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BFD Expert Voices - Climate Deals

BFD Expert Voices

Software built to help bring back the woolly mammoth and restore near-extinct species like the northern white rhino is being spun off into a separate company, Alan writes.

Why it matters: The new company, Form Bio, says its software is purpose-built for the sprawling field of "synthetic biology" — where scientists engineer DNA.

Details: The company's being spun off from Colossal Biosciences, and it's gotten buy-in to the tune of a $30 million Series A. 

Jazz Venture Partners c0-led the round with Builders VC and  entrepreneur Thomas Tull. 

John Spinale, a Jazz managing partner, will join the company's board. 

How it works: Synthetic biology looks to "program the code of life the way that computer experts have learned to program machines," Bryan Walsh wrote for Axios Future in 2020.

"If they can succeed — and if the public accepts their work — synthetic biology stands to fundamentally transform how we live." (Haven't we seen a movie about this?)

The tools can create stronger pollinators, among myriad other purposes. 

The DNA editing tool CRISPR is one example. 

Of note: President Biden issued an executive order this month aimed at vastly scaling the country's so-called bioeconomy.

Meanwhile, Colossal Biosciences raised a $60 million Series A this spring. 

What they're saying: "Whether that is the medicines and drugs we take, whether that is the food we eat, the clothing that we wear, the air we breathe, the fuel that goes into our cars — all of this is going to be advanced with synthetic biology," Kent Wakeford, former Colossal COO turned Form Bio CEO, tells Alan.

1 big thing: Woolly mammoth software may now save bees

Illustration of a DNA strand with a blinking cursor adding to it

Woltair, a Prague-based energy management startup, raised €16.3 million (~$15.8 million) in Series A funding, the software company tells Megan.

Why it's the BFD: The ongoing energy crisis in the EU — expected to worsen as winter approaches — is opening the door for energy-focused companies in the region. 

Details: ArcTern Ventures led the majority-equity round as its first investment out of its latest fund. Westly Group, Aternus and existing investors Kaya VC and Inven also participated in the round, which closed August 29.

How it works: Woltair makes software that allows homeowners to find and hire installers for items like heat pumps. It also makes software for technicians for handling administrative work, CEO Jan Hanuš tells Megan.

With the additional funding, Woltair is also offering some customers financing options through a partnership with a bank in Poland to help decrease the upfront costs of heat pump installation. The costs can sometimes be "equal to the price of a new car," Hanuš says, and a "headache" for buyers.  

Of note: Hanuš says the company wants to sell devices, parts and other materials to technicians directly in an e-commerce play, in addition to its software and fintech angles.

What we're watching: Whether Woltair can meet the demand across multiple countries while expanding into others — notably Germany and Italy — just as many EU residents look for a way out of the ongoing energy crisis this winter.

2. The BFD: Woltair raises €16.3M amid EU crisis

Illustration of a the stars on a plugged in EU flag turned on and glowing.

📉 The ripple effect of Europe's energy crisis: Russia's invasion of Ukraine is creating a huge drag on the global economy, driven by soaring costs for natural gas, food and other commodities, our Generate colleague Ben Geman writes.

Global growth next year is expected to creep along at +2.2%, down from 3% this year, per OECD.

🔋 Hertz and BP beef up EV charging: The companies plan to roll out a national charging network for Hertz customers, Ben writes.

It's part of Hertz's deep push into EVs. The company, which left bankruptcy just last year, said it would buy 175,000 EVs from GM, which follows prior deals announced with Tesla and Polestar.

🗣 DAC builds a lobbying shop: The Swiss direct air capture company Climeworks has registered U.S. lobbyists for the first time.  A filing shows them retaining the clean energy-focused firm Boundary Stone Partners, Ben reports. (Busy guy!)

Boundary Stone's work is expected to include "at-scale deployment of DAC, carbon dioxide removal, federal permitting, [and] establishment of voluntary carbon markets," it states. 

3. 🌡️ Temperature check

Illustration of a thermometer shaped like a smoke stack with smoke spewing out.

• G2 Venture Partners, a sustainability-focused VC based in the Bay Area, is raising $100m for its G2VP Opportunity Fund I, per an SEC filing. The firm’s most recent fund, G2VP II, closed in April 2021 with $500m, per PitchBook data. https://axios.link/3SBO1aF 

• Sinai Technologies, a San Francisco-based decarbonization software provider, has raised a $22m Series A led by Energize Ventures. New investors Stardust Equity and HighSage participated, as well as previous investors Obvious Ventures, Valo Ventures, Afore and High Alpha. https://axios.link/3SDJXXy 

• Aspen Creek Digital, an L.A.-area renewable Bitcoin mining operator, raised $8m in Series A financing led by Galaxy Digital and Polychain Capital. Jamie Lee of Tamarack Global, Alex Robertson of Tiger Management, CMT Digital, Luxor Technologies, Mana Ventures, Gaingels, and Copper River Energy Partners participated. https://axios.link/3UIvN97 

• Trace Midstream has received an equity commitment of $400m from Quantum Energy Partners, a Houston-based PE firm, to form Trace Midstream Partners II and an affiliate, Trace Carbon Solutions, to develop CCS assets and midstream infrastructure. https://axios.link/3rbxtur 

• Indiev, a Vernon, California-based electric vehicle startup, agreed to go public at an implied $600m valuation via Malacca Straits Acquisition. https://axios.link/3Rf0mQX 

• Energy Capital Partners agreed to buy British waste management firm Biffa for around £1.3b (~$1.4b). The 410 pence-per-share bid is lower than the 445p approach from ECP back in June. https://axios.link/3xVlOUr

• Hyliion Holdings, an Austin-area developer of electrified powertrains for Class 8 semi-trucks, has closed its acquisition of a hydrogen and fuel agnostic capable generator from GE Additive for $15m cash and about $22m in Hyliion stock. https://axios.link/3DT9EiB 

• Altus Power, a Connecticut-based developer and operator of renewable power projects for the C&I sector, has entered definitive agreements to acquire about 97 MW of operating solar assets across nine states for about $220m in cash and assumed liabilities. https://axios.link/3DXvktP 

• Westinghouse Electric has signed a service agreement with the Canadian Nuclear Safety Commission to begin a Vendor Design Review, a pre-licensing technical assessment to commercialize a micro reactor. https://axios.link/3dKwvlP 

• Equinor and Tallgrass, a Kansas-based oil and gas transportation company, announced a collaboration to assess potential large-scale hydrogen and ammonia projects in North America. https://axios.link/3DXyfTe 

4. Hot deals

• Scale Microgrid Solutions, the New Jersey-based microgrid developer, has hired Chris Cantone as chief revenue officer. Cantone joins the company from SunPower. https://axios.link/3fbWLFV 

• Zipcar has named Angelo Adams as the new head of the company. Adams was previously a senior director at Otis Elevator. https://axios.link/3LNO80C 

5. It's personnel

🚨 Situational awareness: Heather Zichal is leaving American Clean Power after less than two years as its CEO, ACP announced. Zichal is joining JPMorgan Chase as its new global head of sustainability. 

JC Sandberg will serve as ACP's interim CEO, and Jason Clark as its interim president. Initial reactions from insiders: This was a very short tenure for this kind of role. Stay tuned!

📺 Register here to join Alan today at 12:30pm ET for a virtual event featuring U.S. Department of Energy Loan Programs Office director Jigar Shah.

🌁 Megan is starting to plan a trip to SF next week. Drop a line if you'd like to meet up IRL.

🤔 Alan is fascinated by Zichal's departure from ACP. It's going to be a busy day!

Thanks to George Moriarty and Phoebe Neidl for today's edits.

And thank you for reading Climate Deals! Please share with your friends, family and heat pump holdouts.

September 27, 2022

1 big thing: Woolly mammoth software may now save bees