Your Newsletter at a Glance
Note from the author: There is big movement in Germany this week as the country launches a $55bn funding program to decarbonize their energy intensive industries, and Düsseldorf-based Uniper plans to accelerate the green transition with an $8.8bn investment into wind, solar, and implementing their company goal of zero-carbon by 2030.
In nature-based solutions, over $500mn is going to the restoration and development of Guyana’s mangrove ecosystem, $260mn from the Biden administration is funding the restoration of fish passages and habitats, and the Ocean 14 Capital Fund has passed its goal of $165mn and will invest in a novel scallop fishing technology company.
Deal Count: This week covers over $70bn in deals and commitments in climate finance and over $1bn in NbS around the world. Enjoy the 25 summaries below!
Climate Finance
Deals and commitments above $100mn
Market Watch
Germany launches EUR 50bn ($54.9bn) funding program for decarbonization of heavy industry [mondaq]
- Germany has launched a EUR 50 billion funding program to support energy-intensive industries such as steel, chemical, and cement to become climate-neutral. The program offers financial support for companies that would like to invest in innovative and climate-friendly technologies.
Uniper plans accelerated green transition with €8bn ($8.8bn) investment [Renewables Now]
- German energy major Uniper SE intends to spend more than EUR 8 billion (USD 8.77bn) through 2030 to transform itself into a greener company. Duesseldorf-based Uniper said in a statement that its focus areas for the years to come will be: Customers, Green and Flexible Power, Greener Gases, and Optimisation. Its faster-than-previously-planned green transformation will involve investments in solar and wind farms, with the goal of having an installed generating capacity that is 80% zero-carbon by 2030.
DG Fuels eyes early 2024 FID for $4.2bn SAF project in Louisiana [Renewables Now]
- DG Fuels LLC announced the closing of certain transactions with a number of investors and its anticipation to achieve a final investment decision (FID) on a proposed USD-4.2-billion (EUR 3.8bn) sustainable aviation fuel (SAF) project in Louisiana early next year. DG Fuels, the developer of a low-CO2 life cycle emissions synthetic fuel system, is getting ready to build a 180-million-gallon-per-year SAF plant in Louisiana as the template for multiple projects across North America, Europe and Asia.
Research
DCVC announces $1bn in fresh funding; releases inaugural DCVC Deep Tech Opportunities Report [DCVC]
- From its founding, DCVC has asked a specific question: How can the leading edge of computing be married to emerging capabilities to bring humanity greater resilience, abundance, and equitability? DCVC organized their inaugural edition of their Deep Tech Opportunities Report around three domains central to deep tech, and that drive many current investments: Augmenting Human Abilities, Climate Tech, and Computational Biology & Health.
Nature-based Solutions
Deals and commitments above $1mn
Market Watch
Over $500mn invested to restore, develop Guyana’s mangrove ecosystem [News Room]
- Over the past three years, the government says it has invested more than $500 million to the restoration and expansion of the country’s mangrove ecosystem. The government is actively working to restore mangroves in about 12 areas, and conducting training across the country.
- NOAA Fisheries is announcing two funding opportunities totaling $260 million through President Biden’s Investing in America agenda to support new fish passage projects, which will not only help protect and restore migrating fish and their habitats, but yield important community and economic benefits.
- The Ocean 14 Capital Fund, which has invested in a number of aquaculture operations in a bid to improve marine health, has received a €20 million investment from Convex Group, taking it past its €150 million funding goal. The Luxembourg-based fund, which also received €10 million from family offices and HNWs, now aims to reach €200 million by the end of 2023. The investment from Convex, an international specialty insurer and reinsurer, means that the fund has now raised €160 million from investors – including Monaco’s sovereign wealth fund, European Investment Fund (EIF), Niklas Zennström, the founder of Skype, as well as €30 million from the investment arm of Ingka Group.
Research
At $635mn, governments doubled investments in alternative protein last year [VegNews]
- In 2022, global governments doubled their investments in the alternative protein sector to $635 million, yet further support is needed to unlock its full potential. According to Good Food Institute's 2021 Global Innovation Needs Assessment, the alternative protein industry has the potential to support 9.8 million jobs and generate $1.1 trillion in economic activity by 2050. However, they say that to reach this potential, governments worldwide must ramp up their support to the tune of $10.1 billion annually, allocated between research & development (R&D) and commercialization.
The Project Finance for Permanence model has protected over 120 million hectares [WEF]
- Project Finance for Permanence (PFP) is a tool to enable governments and local communities, in partnership with funders and NGOs, to take advantage of an array of financial instruments and secure long-term management and financing for networks of conservation areas. They are designed to withstand changes in national leadership and are adapted to the social, political and environmental context of the particular place.
Climate Finance
Deals and commitments above $100mn
Individual Deals & Market Watch
Portland proposes $750mn investment for climate justice [Smart Cities World]
- Inaugural plan from the Portland Clean Energy Community Benefits Fund Committee outlines strategies for community-led energy projects and climate solutions.
EDPR to sell Polish wind, solar assets to Orlen in EUR 500mn ($548mn) deal [Renewables Now]
- EDP Renovaveis SA, or EDP Renewables, has signed a deal to sell a 301-MW wind and solar portfolio in Poland to Orlen Wind 3, a subsidiary of local oil refiner Orlen SA. The renewable energy company said that the bundle includes three operating wind farms with a combined capacity of 142 MW and up to 159 MW of hybrid solar projects under development. EDPR is selling the assets for an estimated enterprise value of PLN 2.20 billion (USD 552.9m/EUR 497m).
Iberdrola signs new EUR 500mn ($548mn) secured green loan with Citi and Eksfin [Atalayar]
- Iberdrola strengthens its liquidity position with a new EUR 500 million green loan granted by Citi and partially guaranteed by the Norwegian Export Credit Agency (Eksfin). This is the first loan guaranteed by Eksfin to a Spanish energy company. The loan, with an average maturity of nine years, allows Iberdrola to extend the duration of its debt at a competitive price and is part of the company's financing strategy to diversify its debt structure.
US DoE allocates $450mn for home solar, storage in Puerto Rico [Renewables Now]
- The US Department of Energy (DoE) announced up to USD 450 million (EUR 410m) to back residential rooftop solar and battery storage installations in Puerto Rico. Applications can be made until September 18 by private industry, non-profit organizations, energy cooperatives, educational institutions, or state and local governmental entities. The announcement represents the first round of funding from the USD-1-billion Puerto Rico Energy Resilience Fund.
Venture capital firm A/O launches $275mn fund to tackle CO2 emissions [Reuters]
- European venture capital firm A/O has launched a 250 million euro ($275.3 million) fund investing in tech companies which aims to reduce greenhouse gas emissions, as investors look to tap into the burgeoning green finance sector. A/O said companies in which it has invested so far include SPAN, which produces tech products to allow households to reduce their energy use, and Spanish timber company 011H.
Dutch govt obtains EC nod for EUR 246mn ($270.9mn) green H2 support scheme [Renewables Now]
- The Dutch government received the green light from the European Commission (EC) for a EUR-246-million (USD 270.9m) scheme to support the production of green hydrogen by adding at least 60 MW of electrolysis capacity. In order to provide state aid, the Dutch government will hold a competitive bidding process later this year. This tender will be open to all companies established in the European Economic Area (EEA) that operate or plan to build a hydrogen production facility in the Netherlands.
ADB, India sign $200mn loan for expanding urban services in Rajasthan [PIB]
- The Government of India and Asian Development Bank (ADB) signed a $200 million loan as additional financing for the ongoing Rajasthan Secondary Towns Development Sector Project to expand water supply and sanitation systems and enhance urban resilience and heritage living in selected towns. “The project will incorporate various innovative and climate-resilient solutions for expanding basic urban services and incorporate nature-based solutions to rehabilitate heritage structures besides piloting public-private partnerships in the state’s water and sanitation sector to deepen private sector engagement,” said Takeo Konishi, Country Director of ADB’s India Resident Mission, for ADB.
ChargePoint secures $150mn revolving credit facility [Finsmes]
- ChargePoint Holdings, Inc. (NYSE: CHPT), a Campbell, CA-based electric vehicle (EV) charging network, announced a new credit agreement which provides for a $150m revolving credit facility. The facility was led by J.P. Morgan Chase Bank as Administrative Agent and Joint Lead Arranger, HSBC Innovation Banking as Joint Lead Arranger, and both Citi and Goldman Sachs as Documentation Agents.
U.S. government to invest $100mn in CO2 utilization projects [Carbon Herald]
- The Biden-Harris Administration announced it will invest $100 million in carbon utilization projects. The grants, made available through the Investing in America agenda will support states, local governments, and public utilities in purchasing products produced from CO2 emissions. The funding aims to accelerate the adoption of advanced CO2 management technologies and build a market for environmentally sustainable fuels, chemicals, and building materials derived from emissions from industrial and power sites.
Nature-based Solutions
Deals and commitments above $1mn
Individual Deals & Market Watch
Smithfield Foods: Improving water quality with $45mn system [Food Digital]
- Investing US$45m, Smithfield Foods is improving its water quality in Big Sioux River with its new state-of-the-art wastewater treatment system. "This new wastewater project reinforces Smithfield's approach to implementing sustainable systems that improve environmental quality and benefit the community. The investment we have made in Sioux Falls will significantly reduce nutrient discharges and improve water quality in the Big Sioux River basin," said Stewart Leeth, chief sustainability officer for Smithfield.
EU commits €33mn ($36.3mn) to climate, biodiversity programme in PNG [Carbon Pulse]
- The EU has committed E33 million ($36mn) to Papua New Guinea as parts of a forests, climate change, and biodiversity investment programme in a bid to aid the Pacific nation in its transition to a greener economy.
FAO receives €25m ($27.3mn) from the EU to scale sustainability programme [FoodBev]
- The United Nations’ Food and Agriculture Organization (FAO) has received €25 million in additional funding from the European Union to extend and scale up the Sustainable Wildlife Management (SWM) programme. The investment marks the second phase of the initiative, which will run from August 2023 to May 2029. It will form part of NaturAfrica, a new EU initiative for biodiversity conservation in Africa. The first phase of the initiative received €45 million, with co-funding from the French Global Environment Facility and French Development Agency.
Konscious Foods’ $26mn raise highlights growing demand for plant-based seafood [Vegconomist]
- Canadian alt seafood brand Konscious Foods announces it has raised $26 million in a seed financing round to make its plant-based seafood food widely accessible. Participant investors include Protein Industries Canada, Zynik Capital, and Walter Group. The raised funds will support the company’s retail and food service expansion, its manufacturing operations, and marketing initiatives for its nationwide retail launches.
- Agriculture Secretary Russell Redding invited Pennsylvania farmers to apply for $13 million in tax credits available to support their efforts to improve soil health and water quality. Tax credits through Pennsylvania's innovative conservation financing program, Resource Enhancement and Protection (REAP), can be combined with other state funding, including the Agriculture Conservation Assistance Program, and Conservation Excellence Grants, as well as federal funding through programs like the Environmental Quality Incentives Program to help pay for on-farm enhancements that protect the environment and boost farm sustainability.
Revalue Nature: Changing the face of carbon projects with $10mn Series A fund [tech.eu]
- UK climate tech start-up, Revalue Nature, secures $10mn Series A to boost its platform capabilities and bring integrity to the nature-based carbon market. The round was co-led by Ecosystem Integrity Fund (EIF) and SJF Ventures - two US-based venture capital firms focused on climate and impact. The fresh funding will allow Revalue Nature to ‘grow partnerships and a global pipeline of next-generation projects’ as well as expand the capabilities of its platform.
- GoodMorning Global announced it had secured a record RM20 million (US$4.4M) from over 1,000 investors in a single equity crowdfunding campaign (ECF), confirming the global interest in the plant-based industry. The raised funds would accelerate biotechnology and food technology research while supporting its hoped for IPO listing over the next two years. Aiming to put Malaysia at the forefront of alt protein innovation, the group’s subsidiary GoodMorning Bio Industries received Bio-Based Accelerator (BBA) status from the Malaysian Bioeconomy Corporation. The certification aims to accelerate product R&D to meet Malaysia’s growing plant-based protein products for local consumption and exports.
- U.S. Senate Majority Leader Charles E. Schumer and U.S. Senator Kirsten Gillibrand announced over $2.5 million in Great Lakes Restoration Initiative (GLRI) funding to restore fish habitat across the Great Lakes. This investment comes from the historic funding in the bipartisan Infrastructure Investment and Jobs Act, which Senators Schumer and Gillibrand championed and which included $1 billion – the largest ever single investment in the GLRI.
- The governments of Canada and Manitoba are providing over $1.9 million in funding under the Sustainable Canadian Agricultural Partnership (Sustainable CAP) to 54 projects supporting sustainable farming in Manitoba through the Resilient Agricultural Landscape Program (RALP), federal Agriculture and Agri-Food Minister Lawrence MacAulay and Manitoba Agriculture Minister Derek Johnson announced.
- Malaysian pharmaceutical giant Duopharma Biotech Berhad (DBB) will invest up to US$1 million in US-based AI company, The Live Green Co (TLGC) to develop plant-powered pharmaceutical products and functional foods. . It uses a technology and data science platform called Chakara to find plant-derived alternatives to replace animal, synthetic, and highly processed ingredients. Last February, TLGC launched a precision fermentation division in Chile to address food safety, health, and climate change issues with new animal-free ingredients.
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