🌏 A line of sight from SightLive

As the end of the year nears, we’ve been gathering the data and trends for our classic end-of-year CTVC report. While our preliminary analysis shows a modest uptick in total funding, it might not be quite the decisive end to the "wait-and-see" era many hoped for.

But here's the thing: Venture funding alone no longer tells the full story. 

Climate tech has entered a new era, one where success metrics are fundamentally shifting. We recognized this inflection point early — in fact, we called it on day one of New York Climate Week, at our inaugural SightLive event, and heard echoes throughout the week. What matters now is two-fold. 

• First, we're seeing real momentum in deployment — companies are breaking ground on projects, securing offtake agreements, and turning blueprints into buildings
• Second, the capital stack is evolving beyond traditional venture funding. Innovative financing structures are emerging to bridge the "missing middle," blending different forms of capital to match climate solutions' unique scaling needs

The result? A maturing ecosystem where deployment and execution trump pure innovation. While not every project will succeed, we're already seeing promising case studies of climate tech innovators who are. At SightLive, we heard from the builders who are writing the playbook for climate tech's next phase: scaling.

SightLive brought together the best of CTVC and Sightline, combining the research, content, and community in-person for the first time to drive the narrative on climate tech commercialization. 🙏 A huge thank you to our incredible sponsor, HSBC, and scale-up partner, Elemental Impact, for making this all a reality.

Here’s a quick recap:

• Over 300 leading climate tech investors, corporates, policymakers, and startups gathered for a full day of programming
• We discussed building First-of-a-Kind (FOAK) projects, with case studies from Fervo Energy (geothermal), Stegra (steel), Sublime Systems (cement), and Dimensional Energy (sustainable aviation fuels)
• We explored the Climate Capital Stack, covering growth capital, credit, project finance, and government funding to help climate tech companies scale, featuring Antora Energy, Electric Hydrogen, Rondo Energy, and the US Department of Energy
• In small discussion groups, we workshopped financing solutions, procurement strategies, and ideas for an IRA 2.0 policy wishlist

Below, we bring the nine hours of programming from NYC directly to your inbox. Just like SightLive, the report is formatted into case studies — of builders scaling up to FOAK, and innovators leveraging the climate capital stack. 

Breaking ground in FOAK

So, how are FOAK trailblazers getting it done? As we’ve previously written about, in general, FOAK in action follows one of our favorite frameworks, the FOAK Checklist: de-risking technology at the Pilot stage, crafting a scalable Plan, securing financing and Partners, and assembling the right People. Panels followed each company’s FOAK journey, offering insights into deal mechanics, decision-making processes, and building relationships with investors and offtakers.

Geothermal picks up steam for clean firm power 

With Tim Latimer, CEO & Co-Founder @Fervo Energy and Lucia Tian, Head of Clean Energy & Decarbonization Technologies @Google

Founded in 2017, enhanced geothermal developer Fervo has quickly become one of the most promising providers of much-needed clean, firm power. With the AI race in full swing, data center developers with decarbonization targets need access to high-capacity factor power sources that are clean and reliable (like advanced nuclear, geothermal, or renewables paired with long-duration energy storage). Now, Fervo is approaching commercialization, as its FOAK, Project Red, switched on operations last year at a Nevada site to supply 24/7 carbon-free electricity to the local grid. Google partnered with Fervo early on to support the project via offtake from the pilot, and has continued the partnership via a first commercially-sized offtake. Here’s what they’re (horizontal) drilling into next.

• How it came together: The same year Tim founded the company, 2017, Google published a whitepaper highlighting enhanced geothermal (coincidence?). Tim reached out to the company’s energy team, starting conversations. Meanwhile, Google began to push for a 24/7 carbon-free energy concept, driving early discussions. Now, demand from data center developers has grown, and it's enabling Fervo to consider new scale.
• Following the FOAK checklist: 
  • Partners – GEDA masters in PPAs: Due to the project’s unique nature, Google and Fervo developed a new type of corporate power offtake agreement, a Geothermal Energy Development Agreement (GEDA) for Project Red (a different structure from traditional PPAs that fits complex utility regulations). Google and Fervo announced their partnership in 2022. They also partnered with local utility, NV Energy, to introduce another new market mechanism called the Clean Transition Tariff (CTT), an energy rate structure in Nevada that would allow corporates to pay extra for clean firm power.
  • Plan – Racking up project size: Data centers with large clean firm power needs are now considering siting near these power sources, a marked change from five years ago. Going forward, Fervo is considering larger-scale projects of up to on 800MW, compared to earlier plans of 25-75MW, which could potentially solve another challenge: transmission. 
• Crossing the Scale gap:
  • In a bind(ing agreement). Long-term, legally-binding agreements like Fervo and Google’s are crucial for access to project financing, as well as DOE grant and loan programs. “There’s a big jump from going from a non-binding MOU or LOI to an actual contract agreement,” said Tim. “If you want to unlock the hundreds of millions or billions of dollars needed to put steel on the ground, to build projects large enough to move the needle on climate change, the types of investors that will back that only care about firm binding offtake agreements, which in the power sector come through the form of PPAs. And that's a standard that takes a lot more time and investment than anything non binding.”
  • Demand unlocks economies of scale. With data centers booming, energy availability — especially clean firm power — is now a top factor in siting decisions. It’s providing opportunities for larger-scale clean energy projects, and previously location-constrained projects like geothermal are becoming more attractive. 

A foundational FOAK electrochemical cement plant

With Leah Ellis, CEO & Co-Founder @Sublime Systems and Bengt Steinbrecher, Startup Partner @Holcim MAQER Ventures

Startup Sublime Systems, founded in 2020, is tackling one of the toughest challenges in the energy transition: industrial decarbonization, particularly the cement industry, which is responsible for 7-8% of global emissions. It has developed an electrochemical cement manufacturing process that aims to cut cement kiln emissions by up to 90%. This year, the company announced plans for its first commercial plant in Holyoke, Massachusetts, supported by strategic partners like building materials giant Holcim, as it works to scale and overcome typical FOAK challenges, as well as the inherent challenges of changing a slow-moving, low-margin sector. Here’s how Sublime is cementing its funding and partnerships to bring its product to market. 

• How it came together: Holcim is driving a broad range of decarbonization technologies to execute on its 2030 and 2050 net-zero targets, validated by the Science Based Targets initiative. It is constantly on the lookout for novel technologies, so conversations started organically early on. Holcim took notice as Sublime continued to develop and prove its electrochemical process for low-carbon cement at a nearby pilot plant, soon recognizing the potential of Sublime's technology to drive decarbonization. This culminated in a strategic deal announced this September that includes equity investment, offtake agreements, and plans to site future facilities.
• How it followed the FOAK checklist: 
  • Pilot – Starting somewhere in Somerville: Sublime proved its technology worked at its current Somerville, MA-based pilot plant with a >250 TPY nameplate production capacity, before deciding to develop its 30,000 TPY first commercial facility in Holyoke, MA, starting in 2026.
  • Partners – Prepaid for the offtake: Holcim has a prepaid offtake agreement for cement produced at the Holyoke plant, which allows them to create early demand while preparing for large-scale deployment​. 
• Crossing the Scale gap:
  • Partnerships take many forms. The Sublime-Holcim partnership gave Sublime both guaranteed offtake and helped it leverage Holcim’s strengths in operations, logistics, and market access for future plans. The goal is to scale production swiftly by identifying future plant locations that align with market needs, affordable electricity, and the right raw materials​​. As a leader in sustainable building solutions, Holcim can benefit by adding Sublime’s offering to its existing range to meet its customers’ ambitious needs.
  • A matter of policy. New technologies in the cement industry can't compete with the low costs of traditional cement at the start at their current scale. However, as demand grows, economies of scale will reduce costs. To reach this point, public sector involvement is critical (and Sublime already received an up-to $87m DOE award for its FOAK). But other levers, like US government procurement (which accounts for 50% of US cement purchases), could help drive demand and create incentives for low-carbon solutions.

Sweden’s steelin’ the show

With Lina Håkansdotter, Chief Sustainability Officer and Corporate Affairs Officer @Stegra, Aruna Ramsamy, Managing Director @Just Climate, and Rodrigo Lauria, Director of Climate Change & Carbon @Vale

Founded in 2020, green steel startup Stegra (formerly H2 Green Steel) is making swift progress to build its FOAK project in Boden, Sweden. The project will feature a renewables-powered giga-scale electrolyzer to refine iron ore into green iron, the process will release steam instead of emissions. It aims to produce 2.5m tons of green steel annually by 2026, with future expansion to 5m tons. Stegra’s approach has attracted a whopping $7.1bn (€6.5bn) in equity and debt financing, significant offtake agreements, and strong partnerships across the steel value chain, making it a key player in industrial decarbonization. Here’s how they’re ironing out the journey to break ground on the world’s largest green hydrogen steel plant.

• How it came together: The Stegra team started by securing offtake agreements before the project even began. They presented potential customers with a green steel premium offer, and once customers showed interest, the team had confidence to move forward with discussions involving technology suppliers and other key players across the supply chain. This engagement led to its first Series A equity round with $105m raised from investors, including customers and suppliers. Just Climate’s involvement was gradual, after a first meeting before it even announced its fund. The team waited to see key milestones such as the construction permit and offtake agreements, which reduced the project's binary risks, prompting Just Climate to co-lead Stegra’s $1.8bn Series B equity raise.
• How it followed the FOAK checklist: 
  • People – A purpose-driven team: Stegra has built a purpose-driven execution team with a diversity of skill sets; for instance, key roles filled early, such as a CFO experienced in project finance, which was vital for engaging with lenders and structuring equity. And it’s not just about the people in an organization — members of the team met with the local community, including the Indigenous Sami population nearby, to ensure they had support in the site selection process.
  • Plan – All about the permitting: Stegra strategically engaged stakeholders early to secure permits faster than usual, crucial for de-risking their pilot project. "We decided to divide the permit in two parts... [which] allowed us to secure the full environmental permit in just a year and a half," said Lina, which she noted was quicker than the 5-10 years typical for Sweden.
  • Partners – Suppli(ore)s: Vale came in as an input partner (iron ore) to expand its low-carbon portfolio. It provided key inputs to Stegra as well as strong partnership.
• Crossing the Scale gap:
  • Location, location, location. Industrial decarbonization requires clean power, and not only does Sweden have an abundance, but the EU also has strong carrots (and sticks) for sustainable business practices. 
  • Early successes are worth a lot. Early success in securing the construction permit helped reduce binary risks for investors, giving confidence that the project was viable. “Building this project on time and on budget is such a big milestone for the company,” said Aruna.

Partnering with communities for better project development

With Dawn Lippert, Founder & CEO @Elemental Impact, Jason Salfi, Co-Founder & CEO @Dimensional Energy, and Jared Blumenfeld, President @Waverley Street Foundation

Since 2014, startup Dimensional Energy has developed a process to convert CO2 and hydrogen into renewable oil, which can be used as an alternative to fossil oils, from SAFs to diesel to plastics. Now, as it pushes towards FOAK, it’s embarked on an unconventional financing path, pursuing catalytic funding and garnering project finance from the Seneca Nation for its planned carbon recycling plant in Niagara Falls, New York. These are the strategies and lessons learned from real deployments that incorporated community early.

• How it came together: Elemental Impact was an early investor in Dimensional Energy, and as the company scaled, Dimensional leveraged Elemental’s new funding tool, the Development Simple Agreement for Future Equity (D-SAFE), to receive a $500,000 D-SAFE to cover pre-development costs like feasibility studies and engineering — as well as community engagement. This early vote of confidence helped attract more investors. Meanwhile, the partnership between Dimensional Energy and the Seneca Nation began when Jason Salfi was introduced to Seneca Holdings, the investment arm of the Seneca Nation through mutual contacts in western New York, where he had personal ties. This introduction led to meetings where both parties quickly realized they shared a vision of community-driven sustainable development. The Seneca Nation's financial arm, Seneca Holdings, emerged as the ideal partner not only because of its alignment in mission, but also due to its strong financial expertise. 
• How it followed the FOAK checklist: 
  • Partners – First Nations, first up: Seneca Nation brought a unique combination of equity investment and access to the tribal loan guarantee program, which will provide crucial debt financing for the project upon successful completion of due diligence and terms negotiation. This expertise, combined with the Seneca Nation’s ability to attract other equity partners, played a key role in securing the financial foundation for the project. As the relationship deepened, Seneca Nation's involvement grew beyond just financial support. The partnership secured 26MW of hydropower from the New York Power Authority, and continues to engage local businesses and economic development organizations like the Buffalo Niagara Partnership and local EDA with support from local government officials like the mayor of Niagara Falls. 
  • People - Inside jobs: Community engagement goes alongside successful project development. As Dawn said, “The people on the ground, wherever it is you're deploying, have an incredible amount of other knowledge that will be beneficial way beyond their engineering or technical experience. They probably have an auntie that works at the electric company. They probably have an uncle in the permitting office. There are webs of relationships that are unlocked by working with local partners.” 
• Busting myths about scaling:
  • Community engagement isn’t just checking a box. Elemental aims to help embed the concept of meaningful community engagement in the companies it works with. As Dawn said, “What are you doing within your company to really understand who's at the table, who's making decisions? Who in your company represents the communities where you want to go? Do you understand the history of the neighborhood where you're trying to deploy? That’s key to doing good community engagement, because climate projects don’t happen in a vacuum.”
  • Projects can’t just bring jobs — they need to be quality jobs. Taking a community-first approach starts with hiring from local communities, and bringing real benefits, Jared added. “It isn't just about jobs, it's about the quality of the job.”

Slicing into the Climate Capital Stack

The best outcomes in climate tech happen when companies can align their development milestones with their capital strategy. A large cohort of climate tech companies are entering a capital-intensive maturation period, from building commercial facilities to energy infrastructure, which requires a more creative and complex capital stack with bigger checks.

Hear from those that are successfully bridging this gap, what strategies they’re using to raise, and why they chose the layer of the capital stack they did.

Giving (green hydrogen) credit where it’s due

With Derek Warnick, CFO & Co-Founder @Electric Hydrogen and Martin Richards, Global Head of Climate Tech and Sustainable Finance @HSBC

Hydrogen is key to decarbonizing heavy industry and economics are the great challenge standing in the way of its widespread deployment. That’s precisely what Electric Hydrogen aims to solve. Green hydrogen production relies upon (often pricey) electrolyzers that use renewable electricity to split water into hydrogen and oxygen. While electrolyzer manufacturing capacity has grown over the past few years, startup Electric Hydrogen has developed a new type of lowest-cost electrolyzer that uses a “stack” of electrolysis “cells.” These stacks make up the core of Electric Hydrogen’s electrolysis plant product to enable the production of green hydrogen at fossil parity costs. But building FOAK manufacturing plants is capex-intensive, and the company opened a 1.2GW gigafactory in Devens, Massachusetts, earlier this year. Shortly after, it announced a $100M corporate credit facility led by HSBC, with backing from J.P. Morgan, Stifel Bank, and Hercules Capital. Here’s how they leveraged credit financing to supercharge its growth, the strategy behind the facility's construction, and what financial institutions like HSBC look for in supporting climate tech companies.

• How it came together: Electric Hydrogen began discussing financing options with HSBC early, building the relationship well before finalizing its capital stack. By already having proven technology, significant customer interest, and experienced backers, Electric Hydrogen was able to leverage a credit facility instead of relying solely on traditional venture debt or equity raises. The capital was arranged at a strategic moment, following the gigafactory announcement, allowing Electric Hydrogen to lock in favorable financing terms amid strong market confidence in its business.
• Why Credit: 
  • In the interest of cutting interest: By securing debt financing, the company can scale production without over-leveraging the business. The revolving credit structure also provides Electric Hydrogen with the flexibility to draw funds as needed, reducing unnecessary interest costs.
• Use of funds: The credit line is primarily being used to finance the gigafactory’s development, covering equipment purchases, infrastructure build-out, and ramping up production capabilities — situations in which equity financing didn’t make sense.

B is for thermal batteries

With Rene Griemens, CFO @Antora Energy and Scott Himmelberger, Director @Decarbonization Partners

Antora, which specializes in factory-made thermal batteries for industrial heat applications, successfully crossed the so-called Series B valley of death cliff after it raised a $150m Series B round led by Decarbonization Partners, a joint venture between BlackRock and Temasek, alongside other strategic investors. As a large cohort of climate tech companies approach the critical Series B fundraise, they face a very different environment from the funding frenzy of 2021-2022. Here’s how this growth round came together and what’s next in Antora’s scaling journey.

• How it came together: Antora caught the attention of Decarbonization Partners due to its proven technology, clear decarbonization impact, and strong commercial traction. The company began building relationships with key investors early, well before its Series B round. Meanwhile, the company also secured commercial contracts rather than relying solely on letters of intent (LOIs), a key differentiator that attracted investors. As Antora demonstrated customer interest, commercial readiness, and potential for large-scale decarbonization in the $1T+ industrial heat market, Decarbonization Partners came on board to lead the round.
• Why Growth: 
  • Growing, growing, gone. To build its FOAK projects in the infrastructure-heavy industrial heat market, Antora requires large amounts of capital to finance each project. Beyond providing equity financing at a company level, Decarbonization Partners offered expertise in scaling proven technologies and accessing both equity and non-dilutive financing for Antora’s projects (such as project finance and DOE loan guarantees), making them the ideal partner for Antora’s next stage of growth.
• Use of funds: The $150m is being used to expand Antora’s thermal battery production and scale up Antora’s team to deploy large-scale, multi-gigawatt-hour battery projects. To avoid further equity dilution, Antora is leveraging debt and infrastructure financing to support these capital-intensive projects.

Catalyzing project finance for industrial heat

With Eric Trusiewicz, CEO @Rondo Energy and Mario Fernandez, Head of Catalyst @Breakthrough Energy Catalyst

In a landscape where the funding to bridge the gap from technology development to scale-up deployment is scarce, strategic catalytic capital can help push startups across this great valley of death. For Rondo Energy, which is building a thermal battery technology capable of turning intermittent renewable electricity into continuous, high-temperature heat and power for decarbonizing industrial applications, like food and beverage, polymers, and industrial parks, catalytic capital helped the company navigate this transition. In June, Rondo secured $81.2m (€75m) in funding from Breakthrough Energy Catalyst, a novel platform that funds and invests in project companies deploying emerging climate technologies that reduce emissions, with participation from the European Investment Bank under the EU-Catalyst Partnership. The funds will enable deployment of three large-scale thermal battery projects across Europe. Here's how this funding enabled Rondo to accelerate its journey from tech development to deployment.

• How it came together: Unlike venture-backed funding that typically focuses on the company’s top-co potential, Breakthrough Energy Catalyst approached Rondo with both a rigorous project-focused underwriting process coupled with ideas on how to structure a new product offering and how to expand its European business. Initially, Rondo expected the focus to be solely on the technology and specific projects, but Catalyst’s approach required a deep dive into the company’s overall ability to deliver and scale long-term — evaluating not just the technology but also the company’s execution capacity, leadership structure, and operational resilience. This shift meant that Rondo had to pivot from a typical venture mindset to preparing the company holistically for the rigors of traditional project finance, including enhancing its legal, engineering, and project management capabilities to meet the standards of infrastructure investors.
• Why Catalytic Project Funding:
  • Building the infrastructure (capital): Rondo needs capital to scale its industrial heat battery technology, but venture capitalists are typically reluctant to fund infrastructure-heavy projects, which require sizable amounts of capital with a long return horizon. Breakthrough Energy Catalyst has committed the necessary funding for the projects while engaging the European Investment Bank under the EU-Catalyst Partnership to further support Rondo’s capital needs for its European expansion, bridging the capital gap that challenged Rondo’s road to deployment.
  • Execution is everything: Instead of focusing on future growth potential alone, Catalyst’s partnership was grounded in mitigating risks at every level, from the project details to the company’s ability to execute. This approach has helped Rondo contract long-term offtake agreements, develop the organizational capacity necessary scale deployment, build credibility with future infrastructure investors, and unlock the potential to raise large-scale project finance in the future.
  • Use of funds: The money raised will be used to build three thermal battery projects across Europe, with applications in diverse industrial sectors, as well as fund R&D and manufacturing processes in Europe. These projects are expected to showcase the scalability of Rondo's technology, ability to execute, and provide the foundation for future project finance deals. In addition to equity, Rondo is leveraging non-dilutive sources of financing, including debt and project finance, to sustainably scale its operations, with a clear focus on long-term execution rather than relying solely on venture-backed growth.

Workshops

Meanwhile, off-stage, SightLive hosted workshops for investors, corporates, policymakers, and startups to go beyond case studies into solutions. They explored questions across three of the most topical themes in climate tech: finance, demand, and policy. (If you want to join a future session at one of our next events, email [email protected] to get notified!)

Finance: If you were financing a Second or Third-of-a-Kind project, what innovative financing structures or terms would you want to put in place?

• Specialized insurance mechanisms covering challenges such as  technology performance issues, construction delays, or revenue shortfalls.
• A revolving fund structure for project development costs, where successful projects repay into the fund to finance future projects, creating a sustainable pipeline for Nth-of-a-kind deployments.
• Preferential rights for early investors to future Nth-of-a-kind projects could attract deep-pocketed investors capable of supporting multiple projects in the pipeline. 
• Partial loan guarantees (20-80%) from government to bridge the financing gap (although governmental involvement can create moral hazard concerns), 

Demand: What are creative unlocks to spur procurement for emerging climate tech before it reaches full-scale?

• Properly structured offtake agreements, often pairing offtake with equity investment to share in potential risk and returns. 
• Buyers' consortiums and "buying clubs" can aggregate demand, while long-term contracts can help spread out the green premium. 
• Government price floors, Contracts for Difference, and cost-matching grants help protect against market volatility, while innovative structures drawing from tax equity models are being adopted. 

Policy: If you could draft an IRA 2.0 to scale climate tech, what would be on your list?

• Industrials could be the next wave of climate policy, with production tax credits across cement, steel, and industrial heat applications. 
• The creation of industrial decarbonization hubs, government procurement guarantees, and book and claim systems similar to renewable energy certificates, could create reliable demand signals which complement broader carbon pricing mechanisms.
• Transmission investment tax credits alongside comprehensive grid upgrade initiatives, while also supporting distributed solutions through microgrid development incentives.

Thanks again for all who joined, can’t wait to see you next year!

If you’re not a Sightline client yet, reach out to [email protected] to learn more about how we help other investors, banks, and corporates build and finance the new climate economy.