Ivanhoé Cambridge, a Canadian real estate company, completed a pilot project with Turntide Technologies to test new heating and cooling technology in commercial real estate spaces.
Why it matters: So much of commercial real estate's emissions footprint comes via aging and inefficient HVAC systems that even a small improvement in the machine's efficiency can substantially impact emissions.
Details: Turntide replaced existing HVAC motors with its proprietary smart motor hardware in two Ivanhoé Cambridge commercial retail locations.
Turntide claims the retrofit yielded a 35% energy savings in each location, or roughly 56,000 kWh of energy annually.
Ivanhoé Cambridge senior director of sustainability Rob Simpson declined to share the pilot's cost, but indicated the investment would break even in fewer than five years.
The intrigue: Ivanhoé Cambridge was the anchor LP in Fifth Wall's first climate fund, and Turntide Technologies was the first investment out of that fund, Fifth Wall's Greg Smithies tells Axios.
The fund's thesis is partly built around Ivanhoe's own net-zero strategy, hence the investment in Turntide and subsequent pilot.
Though Fifth Wall has used a similar playbook in its other funds, this was the first instance of matchmaking out of its climate fund.
Previously, Fifth Wall portfolio company Opendoor partnered with homebuilder Lennar for a trade-in program for homeowners.
Between the lines: Turntide has access to the rest of Fifth Wall's LP base, which comprises more than 100 commercial real estate groups.
Quick take: Commercial real estate is a tough sell for startups. If Fifth Wall continues to grease the wheels of that process, it could substantially reshape the trillion-dollar industry with climate tech at the forefront.