CB-Insights：Climate-Tech-Outlook-Report-2021_70页_6mb

2021 Climate Tech Outlook: Next-Gen Solutions To Cut Emissions & Reduce Resource Intensity

Summary of Findings

The 2021 Climate Tech Outlook highlights the growing focus on reducing emissions and resource intensity in the industrial sector. The main areas of interest include energy efficiency, renewable energy integration, and direct emission reduction. Investors are increasingly supporting companies in these areas, especially those working on energy storage, carbon capture, and hydrogen technologies.

Key Trends

• Energy Transition and Carbon Footprint Reduction: Energy transition and carbon footprint reduction are top priorities as regulatory pressure increases. Companies are investing in technologies that help them achieve carbon neutrality.
• Energy Storage: Energy storage has seen a significant rise in investment, with annual funding reaching a record high of $15.3B in 2021. Companies like Northvolt and Sila Nanotechnologies are raising substantial amounts to expand their operations and develop new technologies.
• Carbon Capture, Utilization, and Storage (CCUS): Funding for CCUS has more than doubled since 2020, with companies like Redwood Materials leading the way in battery recycling and other emission reduction technologies.
• Hydrogen Technology: There is a notable increase in investment in hydrogen production and utilization, with companies like Gen-Hy and Enapter developing scalable and modular green hydrogen units.
• Circular Economy: The momentum of the circular economy is growing, with companies focusing on recycling, reusing, and reducing waste. Innovations in battery recycling and sustainable materials are central to this movement.
• Digital Tools and AI: Digital tools and AI are playing a crucial role in optimizing energy usage and reducing emissions. Startups are developing platforms that help companies monitor, analyze, and forecast their operations to improve efficiency and sustainability.

Current Backdrop

Sustainability as a Business Priority

Sustainability is becoming an urgent business concern, with government officials, investors, and consumers demanding that companies report and mitigate their environmental impact. This is driven by new ESG regulations and the increasing awareness of climate change impacts.

Corporate Investments in Clean Tech

Major corporations are investing in and deploying clean technologies to meet their carbon neutrality goals. Examples include green steel production for automotive companies and investments in renewable energy and storage by energy firms.

Key Climate Tech Trends in Industrials

Energy Efficiency

• Companies are focusing on reducing energy usage and intensity through innovative technologies.
• Examples include Tae Technologies, FlexGen, and Monolith Materials, which are developing solutions for energy storage, power management, and hydrogen production.

Renewable Energy Integration

• The integration of renewable energy into operations is being supported by digital tools and grid technologies.
• Startups like Origami Energy and Reactive Technologies are developing platforms that optimize renewable energy generation, trading, and consumption.

Emission Reduction

• Companies are developing both physical and digital solutions to reduce direct emissions.
• Innovations in carbon capture and battery recycling are key areas of focus.

2021 Climate Tech Investment Trends

Mega-Rounds in Climate Tech

• In 2021, several climate tech companies raised significant amounts in mega-rounds, including:
  • Tae Technologies: $280M (April 2021)
  • FlexGen Power Systems: $150M (August 2021)
  • Monolith Materials: $120M (June 2021)
  • H2 Green Steel: $105M (May 2021)
  • Energy Vault: $100M (August 2021)

Energy Storage Investments

• Energy storage investments have reached record highs in 2021, with companies like Northvolt, SVOLT, and Hydrostor raising substantial funds.
• Northvolt raised $2.8B for its lithium-ion battery factories, while SVOLT raised $1.6B for its battery production in China and Europe.

Hydrogen Investment

• Hydrogen technology is gaining momentum, with companies like Gen-Hy, Enapter, and HTEC developing scalable hydrogen production and fueling solutions.
• These companies are playing a key role in the transition to a hydrogen-based economy.

SPACs and Clean Tech

• Energy and EV-related SPACs are on the rise, indicating strong investor confidence in the sector.
• Examples include Stem, Enovix, HYZON, and Lucid Motors.

Climate Tech Highlights

Emission Abatement

• Reduce Energy Usage & Intensity: Companies are developing technologies to lower energy consumption and improve efficiency.
• Increase Renewable Energy Use: Innovations in renewable energy integration are helping companies transition to cleaner energy sources.
• Reduce Direct Emissions: Physical and digital solutions are being used to prevent or reduce emissions.

Resource Use Reduction

• Lower Water Intensity: Companies are developing materials and digital solutions for wastewater reuse.
• Design Sustainable Product Life Cycles: Focus is on creating recyclable, reusable, or biodegradable materials.
• Decrease Waste: Innovations in manufacturing and recycling are helping reduce waste production.

Summary of Major Companies and Their Innovations

Conclusion

The 2021 Climate Tech Outlook emphasizes the importance of reducing emissions and resource intensity through next-generation technologies. With significant investments in energy storage, hydrogen, and carbon capture, the industry is moving towards a more sustainable future. The role of digital tools and AI in optimizing energy use and operations is also growing, supporting the transition to a low-carbon economy.