Oil slumps, climate venture rounds explode

Hi there,

Happy Sunday. That last email was super long, so no long intro. There were a massive amount of climate funding rounds annouced this week that we need to get to too.

In today’s email:

• One story in a chart and a sentence

• Climate and energy headlines from the week

• Climate tech fundraising announcements

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ICYMI

ICYMI on Thursday, we’re running a promotion in collaboration with Renewables.org. If you invest $25 in their platform to help build Global South, we’ll match your $25. Thanks to all of you who participated so far <3

THIS WEEK IN CLIMATE TECH & ENERGY

One story in a sentence (and a chart)

• U.S. and global oil prices are turning down, though that’s likely more a function of a softening macroeconomic / inflation environment than climate and energy tech curbing demand. Link.

15+ headlines (lots of news this week)

The good

• Beyond all the energy funding coming from the IRA, the EPA also opened up $7.5 billion in grant funding under the Water Infrastructure Finance and Innovation Act (WIFIA) funding to help build critical water infrastructure projects. Link.

• Panasonic reopened a battery plant in Wakayama, Japan, to make EVs. Panasonic Energy is also investing ~$3.2 billion alongside Subaru to build a new battery factory in the Gunma prefecture with a targeted output of 16 gigawatt-hours by the end of 2030. Link.

• Stellantis also noted it will put $400 million+ into three Michigan facilities to support manufacturing more EVs. Link.

• Renewables supplied more than 60% of Germany's electricity in H1 '24, with a majority of wind and solar within the renewable category. Biomass and hydro provided ~11%, respectively; wind and solar were close to 50%. Link.

• Fervo Energy demonstrated further progress for its enhanced geothermal capabilities. At its Cape Station project in Utah, which is under development and targets 400 MW of eventual capacity, the company announced it has recently drilled 15 wells at record-breaking commercial flow rates. The company also raised more debt financing this week (covered under "other funding" below). Link.

• SLB (fka Schlumberger) also announced breakthrough results for direct lithium extraction (DTE) techniques it is using in Nevada that produces lithium faster than conventional methods and uses less land while still offering strong recovery rates from brine. Link.

• The Bureau of Land Management (BLM) approved NV Energy's Greenlink West transmission project and Arevia Power's $2.3 billion, 700 MW solar plus storage (700 MW 2.8 GWh) project. The transmission line will run ~350 miles from Las Vegas to Western Nevada near Lake Tahoe. Link.

• You can lease an EV for as little as $20 per month in Colorado, given a slew of incentives. Link.

• The U.S. now has more than 31 GW of solar module manufacturing capacity, roughly a 4x from pre-IRA times. Link.

• The Advanced Research and Invention Agency, or ARIA, out of the U.K., will provide ~$75 million for research into geoengineering approaches to cool the planet. Link.

• Google inked a deal to purchase 100,000 tonnes of CO2 from Holocene at a remarkably low cost of $100 per ton (for a total purchase price of $10 million). That price is cheaper than what current direct air capture systems offer, but the partnership extends into the early 2030s  for delivery, offering time for the technology to improve. Still a lot of TBDs here. Link. Link.

• A JV between Das & Co. and APC Holdings plans to develop an $800 million solar cell and module plant in the U.S. alongside Macquarie Capital. The facility will aim to produce 2 GW of cells and modules annually before expanding up to 6 GW. Link.

• The world's largest heat pump is being built in Helsinki to provide winter heat to buildings. It can operate at temperatures as low as -4° F. Link.

• Massive lithium deposits have now been found in Texas, too. Link.

• Batteries have helped California's grid weather heat waves this year so far. Link.

• Namibia's state-owned power utility NamPower signed a contract with two Chinese firms to build the country's largest solar power plant (~500 MW). Link.

• Iberdrola and BP agreed to build a 25-megawatt green hydrogen plant in Castellon, Spain, with a ~$16.5 million EU subsidy. Link.

The inbetweens

• Mario Draghi, the former President of the ECB, had some ~spicy~ remarks on European energy and manufacturing policy this week, noting: “If we fail to coordinate our policies, there is a risk that decarbonization could run contrary to competitiveness and growth.” Link. Link.

The bad

• Global methane emissions continue to rise, though at least they’re getting coverage. Link. Link.

• Amidst mounting signs of distress, Northvolt plans to reduce its workforce and sell a Swedish and a Polish factory for battery energy storage systems. Since it canceled a $2 billion+ BMW contract, the company has had to make some major shifts. It lost $1.2 billion last year after only losing $285 million in 2022. Its largest lithium plant is also two years delayed. Link. Link. Link.

• Motif FoodWorks is shutting down. Originally spun out of Ginkgo Bioworks, the company had raised $345 million since 2019, including a monster $226 million Series B led. Part of its challenges surrounded an IP battle with Impossible Foods. Link.

• Morgan Stanley threw in the towel on tracking whether and to what extent its financing exacerbates plastic pollution. Link.

• GE Vernova noted its wind power unit will make a $300m loss in the third quarter due to offshore wind “blade events” and delays in developing projects. Link.

• Wildfires are once again ripping through California. Link. Link.

CURATED DEALS

Larger funding rounds

💵 Infinium, a synthetic fuels (‘e-fuels’) and sustainable aviation fuel company, raised $1.1 billion from Brookfield Asset Management. The capital will help make plants that convert carbon dioxide to different fuels. The funding includes a $200 million injection into Infinium's debut plant, ‘Project Roadrunner,’ which will make sustainable aviation fuel. $850 million more was committed for additional projects based on performance and successful completion of certain milestones. More here. (U.S., Industry / Transportation)

✈️ ZeroAvia, based out of Hollister, CA, raised $150 million in Series C funding to make hydrogen-powered airplane engines. Airbus, Barclays Sustainable Impact Capital, and Saudi Arabia's NEOM Investment Fund co-led. More here. (U.S., Transportation)

⚡ Reverion, based out of Germany, raised $62 million in Series A funding to make biogas power plants less emissions-intensive by replacing combustion engines with advanced fuel cells. Energy Impact Partners led. More here. (Germany, Energy) 

🧀 Formo, based out of Berlin, raised ~$61 million in Series B funding to make animal-free cheese. Sazaby League, Seven Ventures, Woodline Partners, Lowercarbon Capital, and others invested. More here. (Germany, Food & Agriculture)

♨️ Baseload Capital, based out of Stockholm, raised ~$58.3 million in Series B funding to develop geothermal energy projects. ENGF led. More here. (Sweden, Energy)

Medium-sized funding rounds

🧪 Abolis, based out of Paris, France, raised $38.8 million in equity funding to use microorganisms to make more sustainable chemicals used in cosmetics, and other industries. BOLD (L’Oréal’s venture capital fund) and Evonik Venture Capital co-led. More here. (France, Industry)

⚛️ Fuse Energy Technologies, based out of San Leandro, CA, raised $32 million in equity funding for its fusion technology development business. Buckley Ventures, Tamarack Global, and Bracket Capital  invested. More here. (U.S., Energy)

💧 Puraffinity, based out of London, raised $22.1 million in Series A funding to remove PFAS from water. BGF, Octopus Ventures, HG Ventures, and others invested. More here. (U.K., Water)

🥩 Novameat, based out of Barcelona, raised $19.2 million in Series A funding to make plant-based chicken and beef. Sofinnova Partners and Forbion led. More here. (Spain, Food & Agriculture)

🔋 Allegro Energy, based out of Newcastle, Australia, raised $17.5 million in Series A funding to build an 800 kWh pilot storage plant for its water-based Redox Flow Batteries. The Grantham Foundation led. More here. (Australia, Energy)

🚚 aifleet, based out of Austin, TX, raised $16.6 million in Series B funding to help companies maximize trucking utilization and efficiency. Heron Rock led. More here. (U.S., Transportation)

👕 Retraced, based out of Düsseldorf, Germany, raised ~$16.5 million in Series A funding for its supply-chain tracking and compliance business targeted at the fashion and textile industry. Partech led. More here. (Germany, Materials) 

⚡ Tem, based out of London, raised ~$16.3 million in Series A funding to help UK businesses buy energy directly from renewable power projects. Atomico led. More here. (U.K., Energy)

👨‍🔧 Reonic, based out of Augsburg, Germany, raised ~$14.5 million in Series A funding for its software designed to support renewable installers from sale to installation. Northzone led. More here. (Germany, Energy)

🐝 Solasta Bio, based out of Glasgow, raised $14 million in Series A funding to make peptide-based biopesticides that target pests without harming pollinators. Forbion led. More here. (Scotland, Food & Agriculture)

📊 Elum Energy, based out of Paris, raised $13 million in Series B funding for its energy management system for renewables. Energize Capital led. More here. (France, Energy)

Smaller funding rounds

❌🪰 Catalera BioSolutions, based out of Vancouver, raised $8 million in Series A funding to make more sustainable pest-control products. The company is a spinout of Terramera. S2G Ventures led. More here. (Canada, Food & Agriculture)

⬇️ Ucaneo, based out of Berlin, Germany, raised ~$7.5 million in seed funding and grants. Smart Energy Innovationsfonds and IBB Ventures led. More here. (Germany, Carbon Removal)

🐄 Number 8 Bio, based out of Sydney, Australia, raised $7 million in seed funding to reduce livestock methane production with feed additives. More here. (Australia, Food & Agriculture)

🔋 Clean Electric, based out of Clean Electric, India, raised $6 million in Series A funding to make swappable, fast-charging batteries. InfoEdge Ventures, Pi Ventures, and Kalaari Capital invested. More here. (India, Energy)

⚡ Beebop.ai, based out of Belgium, raised a $5.5 million seed round to help electric utilities control DERs in homes. Angular Ventures led. More here. (Belgium, Energy)

⛏️ Endolith, based out of Denver, raised $5.13 million in seed funding to help miners extract more copper from their mines. Collaborative Fund and Overture led. More here. (U.S., Industry)

⬇️ Circe, based out of Boston, raised $5 million in seed funding for its carbon-negative bio-manufacturing company. ReGen Ventures, Undeterred Capital, Ponderosa Ventures, and others invested. More here. (U.S., Industry)

🤖 Reshape Automation, based out of San Francisco, raised $5 million in seed funding to help factories and warehouses adopt industrial automation technology. Ironspring Ventures led. More here. (U.S., Industry)

🌬️ Vind AI, based out of Oslo, raised $3.3 million in seed funding to help design and optimize wind farm projects. Norrsken VC led. More here. (Norway, Energy)

🔎 DC Connected, based out of Nersingen, Germany, raised ~$2.3 million in seed funding for its tech that assists in vehicle software issue diagnoses and repair guidance. Borusan Ventures, Venpace, Atlas Ventures, and others invested. More here. (Germany, Transportation)

⬇️ Brineworks, based out of Amsterdam, raised ~$2.2 million in equity funding to make green hydrogen while removing carbon dioxide from seawater via electrolyzer. Pale Blue Dot led. More here. (Netherlands, Industry / Carbon Removal)

🏠 Bling Energy, based out of Lisbon, Portugal, raised ~$2.2 million in seed funding for its residential solar business. Joaquim Sérvulo Rodrigues led. More here. (Portugal, Built Environment)

🔌🚲 Specter, based out of Brussels, Belgium, raised ~$2.2 million in equity funding to make speed pedelecs (speedier e-bikes). Fundracer Capital led. More here. (Belgium, Transportation)

Other financing rounds

🧪 Methanex, based out of Canada, will acquire Dutch-based OCI Global’s methanol business for $2.05 billion. OCI Global’s methanol business includes a focus on low-carbon methanol, ammonia, and other chemicals generated with renewable natural gas assets. More here.

♨️ Fervo, based out of Houston, TX, raised $100 million in debt funding to develop its 400 MW Cape Station project in Utah, which Fervo says is the "world's largest next-generation geothermal project.” The financing comes from X-Caliber Rural Capital, which is offering a $100 million bridge loan for Fervo to support the 90 MW phase 1 project phase, slated to finish by 2026. More here. (U.S., Energy)

⬇️ 1PointFive, based out of Houston and owned by Occidental, received up to $500 million in grant funding from the DOE’s Office of Clean Energy Demonstrations. The funds will support its South Texas Direct Air Capture Hub. More here. (U.S., Carbon Removal)

🔌 XCharge, based out of Beijing, raised $20.7 million via American Depositary Shares. The company provides DC fast chargers and other EV technologies in China and Europe. Tiger Brokers acted as the bookrunner on ADS distribution and deal. More here. (China, Transportation)

🔌 Greenlane, a JV between BlackRock, NextEra Energy Resources, and Daimler Truck North America, received $15 million in grant funding from California's South Coast Air Quality Management District to accelerate deployment of EV truck charging sites in the state. More here. (U.S., Transportation)

🛥️ Hyliion, based out of Austin, TX, received a $15+ million contract from the Office of Naval Research to test its linear generator (basically a linear motor used as an electrical generator) in naval ships or other stationary power applications. More here. (U.S., Transportation)

⛽ Illinois Institute of Technology researchers received ~$3.85 million in grant funding from the DOE’s ARPA-E program to work on technology that makes propane from carbon dioxide and electricity with high efficiency. More here. (U.S., Energy / Industry)

New funds

💵 Five Point Energy, based out of Houston, raised $1.4 billion for its fourth firm focused on sustainable infrastructure. More here. (U.S., Infrastructure)

💰 AENU, based out of Berlin, raised ~$190 million to support early-stage startups across energy technology and the carbon economy. More here. (Germany, Funds)

💰 The UK's Royal Academy of Engineering, based out of London, launched a ~$196 million in Green Future Fellowships program to support 50 climate-focused founders with £3m each over the next five years. More here. (U.S., Funds)

💸 Wind, based out of Paris, France, raised ~$33 million from the European Investment Fund for its early-stage Wind II fund, which invests in climate-oriented deeptech startups. More here. (France, Funds)

Ciao,

– Nick