🌍 ICYMI at NYCW #216

Happy Monday!

Hope you got some rest this weekend after New York Climate Week — although we’re not done with it yet. We have a roundup of all the on-stage announcements and a recap of the themes we heard behind the scenes last week.

In other news, Drax is planning BECCS projects in the US, and two major hydrogen project were canceled due to low demand — but the Northern Lights CO2 storage facility has been completed.

In deals, $200m for battery recycling, $200m for nuclear fusion, and $53m for green hydrogen.

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TTFN, NYCW

And that’s a wrap on New York Climate Week 2024. Cue the follow-up emails, LinkedIn posts, and general excitement-turned-exhaustion.

ICYMI, innovators, funders, customers, and policymakers convened in New York last week to collaborate, challenge, and celebrate across party lines. Organizers said they expected a turnout of 100,000 people to attend the more than 900 official affiliated events (and even more unofficial ones). Topics ranged from divestment to debt, justice to jet engines, politics to pigeons. Founders showed sci-fi-like tech at demo days, artists premiered climate-focused films at New York City's first climate film festival, and activists took to the streets to protest the presence of fossil fuel interests.

Much like New York, it was impossible to catch everything — but our team was on the ground, and we’ve got the highlights for you.

What we saw on-stage

California AG Rob Bonta, joined by actor Lou Diamond Philips, announced a lawsuit against ExxonMobil, accusing the company of a "decades-long deception" exacerbating the global plastics pollution crisis.
Large Wall Street banks including Goldman Sachs, Citibank, and 12 others announced their support for the COP28 pledge of tripling nuclear capacity by 2050.
Forty of the largest green banks in the US announced a new partnership to coordinate a wave of investment into the clean energy economy. The green banks made up around $10bn of funding in 2023 alone.
Google, AstraZeneca, Iron Mountain Data Centers, and more have joined Climate Group's just announced 24/7 Carbon-Free Coalition, committing to sourcing carbon-free electricity around the clock as part of a pilot campaign.
The DOE announced $1.3bn in funding for demo-scale and large-scale carbon capture projects that enable industrial decarbonization.
A group of 22 governors launched the Governors Climate-Ready Workforce Initiative to address a workforce shortage in the growing clean energy industry. It aims to train 1 million people by 2035 for jobs in sectors like electric vehicles, solar, and wind.
Amazon and Johnson Controls joined the Sustainable Steel Buyers Platform (SSBP), a coalition aiming to procure near-zero emissions steel. The platform, convened by RMI, has issued a RFP seeking bids for at least 1m tons of near-zero emissions steel annually by 2028, targeting a reduction of 1.5m metric tons of carbon emissions per year.
IEA, IMEO, and EDF released a new framework for tracking progress on oil and gas emissions and flaring, aligned with the Oil and Gas Decarbonization Charter launched at COP28.
Meanwhile, a few blocks away, the leaders of 143 national governments signed a new “Pact for the Future” at the UN, committing to international peace, sustainable development, climate financing, and more.

What we heard off-stage

NYCW attracted more participants than usual this year, as many are skipping this year’s COP in Azerbaijan. More came from diverse levels of the climate capital stack, with an increased presence of private equity, infrastructure, and banking. But often, there was still a noticeable lack of non-white and non-American representation in some rooms.

Vibe-wise, this NYCW centered more on solutions and getting down to brass tacks, rather than outlining high-level problems. More case study-driven events addressed specific challenges like offtake and FOAK financing, including our own inaugural Climate Week event, SightLive. (Be on the lookout for our report featuring the insights, data, and case studies we explored at the event in the coming weeks.) Some themes that emerged:

Capital stack diversification: The gap between Series B and C funding continues to widen, and investors are becoming more focused on business model innovation rather than just technological advancements. Growth investors are sitting on large amounts of dry powder, but are hesitant to be the first movers. Blended capital approaches, such as venture debt and catalytic capital, are emerging to bridge the gap.
Offtake agreement unlocks: Financing for climate tech startups is tightly tied to securing offtake agreements, as it proves demand and de-risks projects, making them more attractive to investors. Buyers' alliances and pooled offtake agreements, especially in sectors like aviation and shipping, are growing to help bridge the offtake-financing gap.
Corporate sustainability pullback: There's a noticeable pullback from corporate climate and ESG commitments, partly due to rising interest in AI and other tech trends. This decline in demand has affected markets like carbon credits and sustainable aviation fuels, making it harder for companies to secure strong offtake commitments (and funding).
First-of-a-Kind (FOAK) project challenges: There’s no obvious capital for funding hardtech startups building FOAK projects. Blended financing models and partnerships are key to overcoming the hurdles of scaling new technologies. Corporate partnerships, government grants, and creative financing strategies (e.g. bridge financing) are critical for FOAK project success.
Grid and energy demand growth: Energy demand is rising due to electrification and AI (although by how much is debatable), but the grid is not fully prepared. Opportunities lie in reconductoring and enhancing transmission infrastructure, while advanced geothermal and nuclear technologies are gaining traction for deployment.
(You can read our more in-depth takeaways in Friday’s newsletter here.)

NYCW ‘24 bottom line

The world looks a lot different than it did 15 years ago when New York Climate Week first started — and in many ways, worse. Scientists said this summer that the planet surpassed 1.5 degrees C of warming for the prior 12 consecutive months, making the need for action even more urgent and necessary. There’s no silver bullet of climate leadership or climate tech that will solve climate change. Passion and innovation are no longer the top priorities, as we put the pedal to the metal and focus on accelerating deployment.

Kim speaking at Google & DOE Commercialization event on how to mobilize private sector engagement. Photo via Charles Bondu. — Sightline Climate CEO, Kim Zou, speaking at Google & DOE Commercialization event on how to mobilize private sector engagement. Photo via Charles Bondu.

What was your favorite moment or biggest takeaway from NY Climate Week? Whether you were on the ground this year or catching recaps from home, let us know what you most appreciated and which questions are still lingering. Drop us a note at [email protected].

Deals of the Week (9/23 - 9/29)

Late-Stage / Growth

⚡ Zap Energy, a Seattle, WA-based sheared-flow-stabilized Z-pinch fusion developer, raised $130m from Soros Fund Management, BAM Elevate, Chevron Technology Ventures, Emerson Collective, Shell Ventures, and Xplor Ventures.

⚡ Marvel Fusion, a Munich, Germany-based inertial confinement fusion developer, raised $70m in Series B funding from HV Capital, Bayern Kapital, Deutsche Telekom, SPRIND, Tenglemann Ventures, and other investors.

⚡ Utility Global, a Houston, TX-based green hydrogen producer, raised $53m in Series C funding from Ontario Power Generation, Ara Partners, Aramco Ventures, and ArcelorMittal.

♻️ Cyclic Materials, a Kingston, Canada-based circular supply chain for rare earths platform, raised $53m in Series B funding from ArcTern Ventures, BDC Capital, Climate Investment, Hitachi Ventures, Microsoft Climate Innovation Fund, and other investors.

🥩 Helaina, a Queens, NY-based precision fermentation for proteins platform, raised $45m in Series B funding from Avidity Partners, Barrel Ventures, CF Private Equity, Ingeborg Investments, Primary Venture Partners, and other investors.

🏠 Dandelion Energy, a Mount Kisco, NY-based home geothermal systems, raised $40m in Series C funding from GV, Breakthrough, Collaborative Fund, LenX, and NGP Energy Capital Management.

✈️ Pyka, an Oakland, CA-based electric autonomous aviation manufacturer, raised $40m in Series B funding from Obvious Ventures, Metaplanet Holdings, Piva Capital, Prelude Ventures, and Y Combinator.

⚡ MetOx, a Houston, TX-based high-temperature superconducting wire manufacturer, raised $25m in additional Series B funding from Centaurus Capital and New System Ventures.

Early-Stage

📦 Notpla, a London, UK-based seaweed-based sustainable packaging manufacturer, raised $27m in Series A funding from United Bankers, Astanor Ventures, Horizons Ventures, Kibo Investments, and Temasek Holdings.

⚡ David Energy, a Brooklyn, NY-based retail energy platform, raised $23m in Series A funding from Cathay Innovation, BoxGroup, Equal Ventures, Keyframe Capital Partners, and USV.

⚡ AmpUp, a Cupertino, CA-based EV fleet charging platform, raised $15m in Series A funding from Touchdown Ventures, Autotech Ventures, Connecticut Innovations, Foothill Ventures, Goodyear Ventures, and other investors.

🔋 Anaphite, a Bristol, UK-based dry coating composites for batteries developer, raised $14m in Series A funding from Maniv Mobility, World Fund, Elbow Beach Capital, Nesta, and Wealth Club.

⚡ Ayrton Energy, a Calgary, Canada-based liquid organic hydrogen carriers developer, raised $7m in Seed funding from BDC Capital, Clean Energy Ventures, Antares Ventures, EPS Ventures, SOSV, and other investors.

💨 Eion Carbon, a Princeton, NJ-based enhanced rock weathering platform, raised $3m in Series A funding from AgFunder, Exelon Foundation, Growmark, Mercator Partners, Overture Partners, and other investors.

🌾 Qarbotech, a Kuala Selangor, Malaysia-based biocompatible photosynthesis enhancement manufacturer, raised $2m in Seed funding from 500 Global, Better Bite Ventures, EQT Foundation, Epic Angels, and ID Capital.

Other

🔋 Cirba Solutions, a Wixom, MI-based EV battery recycling platform, raised $200m in Grant funding from the US Department of Energy's Office of Manufacturing and Energy Supply Chains (MESC).

🏭 Stegra, a Stockholm, Sweden-based decarbonized steel production manufacturer, raised $112m in Grant funding from Swedish Energy Agency.

🔋 VRB Energy, a Vancouver, Canada-based vanadium redox batteries manufacturer, has raised up to $55m from Shanxi Red Sun.

Exits

🛵 Drop Mobility, a Toronto, Canada-based electric micro-mobility platform, was acquired by The Sharing Group for an undisclosed amount.

New Funds

BNP Paribas, a Paris, France-based investment firm, raised $150m for their Solar Impulse Venture Fund that will invest in climate startups across Europe and North America.

Pangea Ventures, a Vancouver, Canada-based investment firm, held a final close of their $85m fund that will invest in hard tech companies working on solutions for planetary health.

Can’t get enough deals? See full listings and deal analytics on Sightline Climate.

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In the News

British energy giant Drax says it plans to invest up to $12.5bn in developing BECCS (biomass power plants with carbon capture and storage) in the US over the next decade. Drax currently operates BECCS projects in the UK, but beginning operations in the US where there is access to biomass supplies makes logistical and economic sense. The tech is still more expensive than wind or solar, but will qualify for credits which should help bring the cost down, and is a positive signal for both CCS and CDR.

In big hydrogen news, Shell shelved a low-carbon hydrogen plant in Norway citing lack of demand, while Equinor scrapped plans to export blue hydrogen to Germany, blaming high costs and insufficient demand. However, green hydrogen has officially started being blended into the natural gas grid in Mallorca, Spain. The hydrogen space is facing several stops and starts and mixed signals, as players attempt to work out the economics.

Meanwhile, TotalEnergies, along with its partners Equinor and Shell, has announced the completion of the “Northern Lights” CO2 storage facility in Norway. The site includes a terminal for receiving CO2 shipments, a 100-km subsea pipeline to transport CO2 to an offshore storage site, and subsea injection systems for securely and permanently storing CO2 in a reservoir 2,600m undersea. Many planned CCS facilities are relying on this facility for storage, so it being ready to receive the CO2 means one less barrier for those projects to start.

In nuclear news, the UK government chose Rolls Royce's SMRs as one of four companies to advance in the competition to construct the nation’s first small modular reactor (SMR) nuclear plant. Ultimately, two companies are anticipated to receive approval, though a specific timeline has yet to be announced, as the UK’s new Labour government pushes ahead on clean energy and advanced nuclear becomes an increasingly viable option.

By 2030, the US is on track to reduce its GHG emissions by 22% a year, relative to 2000 levels — but that’s far lower than the 50% cut needed to meet national Paris Agreement goals. This gap underscores the urgent need for more aggressive climate action and policy shifts to align with global climate commitments.

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Opportunities & Events

📅 Industrial Decarbonization North America: Register to attend the Reuters 2024 Industrial Decarbonization Conference from October 1-2nd to network with and learn from leaders who are increasing industrial revenue while reducing operating costs through decarbonization.

📅 T&D Conference: Register to attend the T&D World Live Conference from October 1-3rd to network with industry leaders addressing evolving grid demands and energy landscape.

📅 College to Climate Symposium: RSVP to attend the College to Climate Fall 2024 Symposium on October 5th to network with other students and climate professionals.

💡 Build Better Innovation Challenge: Apply to Elemental Impact’s Build Better Innovation Challenge by October 16th for an opportunity to deploy funded pilots, pitch for equity investment or carbon credit purchases, in collaboration with industry partners.

💡 TechX Clean Energy Accelerator: Apply to the TechX Clean Energy Accelerator program by October 27th for a chance to be one of 10 innovative clean energy startups working to accelerate the transition to an affordable, net-zero energy industry.