Why the Midwest is Becoming the New Hub for Clean Energy Innovation
Silicon Valley has long been the epicenter of tech innovation, but when it comes to clean energy, a new contender has emerged. The Midwest, with its unique combination of world-class research universities, abundant renewable energy resources, and deep industrial expertise, is proving to be a powerful force in the future of sustainable technology.
Breaking the Silicon Valley Mindset
"I've spent a lot of time interacting with Silicon Valley VCs, and there's a real bias toward everything being in Silicon Valley," says Dr. James Klausner, co-founder of Redoxblox. "But what I keep telling them is—there are smart people all over the country. You just have to look."
This shift in perspective reflects a broader trend. While coastal tech hubs have traditionally dominated venture capital funding, the Midwest offers unique advantages that are becoming increasingly difficult to ignore.
Natural Advantages and Industrial Strength
Take Michigan, for example. "Michigan has a lot of wind energy, especially up in the Thumb," Klausner explains. This access to renewable energy, combined with wholesale energy markets, makes the region an ideal testing ground for new energy technologies.
Just as important is the region's industrial legacy. With a dense network of manufacturing facilities and deep talent pool of engineers and technical experts, the Midwest provides what coastal tech hubs often lack: direct access to industrial end-users and hands-on expertise in scaling production.
University Innovation as a Catalyst
Michigan State University's role in launching Redoxblox highlights the impact of Midwest universities on clean energy innovation. The startup’s founding team—a professor, two postdocs, and a PhD student—came together through a research project at MSU funded by ARPA-E, the U.S. Department of Energy’s Advanced Research Projects Agency-Energy, which supports high-potential, high-impact energy technologies.
The university's innovation infrastructure played a crucial role in the company's early days. "MSU Technologies and the MSU Research Foundation were really helpful for us and gave us the start to get the company launched," Klausner notes. This institutional support helped bridge the gap between fundamental research and commercial viability—something many academic entrepreneurs struggle to navigate.
Attracting Global Investment
Midwest-based startups are also proving they can attract major investment. Redoxblox secured early backing from Breakthrough Energy Ventures and later closed a $40 million Series A round—demonstrating that geography is no longer a limiting factor when it comes to raising capital for promising technologies.
A Model for Future Growth
While Redoxblox eventually relocated its headquarters to San Diego for strategic reasons, its story illustrates a compelling model for clean energy startups: leverage the Midwest’s research and industrial strengths while tapping into coastal venture networks. Many companies are beginning to adopt this hybrid approach, keeping R&D and technical operations in the Midwest while accessing investment from traditional tech hubs.
The rise of the Midwest as a clean energy innovation hub challenges outdated assumptions about where breakthrough technologies originate. A new model is emerging in which:
University research labs serve as incubators for next-generation technologies.
Regional advantages in resources and expertise accelerate commercialization.
Local innovation centers provide critical early-stage support.
Startups leverage both regional strengths and national investment networks.
Looking Forward
As the demand for clean energy solutions continues to grow, the Midwest’s combination of academic excellence, industrial expertise, and renewable resources positions it as a key player in the sector’s future. Companies like Redoxblox show that transformative innovation doesn’t have to come from Silicon Valley—it can just as easily start in a university lab in the heart of the country.
For investors and entrepreneurs, the takeaway is clear: the next breakthrough in clean energy may not come from the coasts. It might be emerging right now from the Midwest.
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This article is based on an interview with Dr. James Klausner, professor of mechanical engineering at Michigan State University and co-founder of Redoxblox, on the MSU Research Foundation Podcast. You can listen to the full conversation on Apple Podcasts or Spotify.