🌍 Northvolt charges south #224
Out of runway, Northvolt enters thermal runaway
Earnings season shows direction energy majors are charting on climate tech
Happy Monday!
Earnings season is here, and we read through the energy majors’ earnings report calls from last week so you don’t have to — and learned about the progress, and direction, of the energy transition.
In other news, German eVTOL maker Lilium’s rough landing, the DOE’s $2 billion bet on lithium, and offshore wind is going ahead in Maine.
In deals, $500m in sustainable gas utilization technology, $368m in electric aviation across 2 deals, and $51m in glass-based thermal insulation.
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Last week, publicly-traded energy majors released their earnings reports, giving a pipeline into these companies’ finances and strategies. And because these oil and gas producers are simultaneously some of the biggest climate tech investors, these reports let us drill down into the future of the energy transition.
What happened
Why it matters
After big decarbonization announcements around 2020, oil and gas pumped up investment in climate tech — but decelerated in the past two years, declining 10% YoY, mirroring broader macroeconomic and climate tech investment trends.
Now, taking stock of these announcements, the energy majors aren’t moving ahead with the speed needed to meet net-zero goals (which shouldn’t come as a surprise). Throughout the year, oil and gas companies and major investors have been doubling down on an “energy security” narrative, code for: we’re not done with oil and gas yet. With energy demand on the rise for the first time in nearly two decades in the US, and growing in the Global South as well, energy majors are seeing an opportunity to continue business as usual, despite the increasing urgency to reduce emissions.
Still, the mixed bag of earnings results does indicate which climate tech verticals some of the biggest players in the space consider to be profitable — and which they have concerns about. BP gave few reasons for cutting its hydrogen portfolio, but there’s no question that the sector has been grappling with difficult questions, from the economics around production and logistics to the reality of offtake demand (or lack thereof). Exxon specifically said it was awaiting final guidance on 45V regulations for hydrogen production credits to make an investment decision on its hydrogen project. Meanwhile, Phillips 66 blamed “market conditions” for delaying its SAF production.
Still, the majors’ investment announcements show that more mature tech like solar has become a safe and profitable bet, and that CCS is well on its way, too. Of course, oil and gas companies have a clear use case for CCS, such as enhanced oil recovery (EOR), which allows them to capture and reinject CO2 into mature oilfields to recover more oil.
Key takeaways
⚡ Crusoe Energy Systems, a Denver, CO-based vertically integrated data center and energy platform, raised $500m in Growth funding from Founders Fund and Felicis.
✈️ Beta Technologies, a South Burlington, Vermont-based electric aviation manufacturer, raised $318m in Series C funding from Qatar Investment Authority, Fidelity (Management and Research Company), TPG Rise Climate, and United Therapeutics.
🏗 Luxwall, a Ypsilanti, MI-based glass-solutions provider for heat loss reduction, raised $51m in Series B funding from Barclays Sustainable Impact Capital, Climate Investment, 2150, Baruch Future Ventures, Breakthrough, and other investors.
☔ Neara, a Sydney, Australia-based power grid modeling and digital twin software provider, raised $45m in Series C funding from EQT, Partners Group, Prosus Ventures, Skip Capital, and Square Peg Capital.
⚡ eSmart Systems, a Halden, Norway-based AI solutions for energy infrastructure monitoring platform, raised $32m in Series C funding from Tilt Capital Partners, Arosa Capital Management, Energy Impact Partners, Equinor Ventures, Future Energy Ventures, and other services.
⚡ Andium, a Queens, NY-based O&G monitoring solutions provider, raised $22m in Series B funding from Aramco Ventures, Climate Investment, and Intrepid Financial Partners.
🏭 RedoxBlox, a San Diego, CA-based thermochemical energy storage developer, raised $41m in Series A funding from Prelude Ventures, Breakthrough, Imperative Ventures, Khosla Ventures, and New System Ventures.
⚡ Flower, a Stockholm, Sweden-based AI-based grid stabilizer & asset manager, raised $22m in Series A funding from Northzone, 82an Invest, Giant Ventures, Sony Innovation Fund, and other investors.
✈️ Beyond Aero, a Toulouse, France-based hydrogen-powered electric business aircraft developer, raised $20m in Series A funding from Bpifrance and Giant Ventures.
🏠 RIFT, an Eindhoven, Netherlands-based iron fuel to generate heat technology developer, raised $12m in Series A funding from Brabant Development, Energy Transition Fund Rotterdam, Invest-NL, OostNL, PGGM, and other investors.
🌾 Agtonomy, a San Francisco, CA-based autonomous agricultural vehicles manufacturer, raised $10m in Series A funding from Autotech Ventures, Allison Ventures, Black Forest Ventures, and Rethink Food.
🏠 Vamo, a Köln, Germany-based heat pump seller and marketplace service provider, raised $8m in Seed funding from Caesar Ventures, Extantia, GET Fund, Neosfer, and Realyze Ventures.
🍎 Relocalize, a Montréal, Canada-based hyper-local food supply system platform, raised $6m in Seed funding from Cycle Momentum, Desjardins Capital, RGS Ice, Waterpoint Lane, and i4 Capital.
💨 CREW Carbon, a New Haven, Connecticut-based carbon mineralization for storage service provider, raised $5m in Seed funding from Counteract, ANIMO Ventures, Carbon Drawdown Initiative, Connecticut Innovations, Echo River Capital, and other investors.
📦 Earthodic, a Brisbane, Australia-based bio-based coatings technology provider, raised $4m in Seed funding from FTW Ventures, Branch Venture Group, Circulate Capital, Closed Loop Partners, Investible, and other investors.
🌱 Bendi, a London, England-based ESG and supply chain platform, raised $1m in Pre-Seed funding from Midven, Chasing Rainbows, Heartfelt VC, and Innovate UK.
⚒️ Lithium Americas, a Vancouver, Canada-based lithium mining service provider, raised $2.3bn in Debt funding from the US Department of Energy (DOE).
✈️ Eve Air Mobility, a São Paulo, Brazil-based electric vertical take-off aircraft developer, raised $50m in Debt funding from Citi.
🌾 Arya.ag, a Noida, India-based agritech credit provider, raised $20m in Debt funding from US International Development Finance Corp.
✈️ Lilium, a Weßling, Germany-based electric regional airplane manufacturer, announced that it was filing for insolvency.
⚡ Ultra Safe Nuclear Company, a Seattle, WA-based microreactor technology developer, announced that it has filed for bankruptcy.
KKR and Energy Capital Partners, New York, NY-based and Summit, NJ-based investment firms, announced a $50bn strategic partnership to support and invest in power generation for data centers.
Verdane, an Oslo, Norway-based investment firm, held a $760m final close for their second fund that will across decarbonization solutions.
Socium Ventures, a New York, NY-based investment firm, announced a $300m second fund that will invest in climate tech companies.
Crosscut Ventures, a Santa Monica, CA-based investment firm, announced a $100m fund that will invest across frontier tech solutions including energy and space.
Tamarack Global, a Greenwich, CT-based investment firm, held a $72m final close for their second opportunities fund that invests in deeptech climate solutions.
Aviva Investors, a London, UK-based investment firm, announced a carbon removal fund that will invest in both nature-based and engineered removal technologies.
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The UK government confirmed it will implement a Carbon Border Adjustment Mechanism (CBAM), similar to the EU’s recent policy. CBAM imposes tariffs on high-carbon imports like steel, cement, and fertilizers, aiming to create a level playing field for domestic industries. The mechanism, slated for rollout in 2026, is part of the UK’s broader effort to meet its net-zero targets by 2050, preventing "carbon leakage" and incentivizing cleaner production methods abroad.
German eVTOL maker Lilium has filed for insolvency amid persistent cash flow issues, impacting its plans for electric jet production. The company, once valued at $3bn, struggled with mounting R&D costs and limited investor confidence, signaling that the nascent eVTOL market, despite the FAA’s recent regulatory approval, still faces high costs and complex tech development challenges.
The Department of Energy announced a $2.3bn loan to Lithium Americas Corp to develop the Thacker Pass mine in Nevada, a site projected to produce 80,000 tons of lithium annually. In parallel, ARPA-E has awarded $36 million across 13 projects focused on next-gen battery technologies for electric vehicles. These two funding announcements support enhancing battery recycling and developing US-based battery supply chains, with the goal of boosting critical mineral supply for the EV market.
Meanwhile, Argentina has inaugurated its first commercial lithium hydroxide production plant, marking a significant step in the country’s efforts to capitalize on its vast lithium reserves. This facility aims to produce 25,000 tons of lithium hydroxide annually, bringing Argentina into the market as a competitor to China and Chile in the critical mineral’s supply chain.
Avangrid Renewables and Invenergy have secured leases in the Maine offshore wind auction, positioning them to develop up to 6.8GW of floating wind capacity. This project, located in deep coastal waters, represents one of the largest steps toward deploying floating wind technology in the US. The leases bring the US closer to its 2035 goal of 15GW of floating wind power, an ambitious target set to meet clean energy demand in densely populated coastal states.
Volvo is taking full ownership of its battery production joint venture with Northvolt after the latter fell short on financing obligations. With Northvolt now shifting focus to other projects amid its persisting liquidity crisis, Volvo plans to seek new partners to continue developing its Gothenburg-based battery production plant for electric vehicles. This reveals the challenges in developing battery manufacturing, from high costs to unrealistic timelines.
China's electric carmaker BYD has reported higher quarterly revenue than Tesla for the first time, after closing in within the last year. BYD's revenue rose 24% to $28.2bn, compared to Tesla’s $25.2bn, with its growth driven by strong domestic demand for BYD's diverse lineup of electric and hybrid vehicles, supported by a vertically integrated supply chain and favorable government subsidies. BYD's success highlights the continued turbulence in the global EV race.
In nuclear news, several countries are making strides in addressing nuclear waste management. Sweden received court approval to construct a permanent burial site for radioactive waste. Meanwhile, South Bruce in Canada has voted in favor of hosting a proposed nuclear waste repository, reflecting local support for safe disposal solutions. On the other hand, disputes regarding a nuclear waste site's location in Germany remain unresolved. These developments highlight the growing attention on effective nuclear waste management as nations seek to harness the power of nuclear energy.
A thorough life-cycle assessment of CCUS.
Go Maroons! UChicago launched a new undergraduate-focused climate institute.
Real carbon footprint? A Nike emission-offset project reveals broader issues with the carbon credit market.
Fake social media accounts are promoting Azerbaijan ahead of IRL COP29.
Seeding the future: Over 30,000 new seeds were added to the Svalbard Global Seed Vault.
An EP(I)C new paper from CREO dives into EPC contracts for successful climate projects.
Scientists are GMO-ing bacterial DNA to replace polluting chemical fertilizers.
MIT released a new paper on fusion, complete with cost models and market analysis.
Blossoming issues: Warmer temperatures are causing summer plants to produce earlier and fewer flowers and fruits.
The Lancet has a new climate-meets-public health tracker.
The IEA renewed its Energy Technology Perspectives, a guidebook to clean energy technology, for 2024.
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📅 Black Tech Renaissance: RSVP for the AI, Growth, and Company Building event at Houston’s Ion Innovation District on November 14th, celebrating Black Tech leadership with expert panel discussions, co-sponsored by non sibi ventures and others.
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💡 Circular Economy Solutions Challenge: Apply by December 5th to pilot your climate solutions on Governors Island, to access its waterfront, resilient park, and historic sites to test products for climate mitigation, adaptation, and environmental justice for 3-12 months.
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