The $34 billion mistake: how "dumb" insulation is costing us the planet (and how to fix it)

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Syndicate Room
4 November 20254 min read

When we think about tackling climate change, our minds often jump to solar panels and wind turbines. But what if a key component of reaching our 2030 climate goals isn't energy generation, but energy efficiency?

This is the core thesis of Theresa Hoffmann, founder of Nanoplume, who joined the Angel Insights podcast to discuss a problem of staggering proportions. "Heating and cooling account for roughly half of all global energy consumption," Hoffmann explains, "and drive over 40% of energy-related CO2 emissions".

The most shocking part? An estimated 60% of that energy is wasted, primarily due to ineffective insulation.

The potential for impact is massive. Hoffmann notes that improving insulation across the globe could offset 1.4 gigatons of CO2 annually. For angel investors, Nanoplume represents a compelling deep-tech-for-good opportunity, built on a material that sounds like science fiction.

To hear the full conversation with Theresa Hoffmann, listen to the latest episode of Angel Insights:

The problem with "dumb" insulation

As Hoffmann points out, current insulation materials are fundamentally outdated. They suffer from three core issues:

  1. Lack of energy efficiency: They simply leak too much heat or cold.

  2. Lack of space efficiency: Materials like mineral wool are bulky. To meet modern building standards, you may need to install 300mm of it, a thickness that could require tearing down and rebuilding walls in a retrofit.

  3. Lack of circularity: A staggering 80% of insulation materials are still made from petrochemicals.

Nanoplume's solution: NASA-grade bio-aerogel

Nanoplume's solution is a nano-porous material called bio-aerogel. Aerogels are known as the lightest solid material on earth, with up to 99.9% porosity. They're so effective, NASA has used them for decades to insulate missions like the Mars rover.

Hoffmann’s bio-aerogel is a game-changer:

  • It is three times as insulating as traditional materials.

  • It is 60% thinner and lighter.

  • It is 100% biocompatible and non-toxic.

To prove the non-toxic point, Hoffmann has a unique party trick: she eats the insulation during presentations. "It's mostly air," she laughs.

Solving the aerogel puzzle

If aerogels are so good, why aren't they everywhere?

Hoffmann, who studied material sciences and did research at Stanford, explains that traditional silica-based aerogels have three fatal flaws for mass-market adoption: they are incredibly expensive, difficult to scale, and very brittle. This is Nanoplume's "aha moment" and its core IP. "By making Aerogels Bio-based... we can solve those issues," Hoffmann says.

Nanoplume’s defensibility lies in its unique combination of a bio-based formulation (using bio-waste) and a proprietary manufacturing process. This innovation makes their material 75% cheaper than existing silica aerogels. More importantly, it becomes cost-competitive with traditional materials on a total cost of ownership basis. As Hoffmann argues, paying slightly more for insulation that saves you from having to "tear down a wall and rebuild" makes perfect sense.

A smart go-to-market: from pharma to houses

With a material this versatile—it can be made into panels, blankets, or even powders for insulating paint—the biggest challenge is focus. Nanoplume is executing a classic, smart, "CapEx-light" go-to-market strategy. Instead of targeting the massive (but slow) construction market first, they are starting with the cold chain, specifically pharmaceutical shipping.

This high-value, low-volume segment has a burning-hot pain point: $34 billion is lost annually due to temperature breaches and ineffective cold chains. Price sensitivity is low, and Nanoplume's value proposition is crystal clear:

  • Decrease shipping costs with lighter, thinner walls.

  • Increase payloads in existing containers.

  • Extend delivery range and battery life for actively cooled units.

The team is currently pre-revenue, sending out pilot materials to customers. The plan is to scale with toll manufacturers and, in the long term, move to a licensing model with large OEMs.The ultimate vision is as "green" as the material itself: enabling localised, circular manufacturing that uses local, bio-based waste feedstocks.

For Hoffmann, who grew up in a German mining town witnessing air pollution and deforestation, the mission is personal. Nanoplume is her way of creating the world she wants to live in—one where deep-tech solutions can be both high-performing and climate-friendly.

The Carbon13 SEIS Fund

Nanoplume is part of the latest portfolio of investments by climatetech fund and venture builder, Carbon13, and SyndicateRoom. To find out more about our latest climatetech investment opportunities and start investing in the next generation of climatetech innovators, click the button below to view the fund.

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The $34 billion mistake: how "dumb" insulation is costing us the planet (and how to fix it)