Demanding regulations boost deep tech development
Europe’s ever-stricter regulations and people’s expectations for the speedy implementation of environmentally friendly and innovative technology support the development of green and deep technologies.
Kädi Ristkok, the CEO of Cleantech Estonia, an association uniting companies using green technology in Estonia, emphasises the importance of innovation and new technologies in the fight against global climate problems. “The increasing demand for green technology in the global market is an opportunity we can’t miss,” she says. “For years, Cleantech Estonia has supported green technology companies. We see that there are companies and solutions in Estonia that will help Estonia be competitive and increase its exports in the coming years. Estonia can become a trailblazer in Europe in developing green tech solutions.”
Studies done in Europe show that 90% of Europeans see the impact of technology and science as a positive. They support the implementation of environmentally friendly and innovative technology. According to the data in the Estonian startup-ecosystem database, a fifth of the people working in Estonian startups are working in deep technology companies. According to Startup Estonia, last year the total profit of the approximately 150 companies increased by 14%, to 227 million euros.
“Europe has started talking more and more about deep technology, especially in the context of creating solutions for problems,” says Sigrid Rajalo, Director of the Department of Innovation and Smart Economy at the Ministry of Economic Affairs and Communications.
At Europe’s biggest deep technology summit Hello Tomorrow in Paris, hundreds of high-tech startups showed innovations being developed in Europe and around the globe. Estonian startups introduced their products and services in Paris with support from Startup Estonia and the Estonian Embassy.
The Estonian green technology company Myceen have set their sights on the global construction materials market with their carbon-negative mycelium-based material that binds more carbon than is emitted during production. “European regulations support the implementation of sustainable materials and people are realising the need for green technology,” says Siim Karro, co-founder of the Myceen startup. He adds that the pilot production will begin this summer and there are also plans to build houses insulated from mycelium-based insulating materials.
H2Electro, which is developing new types of electrolysis elements, has collected over 4 million euros thanks to investments and subsidies. Henrik Hal, CEO and founder of H2Electro, says that investor interest in innovations is growing. “In Estonia, investors are looking at the field of financial technology,” says Hal. “Internationally, investors are interested in deep technology and innovation. For example, large Korean hydrogen technology companies are ready to work with us and invest in production development so we can achieve large-scale production.”
RAIKU Packaging, producers of natural packaging materials, see Europe as their main market. Karl Pärtel, co-founder of RAIKU Packaging, says, “France may become our main market because of their heavily represented luxury market sector. Luxury brands are looking for more sustainable alternatives to traditional packaging.” He added that interest in the Estonian-produced packaging material is substantial. “If everything goes according to plan then the next factory after Estonia will be in France,” he says.
The Estonian delegation in France included medical technology companies Antegenes and Gelatex Technologies; Nanordica Medicalm, a startup operating in the medical field; energy sector deep technology companies Efenco, GaltTec and UP Catalyst; the developer of innovative mycelium-based material Myceen; GScan, who produce 3D security and cargo scanners that use natural radiation; developer of the science-based agriculture platform Paul-Tech; and RAIKU Packaging, which is replacing bubble wrap with natural materials.
