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Diffuse Energy

The business, the turning points, and the decisions behind them.

Event year2024
FundingUS$526.1K

01 / WHAT IT BUILT

What the company did

Diffuse Energy was a Newcastle, Australia startup founded in 2018 by Joss Kesby, James Bradley and Samuel Evans out of the CSIRO ON accelerator. It built a diffuser-augmented micro wind turbine - a super-efficient small turbine and shroud design with its own controller - targeting remote power applications. After early experiments with luxury yachts, it pivoted to telecommunications towers, running an ARENA-backed multi-site project installing small wind turbines at remote Australian communication sites as a renewable alternative to diesel generators.

02 / Diffuse Energy FAILURE REASONS

Failure factors supported by the current evidence

AuManufacturing (Brent Balinski; LinkedIn publish 3 Nov 2024): former CTO James Bradley said Diffuse Energy wound up after semiconductor/controller parts (including a TI MOSFET gate driver) became scarce or unavailable at viable price after 2020, making a redesign too costly/risky; they quit after finishing delayed ARENA work.

Supply Chain

Semiconductor/controller components became scarce or priced at ~3x; a critical 5% of parts stayed off-market, rendering the rest unusable.

Product Viability

Bradley said a redesign would have left a much more expensive, less viable controller with no clarity on when supply would resume.

03 / EVENT HISTORY

Events in the structured record

  1. Operations ended

    AuManufacturing (3 Nov 2024): James Bradley said Diffuse Energy started wrapping up early in 2024 and decided to quit after finishing delayed ARENA work; co-founders planned a wake for the ended business.

04 / CONTEMPORARY REBUILD ASSESSMENT

Difficulty of rebuilding this project today

Material for this section is being gathered and checked. It will appear here once ready.

Rebuild difficultyPending assessmentNot completed
Scoring basisNot completed
ScalabilityPending assessmentNot completed
Scoring basisNot completed

Overall assessment: Not completed

05 / CAUSAL CHAIN

How the factors connect

  1. 01

    In 2018, Joss Kesby, James Bradley and Samuel Evans formed Diffuse Energy in Newcastle, Australia, via the CSIRO ON accelerator to commercialise a diffuser-augmented micro wind turbine concept developed during Kesby's PhD.

  2. 02

    After early interest from luxury yacht owners, the company pivoted to telecommunications towers and ran an ARENA-backed multi-site project installing small turbines at remote Australian communication sites as a renewable alternative to diesel generators.

  3. 03

    The global semiconductor shortage of the early 2020s made it impossible to build what they needed: the MOSFET products in their controllers were 'unicorns' that could not be replaced when the supply chain broke.

  4. 04

    In 2024, the founders decided to end the business, winding up Diffuse Energy after the critical components effectively disappeared. No reliable loss figure was disclosed, so no loss amount is recorded.