Happy Monday!
We’ve just returned from Texas, where CERAWeek — the "Super Bowl of Energy" — brought together the biggest players in oil, gas, finance, and policy. From the hottest debates to the key takeaways, we’ve got a breakdown for you.
In deals, $40m in specialty chemicals manufacturing, $28m in direct air carbon capture, and $28m in grid power storage.
In other news, Trump’s tariffs come into effect, Northvolt is officially bankrupt, and the EPA launches massive deregulation efforts.
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Every year, CERAWeek — known as the “Super Bowl of Energy” — serves as the ultimate gathering for the biggest names in the energy world. It's when policymakers, utilities, oil and gas execs, and financiers all huddle together to figure out where the energy game is headed. This year, the playbook is balancing AI's ever-growing thirst for power with a new focus on costs over climate, forcing a serious rethink of how to electrify the future. Power now is the name of the game, and was front of mind at last week’s conference.
The CTVC team was on the ground in Houston, and this year’s CERAWeek was markedly different from past years — in 2023, the Inflation Reduction Act was the talk of the town, while in 2024, AI dominated conversations. Now, in 2025, the focus is on how to actually get it all built — despite bottlenecks, financing gaps, and fractured supply chains.
The usual climate tech buzz was quieter, and a scaled-down DOE presence — aside from Secretary Chris Wright’s keynote — signaled a recalibration. On stage, Wright set the tone with a fiery speech slamming past policies and dismissing solar and wind in favor of gas, nuclear, and geothermal. “The previous administration’s cure was far more destructive than the disease,” he declared. (Full transcript here.) Off stage, industry leaders mostly agreed on an “all of the above” approach to power AI and meet demand spikes. TL;DR: The energy transition is happening, but managing friction is the real challenge.
The power crunch is here. Even with varying demand forecasts, there was broad consensus that it's all-hands-on-deck to keep up. Gas and CCS emerged as stopgap solutions, with strong support for 45Q tax credits. However, a shortage of gas turbines and skyrocketing costs — up threefold in just a few years — are creating challenges for new builds. As Wright said, “drill, baby, drill also requires, build, baby, build.”
💬 Quotes: “Demand is here now. We need generation available to meet that demand, or we’re heading for an affordability crisis.” — John Ketchum, President & CEO, NextEra
“You don’t hear green premium anymore. You just hear that we need a lot of energy.” – Carlos Araque, Co-Founder and CEO, Quaise Energy
💥 So what? The industry is looking to expand what it can deploy quickly — gas, geothermal, renewables, CCS and potentially nuclear — without sacrificing reliability or affordability.
AI’s energy demands are growing faster than grid planners could have ever anticipated. With hyperscalers like Google pushing AI to the forefront — the tech giant plans to spend $75bn on AI in 2025 alone — data centers are rapidly becoming the grid’s biggest source of new demand in decades. Energy companies, such as NextEra, Chevron, and Constellation, are collaborating with hyperscalers to co-locate data centers with power generation to ensure AI’s boom doesn’t break the grid.
💥 So what? The race for AI is rapidly becoming the race for power — and hyperscalers are ready to get creative in order to get power fast and first..
Nuclear is making a serious comeback. A cross-sector pledge — including Google, Amazon, and 31 countries — aims to triple global nuclear capacity by 2050. SMRs are still in development, but the first units are expected by 2029. Meanwhile, the US is doubling down on nuclear and geothermal to compete with China’s dominance in solar, batteries, and EVs.
💬 Quotes: “Oil is OPEX, nuclear is CAPEX.” — Jeff Currie, Chief Strategy Officer of Energy Pathways, Carlyle
"We've got to drive hard to accelerate fusion, otherwise China will." — Glenn Youngkin, Governor of Virginia
💥 So what? Nuclear power can play a significant role in the long-term, as it’s a top priority for industry and the US government, but it won’t solve short-term supply constraints.
The divide between molecules (natural gas) and electrons (renewable electricity) is fading. CERAWeek is now as much a power conference as it is an oil and gas gathering, with AI and data centers dominating discussions. The focus has shifted to unlocking capacity through grid optimization and flexible solutions, including behind-the-meter. Microgrids, small gas turbines, and waste heat recovery are all being explored as creative ways to meet needs faster.
💬 Quotes: “It’s a joule pool. The color line has been erased.” — Jeff Currie, Chief Strategy Officer of Energy Pathways, Carlyle
“A lot of GWs are going to come from flexibility, as it can be done faster than new build.” - Caroline Golin, Global Head of Market Development & Innovation, Google
💥 So what? The energy sector is moving toward a more flexible, demand-driven model where timing and delivery matter just as much as fuel source.
Stock market volatility and recession fears cast a shadow over the crowd. Policy uncertainty, particularly around the IRA, also fueled concerns, with industry leaders calling for a more measured approach to policy implementation. In fact, 21 Republicans sent a letter to the House Ways and Means Committee last week, supporting IRA tax credits, essentially saying, let’s use a scalpel and not a hatchet.
💥 So what? The energy industry is pressing forward but treading cautiously. Economic and policy turbulence complicates long-term planning, there could be a chilling impact on project investment.
🧪 Scimplify, a Bengaluru, India-based specialty chemicals manufacturer, raised $40m in Series B funding from Accel, Bertelsmann India Investments, 3one4 Capital, Omnivore, and Universal Materials Incubator Co (UMI).
🔋 Equilibrium Energy, a San Francisco, CA-based grid storage optimization services provider, raised $28m in Series B funding from GS Energy and NRG Energy.
📦 Vytal, a Köln, Germany-based reusable packaging-as-a-service provider, raised $16m in Growth funding from Inven Capital, Chi Impact Capital, Emerald Technology Ventures, Grazia Equity, Kiko Ventures, and other investors.
💨 Capture6, a Berkeley, CA-based direct air carbon capture technology provider, raised $28m in Series A funding from Tetrad Corporation, Bridge Investment, Elemental Impact, Energy Capital Ventures, Sopoong Ventures, and other investors.
⚡ DG Matrix, a Raleigh, NC-based electrification infrastructure developer, raised $20m in Seed funding from Clean Energy Ventures, ABB, Cerberus Capital Management, Chevron Technology Ventures, and Piedmont Capital Investments.
⚡ Thorizon, an Amsterdam, Netherlands-based molten salt reactor developer, raised $17m in Series A funding from Invest-NL, European Commission, Impuls Zeeland, PDENH, and Positron Ventures.
⚡ EcoJoule Energy, a Loganholme, Australia-based renewable energy integration platform, raised $15m in Series A funding from Ellerston Capital and Fifth Estate Asset Management.
🧪 ReSource Chemical, an Oakland, CA-based CO2-based sustainable plastics manufacturer, raised $15m in Series A funding from Fathom Fund, Khosla Ventures, Chevron Technology Ventures, and Mitsubishi Gas Chemical.
⚡ Graphitic Energy, a Santa Barbara, CA-based clean hydrogen and graphite producer, raised $15m in Series A funding from Energy Capital Ventures, Breakthrough Energy Ventures, and Trafigura.
⚡ Supercritical Solutions, a London, England-based green hydrogen producer, raised $14m in Series A funding from Shell Ventures, Toyota Ventures, Al Mada Ventures, Alumni Ventures, Anglo American Platinum, and other investors.
🧱 Augmenta, a Toronto, Canada-based design platform for the built environment, raised $10m in Seed funding from Prelude Ventures and Montage Ventures.
🔋 Daqus Energy, a Woburn, MA-based transition metal free lithium-ion batteries manufacturer, raised $6m in Seed funding from Morningside Group.
🌾 GigaCrop, a Berkeley, CA-based biology-based crop yield platform, raised $5m in Pre-Seed funding from Juniper Ventures and Playground Global.
🌾 Elevarm, a Bandung, Indonesia-based agricultural productivity platform, raised $4m in Seed funding from Intudo Ventures, 500 Global, and Insignia Ventures Partners.
🌾 Agros, a Singapore-based solar irrigation provider, raised $4m in Series A funding from GAIA Impact Fund, Schneider Electric Energy Access Asia, Wavemaker Impact, Global Innovation Fund, Silverstrand Capital, and other investors.
⚡ Reverion, an Eresing, Germany-based biogas power plants developer, raised $21m in Grant funding from the EU Innovation Fund (EIF).
☔ Reask, a Sydney, Australia-based climate risk modelling software, raised $4m in PE Expansion funding from InsuResilience Investment Fund.
🔋 Northvolt, a Stockholm, Sweden-based lithium-ion battery manufacturer, filed for Bankruptcy / Out of Business.
⚡ Perch Energy, a Boston, MA-based community and retail solar developer, merged with Arcadia.
🧱 OG Clean Fuels, a Heerenveen, Netherlands-based clean fuels provider, was acquired by Pioneer Point Partners for an undisclosed amount.
⚡ Pearl Street Technologies, a Pittsburgh, PA-based grid interconnection software, was acquired by Enverus for an undisclosed amount.
Aligned Climate Capital, a New York, NY-based investment firm, closed its $85m second venture fund, Aligned Climate Fund LP 2 (ACF2), backing startups with proven climate solutions ready to scale.
Equator, a Nairobi, Kenya-based investment firm, closed its $55m first fund, supporting Seed and Series A-stage, tech-enabled ventures in the sectors of energy, agriculture, and mobility through an overlooked phase in their funding journey.
Can’t get enough deals? See full listings and deal analytics on Sightline Climate.
Last week, Trump's 25% global tariffs on steel and aluminum imports went into effect, heightening trade tensions. Canada and the EU swiftly announced countermeasures, while further tariffs targeted Chinese imports. Designed to protect US metal producers, these tariffs are set to raise costs across industries, from construction to consumer goods, affecting renewables, grid infrastructure, and battery storage. They bring new uncertainty to project timelines and costs.
Northvolt, once Europe’s battery champion, has filed for bankruptcy in Sweden after failing to secure investment, blaming weak EU support. Despite receiving billions in taxpayer funding, it struggled to compete with Chinese manufacturers, underscoring Europe’s challenges in scaling battery production. Now set to be sold for parts or spun out, its collapse raises doubts about the future of EU-backed manufacturing. Without stronger domestic players, more startups may turn to China, making Northvolt’s downfall a cautionary tale of Europe’s industrial policy missteps.
Breakthrough Energy has cut its US and Europe policy teams, reflecting waning political support for climate policy. This retrenchment comes as the Trump administration rolls back federal efforts to address climate change. While Breakthrough will continue investing in climate innovation through its grantmaking program, its retreat from advocacy raises concerns about the private sector’s ability to fill the policy void.
The EPA, under new leadership, has launched a sweeping deregulation effort, canceling $20bn in climate project grants and initiating a review of the landmark 2009 finding that greenhouse gases endanger public health. While the legality of these moves remains uncertain, they dismantle major Biden-era initiatives, including the Greenhouse Gas Reduction Fund and Climate United Fund. Supporters argue the changes cut bureaucratic red tape, while critics warn they undermine clean energy investment and climate resilience.
The Supreme Court decided to uphold states’ authority to set clean energy policies, despite federal rollbacks. This ruling is a win for states pushing aggressive clean energy targets, despite broader federal rollbacks on climate policy. As legal battles over state and federal climate authority continue, state governments will play a bigger role in driving the energy transition.
UK regulator Ofgem finalized rules for its LDES cap-and-floor scheme, which received the go-ahead last October, clarifying criteria like a 50MW minimum power capacity, a minimum duration of 8 hours, and including lithium-ion batteries. The program will support up to 7.7GW/62GWh of projects through 2035, 16x the current UK project pipeline, which could be a huge boost to emerging LDES techs.
Carlyle’s latest report on watt’s next with energy markets, The New Joule Order.
The Trump admin’s effect on European climate tech, featuring our own Kim Zou.
Wind and solar are outshining coal — they produced more electricity than coal for the first time in the US in 2024.
Big data needs big energy — geothermal could cache in on up to 64% of the load, according to a new Rhodium Group report.
Solar projects are powering up, as today's typical 65 MW project is six times larger than those built ten years ago.
Boston Metal’s molten oxide electrolysis pilot is forging a path to cleaner steel by reducing emissions without carbon-intensive processes.
Scotland’s 65-year-old Lochay Hydro Power station is still making a splash with a new investment to extend its life.
Clean energy. Climate science. Pollution. Some words the White House is banning from federal websites.
Europe’s city buses are charging ahead, with half of new additions in 2024 running on zero emissions.
The Amazon rainforest was cut down to build a highway for this year’s COP climate summit in Brazil.
Carbon copy: Carbon180’s Noah Deich reflects on his past three years at DOE’s Office of Fossil Energy and Carbon Management.
This deep-sea sponge can soak up oil from oil spills.
Robot solar.
📅 Home - ARPA-E Energy Innovation Summit: Register to attend the ARPA-E Energy Innovation Summit from March 17-19, bringing together energy innovators, investors, and policymakers for three days of deep dives and networking opportunities.
📅 Navigating the Legal Landscape for Climate Startups and SMBs: RSVP to attend this legal primer for climate founders on March 25, covering incorporation, fundraising, and compliance, hosted via Zoom.
💡 2025 Venture For ClimateTech Global Innovation Challenge: Apply to the Venture For ClimateTech accelerator by March 31 for a venture studio + accelerator program supporting early-stage climate tech founders with non-dilutive funding and commercialization support.
💡 AI for Nature Accelerator and Climate: Apply by March 31 to join an accelerator backing AI-powered climate and biodiversity solutions, providing funding, technical resources, and mentorship.
📅 Climate Conclave 2025: Register to attend Climate Conclave 2025 from April 7-8, a two-day gathering of climate tech leaders, investors, and policymakers focused on accelerating decarbonization. RSVP by April 1 to secure your spot.
💡 Compute for Climate Fellowship: Apply to the Compute for Climate Fellowship by April 6 for access to AI compute resources, mentorship, and a global community tackling climate challenges.
💡 Sustainable Solutions Challenge: Apply by May 1 to submit your sustainability solution and compete for funding, industry connections, and global visibility.
Research Associate - Grid, Senior Software Engineer, Research Associate - Generalist, Summer Research Intern @Sightline Climate
Founding Software Engineer @Jane Energy
Full Stack Founding Engineer @Fram Energy
Investment Analyst/ Senior Investment Analyst @Angeleno Group
Investment Associate @First Time Fund – Sustainability Focus
Senior Full Stack Engineer @Coral
Policy Manager, Partnerships Manager @Carbon Business Council
Full Stack Engineer @Sunairio
Strategic Finance Manager @Lunar Energy
Product Manager @Verse
Research and Data Insights Intern @RMI
📩 Feel free to send us deals, announcements, or anything else at [email protected]. Have a great week ahead!
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