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BFD Expert Voices - Climate Deals

BFD Expert Voices

Hydrogen needs to be part of the energy mix, says Nicole LeBlanc, a partner with Toyota's growth fund Woven Capital, writes Katie.

Why it matters: Green hydrogen is attracting major government and investor support, and Toyota is investing significantly in developing clean hydrogen tech.

Tokyo-based Woven Capital has deployed nearly half of its first $800 million fund with nine investments including backing maritime hydrogen company Corvus Energy, electric wheelchair company Whill, and autonomous delivery robot company Nuro. It's also invested in other funds.

The firm makes Series B and up investments. Toyota Ventures backs earlier-stage startups for Toyota.

LeBlanc joined Woven Capital a year and a half ago and previously was a partner with urban tech VC firm 2150 and an investor with Sidewalk Labs.

This interview was lightly edited for clarity.

What in your view was the big news in climate-tech investing this year?

"The hydrogen roller coaster. It needs to be part of the energy mix, and I've met so many interesting startups that can drive progress, yet it still faces significant infrastructure challenges."

"Corporates are stepping up and the machine is moving. Large companies are at last meaningfully changing processes and adopting new technologies to hit net-zero targets well before 2050."

"The talent shift. So many young, smart people are moving into climate tech, some giving up meaningful financial opportunities. It will have a huge impact over the next 10 years."

One tip for climate-tech investors or founders:

"Don't just focus on the technology. We need digital, physical and policy innovation to accelerate the impact and returns that come from climate tech."

"Developing (film) photos in a Kodak camera shop, where I learned about the importance of adopting new tech."

"Investing in over 200 founders so far in my career, with 25% being trailblazing women."

🤦🏻‍♂️ Facepalm investment or investment you wish you made:

"Overinvested in Cleantech 1.0 because I loved the tech — but the business models were unproven."

💡 In three-ish words, the change you would make to climate-tech investing:

"Mindset shift: Impact can = financial returns"

1 big thing: Hydrogen booster

Photo illustration of Nicole LeBlanc surrounded by abstract shapes.

Photo illustration: Gabriella Turrisi/Axios. Photo: Courtesy of Woven Capital

Tesla's vehicle sales declined as the automaker grapples with logistical challenges and the industry faces lower-than-expected growth in EV sales.

Why it's the BFD: As the world's largest maker of premium EVs, Tesla's performance is a close EV market barometer, our Axios colleague Nathan Bomey writes.

By the numbers: The automaker delivered 386,810 vehicles worldwide in the first quarter, down 8.5% from the same period a year earlier.

Deliveries are a close approximation of sales.

The company also reported an unusually large gap between production and deliveries.

Tesla said it produced 433,371 units, down about 7,000 from a year earlier.

The impact: Disappointed investors drove down Tesla's stock by 7.4% in pre-market trading.

2. The BFD: Tesla tumbles

A Tesla Model 3 on display during the Everything Electric London 2024 last month. Photo: John Keeble/Getty Images

🏎️ The need for speed: The 2022 climate law advanced by Democrats will be hobbled unless policymakers greatly speed up permitting for low-carbon energy projects, per a new report from the International Monetary Fund.

Should permitting delays persist until 2030, "the IRA-induced emission decline would be smaller by about a third." By contrast, without such delays, renewables' share of the power mix rises almost 20 percentage points by 2030. Ben Geman has more in Generate.

🌊 1/3 of the way there: The Interior Department this morning approved New England Wind, a planned 2.6 GW offshore wind project about 20 nautical miles south of Martha's Vineyard.

The project is the country's eighth commercial offshore wind project and puts the U.S. about a third of the way toward achieving the Biden administration's goal of approving 30 GW of offshore wind by 2030, per Reuters.

💧 Energy-water nexus, part two: "In 2023, the energy used by desalination services in the Middle East was equivalent to almost half of all energy consumed by the region's residential sector," per the International Energy Agency.

"Global energy demand for desalination has nearly doubled since 2010, and current trends point to another doubling to 2030," IEA finds. The energy sector meanwhile accounts for 10% of global freshwater use. Ben has the details.

🎬 Tesla ups its ad spend: The electric automaker, long averse to spending on advertising, last year spent approximately $6.4 million on paid media, per WSJ, and recently published video ads on Facebook, Instagram, and CEO Elon Musk's X.

That's a fraction of the billions of dollars that automakers like GM spend on advertising — but far more than the estimated $175,000 that Tesla put toward ads in 2022. It comes as the pool of would-be Tesla buyers has reportedly shrunk.

3. Temperature check

Illustration of three emojis: a thermometer, a hot face, and a cold face.

• Tiger Global raised $2.2b for its 16th private markets fund, short of its $6b target, per Bloomberg. https://axios.link/43Gn6kG

• Onego Bio, a Finnish producer of egg protein from precision fermentation, raised a $40m Series A led by NordicNinja, joined by Tesi, EIT Food, and insiders Agronomics, Maki.vc, Holdix and Turret, and certain strategic partners. https://axios.link/4alhfUC

• BioConsortia, a Davis, Calif.-based agtech developing microbial products to improve crop yields while reducing ecological impacts, closed an internal $15m round led by Otter Capital. https://axios.link/4agvnOV

• Sparxell, a UK-based developer of sustainable plant-based pigments, raised $3.2m from Circular Innovation Fund, L'Oréal, Future Communities Capital, PDS Ventures, Katapult, Joyance Partners and Snøcap VC. https://axios.link/3VIAZwJ

• Raven SR, a fuel cell developer based in Pinedale, Wyo., raised $15m led by Ascent Funds, joined by Chevron New Energies, Itochu, and Stellar J. https://axios.link/3xuHNE0

• Warren Equity Partners, a Jacksonville Beach, Fla.-based infrastructure products and services investor, raised $550m+ for its new fund targeting middle market companies. https://axios.link/3J8EMMd

• Dutch pension funds PMT and PME announced plans to jointly invest €100m in Dutch deep-tech startups. https://axios.link/3vDcAyc

• Energy and power company GE Vernova completed its spin-off from GE and began trading on the NYSE. https://axios.link/43GsTXs

• Modern Milkman, a UK-based sustainable grocery delivery service that's raised ~£50m from Insight Partners, Praetura Ventures, ETF Partners and Avery Dennison, acquired a similar U.S. company of the same name, based in Ellington, Conn. https://axios.link/3PNAOfT

• Aspen Power, an NYC-based renewables developer and operator, acquired eight ground-mounted solar projects in Pennsylvania and New York totaling 41 MW. https://axios.link/43H8Jws

• Phillips 66 announced that its SF refinery is now processing only renewable feedstocks and producing ~30,000 barrels per day of renewable diesel. https://axios.link/3PMlaRM

• Electra Battery Materials, the Toronto-based battery materials processor, signed a binding LOI with Luxembourg-based Eurasian Resources Group to supply cobalt hydroxide from the Democratic Republic of Congo to Electra's refinery outside Toronto. https://axios.link/3xm8lYj

• MP Materials, a rare earth mining and manufacturing company based in Las Vegas, has received a $58.5m award from the Department of Energy through its tax credit program to build a rare earth magnet production facility in Fort Worth, Texas. https://axios.link/3U3fUMt

4. Hot deals

• Ron Timperio was named COO and EVP, global operations services, at Westinghouse. Timperio was previously COO at PDC Machines. https://axios.link/3xrD5XG

• Adam Silverstein was appointed an EVP at Westinghouse, overseeing its nuclear safety, industrial safety and quality assurance programs. Silverstein was previously VP at CommScope. https://axios.link/3xrD5XG

• Mark Matthews was promoted to president, specialty global, at EnerSys, a Reading, Pa.-based energy systems manufacturer. Matthews was previously SVP, specialty global. https://axios.link/3VIBNBL

5. It's personnel

🫶🏻 Alan and Katie are headed to the Axios Pro team retreat in D.C., which means the newsletter might be a touch lighter than usual the next couple of days. 

Last week's trivia answer: Apple's first solar project to power a data center was built in Maiden, North Carolina, and construction started on it in 2011.

🫡 Katie is flying to Washington, D.C., today for Axios team building IRL.

🕵️ Alan can't get over this story that an alleged Russian spy was the chef at D.C. club Mari Vanna.

Thank you to Michael Flaherty and Chris Speckhard for today's edits.

And thank you for reading Climate Deals! Please share with your friends, family and D.C. locals.

April 02, 2024

1 big thing: Hydrogen booster