All Access

Climate Deals

Standard

Climate Deals Thought Bubble

Thought Bubble

Climate Deals Alerts

Alert

mustard

BFD Expert Voices - Climate Deals

BFD Expert Voices

topics

politics-policy

epstein-files

donald-trump

2026-midterm-elections

immigration

behind-the-curtain

race-and-equity

technology

privacy-tech-regulation

automation-and-ai

tiktok-news

big-tech

social-media

cybersecurity

economy

social-security

inflation

tariffs

federal-reserve

jobs

transportation

business

stock-market-news

retail-news

crypto

media

elon-musk

dealmaking

health

rfk-jr

drug-prices

axios-explains-abortion

public-health

world

israel

axios-explains-ukraine

iran

russia

china

energy-climate

nuclear-energy

climate-energy-policy

climate-change

extreme-weather

alternative-energy

electric-vehicles

science

emerging-tech

biomedicine

newsletters

pittsburgh

atlanta

san-diego

charlotte

boulder

washington-dc

kansas-city

dallas

denver

detroit

des-moines

austin

boston

chicago

cleveland

columbus

houston

indianapolis

miami

nashville

new-orleans

nw-arkansas

philadelphia

phoenix

portland

richmond

salt-lake-city

san-antonio

san-francisco

seattle

tampa-bay

twin-cities

raleigh

huntsville

colorado-springs

axios-local

axios-pro

axios-live

the-axios-show

"Parametric insurance" — two words lethal to just about any cocktail party conversation. But expect to hear more about this concept as climate change impacts worsen, Alan writes. 

Why it matters: One major impact — rising waters and heavier precipitation in some regions — is already being felt and has spawned a niche insurance area that entrepreneurs and investors are building. 

Driving the news: Floodbase, the Brooklyn company formerly known as Cloud to Street, this morning announced it raised a $12 million Series A for its flood monitoring service. 

There are plenty of wind gauges across the country, but far fewer flood monitoring systems. 

Floodbase contends that its combination of satellite data and ground-based sensors can enable insurance companies to begin introducing parametric flood policies. 

Catch up fast: Parametric policies kick in when an event crosses a certain threshold — when, say, wind gusts reach a certain intensity — and pays out according to the magnitude of the weather event rather than the damages.

Details: Lowercarbon Capital led the round, which closed in September.

Collaborative Fund, Floating Point and Vidavo participated. Floodbase says it hasn't taken on any debt.

Its customers include the UN, NASA, USAID, the engineering giant Jacobs, and what Floodbase says are "some of the world's largest re-insurers."

State of play: A handful of startups are pursuing parametric plays.

Raincoat, based in San Juan, Puerto Rico, makes modeling software for parametric insurance products. It raised $4.5 million in a seed round last August.

Another company, Sensible, has introduced what it calls "weather insurance," effectively coverage for when a severe weather event disrupts anything from a vacation to a trip to the zoo. 

Plus: FloodFlash, based in London, this fall became the first company to issue mass-market parametric flood insurance.

Context: Climate change has made historical weather data more unreliable. Meanwhile, the cost and capability of satellites, remote sensors and data analysis has vastly improved. 

Be smart: Flooding is the most common weather hazard globally — but among the least covered by insurance. 

1 big thing: After the flood

Illustration of measuring tape poking through a horizon of water. 

Green private equity firm Vision Ridge Partners has raised a $700 million fund, Alan reports. 

Why it's the BFD: That total is a chunky pile of money for the climate-related areas that Vision Ridge invests into, and it comes on top of the $1.25 billion that the firm raised in 2021. 

Of note: Vision Ridge is focused on investing across the energy, transportation and agriculture sectors.

Details: Vision Ridge contributed to the $1 billion raised last fall by TeraWatt Infrastructure, an SF-based company aiming to build electric charging infrastructure for commercial fleets.

The firm pulled in Jules Kortenhorst, then the CEO of influential climate advocacy and research group RMI, to join as a partner in October.

Zoom in: Vision Ridge's investments include Earthrise, an Arlington, Va.-based energy developer; Vision RNG, a Canonsburg, Pa.-based landfill-to-gas infrastructure developer; and Fjord1 a Norwegian maritime transportation services provider.

What they're saying: "The problem of funding the energy transition is not a lack of financial capacity but that too much is still pointed at the old energy system," Vision Ridge founder Reuben Munger told Megan in October.

2. The BFD: Vision Ridge rakes in another $700M

Illustration of the earth on a large pile of money

As CEO of renewable energy company Zola Electric, Bill Lenihan is tasked with making sure the company doesn't go the way of Cleantech 1.0's casualties. To do that, he is adding executives of the biggest tech companies to his board of directors (see Personnel section below).

Why they matter: Climate tech companies like Zola Electric have a lot to learn from seasoned tech industry executives that have lived through booms, busts and regulatory pressures.

This interview has been lightly edited for length and clarity.

What, in your view, has been the big story in clean energy/climate tech this week?

I just got back from speaking at the World Future Energy Summit, part of Abu Dhabi Sustainability Week, and was impressed by the conversations I had with public and private sector energy players and industry investors from across the world on the huge efforts being made to drive forward the energy transition.

We see the importance of catalyzing the energy transition in emerging markets where millions rely on diesel generators and fossil fuel to power homes, schools, hospitals. Against a backdrop of supply scarcity and the world’s highest energy costs, people and businesses are looking to new technologies to provide innovative solutions to energy access and energy equality challenges like never before.

The energy challenges found in emerging markets are nothing new. The difference today is recent events mean the energy crisis is beginning to hit home for Europe, the U.S. and other countries as well. This is shining a brighter spotlight on emerging markets, especially with regards to energy technology solutions being built out in these markets, as they are starting to take on a much stronger relevance to developed markets’ energy challenges.

By contrast, what is not receiving the attention you feel it deserves?

While the transition to sustainable or renewable energy sources is clearly crucial, the significant role technology plays in the transition to net zero is often overlooked. The technology and operations have already been developed to transition emerging markets and circumvent the fossil fuel apparatus in the hands of select volatile nations.

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

3. Expert voices: Zola Electric CEO Bill Lenihan

photo illustration of ZOLA CEO Bill Lenihan next to a solar panel and surrounded by blue circles 

Photo illustration: Tiffany Herring/Axios. Photo: Courtesy of Zola

📈 Trillion-dollar '22: Spending on the global transition to carbon-free forms of energy totaled at least $1.1 trillion last year — the first time it’s topped the 10-figure mark, Axios' Andrew Freedman writes in Generate.

Renewable energy and electrified transportation drew the biggest investment. Carbon capture and hydrogen also grew significantly.

China was by far the biggest spender at about $546 billion — almost half of all global energy transition investment. The U.S. ranks a distant second.

Inflation contributed to the record year, but not as much as you might expect.

👑 Toyota anointing new CEO: The automaker announced that CEO Akio Toyoda is stepping down to become chairman in April.

Taking his place is chief branding officer Koji Sato, who’s led Lexus since 2020.

Toyoda has recently voiced open skepticism about EVs. He held the top spot for 13 years, leading the company to become the top-selling automaker globally in 2020 and 2021.

🏛️ Banging down Gary Gensler’s door: Goldman Sachs, the U.S. Chamber of Commerce and the liberal Americans for Financial Reform are among the latest to meet with the SEC chairman's office, Axios' Ben Geman reports in Generate.

The filings are yet more evidence that the SEC's brewing emissions disclosure rules are a big deal among industry heavyweights wary of prescriptive mandates and NGOs that want granular requirements.

⛏️ Miners are coming for our graphite: We’ve heard plenty about lithium, nickel and cobalt for battery materials. Now comes graphite. 

“Some of the world’s biggest auto and battery makers and the U.S. government are racing to secure graphite supplies amid looming signs of shortages of the mineral suitable for batteries,” the WSJ reports.

“The increase in demand is running headlong into a supply shortage.” Hang on to those Ticonderoga No. 2's. 

🚗 VinFast hits America’s shores: "Launching a car company is difficult — just ask VinFast, the ambitious Vietnamese electric vehicle startup struggling to gain traction in the United States amid early missteps and an explosive price war."

That’s the lede from Axios' Joann Muller, who takes a deep dive into the electric automaker’s American ambitions.

☀️ Microsoft gets into solar development: Qcells, which makes panels and other equipment, will work with Microsoft to develop utility-scale solar projects in the U.S., Ben wrote yesterday.

They'll also provide equipment, engineering and construction services to projects Microsoft is backing with other developers via power purchase agreements.

🥗 Climatarians, meet the climavores: A slew of new labels — from "climavore" to "reducetarian" — reflects the trend of people eating with sustainability in mind to reduce their climate "foodprint.” 

They’re all pretty insufferable. “Reducetarians, “sustainatarians,” “regenivores.” Axios' Jennifer A. Kingson has the rundown, if you can bear it.

4. 🌡️ Temperature check

Illustration of an earth in space covered in red and blue meteorological color lines.

• Tado, a Munich-based smart thermostat maker, raised €43m from Trill Impact Ventures, Bayern Kapital, Kiko Ventures and Swisscanto. https://axios.link/3j50VBX

Tado last year agreed to go public via SPAC at an implied €450m valuation, but the merger was later terminated. 

• Ecozen, an Indian developer of solar cold storage solutions, raised $25m in Series C equity and debt funding. Nuveen and Dare Ventures co-led the equity tranche, and were joined by India EXIM Bank, Caspian and Hivos-Triodos Fonds. The round provided partial liquidity for Omnivore and IFA. https://axios.link/406xHmH

​​• Meati Foods, a Boulder, Colo.-based developer of mushroom proteins, raised $22m in Series C extension funding. Revolution Growth led, and was joined by Rockefeller Capital. https://axios.link/3Ha8qzA

💩Wasted, a Burlington, Vt.-based startup converting human waste from port-a-potties into fertilizer, raised $7.5m. Collaborative Fund and Divergent Capital co-led, and were joined by Day One Ventures, Third Sphere, Pure Ventures, Riverstyx Foundation, Gratitude Railroad and Susquehanna Foundation. https://axios.link/3j8GjIX

• Kanpla, a Danish startup seeking to reduce food waste from cafeterias, raised €2.2m in seed funding led by HenQ. https://axios.link/3ZX7h6S 

• Regent, a North Kingstown, R.I.-based developer of electric seaplanes, received an undisclosed investment from the Japan Airlines Innovation Fund, the venture arm of Japan Airlines. The investment brings Regent’s total raise to $45m. https://axios.link/3HySTun 

• Redivivus, a Colorado Springs-based lithium-ion battery recycling services provider, received an undisclosed investment from Eneos Innovation Partners. The investment marked the final tranche of Redivivus’ $1m+ pre-seed fundraising round. https://axios.link/3DjbnwB 

• TKB Critical Technologies 1, an El Segundo, Calif.-based blank-check company, retained $53m in its trust account following the Class A redemption deadline for its announced SPAC merger with Wejo Group, a U.K.-based vehicle software data provider. https://axios.link/3JiGvjC 

• Ideanomics, a N.Y.-based fleet electrification services provider, completed its acquisition of Via Motors, an Orem, Utah-based electric commercial vehicle manufacturer.  ​​https://axios.link/407Mg9y

• Electra.aero, a Falls Church, Va.-based developer of electric short-takeoff-and-landing aircraft, is receiving a U.S. Air Force strategic funding increase for up to $85m in private investment, government funding and matching Small Business Innovation Research funding to develop a full-scale pre-production prototype. https://axios.link/406Eo8A 

• AlphaStruxure, a Boston-based energy infrastructure developer, entered an agreement to design, build and operate a 11.34 MW microgrid at New York’s JFK Airport. https://axios.link/3kOZ4BS 

The system will include a 7.66 MW solar PV system comprising 13,000 solar panels, which the company says will be the largest rooftop solar array in NYC.

• Form Energy, the Boston-based long-duration storage developer, entered into definitive agreements with Xcel Energy to deploy two 10 MW/1,000 MWh iron-air battery systems at two coal plants that Xcel is retiring in Minnesota and Colorado. https://axios.link/3kN3ycd 

• Linea Energy, an SF-based independent power producer, received an undisclosed capital commitment from EnCap Investments, the Houston-based investment firm. https://axios.link/3Jexfgb 

• Lostock Sustainable Energy Plant, a joint venture between Copenhagen Infrastructure Partners and FCC Environment, selected Black & Veatch, the Overland Park, Kan.-based engineering firm, to oversee construction of its £480m waste-to-energy plant in Northwich in the U.K. https://axios.link/3Dhon5N 

• Microvast, a Stafford, Texas-based lithium-ion battery manufacturer, and REE Automotive, an Israeli manufacturer of EV platforms, signed a supply and purchase agreement. https://axios.link/3HaTZLF 

• Duke Energy Sustainable Solutions announced that its 120 MW Jackpot Solar project in Twin Falls County, Idaho, entered commercial operation. The company says it’s the largest solar facility in the state. https://axios.link/3HdTakW 

• TS Conductor, the Huntington Beach, Calif.-based manufacturer of carbon-fiber and aluminum cables for transmission and distribution lines, opened its manufacturing facility in Huntington Beach. https://axios.link/3wAws1L 

Climate Deals wrote about the company’s $100m launch in August.

5. Hot deals

• Zola Electric added former Google chief information officer Ben Fried to its board, the company exclusively tells Megan.

• Divert, a Concord, Mass.-based company working to reduce food waste, appointed Nicholas Bertram to its advisory board. Bertram was previously president of The Giant Company. https://axios.link/3R8uEX6 

• Wolfspeed, the Durham-based silicon carbide provider, appointed Stacy Smith to its board of directors. Smith is the executive chairman of Kioxia, fka Toshiba Memory. https://axios.link/3Y0V6UR 

• Schneider Electric promoted senior sales director Jim Kalogiros to VP, secure power, in Canada. https://axios.link/3Jly9rl 

6. It's personnel

Happy Thursday! We're just about through another week, so let's get to it.

✈️ Megan is off to Portland, Oregon, for a weekend full of hikes, craft beer and probably rain.

🍄 Alan last night watched the second episode of "The Last of Us." He's hooked.

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 board members.

January 26, 2023

1 big thing: After the flood