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.
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Today’s newsletter:
🔝Today’s Top Story: Virescent Ventures has reached the halfway mark of its $200 million climate tech fund, securing $100 million in its first close.
📊 Today’s Data Point: Data on feasibility of large-scale Carbon Capture and Storage (CCS) deployment.
🌳 Climate Insider Intelligence: Canadian Hydrogen’s Role in a Low-Carbon Future.
Virescent Ventures Hits $100M Milestone in New $200M Climate Tech Fund Backed by CEFC and Westpac
Fund Milestone and Strategic Backers
Virescent Ventures has reached the halfway mark of its $200 million climate tech fund, securing $100 million in its first close. The fund, backed by Westpac and the Clean Energy Finance Corporation (CEFC), builds on Virescent’s success in managing the CEFC Innovation Fund. This strategic collaboration leverages the CEFC’s decarbonization expertise and Westpac’s financial acumen to accelerate growth in emerging climate tech startups.
Key Investments in Climate Tech
Virescent’s first fund has deployed $270 million across 34 Australian climate tech companies, including significant investments like Hysata’s $172 million Series B for green hydrogen, and Loam Bio’s $105 million Series B for soil decarbonization. Fund II will continue this momentum, focusing on startups advancing clean energy, transport electrification, sustainable agriculture, and the circular economy.
Australia’s Role in Climate Innovation
Virescent Ventures positions Australia as a global leader in climate technology. With support from over 50 investors, including the CEFC, Virescent aims to drive decarbonization in key sectors. CEFC CEO Ian Learmonth emphasized the importance of backing homegrown climate tech innovators during this crucial decade for global sustainability efforts. Read More
Market Movers
- Kobold Metals, an AI-driven mineral exploration startup backed by major investors, is nearing the close of a $491 million funding round, aiming for a $2 billion valuation as its technology plays a crucial role in identifying essential minerals like lithium and copper for the energy transition, including a significant recent copper discovery in Zambia. Read More
- Helsinki-based Synergi has raised €2 million in seed funding to enhance energy management for households and utilities, using the funds to expand across the Nordics and Central Europe while growing its team. Read More
- Quest One, a subsidiary of MAN Energy Solutions, opened a gigahub for automated electrolysis stack production in Rahlstedt, signaling a major step in Germany’s green hydrogen sector, with Chancellor Olaf Scholz and Hamburg’s Mayor attending the ceremony. Read More
Tech Spotlight
UKRI’s £170 Million Funding Initiative: Driving Climate Innovation Across Key Sectors
Source: UK Research and Innovation (UKRI)
UK Research and Innovation (UKRI) has launched a transformative funding initiative aimed at addressing climate change, fostering green economic growth, and promoting sustainable living across the UK. The £170 million investment is set to enhance environmental science research, scale green technologies, and create a more resilient, sustainable future.
Commercial Viability
Market Impact:
The initiative is designed to have broad-reaching impacts across various sectors. It will support industries such as farming, forestry, and critical minerals, enhancing the UK’s environmental resilience and strengthening its global leadership in climate research. With the funding, UKRI aims to build new jobs and drive green economic growth, particularly in areas like land use and carbon management. This initiative aligns with the UK’s long-term goals of achieving net-zero emissions and ensuring national environmental security.
Local Economic Growth:
By establishing five new centres in Scotland, Wales, and South West England, UKRI is fostering collaboration between industry, academia, and local communities. These centres will facilitate the scale-up and adoption of green commercial solutions, ranging from sustainable housing to algae production, which are crucial for both local and national economies.
Technical Viability
Technological Innovation:
A significant portion of the funding—£100 million—will enhance the UK’s global monitoring capacity for environmental science. This includes atmospheric, marine, polar, freshwater, and terrestrial monitoring, allowing researchers to gather critical data on how climate change is affecting different environments. These innovations will also provide insights into resource management and environmental protection strategies that are essential for sustainable development.
Scale-up of Green Solutions:
UKRI is focusing on the scale-up of clean, green technologies. The funded projects include retrofitting housing for energy efficiency, improving electronics manufacturing processes, and promoting sustainable mining of critical minerals. These initiatives will ensure that the UK’s green tech solutions are scalable, commercially viable, and ready for widespread adoption.
Environmental Viability
Sustainability Alignment:
The research projects under this initiative focus on transforming land use, enhancing soil health, and reducing agricultural emissions, aligning with global sustainability goals. The £14.5 million investment in land-use transformation and carbon dynamics will help reduce the carbon footprint of UK agriculture and improve long-term environmental sustainability.
Health and Wellbeing Focus:
In addition to addressing environmental issues, £30 million will be dedicated to new research hubs aimed at improving public health as the country transitions to a net-zero carbon economy. This dual focus on environmental and human health ensures that green growth is not only sustainable but also beneficial to the wellbeing of communities across the UK.
Scaling Potential
Investment Strategies:
The establishment of regional centres will act as a catalyst for green innovation, making these regions hubs for environmental research and technological development. As businesses and local communities adopt these new technologies, the investment will accelerate green growth and position the UK as a leader in climate tech on the global stage.
Future Expansion:
The programme’s global implications are vast, as the improved environmental science research capacity will contribute to international efforts to tackle climate change. The UK’s advancements in monitoring and green solutions could serve as a model for other nations, particularly in the field of carbon management and sustainable agriculture.
Long-Term Implications
Transformative Impact on Land Use and Climate Monitoring:
By investing heavily in environmental science research and land-use transformation, UKRI is helping to lay the foundation for long-term solutions to climate change. The insights gained from the enhanced monitoring capabilities will play a key role in shaping future climate policies and innovations.
Strategic Vision for a Green Future:
This funding initiative underscores the UK’s commitment to becoming a green energy superpower. By supporting researchers and businesses that are at the forefront of green innovation, UKRI is not only advancing the net-zero transition but also setting the stage for sustainable economic growth and climate resilience for years to come. Read More
Policy Pulse
This section includes global updates on climate change policy, governance and regulation.
Saudi Arabia is said to plan a $10B investment in hydrogen.
Saudi Arabia’s creation of Energy Solutions Co. to finance green hydrogen production marks a strategic pivot from fossil fuel dependence, positioning the kingdom as a key player in the global clean energy transition, while Denmark’s postponement of its hydrogen transmission to Germany highlights the logistical and coordination challenges in scaling Europe’s hydrogen infrastructure despite strong renewable energy ambitions.
Why it Matters: Saudi Arabia’s investment in green hydrogen and Denmark’s transmission delay both highlight the critical role of infrastructure and financing in scaling the hydrogen economy, which is essential for global decarbonization efforts. Read More
Today’s Climate Data Point
A new study published in Nature Climate Change by an international research group led by the University of Bergen evaluates the feasibility of large-scale Carbon Capture and Storage (CCS) deployment. CCS is considered crucial for achieving the Paris Agreement goals by reducing CO2 emissions and potentially removing carbon from the atmosphere.
Source: Kazlou et al., Nature Climate Change (2024)
The research examines historical analogues to project CCS deployment across different technology lifecycle phases and assesses whether the current capacity can grow fast enough to meet climate targets.
Key Findings:
Current Capacity and Planned Growth:
- The operational CCS capacity today stands at only 0.04 Gt/yr.
- Announced project plans for 2030 show potential for an 8-fold increase in capacity. However, historical trends reveal that high failure rates (88% of projects planned in 2010 failed) cast doubt on whether this growth can be realized.
Feasibility Challenges:
- With historical failure rates considered, operational CCS capacity in 2030 would only increase to 0.07 Gt/yr—far short of what is required to meet Paris Agreement-compatible pathways.
- Under optimistic scenarios where project failure rates drop to 45% and capacity plans double, a more feasible figure of 0.37 Gt/yr by 2030 could be achieved. This would align with most 2°C mitigation pathways but not the 1.5°C target.
Long-Term Deployment:
- The study finds that even if CCS reaches quasi-exponential growth rates comparable to wind energy in the early 2000s, only 44% of 2°C-compatible pathways and 10% of 1.5°C-compatible pathways fall within feasible CCS deployment limits.
- Post-2040, only a quarter of mitigation pathways are consistent with the fastest expansion rate derived from historical analogues, such as nuclear power in the 1970s.
Implications:
Technology Growth:
While CCS shows potential for significant scale-up, the historical failure rates indicate that a more cautious outlook is needed. Even under optimistic conditions, CCS alone is unlikely to fully close the gap between feasible deployment and climate targets. The study suggests that a combined effort, with CCS growth alongside other technologies like offshore wind and hydrogen, will be necessary.
Policy Considerations:
- Increasing project success rates and improving policy frameworks could help CCS scale more rapidly.
- Stronger commitments are needed to ensure CCS projects receive adequate support, particularly as the technology enters its formative and acceleration phases.
Climate Insider Analysis:
CCS remains a critical piece of the puzzle for decarbonizing carbon-intensive industries, but the feasibility of rapid deployment hinges on reducing failure rates and enhancing policy support. As 2030 approaches, achieving the necessary capacity for Paris Agreement targets will require not only bold CCS development but also parallel growth in other clean technologies. Read More
Climate Insider Intelligence: Canadian Hydrogen’s Role in a Low-Carbon Future
Image Credit: Canadian Hydrogen Association
Canada’s hydrogen sector is on the cusp of transformation, but it needs a strategic push. The Canadian Hydrogen Association’s latest report, Clean Hydrogen on the Hill, highlights the importance of federal policy alignment and collaboration between government and industry to make Canada a leader in clean hydrogen. With bold policy recommendations like expanding the Clean Fuels Fund and broadening investment tax credits, the report highlights hydrogen’s potential to power up to 30% of Canada’s energy by 2050 and create 350,000 jobs. Dive into this pivotal moment for Canada’s clean energy future! Read More
