Table of Contents

• Key takeaways
• Funding
• Product updates
• Partnerships
• M&As
• Regulations
• Value chain
• Appendices

Key takeaways

• Next-gen Climate & Energy startups raised USD 1.5 billion, recovering from a three-year low in Q2 (+35% QoQ). Alternative Energy (+103% QoQ) and CCUS (+43% QoQ) accounted for ~95% of total funding. Long-duration energy storage (LDES) remained an investor hotspot, while regulatory tailwinds pushed funding into Sustainable Aviation Fuel (SAF) and fusion. CCUS funding strengthened consecutively for the third quarter amid favorable climate disclosure laws and rising demand for carbon offsets. Funding across all other industries dropped, likely due to investor apprehension ahead of the US elections. 

• We observed 28 product updates (vs. 32 in Q2). The expansion of Direct Air Capture (DAC) R&D through new facility openings was a notable theme, with Deep Sky beginning construction on the world's first carbon removal innovation and commercialization center. NeoCarbon, Avnos, and Carbon Engineering also opened new laboratories and R&D facilities. Hydrogen startups focused on mobility solutions, with new vehicles from Hyzon and Riversimple in addition to Nikola expanding its refueling station network in North America. 

• AI integration across several climate and energy industries was evident, with the use cases spanning weather forecasting models (NVIDIA’s and ZestyAI), carbon management platforms (Measurabl), energy demand response programs (Voltus), and hydrogen production efficiency monitoring (ZeroAvia).

• We observed 60 partnerships (vs. 71 in Q2). The CCUS industry had the most collaborations, with disruptors such as 8 Rivers, HIF Global, and Carbicrete partnering to advance carbon utilization pathways, LanzaTech and Storegga Geotechnologies building carbon capture and storage (CCS) facilities in Asia, and Microsoft signing multiple carbon removal agreements.

• Hydrogen mobility was also a key theme, with ZeroAvia signing several customer agreements to provide hydrogen-based engines and Nikola Motor expanding its hydrogen refueling operations. Meanwhile, ITM Power, Elcogen, and Lhyfe focused on advancing green hydrogen.

• There were three M&A deals (vs. seven in Q2): 1) Changeblock acquired JustCarbon, signaling further consolidation in the carbon market; 2) Atawey acquired McPhy's hydrogen fueling station business to become the largest distributor in Europe; and 3) BP acquired SAF assets in China to expand its global reach.

• The US passed legislation to separate nuclear fusion from fission. The new law identifies radioactive materials associated with fusion as “byproducts.” These need fewer regulatory requirements than materials associated with fission (such as uranium or plutonium). Meanwhile, the proposed US Marine Act plans to provide financial support of up to USD 1 billion to advance marine energy.

• CCUS goes from strength to strength: CCUS investments have been steadily increasing, coupled with collaborations and product activity to advance technologies and expand into new geographies. The momentum is likely to continue, given favorable climate disclosure laws and the growing demand for carbon offsets, particularly from industrial customers looking to decarbonize their operations ahead of climate targets. Carbon capture is also gaining traction in Asia, with large emitters such as China, Japan, and South Korea looking to decarbonize key industries (steel, cement, chemicals, etc.). We could see more companies moving into the region, similar to LanzaTech and Storegga Geotechnologies this quarter.

• Hydrogen mobility gears up for commercialization: Interest in hydrogen mobility has picked up, with a notable number of product innovations and partnerships involving new hydrogen vehicles (Hyzon’s refuse truck and new fuel-cell electric vehicle (FCEV) and Riversimple's supercar) and the expansion of hydrogen refueling networks by companies such as Nikola Motor and Atawey. Also, ZeroAvia is developing a hydrogen electric engine for aircraft. The company has established an extensive network of collaborations to advance hydrogen-based flight and has received a slew of customer orders this quarter. We expect activity in the hydrogen mobility space to intensify with disruptors such as ZeroAvia and Riversimple moving toward commercialization in 2025, with others such as Nikola Motor, Hyzon, and Quantron focusing on expanding their portfolios. Hydrogen adoption would be further supported by government investments and regulatory tailwinds.

• The upcoming US elections will play a key role in shaping the sustainability landscape: A Republican presidency would likely have a negative impact on renewables. Party proposals include terminating the Green New Deal (a plan to transition the US to 100% clean energy) and canceling government-backed renewable energy investment incentives such as the September 2023 wind subsidies. In contrast, a Democratic presidency would likely accelerate the shift toward clean energy with the provision for clean energy tax credits and the launch of multiple Advanced Research Projects Agency for Climate (ARPA-C) projects in alternative energy, hydrogen, CCUS, and CMS. Read our insights on the 2024 US elections’ impact on emerging industries: Winners and losers of a Republican presidency and the Winners and losers of a Democratic presidency for further details.

Funding: Alternative Energy and CCUS gather steam despite drops across all other industries

Analyst Take: Next-gen Climate & Energy funding recovered from a three-year low in the previous quarter (+35% QoQ), led by increases in Alternative Energy (+103% QoQ) and CCUS (+43% QoQ). The two industries accounted for ~95% of total funding. Long-duration batteries remained an investor hotspot, raising ~USD 527 million (~26% of total funding), while fusion startups surged (6.4x QoQ) on the back of regulatory tailwinds. Twelve’s USD 645 million (~31% of total funding) raise to bring its SAF production facility into operation was notable. CCUS funding strengthened for the third consecutive quarter amid favorable climate disclosure laws and the rising demand for carbon offsets.

Funding across all other industries dropped. CMS funding hit a four-year low, defying expectations of an uptick following the SEC’s climate disclosure mandate earlier this year. We believe this could be due to the industry factoring in the new law's impact during the two-year delay in approval. Investors also could be cautious ahead of the US elections, with a Republican presidency hinting at potential sustainability rollbacks.

• Next-gen Climate & Energy startups raised USD 2.1 billion in Q3. This was an improvement (+35% QoQ) from the previous quarter’s three-year low but remained significantly below the quarterly average of USD 3 billion over the past three years. Alternative Energy (USD 1.5 billion) and CCUS (USD 412 million) raised the most funds, contributing ~95% of total funding.
• The number of funding rounds was also subdued (52 vs. 62 on average for the past three years). All industries, except Alternative Energy and CCUS, saw fewer rounds than the three-year average. Notably, there was only one CMS round this quarter, compared to the three-year average of 11 rounds per quarter.

• Similar to recent quarters, funds raised through grants, debt financing, and other sources (collectively shown as “other”) accounted for the majority (USD 1.1 billion or ~54% of the total funding). Debt financing rounds were notable, totaling USD 329.8 million across four rounds (~16% of total funding), while USD 405 million was raised in post-IPO equity funding across two rounds (~20%). This quarter saw grants awarded in 14 instances, amounting to USD 183.5 million (~9% of total funding).

• There were five mega deals (rounds raising USD 100 million or more) across SAF, LDES, and fusion. Twelve’s USD 645 million (~31% of total funding) raised through a mix of project equity (USD 400 million), Series C funding (USD 200 million), and credit facilities (USD 45 million) was earmarked to bring its SAF production facility to operation in 2025.

• Alternative Energy accounted for three-quarters of total funding, stemming from investments in biofuels, long-duration battery storage, and fusion energy. 
  • The Alternative Energy industry raised USD 1.5 billion (+103% QoQ and -15% YoY). Biofuel producers raised nearly half of this (USD 692.9 million) across six funding rounds. The most notable were Twelve’s USD 645 million raise and grants awarded to Gevo (USD 16.8 million) and Blue Biofuels (USD 1.2 million).
  • LDES remained an investor hotspot, led by the need to manage the intermittent nature of renewable energy amid a global push for renewable energy deployment. Battery producers raised USD 526.9 million (-19% QoQ and ~34% of total Alternative Energy funding) across nine funding rounds, including two mega deals from Form Energy and esVolta.
  • Investment in fusion companies had its strongest quarter in over three years, raising USD 272.2 million (6.4x QoQ and ~18% of total Alternative Energy funding) across five funding rounds. This surge in funding was likely driven by tailwinds from the introduction of the new US Fusion Energy Strategy 2024 in Q2 as well as the regulatory separation of fusion and fission in this quarter. 

• CCUS funding strengthened for the third consecutive quarter, with investments spanning all segments. 
  • The CCUS industry raised USD 412.1 million across 16 funding rounds (+43% QoQ and +81% YoY), the most since Q4 2022. Supportive legislatures, such as the EU-wide Carbon Removals and Carbon Farming (CRCF) regulation (Q2 2024) and the US climate disclosure mandate (Q1 2024) as well as the growing demand for carbon offsets likely garnered this heightened interest.
  • Carbon utilization disruptors (~USD 181.6 million or ~44% of CCUS funding) and companies carrying out flue gas capture (~USD 120.5 million) saw the highest capital inflows, followed by investments in carbon sequestration (USD 613 million) and DAC (~USD 46.9 million).

• Hydrogen funding slumped following a record-high earlier this year. Following a record USD 885 million investment in Q1 2024, funding fell for the second consecutive quarter to USD 53.3 million (-67.0% QoQ and -89.1% YoY). ZeroAvia’s (USD 34 million) extended Series C round was the only notable one. This slowdown was likely due to disruptors that raised funds earlier in the year—on the back of supportive legislation (US 45V Hydrogen Production Tax Credit and EU Clean Hydrogen Acts)—now focusing on launching new commercial-scale projects and establishing customer agreements (as observed in subsequent sections of this report).

• CMS funding tumbled to a four-year low while EOMS, Conservation Tech, and CRA funding also weakened. CMS funding hit a historical low this quarter, with only one funding round from Asuene (USD 5.4 million). The EOMS industry raised USD 32.2 million across three rounds (-71.5% QoQ and -15.0% YoY), the most notable of which was a USD 23 million Series A funding round from David Energy. Similarly, Conservation Tech funding dipped to USD 7.3 million, raised from two rounds (-90.1% QoQ and -87.5% YoY). The CRA industry had only one funding round from Demex, which raised USD 10.3 million (-89.4% QoQ and 35.9% YoY).

Product updates: DAC R&D and hydrogen mobility take the lead; AI makes its way into the climate and energy industries

Analyst Take: The expansion of DAC-related R&D capabilities through new facility openings was a notable theme, with Deep Sky beginning construction on the world's first carbon removal innovation and commercialization center. NeoCarbon, Avnos, and Carbon Engineering also opened new laboratories and R&D facilities. The R&D efforts are likely to focus on cost reduction, which has been a key barrier to the technology’s adoption. The cost of DAC has been estimated at USD 600–1,000 per metric ton, compared to USD 15–120 for flue gas capture. 

In the meantime, CarbonCapture suspended its planned DAC mega facility (Project Bison) and is looking to relocate closer to data center operations. It plans to leverage the growing demand for carbon offsets from technology companies such as Microsoft and Amazon. 

Hydrogen mobility startups continued to focus on advancing mobility solutions, ranging from the launch of Hyzon’s new hydrogen trucks and Riversimple’s plans for hydrogen supercars to the expansion of Nikola’s refueling station network in North America. We tracked AI integration across several climate and energy industries, with use cases spanning weather forecasting models (NVIDIA’s and ZestyAI), carbon management platforms (Measurabl), energy demand response programs (Voltus), and hydrogen production efficiency monitoring (ZeroAvia).

• We observed 28 new product updates (vs. 32 in Q2): CCUS (7), Hydrogen Economy (7), Alternative Energy (6), CRA (4), CMS (2), EOMS (1), and Conservation Tech (1).

• CCUS updates centered around expanding DAC-related R&D capabilities through new facility openings.
  • Deep Sky began construction on the world's first carbon removal innovation and commercialization center in Canada. NeoCarbon, Avnos, and Carbon Engineering also opened new laboratories and R&D facilities in Germany, the US, and Canada, respectively. 
  • Meanwhile, Skytree, a company developing decentralized D-DAC technology, unveiled Skytree Stratus Hub, a modular configuration of the company’s Stratus DAC modules that were launched in March 2024. 
  • In other developments, CarbonCapture temporarily suspended its planned DAC mega facility, Project Bison. The project, with a planned capacity of five million tons of carbon removal per year by 2030 (compared to Mammoth’s 36,000 tons), would have been the world's largest DAC center once operational. The company is looking to relocate the project to another state to better cater to the high demand for carbon offsets from data centers. According to a recent study by Goldman Sachs Research, AI adoption is expected to increase the energy demand of data centers by 160% by 2030. These data centers are expected to consume 200 terawatt-hours of electricity each year from 2023 to 2030 and in turn emit 2.5 billion metric tons of CO2 equivalent gasses by 2030.

• Hydrogen-related product launches focused mainly on mobility. 
  • Hyzon, a hydrogen truck manufacturer, began series production of its Class 8 200kW FCEV truck, while Riversimple, a company developing fuel-cell cars, announced plans to produce a limited series of hydrogen supercars at its R&D facility in Wales. To support the adoption of hydrogen-based transportation, Nikola opened its first HYLA hydrogen refueling station in Ontario and added another in Southern California.
  • Several disruptors also focused on hydrogen production, with HDF Energy revealing plans to construct a green hydrogen project in Tunisia and Ohmium launching a 2 GW proton exchange membrane (PEM) electrolyzer gigafactory in India.

• Long-duration battery producers launched new manufacturing operations.
  • On the back of strong investment activity in the past few years, LDES producers focused on advancing their commercial-scale activities. 
  • 24M Technologies (which raised USD 87 million in September 2024) launched a 71,000 sq ft combined manufacturing and R&D facility in Thailand that can produce 100 MWh of 24M SemiSolid battery cells annually. 
  • Eos Energy (which raised USD 315.5 million in June 2024) began construction of its production line for Eos Z3 batteries in Pennsylvania to expand its annual production capacity to 1.25 GWh. The new manufacturing line was built in partnership with ACRO Automation Systems, a machinery manufacturer, to bring Eos Energy’s new manufacturing line into commercial production.
  • Fluence began commercial production of its battery modules in Utah. The company first announced the shift in production of its Cube battery storage product two years ago to capture the Inflation Reduction Act’s domestic content bonus tax credit. 

• The integration of AI into climate and energy solutions was an emerging theme. 
  • We noted the integration of AI into climate and energy solutions through several new product launches that took place during the quarter.
  • Climate Risk solutions saw the most activity with 1) NVIDIA launching StormCast solutions, a new GenAI model for weather forecasting that predicts over 100 variables, such as temperature, moisture concentration, wind, and rainfall radar reflectivity values, at multiple altitudes, and 2) ZestyAI’s new Severe Convective Storm products, which can predict the frequency and severity of storm losses for any property in the US, gaining approval from the Texas Department of Insurance.
  • CMS disruptor Measurabl unveiled an updated version of its real estate sustainability platform, which is now powered by the Measurabl Quantum Cloud, a real estate ESG data repository that uses AI-enabled tools for data ingestion and automation.
  • EOMS disruptor Voltus, a distributed energy resource (DER) software platform and virtual power plant operator, launched its AI Adjuster. The new feature boosts customer revenue from demand response by adjusting their participation based on real-time predictions of their load flexibility.
  • Hydrogen-based aviation solution provider ZeroAvia launched Smart Hydrogen AI Production Software (SHAIPS), an AI-driven software that minimizes the cost of hydrogen production for clean aviation and other applications.

• Key operational milestones in third-gen renewables and climate monitoring: 
  • Several disruptors operating in the third-generation renewables space advanced their operations. This included 1) Dandelion Energy launching a new heat pump known as Dandelion Geo, 2) Helion Energy licensing the operation of its new fusion machine (Polaris) in Washington State, and 3) Ocean Power Technologies (OPT), a company developing ocean wave energy, filing a patent for its proprietary docking and recharging buoy technology for unmanned surface vehicles (USVs).
  • Disruptors offering climate monitoring solutions also launched new solutions and missions. These included 1) Hydrosat, a provider of geospatial data analytics, unveiling VanZyl-1, its first proprietary satellite for thermal imaging, and 2) Saildrone, a provider of real-time ocean mapping and data, commencing autonomous surveying for deep-water ocean mapping in the Cayman Islands using its Saildrone Surveyor USV.

Partnerships: CCUS and hydrogen also dominate collaborations

Analyst Take: Similar to the trend we observed in funding and product activity, CCUS collaborations maintained a healthy momentum. Disruptors such as 8 Rivers, HIF Global, and Carbicrete focused on advancing carbon utilization pathways, while companies such as LanzaTech and Storegga Geotechnologies partnered to build CCS facilities in Asia. Carbon capture has been gaining traction in Asia, with large emitters such as China, Japan, and South Korea looking to decarbonize key industries (steel, cement, chemicals, etc.). CDR agreements were also a point of interest, with Microsoft signing several, totaling over 530,000 tons with four disruptors, including 1PointFive and Lithos Carbon, highlighting the growing interest in CCUS as a quick fix to the climate problem. 

Hydrogen mobility was also a recurring theme, with ZeroAvia signing several customer agreements to provide hydrogen-based engines and Nikola Motor expanding its hydrogen refueling operations. Collaborations related to green hydrogen were also evident, with companies such as ITM Power and Elcogen signing electrolyzer agreements and Lhyfe joining a Swedish hydrogen-based industrial cluster. Supportive legislation (US 45V Hydrogen Production Tax Credit and EU Clean Hydrogen Acts) in recent quarters may have encouraged these. 

• We observed 60 partnerships (vs. 71 in Q2). Similar to the first half of the year, the CCUS, Hydrogen Economy, Alternative Energy, and EOMS industries saw the most number of collaborations. Product/tech development partnerships (27) and customer collaborations (26) were the most common, followed by sales collaborations (7).

• CCUS collaborations centered on CDR agreements, technological advancements, and geographical expansions.
  • We tracked the most number of partnerships in the CCUS industry (~25% of total partnerships). Notably, Microsoft signed CDR and sequestration agreements with several disruptors, including 1) 1PointFive (500,000 tons), 2) Lithos Carbon (11,400 tons), 3) UNDO (15,000 tons), and 4) Eion (8,000 tons).
  • Additionally, disruptors such as 8 Rivers, HIF Global, and Carbicrete focused on advancing their carbon utilization pathways, including the exploration of SAF, carbon-free concrete, and wind turbines that generate electricity from captured CO2.
  • Several notable collaborations to construct carbon capture and sequestration facilities in Asia also took place: 1) LanzaTech signed a master license agreement with SEKISUI Chemical to build commercial-scale waste-to-ethanol facilities across Japan and 2) Storegga Geotechnologies and ADNOC partnered to evaluate the CO2 storage capabilities of saline aquifers and the construction of CCS facilities in Malaysia.

• Hydrogen partnerships focused on advancing mobility, distribution, and green hydrogen components. 
  • Similar to previous quarters, ZeroAvia continued to be the frontrunner in hydrogen-based aerial transportation, signing several supply agreements to provide nearly 150 hydrogen-electric engines for Ecojet, ASL Aviation, and American Airlines. Nikola Motor Company also supported hydrogen-based mobility by expanding its hydrogen-refueling network in both the US and Canada through collaborations. 
  • Several companies also focused on green hydrogen operations, including ITM Power signing agreements to provide its PEM electrolyzer stacks; Elcogen collaborating to advance its solid oxide fuel-cell stack (SOFC) and solid oxide electrolyzer cell (SOEC) modules; and Lhyfe joining a Swedish hydrogen-based industrial cluster.

• Alternative Energy-related partnerships centered around battery energy storage, biofuels, and third-generation renewables.
  • Collaboration in the Alternative Energy industry was notably quiet, with just nine activities (18 in Q1 and 21 in Q2). Battery developers were the most active, with disruptors such as Eos Energy, Fluence, Energy Vault, and ABOUND Energy signing new battery energy storage purchase orders ranging from 100 MW to 2.2 GWh.
  • Biofuel startups such as LanzaJet and Anaergia also formed partnerships, with the former looking to expand SAF production in Australia and the latter setting up a new wastewater treatment facility in California. OPT (wave energy) and TAE Technologies (fusion energy) also formed partnerships to advance technologies and expand their reach.

• EOMS partnerships to optimize the performance of energy grids: Similar to Q1 and Q2, collaborations in the EOMS industry centered around improving grid reliability through enhancing demand response programs and introducing new DERs. For example, Voltus joined forces with the Virtual Power Plant Partnership (VP3) and integrated solutions with Branch Energy, while EnergyHub, Smarter Grid Solutions, and Piclo focused on expanding the DER connections, including the use of EVs for vehicle-to-grid connections.

• CMS startups continued to focus on platform integrations to improve their customer offerings: Despite subdued activity, several CMS partnerships centered around improving customer experience, including both CEEZER and Supercritical streamlining access to carbon credits, while BeZero Carbon’s and Sylvera’s partnerships aimed to improve the carbon due diligence process for customers.

M&A: Activity down, but CMS consolidation continues

Analyst Take: We observed three M&A deals (vs. seven in Q2) across the CMS, Hydrogen, and Alternative Energy industries. Changeblock’s acquisition of JustCarbon signals further consolidation within the carbon market, following the acquisitions of Sustain.Life, Traace, and Bluebird Climate last quarter. Atawey’s expansion of its hydrogen refueling facilities falls in line with the overall push for advancing hydrogen mobility, with others in the industry such as Nikola striving similarly to establish their presence in North America. Meanwhile, bp’s investment in new SAF facilities in China signals its interest in establishing a global foothold in next-gen renewable energies.

Regulations: New fusion laws to cut red tape; Federal investments in marine and hydrogen energy projects

Analyst Take: The signing of the Fusion Energy Act of 2023 during the quarter finalized steps taken by the US Nuclear Regulatory Commission in April 2023 to regulate fusion differently from the traditional nuclear (fission) industry. The US became only the second country to enact specific fusion regulations into law, following the UK’s fusion regulations in October 2023.

The original framework under which both fission and fusion energy were grouped outlined extensive requirements for nuclear reactors and was designed for higher-risk technologies. This was rather unnecessary, as fusion (unlike fission) does not result in long-lived radioactive waste. The new Act identifies the radioactive materials associated with fusion as “byproduct material,” as opposed to “special nuclear material,” thus needing fewer regulatory requirements than nuclear materials associated with fission reactors such as uranium or plutonium. 

The proposed Marine Act to provide financial support of up to USD 1 billion to advance marine energy was also notable. The decision comes on the back of the Wave Energy Feasibility Assessment Bill signed in September 2023, which directed the California Energy Commission to evaluate the feasibility, costs, and benefits of harnessing wave and tidal energy along California’s coastline. Wave and tidal energy reportedly have the potential to meet up to 30% of the US’ energy needs (from around 1% currently).

• The US passed legislation to separate nuclear fusion from fission.
  • In July 2024, President Biden signed into law the Fire Grants and Safety Act, which included the Fusion Energy Act of 2023. The law amends the Atomic Energy Act of 1954 to add a new definition for “fusion machines” as particle accelerators, preventing the technology from more extensive regulations pertaining to fission reactors. 
  • Moreover, the Act supports the Nuclear Regulatory Commission’s decision to classify radioactive materials from fusion as “byproduct material,” as opposed to “special nuclear material,” thus needing fewer regulatory requirements than nuclear materials associated with fission reactors such as uranium or plutonium. 

• Marine Energy Technologies Acceleration Act to invest USD 1 billion in marine energy.
  • In August 2024, US Representatives Nanette Barragán and Suzanne Bonamici introduced the Marine Energy Technologies Acceleration Act, which proposed an investment of USD 1 billion to advance marine energy toward full-scale commercialization. The Act defines marine energy as energy from waves, tides, currents, and other water-based resources.
  • If passed, the Act would provide funding to the DOE's Water Power Technologies Office (WPTO) for demonstration projects, R&D, resource potential mapping, workforce development, and more efficient permitting processes.
  • During the same month, WPTO reported plans to provide up to USD 112.5 million in funding to advance the commercial readiness of wave energy technologies through open water testing and system validation.

• DOE to provide up to USD 925 million for a clean hydrogen hub in Appalachia.
  • In August 2024, the US DOE’s Office of Clean Energy Demonstrations formed a cooperative agreement with the Appalachian Regional Clean Hydrogen Hub (ARCH2), where the latter is expected to receive up to USD 925 million in federal funding. The funding will support the development of a clean hydrogen hub in Appalachia, with projects spanning West Virginia, Ohio, and Pennsylvania. 
  • The ARCH2 was one of seven hubs selected by the DOE in October 2023 as part of the USD 7 billion grant package from the Regional Clean Hydrogen Hub (H2Hubs) program.

Value chain: CCUS dominates R&D and support activities; hydrogen leads inbound logistics and operations

Analyst Take: R&D collaborations and product advancements slowed, but we saw record investments (USD 272.2 million) into fusion startups such as Marvel Fusion, Zap Energy, General Fusion, and Type One Energy to advance fusion models. These drove an uptick in funding. CCUS disruptors also made notable contributions, with the likes of Air Company, Mantel, and 44.01 raising funds for demonstration projects. Expanding DAC-related R&D capabilities by opening facilities (such as Deep Sky beginning construction on the world's first carbon removal innovation and commercialization center) and integrating AI into several climate and energy industries were notable highlights.

Inbound activities attracted the most investment activity, led primarily by Twelve’s USD 645 million fundraise to complete its ethanol-to-SAF plant as well as other biofuel investments. Green hydrogen producers and component manufacturers dominated collaborations in the space. These included Lhyfe, HDF Energy, Ohmium, and Elcogen partnering to expand their production footprint as well as Nikola expanding its hydrogen refueling business.

Production and operations activities continued to focus on hydrogen vehicles and aviation, with ZeroAvia establishing multiple customer agreements and disruptors such as Hyzon and Riversimple unveiling new hydrogen vehicles. Similar to previous quarters, outbound activities were driven by battery producers such as 24M Technologies, Eos Energy, and Fluence launching new manufacturing facilities and several mega deals by Form Energy and esVolta. Support activities were buoyed by steady investment and activity in the CCUS industry despite slumps across all the CMS areas. Most notably, CCUS disruptors focused on advancing carbon utilization pathways, building CCS facilities in Asia, and signing multiple CDR agreements with industry giants like Microsoft. 

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