As artificial intelligence (AI) demands ever more energy, Petra Power is leading the charge with solid oxide fuel cells, which convert fuel into power without burning it. The company, founded in 2017, markets these as a more efficient, environmentally friendly alternative for data centers and large vehicles.

Petra’s founder Aaron Goodman claims their fuel cells offer significantly lower fuel costs and emissions, and are more compact, thus reducing physical footprint. He describes traditional power generation as a series of lossy steps, in contrast to fuel cells, which strip electrons directly from fuel, creating electricity with minimal steps and, in theory, greater efficiency.

The target customer base is emerging but includes data centers and the Defense Department. While Petra is currently working with neoclouds and other infrastructure providers, full-scale production is hoped for in 2029. The government is still deciding on deploying Petra’s fuel cells for land vehicles, but the company is growing, with 15 employees and nearly $9 million in contracts from the Defense Department.

Petra Power is part of TechCrunch Startup Battlefield 200, showcasing their innovative product in San Francisco this week. Will they succeed in catching the attention of the largest consumers of power, or will they remain a niche player?