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BFD Expert Voices - Climate Deals

BFD Expert Voices

Halcyon, a startup co-founded by energy data guru Nat Bullard, raised a $10.8 million seed round for an AI-powered search service, the startup tells Alan.

Why it matters: Bullard is one of the most well-known experts on the global energy transition.

Driving the news: Bullard is turning his knack for data insight into an AI-driven SaaS.

The service, Halcyon, uses machine learning and large language models (LLMs) to sort through the reams of documents produced by public utility commissions and energy regulators.

The idea is to arm industry analysts and investors with intel on what various energy and electricity agencies may be doing — and which groups may be influencing them.

Zoom in: The U.S. Treasury Department, for example, was flooded with nearly 30,000 public comments on how it should implement hydrogen incentives in the Inflation Reduction Act.

At the state level, California's Public Utility Commission has been embroiled in a lengthy, almost byzantine legal fight over how to compensate community solar projects.

"It's extremely valuable to know what the arguments are, where they might emerge in other jurisdictions, what people are making comments, how to group those," Bullard, the startup's chief strategy officer, says.

"To know, for instance, how utilities think of a judge's opinion versus advocates versus smaller players, larger players."

State of play: Halcyon is among a growing crop of AI startups aiming to sort through energy regulatory data. HData, for example, closed a $10 million Series A in January led by Buoyant Ventures.

What's next: The San Francisco-based startup is in private beta. It plans to initially focus on California before expanding in scope.

1 big thing: Nat Bullard's search service

Illustration of a glowing lightning bolt symbol filled with binary code.

Swtch Energy closed a $27.2 million Series B to bring electric vehicle chargers to apartment and condo buildings, Alan reports.

Why it's the BFD: The startup says it's found a low-cost way to bring EV charging to building owners and, in turn, their tenants.

The big picture: Access to reliable at-home charging is one of the biggest hurdles facing broader EV adoption in cities.

How it works: Swtch installs and manages EV charging systems for multi-unit buildings. It also offers an energy management service that can tweak consumption across a range of energy-thirsty devices, from heat pumps to thermostats.

Driving the news: Impact investor Blue Earth Capital led Swtch's all-equity round, which closed April 5 following a 10-month raise.

Financial services firm Alantra, Active Impact Investments and Giga Investments joined.

Swtch's board expanded from five to seven people with the round, adding Alantra partner Manuel Alamillo, and one seat yet to be filled.

What's next: Toronto-based Swtch has deployed about 10,000 charging ports in the U.S. and Canada.

It plans to continue expanding and continue developing a software hub that would manage building devices and services.

2. The BFD: Cash for condo chargers

Illustration of an electric vehicle plugged in to a charging station.

Startup 9Zero is looking to turn a mostly empty building in downtown San Francisco into the heart of "climate alley," writes Katie.

Driving the news: The company launched its Climate Innovation Hub, a co-working space, event venue and membership club, at 350 California St.

The venue will be the main physical venue of SF Climate Week, which kicks off next week and features hundreds of decentralized climate-focused events around San Francisco.

9Zero co-founder and CEO Duncan Logan, who previously founded co-working pioneer RocketSpace, told Axios that the idea is to turn 350 California St. into the "first purposeful climate building," then take over the block and expand to other states and countries.

Zoom in: 9Zero has early backing by some angel investors including a personal investment from Colin le Duc, the founding partner of Generation Investment Management.

"The climate community is crying out for a centralized connective tissue," says le Duc.

Context: San Francisco's downtown occupancy for commercial real estate plummeted during COVID and has remained stubbornly low.

Logan said 350 California St. was 90% empty when they created a deal with the owners SKS Partners and The Swig Company.

State of play: There are a variety of co-working spaces operating in San Francisco that have managed to bring together some level of climate entrepreneurs like Shack15 and Dynamico Space.

Co-working group Trellis says it has special rates for climate entrepreneurs.

The big picture: San Francisco is arguably ground zero for climate tech.

What's next: We'll be watching to see if climate tech startups and investors are able to amass in volumes enough to create the vision of a San Francisco climate tech alley.

3. San Francisco's climate tech alley

A group of entrepreneurs gathers at 9Zero's Climate Innovation Hub in San Francisco.

A group of entrepreneurs gathers at 9Zero's Climate Innovation Hub in San Francisco. Photo: Courtesy of 9Zero

Emissions detection service Momentick closed a $6.5 million seed round to expand the range of greenhouse gases that it tracks, the company tells Alan.

Why it matters: Leaks from fossil fuel infrastructure are responsible for 40% of human-caused methane emissions.

The big picture: Tel Aviv-based Momentick is among a handful of startups using satellites to detect plumes of invisible gas leaking from fossil fuel infrastructure.

How it works: Unlike the Environmental Defense Fund's MethaneSat or the publicly traded earth imaging service Planet Labs, both of which launched their own satellites, Momentick is purely a software company, using an algorithm it developed to interpret images taken by others' satellites.

The approach enables Momentick to be cost-efficient and cover a broader swath of territory, CEO Daniel Kashmir says.

The company says it can detect leaks below 1,000 kilograms/hour, which is about standard for a satellite.

Driving the news: Venture capital firms Chartered Group Japan and Tel Aviv-based Tau Ventures led Momentick's all-equity round, which closed at the end of 2023.

Tau joined Momentick's four-member board alongside the startup's founders.

Context: The raise comes as fossil fuel companies face new U.S. regulations that will penalize them for methane leaks.

That's spurred not only oil and gas companies to invest in leak-detection services but also their financial backers and insurance providers.

"Because of the regulations, we're seeing more and more demand on the financial side," Kashmir says.

What's next: Momentick is tweaking its algorithm to also detect carbon dioxide and nitrogen emissions.

4. Exclusive: Momentick's out-of-this-world raise

an illustration of a methane molecule being enlarged by a magnifying glass

🔎 More on the solar tariffs: South Korean manufacturer Hanwha Qcells asked the Biden administration to end its tariff exemption on solar imports, Reuters reports.

Solar manufacturers First Solar, Heliene, Suniva, Silfab, Crossroads Solar, Mission Solar and Auxin Solar are backing Hanwha Qcell's request.

The company has two factories in Georgia, and it's pursuing a $2.5 billion expansion of its U.S. manufacturing operations.

The Solar Energy Industries Association, the sector's main trade group, has urged the White House to loosen tariffs. A bipartisan group of senators has meanwhile called for tougher measures.

📈 Interest impacts: High interest rates aren't only bad for clean energy in isolation — they're a competitive disadvantage compared with incumbent fuels, Ben Geman writes in Generate.

"The oil and gas industry, while also highly capital intensive, has far less exposure to the cost of debt, so is less affected by higher rates," per a WoodMac analysis.

A 2-point rate hike in the U.S. causes the levelized cost of power for renewable projects to jump as much as 20% — about twice the impact on gas-fired power plants.

🏛️ Cobalt in Congress' crosshairs: The House Ways and Means Committee approved a bill that would require a federal investigation into forced and child labor at cobalt mining sites in Congo, Axios Pro's Jael Holzman writes in Energy Policy.

The bill has bipartisan backing, meaning EV and battery makers won't be able to paint it as purely a GOP attack on the energy transition. Energy Policy will have more today, so stay tuned.

🗳️ Decision time at Tesla: The automaker is asking shareholders to authorize a pay package for CEO Elon Musk that a Delaware court recently invalidated, colleague Nathan Bomey reports.

Delaware Chancery Court Chancellor Kathaleen McCormick ruled in January that Musk had not proven his $56 billion compensation deal was fairly approved. Tesla's new request to shareholders comes amid a serious slump in the company's stock.

5. Temperature check

Illustration of an ice cream cone with a melted puddle of ice cream that looks like the earth.

• Asset manager Lazard and French early-stage VC firm Elaia are targeting €1b for a new growth fund focused on European deeptech startups. https://axios.link/49FNkFu

• Skyports, a UK vertiport developer for electric drones, raised a $110m Series C led by Spanish engineering firm ACS Group, joined by Paris airport operator and existing investor Groupe ADP. https://axios.link/3Q6fBOt

• Magnus Metal, a Tel Aviv-based developer of more efficient industrial metal casting, raised a $74m Series B led by Entrée Capital and Target Global, joined by Caterpillar Ventures, Tal Ventures, Deep Insight Ventures, Awz Ventures, Lumir Ventures, Discount Capital, Lip Ventures, Cresson Management, Next Gear Fund and Essentia Venture Capital. https://axios.link/3U6CuCJ

• Found Energy, a Boston-based industrial heat startup, raised a $12m seed round from Kompas VC, Munich Re Ventures, Good Growth Capital, the Autodesk Foundation, J-Impact, GiTV, Massachusetts Clean Energy Center, and Glenfield Partners LTD. https://axios.link/3UnMhpk

• Breaking, a Colossal Biosciences spinout that's developed a substance to degrade plastic waste, emerged from stealth with $10.5m in seed funding led by Builders VC. https://axios.link/4aXvChv

• Aiperia, a German food-demand forecast startup for reducing waste, raised a €7.5m Series A led by ETF Partners and LBBW VC, joined by insider Earlybird Venture Capital. https://axios.link/3W3Crd9

• Swisspod, a Swiss hyperloop developer backed by Richard Branson, is raising €7m, per Tech Funding News. https://axios.link/3xQglkj

• AmphiStar, a Belgium startup making eco-friendly surfactant for shampoo, cosmetics and cleaning products, raised €6m led by the European Circular Bioeconomy Fund, joined by Qbic III and Flanders Future Tech Fund. https://axios.link/3UnvgeU

• Verne, a San Francisco-based startup making hydrogen storage systems has raised a round of funding from Trucks Venture Capital, United Airlines Ventures Sustainable Flight Fund, Newlab Collaborative Fund, and Amazon's Climate Pledge Fund. https://axios.link/3W5vN6u

• Blackstone plans to buy the site of UK battery maker Britishvolt, which collapsed into administration last year, to build a data center. https://axios.link/4b3oekZ

• HASI, a climate investor based in Annapolis, Maryland, has increased its committed capital for corporate unsecured credit facilities with a syndicate of banks from $915 million to $1.25 billion. https://axios.link/3xKWq6E

• Redaptive, a Denver-based energy efficiency and clean energy service provider, raised $225 million in a warehouse financing facility from ATLAS SP Partners to offer financing to customers. https://axios.link/3W5yAwu

• One Equity Partners sold Finnish sustainable packaging supplier Walki Group Oy to Japanese paper products company Oji Holdings. https://axios.link/49Kbdvv

• Toyota's ultra-popular Camry sedan will be hybrid-only starting this spring, per Bloomberg. https://axios.link/3W6Ijm2

• New York became the first state to get U.S. Energy Department approval for an Inflation Reduction Act-funded program providing home electrification rebates. https://axios.link/441zHz7

• Real estate developer Alloy Development has opened NYC's first all-electric skyscraper, a 44-story apartment building in Brooklyn called Alloy Block. https://axios.link/3xDsM38

• Boston-based chemicals maker Cabot (not the cheese company) was picked for a $5m U.S. Energy Department research grant for fuel cells that emit only water. https://axios.link/4avsael

• Electra.aero, a Manassas, Va.-based developer of hybrid-electric aircraft, received a $1.9m contract from the U.S. Army to fund wind tunnel testing of its short-takeoff and landing aircraft. https://axios.link/49GVPjl

• Constellation, the Baltimore-based power provider, filed a license renewal application with the U.S. Nuclear Regulatory Commission to extend its Dresden Clean Energy Center nuclear plant in Morris, Ill., another 20 years to 2051. https://axios.link/3xL3i3W

• CF Industries, a Northbrook, Ill.-based ammonia producer, and Japanese energy company JERA executed a joint development agreement to develop a greenfield low-carbon ammonia plant at CF's Blue Point Complex in Louisiana. https://axios.link/3W9y40x

• Lion Electric, a Canadian electric truck maker, is cutting about 120 workers, a roughly 9% reduction. https://axios.link/4d3t9UH

• EMP Metals, a Vancouver-based direct lithium extraction developer, started operations at its pilot plant in Saskatchewan. https://axios.link/3W5F8LA

• Zero Motorcycles, the Santa Cruz-based electric motorcycle maker, added a Tesla charging adapter for its bikes. https://axios.link/3xBcac2

6. Hot deals

• Daniel Berenbaum was named CFO of Bloom Energy, the San Jose-based fuel cell maker. Berenbaum was previously EVP and CFO at National Instruments. He succeeds Greg Cameron. https://axios.link/3W4I4YF

• Rob Wallace was named CEO of EET Hydrogen Power, a UK hydrogen heat and power project. Wallace was previously with Irish electricity company ESB. https://axios.link/4464haN

• Joel Raha and Jeanne Lee joined Novata, an NYC-based ESG data provider, as CTO and head of APAC sales, respectively. https://axios.link/3JmvGM3

• Alex Behar joined Buoyant Ventures, the Chicago-based early-stage VC firm, as principal investor. Behar was previously VP at food and ag VC fund Cultivian Sandbox. https://axios.link/3xETYyh

• Brent Phillips was named president of Vicinity Motors, a Ferndale, Wash.-based electric- and clean-diesel bus maker. Phillips was previously VP of sales. https://axios.link/3xF1tFr

• Brian Kellar was named CFO at BayoTech, an Albuquerque hydrogen production and transportation developer. Kellar was previously CFO at Northwind Midstream Partners. https://axios.link/3vXpC9K

• Billy Nolen was named chief regulatory affairs officer at Archer Aviation, the San Jose-based eVTOL developer. Nolen remains Archer's chief safety officer and was previously U.S. Federal Aviation Administration administrator. https://axios.link/3W4PsDn

• Melissa McCaffrey joined Archer Aviation to lead state and local government affairs. McCaffrey was previously director of policy and government affairs at Overair. https://axios.link/3W4PsDn

7. It's personnel

🚨 Situational awareness: The Biden administration plans to restore costly tariffs on solar imports from China, per Reuters. The Trump-era measures, extended by Biden in 2022, strangled U.S. solar projects until the White House introduced a two-year waiver, which is set to expire in June.

🍺 If you need a drink: Our sip of the week is a crisp can of Ranch Water, which Alan tried for the first time and really liked. 

🐣 Katie is looking forward to a social weekend of birthday parties for all the spring babies this weekend. 

🏠 Alan and Terry are considering converting their garage into a living space. If you've done the same, Alan would love to hear about it.

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 data deep-divers.

April 18, 2024

1 big thing: Nat Bullard's search service