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S5E59: Flash of Inspiration: How Digital Electricity Is Changing the Vertical Farming Industry with VoltServer’s Stephen Eaves
Episode 59 • 23rd June 2022 • Vertical Farming Podcast: CEOs & Founders in AgTech and CEA • iGrowNews
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Episode Summary

CEO and Founder of VoltServer, Stephen Eaves joins the show to share over twenty years of experience in the energy industry and his passion for doing things that have never been done before. Stephen is an expert in battery management, power electronics and energy infrastructure and has fifteen patents issued or pending related to energy storage and power conversion. Today, Harry and Stephen talk about the origin story of VoltServer and the technology behind digital electricity. Stephen shares his thoughts on areas where digital electricity can benefit vertical farming, what the future holds for both industries and what the future holds for high-tech power distribution.

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Key Takeaways

07:14 – Harry welcomes CEO and Founder of VoltServer, Stephen Eaves, to talk about his entrepreneurial background and his passion for doing things that have never been done before

14:40 – Edison, Tesla, and Eaves

19:40 – Mentors who inspired and helped Stephen along his journey

20:48 – Digital electricity and the origin story of VoltServer

25:05 – Consumer and industry response

30:04 – How Stephen got involved in vertical farming

33:58 – Other areas of vertical farming that VoltServer can benefit

38:20 – The reaction of the electricians’ community and what’s on the horizon for VoltServer and digital electricity technology

43:48 – Opportunities Stephen sees in the vertical farming and indoor AgTech space

48:06 – A tough question Stephen has had to ask himself recently and an ask Stephen has for the audience

51:26 – What has Stephen excited about the future of VoltServer

52:23 – Harry thanks Stephen for joining the show and lets listeners know where they can learn more about VoltServer

Tweetable Quotes

“I’ve always had a passion or an obsession to do things that have never been done before - things that are uniquely different.” (12:54) (Stephen)

“For me it’s just a lot of hard work. I wouldn’t say I’m in the category of what they call the flash of genius or flash of inspiration. It’s mainly about looking at problems and finding an un-thought of way to solve a problem that hasn’t been thought of before.” (17:26) (Stephen)

“There’s nothing like digital electricity. There’s nothing out there where you can touch wires and it knows the difference between you and a vacuum cleaner or something like that.” (21:37) (Stephen)

“We see this type of electricity being the next thing in electricity that will displace full AC infrastructure in buildings and probably cities. But it will take a while before it goes to long- distance transmission and things like that.” (29:48) (Stephen)

“The sort of the black eye in vertical farming is the electricity use. And, if electricity is created using carbon-based sources, that’s not good. I think the big movement is going to be as we move towards carbon-free energy sources.” (45:06) (Stephen)

Resources Mentioned

VoltServer – https://voltserver.com/

VoltServer YouTube – https://www.youtube.com/channel/UCzpGyIlBXwD3l8PNRjFj4sw/featured

VoltServer Instagram – https://www.instagram.com/voltserver_indoor_ag/

VoltServer LinkedIn – https://www.linkedin.com/company/voltserver-inc-/

Stephen’s LinkedIn – https://www.linkedin.com/in/stephen-eaves-47869a33/

Sponsor Info

Cultivatd’s Website – https://cultivatd.com/

Cultivatd’s Instagram – https://www.instagram.com/cultivatdco/

Cultivatd’s Twitter – https://twitter.com/cultivatd

Cultivatd’s Facebook – https://www.facebook.com/cultivatd/

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Mentioned in this episode:

2025 Precision Ag Report by iGrowNews

2025 Precision Ag Report

2025 Precision Ag Report by iGrowNews

2025 Precision Ag Report

Transcripts

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that's spelled C-U-L-T-I-V-A-T-D.com,

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or click the link in the show notes. It's mainly about like looking at

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problems and finding sort of an unthought of way to solve a

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problem that has been thought of before, you know, but sort of

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starting from this problem perspective. And that, you know, this

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invention that we call digital electricity really came way back from

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that first business where we were working with the first battery.

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When they came out at that time, lithium-ion batteries were

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Exotically expensive and dangerous. They were volatile.

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Welcome to the Vertical Farming Podcast, weekly conversations with

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fascinating CEOs, founders, and agtech visionaries.

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Join us every week as we dive deep into the world of vertical

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farming with your host, Harry Duran.

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Vertical Farming Podcast, Season 5. Welcome back. First-time listeners,

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you are in the right place if you're looking for a show where we interview

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fascinating CEOs and founders of the leading vertical farming companies from

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around the world. I'm your host, Harry Duran. In case you missed last

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week's guest, we had Max Lossow on. He's the CEO of Agrilution.

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Max has a vision for bringing the revolutionary concept of CEA

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to every home and to allow everyone to grow their own nutritious plants. And we

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had a great discussion about the work he and his co-founder have done to develop

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his personal vertical farming system. So please check that out if you haven't

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already. Hey, it's Harry. I'm dropping in for a quick reminder that Indoor

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AgTech returns to Brooklyn, New York on June 23rd to 24th.

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And it's a gathering of the world's leading growers, retailers, investors, seed

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companies, and technology providers to meet, network, and cultivate,

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pun intended, new commercial relationships. Key themes covered

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during the 2 days will be regenerating cities, tackling labor shortages,

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reducing costs and energy usage, plant science and seed optimization,

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beyond leafy greens, finance and investment, scalability and

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profitability, communicating with the consumer, and collaboration and partnership.

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It's gonna be a jam-packed 2 days of content and connection. Can't

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wait to see you all there. indooragtechnyc.com, and let them know Harry

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sent you. This week we have a fascinating discussion with

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Stephen Eaves, the CEO and founder of VoltServer. I was really

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fascinated when I saw them at Indoor AgCon in Vegas,

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and I was Grateful for the opportunity to have a deeper dive with

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Steven about the concept of digital electricity.

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Steven has over 20 years of experience in the energy industry and has a passion

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for doing things that have never been done before. He's an expert in battery management,

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power electronics, and energy infrastructure, and has 15 patents

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issued or pending related to energy storage and power conversion.

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In this episode, we talk about the origin story of VoltServer and the technology

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behind digital electricity. He shares his thoughts on where this

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can benefit vertical farming and what the future holds for both industries and

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high-tech power distribution. Really fascinating stuff. Don't forget, if you enjoyed

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this episode or past episodes, I'd love it if you leave a rating and a

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review at ratethispodcast.com/vfb. I'd love to

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read yours out next. Okay, let's jump into this conversation with

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Stephen. So Stephen Eaves, CEO and

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founder at VoltServer, thank you for joining me on the Vertical Farming

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Podcast. Thank you. Where are you calling in

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from? Where's home? East Greenwich, Rhode Island is where the office is,

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just outside of Providence, Rhode Island. Okay. Is that— has

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that been home for you for a while? Are you originally from there? Yeah, I've

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been in Rhode Island about 25 years. Okay. Yeah, it's a very— yeah, it's just

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a very pretty area. And what's a

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little-known fact about the area you're in that most people who don't live there wouldn't

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know about? Well, let's see, everybody knows it's like, it's the setting for

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Family Guy. That's what it's famous for. Yeah.

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Little known facts, well, let's see, that the state food is

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calamari. Okay. Didn't know that.

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But how do you enjoy the change of seasons there? It's just

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about right for me. It's got to change. It doesn't get too

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cold or too hot. I mean, it does get pretty cold and

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Rainy certain part of the year. But yeah, yeah, I like it. It's a nice—

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it's definitely a nice mix. So I first heard

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about or saw VoltServer mentioned at Indoor AgCon.

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It was my first vertical farming conference that I attended in Las Vegas earlier this

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year, and I believe you guys had a booth there. And then I connected with

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your brother, and, um, I think he was on stage. He

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spoke at one of the sessions as well. So it was an introduction

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to some of the interesting things you were doing. And from what I've heard The

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feedback that you got at the conference was pretty positive. Yeah, it was great. It

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was off the hook. You know, it was a really good idea to place it

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with the food business people too. Yeah, the Food Buyers Association.

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And was that the first conference where you were

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displaying or you had a booth set up? We'd been in some of the cannabis

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conferences earlier, which we saw as, you know, it was really

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an initial market for all this stuff where, you know, the The customers have

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higher margin levels and things like that, but we've always believed

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that the food industry was where the long game was in

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the business. So talk to me a little bit about your background

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for folks that don't know you. I know you have a background

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in engineering and that's what you studied and that was part of your

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earlier businesses as well. So maybe just wind the clock a little

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bit before we get into the origins of VoltServer, but have you always

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been fascinated with You know, electrical engineering

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as a passion? Yeah, it's— I've focused around the energy space probably for the

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last 25 years through a series of, you know,

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startups. So this is my third startup business,

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and the previous one was a lithium-ion battery company

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for industrial batteries. And then before that was a

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small company that was sort of a, you know, boutique

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company for energy management and controls like fuel

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cells and advanced batteries and things like that. Has this

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always, since graduating from college, has this always been a passion for

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you just in terms of like the energy space and obviously working with

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lithium and now with the work you're doing at VoltServer, just looking for

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different solutions for some of the challenges and problems we face

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as a society when it comes to all the energy we do consume

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on a daily basis? Yeah, I think that's what it is. I mean, it's really

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sort of maybe not even a passion, an obsession.

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You know, to do things that are new and that have impact and

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energy. It just happens that energy is so

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foundational to everything. So working in that field is very

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impactful. So I just sort of settled into that naturally,

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as, you know, folks want to work on things that have some importance, you know,

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they spend their time. Yeah. So I felt like it was a really good

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area to spend my time in. What were some of the learnings from some of

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those earlier companies, the lithium-ion industry? And

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I imagine there was a lot of on-the-job learning. things as well as you were

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discovering the ins and outs of that industry. But I'm just curious, what were some

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of your takeaways from those endeavors? Some of them were positive and some

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of them not so much. You know, a lot of early

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learning. I worked with my wife in the first business and

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she helped a lot for establishing basic things in business

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like quality management. And, you know, right away

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we got involved with very high-level projects in that first

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business, like satellites and military projects and things

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like that. And we were, we were just coming out of the basement as a

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business and like managing quality, you know,

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connecting with these big sort of institutional

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companies that run programs was, it was pretty

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fast acceleration for us. Yeah. A lot of sleepless, sleepless

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nights. Yeah. What were these, some, how big did you build those

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companies? They were all pretty small. The first one had 12 or

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13 engineers. Okay. You know, and the next

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one was 20, 25 folks in the

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company. And then this company is about currently about 46.

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So all, you know, I enjoy being in the early stages, you know,

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of companies. It's a lot of fun. It's not easy. It's

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definitely not boring. What is it about starting

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a company that really gets you excited or keeps you

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motivated? Well, you're always learning, expanding

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quickly. It feels good. I think certain folks are

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attuned to it, to be in that undefined space. I mean, everywhere you

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go is kind of new, which means you're also getting, it's like going through

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the woods without any path. You're getting scratched up and hit in the face with

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branches and all that stuff, but it's never boring.

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And so yeah, it just goes back to trying to, I really have a passion

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or as I said, an obsession to do things that haven't been done before

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that are different. Is that a trait that you've had

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all your life? Is that something that you remember going back to being

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younger, childhood, or something your family would point to?

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Yeah, it's always— I mean, I think I always tell the story of my

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first electrical circuit was just a ball of wire

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that I found in the basement. I twisted together and I

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brought it up to my mom, which I have to give her a lot of

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credit for trust. And I just had her plug it in and it was nighttime.

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So she plugged it in and it was a big blue flash and all the

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lights went out in the house. And she was just— I remember just sitting there

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in the dark. She goes, don't tell your father. That's what I remember

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from it. Where did you get the idea for that? For twisting the

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wires together? I actually was influenced by,

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interestingly enough, a woman. I mean, my aunt was

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a very early engineer. She was one of the founders of the Society of Women

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Engineers, which is a huge organization now. And she always She

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always brought things to me when I was a child that were

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broken and just threw, you know, threw them in my room and said, well,

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can you fix this for me? I thought I was doing her a big favor.

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She was just challenging me to understand the, you know, the

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equipment. And at that time, there wasn't— there was very little what they

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call safety agency approvals, like what we know as Underwriters Laboratory or the

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little marks on the back. Yeah. So back then, things would just catch on

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fire. like if something was wrong with them, they would just burn, you

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know, and they were, you know, the materials were flammable. There was no real

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fusing or controls. Yeah, it was, it was fun. Yeah,

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that's how I got influenced way back then as a child. Did

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you end up watching any of the biographies of like Edison or Tesla

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and then just how, you know, some of the inspired by some of the early

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inventors as well? Oh yeah, of course. Yeah, going all

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the way back to like You know, there's a great book called

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Devil in the White City. It's about the Chicago

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World's Fair. It was 1897, I think, almost at

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the end of that, of the 1800s. But that's where it was kind

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of all decided. You know, it was such a great book. It talked about, you

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know, Edison and basically Westinghouse and

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Edison were fighting for, you know, distribution. And

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this is a lot like that. Yeah. This kind of has aspects of

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Edison had lower voltage that was considered safe DC power, and

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Tesla had high voltage that could go long distances.

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And so Edison lost that contract because of the amount of copper. It

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was low voltage. So to get it across the park, the

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fairgrounds, it required a huge amount of copper and expense.

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So that's kind of where all that happened. Like, so

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Westinghouse won that contract and that went on from there, they went on and

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did the Niagara Falls generation plant.

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Yeah. And that's where it really momentum took off. But back then,

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there wasn't any things like we have today. There wasn't power

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electronics or semiconductors, digital signal

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processing. So, you know, this, you know, the invention

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that we were talking about today is sort of a fusion

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of all those things. It has the high voltage characteristics of

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Tesla, but the safety aspects of Edison in a

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digital format. So we call it, you know, we call it a third form, you

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know, AC and then DC. We call this DE, which is, you know,

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digital electricity. Yeah, that's a, it's a fascinating story. I'm

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always, I've always been fascinated by Nikola Tesla because I feel like there was something

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about what he was doing that was so way ahead of his time. And, you

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know, he unfortunately ended penniless. And

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then he didn't really get to— he was so ahead of his time, he wasn't

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able to capitalize. And Edison was the better businessman and, uh, you know, was

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able to capitalize on his inventions. But I— it's fascinating to think about

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what's possible and what was possible then, you know, how far

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ahead of the curve they, you know, someone like Tesla was. And now we're starting

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to see, you know, and some of the stuff we'll be talking about today, how

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some of that stuff comes to fruition. But I'm always fascinated to think

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about, you know, how people are inspired, what inspires people, Like how they

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come up with these ideas. And I don't know how it is for

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you, if it's just a process of constant iteration and tweaking and making

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things better, or if in fact it is truly just

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flashes of inspiration from some other field that really

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allow you to think differently about a problem you're trying to solve. Yeah, for

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me, it's just a lot of work. It's a lot of hard

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work. Yeah, I wouldn't say I'm in the category of what they call the

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flash of genius or flash of inspiration. It's mainly

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about like looking at problems and finding sort of an

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unthought of way to solve a problem that hasn't been thought of before,

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but sort of starting from this problem perspective. And that this

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invention that we call digital electricity really came way back from

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that first business where we were working with the first batteries.

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When they came out at that time, lithium-ion batteries were

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exotically expensive and Dangerous. They were

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volatile. Yeah, they were catching fire. Yeah. So we were trying to

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figure out how to, you know, our work back then was how

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to create arrays of batteries, right? And

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I mean, that's a whole nother story. Some of the work we did became what

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you know as the Tesla battery today, which is a massive redundant

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array of cells. So back then we were working with a company called

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AC Propulsion, which was this little tiny

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company that never got a lot of credit for all the great things that happened

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in electric vehicle development, but they did a lot of it. Alan

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Cocconi was the principal there and these other guys

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that I— there won't be enough time to cover that great story, but those guys,

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whenever I get a chance to give credit, I always try to call out

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AC Propulsion because all the work they did. They

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had a vehicle called the T-Zero, which became, you

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know, as you might know, like Elon Musk wasn't the

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founder, you know, the original founder of Tesla. You

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know, I think it was Martin Eberhard is the name of the guy, if I

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recall correctly. But we, you know, we were working with that

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very little company, AC Propulsion, and on that

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project, which that redundant cell technology became my

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second business. But this invention was trying to figure out how

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to make electricity safe to touch even at high voltage. So that

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you could do things like energize roadways and garage

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floors and things like that. That was the original sort of

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problem to be solved with this invention. We'll hopefully

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get back to that as time goes on. It wasn't our first market when we

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actually launched. You mentioned obviously that company, but were there

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other folks along the way that you partnered with that

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mentored you or, you know, that you had good

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relationships with that helped you and that you can credit for where you are now?

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Yeah, for sure. Yeah. Like Stanford Orszynski

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from Ovonic, who he's the inventor— well, he's

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passed now, but the inventor of the nickel metal hydride battery. That

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technology's in the Prius now, but he was a very colorful

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character that worked in early electric vehicle development.

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And he always showed like in the front office as he came into his

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building, their first battery worked with his wife, but the first battery

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was made in a toilet. paper roll, kind of the springy

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thing, not the cardboard thing, but the springy thing that goes in

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the wall, that they built their first battery with that. He was

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quite the character. Yeah. Tom McReedy out of

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AeroVironment. Okay. Which some of the folks from AC Propulsion

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came from AeroVironment. Tom Gage was out of there.

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Great. Yeah. Great people that were very influential to me.

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So talk to me a little bit about the origin story of VoltServer, because at

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that point you had started and exited a couple of

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companies. So we're going back now, 2012,

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but how did the idea come about and what was the problem you

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were looking to solve or what was the opening that you saw in the industry

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that you're looking to fill? Yeah, it was, it originally started, as I mentioned,

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was to try to go after electric vehicle

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technology to allow batteries to be extended

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over long ranges, like on highway surfaces. And we

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did a lot of work that said if you could effectively charge on the highway

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and you only had a 100-mile range on the vehicle, you could go almost anywhere

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in the country without too much trouble. You just had to get back to a

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highway to recharge. And then it was just, it's

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a little bit difficult because there's nothing like digital electricity. It's,

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it, there's nothing out there where you can touch wires and it knows the

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difference between you and a vacuum cleaner or something, right?

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If you expose the power wires, you just look like another

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load on the power wires. There's something called a ground fault interrupter, which is a

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separate sort of conventional device. I'm talking about the actual

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power conductors that go to the vacuum cleaner. And a lot of,

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like a vacuum cleaner today, it doesn't even have a ground wire, it's just 2

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wires. You can't touch those with regular electricity and have the

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electricity know you're being electrocuted 'cause you're drawing less power,

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much less than the vacuum cleaner. Okay. It has no way of feeling. It's dumb.

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You know, AC power is, as beautiful it is from the time of

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Tesla, right? It was, it still goes back to those days where they just knew

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how to make transformers. There's no real intelligence

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to AC power. The same with fire. You know, it takes very

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little energy to actually start a fire. The, you know,

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much less than what popped the circuit breaker. So digital electricity is

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sending energy, these very small things that we call packets.

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And you can look at it like water coming out of your faucet. If it's

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high enough pressure, it's dangerous. And the analogy to

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pressure in the electrical world is voltage. That's the same, the motive

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force that moves something is voltage and electricity and pressure

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in, you know, looking at things like water flow.

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But if you break that water into billions of little droplets, each little

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droplet isn't dangerous in itself. It's a small quantity.

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Our technology takes— does that with

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electricity, breaks electricity in billions of, of quote, droplets,

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and then tracks that flow from one place to another. So if it

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goes into your body, it knows that it went to the wrong place.

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And that's never been done before. There's nothing out there in the world that can

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do that. It's uniquely new. And it's a little frustrating

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because once we get past that part, everybody says, oh, what are you gonna do

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with it? But I'm like, whoa, hang on a second. This has never been done

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before. Yeah. You know, now we could talk about what we can do with it,

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you know, but that's how it works. And it's compatible with data. You know, I

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have a bunch of it behind me in my— Yeah. On this here. So

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yeah, the, the, there's a transmitter unit and a receiver and we're

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tracking, you know, the transmitters are over here and energy is

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coming in the back from a conventional source like AC. And

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those that look like computer servers are breaking it up into those

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packets and sending it overhead in that line. Over into

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receivers that put it all back together and power something. And in that

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space in between, it's pure energy. It's

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uniquely energy where everything in history has been, you know,

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power is just a manifestation of energy into work over time.

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In the space between the transmitter and the receiver, it's never

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manifested into power. It stays in the energy space.

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And so when you touch it, it doesn't hurt you and it won't start a

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fire. And then it goes back to regular electricity at the end to

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power stuff. You know, a lot of the stuff we power is like

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communications infrastructure and stadiums and, you know,

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lights and controls in hotel rooms. And then indoor

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agriculture, as you know, is a really nice application because

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we put the transmitters in the electrical room back here. And then

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a bunch of LED lights, thousands of LED lights in these grow

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facilities. We're sending those packets right into the LEDs because

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they're naturally DC devices. What was the

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response as you started to have people test

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this or really showing people what it is you had developed?

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Did you understand what the applications would be early on or is it something

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where you were really discovering

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yourself what it is you had created or invented and what the possible use

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cases for it would It definitely took some iteration. I mean, you

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know, the first place I went after was EVs, but it was too early

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even back then because the devices need to be compatible. The

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hard thing that we do is that at the end behind me where we

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convert back to regular electricity, we have to

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make the electricity compatible with conventional

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devices. So it goes back to being AC or low voltage DC.

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And that compatibility was tough with electric vehicles because they wanted to

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take AC input and it's hard to convert our stuff.

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It's expensive to convert it back to AC. AC is the thing we're

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trying to avoid. And then at the very end, we have to put a big

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box here to invert it back to AC. Yeah. So it wasn't our

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first sweet spot, you know, where the communications market

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already uses DC like the standard in a

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stadium or a big building is 48 volts DC.

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And so it was much easier for us to get into that market first. So

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we started there and then we're just coming back to doing electric

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vehicles after all these years that we've been in operation now for about

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9 years since we, we had our first round of funding. And

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how do you describe it? Did you come up with that term digital electricity

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right away, or is that something over time that you thought? Because obviously it's a

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really sexy way to sell what it is that you do that's different than what

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people might think of normally. Yeah, that was my partner Dan Lowe, the business

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officer for the company. You know, the technical

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term or the protocol is called packet energy transfer. He's like, nah,

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nah, too technical. He said it doesn't roll off the tongue. You know, it's a

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digital electricity is more sort of marketable. Yeah. And so,

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yeah, so it was his idea to do digital electricity and it is a much

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easier word to pronounce. I should say though, you know, the industry

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We're the inventors of the technology, but there's other folks that are starting to get

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into the business. And the industry calls fault-managed

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power for the new standards that are being developed around

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digital electricity. So we operate, you know, all our

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stuff is certified. It's what they call listed technology.

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But the industry, as they got involved, they wanted to build a, you know, sort

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of a custom standard and custom code section in

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the National Electric Code for it. And that's kind of what's going on now. And

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that That turns sort of a smaller bridge into a

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highway for the industry. So that's kind of a big thing that's

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happening right now. And what's been the response from the

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associations and the industries that provide, you know, these, you know,

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you talk about you turn over any electrical appliance and it's got the

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stamp on it, right, that most people know. So, and these have

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been associations that have been around for decades

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and it feels like this is something that's new to them and it's,

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innovation in a space that probably doesn't see a lot of innovation,

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you know, over decades. So I'm wondering what those conversations with folks

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that create these standards have been like. Yeah, the standards are, they're being

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developed by folks that want to create digital electricity

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infrastructure or, you know, ecosystem folks that want to install it or

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service it, all that kind of stuff, or produce software. I think the

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appliance, the appliance industry is a really good subject for, you know, full

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displacement in buildings, things like

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refrigerators and stoves and things like that. We don't want to convert

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back to AC and devices that big. I think the appliance

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manufacturers are okay. They're not resistant in any way, but they just,

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you know, they need to see tens of thousands of sale,

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you know, unit sales before they're interested in converting. The indoor

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agriculture space was different because it's already Wild West. You know,

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vertical farming is a Wild West environment. Everybody's thinking of all the new

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ideas now. We're not pushing against infrastructure. So that, you know,

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we work with lighting manufacturers and they're perfectly

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compatible with us in terms of, hey, let's try something new. There's no industry

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resistance, but in the big building applications, as you know,

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there's things that are called value networks, which are all the

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web of connections between all the folks that are working in that

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more conventional industry that might be disrupted or

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changed. They will adapt over time, but it's always

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resistive at first. So that's something that takes a lot of

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education, ecosystem development, marketing. Yeah, it's a

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multi-decade effort. But yeah, we see this type of

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electricity just being the next thing in electricity that

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will displace full AC infrastructure in buildings and

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probably cities. It'll take a while before it goes to, you know,

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high, long-distance transmission and things like that. So

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talk a little bit about your early forays into the

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vertical farming world. Was that someone from the company that suggested it, or how

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did you guys get started or get your foot in the door there? Well, you

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met my brother out at the Ag Show, and he— yeah, we've been working

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together for a long time. Like, he's an agriculture

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economist, a professor, and so we've been writing

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papers together at the sort of nexus of energy and

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agriculture and things like that. You know, we looked at papers for like you know,

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turning corn into ethanol and all the, you know, the

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pluses and minuses of all those different bigger infrastructure

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changes, you know, industry changes. And this

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area of indoor agriculture was a paper we originally wrote,

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I think it was 7 or 8 years ago now, about how

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the cost of LEDs were coming down and

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efficiency was going up with the LED manufacturing. And

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if you go to areas in the country like Canada in northern latitudes, my

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brother is a professor at Laval University up there. The

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cost of heating a greenhouse for very little sun that you

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actually get in that part of the country, there's a trade-off where we actually saw

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that within 4 or 5 years, it wouldn't make sense anymore

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to have greenhouses in those latitudes. And, you know, that was

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kind of what started all of this was these 2 big things coming

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together. You know, the, you know, VoltServer had a better way to deliver

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the electricity, which is a huge part of indoor farming. And then with the

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LED technology migrating to lower costs

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and more flexibility, it was sort of a, you know, as they call like a

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perfect storm event that pointed to that direction because

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we have intellectual property here at VoltServer about sending, as I

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mentioned, we send those packets directly into the LED array.

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And so we, we remove the drivers, you know, that on a

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conventional grow light, there'll be an AC to DC

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conversion device. They call it a driver that sits on the light

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and it's the highest failure point for the light. That's the thing that fails first.

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So with digital electricity, we strip all that stuff off, you know, we eliminate

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thousands of those drivers and we centralize into cabinets

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like this that look like server cabinets in the electrical room. And the

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packets go out into the grow area, but it's also

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data in there, right? So Digital Electricity is, you know, the safety

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aspects and energy are combined with data packets. So there's

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full control in the grow room. What's been the initial reaction? I mean,

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I meant the way you describe it, I imagine LED manufacturers are really

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chomping at the bit to test this out and to implement it and to

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really partner with you or figure out how to design

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or the new iterations of their LEDs, have them be compatible with what you're

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developing. And I imagine that they're pretty excited at that opportunity.

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Yeah, right now we have 6 or 7 of them that have

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designed the lights. Some of them are deployed now in the field and

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others are on our test benches here. So we work

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together, we send them gear and they send us fixtures and we test

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them for compatibility. So I think there's a pretty good movement in

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the industry to move away from all those little drivers that are in the grow

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room. To centralized architectures. And so the timing

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is just right. Like, it was, it was an amazing conference, the one that you

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were at, we were at. Just, you could see those, those factors all coming

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together. There was a time, you know, when we went to ag shows

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early on that people didn't believe you could grow food with

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LEDs. There was, there was a huge, you know, I think it was only maybe

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6 years ago where maybe 70% of growers grew

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with high-pressure sodium. So, you know, the, the the big hot bulbs

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in the ceiling, and they just simply didn't believe that you could grow with LEDs.

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And, you know, that's, that's it, you know, that's infrastructure, you know, that you have

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embedded paradigms of how people see things working.

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It takes a while to bring it over. So obviously there's

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a, a direct correlation between what you're providing with digital

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electricity and efficiency and output with LEDs. Are there

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other facets or aspects of vertical farming,

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not related to LED, any of the equipment where Volt Server could also

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allow for improvements in functionality or cost? Yeah, because

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we have that ability to move energy and data, the things like

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programmable logic controller boxes, all the controls out there,

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temperature sensing and, you know, controlling, you know,

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irrigation systems and all of that, all those things have control aspects.

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So, I mean, in the grow room, we're displacing all of the

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conventional power distribution and conventional communications

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lines and going to sort of one common system. We call that digital

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convergence. It repeats itself in buildings, for

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example. In buildings, you have

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electrical infrastructure where big conduits going up through the vertically in

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the building, and then you have communications infrastructure. And it's not just the

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equipment, but it's also the skill sets and the people And the software,

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right? So digital convergence is you have one common platform that has

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energy and data in it and one common software

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protocol like an IP protocol.

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Yeah, because the way you describe it, it almost sounds

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like a Giga Ethernet connection that's

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facilitating the communication and the transmission.

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Instead of energy, it's electricity, which is fascinating to think

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Yeah. Yeah. They, that, that digital transformation's happening

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everywhere, right? Like they call it, some folks call it IoT. So

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buildings and factories and farms and all of that,

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they're digitally transforming to have their basically big

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computers taking in inputs, processing. And

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that, that requires the movement of energy and data.

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And the AC electricity just has, it hasn't evolved in

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150 years. It's still the same. So this is

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just part of that evolution. We're one component in

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the evolution of society towards this digital

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format, digital transformation. I'm wondering, as

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with any disruptive technology in an industry that's

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been around for centuries, if there's an aspect of

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awakening a sleeping giant. And you talk about all these

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technologies and services that will be displaced, like the— I

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think talked about the converter boxes or anything that's in the way

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of, that's not needed right now because of what VoltServer is doing.

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And so I'm wondering if there's any rumblings about folks that have been

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established in the space for a long time hearing what you guys are up to.

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Yeah, I mean, we're in 1,000 buildings now. So

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yeah, it's out there. And the effort that you saw, I talked

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about the standardization, the National Electric Code, that was,

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All of that happened there. I mean, because there was folks that were

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in the development groups for standards development that were there to

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see, you know, to disrupt us, you know, and other folks,

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you know, and I think that might even been how what started it all. Like,

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you know, folks that said, what is this crazy stuff? You guys should look at

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this because there's some funny business going on over there, you know. But I think

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as people looked at it, they brought in scientists, right? At any one time, we

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have 3 or 4 PhDs in these standards groups analysis

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sessions, and they started thinking, wow, okay, this is, this is

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really different. And as that happened, you know, now

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we went from a point of view where we had people that were trying to

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like knock us off a ledge to competitors that want to come in and

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jump in. They're like, oh yeah, this does look interesting. And that start— started

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tilting over time where now the momentum is a bunch of folks that

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really see it as a new industry. And so our job is to

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cooperate where we can because the pie gets bigger, right? It

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actually will help us because other competitors

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give second sources where big building owners and big projects, they don't want to

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be stuck with a unique company. So there's good aspects to

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it. Our job now is just to stay as the, at the front, you know,

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we're the, we're the first movers in the industry. So from a

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management perspective, we want to stay in that position. Yeah, it makes a lot of

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sense. It definitely would seem to have a target on you now that everyone has

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seen this new industry that's rising, but I think you definitely have first mover

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status. Are there patents associated with the technology you've created as well?

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Yeah, many patents. And I want to throw one thing in, is that the

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electricians community, they've been incredibly

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professional. You know, like a lot of folks made sort of jokes around the electricians

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are going to come around and, you know, would steal pipes or something like that.

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They, for one thing, a lot of 'em are geeks like us. They were, they

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were, they wanna see the next thing. And the whole concept is kind of silly.

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Like digital electricity is a new type of tool for electricians.

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And it, it's almost like an electrician saying, hey, if you gimme a better wrench,

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I'm not gonna use that wrench because, you know, I wanna spend more labor

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time turning screws. You know, no, they're, they're a business like any

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other business. They, they look for new ways and they're also

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enamored with new technology. So they've been gentlemen. You know, the whole

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industry that from my exposure has been nothing but good

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exposure with the electricians community. So

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most of our systems are, they, you know, they're installed by electrician

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firms. So I just wanted to throw it out there. Yeah,

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that's nice of you to shout them out as well, because that is true. They

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are the front lines. And that makes me think of another question. Are you

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seeing applications in housing and

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buildings yet, or is it still too early? Or this would seem

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like you talk about IoT, like house of the future, if you're gonna have something

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that's future forward and somewhat future-proof, this would

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seem like the technology to be using. Yeah, depending on the

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flavor of the current volt— the current digital electricity is

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what's called a Class 2 power circuit. And

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that has its pathway, as I mentioned, the bridge and the National

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Electric Code that can install in a lot of places. Now,

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the big bridge that we're building is right now

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focused on commercial and also apartment buildings like MDUs, as

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they call it. That there wasn't enough time in this

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current code, the 2023 electric code, to get in

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residential. People wanted to understand it a bit more before

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they built the big bridge into residential uses. But I think that will

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come, you know, every couple years the code cycle goes through.

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And so I think residential will come after folks get

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comfortable with it in a big way in commercial. What are some of the

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applications that you can anticipate?

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Obviously, you're seeing how folks are applying the technology now.

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And we talked about LEDs, and we talked about some of the things

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where people are putting it into active use today. But

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sometimes you would probably be surprised if you look forward 5 years

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and saying, wow, I didn't realize that this technology could be used for this. And

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so just kind of have your crystal ball in front of you. you

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think of applications that, you know, we may not even be able to

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dream about, but because of the nature of the technology, it would lend

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itself well to exploration in other industries? Yeah, I have a

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couple easy ones, but going to what you said, it is a new—

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digital electricity is a type of platform that industries form around,

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and that's kind of the fun of it, is that you don't know what happens.

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All of a sudden you see all these new things happen. Communication is the same

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way. When you talk about 5G, everybody wonders, Oh, we have all this

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bandwidth. What are we going to do with it? We don't have anything to do

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with it. All of a sudden something happens. It's that

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society expands exponentially from a technology standpoint. It's

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because of all those unknown things. But for the easy ones for me

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that I see for us coming up next is probably things like

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data centers and electric vehicle charging infrastructure.

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Because it installs very easy at high power levels

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and it can go in Like you can slot it into concrete where normally

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you have to dig down way deep under the ground to install

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electricity. But this stuff, because it's inherently safe, you know,

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you don't need all those like conduit, you know, you're seeing on the ceiling

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those metal pipes, you know, conventional electricity is inherently

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dangerous. So it's like a wild animal. And a lot of the work goes into

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containing that animal where you can see in the, in the green

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wires here, digital electricity wires, there's no metal cage around it.

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The cages make it expensive. Like containing

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a lion is much more expensive than containing a cat.

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Yeah. So that's the differential that makes it, from an

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economic standpoint, that makes it sell. Once you have that sort of

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flexibility, things like if you look like building infrastructure,

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being able to use integrated building components like

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floor baseboards that have integrated electricity, or even things like those

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3D-printed homes, where, you know, they could print wires

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with this stuff inside the concrete instead of running

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conventional wire, you know. And that, that's the kind of stuff you can

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do. It doesn't have the ability to start fires anymore if you make a mistake

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or hurt people, even when it's carrying really high power. Yeah,

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I think if we have this conversation in 2 to 3 years, I think we're

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going to be pleasantly surprised by some of the innovation that's happened in this

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space and the people who have been been able to think outside of the box

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because they don't have the constraints of trying to tame this, you know, this

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wild animal that is electricity and live power and

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the flexibility you'll have. You know, this vision we have of driving cars on the

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highway and having them recharge as they're driving along the highway and

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quick recharging of electric vehicles, it's something that, you know, we've

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dreamed about as a future. But I think with now you can see, you can

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see the how that's possible with technology like this. Yeah,

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that's right. I'm curious what your thoughts are about what's been happening in

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the vertical farming space, in indoor ag, and, and just, you

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know, separate from the functionality and, and

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the efficiencies you're providing with VoltServer, what's been your perspective, not

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traditionally coming from this industry, how you've seen it and, you know, the

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opportunities that you're seeing in the industry itself, because it itself is growing

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at a pretty fast pace as well. Yeah. I mean, we're a big believer

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in vertical farming. It's transformational. The, you know,

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as you know, almost everything about it is good.

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I mean, it, you most right now, most fertilizer that gets

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distributed into a field disappears into the ground and shows

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up in groundwater. And then that ends up causing, you know, fish

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kills and dead zones and, you know, Not to

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mention pesticides. Moving on to that, right? Like, you know,

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different pesticides get involved with groundwater. You have all sorts of

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side effects from not just human effects from eating the stuff,

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but the pesticides getting into water streams and the ecosystem.

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And then you have water use. If you throw that on, like indoor

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farming or vertical farming recycles water and

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land use is much less. So it all comes down to where we are, which

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is energy. You know, the, the, the, the sort of

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black eye in vertical farming is the electricity use. And if that electricity

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is created using carbon-based sources, it's

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not good. You know, it's burning a lot more, is creating a lot more carbon.

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So I think the big movement is gonna be things like as we move towards

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carbon-free energy sources. And, and if you go to Canada, like,

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you know, one of our cannabis installations in Canada is, is hydropower.

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So it, it, it's pretty good up there in terms of renewable.

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And we have a big Florida installation, Hardy Fresh, that is

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solar-based. So they have the strangest thing you can imagine. You

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have this closed warehouse-like building that no

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sun can get into it. They have a whole huge solar

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array outside creating electricity. You know,

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it's wild to see, but that was to get the carbon content

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down. on the facility. Because the reason they do that, the reason

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why that's so weird is because it's— it's— the sun is not free.

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It's not cheap as people imagine it. The sun is very expensive to

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manage. And in a greenhouse, the sun gets in the greenhouse and in the summer

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it gets too hot. And then you open the windows, the bugs get in. It

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causes all sorts of insecurity on the, on the part of the farmer of

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not knowing what's gonna happen next. And so that drove to

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having better control, you know, very, very controlled food

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production year round, right? And during

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COVID-19, it accelerated because people got threatened

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by food security. During COVID-19, there was an increased

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focus on health. And another big one was because outdoor

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farming uses migrant labor. With the borders closing down, it

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caused huge disruptions in food supply where the indoor farms

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like the Hearty Fresh facility I was telling you about, they have, they have regular

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employees that come in every day, right? And They get paid to come in

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on a regular basis, so it's stable. So it wasn't disrupted

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by the COVID event as a lot of the other sources for food.

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Yeah, it's been an interesting time for me to launch the

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show because I launched in the middle of COVID and it sort of brought an

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awareness to me learning about the industry, but also realizing

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the importance of local access to fresh

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food, the concept of food deserts. and just how

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much the supply chain was really affected by what happened during

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COVID and an awareness to people who may not have understood

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just how far your produce needs to travel sometimes to

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get to your table. And, it's one of those little-known secrets, dirty little

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secrets of farming itself, which I think have come to light. And so,

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any opportunities to improve it from an efficiency

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standpoint or cost standpoint are certainly going to be welcome. And, to your point,

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yes, the one little dark mark on vertical farming is the

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fact that it is energy intensive, and this helps to solve that problem.

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So I think that's— I would imagine that the technology is being met with open

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arms from a lot of folks in the vertical farming industry. Yeah, it's really exciting

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for us, for sure. A couple questions as we wrap up. What's

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a hard question you've had to ask yourself recently? A lot for us

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is about our path to scale from a business. A lot of my, you know,

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I love the technical side, of the business, but I'm also the

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CEO. That means that I, from a startup perspective, it really kind

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of hit me. It means chief executive officer,

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and that means paper. It's a lot of office work.

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So a lot of my worries and challenges are about scaling.

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There's so many different markets. Electricity is

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generic, which makes it beautiful. That's the abstraction that it

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provides. But it means it can go into just about anywhere, and it

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is. So a lot of my work is strategic on

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how to grow the company quickly, but not too quickly so we burn the

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company out. All that kind of stuff is the day-to-day stuff that

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are the challenges for me. But I love the work. I mean, what am I

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going to do? How can I complain? Somebody shot me with a lightning bolt.

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Given the audience and the fact that this is focused on

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companies, people who are interested in the vertical farming

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industry, and people who work in the industry itself, is there an

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ask that you have for this audience? Yeah, I think the

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industry is evolving. You know, I

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venture to say a lot of it started from cannabis, you know, and it

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started from folks that were in the black market, and it's very hard

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to cooperate. And I think the big

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challenge for everyone in vertical farming now is sort of a

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scientific approach. You know, it's, it's one of the

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most interesting spaces I've ever worked in, this kind of, this sort of

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cross-section of biology and technology

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and all of that and purpose, right? But it's very easy to get off

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track because things are changing in 9 different ways all the

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time. And vertical farming, what I find to be

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one of the most unique things about it is that, you know, folks talk about

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how corn used to be this big, you know, when it was first in the

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wild. And over hundreds of years, people,

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you know, they cultivated it into what it is now. That's gonna

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accelerate now because you could never hold things constant before

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like you can in vertical farming. Now you can hold all the, you know, the

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temperature, the humidity, right? Light levels, right?

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Things that get into the room like insects can be controlled now. And then

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you could tweak one thing and see what's gonna happen. And

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that's going to mean it's going to be an exponential

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increase in the amount of research and

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findings that we have in the industry because of that. It's really,

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really exciting. But folks need to cooperate,

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you know, share research and stuff like that. We're the same, you know,

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we're commercial. So you want to hide, you know, you want to hide your secrets,

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but then cooperation has always been the way that, that's made us

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successful. As a society. So I'm really excited to

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see how it plays out. Yeah, that's a— that's an important thing to highlight, and

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I'm glad you mentioned it because it's something that I've seen. And in the

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course of these conversations, it's been consistent that, you know,

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to a person that's come on the show just talking about the importance of working

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together, developing open standards. And, and I think it's

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such a young industry that there are a lot of opportunities to learn from

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each other. And so I'm glad you continue to bring that up. Can you talk

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a little bit about the roadmap, what you have planned out to the extent that

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you can talk about anything that's, you know, 3 years is probably too

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long in this industry. So for the next 12 months, what has you excited about

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what you're working on at VoltServer? Yeah, the big releases coming up for us is

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we have a new, more optimized transmitter unit that

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is more power dense and lower cost for the customer,

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software development for managing the grow areas and things like

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that. And then And probably what we call inline communications, which

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is more advancements in that communication component of the

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pack. I talk about this energy packet thing as a little, as what's called

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an energy component and a data component. And we're always trying to pack more

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functionality in moving data and the offset of moving

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energy and data at the same time. So we're gonna be working on a lot

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of sensors and controls and sort of APIs for

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for ecosystem partners. That's the big things going on with

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AgEco. Oh, well, Stephen, I appreciate you making

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time to come on the show. And I think it was really intriguing for me

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when I saw it at the conference and had an opportunity to

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chat with your brother about it and just learn more about it. And it just

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feels like it's something that's groundbreaking and innovative. And I want to

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applaud you and the team for all the innovations you've created in this

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space and for being pioneers in this creation of

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digital electricity, which for the vertical farming industry, I think is gonna be something that

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was— it's needed for it to grow and to move

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and to sort of mature into its next phase. So it's gonna be exciting

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to see what's on the horizon. If folks wanna learn more,

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they can go to voltserver.com. Any other place you wanna send them if they wanna

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connect with you or the team? Oh no, that's great. They'll find everything

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there. Okay. Well, thanks again for your time. It was really

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interesting to hear the backstory and the origin story of how everything got started. So

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I appreciate you sharing that. Thanks, Harry. It was a pleasure talking to you. Thanks

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again to Stephen for coming on the show and sharing his story. As

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always, I appreciate the time that my guests spend with me, and I don't take

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that lightly. And I appreciate you for listening and all the

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feedback we've been getting on the show. Don't forget, leave us a rating and review

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at ratethispodcast.com/vfp if you haven't done so already.

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I love reading those out on future episodes. Special thanks Thanks to our

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season 5 title sponsor Cultivated. If you are looking for a vertical farm and don't

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know where to start or which technology would suit your needs, reach out to them

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today. Best of all, their service is free because they work on behalf of their

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partners. Learn more at cultivated.com, and that's spelled C-U-L-T-I-V-A-T-D.com.

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Just leave out that last E. If you're hearing this in the last week of

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June 2022, it's likely that I'm on a plane

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to Indoor AgTech NYC, indooragtechnyc.com.

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Looking forward to meeting a lot of previous guests and new friends at the

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conference in New York City, in Brooklyn. Podcast production and marketing provided by

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Fullcast. Learn more at fullcast.co about how a podcast may

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be helpful for your brand and business. Speaking of

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conferences, tune in next week for my conversation with Brian Sullivan, the

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CEO of Indoor AgCon. Thanks for all you

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do to support the show, and until we meet again, here's to your Thanks for

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listening. To read the full show notes for this episode, which includes

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any links mentioned in the episode, as well as a full show transcription,

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visit verticalfarmingpodcast.com. There, you can

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published.

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