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Though innovations in the supply chain have cut refuse and improved access to fresh food, solving the waste challenge remains an uphill battle, Megan writes with Retail Deals reporter Kimberly Chin. 

Why it matters: The issue presents a trillion-dollar opportunity for myriad startups focused on food waste — if they're able to navigate complex silos and shifting regulations. 

Context: Food waste companies raised $1.85 billion in private funding as of September, per Crunchbase. 

Around 84% of grocery retailers have plans to invest in food waste technologies over the next two years, according to a Coresight Research survey.

The big picture: The cost of incorporating food waste technology into the supply chain is high — and the current alternative (i.e., the landfill) is much cheaper, says Callie Babbitt, a Rochester Institute of Technology professor.

The food supply chain is siloed, posing an obstacle to incentivizing the mass scaling of new technology, says Babbitt, who leads a group working on circular economy solutions.

Zoom in: When economic incentives fall short, state and local policies aligned with waste reduction can spur innovation in the supply chain.

California passed a statewide law requiring food waste separation and management by businesses and residences alike.

New York has passed a similar bill that calls for businesses to donate excess food and to recycle scrap that can’t be donated.

Meanwhile, corporate America is working to better mitigate its carbon footprint, especially the ever-elusive Scope 3 emissions.

Scope 3, which encompasses the carbon footprint of a product's entire lifecycle from seed to landfill and often accounts for a large portion of a company's total footprint, is often hard to measure given the siloed nature of the supply chain.

The bottom line: Ironically, the most effective way to scale food waste technology is to de-scale the supply chain, says Ruben Smit, CEO of grocery e-commerce startup Sunrise Daily Goods.

The more localized the supply chain becomes, the easier it becomes to mitigate waste, Smit says. "All of these outcomes are possible if you keep the supply chain short."

1 big thing: The supply chain's food waste problem

Illustration of food waste piled on a kitchen scale.

The SPAC announced yesterday by HyperloopTT flies in the face of a moribund market for these types of deals and yet is a nod to the guts of this arrangement, and what it promises is warranted, Michael Flaherty writes. 

Why it's the BFD: Though the merger comes as confidence in SPACs remains tiny, the potential impact of the company's ambitions are massive in terms of the clean, superfast transport that it promises.

Yes, but: The company is not yet profitable, the technology is not yet proven, and the SPAC's investors have not yet closed the deal.

Details: HyperloopTT is merging with the Forest Road SPAC, which raised $350 million in March 2021 and is led by former Walt Disney executives Kevin Mayer and Tom Staggs.

Of note: Hyperloop technology is a vacuum tube-based system that moves people and things via magnets and levitating capsules that can move as fast as 600 mph. Elon Musk has been a strong proponent.

A hyperloop train is designed to jet passengers from New York to D.C. in 30 minutes (normal trip: 3.5 to 4 hours).

The SPAC announcement put a pre-money equity value of around $600 million on the company, including outstanding options and warrants. 

The intrigue: Hyperloop and maglev projects are eligible for federal funds under last year's bipartisan infrastructure law.

What we're watching: Whether the market climate allows this deal to eventually de-SPAC, and whether the grand ambitions and technology behind the company comes to fruition.

Former Disney Executives Turn Into L.A.’s Hottest Dealmakers

2. The BFD: Believe, or don't

A model of the Hyperloop project on display at Technical University of Munich (TUM) for Aeronautics, Astronautics and Geodesy. Photo by Sven Hoppe/picture alliance via Getty Images)

Electric vehicles may get the headlines, but animal agriculture generates more emissions than global transportation, by some measures. That's part of what drives Lisa Feria, managing partner and CEO of Stray Dog Capital.

Why she matters: The Kansas-based VC firm invests in early-stage food, beverage, and biotechnology sectors. It has about $90 million AUM.

Among Stray Dog's portfolio companies: Upside Foods, the Berkeley-based unicorn that's developing cultivated chicken meat. 

Feria says she's incorporating a bacon alternative grown from fungus at her Thanksgiving table this year. We talked with her for this week's Expert Voices. 

This interview was lightly edited for length.

What was the big story in clean energy/climate-tech in the past couple weeks?

Last week, Upside Foods was issued a “no questions” letter from the FDA, which indicates regulators have found nothing unsafe about the cell cultured chicken the company makes. This is the first regulatory approval for any cultivated meat in the U.S. 

We are still at the very start of cultivated meat technology, and this type of innovation will be key for helping the U.S. to achieve climate goals. 

We cannot reach our greenhouse gas emission reduction goals without transitioning the food system away from animal agriculture.

The critically important role that improving the food system, specifically in transitioning away from high-polluting animal agriculture, plays in reducing the impact that humans have on the climate. 

Animal agriculture produces more greenhouse gases than global transportation. But alternative proteins generate significantly less attention and investment than climate solutions in the transportation sector like electric cars.  

In three-ish words, what changes would you make to clean energy/climate-tech investing?

💼 First job: Co-op in a consulting company for the Navy. My first manager asked me what my favorite type of warfare was. I quickly realized I was in the wrong industry.

👑 Proudest investment:  A company that had a great competitive advantage but very little traction in the market. They are still thriving and growing today.

🤦 The one you regret: A commodity product with great branding but not a strong food-tech background or robust enough IP. They had a hard time carving a place in the market, growing aggressively, or maintaining gross margins.

3. Cutting emissions, one meal at a time

Pictured: Lisa Feria. Photo illustration: Sarah Grillo/Axios. Photo: Courtesy Stray Dog Capital

🛀 Hot tub boat machine: It’s the electric vehicle you didn’t know you needed: a Nevada-based company is bringing “hot tub boats into the mainstream.”

“We've seen immediate growth in both our rental and direct to consumer sales,” Spacruzzi founder Alex Kanwetz said in a press release. The company is also pursuing an IP play.

"Unlike most power boats on the water, our all-electric propulsion and our patent protected electric and propane heating system do not put pollutants into the air or water,” Kanwetz said. Sign us up for Climate Wheels, please.

🔋 Paging DJ Khaled: Korea's LG Chem announced a $3b deal with Tennessee officials to build a large factory to build cathode materials for EV batteries, Ben Geman writes in Generate.

LG seemed to nod at the new climate law, which ties subsidies to domestic production. The factory enables the company to "proactively address the changing dynamics of the global battery material market,"the company said in its announcement.

Construction in Clarksville — about 50 miles outside Nashville — is slated to start early next year, with mass production starting in the second half of 2025.

🍕 If your oven breaks tomorrow: Domino's has started delivering pizzas via a growing fleet of Chevy Bolt electric cars, Ben also writes.

The pizza chain said over 100 of the custom-branded models are on the road, growing to 855 by the end of 2023. They've even got a state-by-state map of the rollout.

Domino's said it will be the "largest electric pizza delivery fleet in the country." We may just have to expense some Cheesy Bread to check it out.

🤖 Getting scolded by a robot: Our What’s Next colleague Joann Muller hailed a Cruise robotaxi in San Francisco. 

“Here I was, in the back seat of a robotaxi, being chauffeured around San Francisco by a ghost.” 

The vehicle warned Joann to keep her hands inside the car when she rolled down the window to wave at passersby. 

4. 🌡️ Temperature check

Illustration of an earth in a roast pan with a meat thermometer.

• UgoWork, a Quebec-based developer of lithium-ion batteries, equipment and software for industrial vehicles, closed an all-equity $22.8m CAD (~$17m) Series B financing round led by Fonds de Solidarité FTQ. Export Development Canada and existing investors Desjardins Capital and Investissement Québec participated. https://axios.link/3gs9uFu 

• Rosotics, an Arizona-based developer of a folding printing system for additive manufacturing, raised $750,000 in pre-seed funding led by Draper Associates. Correlation Ventures, Vibe Capital, and Sequoia Capital participated. Rosotics is initially focusing on aerospace. https://axios.link/3tTWImh 

• Tallarna, a London-based analytics and financial management software provider for the built environment, closed a partnership and undisclosed minority investment with ABB. https://axios.link/3tZcX1i 

• Stonepeak Partners will seek to raise between $15b and $20b for its next flagship North American infrastructure fund, per Reuters. https://axios.link/3AE1YOL

• Glencore amended the terms whereby Metal Acquisition, a Texas-based SPAC, will buy its Cobar copper mine in Australia. The revised deal is valued at $1.1b. https://axios.link/3EXhWGr

• Zapp, a British maker of electric motorcycles, agreed to go public at an implied $573m post-merger value via CIIG Capital Partners II, based in New York. https://axios.link/3tRMzGY

• Global Infrastructure Partners, a New York-based infrastructure investment firm, agreed to sell Indian renewable energy producer Vector Green Energy for $345m to Singapore-listed Sembcorp Industries. https://axios.link/3i9xkpV

• Bunge, the Missouri-based ag giant, acquired 49% of BZ Group, a France-based aggregator of grains, oilseeds and pulses from independent farmers. The Beuzelin family remains majority shareholder with 51% ownership. https://axios.link/3Vkc3YX 

The Energy Department yesterday announced $100m in funding to eight companies under its “SCALEUP” program. Here’s the rundown, by funding amount:

• InventWood in Maryland received $20m for development of its more sustainable wood materials for construction.

• Kent Houston Offshore Engineering in Houston received $17.5m to develop two floating offshore wind turbine technologies integrated with a NASA-developed passive control system.

• Niron Magnetics, based in Minneapolis, also received $17.5m to commercialize a permanent magnet without critical minerals.

• Imagen Energy in Wisconsin received $12m to demonstrate U.S.-manufactured EV fast charging equipment.

• Quidnet Energy in Houston received $10m to expand its geomechanical pumped storage tech to a commercial system at CPS Energy, the municipal electric utility for San Antonio.

• Via Separations received $9.75m to demonstrate how membrane modules used in industrial manufacturing can be used in pulp and paper facilities.

• Ampaire, based in California, received $9m to commercialize hybrid electric propulsion tech for aircraft.

• CorePower Magnetics, based in Pittsburgh, received $5m to manufacture high-power density magnetic components for inductors, transformers, and motors.

• Royal Helium, a Saskatoon-based helium exploration and development company, executed a term sheet with an arm's length lender to provide a $20m three-year credit facility. https://axios.link/3GD3Qv1 

• South Star Battery Metals, a Vancouver-based mine developer, closed $10m in financing with Sprott Private Resource Streaming and Royalty, based in Toronto, to fund construction of the Phase 1 plant and Santa Cruz Graphite mine in Bahia, Brazil. The agreement includes a total cash consideration of up to $28m as prepayment for graphite concentrates. https://axios.link/3tSpyDx 

• Cemex USA, a ready-mix concrete manufacturer, received a $3.7m cooperative agreement from the Department of Energy, in collaboration research nonprofit RTI International, to conduct a front-end engineering design study of a post-combustion carbon capture system at a Cemex cement plant in New Braunfels, Texas. https://axios.link/3iblvjm 

• Southern California Gas, the natural gas utility, and Captura, a Pasadena-based carbon removal developer, are testing direct ocean carbon removal technology for atmospheric CO2. It was installed at Caltech's Kerckhoff Marine Lab in Newport Beach. https://axios.link/3ACPKWs 

• The Bureau of Land Management approved the exploration plan of operations for the Bonnie Claire Lithium Project by Nevada Lithium Resources and Iconic Minerals in Nye County, Nevada. https://axios.link/3EVyxKt 

• X-Terra Resources, a Quebec-based minerals exploration company, completed reconnaissance of its Galli and Liberty lithium projects in Quebec. Magnetic and lidar surveys are next. https://axios.link/3gspIi3 

• Lion Electric, the Quebec-based manufacturer of electric medium and heavy-duty trucks, entered into a four-year supply agreement for lithium-ion battery cells. https://axios.link/3OwWvPF 

• Phoenix Motorcars, an Ontario-based manufacturer of electric medium-duty vehicles, signed a non-binding MOU with Contemporary Amperex Technology, the China-based battery manufacturer, to co-development batteries for Phoenix Motorcars products. https://axios.link/3U6R2jn 

• Core Electric Cooperative, a Colorado-based electricity distributor, and FarmBox Foods, a Colorado-based manufacturer of controlled-climate farms, to grow trees in an upcycled, insulated shipping container to rehabilitate forests in Core’s service area. https://axios.link/3U9RoWQ 

• Neste, a Finland-based fuels supplier, delivered over 500,000 gallons of sustainable aviation fuel to Los Angeles International Airport in collaboration with Laxfuel, a consortium of airlines providing jet fuel infrastructure at the airport. The fuel was delivered by barge. https://axios.link/3gspA23 

• Westinghouse Electric and Fortum, a Finnish energy provider, signed a long-term partnership to develop, license and deliver nuclear fuel to the Loviisa Nuclear Power Plant in Finland as a Western alternative to Russian-supplied fuel. https://axios.link/3tRG1rE 

• Enel North America, a subsidiary of the Italy-based energy company, launched a retail energy business in deregulated U.S. states, starting with Texas, aimed at selling renewable energy to C&I customers. https://axios.link/3EYqZH7 

• Arizona, the Navajo Nation, and Nevada submitted a concept paper to the U.S. Department of Energy seeking federal funding to develop a regional clean hydrogen hub in the Southwest. https://axios.link/3EVsR35 

• Enfinium, a London-based waste-to-energy provider, joined the Bacton Thames Net Zero Cooperation Agreement, which aims to decarbonize industrial processes in southeast England and the Thames Estuary area by capturing and storing CO2. https://axios.link/3Xuz90Q 

• Cognite, a Norway-based industrial software provider, entered a long-term frame agreement with Equinor. https://axios.link/3V1fYdH 

• Autel Energy, a China-based EV charging equipment manufacturer, announced an exclusive EV charging distribution partnership with BEQ Technology, a Quebec-based EV charging system installer. https://axios.link/3gsGDkx 

• Rio Tinto says it’s proven the effectiveness of its low-carbon iron-making process using ores from mines in Australia in an 18-month pilot in Germany. The company plans to develop a larger-scale pilot plant aimed at decarbonizing the steel value chain. https://axios.link/3gvZhbe 

• Technip Energies, a France-based engineering and technology services provider, suspended the liquidity agreement it entered last year with Kepler Cheuvreux, a Paris-based financial advisory firm, pending renewal of the resolution of the general meeting of shareholders authorizing share buybacks. https://axios.link/3U35V6z 

• The Iowa Environmental Council and Sierra Club are fighting MidAmerican’s plan to continue operating five coal-fired power plants in Iowa even as it seeks to build solar and wind assets. The environmental groups presented an alternative resource analysis that calls for closing the coal plants. https://axios.link/3XszDEH 

5. Hot deals

• The U.S. Department of Energy appointed Chris Heckle as the first director of the Materials Manufacturing Innovation Center at Argonne National Laboratory. Heckle was previously research director for inorganic materials research and Asia Research Labs for Corning Inc. https://axios.link/3V3PR5R 

• CarbonCapture, an LA-based DAC developer, hired Robert Whyte as vice president, projects, with an initial focus on the company’s Project Bison facility in Wyoming. Whyte joins the company from Suncor Energy Service. https://axios.link/3GX82WL 

• Amprius Technologies, the Bay Area battery materials developer, hired Siyu Jiang as vice president of legal affairs. Jiang was previously senior corporate associate at Wilson Sonsini Goodrich and Rosati. https://axios.link/3AEkaI3 

• Neo Performance Materials, a Toronto-based developer and processor of rare earths and rare metals, announced that CFO Rahim Suleman will assume the role of president Jan. 1. The current president and CEO, Constantine Karayannopoulos, will remain CEO. https://axios.link/3ADLLci 

• Highview Power, a London-based large-scale long-duration energy storage developer, hired Sandra Redding as general counsel. Redding was previously general counsel for Seadrill. https://axios.link/3V726OX 

• Wejo Group, a U.K.-based provider of cloud and software analytics for vehicles, announced that former CEO Alan Masarek resigned from the board Nov. 19, pursuant to his accepting the role of CEO at another company, Avaya, this year. https://axios.link/3i6OhBz 

November 23, 2022

1 big thing: The supply chain's food waste problem