fit into the strategy?
“To me, This is a natural step for a company offering a solution to a multi-billion-dollar problem in the U.S. market. Just last year, the U.S. suffered from hundreds of prolonged power outages, and the expected influx of millions of electric vehicles will only increase pressure on the grid.”
The company previously announced tentative plans to potentially raise US$5 million or more through a U.S. underwriter as part of its strategy to expand operations in the U.S. and list on NASDAQ.
What do you think is behind the recent defense deal?
“I did my calculations based on all publicly available market information, and when MAFAT (Israel’s Directorate of Defense R&D) publicly expressed the need for independent production, I realized this was a significant opportunity. I believe the demand for independent production in Israel, combined with the MoU signed with a leading defense company, signals the beginning of a new chapter for TurboGen. In my estimation, we’re about to see substantial orders from Israel’s defense industries.”
MAFAT’s interest is unsurprising given current security challenges and the growing need for independent and reliable energy supply for defense consumers. TurboGen’s portable and compact systems, characterized by low weight and the ability to operate with various fuels, offer an ideal solution for defense operational needs.
Alongside its defense potential, the company continues to develop the TG120 microturbine, supported by a grant of approximately 2 million ILS from the Israel Innovation Authority. This advanced product boasts high energy efficiency, low weight, and reduced installation and maintenance costs compared to existing market solutions. The product is designed to operate in the 50 kW to 1 MW range and can use up to 50% hydrogen blends.
Where do you see the company in the coming years?
“TurboGen’s technology provides an exact solution to a critical problem in the global energy market. The combination of proven technological capabilities, as demonstrated in Technion tests, and the growing need for decentralized and reliable energy, particularly in the U.S. market, creates an extraordinary business opportunity.”
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This article was originally published in Ynet Capital in Collaboration with Hazira. Read the original version with full details & disclaimers here.