Your Newsletter at a Glance
Note from the author: This week saw some consistent clean energy investment—Octopus Energy plans to invest $20bn into offshore wind by 2030, New York has approved $11.8bn for Con Edison to fund clean energy investments, and Japan-based Itochu launched a $2bn fund, Overland Capital Partners, for North American clean energy investments with support from Sumitomo Mitsui Trust Bank.
In nature-based solutions, PepsiCo and Walmart have agreed on a joint commitment of $120mn for regenerative agriculture. Supply Change Capital has closed its inaugural $40mn agtech fund, and Tel Aviv-based company Brevel has locked in $18.5mn in seed funding to develop microalgae into an alternative protein.
Deal Count: This week covers almost $50bn in deals and commitments in climate finance and over $300mn in NbS around the world. Enjoy the 29 summaries below!
Climate Finance
Deals and commitments above $100mn
Market Watch
Britain's Octopus Energy to invest $20bn globally in offshore wind by 2030 [Reuters]
- Renewables investor Octopus Energy Generation plans to invest $20 billion in offshore wind by 2030, aiming to boost energy security and reduce dependence on fossil fuels. The firm, part of Octopus Energy Group, said the investment will generate 12 gigawatts (GW) of renewable electricity each year, enough to power 10 million homes. It will target projects worldwide, with a focus on Europe. Britain has 11 GW of offshore wind capacity and the government plans to speed up planning approvals for offshore wind farms. Octopus Energy Generation first entered the offshore wind farm market last year and has since made five offshore deals, amounting to a total of $1 billion. It manages $7.7 billion worth of green energy projects globally.
New York greenlights Con Edison’s $11.8bn clean energy investment plan [Smart Energy International]
- Investor-owned utility Consolidated Edison (Con Edison) has received state approval for critical clean energy investments totalling $11.8 billion that will help New York transition away from fossil fuels. The New York State Public Service Commission (PSC) ruling sets electric and gas rates through 2025 and advances an investment plan that will help reach the state and city’s clean energy goals. Tim Cawley, chairman & CEO of Con Edison, commented on the approval and how it will enable the utility to invest in the power grid to “accommodate increased demand as New Yorkers electrify their vehicles and the heating in their homes and businesses.”
Itochu creates $2bn fund for North American clean energy investments [Power Technology]
- Japanese conglomerate Itochu has launched Overland Capital Partners, a fund that will invest up to $2bn (Y282.45bn) in renewable energy generation assets in North America. Itochu was supported by Japanese financial services provider Sumitomo Mitsui Trust Bank, and Fuyo General Lease and Tokyu Land have also agreed to invest in the fund. The first closing of the fund has been completed and it will continue to solicit investors. The fund will be managed by Itochu’s subsidiary Tyr Energy as a general partner through newly established subsidiaries.
Research
- The Rockefeller Foundation released its annual Zero Gap Fund: 2022 State of the Portfolio report capturing the crucial role that catalytic capital plays in enabling investment solutions to solve the world’s most pressing challenges. Across its 10 investments as of December 2022, the Fund has contributed to the mobilization of more than $795M in private finance toward a diverse portfolio of high-impact investment strategies. The Fund added two investments in 2022, bringing total commitments to $25 million of the $30 million fund. As of July 2023, the Fund is fully committed across 12 investments.
Unveiling a global benchmark for high-integrity carbon credits [The Integrity Council]
- Following consultation with hundreds of organizations throughout the voluntary carbon market, the Integrity Council has published their full CCP Framework. With this Framework, they aim to set a global benchmark for high-integrity carbon credits that is robust, achievable, and will raise standards across the voluntary market to a consistent level of quality. Their goal, as ever, is to mobilize climate finance at speed and scale in order to maximize the ability of the voluntary carbon market to support delivery of global climate goals. The Integrity Council has published full criteria for assessing categories of carbon credits and carbon crediting methodologies. The assessment phase begins now with the goal of introducing the CCP label in 2023. Work programs on key market issues will feed into the next version of the CCP Assessment Framework.
Nature-based Solutions
Deals and commitments above $1mn
Market Watch
PepsiCo and Walmart jointly commit $120mn to regenerative agriculture [edie]
- PepsiCo and Walmart have outlined plans for a seven-year programme of work to increase the amount of cropland on which regenerative agricultural practices are used in the US and Canada. The two companies announced an intention to back the collaboration with $120m of funding along with a target to benefit more than two million acres of farmland in North America by the end of 2030.
Supply Change Capital closes in $40mn agtech fund [Food Business News]
- Supply Change Capital has closed on its inaugural $40 million fund. The venture capital firm, founded by Noramay Cadena and Shayna Harris, invests in areas such as deep tech food, agriculture and ingredient companies, supply chain technology, and enterprise software. The company has deployed more than $13 million across 15 early-stage food and agriculture technology companies since June 2021, according to the company.
Brevel sprouts $18.5mn to develop microalgae-based alternative proteins [TechCrunch]
- Brevel, a Tel Aviv–based company, is developing microalgae into an alternative protein and announced $18.5 million in seed funding. Founded in 2016 by three brothers, Yonatan Golan, Matan Golan and Ido Golan, Brevel developed a proprietary technology that combines fermentation and light to make a protein from microalgae that is sold to food companies as a powder for use in plant-based products. The company is initially targeting the dairy alternative sector and currently operates a 500-liter pilot in Israel and will move into a commercial-scale factory with the capacity of a 5,000-liter fermentation and light system. Brevel recently signed an agreement with Vgarden, a plant-based cheese company, which will be the first to incorporate Brevel’s protein into its plant-based cheese.
Research
Responsible Investor’s 2023 Biodiversity Report [responsible investor]
- The report explores how nature is finally clawing its way onto investors’ agendas; They argue that pressure grows on asset owners over biodiversity; Why there are great expectations for TNFD; and comments from UBP and STOXX.
Air-based proteins market to exceed $100mn: Highlighting 5 prominent players [vegconomist]
- The global air-based foods market is expected to grow at a CAGR of 11.7% to reach a value of US $100 million by the end of 2032, as consumers and producers look increasingly towards sustainable proteins. According to FACT. MR, initially, air-based foods will gain popularity in North America and Europe, markets with growing demand for sustainable and eco-friendly food products as a solution to food production challenges. This technology, first used to feed humans in space, offers a promising solution to the extensive land use in animal agriculture that is driving species to extinction, eroding soils, and polluting water and airways. The article highlights groups like Calysta, Air Protein, Solar Foods, Arkeon Biotechnologies, and Farmless.
Climate Finance
Deals and commitments above $100mn
Individual Deals & Market Watch
India's ReNew agrees USD $7.8bn in debt financing [Renewables Now]
- Indian clean energy company ReNew Energy Global Plc has arranged a total of INR 640 billion (USD 7.8bn/EUR 7bn) in financing for its current and upcoming energy transition projects. ReNew said in a statement it has entered into memoranda of understanding (MoU) for INR 320 million in debt funding from each of Power Finance Corporation (PFC) and Rural Electrification Corporation (REC). The agreements with the two financial institutions were signed at the Clean Energy Ministerial meeting in Goa. The company intends to use the financing for the development of solar, wind, hybrid, energy storage and green hydrogen projects, as well as for the deployment of solar cell and panel production capacity, it said.
First Solar plans $1.1bn investment in fifth U.S. panel factory [Reuters]
- First Solar Inc announced plans to spend up to $1.1 billion on what will be its fifth U.S. factory to meet booming demand for American-made solar panels. It is the second time in the past year that the top U.S. panel maker has announced a major expansion of its domestic manufacturing footprint. President Joe Biden's Inflation Reduction Act, a law passed last year that incentivizes homegrown production of clean energy equipment, is underpinning a boom in solar factory investments.
EC authorizes EUR 850mn ($946mn) for ArcelorMittal green steel project [Renewables Now]
- The European Commission (EC) gave the green light to the government of France to extend a EUR-850-million (USD 946m) grant to ArcelorMittal SA for its partial steel production decarbonisation project in Dunkirk. The EC said in a statement it found that the measure is necessary and appropriate to promote the production of green steel, and that it has sufficient safeguards to limit undue distortions of competition.
Volkswagen takes $700mn Xpeng stake for EV pact to win back China [Bloomberg]
- Volkswagen AG plans to invest $700 million in Xpeng Inc. and jointly develop electric vehicles in China as the German automaker fights to halt a sales slide in its most important market. VW will eventually hold a 4.99% stake in the Chinese company via a capital increase and is getting an observer board seat. Its Audi premium brand will deepen ties with VW’s long-term partner SAIC Motor Corp Ltd. to also bolster its EV lineup.
Nissan to invest $663mn in Renault EV unit as alliance rejigged [Bloomberg]
- Nissan Motor Co. has finalized plans to invest in Renault SA’s electric-vehicle venture Ampere, capping months of negotiations to rebalance the troubled automotive alliance. The Japanese carmaker will invest as much as €600 million ($663 million) in the business. Separately, the pair formalized a deal for Renault to reduce its ownership of Nissan to 15% by placing the rest of its current 43% shareholding in a French trust.
UK greenlights Drax’s £500mn ($645mn) underground pumped storage hydro plant [Power Technology]
- The Scottish Government has given development approval to power generator Drax, allowing the company to build a new pumped storage hydro plant in Scotland, UK. The plant will be developed at the company’s existing Cruachan pumped storage facility in Argyll, Scotland. It is expected to cost approximately £500m ($645.79m) to construct, according to a statement from Drax. The facility will have a capacity of 600MW and is part of a wider £7bn plan by Drax to invest in clean energy technologies between 2024 and 2030. Such technologies include the development of long-duration storage and bioenergy with carbon capture and storage (BECCS). Constructed adjacent to the existing underground facility, the plant would effectively more than double the site’s total generation capacity to more than 1GW, Drax said.
Repsol secures EUR 575mn ($636mn) for renewables in Spain [Renewables Now]
- The European Investment Bank (EIB) has approved a loan of EUR 575 million (USD 638m) for energy group Repsol SA to develop wind and solar energy projects in Spain with a total capacity of 1.1 GW. The two sides signed a financing agreement under which Repsol will receive an initial tranche of EUR 400 million. The planned facilities will be connected to the grid before the end of 2025, the EIB said. The estimated electricity output of the plants should be enough to meet the annual needs of around 645,000 Spanish households. The projects are also expected to lower greenhouse gas emissions by over 800,000 tonnes per year.
Iberdrola finalizes €500mn ($553mn) green loan [Renews.Biz]
- Iberdrola has reinforced its liquidity position with a new €500m green loan granted by Citi, and partly guaranteed by the Norwegian Export Credit Agency (Eksfin). The aim is for the funds to be used for the construction and development of the East Anglia 3 offshore wind farm in the UK. This project will have a capacity of 1400MW. The transaction represents the first Eksfin guaranteed financing to a Spanish energy company. The loan, with an average life of nine years, makes it possible to extend the duration of Iberdrola's debt at a competitive price and is part of the company's financing strategy, capable of diversifying its debt structure. The loan has a drawdown period of 24 months.
Investment firm Low Carbon secures $513mn for renewables projects [Reuters]
- British renewable energy investment firm Low Carbon said it had secured up to 400 million pounds ($513 million) of capital from life insurance company MassMutual to finance renewable energy projects in the UK, Europe and North America. The capital commitment will be directed towards large-scale renewable energy projects and enable Low Carbon to provide liquidity for its pipeline of projects until 2025, the firm said.
Acme locks USD $488mn loan for green hydrogen project in Oman [Renewables Now]
- India’s Acme Group said it has secured INR 40 billion (USD 487.9m/EUR 438.4m) in debt financing for the first phase of a large-scale green hydrogen and ammonia production project in Oman’s Duqm Special Economic Zone. Acme is developing the huge scheme under a 50/50 joint venture with Norwegian renewable power producer Scatec ASA. When it initially unveiled the project in March last year, the duo said that its first phase envisages the installation of 300 MW of electrolysers to produce around 100,000 tonnes of green ammonia annually, powered by 500 MW of solar. Later, the complex will be expanded to reach an annual production of 1.2 million tonnes with about 3.5 GW of electrolysers and 5.5 GWp of solar photovoltaic (PV) generation.
Main Sequence just scored $450mn for its third deep tech fund [Smart Company]
- Main Sequence has scored a tidy $450 million in the first close of its third fund, bringing its total funds under management to over $1 billion. The firm plans on closing out its latest fund by the end of the year. According to Mike Zimmerman, a partner at Main Sequence, the third fund will be focusing on decarbonisation and climate solutions, as well as critical technologies such as cybersecurity, quantum computing, and advanced semiconductor technology. Main Sequence’s new fund has secured participation from a mixture of new and returning investors such as Hostplus, LGT Crestone, Morgan Stanley Wealth Management, NGS Super, Australian Ethical Investment, Daiwa Securities Group, and The Grantham Foundation.
Spain to award EUR 280mn ($310mn) in state aid for energy storage projects [Renewables Now]
- The Spanish ministry for the ecological transition opened two funding programmes, providing a combined total of EUR 280 million (USD 310.4m) in state aid to advance energy storage projects. The first programme is set to allocate EUR 180 million -- EUR 150 million to support standalone energy storage projects, with thermal storage initiatives receiving a funding boost of EUR 30 million. The second funding programme, with a budget of EUR 100 million, will specifically target pumped storage hydro projects. Eligible proposals include the development of new reversible hydroelectric plants or the expansion of existing facilities by adding new turbine units.
Energize Ventures raises $300mn for new climate funds, changes name [Bloomberg]
- Energize Ventures, a venture firm that invests in climate-focused software, has raised $300 million for new growth equity funds and is changing its name to Energize Capital to reflect a broader investment strategy. The capital infusion for the Chicago-based firm’s funds brings its total assets under management to $1.2 billion. It comes at a time when the startup industry is reeling and venture capital funding for climate tech has dipped, after a recent boom.
Japan's JERA to invest $300mn in green tech-focused start-ups [Reuters]
- Japan's top liquefied natural gas buyer JERA will invest $300 million in green technology-focused start-ups through a newly created in-house unit as part of the country's efforts to reach carbon neutrality by 2050. JERA would target start-ups which develop decarbonisation technologies including hydrogen, ammonia and other renewables, digital technologies as well as those focusing on women's health, it said in a statement.
Abu Dhabi asset management firm, Offset8 Capital, to build $250mn carbon fund [Carbon Credits]
- Offset8 Capital, an Abu Dhabi asset management company, plans to raise $250 million for a carbon investment fund as demand goes up for better-regulated carbon credits. The company aims to close the initial capital for the carbon fund in the third quarter of this year. The firm decided to establish the fund in the Abu Dhabi Global Market (ADGM) to take advantage of its framework that regulates carbon credits. Once closed, the carbon investment fund will be the first of its kind in the Middle East.
CFM invests $102mn in Release by Scatec’s solar solutions [Afrik21]
- Fund manager Climate Fund Managers (CFM) has announced a $102 million investment in Release by Scatec. The subsidiary of Norwegian company Scatec finances and installs modular solar energy production and electricity storage systems in Africa. CFM is making this investment through the Climate Investor One (CI1) fund, an $850 million hybrid vehicle dedicated to financing renewable energies.
Nature-based Solutions
Deals and commitments above $1mn
Individual Deals & Market Watch
- Ripple has committed $100 million to the carbon markets. According to the announcement, the fund is expected to be used in the acceleration of carbon removal activities while ensuring that carbon markets are modernized through investment. In addition, Ripple would be committed to building a “portfolio of additive, long-term, nature, and science-based carbon credits”. These are part of its plans to achieve net zero by 2030.
£65mn ($84mn) Nature Restoration Fund open for applications [The Scottish Farmer]
- The Scottish Government’s £65 million Nature Restoration Fund is accepting funding applications for projects that put land, rivers and seas on the road to recovery. Managed by NatureScot, the fund supports projects to take practical steps to tackle the twin crises of climate change and biodiversity loss and to restore Scotland’s natural environment. The fund has already awarded around £20 million to over 125 projects across the country since it opened. A range of projects have already been funded, including a Helping Nature grant for the Peffery Wet Woodland project to create a wet woodland and help divert an artificially straightened watercourse back to a natural course.
- The US Department of Commerce and National Oceanic and Atmospheric Administration (NOAA) have launched the Ocean-Based Climate Resilience Accelerators program, designed to support blue economy startups and concepts. The program, funded by the Inflation Reduction Act, will foster public-private partnerships to help support small businesses that are developing sustainable technologies geared toward climate resilience to attract capital, mature their technologies and scale their business models for climate impact.
- The Green Climate Fund (GCF) has formally approved a US$10 million project to empower women in Cote D’Ivoire to manage climate risks effectively. Spearheaded by the United Nations World Food Programme (WFP) in partnership with the Government of Côte d'Ivoire, the project will provide gender-sensitive climate adaptation practices and provide women and youth access to productive assets, such as improved agricultural inputs and equipment. Additionally, women will benefit from utilizing climate information and index-based insurance, enabling them to make informed decisions regarding their farming activities. An estimated 70,000 vulnerable women and youth at the forefront of the impact of the climate crisis are expected to benefit from the project.
PLANETech launches Nature Tech competition, awarding startups $2.2mn in investments [CTech]
- PLANETech, a non-profit innovation community of the Israel Innovation Institute, the Consensus Business Group, and the Ministry of Environmental Protection, has announced that it has launched a Nature Tech Competition to accelerate nature-based solutions to protect, conserve and restore natural ecosystems. The competition will consist of several tracks and grant direct investments of $2.2 million, fully funded pilots, and mentorship from experts in the field of conservation and technology.
- The National Marine Sanctuary Foundation has awarded seven grants totaling more than $2 million to support coral restoration in the four U.S. Pacific Island jurisdictions of Hawaiʻi, American Samoa, Commonwealth of the Northern Mariana Islands and Guam. The grants are funded by the National Oceanic and Atmospheric Administration. The grants will support projects that directly contribute to coral restoration progression in the U.S. Pacific Islands by providing the means for capacity building and/or restoration implementation.
$1mn grant awarded to Oshi and The Better Meat Co to advance alt-salmon filets [The Fish Site]
- Israeli alt-protein startup Oshi and US-based Better Meat Co are working together to create a healthy and sustainable alternative to salmon that delivers on taste and nutrition without harming fish or human health. Combining Oshi’s cutting-edge 3D technology and The Better Meat Co’s innovative mycoprotein fermentation technology, the two startups will use the BIRD grant to create fish-free salmon whole cuts made from a high-protein, all-natural, whole food mycoprotein.
What’s new in climate investment?
More NewsFunders
Lead Contributors
.png)
