Welcome to Climate Tech Pulse, your daily dose of market intelligence helping fuel the fight against climate change. From groundbreaking investments to cutting-edge research, we’re bringing you the latest in climate tech that’s shaping our future.
Don’t miss out on tomorrow’s climate solutions – subscribe now to stay ahead of the curve! https://lnkd.in/dwr7B9XJ
Today’s newsletter:
🔝Today’s Top Story: At the 15th Clean Energy Ministerial (CEM15), the Climate Investment Funds (CIF) committed up to $1 billion to accelerate decarbonization in high-emitting sectors like steel, cement, iron, and chemicals in developing countries.
📊 Today’s Data Point: ESMA’s 2024 EU Carbon Markets Report.
🌳 Climate Insider Intelligence: Dell’s Climate Transition Action Plan.
Climate Investment Funds Pledge $1 Billion to Decarbonize Heavy Industries in Developing Nations
Image Credit: Climate Investment Funds
Major $1 Billion Investment in Industrial Decarbonization
During the Ministerial Day of the 15th Clean Energy Ministerial (CEM15), the Climate Investment Funds (CIF) announced a commitment of up to $1 billion to accelerate decarbonization efforts in high-emitting industrial sectors like steel, cement, iron, and chemicals in developing countries. This initiative, part of the $8.6 billion Clean Technology Fund, aims to reduce industrial emissions by 20% by 2030 and 93% by 2050.
Private Sector Engagement and Collaborative Approach
A key aspect of the program is its focus on private sector involvement, with up to 100% of the funding eligible for private-led projects or those that bring in significant co-investments from businesses. By encouraging collaboration between businesses, governments, and multilateral banks, CIF aims to scale climate solutions across developing markets and make meaningful strides toward decarbonizing heavy industries.
Global Implications for Climate Goals
The industrial sector accounts for a quarter of global greenhouse gas emissions, and demand for materials like aluminum, cement, and steel is expected to surge as economies transition to low-carbon models. CIF’s investment will help developing nations reduce emissions while supporting their economic growth, crucial for achieving global climate targets ahead of COP29 and beyond. Read More
Market Movers
- The Canadian government has allocated $13.6 million to fund nine research projects that aim to advance small modular reactor (SMR) development, strengthening Canada’s SMR supply chain, manufacturing, and waste management while integrating First Nations ownership and addressing technological gaps. Read More
- The U.S. Export-Import Bank approved a $98 million loan for a small modular reactor (SMR) project in Romania, as part of a $275 million financing package, to support site development, regulatory approvals, and detailed engineering work, with final investment pending a FEED study completion. Read More
- Voltfang, a leader in green energy storage, raised €8 million in its oversubscribed Series A round, led by FORWARD.One with participation from Interzero and existing investors, to expand its product offerings and strengthen its market position in energy management for commercial, industrial, and grid-scale applications. Read More
- Twynam’s climate tech venture capital arm led a pre-seed funding round for Brooklyn-based Vycarb, a startup developing a scalable, water-based decarbonization technology that aims to capture and store carbon for less than $100 per ton by harnessing the ocean’s vast carbon storage potential. Read More
- Hydrosat, a climate tech company using thermal imagery to monitor agricultural water stress, received a $650,000 SBIR II contract from NOAA to advance its climate monitoring technology, marking a key milestone in its mission and expanding its role in the weather and environmental data market. Read More
- French renewables developer Valorem has secured a €200 million investment offer from AIP Management and IDIA, marking a transition as 3i Infrastructure exits, and further supporting Valorem’s growth, which has seen its installed capacity expand fivefold to a 6.6GW project portfolio in eight years. Read More
Tech Spotlight
Oort Energy’s 1MW Hydrogen Electrolyser: Driving the Green Hydrogen Revolution
Source: Oort Energy, UK
Oort Energy, a UK-based innovator in hydrogen electrolysis, has reached a major milestone by completing its first 1MW electrolyser. This next-generation system aims to accelerate green hydrogen production by harnessing renewable energy to convert water into ultra-pure hydrogen. Established in 2021 by industry veterans, the company focuses on cost-efficient, scalable solutions for the global energy transition.
Commercial Viability
Market Impact:
The 1MW electrolyser’s completion and imminent deployment in Morocco signals Oort Energy’s entry into large-scale hydrogen markets. By validating its technology in real-world applications, the company strengthens its position in the global shift towards decarbonization. Morocco, with its rapidly growing green hydrogen sector, presents an ideal testbed.
Cost-Effectiveness:
Oort Energy’s focus on lowering production costs through advanced drying technologies, stack design optimization, and high efficiency ensures its electrolysers are among the most capital-efficient in the market. Cost reductions of up to 50% compared to competitors position it as a key player in making green hydrogen competitive with grey hydrogen.
Technical Viability
Technology Innovation:
The 1MW electrolyser features superior power conversion efficiency, advanced drying technologies, and proprietary proton exchange membrane (PEM) designs. These allow for high-purity hydrogen production (99.9995%), meeting stringent industrial requirements, such as those for green ammonia production via the Haber-Bosch process.
Efficiency Milestone:
Oort Energy’s first-generation system operates at 87% efficiency, while its upcoming second-generation model aims for 91%, setting new benchmarks in the green hydrogen industry. This advancement supports the company’s mission to redefine the economics of hydrogen production.
Environmental Viability
Sustainability Alignment:
Oort Energy’s electrolysers leverage renewable energy for hydrogen production, offering a key solution in reducing reliance on fossil-fuel-derived hydrogen. By scaling up these systems, the company contributes to global carbon reduction efforts, making hydrogen a cornerstone in achieving net-zero emissions.
Climate Impact:
With the ability to produce green hydrogen at scale and significantly lower costs, Oort Energy’s technology holds the potential to prevent gigatonnes of CO2 emissions, transforming industries like chemicals and heavy transport that currently rely on carbon-intensive fuels.
Scaling Potential
Investment Strategies:
The completion of the 1MW electrolyser represents a significant scale-up for Oort Energy. Investment in this technology is poised to accelerate as global demand for decarbonization solutions intensifies. The company’s strategy emphasizes large-scale deployments in regions like Morocco, opening up opportunities in emerging hydrogen markets worldwide.
Future Expansion:
As Oort Energy validates its technology through real-world deployments, it aims to expand its global footprint, positioning itself to play a central role in the green hydrogen economy. The company’s off-grid achievements also highlight its potential in both grid-connected and remote applications.
Long-Term Implications
Transformative Impact on Hydrogen Production:
Oort Energy’s innovations, particularly in reducing hydrogen production costs, could accelerate the crossover point where green hydrogen becomes more economical than grey hydrogen. This shift is critical for industries transitioning away from fossil fuels.
Strategic Vision for Growth:
Oort Energy’s mission to make green hydrogen economically viable aligns with broader global efforts to mitigate climate change. By continuing to drive down costs and improving efficiency, the company is well-positioned to lead the green hydrogen revolution, supporting the global transition to a low-carbon future. Read More
Policy Pulse
This section includes global updates on climate change policy, governance and regulation.
Adani Total Gas to commission India’s biggest hydrogen blending system.
Adani Total Gas, in partnership with Total Energies, is launching India’s largest hydrogen blending project for piped natural gas, marking a significant step in reducing greenhouse gas emissions and advancing renewable energy innovation.
Why it Matters: This project is crucial as it accelerates India’s shift towards cleaner energy by reducing carbon emissions in natural gas consumption and supporting the broader adoption of hydrogen as a renewable fuel source.
Today’s Climate Data Point
The European Securities and Markets Authority (ESMA) has released the 2024 EU Carbon Markets report, offering key insights into the EU Emissions Trading System (EU ETS), which is central to the EU’s efforts in reducing greenhouse gas emissions.
Source: ESMA’s 2024 EU Carbon Markets Report
The report highlights the functioning and dynamics of the EU ETS market, which plays a critical role in the EU’s decarbonization efforts. This system caps emissions from certain sectors and allows companies to trade emission allowances, aiming to incentivize emission reductions across the bloc.
Key Findings:
Prices and Volatility:
- Prices in the EU ETS have declined since early 2023 due to a confluence of factors, including:
- Lower demand for emission allowances, driven by reduced industrial activity.
- Falling natural gas prices, which eased pressure on energy producers.
- The ongoing decarbonization of the European energy sector.
- Increased supply of allowances following the decision to auction additional units to support the EU’s REPowerEU plan aimed at reducing reliance on external energy sources.
Auctions:
- The emission allowance auctions are highly concentrated, with just 10 participants purchasing 90% of the auctioned volumes.
- Many EU ETS operators prefer sourcing allowances via financial intermediaries rather than directly participating in auctions.
Trading and Positions:
- The vast majority of emission allowance trading in secondary markets occurs through derivatives. This reflects the annual compliance cycle of the EU ETS, where non-financial companies hold long positions (for compliance purposes) and financial institutions hold short positions.
Implications:
Market Dynamics:
- The downward trend in prices could ease compliance costs for companies, but it also underscores the importance of maintaining momentum in decarbonization efforts to ensure the EU meets its climate goals.
- The heavy reliance on a few participants in the auction process may raise concerns about market concentration and liquidity.
Policy Recommendations:
- Monitor Volatility: To ensure the EU ETS remains effective, regulators must continue monitoring market volatility and adjust supply mechanisms as needed.
- Enhance Participation: Encourage broader participation in auctions by reducing barriers for smaller entities and companies.
- Strengthen Market Oversight: With a majority of trades occurring through derivatives, enhancing oversight and transparency in these markets will be essential to prevent speculation and ensure fair pricing.
Conclusion:
The 2024 EU Carbon Markets report provides critical insights into the current state of the EU ETS and underscores the need for continued vigilance to maintain the integrity and effectiveness of the system. As prices fluctuate and market concentration persists, policymakers will need to refine strategies to ensure the ETS remains a robust tool for driving emission reductions in line with EU climate targets.
Climate Insider Analysis:
The EU ETS remains a cornerstone of Europe’s climate strategy, but the drop in allowance prices and concentrated auction participation indicate potential risks. The next steps should focus on strengthening market resilience and ensuring that the system continues to promote real emissions reductions. Encouraging broader participation and refining the role of financial intermediaries could help maintain a healthy market while keeping focus on long-term decarbonization goals. Read More
Climate Insider Intelligence: Dell’s Climate Transition Action Plan
Image Credit: Dell Technologies
Dell Technologies‘ “Climate Transition Action Plan” sets goals to achieve net zero emissions across scopes 1, 2, and 3 by 2050.
By 2030, Dell plans to reduce scope 1 and 2 emissions by 50%, source 75% of its electricity from renewable energy, and cut scope 3 emissions from purchased goods and services by 45%.
One of the largest challenges is addressing scope 3 emissions from customer use of sold products, which account for 58% of Dell’s FY20 baseline. The goal is to reduce these emissions by 30% by 2030.
The plan includes renewable energy procurement, product design improvements, and collaboration with suppliers to meet these targets.
Read in full: https://lnkd.in/e2redKS6
