Climate Tech - Energy

Moving industry forward with next-generation advancements in energy storage and transmission.

Overview

The science is settled. Human activities that emit greenhouse gasses (GHG) are warming the planet and causing devastating climate change. Current GHG emissions levels must be halved by 2030 and net-zero GHG emissions must be reached by 2050 to contain global warming at a sub-catastrophic level. As fossil fuel-based energy production is a leading cause of GHG emissions, clean energy technologies play a vital role in a sustainable future for the planet.

The cost of solar and wind energy has fallen considerably over the past decade and no longer yields a significant cost disadvantage compared to fossil fuels. Next-generation renewable technologies such as waste-to-energy, advanced biofuels, fusion energy, geothermal, wave, and tidal, etc. are still at a nascent stage but can be expected to follow similar declining cost principles as they scale. Next-generation advancements in energy storage is also vital in matching the intermittent supply of renewable energy with inflexible demand. As these new technologies scale, carbon capture technologies and energy optimization solutions could still play an important role in reducing GHG emissions from traditional energy production over the next decade.

What's driving this industry?

Industry Updates

LanzaTech converts carbon emissions into plastic bottles
Sep 23
LanzaTech and 21 others receive federal funding for sustainable aviation fuel
Sep 23
TAE Technologies announces a new Power Management division
Sep 21
View all updates
Market Sizing

The US market for the ClimateTech-Energy industry could reach USD 20.7–30.1 billion by 2025

Conservative case

USD 20.7 Bn

Base case

USD 24.2 Bn

Expansion case

USD 30.1 Bn

USD billion1520253035202020212022202320242025
View details

COVID-19 IMPACT

The Covid-19 pandemic has made consumers more open to shifting behavior toward environmental protection.

  • In a April 2020 survey, 48% of respondents said that the pandemic had made them more concerned about the environment.

  • Environmental activists are urging governments to pass Covid-19 stimulus packages that invest in a ”Green Recovery”.

  • Several ClimateTech-Energy startups adapted to the Covid-19 pandemic by offering new services to customers.

    • Bloom Energy: Started offering healthcare facilities a new temporary power solution with its proprietary solid oxide fuel cell technology.

    • LanzaTech: Produced hand sanitizers and disinfectants from ethanol byproducts of its biorefinery operations.

    • BBOXX: Offered discounts to support underprivileged households.

    • Innowatts: Claimed that its artificial intelligence (AI)-based grid management solution was able to accurately predict large fluctuations in electricity demand during lockdowns.

At the same time, some ClimateTech-Energy startups experienced business hardships due to the pandemic.

  • NRG’s Petra Nova carbon capture and storage (CCS) facility and Hydroster’s proposed compressed air renewable energy storage facility in Australia were shut down as the pandemic rendered them uneconomical.

  • Oxford PV’s plans to commence production at its new facility were postponed by one year due to Covid-19-led shipping delays.

Market Mapping

Next-Gen renewables and energy storage startups dominate the industry

The ClimateTech-Energy sector is dominated by the Next-Generation Renewable Energy and Energy Storage and Transmission segments; both contain the highest number of startups in the industry and have also received the most funding out of the top 60 highest funded startups in the sector (as of February 2021).

Overall, there are comparable numbers of startups at the pre-seed and seed stages and the early and growth stages. However, a majority of the startups in the Next-Generation Renewable Energy and Energy Storage and Transmission segments are in the pre-seed and seed stages, whereas, most of the startups in the Carbon Capture, Utilization, and Storage (CCUS) and Energy Optimization and Management Software segments are in the early and growth stages.

Incumbents
Growth
Early
Seed
Pre seed
Carbon Capture, Utilization, and Storage (CCUS)
?
Renewables: NextGen Solar, Wind, Hydro
?
Renewables: NextGen Bioenergy
?
Renewables: Third-generation
?
Energy Storage: Stationary
?
Energy Storage: Non-stationary
?
Energy Optimization and Management Software
?
NAWATechnologies
NAWATechnologies
NAWATechnologies
NAWATechnologies
NAWATechnologies
NAWATechnologies
NAWATechnologies
BP
Shell
ExxonMobil
Oxy
Aker Solutions
Saipem
Climeworks
Carbon Clean Solutions
Pond Technologies
Carbon Upcycling Technologies
Storegga Geotechnologies
Carbfix
LanzaTech
Svante
Carbon Engineering
Twelve
C-Capture
NewCO2Fuels
Prometheus Fuels
CarbonFree
Remora
Industrial Climate Solutions
TerraCOH
Global Thermostat
Aker Solutions
BBOXX
Oxford PV
Natel Energy
Ubiquitous Energy
Sunroof
Heliogen
NEXT Energy
SolarWindow Technologies
Insolight
Total
Eni
Anaergia
Enerkem
Blue Sphere
Pond Technologies
LanzaTech
Twelve
Woodland Biofuels
NewCO2Fuels
Synthetic Genomics
Ocean Power Technologies
Dandelion Energy
AW-Energy
Net Power
Eavor
Minesto
Ocean Renewable Power Company
Quaise
TerraCOH
TAE Technologies
Commonwealth Fusion Systems
General Fusion
Tokamak Energy
First Light Fusion
Zap Energy
Shell
Total
Tesla
EOS Energy Storage
Fluence
ESS
Nanoramic Laboratories
24M Technologies
Natron Energy
Hydrostor
Moixa
Quidnet Energy
Azelio
Moxion Power
Form Energy
Energy Vault
Ambri
Malta
Ionic Materials
TerraCOH
Tesla
Panasonic
LG Energy
CATL
Samsung
Romeo Power
Northvolt
QuantumScape
Sila Nanotechnologies
Solid Power
StoreDot
Ionic Materials
Group14 Technologies
Gridtential Energy
NAWATechnologies
Advano
InoBat
Nanotech Energy
Nyobolt
Octopus Energy
Schneider Electric
General Electric
Landis+Gyr
Itron
Cisco
Stem
Arcadia
AutoGrid
Origami Energy
Twaice
Innowatts
Moixa
DEPsys
ConnectDER
WeaveGrid
ION Energy
Habitat Energy

The Disruptors

Significant funding at very early stages of operation

The capital intensive nature of the industry has led many ClimateTech-Energy startups to raise significant funding at very early stages of their operations. The top 60 highest-funded ClimateTech-Energy startups raised an average of USD 219 million in combined pre-seed and seed funding as of February 2021.

This appetite for cash has prompted many ClimateTech-Energy startups to seek public funds fairly quickly, sometimes even while the business is still at conceptual stages. As of February 2021, nine of the 60 highest-funded startups in the industry were publicly listed—mostly through unconventional methods such as reverse mergers and over-the-counter (OTC) listings.

Carbon Capture, Utilization, and Storage (CCUS)

?

Disruptors

?
Funding in USD Millions
Pond Technologies
Public - Market cap USD 16.6 mn
LanzaTech
280
Svante
156
Climeworks
139
Carbon Engineering
110
Twelve
68
Carbon Clean Solutions
64
C-Capture
22
Prometheus Fuels
0
Storegga Geotechnologies
Unknown
Carbfix
Unknown
Global Thermostat
Unknown
Watchlist
?
NewCO2Fuels
Carbon Upcycling Technologies
CarbonFree
Remora
Industrial Climate Solutions
TerraCOH

Renewables: NextGen Solar, Wind, Hydro

?

Disruptors

?
Funding in USD Millions
SolarWindow Technologies
Public - Market cap USD 279.3 mn
BBOXX
169
Oxford PV
152
Heliogen
129
Natel Energy
66
Ubiquitous Energy
53
NEXT Energy
34
Insolight
20
Watchlist
?
Sunroof

Renewables: NextGen Bioenergy

?

Disruptors

?
Funding in USD Millions
Anaergia
Public - Market cap USD 1.0 bn
Pond Technologies
Public - Market cap USD 16.6 mn
Blue Sphere
Public - Market cap USD 55.9 k
Enerkem
616
LanzaTech
280
Synthetic Genomics
175
Twelve
68
Woodland Biofuels
33
Watchlist
?
NewCO2Fuels

Renewables: Third-generation

?

Disruptors

?
Funding in USD Millions
Minesto
Public - Market cap USD 311.0 mn
Ocean Power Technologies
Public - Market cap USD 111.7 mn
TAE Technologies
917
Commonwealth Fusion Systems
199
General Fusion
192
Tokamak Energy
162
Net Power
150
Dandelion Energy
65
Eavor
64
First Light Fusion
62
Zap Energy
43
Ocean Renewable Power Company
43
AW-Energy
31
Watchlist
?
Quaise
TerraCOH

Energy Storage: Stationary

?

Disruptors

?
Funding in USD Millions
EOS Energy Storage
Public - Market cap USD 720.3 mn
Azelio
Public - Market cap USD 463.4 mn
Form Energy
369
Energy Vault
230
Ambri
211
Fluence
125
24M Technologies
95
Malta
87
Ionic Materials
65
Natron Energy
50
ESS
47
Hydrostor
47
Nanoramic Laboratories
39
Moixa
22
Quidnet Energy
18
Moxion Power
13
Watchlist
?
TerraCOH

Energy Storage: Non-stationary

?

Disruptors

?
Funding in USD Millions
QuantumScape
Public - Market cap USD 11.2 bn
Romeo Power
Public - Market cap USD 694.4 mn
Northvolt
6040
Sila Nanotechnologies
880
Solid Power
187
StoreDot
130
Nanotech Energy
95
Ionic Materials
65
Group14 Technologies
42
Gridtential Energy
30
NAWATechnologies
28
Nyobolt
24
Advano
24
InoBat
17

Energy Optimization and Management Software

?

Disruptors

?
Funding in USD Millions
Stem
Public - Market cap USD 3.3 bn
Arcadia
171
Origami Energy
80
AutoGrid
76
Twaice
42
Innowatts
24
Moixa
22
DEPsys
19
ConnectDER
18
WeaveGrid
15
ION Energy
5
Habitat Energy
Unknown

Pond Technologies

Pond Technologies focuses on converting carbon dioxide emissions into algae-based commercial products. The company’s technology converts carbon dioxide into oxygen, facilitating various algae strains (such as chlorella, spirulina, astaxanthin, etc.) and algae-based products, such as nutraceuticals, animal feeds, natural fertilizers, and biofuels. 

The Canadian company also offers a modularized algae-growing platform made of large vessels known as bioreactors, which can be deployed at industrial facilities to capture and recycle carbon dioxide emissions. As of April 2021, a bioreactor was priced at USD 1.9 million per unit, and the company was quoting five units to be sold in the UK, US, EU, and Asia. 

Pond Technologies operates under three segments: 1) nutraceuticals, 2) technology services, and 3) oil and gas production. As of December 2020, the nutraceuticals segment was the company’s sole source of revenue. The modularized carbon capture solution for industrial facilities falls under the technology services segment (which did not generate any revenue in 2020). The company generated total revenues of USD 4.8 million in 2020 (USD 3.5 million in 2018), although it has yet to make a profit, running an operating loss of around USD 3.3 million in 2020.

In February 2018, Pond Technologies was listed on the TSX Venture Exchange, raising USD 8.7 million. The company’s most recent funding event raised USD 1 million in a post-IPO equity round in July 2020.

Segment:
Carbon Capture, Utilization, and Storage (CCUS)
Total funding:
USD 13.5 million
Competitors:
LanzaTech, Industrial Climate Solutions
Disruptor Funding History

Carbon Capture, Utilization, and Storage (CCUS):

Pond Technologies
LanzaTech
Svante
Climeworks
Carbon Engineering
Twelve
Carbon Clean Solutions
C-Capture
Prometheus Fuels
NewCO2Fuels
Carbon Upcycling Technologies

Renewables: NextGen Solar, Wind, Hydro:

SolarWindow Technologies
BBOXX
Oxford PV
Heliogen
Natel Energy
Ubiquitous Energy
NEXT Energy
Insolight
Sunroof

Renewables: NextGen Bioenergy:

The Incumbents

Oil and gas majors moving toward next-gen ClimateTech

Oil and gas and other fossil fuel energy companies are increasingly adopting ClimateTech to meet their sustainability commitments. While these initiatives are still mostly conventional renewable energy generation projects such as solar and wind, some companies, especially oil and gas supermajors, are also gradually exploring next-generation ClimateTech solutions such as carbon capture, utilization, and storage (CCUS) and advanced biofuel refining. In many cases, however, these initiatives are aimed at reducing in-house greenhouse gas emissions as opposed to the broader commercialization of the technology.

The electric vehicle (EV) batteries and energy optimization and management software segments are also home to a considerable amount of incumbent companies. Diversified electronics companies such as LG, Panasonic, and Samsung dominate the EV battery industry while Tesla and Volkswagen have announced plans to move battery production in-house.

Top smart meter companies such as Landis+Gyr and Itron complement their smart metering solutions with legacy energy optimization and management software. Diversified technology companies like General Electric and Cisco also provide similar solutions globally.

In-house development

Investments/Acquisitions

Partnerships

BP
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Shell
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ExxonMobil
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Total
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Eni
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Oxy
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Tesla
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Panasonic
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LG Energy
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CATL
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Samsung
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Aker Solutions
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Octopus Energy
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Schneider Electric
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Saipem
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General Electric
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Landis+Gyr
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Itron
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Cisco
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BP

The Northern Endurance Partnership (NEP) is a pact between BP, Eni, Equinor, National Grid, Shell, and Total to develop offshore infrastructure to transport and store carbon dioxide emissions in two of the UK’s highest emitting industrial clusters, Teesside and Humber. BP leads the partnership and is expected to operate the sites once they are completed. 

Notable Investors

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