1 big thing: Chinese automaker grabs a U.S. toehold

an illustration of a car key that has red buttons printed with stars that form a chinese flag 

2. The BFD: Using PPAs to electrify truck fleets

Illustration of a commercial electric truck leaving lighting bolt tracks behind it

3. 🌡️ Temperature check

Illustration of an ice cream cone with a melted puddle of ice cream that looks like the earth.

4. Hot deals

5. It's personnel

🌼 If Megan's drive through Arizona and California was any indication, the super bloom is here.

📽️ On the heels of Terry's first watch of "The Fugitive" last week, Alan is brainstorming other chase movies. "Children of Men" comes to mind — but it's not exactly what you'd call "fun." Suggestions welcome!

Thanks to Michael Flaherty and Phoebe Neidl for today's edits.

And thank you for reading Climate Deals! Please share with your friends, family and flower children.

Climate Deals

1 big thing: Private investors accelerate climate push

2. The BFD: Norway's hydrogen play in Texas

Illustration of hydrogen molecules surrounded by dollar elements and abstract shapes

3. It's a beautiful day in the agrihood

4. 🌡️ Temperature check

Illustration of an earth emoji combined with a sick face emoji.

5. Hot deals

6. It's personnel

☕ Happy Monday! We're back at it, so let's get started.

🌳 Situational awareness: Mercuria, the energy and commodities group with hubs in Geneva, Houston and Singapore, announced plans this morning to make $500 million in nature-based investments, including carbon sequestration projects with small landowners in North America.

🐍 Megan can't come to the phone right now. Why? Oh, because she saw Taylor Swift live this weekend and may never recover.

🏃‍♂️ Alan last week was shocked and then delighted to learn that Terry had never seen “The Fugitive.” Even better: The movie holds up great.

And thank you for reading Climate Deals! Please share with your friends, family and Swift City residents

1 big thing: Costs keep mounting for offshore wind

Illustration of offshore wind turbines in a sea made of money.

2. The BFD: Alt fuel maker nabs $139M

Illustration of a large gas tank and ammonia molecules made from quarters.

3. Carbon-credit tracking startup raises $3M

Illustration of a calculator that reads CO2

Illustration of a pattern of repeating thermometers with different temperature levels.

Happy Wednesday, and Ramadan Mubarak to everyone celebrating the holiday.

✈️ Megan is flying to Chicago for her brother's wedding and will try to eat as much deep dish pizza and drink as much Old Style as physically possible while she's there.

📦 Alan has started packing, slowly, ahead of the family's move to Rhode Island next month. Thoughts and prayers welcome.

And thank you for reading Climate Deals! Please share with your friends, family and wedding party members.

1. Overheard in New Orleans

2. Norway's hydrogen play in Texas

3. Revolv revs up funding round 

4. Alt-fuel maker nabs $139M

5. Carbon-credit tracking startup raises $3M

6. Three-country nuclear coalition

Good morning, and happy Friday. Before we get into this week's digest, we want to share some M&A insights from the Big Easy.

1 big thing: Here come the first 10 small reactors

Illustration of a hardhat with an atom on the front.

2. The BFD: Brushing off $5B in losses

Illustration of Benjamin Franklin in a car's rear view mirror, with a dollar-symbol air freshener.

3. Expert Voices: Eli Aheto of BeyondNetZero

photo illustration of Eli Aheto of BeyondNetZero surrounded by squares overlaid on a photo of a hilly landscape

Illustration of the sand from a sand timer filling the temperature scale on a thermometer.

🥶 Ah, yes, March weather in Chicago. This is why Megan moved away in the first place. 

🌭 Entirely unrelated to climate, Alan is midway through "Last Stand of the Hot Dog King" in Grub Street. Give it a read.

Thanks to Michael Flaherty and Jay Bennett for today's edits.

And thank you for reading Climate Deals! Please share with your friends, family and anyone brave enough to outlast a Chicago winter.

Ford executives told analysts yesterday that the company's electric vehicles will likely lose about $3 billion this year, one year after its EVs posted another $2 billion in losses.

Why it's the BFD: Ford can absorb these kinds of losses, especially with its EV unit on track for pre-tax profitability in 2026. But cash-strapped startups like Rivian and Lucid? Not so much.

What's happening: Ford's internal combustion and fleet-vehicle divisions generated $10 billion in adjusted operating income.

That more than makes up for the EV unit's losses, which mounted as Ford ramped up production amid inflation, commodities volatility and ongoing supply chain challenges.

The intrigue: Some analysts had urged Ford to entirely spin off its EV division. Yesterday's financial results suggest that keeping EVs in-house instead was a wise one.

Zoom in: It's tough out there for EV-only automakers.

Arrival, Canoo, Faraday Future, Fisker, Lightning, Lordstown, Lucid, Mullen, Nikola, Polestar and Rivian are just, ahem, a handful of the pure-play manufacturers struggling to stay afloat.

Indeed, Ford offloaded its Rivian stake in February.

Ford brushes off $5B in losses

Ford Motor Company

Ford executives <a class="gtmContentClick" data-vars-link-text="told analysts" data-vars-click-url="https://www.reuters.com/business/autos-transportation/ford-sees-3-billion-pretax-loss-its-ev-business-this-year-2023-03-23/" data-vars-content-id="31169011-cc0e-4b82-a20c-d6a89b3690ca" data-vars-headline="Ford brushes off $5B in losses" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.reuters.com/business/autos-transportation/ford-sees-3-billion-pretax-loss-its-ev-business-this-year-2023-03-23/" target="_blank">told analysts</a> yesterday that the company&#x27;s electric vehicles will likely lose about $3 billion this year, one year after its EVs <a class="gtmContentClick" data-vars-link-text="posted another" data-vars-click-url="https://www.cnbc.com/2023/03/23/ford-2022-unit-financials.html" data-vars-content-id="31169011-cc0e-4b82-a20c-d6a89b3690ca" data-vars-headline="Ford brushes off $5B in losses" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.cnbc.com/2023/03/23/ford-2022-unit-financials.html" target="_blank">posted another</a> $2 billion in losses.Why it&#x27;s the BFD: Ford can absorb these kinds of losses, especially with its EV unit on track for pre-tax profitability in 2026. But cash-strapped startups like Rivian and Lucid? Not so much.

A three-country nuclear energy coalition is investing $400 million to win federal sign-off and begin making components for at least 10 small modular reactors.

Why it matters: The nine-figure investment is another concrete milestone toward building a new nuclear energy supply chain in North America.

Driving the news: The Tennessee Valley Authority, Ontario Power Generation, and Poland's Synthos Green Energy said today that they've ordered a pressure vessel from BWXT for the first small modular reactor from GE Hitachi Nuclear Energy.

The vessel is a key reactor component that takes more time to build than most. It will likely be manufactured in Canada. GE Hitachi is based in North Carolina.

Meanwhile, the $400 million should be enough to achieve sign-off from nuclear regulators while putting the pressure vessel into production.

Of note: Canadian nuclear regulators are expected to give final design approval in 2025. U.S. sign-off is anticipated in 2026.

That would enable Ontario's first SMR to come online by 2028, and the TVA's reactor shortly thereafter.

Ontario Power Generation has ordered one reactor unit, but indicated it would order three

What's next: The TVA, Ontario Power Generation and Synthos have announced plans to build 10 total SMRs.

The TVA envisions four reactors at its Clinch River site near Knoxville. It said this month it's considering as many as 30.

Zoom out: NuScale, the Oregon-based SMR developer, announced this month that it had started manufacturing reactor components.

The company aims to bring its first reactor online in Idaho in 2029.

👀 What we're watching: Whether utilities Dominion Energy and Duke Energy make follow-on investment announcements with GE Hitachi.

Dominion invested in GE Hitachi's SMR program in 2018. Duke has been in talks with the company.

Here come the first 10 small reactors

Manufacturing is set to begin for North America's first SMR.

Nuclear power

A three-country nuclear energy coalition is investing $400 million to win federal sign-off and begin making components for at least 10 small modular reactors.Why it matters: The nine-figure investment is another concrete milestone toward building a new nuclear energy supply chain in North America.Driving the news: The Tennessee Valley Authority, Ontario Power Generation, and Poland&#x27;s Synthos Green Energy said today that they&#x27;ve ordered a pressure vessel <a class="gtmContentClick" data-vars-link-text="from BWXT" data-vars-click-url="https://www.businesswire.com/news/home/20230321005309/en/BWXT-Awarded-Engineering-Contract-from-GE-Hitachi-for-BWRX-300-Small-Modular-Reactor" data-vars-content-id="7b3d89ce-8baf-4101-9314-9d9a820ba506" data-vars-headline="Here come the first 10 small reactors" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.businesswire.com/news/home/20230321005309/en/BWXT-Awarded-Engineering-Contract-from-GE-Hitachi-for-BWRX-300-Small-Modular-Reactor" target="_blank">from BWXT</a> for the first small modular reactor from <a class="gtmContentClick" data-vars-link-text="GE Hitachi Nuclear Energy" data-vars-click-url="https://www.axios.com/pro/climate-deals/2023/01/30/ge-hitachi-small-modular-reactor-first-smr" data-vars-content-id="7b3d89ce-8baf-4101-9314-9d9a820ba506" data-vars-headline="Here come the first 10 small reactors" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/pro/climate-deals/2023/01/30/ge-hitachi-small-modular-reactor-first-smr" target="_self">GE Hitachi Nuclear Energy</a>.<ul><li>The vessel is a key reactor component that takes more time to build than most. It will likely be manufactured in Canada. GE Hitachi is based in North Carolina.</li></ul>Meanwhile, the $400 million should be enough to achieve sign-off from nuclear regulators while putting the pressure vessel into production.Of note: Canadian nuclear regulators are expected to give final design approval in 2025. U.S. sign-off is anticipated in 2026.<ul><li>That would enable Ontario&#x27;s first SMR to come online by 2028, and the TVA&#x27;s reactor shortly thereafter.</li><li>Ontario Power Generation has ordered one reactor unit, but indicated it would order three</li></ul>What&#x27;s next: The TVA, Ontario Power Generation and Synthos have announced plans to build 10 total SMRs.<ul><li>The TVA envisions four reactors at its Clinch River site near Knoxville. It <a class="gtmContentClick" data-vars-link-text="said this month" data-vars-click-url="https://www.bloomberg.com/news/articles/2023-03-09/energy-dept-casts-wide-loan-application-net-ceraweek-update" data-vars-content-id="7b3d89ce-8baf-4101-9314-9d9a820ba506" data-vars-headline="Here come the first 10 small reactors" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.bloomberg.com/news/articles/2023-03-09/energy-dept-casts-wide-loan-application-net-ceraweek-update" target="_blank">said this month</a> it&#x27;s considering as many as 30.</li></ul>Zoom out: NuScale, the Oregon-based SMR developer, <a class="gtmContentClick" data-vars-link-text="announced this month" data-vars-click-url="https://www.businesswire.com/news/home/20230309005685/en/NuScale-Power-Places-First-Long-Lead-Material-Production-Order-with-Doosan-Enerbility" data-vars-content-id="7b3d89ce-8baf-4101-9314-9d9a820ba506" data-vars-headline="Here come the first 10 small reactors" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.businesswire.com/news/home/20230309005685/en/NuScale-Power-Places-First-Long-Lead-Material-Production-Order-with-Doosan-Enerbility" target="_blank">announced this month</a> that it had started manufacturing reactor components.<ul><li>The company aims to bring its first reactor online in Idaho in 2029.</li></ul>👀 What we&#x27;re watching: Whether utilities Dominion Energy and Duke Energy make follow-on investment announcements with GE Hitachi.<ul><li>Dominion <a class="gtmContentClick" data-vars-link-text="invested" data-vars-click-url="https://www.powermag.com/dominion-invests-in-ge-hitachi-development-of-300-mw-smr/" data-vars-content-id="7b3d89ce-8baf-4101-9314-9d9a820ba506" data-vars-headline="Here come the first 10 small reactors" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.powermag.com/dominion-invests-in-ge-hitachi-development-of-300-mw-smr/" target="_blank">invested</a> in GE Hitachi&#x27;s SMR program in 2018. Duke has been <a class="gtmContentClick" data-vars-link-text="in talks" data-vars-click-url="https://www.bloomberg.com/news/articles/2022-02-17/duke-in-talks-with-nuclear-firms-to-mull-move-to-small-reactors" data-vars-content-id="7b3d89ce-8baf-4101-9314-9d9a820ba506" data-vars-headline="Here come the first 10 small reactors" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.bloomberg.com/news/articles/2022-02-17/duke-in-talks-with-nuclear-firms-to-mull-move-to-small-reactors" target="_blank">in talks</a> with the company.</li></ul>

Rising costs keep weighing down America's nascent offshore wind industry.

Why it matters: A host of issues, from supply chain constraints to broken turbines, have developers threatening to pull the plug on projects unless they get more money. 

Driving the news: Danish developer Ørsted told New Jersey regulators this month that it needs more money for its Ocean Wind 1 project off the South Jersey coast.

It's seeking a $1.50 increase to the average resident's electric bill — a move that's inflamed local opposition.

Co-owner PSEG has washed its hands of the project. The electric utility unloaded its 25% stake to Ørsted in January.

Meanwhile, developer Avangrid this winter took steps to scrap and re-bid contracts for its 2+ GW Commonwealth Wind project serving Massachusetts.

What they're saying: "The process takes so long that a lot of things can happen in the middle and there should be some adjustments,” Avangrid CEO Pedro Azagra Blázquez told analysts in February.

Plus: The Trump administration's reticence to greenlight offshore wind projects means some power contracts were negotiated years ago.

The big picture: No one's saying this will halt offshore wind investment. The U.S. last summer had more than 40 GW in development. 

Yes, but: With policymakers focused on energy security — and offshore wind opponents getting more organized — repeated delays and price hikes aren't ideal.

Our thought bubble: Ørsted and Avangrid are savvy developers. Ørsted is among the world's largest offshore wind developers and built the first offshore wind farm in the U.S. If they're having trouble, so too will the rest of the sector.

Costs keep mounting for U.S. offshore wind

More challenges for a sector trying to put steel in the water.

offshore wind

Rising costs keep weighing down America&#x27;s nascent offshore wind industry.Why it matters: A host of issues, from supply chain constraints to <a class="gtmContentClick" data-vars-link-text="broken turbines" data-vars-click-url="https://link.axios.com/click/30921046.113/aHR0cHM6Ly93d3cuYXhpb3MuY29tL3Byby9jbGltYXRlLWRlYWxzLzIwMjMvMDEvMjQvZ2UtZWFybmluZ3MtcmVuZXdhYmxlcy13aW5kLWVuZXJneS1vdXRsb29rLTIwMjM_dXRtX3NvdXJjZT1uZXdzbGV0dGVyJnV0bV9tZWRpdW09ZW1haWwmdXRtX2NhbXBhaWduPXByb19kZWFsc19jbGltYXRldGVjaF9zdWJzJnN0cmVhbT10b3A/621c1dd576f4c823e0df4ce1Bc86831ae" data-vars-content-id="9bc7f767-6a50-443a-ade7-23bf63a112b6" data-vars-headline="Costs keep mounting for U.S. offshore wind" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://link.axios.com/click/30921046.113/aHR0cHM6Ly93d3cuYXhpb3MuY29tL3Byby9jbGltYXRlLWRlYWxzLzIwMjMvMDEvMjQvZ2UtZWFybmluZ3MtcmVuZXdhYmxlcy13aW5kLWVuZXJneS1vdXRsb29rLTIwMjM_dXRtX3NvdXJjZT1uZXdzbGV0dGVyJnV0bV9tZWRpdW09ZW1haWwmdXRtX2NhbXBhaWduPXByb19kZWFsc19jbGltYXRldGVjaF9zdWJzJnN0cmVhbT10b3A/621c1dd576f4c823e0df4ce1Bc86831ae" target="_blank">broken turbines</a>, have developers threatening to pull the plug on projects unless they get more money. Driving the news: Danish developer Ørsted <a class="gtmContentClick" data-vars-link-text="told New Jersey regulators" data-vars-click-url="https://subscriber.politicopro.com/article/2023/03/builder-of-new-jerseys-wind-farm-looks-for-more-money-from-ratepayers-00085718" data-vars-content-id="9bc7f767-6a50-443a-ade7-23bf63a112b6" data-vars-headline="Costs keep mounting for U.S. offshore wind" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://subscriber.politicopro.com/article/2023/03/builder-of-new-jerseys-wind-farm-looks-for-more-money-from-ratepayers-00085718" target="_blank">told New Jersey regulators</a> this month that it needs more money for its Ocean Wind 1 project off the South Jersey coast.<ul><li>It&#x27;s seeking a $1.50 increase to the average resident&#x27;s electric bill — a move that&#x27;s inflamed local opposition.</li><li>Co-owner PSEG has washed its hands of the project. The electric utility <a class="gtmContentClick" data-vars-link-text="unloaded" data-vars-click-url="https://www.njspotlightnews.org/2023/01/offshore-wind-pseg-orsted-rate-counsel-brian-lipman-inflation-supply-chain-bpu-glenrock-associates-energy-master-plan-environment-new-jersey/" data-vars-content-id="9bc7f767-6a50-443a-ade7-23bf63a112b6" data-vars-headline="Costs keep mounting for U.S. offshore wind" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.njspotlightnews.org/2023/01/offshore-wind-pseg-orsted-rate-counsel-brian-lipman-inflation-supply-chain-bpu-glenrock-associates-energy-master-plan-environment-new-jersey/" target="_blank">unloaded</a> its 25% stake to Ørsted in January.</li></ul>Meanwhile, developer Avangrid this winter <a class="gtmContentClick" data-vars-link-text="took steps to" data-vars-click-url="https://link.axios.com/click/30921046.113/aHR0cHM6Ly9jb21tb253ZWFsdGhtYWdhemluZS5vcmcvZW5lcmd5L21hc3Mtb2Zmc2hvcmUtd2luZC1kZXZlbG9wZXJzLXN0YWxsaW5nLWZvci10aW1lLz91dG1fc291cmNlPW5ld3NsZXR0ZXImdXRtX21lZGl1bT1lbWFpbCZ1dG1fY2FtcGFpZ249cHJvX2RlYWxzX2NsaW1hdGV0ZWNoX3N1YnMmc3RyZWFtPXRvcA/621c1dd576f4c823e0df4ce1B30eb7a58" data-vars-content-id="9bc7f767-6a50-443a-ade7-23bf63a112b6" data-vars-headline="Costs keep mounting for U.S. offshore wind" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://link.axios.com/click/30921046.113/aHR0cHM6Ly9jb21tb253ZWFsdGhtYWdhemluZS5vcmcvZW5lcmd5L21hc3Mtb2Zmc2hvcmUtd2luZC1kZXZlbG9wZXJzLXN0YWxsaW5nLWZvci10aW1lLz91dG1fc291cmNlPW5ld3NsZXR0ZXImdXRtX21lZGl1bT1lbWFpbCZ1dG1fY2FtcGFpZ249cHJvX2RlYWxzX2NsaW1hdGV0ZWNoX3N1YnMmc3RyZWFtPXRvcA/621c1dd576f4c823e0df4ce1B30eb7a58" target="_blank">took steps to</a> <a class="gtmContentClick" data-vars-link-text="scrap and re-bid contracts" data-vars-click-url="https://link.axios.com/click/30921046.113/aHR0cHM6Ly9jb21tb253ZWFsdGhtYWdhemluZS5vcmcvZW5lcmd5L2F2YW5ncmlkLXNlZWtpbmctcHJpY2UtcmVsaWVmLW9uLW9mZnNob3JlLXdpbmQtaHlkcm8tcHJvamVjdHMvP3V0bV9zb3VyY2U9bmV3c2xldHRlciZ1dG1fbWVkaXVtPWVtYWlsJnV0bV9jYW1wYWlnbj1wcm9fZGVhbHNfY2xpbWF0ZXRlY2hfc3VicyZzdHJlYW09dG9w/621c1dd576f4c823e0df4ce1B276c7d9a" data-vars-content-id="9bc7f767-6a50-443a-ade7-23bf63a112b6" data-vars-headline="Costs keep mounting for U.S. offshore wind" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://link.axios.com/click/30921046.113/aHR0cHM6Ly9jb21tb253ZWFsdGhtYWdhemluZS5vcmcvZW5lcmd5L2F2YW5ncmlkLXNlZWtpbmctcHJpY2UtcmVsaWVmLW9uLW9mZnNob3JlLXdpbmQtaHlkcm8tcHJvamVjdHMvP3V0bV9zb3VyY2U9bmV3c2xldHRlciZ1dG1fbWVkaXVtPWVtYWlsJnV0bV9jYW1wYWlnbj1wcm9fZGVhbHNfY2xpbWF0ZXRlY2hfc3VicyZzdHJlYW09dG9w/621c1dd576f4c823e0df4ce1B276c7d9a" target="_blank">scrap and re-bid contracts</a> for its 2+ GW Commonwealth Wind project serving <a class="gtmContentClick" data-vars-link-text="Massachusetts." data-vars-click-url="https://link.axios.com/click/30921046.113/aHR0cHM6Ly93d3cuYXhpb3MuY29tL3Byby9jbGltYXRlLWRlYWxzLzIwMjIvMTAvMzEvbWFzc2FjaHVzZXR0cy1vZmZzaG9yZS13aW5kLW5vLWxvbmdlci12aWFibGU_dXRtX3NvdXJjZT1uZXdzbGV0dGVyJnV0bV9tZWRpdW09ZW1haWwmdXRtX2NhbXBhaWduPXByb19kZWFsc19jbGltYXRldGVjaF9zdWJzJnN0cmVhbT10b3A/621c1dd576f4c823e0df4ce1B62c28c79" data-vars-content-id="9bc7f767-6a50-443a-ade7-23bf63a112b6" data-vars-headline="Costs keep mounting for U.S. offshore wind" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://link.axios.com/click/30921046.113/aHR0cHM6Ly93d3cuYXhpb3MuY29tL3Byby9jbGltYXRlLWRlYWxzLzIwMjIvMTAvMzEvbWFzc2FjaHVzZXR0cy1vZmZzaG9yZS13aW5kLW5vLWxvbmdlci12aWFibGU_dXRtX3NvdXJjZT1uZXdzbGV0dGVyJnV0bV9tZWRpdW09ZW1haWwmdXRtX2NhbXBhaWduPXByb19kZWFsc19jbGltYXRldGVjaF9zdWJzJnN0cmVhbT10b3A/621c1dd576f4c823e0df4ce1B62c28c79" target="_blank">Massachusetts.</a>What they&#x27;re saying: &quot;The process takes so long that a lot of things can happen in the middle and there should be some adjustments,” Avangrid CEO Pedro Azagra Blázquez told analysts in February.Plus: The Trump administration&#x27;s reticence to greenlight offshore wind projects means some power contracts were negotiated years ago.The big picture: No one&#x27;s saying this will halt offshore wind investment. The U.S. last summer had more than 40 GW in development. Yes, but: With policymakers focused on energy security — and offshore wind opponents <a class="gtmContentClick" data-vars-link-text="getting more organized" data-vars-click-url="https://link.axios.com/click/30921046.113/aHR0cHM6Ly93d3cuYXhpb3MuY29tL3Byby9lbmVyZ3ktcG9saWN5LzIwMjMvMDMvMDYvd2FzaGluZ3Rvbi13aGFsZS13YXJzP3V0bV9zb3VyY2U9bmV3c2xldHRlciZ1dG1fbWVkaXVtPWVtYWlsJnV0bV9jYW1wYWlnbj1wcm9fZGVhbHNfY2xpbWF0ZXRlY2hfc3VicyZzdHJlYW09dG9w/621c1dd576f4c823e0df4ce1Bd54405ce" data-vars-content-id="9bc7f767-6a50-443a-ade7-23bf63a112b6" data-vars-headline="Costs keep mounting for U.S. offshore wind" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://link.axios.com/click/30921046.113/aHR0cHM6Ly93d3cuYXhpb3MuY29tL3Byby9lbmVyZ3ktcG9saWN5LzIwMjMvMDMvMDYvd2FzaGluZ3Rvbi13aGFsZS13YXJzP3V0bV9zb3VyY2U9bmV3c2xldHRlciZ1dG1fbWVkaXVtPWVtYWlsJnV0bV9jYW1wYWlnbj1wcm9fZGVhbHNfY2xpbWF0ZXRlY2hfc3VicyZzdHJlYW09dG9w/621c1dd576f4c823e0df4ce1Bd54405ce" target="_blank">getting more organized</a> — repeated delays and price hikes aren&#x27;t ideal.Our thought bubble: Ørsted and Avangrid are savvy developers. Ørsted is among the world&#x27;s largest offshore wind developers and built the first offshore wind farm in the U.S. If they&#x27;re having trouble, so too will the rest of the sector.

Founders often prioritize scale. Eli Aheto tells Axios he thinks more about market size — not company size. "A relentless focus on unit economics and disciplined overhead will lead to a profitable business that attracts investors."

Why he matters: Aheto is managing director with BeyondNetZero, the $3.5 billion climate venture fund from private equity giant General Atlantic.

This interview was lightly edited for length.

What, in your view, was the big story in climate tech this week?

The IPCC report Monday. Not surprisingly, it highlighted the lack of progress toward the emissions reductions goals aligned with 1.5-degree temperature rise.

By being slow to deploy technologies that underpin near-term decarbonization, we are subjecting consumers to higher energy costs over the next decade. We are missing climate targets at a cost to consumers that grows every year.

The fact that solar, wind and EVs in most markets are cost-competitive should catalyze action to mitigate emissions. The transition from green premiums to lower cost/volatility is the real catalyst for our portfolio companies.

Countries are evaluating opportunities to create new industries and employment and reduce dependencies.

The IRA gets all the attention given the size of the U.S. market, but other  non-EU countries are also creating the legislative support to drive priorities tied to climate.

In three-ish words, what change would you make to climate-tech investing?

💼 First job: IT support team at Constitution Reinsurance Corp.

👑 Proudest investment: A transmission line between Montana and Alberta that enabled thousands of megawatts of wind. It was sold to a large utility and then to a Berkshire Hathaway portfolio company. So I can say I saw the opportunity about a decade before Warren Buffett! Warren, I have some other ideas for you.

🤦 Facepalm investment: A small personal investment in a friend’s comedy movie project.

It's about market size, not startup scale

The BeyondNetZero managing director joins us for Expert Voices.

Photo illustration: Tiffany Herring/Axios; Photo: Courtesy General Atlantic

Expert voices

Founders often prioritize scale. Eli Aheto tells Axios he thinks more about market size — not company size. &quot;A relentless focus on unit economics and disciplined overhead will lead to a profitable business that attracts investors.&quot;Why he matters: Aheto is managing director with BeyondNetZero, <a class="gtmContentClick" data-vars-link-text="the $3.5 billion" data-vars-click-url="https://www.axios.com/pro/climate-deals/2022/12/20/general-atlantic-35b-beyondnetzero-climate-fund" data-vars-content-id="d81dde70-fb1d-4296-8dae-4ae5baac361e" data-vars-headline="It&#x27;s about market size, not startup scale" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/pro/climate-deals/2022/12/20/general-atlantic-35b-beyondnetzero-climate-fund" target="_self">the $3.5 billion</a> <a class="gtmContentClick" data-vars-link-text="climate venture fund" data-vars-click-url="https://www.axios.com/pro/climate-deals/2022/04/15/beyondnetzeros-lance-uggla-q-and-a" data-vars-content-id="d81dde70-fb1d-4296-8dae-4ae5baac361e" data-vars-headline="It&#x27;s about market size, not startup scale" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/pro/climate-deals/2022/04/15/beyondnetzeros-lance-uggla-q-and-a" target="_self">climate venture fund</a> from private equity giant General Atlantic.

Revolv, a San Francisco-based vehicle fleet manager, raised a $15 million Series A to electrify commercial vans and trucks, the company tells Axios.

Why it matters: The company plans to use power purchase agreements (PPAs) to help fuel its growth and fleet expansion.

Details: Greenbacker Capital Management led the all-equity round. It closed in December. Revolv declined to disclose the valuation.

How it works: A fleet operator hires Revolv to acquire the vehicles, install the charging infrastructure, handle the maintenance and manage the charging.

"There are striking barriers to fleets: cost complexity and risk,” CEO Scott Davidson says. “We provide assurance for the fleet that it’s up and running.”

What’s next: The company expects to deliver about 100 vehicles this year, mostly in California due to state incentives.

Customers range from 20-vehicle fleets to 10,000-vehicle fleets.

What we’re watching: Companies such as TeraWatt are betting they can draw electric trucks to their charging stations.

Others like Revolv are betting on bringing charging infrastructure directly to the fleet operators.

Exclusive: Startup using PPAs to electrify vehicle fleets

The company expects to deliver about 100 vehicles this year.

Electric vehicles

Revolv, a San Francisco-based vehicle fleet manager, raised a $15 million Series A to electrify commercial vans and trucks, the company tells Axios.Why it matters: The company plans to use power purchase agreements (PPAs) to help fuel its growth and fleet expansion.Details: Greenbacker Capital Management led the all-equity round. It closed in December. Revolv declined to disclose the valuation.How it works: A fleet operator hires Revolv to acquire the vehicles, install the charging infrastructure, handle the maintenance and manage the charging.<ul><li>&quot;There are striking barriers to fleets: cost complexity and risk,” CEO Scott Davidson says. “We provide assurance for the fleet that it’s up and running.”</li></ul>What’s next: The company expects to deliver about 100 vehicles this year, mostly in California due to state incentives.<ul><li>Customers range from 20-vehicle fleets to 10,000-vehicle fleets.</li></ul>What we’re watching: Companies such as <a class="gtmContentClick" data-vars-link-text="TeraWatt" data-vars-click-url="https://link.axios.com/click/30908823.129/aHR0cHM6Ly93d3cuYXhpb3MuY29tL3Byby9jbGltYXRlLWRlYWxzLzIwMjIvMDkvMTMvdGVycmF3YXR0LXN1cnBhc3Nlcy0xLWJpbGxpb24tZnVuZGluZy12aXNpb24tcmlkZ2UtcGFydG5lcnM_dXRtX3NvdXJjZT1uZXdzbGV0dGVyJnV0bV9tZWRpdW09ZW1haWwmdXRtX2NhbXBhaWduPXByb19kZWFsc19jbGltYXRldGVjaF9zdWJzJnN0cmVhbT10b3A/621c1dd576f4c823e0df4ce1Bcc9d1eba" data-vars-content-id="ede14f1b-a6a8-4f59-b3c9-7944ed1194da" data-vars-headline="Exclusive: Startup using PPAs to electrify vehicle fleets" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://link.axios.com/click/30908823.129/aHR0cHM6Ly93d3cuYXhpb3MuY29tL3Byby9jbGltYXRlLWRlYWxzLzIwMjIvMDkvMTMvdGVycmF3YXR0LXN1cnBhc3Nlcy0xLWJpbGxpb24tZnVuZGluZy12aXNpb24tcmlkZ2UtcGFydG5lcnM_dXRtX3NvdXJjZT1uZXdzbGV0dGVyJnV0bV9tZWRpdW09ZW1haWwmdXRtX2NhbXBhaWduPXByb19kZWFsc19jbGltYXRldGVjaF9zdWJzJnN0cmVhbT10b3A/621c1dd576f4c823e0df4ce1Bcc9d1eba" target="_blank">TeraWatt</a> <a class="gtmContentClick" data-vars-link-text="are betting" data-vars-click-url="https://link.axios.com/click/30908823.129/aHR0cHM6Ly93d3cuYXhpb3MuY29tL3Byby9jbGltYXRlLWRlYWxzLzIwMjMvMDEvMTIvdGVyYXdhdHQtbmVoYS1wYWxtZXItZWxlY3RyaWMtdmVoaWNsZS1jaGFyZ2luZz91dG1fc291cmNlPW5ld3NsZXR0ZXImdXRtX21lZGl1bT1lbWFpbCZ1dG1fY2FtcGFpZ249cHJvX2RlYWxzX2NsaW1hdGV0ZWNoX3N1YnMmc3RyZWFtPXRvcA/621c1dd576f4c823e0df4ce1B1d2fd6e3" data-vars-content-id="ede14f1b-a6a8-4f59-b3c9-7944ed1194da" data-vars-headline="Exclusive: Startup using PPAs to electrify vehicle fleets" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://link.axios.com/click/30908823.129/aHR0cHM6Ly93d3cuYXhpb3MuY29tL3Byby9jbGltYXRlLWRlYWxzLzIwMjMvMDEvMTIvdGVyYXdhdHQtbmVoYS1wYWxtZXItZWxlY3RyaWMtdmVoaWNsZS1jaGFyZ2luZz91dG1fc291cmNlPW5ld3NsZXR0ZXImdXRtX21lZGl1bT1lbWFpbCZ1dG1fY2FtcGFpZ249cHJvX2RlYWxzX2NsaW1hdGV0ZWNoX3N1YnMmc3RyZWFtPXRvcA/621c1dd576f4c823e0df4ce1B1d2fd6e3" target="_blank">are betting</a> they can draw electric trucks to their charging stations.<ul><li>Others like Revolv are betting on bringing charging infrastructure directly to the fleet operators.</li></ul>

Alan Neuhauser

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Exclusive: Startup using PPAs to electrify vehicle fleets

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