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Former asteroid miners start fresh with Special Teams

Nine years ago, Clara Sekowski was part of the engineering team at Planetary Resources, a Seattle-area startup that planned to mine precious metals on asteroids. Six years ago, she joined other veterans from Planetary Resources at First Mode, another trailblazing startup that focused on clean energy for industrial applications. Now she’s the CEO of Special Teams, a consulting firm founded with fellow engineers from First Mode.

“Third time’s the charm, right?” she says.

Both of those earlier startups attracted high-profile backers for their ambitious plans, only to face setbacks as reality set in. Special Teams is starting smaller, but it’s gaining traction: The bootstrapped venture and its team of just over 10 engineers recently moved into a 7,400-square-foot office and workshop facility in Seattle’s SoDo neighborhood — and it’s already exceeding its revenue target.

“In our first year, we’re almost at $2 million, which is above and beyond a goal we had set for Year One,” she told GeekWire.

The Special Teams roster includes engineers with experience in aerospace, software development, and even the gaming industry.

“We use systems engineering to bridge the gap between innovation on paper and operational deployment,” Sekowski said. “We design and build prototypes and custom simulations to prove that concepts can work in real-world conditions.”

Special Teams’ to-do list includes helping BHP lay the groundwork for deep-mining automation; working on a confidential nuclear project; and advising Scuderia Cameron Glickenhaus, a high-performance car company, on its plan to create a hydrogen-powered pickup truck.

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First Mode gets specific about its clean-tech layoffs

Seattle-based First Mode is reporting that 65 of its workers in Washington state are being laid off in a move that follows through on a previously announced plan to trim back operations at the clean-tech company.

The layoffs were cited in a notice filed today with the state’s Employment Security Department. The reported job reductions represent nearly 40% of First Mode’s Washington state workforce in Seattle and Centralia.

First Mode produces powertrain conversion kits that are designed to reduce carbon emissions for mining trucks and other heavyweight vehicles, potentially including railway locomotives.

Back in January, the company said that it would put less emphasis on hydrogen-battery powertrains and more emphasis on hybrid diesel-battery powertrains — and that it would have to reduce its workforce to adjust to changing market conditions.

About 20% of First Mode’s U.S.-based workforce was laid off in January. Last month, First Mode said it would have to make further cuts in preparation for seeking further investment.

“Despite efforts to revisit non-labor costs, significantly reducing recruitment, and terminating most contract labor to avoid headcount reductions, we still are not able to achieve the cost basis required and therefore must propose headcount reductions going forward,” First Mode CEO Julian Soles said in an email that was sent to employees in advance of today’s notice.

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Clean-tech pioneer First Mode braces for more layoffs

First Mode, a Seattle-based company that’s concentrating on reducing carbon emissions in mining and other heavy industries, has alerted its employees to a significant round of layoffs that’s expected to unfold in early August.

A memo sent out today to U.S. employees doesn’t specify how many will be laid off — and emphasized that “individual determinations are still in process.” But First Mode told me in an email that the layoffs could amount to as much as 50% of the company’s global workforce.

In the memo to employees, chief people officer Mornie Robertson said the total number of impacted workers in the U.S. “will be large enough” to obligate First Mode to provide all U.S. employees with notification under the terms of the WARN Act. That blanket 60-day advance notification accompanied today’s memo.

“Impacted employees will be notified the week of August 5,” Robertson wrote.

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First Mode’s clean-tech factory uses smart tech as well

There’s not much that’s bolted down the floor of the 40,000-square-foot factory in Seattle’s SoDo district where First Mode plans to build powertrain conversion kits for mining trucks — and that’s by design.

“The factory itself represents the latest in smart manufacturing,” First Mode CEO Julian Soles said during today’s ribbon-cutting ceremony, with Washington Gov. Jay Inslee in attendance. “It’s ‘software-defined’ rather than a hard-point-constrained facility. Nearly every components shelf and assembly sequence is digitized for maximum speed and data management.”

If the production requirements change, the floor plan can change accordingly. First Mode is also taking advantage of digital tools for tracking the supply chain.

“Every workstation, every inventory location, every product that moves through the facility is equipped with a bar code and has a digital twin,” Philipp Nonnast, senior global supply manager for First Mode, explained during a factory tour.

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First Mode downsizes and revises its clean tech plans

First Mode says it’s cutting back on its workforce as it adjusts to the market demand for heavy trucks that rely less on fossil fuels.

The workforce in the U.S., which currently amounts to about 240 people, is being immediately reduced by about 20%, First Mode CEO Julian Soles said in an email sent to employees today. Most of those employees are in Washington state — for example, at First Mode’s Seattle HQ and at its proving grounds in Centralia, Wash.

About 125 additional employees work in non-U.S. offices. Soles said operations in Australia, Britain and South Africa “may also possibly experience redundancies,” while operations in Chile are “not currently impacted.”

Despite the cutbacks, First Mode is continuing with plans to retrofit mining trucks to reduce their carbon footprint and address the climate challenge. “This is the year that we deliver commercial products to our customer sites. It is also when we finalise our transformation from an engineering services firm to a global decarbonisation product company,” Soles wrote, using British spellings.

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Clean-energy funding gives ‘Hydrogen Valley’ a boost

First Mode, the clean-energy company that was recently transformed from a Seattle startup into an Anglo American subsidiary, is getting a boost from Washington state.

The Washington State Department of Commerce awarded $250,000 in economic development funding to the Economic Alliance of Lewis County to help First Mode with design and construction costs related to the company’s future facility in Centralia, Wash.

First Mode is planning to turn a former coal mine site, leased from TransAlta, into a proving grounds for its hydrogen-fueled hybrid powertrain for heavy mining trucks. The building plan calls for providing 7,500 square feet of office space and 20,000 square feet of outdoor yard space, with an option for expansion.

The powertrains have been under development at First Mode’s lab in Seattle, and last year a prototype truck made its debut at a platinum mine in South Africa.

Eventually, Anglo American plans to have First Mode convert hundreds of ultra-class haul trucks to run on hydrogen and battery power. The technology for the trucks and the fueling and charging infrastructure will be tested at the Centralia site.

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First Mode goes all in on clean energy for heavy industry

Seattle-based First Mode and Anglo American have closed a complicated $1.5 billion transaction that will remake First Mode as a clean-energy company for heavy industry — and shift its headquarters to London.

Anglo American, a global mining company, is now First Mode’s majority shareholder. The change of status was reflected in a filing with the Securities and Exchange Commission, which reported a $1.184 billion equity offering sold to Anglo American. That’s in addition to a $200 million cash injection that Anglo American is providing, First Mode spokeswoman Colleen Rubart told me in an email.

Rubart said the balance of the $1.5 billion comes in the form of contributions of intellectual property, contracts, facilities and other assets from both of the parties involved in the deal. The deal closed on Jan. 5, she said.

The business combination, which was announced last year, blends First Mode’s engineering operation with Anglo American’s nuGen effort to develop a zero-emission system for hauling ore. First Mode created the hydrogen-fueled hybrid powerplant for Anglo American’s nuGen mining truck, which made its debut in South Africa last year as the world’s largest zero-emission vehicle.

Going forward, First Mode will supply nuGen systems to Anglo American. The project will include the retrofit of about 400 ultra-class haul trucks with First Mode’s powerplant, plus the provision of infrastructure for hydrogen production, refueling and battery recharging.

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First Mode’s zero-emission ambitions get a $200M boost

Seattle-based First Mode and the Anglo American mining company have signed a binding agreement to combine First Mode with Anglo American’s nuGen effort to develop a zero-emission system for hauling ore. The transaction, which is expected to close next month, values the newly combined business at around $1.5 billion and includes a $200 million equity injection from Anglo American.

The outlines of the business combination plan were first announced in June. At that time, Anglo American said the terms of the agreement were non-binding, and the financial details weren’t released.

First Mode is an engineering company that initially focused on providing expertise for space projects such as NASA’s Perseverance rover mission and the Psyche mission to a metal-rich asteroid. But in recent years, it’s devoted increasing attention to carbon-reduction technologies for heavy industry.

The company provided the hydrogen-fueled hybrid power plant for Anglo American’s nuGen mining truck, which made its debut in South Africa this year as the world’s largest zero-emission vehicle.

“First Mode was founded in 2018 with the goal of building the barely possible,” Chris Voorhees, First Mode’s president and CEO, said today in a news release. “We have done just that, and our mission is now to rapidly decarbonize heavy industry by dramatically reducing our customers’ greenhouse gas emissions. I can’t imagine a team better suited to this urgent challenge.”

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First Mode sets up test site for zero-emission trucks

First Mode is establishing a proving grounds between Seattle and Portland to test and optimize giant zero-emission hauling trucks and the hydrogen-based infrastructure they’ll depend on.

The Seattle-based engineering venture says its leased facility at the TransAlta Centralia Mine, 85 miles south of Seattle, will include 7,500 square feet of office space and 20,000 square feet of outdoor yard space. “We plan to expand our footprint and activities in the future,” First Mode said in an emailed statement.

First Mode’s first job in Centralia will be to bring in a fleet of Komatsu 930E-4 ultra-class haul trucks and retrofit them with hybrid battery and hydrogen fuel cell power plants. Such conversions follow the model set in May, when the Anglo American mining company successfully deployed a proof-of-concept hybrid haul truck at its Mogalakwena mine in South Africa. First Mode developed the hybrid power plant for that truck, the world’s largest zero-emission vehicle.

“The First Mode Proving Grounds in Centralia is a critical next step in our mission to help heavy industry eliminate diesel and transition to clean energy,” First Mode CEO Chris Voorhees said today in a news release. “The site will support both the optimization of ultra-class haul trucks and the full infrastructure associated with diesel-free mobility and the production and distribution of clean energy.”

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First Mode enters second stage of clean energy quest

First Mode, a Seattle-based engineering company, says it’s agreed to a business combination with the zero-emission truck development effort led by the Anglo American mining company.

The deal follows up on First Mode’s work with Anglo American on its nuGen Zero Emissions Haulage Solution, which uses a hybrid hydrogen-battery powertrain on ore-hauling trucks. First Mode designed and built the powerplant in partnership with several other companies.

In May, Anglo American unveiled the first converted nuGen monster truck at its platinum mine in Mogalakwena, South Africa. The newly combined business, operating under the First Mode name, would convert Anglo American’s fleet of 400 trucks to the nuGen system. It would also provide associated site infrastructure for battery charging as well as hydrogen production and refueling. First Mode says converting 400 ultra-class haul trucks to zero-emission systems is equivalent to taking 280,000 carbon-emitting cars off the road.

“We started First Mode to solve meaningful and difficult problems,” Chris Voorhees, president and CEO of First Mode, said in a news release. “Climate change and energy security are the paramount challenges of our time, and I am so proud this will be First Mode’s focus as we enter this next phase of growth. Now is the right time, and this is the right team, to build the barely possible for this extraordinary set of problems.”