Inside the $145bn in federal loans and grants at stake
Happy Monday!
The Groundhog might have predicted another six weeks of winter, but this week, we're focusing on another kind of freeze. We've got a new deep dive into what Trump’s federal funding freeze — and its rescission — mean for projects.
In other news, the rise of natural gas to meet data center power demand, new BECCs projects, and Volvo is still pushing ahead on its Northvolt JV.
In deals, $425m for fusion, $144m for grid technologies across three deals, and $78m in energy storage development.
And don’t forget — we want to hear from you! Take our <5-minute readership survey, so we can make sure we’re delivering the content you want.
Thanks for reading!
Not a subscriber yet?
đź“© Submit deals and announcements for the newsletter at [email protected].
đź’Ľ Find or share roles on our job board here.
The climate tech sector is feeling the whiplash after a rollercoaster of Trump administration announcements in the past couple weeks. The new administration briefly announced a freeze on federal grants and loans across multiple programs, before then getting thawed by order from a federal judge. (Still, the White House press secretary has indicated that a funding freeze is still a part of Trump’s plans.)
While the sector holds its breath to see which way the winds will blow, we took a look at the data to see what’s at stake in US public funding for climate tech.
What happened
In the past four years, a historic amount of grant and loan money has flown into climate transition-related projects and companies across geographies and sectors, from nuclear to hydrogen to carbon capture to geothermal. The funding was earmarked for these purposes via laws like the BIL/IRA and CHiPs Act. The low-cost-of-capital public funding has been catalytic in getting several new projects off the ground, especially by de-risking follow-on private investment.
Now, with the latest funding freeze these types of back-and-forth announcements have created confusion for founders, funders, and developers alike. Some companies have “closed” commitments, where the funding is understood to be secure, but receive tranches of capital dependent upon hitting pre-determined milestones. Other companies are still in negotiations for the full amount of their conditionally committed funding. It’s unclear how much of any of this funding can be clawed back through legal channels, but the uncertainty still makes it difficult for everyone involved. We rounded up these announced projects to see what’s at stake, how much is on the line, and where it’s all located.
How much capital is at risk? In short, at least $145bn. On the debt side, from the publicly available data, there’s a total of 50 loans worth $102.2bn. It looks like $50.4bn of this in 21 deals is safe, or at least safe-er, as they’re listed as closed. But about $51.8bn across 29 loans is at least a bit more vulnerable, as these are still listed as conditionally committed. There’s also $42.9bn across 1,066 grants, but whether or not they’re conditional is not yet clear.
Of both grants and loans, the biggest recipient sector was the battery supply chain, with $33.7bn across 57 deals. Most of the other top funding sectors are focused on decarbonizing and firming the grid, with $19.4bn for virtual power plants, $18.2bn for renewables and storage, and $13.6bn for transmission infrastructure, coinciding with Biden’s goals of increasing energy security and lowering power sector emissions.
With that much funding at stake, there will be a tug-of-war in Congress, but the teams aren’t obvious. Out of the total number of loans and grants with disclosed locations (nearly 1,000), 561 of those awards — 60% — are located in states that voted Republican. That entails $83.1bn for red states, and $28.7bn for blue states. (An additional $34.3bn in funding was allocated to multi-state projects that span both red and blue states, as well as projects whose location was not disclosed.) Seeing this coming, last fall, a group of House Republicans asked the Speaker Mike Johnson to keep IRA programs like the clean energy tax credits in effect, as their states benefited from them.
Meanwhile, 56% of the announced loans are still conditional commitments — 29 out of the total 50 — so they face a higher risk of being rescinded. That comes to ~$51.8bn in conditional loans, out of the total loan amount of $102.2bn.
Right now, it’s all eyes on DOE HQ as the incoming Secretary, Chris Wright, takes the helm. It’s yet unclear what’s on his full agenda, but what is clear is that there’s a push from Republicans to keep, and cut, funding under these programs – we’ll just see who pushes hardest.
Key takeaways
⚡ Helion Energy, an Everett, WA-based field reversed configuration fusion developer, raised $425m in Growth funding from Capricorn Investment Group, Good Ventures, Lightspeed Venture Partners, Mithril Capital Management, Nucor Corporation, and other investor.
⚡ VEIR, a Woburn, MA-based superconductors electricity transmission manufacturer, raised $75m in Series B funding from Munich Re Ventures, Breakthrough Energy Ventures, Congruent Ventures, Dara Holdings, Engine Ventures, and other investors.
⚡ Smart Wires, a Durham, NC-based provider of advanced power flow control (APFC) and dynamic line rating (DLR) technologies, raised $65m in Growth funding from BP Energy Partners and Keystone Group.
⚒️ EARTH AI, a San Mateo, CA-based metals exploration service provider, raised $20m in Series B funding from Tamarack Global, Alpaca VC, Scrum Ventures, Sparkwave Capital, Y Combinator and other investors.
đź’§ Oxyle, a ZĂĽrich, Switzerland-based wastewater treatment service provider, raised $16m in Seed funding from 360 Capital, Axeleo Capital, Founderful, and SOSV.
⚡ Kwetta, a Napier, New Zealand-based EV charging solution developer, raised $10m in Series A funding from Blackbird Ventures, Icehouse Ventures, and Virescent Ventures.
🌾 Voltiris, a Lausanne, Switzerland-based solar modules for greenhouses developer, raised $5m in Seed funding from 3M New Ventures, EquityPitcher Ventures, and Satgana.
⚡ GridRaven, a Tallinn, Estonia-based grid transmission using dynamic line rating (DLR) developer, raised $4m in Seed funding from 42CAP and Icebreaker.vc.
🍎 OneThird, an Enschede, Netherlands-based food waste prevention technology developer, raised $4m in Series A funding from Invest International, OostNL, PYMWYMIC, and SHIFT Invest.
🌾 Agurotech, an Amsterdam, Netherlands-based data-driven arable farming platform, raised $2m in Seed funding from Navus Ventures, ROM InWest, and Rabo Ventures.
🔋 On.Energy, a Miami, FL-based energy storage developer, raised $78m in Project finance funding from BridgePeak Energy Capital and Pathward.
⚒️ Mangrove Lithium, a Vancouver, Canada-based lithium refining technology developer, raised $35m in Corporate Strategic funding from BMW i Ventures, Breakthrough Energy Ventures, Export Development Canada, InBC Investment Corp, Mitsubishi Corporation, and other investors.
⚡ WeaveGrid, a San Francisco, CA-based smart charging software, raised an undisclosed amount in Corporate Strategic funding from Hyundai Motor Company and Kia Motors.
🔋 Hyperstrong, a Beijing, China-based energy storage solutions provider, announced an IPO at an implied valuation of $1.6bn.
Marunouchi Innovation Partners, a Tokyo, Japan-based investment firm, closed $744m for its Marunouchi Climate Tech Growth Fund, which focuses on investing in climate technology and decarbonization solutions in Asia.
LITA.co, a Paris, France-based investment firm, raised $26m for its first investment fund, to support impact-driven companies in energy, green industry, sustainable food, and responsible consumption.
Can’t get enough deals? See full listings and deal analytics on Sightline Climate
Chevron announced plans to build new natural gas power plants to meet AI data centers' rising energy demands, while the Stargate project in Texas will also host a 360.5MW gas plant to power its facility. With power demand rising from AI and electrification, O&G players are looking to fill it with natural gas. However, its use in data centers involves building new long-term assets for an energy source that’s meant to be a “bridge fuel,” so these plans are raising new concerns.
Stockholm Exergi secured over $1.8bn from Sweden’s Energy Agency to fund its BECCS facility, enabling the annual removal of 800,000 tons of CO2. This initiative supports Sweden and the EU’s climate goals by providing companies permanent carbon removal agreements, although the other largest European BECCS project from Drax has had difficulty finding buyers for its credits. However, Stockholm Exergi's success could prove insights into the viability of large-scale BECCS in the region, which benefits from abundant renewable energy and forestry.
Volvo has acquired full ownership of its joint venture with batterymaker Northvolt, Novo Energy, pending regulatory approval. Northvolt hit some financial hurdles last year, which led to its inability to meet financing obligations under their agreement. While Volvo aims to continue battery production, it remains unclear whether it will proceed alone or seek a new technology partner.
E3 Lithium has successfully produced 99.7% pure battery-grade lithium carbonate from Leduc brines in Alberta, while Stardust Power said it would construct a $1.2bn lithium refinery in Oklahoma to produce up to 50,000 metric tons annually. The advancements in both technology and commercial use of lithium lay the groundwork for future operational plants, with further progress expected in areas like Thacker and Smackover as momentum for domestic lithium continues.
Shell dominated the carbon credit market in 2024, relying heavily on offsets to meet its climate targets. Despite scaling back clean energy spending, Shell retired 14.9m credits, more than any other company, although these were relatively cheap credits ($10/ton). This strategy raises concerns about relying on credits rather than direct decarbonization efforts.
Prime Minister Keir Starmer pushes to relink UK and EU emission trading schemes (ETS) as he speaks of resetting UK-EU relations with a key EU summit approaching. The move aims to reduce frictions around the carbon border taxes imposed post-Brexit, amidst growing concerns in the steel and cement industries, and may point toward Starmer’s broader hopes for economic cooperation with the EU, despite growing new trade concerns about the US.
Robo-calling a cab, with new Waymo autonomous taxi plans and cybercab announcements from Tesla.
Sky’s the limit? UAE is geoengineering with cloud seeding technologies.
Room for shrooms? Researchers in Switzerland developed biodegradable fungi batteries.
Marine biologists are using robots in video games to identify unknown deep sea species.
This Venn diagram shows China's overlapping tech-industrial ecosystems.
Reaching new depths: hydrogen was injected into underground caverns for storage.
You can take a virtual 3D tour of Avina’s clean ammonia plant.
Big (atomic) apple: New York released its plan for advanced nuclear energy.
Unexpected reactions: Thousands protested the closure of a nuclear power plant in Spain.
Not ready for takeoff: Airbus is closing down plans to bring their eVTOL aircraft to market.
The EU has a new framework out planning its future of innovation and decarbonization.
Top of the charts: Nat Bullard dropped his annual presentation on the state of decarbonization.
đź“… Climate Career Sprint: RSVP to attend College to Climate's Climate Career Sprint workshop on February 5th for a chance to learn about the landscape of climate industries and walk away with a sense of your 'climate niche.'
📅 Fusion Fashion Tech Society at NYFW: RSVP to attend Fusion Fashion Tech’s No Permission New York Fashion Week Dinner on February 11th for an intimate and empowering networking event dedicated to sustainability and circularity in the textiles industry.
đź“… FoodHack Boston: RSVP to attend FoodHack Boston: Translating Ingredient Innovation into Culinary Innovation on February 12th to network with other entrepreneurs, professionals, investors, and food enthusiasts dedicated to advancing the sustainable food movement.
đź’ˇDeveloper U Workshop: Apply to attend Developer U hosted by CREO, Spring Lane Capital, and Wilson Sonsini for a two-day workshop designed to bridge the knowledge gap in project development and finance for climate entrepreneurs and investors.
đź“… Corporate Debt in Climate Tech: RSVP to attend the Corporate Debt in Climate Tech Workshop on February 27th covering the different forms of corporate debt available to climate companies, from venture debt to equipment finance.
đź“… Colorado Climate Week 2025: Register to attend the first-ever Colorado Climate Week, held from March 24-26th in Denver and take part in workshops, fireside chats, and policy discussions alongside Colorado cleantech professionals.
đź’ˇ Mark1: Apply for an opportunity to join Mark1, a Developer-as-a-Service for capital-intensive, FOAK industrial climate technologies, and maximize the potential for your technology to reach commercial scale.
Research Associate – Grids, Senior Software Engineer, Research Analyst, Marketing Manager, Enterprise Customer Success Manager @Sightline Climate
Sales Lead, Head of Commercialization and GTM @Thalo Labs
Project Designer @it’s electric
Director of Business Development, Embedded / Full Stack Software Engineer, Senior Mechanical Engineer @Yard Stick PBC
Research Specialist, Economics & Finance @EFI Foundation
Head of Growth @Singularity Energy
Content Manager @H2Ok Innovations
Strategic Partnerships Associate @Evergreen Climate Innovations
Principal @Azolla Ventures
Completions Engineering Manager @Fervo Energy
đź“© Feel free to send us deals, announcements, or anything else at [email protected]. Have a great week ahead!
Newsletter
