🌎 Overheard at SFCW #242

Happy Monday!

Great seeing so many of you at San Francisco Climate Week last week! But ICYMI, we’ve rounded up all the hot topics, sharp takes, and whispered worries from the week — from FOAK funding gaps to tariff turbulence to where the next generation of climate projects might actually get built.

At SFCW, we launched an investor market survey with Elemental Impact to get a pulse check on the market right now. Take our 20-question survey here, and we’ll publish the results in an upcoming newsletter!

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In deals, $408m for micromobility across two deals, $186m for electrified steel, and $115m for hybrid-electric aircraft.

In other news, China’s new climate plan, the US’ new direction on deep sea mining, and another shakeup at FERC.

Plus, check out our Earth Day report from last week, a collab with International Intrigue, with our predictions for global climate tech for the rest of the year. Download it here.

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California dreaming, climate reality

California’s signature techno-optimism was on full display at San Francisco Climate Week last week, where the mood stayed sunny, even when the skies didn’t. The city’s third annual gathering pulled in the usual suspects across tech, startups, investors, and government, but with a distinctly local flavor. Big names like Al Gore, Nancy Pelosi, and the Mayor of San Francisco helped kick off the week. Thousands of attendees braved the city’s hills, bouncing between events in swanky tech offices, happy hours at local breweries (shout out to Zeitgeist), and beach cleanups along the coast. Like California itself, it felt more casual and distributed than CERAWeek’s hotel ballrooms or New York Climate Week’s suited-up skyscraper affairs. It was more puffers and sneakers than suits and heels, like NYCW’s little techie cousin.

Plus, the crowd was tighter and more core: fewer tourists, fewer generalists, and fewer “new to climate” faces. Familiar faces were everywhere, and the first question on everyone’s lips was simply, “How are you?” — partly because it felt like a reunion, partly because of the undercurrent of uncertainty. The funding downturn crept into many conversations, as did questions about which parts of the IRA might be on the chopping block. Founders and investors were also quietly reframing away from "climate tech" toward energy security, resilience, affordability, and abundance, expanding to a wider tent. Compared to last year, the energy had shifted: less about flashy announcements, more about brass-tacks problem-solving. And we were on the ground, as usual. Here are the big takeaways.

Elemental Interactive at SFCW. Image via Elemental Impact.

1. Data centers, AI, and power dominated (surprise, surprise).

It became a running joke that two-thirds of the events covered at least one — if not all three — of these themes. In the city where big tech was born, the energy demand conversation drowned out everything else. With the whole week hosted by Climatebase and sponsored by PG&E, this year’s events brought a strong utility perspective.

Conversations centered on how to meet hyperscalers' growing power demands, even as projections remain volatile. SoftBank Energy flagged challenges with colocating renewables; PG&E warned, "we need 4–5x the renewable megawatts" to keep up. ERCOT pointed to data centers increasingly bringing their own power supply as a way to speed up the process and win over utilities.

Nuclear has reentered the conversation — especially advanced reactors and SMRs — as a potential solution, though deployment timelines still stretch into the 2030s.

2. Meanwhile, the grid stole the show.

Data center demand is straining grid reliability. Machine learning loads — where chips fire simultaneously — are causing spikes that ripple through transformers and substations and impact prices.

PG&E and the California Energy Commission pointed to transmission bottlenecks, 7–10 year interconnection queues, and aging infrastructure as major barriers. "Timelines have been accelerated," said PG&E, but not fast enough.

Security and resilience are now just as critical as capacity. AI-driven grid optimization and demand management were stressed as necessary next steps. Tapestry, Google's spinout AI-powered grid modeling platform, which aims to automate power flow modeling and enhance regional planning, had multiple announcements, including a new partnership with PJM to apply AI in generation interconnection and regional transmission planning.

3. Adaptation and resilience moved from side topic to main event.

It’s California, so of course a major focus was natural disaster adaptation. The January fires left a strong imprint on the week's conversations. Wildfire risk, water scarcity, and "veg tech" came up across sessions, especially from utilities like PG&E and Edison. Adaptation is moving from nice-to-have to must-have. Wildfire-related expenses are now one of the biggest drivers of utility costs (and thus, rising electricity bills).

The conversation is evolving toward proactive prevention, with solutions like controlled burns and fuel treatment gaining more traction. PG&E piloted a trial with Burnbot, for example, which uses autonomous Zamboni-sized machines to undertake prescribed burns in key areas with wildfire risk.

4. Investor sentiment: downbeat — but focused.

The mood felt like a hangover from the IRA high. The first question wasn’t “what are you building?”, it was "how are you doing?"

There was markedly less noise about being "open for business." Some investors are waiting it out; others are hunting selectively. VCs reported pencils down even at late fundraising stages, and GPs are revising targets as 2021 vintages struggle to show DPI, especially with the backdrop that public equity market performance has been contributing to an LP liquidity crunch. Many attendees came not just to scout deals, but to get a read on what others were thinking and doing, and to take comfort in knowing they weren’t facing these headwinds alone. Don't forget to take our investor market survey to tell us how you feel about the market right now, and we'll publish the results in an upcoming edition.

Meanwhile, investors are shifting hard toward cash-flowing projects, strong unit economics, and durable demand, with many mentioning how the "green premium" is dead. A few noted that AI-driven efficiency is actually giving early-stage teams with leaner ops and lower valuations an edge in fundraising.

5. Geographic diversification and US risk premiums entered the chat.

Given US policy uncertainty, many funds said they’re diversifying away from US-only exposure, eyeing Europe and the Middle East.

There’s growing fear that public funding for FOAK projects (especially from LPO and OCED) is drying up, leaving a widening "missing middle" private markets can’t fully close.

Meanwhile, we heard "WhataboutChina" multiple times. The heavy dependency on the country for mineral supply chains loomed large, especially for battery companies. Tariffs could hit solar and storage growth just when it's needed most.

Sightline clients can head to the platform for deeper insights, extra takeaways, and the full SF Climate Week breakdown. 👉 Read more here.

Deals of the Week (4/21-4/27)

Late-Stage / Growth

🏭 Electra Steel, a Boulder, CO-based electrified steel manufacturer, raised $186m in Series B funding from Capricorn Investment Group, Temasek Holdings, BHP Ventures, Breakthrough Energy Ventures, Builders Vision, and other investors.

✈️ Electra Aero, a Falls Church, VA-based hybrid-electric aircraft manufacturer, raised $115m in Series B funding from Prysm Capital, Honeywell, Lockheed Martin Ventures, Safran Corporate Ventures, Statkraft Ventures, and other investors.

🛵 Yulu, a Bangalore, India-based micromobility manufacturer, raised $100m in Series C funding from Bajaj Auto Finance and Magna International.

⚡ Omnidian, a Seattle, WA-based solar performance platform, raised $87m in Growth funding from B Capital Group, Activate Capital Partners, Alumni Ventures, BNP Paribas, Citi Impact Fund, and other investors.

☀️ UbiQD, a Los Alamos, NM-based quantum dot technology developer, raised $20m in Series B funding from Phoenix Venture Partners, Azura Group, Builders VC, Builders Vision, New Mexico Vintage Fund (NMVF), and other investors.

⚡ node.energy, a Frankfurt, Germany-based energy management platform, raised $17m in Series B funding from BitStone Capital, BonVenture, DeepTech & Climate Fonds (DCTF), Helen Ventures, High-Tech Gründerfonds (HTGF), and other investors.

Early-Stage

🏭 Exowatt, a Miami, FL-based modular energy platform, raised $35m in Series A funding from Felicis Ventures, 8090 Industries, Andreessen Horowitz (a16z), Atomic, Goat Capital, and other investors.

🌾 Irrigreen, an Edina, MN-based robotic irrigation systems developer, raised $19m in Series A funding from Burnt Island Ventures, MFV Partners, Natural Ventures, SUM Ventures, Tamiami, and Ulu Ventures.

💨 RepAir Carbon, a Tel Aviv, Israel-based direct air capture developer, raised $15m in Series A funding from Extantia, Taranis Carbon Ventures, Ormat Technologies, and Repsol.

☀️ OnePlanet Solar Recycling, a Jacksonville, FL-based solar panel recycler, raised $7m in Seed funding from Khasma Capital.

💨 51toCarbonZero, a London, England-based corporate net zero transition platform, raised $4m in Seed funding from Fuel Ventures.

⚒️ Durin, an El Segundo, CA-based mining exploration hardware manufacturer, raised $3m in Pre-Seed funding from 8090 Industries, 1517 Fund, Andreessen Horowitz (a16z), Bedrock Capital, Champion Hill Ventures, and other investors.

♻️ PHNX Materials, a Palo Alto, CA-based coal ash recycling and material recovery service, raised $3m in Seed funding from Divergent Capital, KdT Ventures, and Overture VC.

☔ Celest Science, a Paris, France-based climate risk assessment platform, raised $2m in Seed funding from Plug and Play Ventures and astorya.vc.

🏭 Rise Robotics, a Somerville, MA-based heavy machine electrification manufacturer, raised $2m in Series A funding from Walter Winshall, Fortistar, KingsCrowd Capital, Techstars, and The Engine.

Other

🛵 Ather Energy, a Bangalore Urban, India-based electric scooters manufacturer, raised $308m in Post-IPO equity funding.

🏭 Exowatt, a Miami, FL-based modular energy platform, raised $35m in Debt funding from HSBC Innovation Banking.

⚡ 7Gen, a Vancouver, Canada-based EV service platform, raised $35m in Debt funding from Zenobe Energy.

🌾 Robust International, a Singapore, Singapore-based agricultural commodity export platform, raised $25m in Debt funding from AHL Venture Partners, Blue Earth Capital, and Ceniarth.

💧 AirJoule Technologies, a Newark, DE-based atmospheric water harvesting technology developer, raised $15m in Post-IPO equity funding from GE Vernova.

🌾 InSoil, a Vilnius, Lithuania-based sustainable agriculture microfinance platform, raised $12m in Debt funding from European Investment Fund (EIF).

🔋 Viridi Parente, a Buffalo, NY-based mobile energy storage developer, raised $9m in Grant funding from California Energy Commission (CEC).

⚡ Next Hydrogen, a Mississauga, Canada-based hydrogen electrolyzer manufacturer, raised $5m in Post-IPO debt funding from Export Development Canada.

Exits

🔋 Moxion Power, a Richmond, CA-based mobile energy storage developer, was acquired by Viridi Parente for an undisclosed amount.

⚡ Transmission Investment, a London, England-based electricity transmission developer, was acquired by TAQA for an undisclosed amount.

New Funds

TDK Ventures, a Tokyo, Japan-based investment firm, launched a $150m Fund 3 for early-stage deeptech startups.

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

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In the News

Chinese President Xi Jinping pledged to unveil China’s first-ever climate plan covering all sectors and greenhouse gases ahead of COP30, expanding beyond its current carbon-only targets. While the level of ambition remains uncertain amid ongoing coal use, a broader plan could accelerate global decarbonization by shifting the trajectory of the world’s largest emitter. Xi also called for greater international cooperation on green technologies, contrasting China’s approach with trade barriers from the Trump administration.

President Trump signed an executive order to expedite controversial deep-sea mining permits, aiming to reduce US reliance on China for critical minerals like nickel and cobalt. The order directs federal agencies to fast-track exploration licenses and assess commercial opportunities on the US outer continental shelf, although this could cause irreversible harm to marine ecosystems and undermine global efforts to set protections.

Willie Phillips, a Democratic commissioner on the US Federal Energy Regulatory Commission (FERC), resigned ahead of his term’s scheduled end in 2026. Phillips, who served as FERC chair under Biden, called for bold solutions to grid reliability and rising electricity demand in his resignation. His departure gives President Trump the chance to shift the panel to a Republican majority, potentially moving the agency's focus towards fossil fuel infrastructure and away from clean energy initiatives.

The UK government has officially approved the HyNet North West carbon capture and storage (CCS) project, set to begin storing 4.5m tons of CO2 in Liverpool Bay by 2028. This flagship initiative aims to capture emissions from industrial sites across northwest England and North Wales, positioning the region as a leader in low-carbon industry. HyNet is a cornerstone of the UK's broader decarbonization strategy, allowing the country to scale up CCS infrastructure and attract climate tech investment.

Google signed its first offshore wind power purchase agreement in Asia, partnering with Copenhagen Infrastructure Partners (CIP) for energy from the 495MW Fengmiao I project in Taiwan, set to go online by 2027. The deal supports Google's goal of 24/7 carbon-free energy by 2030 and builds on its regional solar and geothermal efforts. It also signals growing momentum for offshore wind and clean energy investment across Asia's digital infrastructure sector.

Oman is making strides in hydrogen with agreements to create the world’s first liquid hydrogen import corridor to Germany and the Netherlands, largely funded by Germany. The country also secured over $500m for the ACME green hydrogen project’s first phase. While much of the Middle East's hydrogen is blue, this corridor shows Germany's commitment to green hydrogen for its manufacturing needs.

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Sea turtles are swimming against the tide, and it’s not just the ocean currents.

Cloud trails, climate fails: this interactive map shows airplane contrails in real time.

Opportunities & Events

💡 Women Entrepreneurs Boot Camp (WEB) | Climate Tech: Apply by May 12 to join a program for women founders building B2B climate tech solutions in sustainability, energy, decarbonization, materials, and agtech, presented by Project W and Independence Point Advisors.

💡 Energy & Mobility Award 2025: Apply by June 8 for a chance to win €10K and pitch at the ceremony on July 3 in Berlin, Germany. Open to European Pre-Seed to Series A startups in energy and mobility, co-sponsored by kopa ventures, InnoEnergy, SET Hub, Enpulse, and Honda Xcelerator Ventures.

📅 Decarb TechInvest Europe: Join us on 18–19 June in London for the opportunity to engage with investors and Series B+ HardTech innovators, discussing exits, FOAK to NOAK, and more. Readers of CTVC can secure £300 off tickets using the code CTVC300 when booking.

📅 Queer Decarbonization Summit: Join LGBTQ+ climate leaders June 23–25, 2025 in Hudson Valley, NY for curated sessions and forest walks with professionals from Galvanize Climate Solutions, Generate Capital, Persefoni, Heirloom, and more.

💡 SE Ventures Accelerator Program: Apply now to join a 12-week program for pre-seed climate and industrial tech founders. Receive $100K via uncapped SAFE and tap into Schneider Electric’s global network and expertise to accelerate product-market fit.