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BFD Expert Voices - Climate Deals

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Investors are eagerly backing green ammonia startups, seeing the promises of the hydrogen economy and big global markets, Katie writes.

Why it matters: Ammonia, one of the world's most produced chemicals, could be a key fuel source and carrier for hydrogen. 

Driving the news: Green ammonia startup Ammobia has closed a $4.2 million seed round to build a demonstration project at its headquarters in San Francisco, the company tells Axios.

Ammobia's round was led by Starlight Ventures and included Collaborative Fund, Chevron Technology Ventures, Plug & Play and others.

Karen Baert, co-founder and CEO, says the company plans to raise a Series A round next year to build a commercial pilot plant.

Baert and co-founder and CTO Tristan Gilbert met while both were graduate students at Stanford.

Catch up quick: Most ammonia is made using the century-old Haber-Bosch process, which combines nitrogen from the air with hydrogen under high pressure and temperature.

This process is done at a very large scale and mostly uses natural gas and coal, making it carbon intensive.

How it works: Ammobia is building a more efficient and cleaner system that produces ammonia using electricity, at a lower heat, with lower pressure and with lower capex compared with the traditional process.

The design will make green ammonia production more cost-effective and flexible, enabling it to run off of clean energy, says Baert. "We basically do everything in one single reactor."

Ammobia dubs its process "Haber-Bosch 2.0."

The big picture: Energy giants and investors are buzzing over the potential of green ammonia.

Because ammonia contains hydrogen atoms, it can be a carrier for hydrogen and enable the storing of hydrogen for transporting it. It also has its own promising properties as a net-zero fuel.

An increasing number of shipping giants like Maersk are buying ammonia-powered carriers. 

Some countries like Japan are using ammonia to co-combust with coal, lowering the carbon intensity.

State of play: Ammobia is just one startup tackling the sector.

Amogy, a Brooklyn-based ammonia startup announced an agreement this week with Japanese giant Itochu to use Amogy's tech on shipping vessels.

Israeli startup NitroFix and Icelandic startup Atmonia are also building decentralized green ammonia generators.

💬 Katie's thought bubble: Reinventing such an established technology as the Haber-Bosch process is a daunting task.

What's next: Ammobia will be using its upcoming demonstration project to try to derisk the technology and move from the lab phase into the engineering phase.

1 big thing: The promise of green ammonia

Illustration of a large gas tank and ammonia molecules made from quarters.

EV Realty, a commercial vehicle charging provider, is forming a $200 million joint venture with private equity firm GreenPoint Partners to develop charging hubs for medium- and heavy-duty vehicles, Alan reports.

Why it's the BFD: They join a growing number of firms pouring cash into topping up electric vans and trucks.

The big picture: The joint venture's "Powered Properties" hubs will have 50-100 chargers. The first will be built in California.

GreenPoint is putting up the bulk of the $200 million. The NYC-based firm is positioning the charging sites as "an emerging, dynamic asset class for real estate investors," per a press release.

Minority investor EV Realty, based in San Francisco, will own and operate the hubs.

Between the lines: Last fall, California enacted an ambitious Advanced Clean Fleets initiative requiring haulers to buy only zero-emissions trucks starting Jan. 1.

The measure has spurred significant investment in truck-charging infrastructure.

Greenlane, a $675 million joint venture between BlackRock, NextEra Energy Resources, and Daimler Truck North America, last week said it will build its first truck charging sites in Southern California.

Meanwhile truck-charging unicorn TeraWatt Infrastructure last fall broke ground on a site outside Long Beach; Forum Mobility has a $400 million joint venture focused on trucks serving California seaports; and Schneider National unveiled a truck charging station last year in South El Monte.

What's next: EV Realty and GreenPoint Partners plan to bring the first site online in Q1 2025, with more to follow later in the year.

2. The BFD: Truck-charging money load 

Illustration of a semi truck with the trailer made from a power strip.

Torus, a manufacturer of energy storage and energy management devices, raised $67 million in equity and debt, the company tells Alan.

Why it matters: The company plans to use the capital to pursue an unconventional battery for commercial and industrial customers.

The big picture: Origin Ventures led the round, which closed on March 25.

About half the round is made up of convertible notes; the rest is split between equity and debt, a Torus spokesperson tells Axios.

Epic Ventures, Cumming Capital, the Larry H. Miller Company, Zions Bank, Pelion and Iconiq participated.

Origin Ventures Managing Director Brent Hill and former Vivint Solar CEO David Bywater joined the company's three-member board.

Torus CEO Nate Walkingshaw holds the third seat.

State of play: Torus in the past year has installed about 2 MWh of home battery systems, mostly for residential customers in Utah.

The company, based in South Salt Lake, Utah, is now expanding to the commercial and utility sectors and introducing virtual power plant and energy management products.

The intrigue: The company is also building a battery that stores energy using a fast-spinning flywheel, a departure from conventional chemical-based batteries such as lithium-ion.

How it works: Electricity from solar panels or wind turbines powers a motor that spins a heavy metal disc. The disc then dispatches electricity over time as it gradually slows.

The approach works well for high-demand applications or when paired with traditional chemical batteries.

What's next: Torus is manufacturing its flywheel systems, the spokesperson says. The company plans to deploy the tech in the next six to 12 months.

3. Spin cycle exclusive

A photo of two men kneeling in front of a white rectangular box, installed on pavement next to a white cylindrical container, which hold Torus' flywheel battery.

Workers inspect a Torus flywheel battery system. A spinning metal disk is contained in the white cylinder at left. Photo: Courtesy of Torus

🛑 U.S. blocks Basel climate play: U.S. regulators are pushing back on the efforts by European central bankers to convince the global Basel Committee on Banking Supervision to require lenders to disclose climate strategies around green commitments, reports Bloomberg.

The U.S. says the Basel Committee would be overstepping.

👨‍🔬 Chatting with Bill Nye: The Science Guy talked with our Axios colleague Nicole Cobler about next week's solar eclipse.

Use all your senses, not just your eyes, Nye says: "When it really goes completely dark, it's just amazing. The birds chirp; the crickets cricket. There's usually a bit of a breeze because the ground gets cool and then that cold air is squeezing the warm air up and makes a little bit of a breeze."

⚛️ Nuclear energy and climate impacts: A new report from a top government watchdog finds that the U.S. Nuclear Regulatory Commission needs to more fully consider climate change's possible impacts on nuclear power plants when making licensing and other decisions, Andrew Freedman writes in Generate.

Many of the country's fleet of 94 operating commercial reactors were designed for a climate that no longer exists. This sounds familiar!

🔋 $78 million for aqueous battery: Battery maker Alsym Energy this morning announced it's raised a Series C to produce non-flammable batteries that replace conventional lithium-ion with a water-based electrolyte. 

CEO Mukesh Chatter didn't share much about the battery's chemistry but noted to TechCrunch that one of its electrodes is made from manganese oxide.

Indian industrial giant Tata and venture firm General Catalyst led the round, joined by Drads Capital, Thomvest and Thrive Capital. 

4. Temperature check

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

• Oros Labs, a Portland, Ore.-based developer of thermal insulation tech for clothing, tents and other textile applications, raised a $22m Series B led by Airbus Ventures, joined by REI Co-op Path Ahead Ventures, Platinum Mile Ventures, Culper Ventures, Crumpton Ventures, and Iron Gate Capital Advisors. https://axios.link/3xpWhFy

• BurnBot, an SF-based developer of wildfire prevention robots, raised a $20m Series A led by ReGen Ventures, joined by Toyota Ventures, AmFam Ventures, Convective Capital, Blue Forest Asset Management, Skip Capital, Overture Ventures, Lowercarbon Capital and Pathbreaker Ventures. https://axios.link/49oINHf

• Iceberg Data Lab, a Paris-based environmental data startup, raised an £8m Series A led by Beringea, joined by MAIF Avenir and AXA Investment Managers. https://axios.link/4aBzWmw

• Polar Night Energy, a Finnish thermal energy storage startup, raised a €7.6m seed round led by Jonathan Oppenheimer, Stephen Industries, Holdix and Turret, joined by PC Rettig & Co. Impact. https://axios.link/3UcF0sp

• Warwick Acoustics, a UK developer of energy-efficient loudspeakers raised £7m led by Mercia Ventures, joined by NFU Mutual, to develop sustainable in-car audio systems. https://axios.link/4ajrQzj

• Alternō, a Singapore-based developer of sand-based battery technology, raised $1.5m led by The Radical Fund and Touchstone Partners. https://axios.link/43IcNws

• Alrik, a Swedish startup developing software to reduce construction emissions, raised a €1m seed round from Pi Labs. https://axios.link/43HYPuG

• Tembo, Dutch utility vehicle electrification subsidiary of UK-based VivoPower, agreed to merge with Cactus Acquisition 1, a SPAC led by Ofer Gonen, at an implied $838m equity value. https://axios.link/3J1YrNV

• Chinese EV maker Zeekr, a division of Volvo parent Geely, restarted stalled plans to raise up to $500m in a New York IPO, per Reuters. https://axios.link/3PMIkrf

• Axon Graphite, a new subsidiary of Australian materials company Lithium Energy, acquired the graphite projects of Novonix, a battery materials company based in Chattanooga, Tenn. Axon Graphite is expected to be listed on the Australian Securities Exchange. https://axios.link/3VEHSzh

• Solar developer Recurrent Energy says it's raised a facility of up to €110 million from a group of banks led by Investec Bank. https://axios.link/3VHb9Jy

• Morgan Stanley Capital Partners acquired Resource Innovations, a Half Moon Bay, Calif.-based energy efficiency services provider, from BV Investment Partners. https://axios.link/3PMBSAI

• Austin-based solar developer Recurrent Energy says it's raised a loan facility of up to €110m from banks led by Investec Bank. https://axios.link/3VHb9Jy

• The Ikea Foundation has agreed to give $100m to a new initiative focused on zero emission commercial vehicles called the Leapfrogging Partnership. https://axios.link/43HwVyI

• French carpooling unicorn Blablacar has secured a €100m revolving credit facility from BNP Paribas, Société Générale, Citi, JP Morgan and HSBC to fund acquisitions. https://axios.link/3vKl7iD

• The U.S. National Highway Traffic Safety Administration has opened a preliminary investigation into Fisker's 2023 Ocean SUV following complaints that the EV's doors sometimes won't open. https://axios.link/4cDSGDH

• NYC is introducing a permitting process for companies to test self-driving vehicles on city streets. The city for now won't allow vehicles without a human driver. https://axios.link/3VKs8uK

• Amsterdam's Schiphol airport is testing self-driving electric buses. https://axios.link/43R7T0f

• Alaska's government is using the Boston Dynamics robot "dog" to scare birds and other animals from the runways at Fairbanks International Airport. https://axios.link/3VD5Zyi

• Chinese flying taxi startup EHang completed a flight test (and landing) in Costa Rica. https://axios.link/3VKt0zw

5. Hot deals

• Lindsey Bleimes was named CTO at MoveEV, Somerville, Mass.-based EV services provider for commercial fleets. Bleimes was previously VP of engineering at NuBank. https://axios.link/4cE5NF5

• Courtney Goldstein was named EVP and chief marketing officer at Vail Resorts. Goldstein was previously SVP of consumer marketing, growth and engagement at Comcast. https://axios.link/3xmlwbG

• Dietmar Siersdorfer was named managing director for Africa at Siemens Energy. Siersdorfer has been at the company since 1987. https://axios.link/3THhq5m

• Edward Middleton and Andy Ballard joined UK-based energy and chemicals consulting firm Etasca as directors. Middleton was previously a partner at KPMG; Ballard was project finance lead at Nexant.

• Peter Schuhmacher, formerly with BASF, was appointed to the board of Austin Elements. https://axios.link/3vtyaVR

• Ellie McDonald and Jeannine Sargent joined G2 Venture Partners as an investor and operating partner, respectively. McDonald was previously with Morgan Stanley Infrastructure Partners; Sargent was president of Flex. https://axios.link/3JamD0x

6. It's personnel

About a two-hour drive from Dublin sits the Ahascragh Distillery, a carbon-neutral whiskey distillery that uses heat pumps from Finnish energy company Oilon. 

Why it matters: The whiskey-making process is energy-intensive, but using heat pumps replaces natural gas, slashing carbon emissions, Katie writes.

7. Photo of the day: A net-zero whiskey distillery

A whiskey distillery in Ireland, near Dublin

The Ahascragh Distillery, in the village of Ahascragh, about a two-hour drive from Dublin. Photo: Courtesy of Ahascragh Distillery

🧭 Geographical awareness: Our entire Pro team is assembled here at the Axios headquarters in Arlington. IRL in VA. 

🤓 Katie is enjoying the East Coast hours for producing a newsletter.

🕵️ What Alan would give for three months to investigate the mess that is the Washington Bridge shutdown.

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 ammonia aficionados.

April 03, 2024

1 big thing: The promise of green ammonia