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February 10, 2025

Commercializing Clean Energy Storage with James Klausner

In this episode we talk with James Klausner, professor of mechanical engineering at MSU and co-founder of Redoxblox, a startup developing thermochemical energy storage solutions.

Season 1 Episode 3:

In this episode we talk with James Klausner, professor of mechanical engineering at Michigan State University and co-founder of Redoxblox, a startup developing thermochemical energy storage solutions. James shares his journey from academic research to entrepreneurship, discussing how his work in energy storage led to the founding of Redoxblox and its mission to decarbonize industrial heat. They explore the challenges of commercializing university research, the role of venture capital in deep-tech startups, and why Redoxblox’s technology is poised to compete with natural gas for industrial heating applications. James also reflects on building a business model that remains independent of government subsidies and how strategic investors play a critical role in scaling the company. This episode highlights the intersection of research, commercialization, and the drive to make a lasting impact on the energy sector.

Host: David Washburn
Guest: James Klausner, Co-founder of Redoxblox and Professor at Michigan State University
Producers: Jenna McNamara and Doug Snitgen
Music: “Devil on Your Shoulder” by Will Harrison, licensed via Epidemic Sound

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David Washburn:
Today’s conversation is with Professor James Klausner. Dr. Klausner is a professor of mechanical engineering at Michigan State University and works in thermochemical energy storage. He’s also the co-founder of a company called RedoxBlox.
We talked about his technology, the markets it’s designed for, and how he thinks about building a long-term value proposition for a startup. I really enjoyed this conversation, and I hope you do too.

Today I’m talking with Professor James Klausner. He’s a professor of mechanical engineering at Michigan State University and works in thermochemical energy storage, energy-efficient manufacturing, and thermal management for energy-efficient processes. Before joining MSU, he spent nearly 25 years at the University of Florida and also served as a program director at ARPA-E.

James, it’s great to see you.

James Klausner:
Thanks, Dave. It’s a pleasure to be here.

David Washburn:
Your research career is impressive—hundreds of papers and major contributions in thermal and energy systems. What really stands out to me is how intentionally you’ve moved toward commercialization. That’s not always a common path for faculty. What pulled you toward entrepreneurship?

James Klausner:
For most of my career, I did very fundamental research. And as an engineer, there are always potential applications—but you don’t really know if your work is having impact. When you shift into applied research, you find out very quickly if what you’re doing actually matters in the real world.

At some point I realized I wanted to make a bigger impact. I wanted to use my creativity—and the creativity of the people around me—to make a real difference. That’s what eventually pulled me into entrepreneurship.

David Washburn:
In university tech transfer, you usually see two paths: license your technology to an existing company, or build a startup. Did you always expect you’d end up on the startup path?

James Klausner:
I saw university patents play out very differently depending on the field. In biological sciences, companies are willing to take major risks because the payoff can be huge. In physical sciences, it’s different. Industry tends to be more conservative. Commercialization usually requires venture capital.

And venture capitalists want the inventor involved. They’re not going to invest unless you’re in the company helping drive it forward. So I knew early on—that if our technology was going to make it to market, we’d have to build a company around it.

David Washburn:
So you’ve spun out RedoxBlox and licensed intellectual property from both the University of Florida and Michigan State. You’re building a new class of thermochemical energy storage. Can you give us the elevator pitch?

James Klausner:
Sure. We store energy—but not like a battery. Batteries store electrical charge. We store energy as heat using a metal oxide material.

When we discharge the system, what comes out is extremely hot air—around 1,500 degrees Celsius. That’s roughly the same temperature as exhaust gas from a natural gas burner. So our system can directly replace natural gas as a heat source.

If that electricity comes from renewable sources, we deliver zero-carbon heat. It’s a decarbonization strategy for industrial heating.

James Klausner:
What makes storage interesting is the time value of energy. Electricity prices can go negative when renewable generation is high. We can charge our system very quickly when electricity is cheap, then deliver heat 24/7.

In some markets, we can actually provide industrial heat at lower cost than natural gas. Not everywhere—but in the right places, it’s very compelling.

David Washburn:
So geography matters?

James Klausner:
Very much. Access to wholesale electricity pricing is regional. California, New York, Texas, and much of Europe give customers access to real-time market prices. Michigan is actually a strong market too, especially with wind generation in the Thumb region.

David Washburn:
Physically, what does your system look like?

James Klausner:
Think of a 40-foot shipping container packed with energy storage material and control systems. One unit holds about 20 megawatt-hours of energy—that’s one megawatt for 20 hours.

If you want more capacity, we stack containers. The system is modular.

David Washburn:
And the core technology is your material?

James Klausner:
Yes—magnesium oxide and manganese oxide. They’re abundant, low cost, and globally available.

We’ve tested the material through more than 1,000 cycles with no loss in performance—about three years of daily use. In our economic model, we replace it every five years. The material is recyclable, so it gets reprocessed and reused.

David Washburn:
How does this compare with molten salt systems?

James Klausner:
Molten salt stores about 700 megajoules per cubic meter. We’re around 2,400—about three times the energy density. Molten salt tops out near 700°C. We run more than twice that.

And we can charge fast, which matters economically. That’s what lets us compete with natural gas.

David Washburn:
Do you have pilots running today?

James Klausner:
Yes. We built a 100 kWh prototype in Bend, Oregon. We’ve just completed a prototype that looks much closer to our commercial system in Anaheim, California.

Our first full 20-megawatt-hour installation will go live in a Dow Chemical facility in West Virginia in 2026.

David Washburn:
Let’s talk about the company itself.

James Klausner:
There are five co-founders. We all worked together at MSU on an ARPA-E grant. The company was founded in early 2021, initially backed by Breakthrough Energy Ventures.

We were based out of the MSU Innovation Center for the first year and a half—they were incredibly helpful. Then we raised a Series A in two phases: first $7 million, then another $30+ million, for a total of about $40 million.

We eventually moved the company to San Diego for access to investors, customers, and talent.

David Washburn:
Congratulations—that’s an incredible milestone. And full disclosure: the MSU Research Foundation is a small investor as well.

I want to touch on something broader. Given changes in national politics, do shifting policies affect how you think about strategy?

James Klausner:
Early on, I learned an important lesson.

A company told us they loved our technology—but it cost more than burning natural gas. And they said flat-out: “My board will not let me spend more money just to be sustainable.”

That was a wake-up call.

So we decided very intentionally: our business case must work without subsidies. If incentives exist—great. But we’re not depending on politics. We’re focused on offering something cheaper, cleaner, and better.

That’s what endures.

David Washburn:
That’s exactly right—and it’s clearly a big reason investors believe in what you’re building.

James Klausner:
One thing I’ll emphasize: good investors matter as much as capital. They bring networks, perspective, and experience.

We’re grateful for all of our investors—including the MSU Research Foundation—and having the right partners is just as important as how much you raise.

David Washburn:
Where can people learn more?

James Klausner:
www.redoxblocks.com

David Washburn:
Our guest has been Dr. James Klausner, co-founder of RedoxBlox. Thanks for joining us, James—we’re excited to see where this goes.

James Klausner:
Thank you, David. I’ll just add—MSU Research Foundation supported me with a professorship when I came to MSU. That mattered. We really appreciate your leadership.

Go Green.

David Washburn:
Go White. Thanks so much.