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BFD Expert Voices - Climate Deals

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Department of Energy scientists are expected to confirm tomorrow that they achieved a fusion reaction that produced more energy than they put in, Alan reports. 

Why it matters: The apparent breakthrough will encourage further investment in fusion companies that have already raised billions of dollars in their quest for the holy grail — or white whale — of energy generation: potentially limitless, waste-free, carbon-free power. 

What's happening: Scientists at Lawrence Livermore National Laboratory in California achieved "net energy gain in a fusion reaction for the first time," the FT reported last night.

The Department of Energy said Secretary Jennifer Granholm will announce a "major scientific breakthrough" tomorrow.

State of play: A host of companies and government agencies have been working for decades toward developing nuclear fusion. 

Commonwealth Fusion, based in Cambridge, Mass., has raised more than $2 billion, including a blockbuster $1.8 billion Series B.

TAE Technologies, based in Foothill Ranch, Calif., has brought in more than $1.2 billion, Climate Deals reported this summer. 

ITER, the multi-government effort in France, is the best funded: It's seen its funding climb to $22 billion. (Defense contracts? Sign us up instead for multi-government energy funding.)

Be smart: Fusion has long been — energy sector veterans, say it with us — the energy source that was 25 years away 25 years ago. 

There's a general consensus that now may be different, and that the research has reached some kind of inflection point.

Still, it can be hard to untangle sober forecast from bold prediction from pure bluster. 

TAE is aiming to bring a reactor online as soon as 2025. Commonwealth Fusion is expecting net energy within a similar timeframe.

Bottom line: "It’s a race to net energy," TAE's Jim McNiel told Alan this summer. 

"The valuation of these companies is pretty fixed until the next major event happens, which is net energy. When net energy happens, the one that gets it is going to go through the roof, and the ones that are behind are going to be reevaluated."

1 big thing: Fired up over fusion energy

Illustration of an atom with a coin as the nucleus. 

Rivian hit pause this morning on its plans to build electric commercial vans with Mercedes Benz in Europe, Alan writes.

Why it's the BFD: Rivian is struggling mightily to hit production targets for its debut pickup truck and SUV, both of which are consumer vehicles. 

The decision to nix the partnership with Mercedes reflects just how much Rivian will need to sacrifice to meet those goals as it struggles to keep investors happy.

What's happening: Rivian said it will no longer pursue the MOU it signed in September to jointly build electric vans with Mercedes.

Mercedes indicated it would not challenge the decision. It announced plans to go it alone in building a $1 billion electric van factory in Poland that the two companies had planned.

Rivian is still manufacturing vans stateside for Amazon.

Zoom in: Rivian's stock price, already anemic, stumbled further on the news.

It was trading below $27 this morning, a fraction of the $129.95 peak it'd reached in November 2021.

State of play: Rivian has been beset by manufacturing woes. It will likely miss its manufacturing goal of 25,500 vehicles for 2022, Megan reported last month.

The company said it would need to churn out 850 vehicles a week to hit that mark — a pace that the company hadn't yet come close to achieving. 

Meanwhile: Charles Mwangi, former head of manufacturing at Rivian and manufacturing engineer at Tesla, abruptly left Rivian this spring.

Of note: Rivian loses tens of thousands of dollars on every car it builds, Reuters revealed last month.

The automaker expects its losses this year to reach about $5.4 billion.

Be smart: Building cars is hard. Both new and legacy automakers have encountered hurdles in ramping up their production of electric vehicles.

Lucid, for example, also loses huge sums of money with each car it builds.

Meanwhile, Ford and GM are among the automakers that have had to issue recalls for their new EVs. 

👀 What we're watching: Whether the move with Mercedes correlates with an acceleration in production by Rivian and, beyond the initial stock market reaction, whether the decision at all mollifies investors.

2. The BFD: Rivian says "nein, danke" to Mercedes

Animated illustration of the EU symbol gradually going dark.

The topic of ESG is polarizing. The business of ESG is attractive. Two deals announced on Monday show that demand for consulting around this space remains strong, no matter your political leanings, Axios' Mike Flaherty reports.

Why it matters: ESG consolidation shows that companies are seeking support in this area and that they’re willing to pay for it.

Details: TradeSun has acquired data company Coriolis Technologies to speed up its ESG compliance business.

Of note: Also this morning, Montrose Environmental Group said it acquired Huco Consulting, which specializes in ESG and health and safety implementation.

What we’re watching: Which ESG shop is next to get gobbled up.

3. ESG double deals

Illustration of a sheaf of papers with a recycle-sign shaped paper clip

⛏️ An exclusive on Biden's mining push: The Biden administration is looking at funding roughly a dozen mineral projects overseas in a bid for more resources used in lower-carbon tech, Axios' Jael Holzman reports.

The money may be distributed through the Mineral Security Partnership, via the the Export-Import Bank and the Development Finance Corporation.

The partnership is talking with multiple American carmakers and at least two U.S. lithium mining firms, Albemarle and Piedmont Lithium. 

🔮 The future of climate tech: Our colleagues pulled out their crystal balls for the final installment of the "Climate Truths" series. You, too, can peer at what may be ahead.

4. Temperature check

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

• Equinom, an Israel-based seed breeding company, raised $35m led by Synthesis Capital. New investors Praesidium, Bunge Ventures, BayWa, and CPT Capital, as well as existing investors Fortissimo and Phoenix, participated. https://axios.link/3WbYyLm 

• Arkea Bio, which is developing a vaccine to reduce methane emissions from ruminant livestock like cows, sheep and goats, closed a $12m seed round led by Breakthrough Energy Ventures. https://axios.link/3URenpZ

• Sondors, a Malibu-based e-bike maker, is planning a $23m IPO. https://axios.link/3Ho3E38

As Axios' Dan Primack writes in Pro Rata, it's expected to be the biggest offering of the week, reflecting a moribund IPO market in the U.S.

• Luminace, a New York-based solar developer and operator, entered an agreement with EDF Renewables North America, the San Diego-based independent power producer and developer, to acquire three community solar projects in Maine totaling 21.6 MW. https://axios.link/3hcbEK0 

• BHP, the Australian mining giant, is taking an equity stake in French startup I-Rox, which uses "high-intensity bursts of energy delivered using pulsed-power technology" to shatter mineral ores, per Axios' Ben Geman. https://axios.link/3PjOs92

• NV Energy, the Las Vegas-based electric utility, selected Energy Vault Holdings, the Westlake, Calif.-based energy storage developer, to build a two-hour, grid-tied, 220 MW/440 MWh battery energy storage system near Las Vegas. https://axios.link/3Hr1a3R

• Element Resources, a Houston-based hydrogen producer, entered a long-term site lease agreement in Lancaster, Calif., to build, own and operate a green hydrogen production facility. https://axios.link/3hgazRl 

• Sabanci Renewables, a subsidiary of Turkey-based Sabanci Holding, selected Bechtel to build its first utility-scale solar project in the U.S., a 272 MWdc facility in Fort Bend County, Texas. Sabanci Renewables will own and operate the facility. https://axios.link/3W967m1 

• Vast Solar, an Australia-based developer of concentrated solar thermal power technology, signed an LOI with Natron Energy, a Santa Clara, Calif-based battery manufacturer, to buy up to 13,500 units of Natron sodium-ion batteries for a solar project in Mount Isa, Australia. https://axios.link/3HpN5DW 

• Eve Air Mobility, a Melbourne, Fla.-based eVTOL developer, signed an LOI with FlyBis Aviation, a Brazil-based eVTOL startup, to collaborate on eVTOL operations in South America. FlyBis also agreed to buy up to 40 Eve aircraft. https://axios.link/3hjIXL6 

• Xiamen Hithium Energy Storage Technology, a China-based developer of lithium-ion and lithium iron phosphate batteries, and the Sun Valley HK Group, an energy project developer, signed an MOU to collaborate on developing energy storage projects in Australia. https://axios.link/3FKsUPW 

• Piaggio, the Italy-based automotive manufacturer, and Foton Motor Group, a China-based commercial vehicle manufacturer, signed a preliminary agreement to develop electric four-wheel light commercial vehicles. https://axios.link/3FmAVJc 

• Hyundai Motor Group signed an agreement with Enginius, a Europe-based electric truck manufacturer, to supply hydrogen fuel cells for Enginius-made garbage trucks. https://axios.link/3uFHr96 

• The New York State Energy Research and Development Authority selected E Source, a Boulder, Colo.-based data provider for the utility sector, to develop an integrated data repository for data for electric, gas and steam utilities. https://axios.link/3BsBJLA 

• Cummins will supply a 35 MW proton exchange membrane electrolyzer system for Linde’s new hydrogen production plant in Niagara Falls, N.Y. https://axios.link/3HxktZp 

• Matternet, a Mountain View, Calif.-based electric drone delivery developer, began testing a 5 km route over Zurich to deliver medical samples between two hospitals. https://axios.link/3uJesRH 

• CEP Renewables, a Red Bank, N.J.-based developer, and CS Energy, an Edison, N.J.-based EPC, started construction on two 5 MW solar projects on the Big Hill Landfill in Southampton, N.J. https://axios.link/3WeT2b7

• Lightbridge, a Reston, Va.-based nuclear fuel developer, entered agreements with Idaho National Laboratory and the U.S. Department of Energy for nuclear fuel research, testing and development. https://axios.link/3FifUQ5

• South Star Battery Metals, a Vancouver-based mining company, completed the first phase of drilling and metallurgical testing at its Ceylon Project in Coosa County, Ala. https://axios.link/3UMkMT7 

• Clevon, an Estonia-based developer of autonomous electric delivery vehicles, said it completed its first U.S. autonomous delivery in Fort Worth, Texas. https://axios.link/3UK7bMh 

• Duke Energy said it restored power to all customers affected by the apparent attack on the company’s electrical substation in North Carolina. https://axios.link/3FIVr8d 

5. Hot deals

• NuScale Power, the Portland, Ore.-based SMR developer, named VP Karin Feldman as interim COO and chief nuclear officer effective Jan. 6. Feldman succeeds Dale Atkinson, who is retiring. https://axios.link/3FLgasa 

• NuScale also appointed Jin Chung, a professor in the department of nuclear engineering at Kyung Hee University in South Korea, and Shinji Fujino, senior adviser at Unison Capital, to its board of directors. https://axios.link/3ButcYt 

• Terex, a Norwalk, Conn.-based manufacturer of aerial work platforms, promoted VP Stacey Babson Kaplan to SVP, chief sustainability and compliance officer. https://axios.link/3UQuZxK 

• Ascent Solar Technologies, a Thorton, Colo.-based manufacturer of thin-film solar PV tech, hired Paul Warley Jr. as CFO. Warley was previously president of Warley & Company. https://axios.link/3FJnm88 

• SeekOps, an Austin, Texas-based manufacturer of drones and sensors for the energy industry, added David Cox to its advisory board. Cox is a founding partner of the Coalition for Renewable Natural Gas. ​​https://axios.link/3hcTRCt 

• Eversource Energy, the Springfield, Mass.-based utility, announced the election of Loretta Keane to its board of trustees effective Jan. 1. Keane is CFO of Arcadia Solutions, a Boston-based health-care data provider. https://axios.link/3YiEEAc 

• Schneider Electric appointed VP Robert Cain as chief information officer for North America. https://axios.link/3YhlhaU 

• Delek, a Brentwood, Tenn.-based oil and gas business that’s expanded into renewable fuels, hired Rosy Zuklic as VP of investor relations and market intelligence. https://axios.link/3YgHju9 

• Enfinity Global, a Miami-based solar developer and operator, hired Julio Fournier Fisas as chief growth officer. He was previously global VP and general manager for EMEA at Canadian Solar. https://axios.link/3iOBpAd 

6. It's personnel

Data: Deloitte survey; Chart: Rahul Mukherjee/Axios

We wrote Thursday about the bottlenecks that will challenge energy investment in 2023. A big one: manufacturing constraints. 

7. Chart o' the day

Welcome to Monday! It's holiday-party season, so start hydrating now. 

Grab that water and let's dive into the deals.

☃️ It snowed last night in the Boston area. Alan was not prepared. (Nor, it seems, was Delta Airlines.)

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

December 12, 2022

1 big thing: Fired up over fusion energy