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Today’s newsletter:
🌳 Today’s Top Story: 2024, so far, has been more successful for Climate Tech VC funding than whole of last year.
🌳 Today’s Data Point: A Fraunhofer ISE study reveals data points on how photovoltaic systems now generate electricity cheaper than coal or gas plants, even with battery storage.
🌳 Climate Insider Intelligence: Climate Insider released the latest edition of market maps – the hydrogen market map.
Climate Tech VC Funding Surges as 2024 Outpaces Entire 2023 in Just Months
Image Credit: Airswift
Climate-Focused VC Fundraising Surge
Climate-focused venture capital funds have raised $6.9 billion in 2024, a 33% increase from the $5.2 billion total in 2023 (Venture Capital Journal). Despite fewer funds being closed, the average fund size increased significantly this year.
Impact of Bill Gates’ Breakthrough Energy Ventures (BEV)
Bill Gates’ Breakthrough Energy Ventures (BEV) significantly contributed to this surge, closing its third fund at over $839 million, along with a $555 million fund earlier in the year. BEV, founded in 2015, aims to support technologies that can decarbonize the global economy. Read More
European Climate Tech Investments
BEV has made notable investments in European startups, while homegrown European climate tech funds, such as Sweden’s Norrsken and Berlin’s World Fund, have also raised substantial amounts. In 2023, Europe surpassed the US in climate tech VC funding, indicating a strong trend in the sector. Read More
Market Movers
This section highlights key investments and initiatives driving progress in sustainability and climate innovation.
- Massachusetts has awarded $53 million — and announced plans for additional funding — to allow affordable housing operators to execute energy efficiency retrofits that are expected to reduce carbon emissions, cut energy bills, and create healthier, more comfortable homes for residents. Read More
- The UN’s International Fund for Agricultural Development (IFAD) has committed to supporting Lesotho in Southern Africa’s agriculture sector. The organisation along with local government announced an investment of $25 million (£19.6 million) towards land regeneration. Read More
- Renewables developer Renexia has signed a €500 million (£428 million) contract with Chinese wind turbine manufacturer, MingYang to manufacture wind turbines in Italy. The two companies along with the Italian Minister of Economic Development, Adolfo Urso will form a new company (newco) for the manufacturing process. Read More
- Goodyear Canada is set to invest more than half a billion dollars to expand and modernise its tire plant in southeastern Ontario, with the goal of making the plant net-zero in less than two decades. Read More
- Startup 280 Earth, a product of Alphabet Inc.’s moonshot factory, has signed agreements worth $40 million to extract carbon dioxide from the atmosphere at a newly completed facility in Oregon. Read More
- Watershed customers Aledade, Canva, Match Group, Samsara, SKIMS, Skyscanner, Wise, and Zendesk are involved in a Frontier offtake agreement with the direct air capture provider 280 Earth. Read More
- Canada’s largest pension fund, CPP, is investing in Tallgrass Energy, aligning with its commitment to support energy infrastructure that includes decarbonization initiatives and the transition to a net-zero economy. Read More
Tech Spotlight
Oregon Researchers Develop Revolutionary Solar-to-Hydrogen Conversion Material
Oregon State University’s breakthrough material is set to revolutionise clean energy by converting sunlight and water into hydrogen efficiently. With minimal use of costly ruthenium oxide, it promises both cost efficiency and wide-ranging applications across various industries
This high-efficiency, scalable technology offers a sustainable alternative to traditional hydrogen production methods, leveraging abundant solar and water resources for a cleaner future.
When deployed at a commercial scale, this technological innovation is poised to offer a range of advantages when compared to traditional counterparts:
Commercial Viability
- Cost Efficiency: Minimal use of ruthenium oxide reduces overall costs despite its expense.
- Market Potential: Applications span fuel cells, chemical manufacturing, metal refining, and plastics.
Technical Viability
- High Efficiency: RTTA-1 produced 10,700 micromoles of hydrogen per gram per hour.
- Scalability: MOF-derived heterojunctions can be scaled for sustainable hydrogen production.
Environmental Viability
- Cleaner Production: Photocatalytic water splitting is a low-carbon alternative to traditional methods.
- Sustainability: Utilizes abundant water and solar energy for hydrogen production. Read More
Policy Pulse
The week saw major announcements and deals when it comes to climate policy and action.
Spain’s Prime Minister Pedro Sánchez announced yesterday in Congress that his government will allocate €2.3bn ($2.5bn) to four new subsidy programs.
This fund allocation will include €1.2bn for renewable hydrogen hubs. According to gas grid operator Enagás, Spain could potentially produce 2.5 million tonnes of renewable hydrogen annually by 2030, utilising 23.3 GW of electrolysers, based on interest in hydrogen pipeline infrastructure expressed earlier this year.
Why it Matters: This development is crucial as it positions Spain to become a leader in renewable hydrogen production, providing the financial support needed to accelerate green energy adoption and strengthen the renewable energy supply chain. Read More
Germany grants €4.6 billion to 23 green hydrogen projects following EU approval.
German federal and state governments have approved €4.6 billion ($5 billion) in grants for 23 green hydrogen projects that received Important Project of Common European Interest (IPCEI) status from the EU earlier this year.
Why it Matters: This development is significant as it provides substantial financial backing to Germany’s green hydrogen projects, which are set to enhance the country’s hydrogen infrastructure with increased electrolyser capacity, pipelines, storage, and transport capabilities. Read More
The US Department of Energy (DOE) has awarded $44.5 million in funding to support research and development of carbon capture, transport, and storage technologies.
The initiative aims to accelerate the commercialization of CCS by focusing on specific geographic regions with high potential for carbon dioxide storage.The selected projects will play a crucial role in advancing CCS technology and making it a viable solution to climate change
Why it Matters: This funding is crucial as it advances carbon capture and storage (CCS) technology, aiming to significantly reduce carbon emissions in the U.S. by enhancing regional infrastructure and accelerating commercialization. The initiative also emphasises community engagement and equity, aligning with broader climate and social justice goals. Read More
Today’s Climate Data Point
New research from the Fraunhofer Institute for Solar Energy Systems ISE has unveiled a recent revelation- photovoltaic systems are now outperforming coal and gas-fired power plants in cost-efficiency, even when coupled with battery storage.
This milestone marks a significant shift in the energy landscape, promising a greener and more economical future.
To help understand the electricity generation cost landscape, here’s a breakdown of current and projected costs. The following statistics provide a detailed comparison:
Cost Comparison 2024:
- PV ground-mounted: 4.1 – 9.2 cents/kWh
- Onshore wind: 4.1 – 9.2 cents/kWh
- PV-battery systems: 6.0 – 22.5 cents/kWh
Cost Projection for 2045:
- Small PV rooftop: 4.9 – 10.4 cents/kWh
- PV ground-mounted: 3.1 – 5.0 cents/kWh
- Small PV-battery: 7 – 19 cents/kWh
- Onshore wind: 3.7 – 7.9 cents/kWh
Flexible Power Plants:
- Biogas: 20.2 – 32.5 cents/kWh
- Biomass: 11.5 – 23.5 cents/kWh
- Hydrogen turbines (built in 2030): 23.6 – 43.3 cents/kWh
Outlook: Renewable energy costs are expected to decline by 2045, while flexible power plants will remain essential but costly. Read More
Significance: These data points signify that renewable energy costs are falling rapidly, with photovoltaic systems and onshore wind proving increasingly cost-effective. In contrast, flexible power plants, such as biogas and hydrogen turbines, remain significantly more expensive.
In Other News
This section covers notable news highlights in climate tech.
- Blockchain firm Verofax has teamed up with climate tech startup Netgreen to enhance global reforestation efforts. Read More
- Clearly, a UK-based climate intelligence platform has closed $4.3 million in seed funding. Read More
- 8 Rivers and Siemens Energy are partnering to develop a zero-emissions turbine that generates electricity from CO2, advancing carbon-negative power solutions toward commercial deployment. Read More
- Kinetic Green, a leading Indian manufacturer of Electric Vehicles (“EV”), announced that it has secured a US$25 million investment from Greater Pacific Capital (“GPC”). Read More
Climate Insider Intelligence: Hydrogen Market Map
The latest edition of Climate Insider’s market map series – where we explore the exciting world of climate technologies. This time, our focus is on hydrogen—a game-changer in the quest for sustainable energy solutions.
Why Hydrogen?
Hydrogen has appeared in almost every market map we’ve created, highlighting its importance across various industries. It’s about time we dedicated a deep dive to this versatile element, which has the potential to revolutionize everything from energy production to transportation.
What’s Inside?
In this map, we break down the hydrogen economy into four key segments:
- Production: How hydrogen is generated, from green hydrogen to innovative new methods.
- Storage: The challenges and breakthroughs in storing hydrogen safely and efficiently.
- Utilization: The diverse ways hydrogen is being used across industries, including transport and energy.
- Systems Integration: The technology and infrastructure needed to integrate hydrogen into our existing systems.
Explore the Future
Join us as we explore the technologies driving the hydrogen economy and discover how this powerful element is paving the way for a cleaner, more sustainable future. Read More
