A Giant Rod That Converts Waves Into Electricity... Even Peter Thiel Takes Notice [Tech Talk]

Aiming for Tidal Power at Half the Cost of Solar

Converting Waves into Electricity with Cylindrical Structures

Hurdles Remain: Energy Efficiency, Manufacturing Costs, and More

Peter Thiel, founder of the U.S. big tech company Palantir and a Silicon Valley heavyweight, led a funding round for a startup called Pantallasa in Oregon on May 3 (local time). Major companies participated in this round, including Thiel himself, the data center company Supermicro, and Hanwha Asset Management. Pantallasa raised a total investment of $140 million (approximately 200 billion won).

This small company, with fewer than 50 employees, claims it can generate "virtually free electricity" from the ocean to supply data centers. Their so-called "miracle generator" is a large steel cylinder driven into the sea below the surface.

An 85-meter Cylinder That Converts Waves Into Electricity

The node developed by Pantallasa is an ultra-large cylinder measuring 85 meters in length, equipped internally with a power-generating turbine. Pantallasa

The official name of Pantallasa's signature cylindrical generator is the Ocean Energy Converter, or simply the "Node." It is a type of tidal power generator that transforms wave and tidal energy into electricity.

The appearance, however, is highly unconventional. It resembles a hollow cylinder 85 meters in length, with a rounded structure attached to one end. Inside this structure are the turbine and various mechanical devices responsible for generating electricity.

The Node operates in a very straightforward way. When the converter is driven vertically below the sea surface, only the rounded structure is left floating due to buoyancy. As waves move the cylinder up and down, water is drawn into the cylinder entrance, spinning the turbine and generating electricity.

That is not all. Pantallasa also plans to install artificial intelligence (AI) data center server racks inside the Node’s rounded structure, aiming to power data centers directly with electricity generated at sea. With this, Pantallasa seeks to solve the electricity supply bottleneck, which is considered the biggest obstacle for AI data centers.

Node of Pantalaasa. Screenshot from X

To demonstrate the Node, Pantallasa has so far developed prototypes called "Ocean-1" and "Ocean-2," and successfully operated Ocean-2 in the open sea in 2024. The latest investment will be used to manufacture "Ocean-3," the final prototype before commercialization.

Pantallasa's goal is to deploy countless Nodes across the open ocean to create a "planetary-scale tidal power system." They claim this could reduce the cost per kilowatt-hour (kWh) of electricity to 2 cents (about 30 won)—two to three times cheaper than most existing renewable energy sources.

Gus Sheldon-Coulson, CEO of Pantallasa, explained at the investment event on May 3, "The greatest energy production potentials on Earth are solar, nuclear, and the ocean," adding, "If we build wave-powered platforms in coastal areas with the highest energy density, we can provide stable and clean energy to humanity."

Is 2-Cent Electricity Possible? Current Tidal Power Costs Are High

Is the goal of "2 cents per kWh" really achievable? As CEO Sheldon-Coulson mentioned, waves possess tremendous potential as an energy source. However, the high manufacturing cost of actual generators remains a significant hurdle.

To maximize the energy conversion efficiency of tidal power, generators must be placed directly in the open sea, where the full force of the waves can be harnessed. This has led to continued development of mobile tidal power generators mounted on sea platforms. A notable example is the floating tidal power platform developed by the UK-based startup Orbital Marine Power in Scotland.

Orbital Marine Power's mobile tidal power generator. The technology of floating generators in the open sea to maximize energy conversion efficiency has been continuously studied, but the huge initial cost remains an obstacle. Orbital Marine Power website

However, the first turbine platform that Orbital Marine Power agreed to supply to the Canadian government in November last year was priced at 25 cents per kWh (about 360 won), which is much higher than standard wind power and far beyond Pantallasa’s target. Even with improved efficiency, the initial costs for designing, manufacturing, and installing robust platforms that can withstand long-term exposure to the sea are enormous. The ongoing maintenance and accumulated expenditures for such complex platforms also add to the hidden costs.

Pantallasa, for its part, has aggressively recruited engineers from SpaceX and NASA to build corrosion-resistant, durable Node hulls capable of withstanding rough ocean environments, and is investing heavily in research and development (R&D).

Ultimately, Pantallasa's success will depend on how quickly, inexpensively, and at what scale it can mass-produce the Nodes. With the funds raised from Thiel and other investors, Pantallasa plans to establish manufacturing plants in Portland, United States, and Vancouver, Canada, and to hire marine engineering experts and welding technicians from around the world.

This content was produced with the assistance of AI translation services.