Home » Capalo AI drives the green transition through artificial intelligence

Capalo AI drives the green transition through artificial intelligence

7.6.2024

Capalo AI is a spinoff company from the Department of Applied Physics at the University of Eastern Finland, and its founders have a background in computational physics, computer science and the use of artificial intelligence to model climate change. The company offers its customers real-time multi-market optimization and management of electric batteries.

CEO of Capalo AI Henri Taskinen felt an urge to create something of his own already back in upper secondary school where he worked on mobile game projects with his friend Riku Kukkonen. This urge grew even stronger when Taskinen met others in the Department of Applied Physics at the University of Eastern Finland who shared the same passion.

“Our research team used machine learning models for climate change modelling. We modelled the emissions of urban areas using satellite data and artificial intelligence. This inspired the idea of driving the green transition and reducing emissions through our own company. We saw that the energy sector had a need for AI-powered optimization,” says Taskinen, summing up the background of the business.

In 2022, Taskinen, Kukkonen, Eerik Jauhiainen and Teemu Lappalainen founded Capalo AI. They wanted to offer better optimization for the energy market so that energy production and consumption could be adjusted flexibly based on demand. The optimization and management of batteries came up in several conversations, so the Capalo AI team decided to focus specifically on offering services to battery owners.

Maximizing energy storage revenue

In practice, Capalo AI manages its customers’ batteries and decides when they should be charged and discharged. The optimization system developed by Capalo manages the batteries automatically. The decisions made by the system are based on factors such as weather parameters, including wind, sun and temperature, because they have a major effect on both power generation and consumption.

“When the wind blows or the sun shines, a lot of renewable energy is produced. These are the times when it is profitable for our customers to recharge batteries. Then again, the best time to discharge the energy stored in the batteries into the grid is when the consumption, and therefore the price, hits a peak. Our forecasts try to find the point at which our customers can maximize their energy storage revenue,” says Taskinen.

Flexible energy resources can be aggregated into so-called virtual power plants (VPP) where different-sized batteries are pooled together and traded in the energy market. Capalo AI manages the operations of such VPPs to make them as optimal as possible.

Competitive product

Taskinen says that Capalo AI has its sights set firmly on the international market. Although the Finnish market is constantly growing, the company plans to pursue a bigger market to make an even greater impact on the green transition and to introduce solutions for grid balancing. The company already operates in the Swedish market and is planning to enter new markets.

“Internationalization has been made easier by our excellent team, which already comprises 22 stellar professionals. It is thanks to them that we have managed to bring a highly competitive product to the market. We can offer our customers added value and quality that is not available from anyone else in the industry, although there are a few similar companies around the world,” says Taskinen.

In addition to Kuopio, Capalo AI has offices in Helsinki where about half of the team is based.

Added value to customers

Another key reason for the company’s success has been that the team at Capalo AI has been able to properly articulate the positive impact that the service has on its customers. The company has also managed to convince major investors, such as the venture capitalists Innovestor and Inventure.

Taskinen also encourages other startups to try to solve a genuine problem that potential customers have. Something that brings real added value to the customer.

“And when you start building a solution, try to find the best people for your team. You will also learn a lot along the way, so be open to new ideas and learning new things.

Capalo AI website

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Good service network and strong professionals

When starting the business, Capalo AI sought help from Business Center, a joint service network consisting of the city of Kuopio and five other organizations. The network aims to develop entrepreneurship and business ideas and strengthen the vitality and competitiveness of Eastern Finland.

“We also have positive experiences of cooperating with the Department of Technical Physics (formerly the Department of Applied Physics) at the University of Eastern Finland, where many of the employees of Capalo AI have studied. The department produces hardcore professionals,” says CEO of the company Henri Taskinen.

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Text: Minna Akiola
Photos: Capalo AI & Adobe Stock