Deep Dive: Breakthrough Energy 2024 Annual Report

The Dawn of the Deployment Era

The Breakthrough Energy 2024 Annual Report has been released during a very relevant time for the energy transition. Founder Bill Gates frames 2024 as the year climate tech entered its “deployment era,” a period where innovative technologies are moving beyond pilot projects and into full-scale commercial deployment. Gates draws a powerful analogy to his transition from Microsoft to global health philanthropy in the early 2000s. At the time, millions of children were dying from preventable diseases, and existing vaccines weren’t reaching the people who needed them most. The solution was scaling—not inventing new medicines, but ensuring they reached the necessary populations. Gates believes the same approach is critical for the climate tech sector today.

“Climate tech has now evolved to the stage where green premiums are becoming golden opportunities,” Gates asserts. With investor sentiment shifting and more corporations seeing climate tech as a core component of their business strategy, the groundwork is set for rapid deployment. However, significant challenges remain, particularly in scaling technologies and addressing economic and policy barriers.

From “Garage Innovation” to Global Impact

Breakthrough Energy’s Discovery initiatives are focused on finding and supporting climate innovators at the very earliest stages of technology development. According to the report, climate innovation often starts in unconventional places—”garages” or university labs, where brilliant minds are tinkering with breakthrough ideas. One of the key mechanisms for fostering this innovation is the BE Fellows program, which has supported more than 100 innovators across 16 countries since 2021.

The program helps fill a critical gap for climate innovators who are not yet ready for venture capital but need early-stage support. Fellows gain access to grant funding, a world-class curriculum, and the Breakthrough Energy network, which connects them to business and technical advisors.

• PhD to CEO Pathway: Many early-stage climate tech innovators lack the resources or business expertise to scale their innovations. Through programs like BE Fellows, they receive guidance on navigating the inevitable challenges of taking a product from lab prototype to commercial reality.
• Expanding the Ecosystem: In 2024, Breakthrough expanded its Discovery efforts globally, especially focusing on emerging markets like Southeast Asia. The region is rich in talent and technical universities but faces significant funding gaps. By supporting climate innovation in Southeast Asia, Breakthrough Energy aims to tackle emissions while fostering economic growth.

Key Figures:

• 100 Fellows across 16 countries supported since 2021.
• $250 million raised in follow-on funding for Fellows since the program’s inception.

Patient Capital and Collaborative Investment

Climate tech is one of the most attractive sectors for venture capital in 2024, with Breakthrough Energy Ventures (BEV) leading investments across diverse fields like clean energy, green manufacturing, and sustainable agriculture. Over the past decade, BEV has invested $3.5 billion in over 110 climate tech companies, aiming to scale breakthrough technologies. However, the report emphasizes that capital alone won’t solve the climate crisis; patient, hands-on involvement from investors is critical.

• Beyond the Checkbook: The concept of patient capital goes beyond writing checks—it involves offering mentorship, technical assistance, and operational expertise to help fledgling companies overcome challenges. Gates highlights that early-stage companies benefit most from investors who are willing to collaborate deeply, stepping into the trenches to problem-solve.
• Fusion Energy as a Case Study: One of the most exciting areas of investment is in fusion energy. Fusion is often referred to as the “holy grail” of clean energy because of its potential to provide virtually limitless, carbon-free energy. Yet, it’s an area many investors shy away from due to its complexity. To help investors understand the field, BEV’s team prepared a 100-page technical diligence report that explores everything from the economics of building fusion reactors to the advanced superconducting magnets required for fusion reactions.

Collaborative Investment Strategies:

• Commonwealth Fusion Systems: Developed high-temperature superconducting magnets to make fusion economically viable.
• Type One Energy and Zap Energy: Part of BEV’s portfolio focusing on advancing fusion technologies at scale.

Navigating the “Valley of Death”

The deployment stage is often referred to as the “valley of death” for climate tech. Even after technologies are discovered and developed, many fail to scale because of challenges in funding, regulatory approval, or infrastructure. Breakthrough’s Catalyst program is designed to help companies bridge this gap by offering both capital and hands-on project management expertise.

• First-of-a-Kind (FOAK) Projects: One of the most significant barriers to scaling climate tech is the challenge of deploying FOAK projects—those that are economically viable on paper but fraught with risks in execution.
• Funding and Expertise: Catalyst’s approach is twofold: provide funding to cover capex (capital expenditures) and offer expert guidance on engineering, procurement, and construction (EPC). These elements are critical in ensuring that projects are delivered on time and within budget.
• Major Focus Areas: In 2024, Catalyst zeroed in on five key areas for climate tech deployment:
  1. Clean hydrogen,
  2. Long-duration energy storage (LDES),
  3. Sustainable aviation fuel (SAF),
  4. Direct air capture,
  5. Industrial decarbonization.

Key Deployments:

• Ottana Project: A CO2 battery in Sardinia that will provide energy storage and grid services once operational.
• Infinium’s Project Roadrunner: A sustainable aviation fuel project that will convert waste CO2 and renewable power into low-carbon fuels, supported by a $1.1 billion commitment.

The Politics of Climate Tech in 2024

The 2024 report highlights that the global political landscape has become increasingly favorable for climate tech deployment. Governments, particularly in the U.S. and Europe, are moving from promises to projects, implementing large-scale policies and funding mechanisms to support the clean energy transition.

• United States: The Inflation Reduction Act (IRA) and Bipartisan Infrastructure Law (BIL) have catalyzed unprecedented levels of public and private capital into the U.S. clean energy market. In 2023 alone, the IRA unlocked $239 billion in clean energy investments, a 40% increase from 2022.
• European Union: Europe continues to be a leader in climate policy through the European Green Deal and its new Clean Industrial Deal. These policies are designed to accelerate the construction of climate tech factories and decarbonization projects across the continent.
• United Kingdom: The election of a new Labour government in July 2024 has put the energy transition at the center of the UK’s economic growth strategy. The UK government has set an ambitious target to decarbonize the power sector by 2030, five years earlier than the previous government’s target.

Key Policy Initiatives:

• $1 trillion in private investment expected through IRA-related tax credits.
• $40 billion boost to clean hydrogen through the U.S. Department of Energy’s regional hydrogen hubs.

Opportunities in Corporate Partnerships

As Gates notes, corporate engagement with climate tech is shifting from mere sustainability initiatives to full-scale business strategies. The report features prominent examples of companies that are taking bold steps to integrate climate technologies across their operations:

• Siemens is working to decarbonize its global real estate footprint by 2030. The company’s investment in LuxWall’s vacuum-insulated windows is expected to pay back within 5–8 years, even without government subsidies.
• American Airlines has partnered with Breakthrough Energy to tackle aviation-related emissions. The airline is working with companies like ZeroAvia (hydrogen-electric engines) and Infinium (sustainable aviation fuel), positioning itself as a leader in aviation decarbonization.

These corporate pioneers are setting the stage for others to follow, helping to build a more sustainable future while positioning themselves at the forefront of their industries.

Challenges: Overcoming the Barriers to Scaling

While the opportunities are vast, the challenges remain substantial:

• Green Premiums: Despite advancements, many climate technologies still carry a “green premium,” making them more expensive than their fossil-fuel counterparts. For example, sustainable aviation fuel can reduce emissions by up to 90%, but production costs are still higher than conventional fuel.
• Infrastructure Bottlenecks: Grid infrastructure is lagging behind the pace of renewable energy development. In much of the world, the transmission capacity needed to move clean energy from where it’s generated to where it’s needed is outdated or non-existent. This limits the scalability of new wind and solar projects.
• Policy Uncertainty: Regulatory frameworks remain complex, especially in the U.S. Supreme Court’s decision to roll back the “Chevron Doctrine,” which shifts regulatory authority from experts in agencies like the EPA to Congress. This could slow down clean energy projects.

Climate Insider Analysis

The 2024 Breakthrough Energy Annual Report reflects a monumental shift in how climate technologies are being perceived and deployed. We are witnessing a critical juncture where innovations are no longer science experiments but science products—commercially viable solutions ready to scale. The report emphasizes that while the innovation pipeline is robust, the challenge now lies in scaling these technologies fast enough to meet global net-zero targets.

For corporate leaders and investors, the message is clear: climate tech is not just a tool for reducing emissions but a strategic asset that will define the future of their industries. Companies like Siemens and American Airlines are showing what it means to “future-seize” rather than just “future-proof.”

However, the road ahead is fraught with challenges. From overcoming green premiums to scaling infrastructure, there is still much work to be done. Yet, the alignment of policy, corporate engagement, and venture capital investment suggests that the tools to meet these challenges are in place—if the right partnerships and investments are made today.

As we move into 2025, the key question is: who will be the next wave of companies and investors to seize this golden opportunity? Will they simply meet their net-zero commitments, or will they lead the charge into a new industrial revolution defined by clean, sustainable technologies?

Featured Image: Credit: Breakthrough Energy