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climate tech


ONGOING ENERGY CRISIS FUELS STRONG 2022 FOR CLIMATE TECH COMPANIES

By Priyamvada Mathur
June 8, 2022
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Climate tech startups had a strong start to the year and could draw sustained
interest as the ongoing energy crisis spurs investment in green technologies
including liquefied natural gas, nuclear energy, and solar, wind and hydrogen
power.

So far this year, global climate tech startups have raised $13.7 billion in VC
investment across 369 deals, according to PitchBook data.
 
 

2021 was a record year for climate tech companies, marked by electric vehicle
developer Rivian's pre-IPO mega-deals and a string of outsized venture deals for
energy storage companies Northvolt and SVOLT.

In 2022, VC investors are broadening their scope beyond EV and battery makers to
encompass a mix of startups offering carbon capture technology, lithium mining
and indoor vertical farms.

Climeworks raised a $650 million round led by Partners Group and GIC in what is
the largest VC climate tech deal so far this year. Based in Zurich, the company
is the developer of a carbon capture and storage plant that scrubs carbon
dioxide from the air and stores it underground.

As scientists issue dire warnings about Earth's future, carbon capture is seen
by many as a potential game-changer for combating global warming. Another
notable startup in the space is France-based carbon management platform Sweep,
which raised $73 million in an April Series B.

Meanwhile, oil majors, flush with capital from higher oil prices, are likely to
accelerate investment in renewable energy.

"The invasion of Ukraine and the possibility of conflict over Taiwan in the East
have catalyzed the US and many developed nations to vigorously mine more metals
and build a domestic battery supply chain after decades of underinvestment,"
said James Ulan, a lead emerging tech analyst at PitchBook.

 

> Related read:Why investors are raising climate tech funds at a torrid pace


Featured image by Norbert Hentges/Getty Images
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Tags:
 * Venture Capital
 * Energy
 * climate tech


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