🌎 Europe's nuclear power shift #247

Happy Tuesday!

European countries once firmly anti-nuclear are now reversing course, with a wave of historic policy shifts in just the past two weeks. As the EU pushes forward with decarbonization and reindustrialization, atomic energy is returning as a pillar of the bloc’s clean energy future.

In deals, $75m for EV manufacturing, $56m for battery energy storage projects, and $27m for ESG software.

In other news, the UK and EU move to link carbon markets, Microsoft signs a record low-carbon cement deal, and EV automakers making moves.

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An (E)U-turn on nuclear

Once politically radioactive, nuclear is quietly reemerging as a more stable element in Europe’s energy playbook. Over the past two weeks, a flurry of pro-nuclear moves from Germany, Belgium, and Denmark signals a turning point in the bloc’s stance on fission, as part of a broader chain reaction pushing the energy source back into the mainstream.

What happened

In the past few weeks, we’ve seen:

Germany agree to drop its opposition to nuclear energy in EU-level policymaking, allowing the bloc to treat nuclear on par with renewables in legislation. This marks the end of a years-long standoff with France over classifying nuclear as a “low-carbon” energy source — and could unlock access to innovation funding, tax credits, and other incentives that nuclear projects have long been excluded from. While Berlin isn’t reversing its domestic nuclear phaseout, it’s pledged to “respect” other countries’ energy choices and also opened the door to new tech like small modular reactors (SMRs).
Belgium formally repeal its two-decade-old nuclear phaseout law, clearing the way for new reactor development and lifetime extensions for its remaining fleet. Backed by a broad political coalition, the move was framed as a pragmatic step toward greater energy independence and decarbonization.
Denmark, long a renewables-first country with an outright ban on nuclear since 1985, announce it will re-evaluate that position. The government plans to study the potential role of SMRs as it looks to prioritize grid stability and energy security.

These countries join Italy (which approved plans to reintroduce nuclear power for the first time since its 1987 ban), Switzerland (also began the process of lifting its ban on new reactors), and even Japan (unveiled an energy plan to double its nuclear share by 2040), in announcements within the past year alone.

Why it matters

The momentum behind nuclear has been building for a while. After the Chernobyl, Three Mile Island, and Fukushima disasters, political backlash led many countries to ban or phase out nuclear power. But the tide has been turning: Around the world, governments that once opposed nuclear are reassessing its role in decarbonization, driven by the need for a firm baseload to complement renewables, in addition to energy independence and security, amid rising energy demand.

In the EU especially, nuclear could help address a complex, high-stakes challenge: securing affordable energy after the Russia-Ukraine shock, hitting 2030 decarbonization targets, and reindustrializing a bloc that’s fallen behind global peers.

It’s no secret that European industrial production has plateaued over the past few decades, and dropped further in recent months. In response, the bloc launched the €100bn Clean Industrial Deal to reboot energy and industry with more carrots and fewer sticks. Often, and especially right now as we’ve seen with AI, a major bottleneck for industries is access to power. Already, European industry is paying energy prices up to 3x higher than in the US. (However, one PWC report found that if Germany had kept its 2010 nuclear power plants in operation, the average electricity price would be €18/MWh lower.)

With protectionism rising — Trump just floated a 50% tariff threat, while EU-US trade tensions are heating up — the pressure is on to build more domestically. That includes energy systems that are not just clean, but sovereign. Nuclear, with its high capacity factor and fuel that can be stockpiled for years, checks both boxes.

Germany’s new move will help open the door for nuclear at the EU level. It can unlock green bond eligibility, concessional financing, and innovation funds. That could help bend the cost curve, and if support continues, possibly pave the way for other pro-nuclear reforms, like bloc-wide licensing or permitting, which would offer vendors a single European market to build into. With over 50 of nuclear projects across the EU, the effects could be wide-ranging.

What’s next

Support ≠ deployment. High cost overruns and delays remain a barrier for nuclear projects — still standing between plans and reality. Cost discipline will be key for projects becoming operational. Meanwhile, China and South Korea have figured this out better than the West, as plants there are built at roughly one-third the cost.
Timing, timing, timing. Nuclear build timelines are long. It’s likely 5-10 years just to break ground, then another 5-10 to go live. So most new nuclear won’t even come online before 2030, so might not be able to help the EU meet its decarbonization goals — or assuage near-term affordability concerns.
In the US, nuclear policy hangs in the balance. Conflicting signals surround US nuclear. While the Trump administration says it’s pushing ahead for nuclear, the revised budget that the House narrowly passed last week takes aim at clean energy. Many clean energy incentives face rollbacks, although advanced nuclear projects and expansions will still qualify for PTC (45Y) and ITC (48E) if they start construction by the end of 2028. The existing zero-emission nuclear PTC (45U) will end in 2031, earlier than planned but later than initially proposed. On one hand, exemptions for restarts and uprates, plus transferable credit language, help, but cuts to the LPO could hurt. Meanwhile, on Friday, US President Donald Trump also signed four executive orders aimed at speeding up deployment of next-gen nuclear technologies in the country.

Deals of the Week (5/19-5/25)

Late-Stage / Growth

🚗 Euler Motors, a New Delhi, India-based EV manufacturer, raised $75m in Series D funding from HeroMotoCorp and British International Investment.

💸 Novisto, a Montréal, Canada-based ESG software platform, raised $27m in Series C funding from Inovia Capital, SCOR Ventures, Sagard, and White Star Capital.

⚡ Arenko, a London, England-based energy storage and optimization developer, raised $12m in Growth funding from HICO Investment Group.

Early-Stage

⚡ SparkCharge, a Somerville, MA-based EV fleet charging provider, raised $16m in Series A funding from Monte’s Fam, Cleveland Avenue, Collab Capital, Elemental Impact, MarcyPen, and other investors.

⚡ Rivan Industries, a London, England-based modular synthetic fuel plant developer, raised $13m in Seed funding from Plural, NFDG, and 20VC.

💨 Alt Carbon, a Bengaluru, India-based carbon capture technology developer, raised $12m in Seed funding from Lachy Groom and Shastra VC.

🔋 GDI, a Rochester, NY-based developer of silicon anodes for lithium-ion batteries, raised $12m in Series A funding from Helios Climate Ventures, EIT InnoEnergy, and Impact NY.

🍎 Freshflow, a Berlin, Germany-based AI-powered food supply chain software, raised $7m in Seed funding from Caesar Ventures, Capnamic Ventures, Catatumbo Capital, Venture Stars, and World Fund.

🏭 Sensmore, a New Lambton, Australia-based autonomous machinery retrofitter, raised $7m in Seed funding from Point Nine Capital, Acequia Capital, Entrepreneur First, Prototype Capital, and Tiny Supercomputers Investment Company.

⚡ Rhizome, a Washington D.C.-based grid resilience software, raised $7m in Seed funding from Base10 Partners, CLAI Ventures, Convective Capital, El Cap Holdings, Everywhere Ventures, and other investors.

🔋 Sention Technologies, a London, England-based AI-powered diagnostics platform for batteries, raised $5m in Seed funding from Twin Path Ventures, Doral Energy-Tech Ventures, Endgame Capital, Energy Revolution Ventures, G. K. Goh, and other investors.

Other

🔋 Field, a London, England-based battery energy storage project developer, raised $56m in PF Debt funding from ING Group and Rabobank.

🧱 Converge, a London, England-based construction data intelligence platform, raised $23m in Debt funding from ABN AMRO, Climate Investment, Force Over Mass Capital, J-Impact, Move Energy, and other investors.

💨 Catalyxx, a Chesterfield, MO-based bioethanol conversion technology developer, raised $3m in Debt funding from Axon Partners Group.

📦 Sparxell, a Cambridge, England-based biodegradable pigment manufacturer, raised $2m in Grant funding from European Innovation Council.

⚒️ TXNM Energy, an Albuquerque, NM-based electric utility service, raised PE Buyout funding from Blackstone Group.

Exits

🔋 Li-Cycle, a Toronto, Canada-based lithium-ion battery recycling service, filed for Bankruptcy / Out of Business.

♻️ DeliverZero, a New York City, NY-based reusable containers logistics network service, was acquired by Minnow Technologies for an undisclosed amount.

☀️ Bentek Corporation, a San Jose, CA-based solar solution tracking software, was acquired by Nextracker for $78m.

Can’t get enough deals? See full listings and deal analytics on Sightline Climate.

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In the News

The UK and EU plan to link their emissions trading systems (ETS), aiming to harmonize carbon pricing and exempt each other from their Carbon Border Adjustment Mechanisms (CBAM). While the linkage could harmonize carbon pricing and ease regulatory friction, few details have been released. Meanwhile, the EU is reviewing its ETS to address carbon leakage, include removals, and possibly expand to municipal waste incineration.

The UK has introduced legislation to establish a Contract for Differences-style mechanism to support sustainable aviation fuel (SAF) producers. The policy guarantees a fixed price for eligible SAF, funded by a levy on aviation fuel suppliers. This move seeks to provide critical price certainty ahead of the UK's 2025 SAF mandate, signaling growing public investment in SAF infrastructure by the UK..

Microsoft has signed a binding agreement to purchase environmental attribute certificates (EACs) for 622.5kt of low-carbon cement from Sublime Systems over 6-9 years — the biggest cement news of the year. The contract gives Microsoft priority access to physical deliveries for its infrastructure projects like data centers and leverages a novel EAC model that allows it to claim emissions reductions even when direct use isn’t possible.

In EV news, Honda is pivoting its strategy by cutting $20bn in EVs and doubling down on hybrids, amid slowing EV demand, regulatory changes, and increased competition following failed merger talks with Nissan. Meanwhile, Chinese EV maker BYD is rapidly gaining ground in Europe, challenging Tesla’s dominance by outpacing the legacy automaker in EV sales last month. Additionally, Chinese battery maker CATL raised $4.6bn in its Hong Kong IPO – the largest of the year – and plans to build a new factory in Hungary to expand its European footprint. The dual moves show the urgency for Western automakers to adapt or risk losing ground in the accelerating global clean transport race.

Equinor’s $5bn Empire Wind project off the coast of New York is back on track after the US reversed a month-long construction halt ordered by the Trump admin. The decision follows pressure from state and international leaders, who emphasized the project’s economic and energy significance amid growing uncertainty for offshore wind. While the industry continues to face political headwinds, the move signals that heavily invested projects may still advance.

Canada’s largest pension fund, CPPIB, has quietly dropped its net-zero by 2050 commitment, citing legal developments and the complexity of its portfolio. While CPPIB has backed major climate tech deals in recent years, including Fervo, Hydrostor, and Kobold, it now argues that rigid climate targets could hinder its investment strategy, which has already drawn criticism from shareholder groups.

BP has withdrawn from its 250MW joint hydrogen venture with HyCC in Rotterdam. HyCC will continue solo with a similarly sized H2Next project, aiming to produce 25,000 tonnes of green hydrogen annually. The move reflects a broader shift toward smaller, more flexible, industry-linked hydrogen projects, while highlighting persistent challenges around project financing, long-term subsidies, and binding offtake agreements.

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Opportunities & Events

💡 VINE Connect Applications: Apply by June 13, 2025 to participate in a program designed for up-and-coming agricultural technology providers, from VINE Connect, to connect them to sell to farmers across California.

📅 Climate Rise: 3rd Edition 2025: Join on May 27, 2025, at Idealist.org in New York City, for this participant-driven unconference brought together professionals across sectors to collaborate on climate solutions.

📅 Debating the AI / Climate Paradox: Join us on May 28, 2025, at the Renold Building in Manchester, for an engaging panel discussion hosted by Sustainable Ventures and the Turing Innovation Catalyst to explore the intersection of artificial intelligence and climate change with experts from academia and industry.