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BFD Expert Voices - Climate Deals

BFD Expert Voices

Rio Tinto is mining deeper for tech startups, writes Katie.

Why it matters: The move comes as miners seek new and efficient ways to meet demand for a crop of minerals that feed the energy transition. 

Driving the news: Rio Tinto is partnering with VC firm Founders Factory to invest around $10 million into industry startups.

Zoom in: The partnership will focus on early-stage startups that can help mining operations automate, decarbonize, and run more safely and efficiently.

Startups backed by the group will receive cash and go through a 4-month accelerator program, run by Founders Factory.

Catch up quick: Rio Tinto launched a dedicated VC fund in 2021 that backed companies like thermal battery maker Rondo Energy, battery materials company Nano One, and VC firm Evok Innovations.

Zoom out: The mining giant isn't alone in its tech interest. 

Fortescue is also an active investor in startups and was the lead investor in one of Electric Hydrogen's rounds.

The bottom line: Mining is an unavoidably dirty sector and has long been plagued by environmental issues. New technologies could help mining companies explore, mine and process minerals more cleanly.

1 big thing: Digging for tech

Illustration of Benjamin Franklin wearing a miner's helmet with the light on. 

Community solar company Nexamp has raised $520 million, the company tells Axios.

Why it's the BFD: The sector's growth is driven by a boom in low costs, government support, and a surge in electricity demand, writes Katie.

Zoom in: Nexamp said Manulife Investment Management led the round that also included San Francisco-based sustainable infrastructure investor Generate Capital.

Mitsubishi subsidiary Diamond Generating Corporation joined the round and is also Nexamp's largest shareholder.

Nexamp CEO Zaid Ashai said the company, based in Boston and Chicago, would use the funds to grow ownership positions in the community solar projects in its pipeline.

Nexamp, founded in 2007, has a portfolio of 1.5 gigawatts of generating and in-construction solar projects, 80,000 customers and corporate customers including Walmart, T-Mobile and Starbucks.

Catch up quick: Community solar projects enable residents or businesses to subscribe to electricity generated off site, often from ground-mounted solar projects.

Residents who rent or have rooftops that aren't solar-friendly can use the projects to access low-cost solar electricity.

Companies see community solar as a way to meet net-zero goals and also connect with consumers.

Walmart announced earlier this year that it plans to invest in 2 gigawatts of new community solar projects.

The big picture: Community solar is crossing the chasm from early adopters to more mainstream, says Ashai.

The number of community solar projects in the U.S. grew by 3% last year, according to Wood Mackenzie and the Solar Energy Industries Association.

Some community solar projects have faced headwinds in recent years because of interconnection queues.

What's next: Nexamp is investing heavily in Illinois and the Midwest thanks to attractive state policies and access to local domestic solar manufacturers.

2. The BFD: Nexamp's $520M raise

A solar farm built in the middle of a rural area

A community solar farm developed by Nexamp. Image: Courtesy of Nexamp

Climate Deals and Energy Policy are inextricably intertwined, so we reached out to our colleagues Jael Holzman and Nick Sobczyk to catch us up on what to watch in Congress this spring.

What Nick is watching: House Republicans this week are taking the first step towards a vote to repeal the SEC's climate disclosure rules.

They won't get that past President Biden, but it's worth watching how both parties legislate on this because the pendulum could swing drastically for companies that have to comply, depending on how the election goes.

What's on Jael's radar: Whether the IRA stays in place is the talk of the town in D.C. We on the policy end see low odds of full IRA repeal right now.

That's partially because, as we've written, the law took a business-friendly approach to climate action that was all carrot and no stick.

But there are specific programs, like the consumer EV benefit, that are definitely ripe for repeal if Republicans trounce in November.

Need smart, quick intel on energy and climate policy? Check out Energy Policy.

3. What's happening on Energy Policy

Illustration of a pattern of the SEC logo with abstract clouds of smoke. 

👀 Climate tech startups to watch: The folks at Bloomberg New Energy Finance released their annual list of BNEF Pioneers, which are promising up-and-coming climate tech startups.

Katie's thought bubble: I like this list because I always learn about new companies and it's not the same-old hot firms.

Startups included: Envelio, PVCase, TS Conductor, Aeroseal, Celsius Energy, Kelvin Systems, CoverCress, XFuel, NatureMetrics, Li-Metal, and Element Zero.

🚕 Hydrogen taxis: French hydrogen taxi company HysetCo has raised almost €200m ($217m) led by hydrogen infrastructure company Hy24, which became the company's largest shareholder.

HysetCo will use the funds to expand outside of Paris.

Raise Impact and Eiffel Investment Group also participated in the round.

✈️ SAF tech: A massive sustainable aviation fuels project has chosen tech from Johnson Matthey and BP for its first $4 billion plant in St. James Parish, La., with big expansion plans, the companies announced today. Axios Generate's Andrew Freedman has more.

4. Temperature check

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

• Weenat, a French agtech, raised €8.5m in funding from ECBF, Pymwymic, Liberset and IDIA Capital Investissement. axios.link/43RUa9q

• AutoNxt Automation, an Indian electric mobility tech platform, raised an undisclosed amount in pre-Series A funding led by Saama Capital. axios.link/49x8y8v

• Platform Science, a software transportation company based in San Diego, has raised $125 million in growth capital from strategic investors C.R. England, Cummins, Daimler Truck, PACCAR, RyderVentures, and Schneider. New investors include Activant Capital, BDT & MSD Partners, and Manhattan Venture Partners. https://axios.link/3VTSbQ3

• Carrar, an Israeli startup that builds EV battery tech, has raised a $5.3 million Series A round from new investors Salida B.V., OurCrowd, and NextGear, and current investors Gentherm, Next Leap Ventures, and Dive Digital. https://axios.link/49xNIWg

• Graphjet, an artificial graphite producer based in Malaysia, plans to build a new agriculture-to-graphite plant in Nevada that will recycle palm kernels into battery-grade artificial graphite. https://axios.link/449SFDX

• Cadmus, a contractor based in Arlington, Va., has been awarded $27 million to administer the U.S. Department of Transportation's (DOT) Reconnecting Communities Institute (RCI). https://axios.link/3JdH90A

• Nth Cycle, a metal recycling and refining startup based in Boston, has been awarded a $7.2M tax credit allocation under the IRA's 48C program. https://axios.link/43RnaOw

5. Hot deals

• Lloyd Bennack has joined infrastructure and advisory firm Nexus PMG, based in Houston, as its new general counsel. Bennack was previously deputy general counsel for Orbital Infrastructure Group. https://axios.link/3xwhGNa

• Michael Beer and Jem Davies were appointed as non-executive directors to the board of Cambridge Future Tech. axios.link/3PXVx0u

• James Priestley, formerly managing director at Renewi, was appointed CEO of recycling and resource recovery company Enva. axios.link/3VTYhQy

• Luis Boada has joined EV charging company Wallbox, based in Barcelona, as its chief financial officer. Boada previously was CFO of North America of Fluidra. https://axios.link/4auWgP0

• Steve Jurvetson has joined The Metals Company board of directors as vice chairman and special advisor to the CEO. Jurvetson is an investor who has backed Tesla, SpaceX and Planet Labs. https://axios.link/3TRTSLk

6. It's personnel

Finnish startup Polar Night Energy installed the first commercial "sand battery" connected to a district heating network at a site in Kankaapää, Finland.

Why it matters: Utilities are exploring new thermal energy storage technologies that are lower cost than lithium-ion batteries, Katie writes.

Driving the news: Last week Polar Night Energy closed a €7.6m seed funding round led by Jonathan Oppenheimer.

7. Photo of the day: A sand battery

A sand battery installed at an industrial area.

Finnish startup Polar Night Energy installed the first commercial "sand battery" in Kankaapää, Finland. Image: Courtesy of Polar Night Energy

Axios BFD San Francisco is back May 14, and confirmed speakers include Yahoo CEO Jim Lanzone, VC David Sacks and former NFL quarterback Steve Young. Request an invite and come hang with us. 

😎 Katie has been booking a lot of events and meetings for SF Climate Week. If you have something going on, reach out to her!

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 minerals mavens.

April 10, 2024

1 big thing: Digging for tech