Cleantech May
Market
Challenges
A report released by the International Energy Association predicts that R&D spending within the ‘low carbon’ sector must increase threefold to more than $50bn pa if global warming is to be limited to 2oC
A report released by US think tank the World Resources Institute warned that more aggressive action will by required if the US is to meet its current GHG reduction goal of 26%–28% on 2005 levels by 2025
A study led by Charles Darwin University estimates that reduced productivity and absenteeism resulting from heat waves currently costs the Australian economy around $6.2bn pa, a figure that is set to increase considerably with the impact of global warming
Progress
Globally, more than 7.7m people were employed in the renewable energy industry at the end of 2014, an 18% increase on 2013, according to a report released by the International Renewable Energy Agency. Around 3.4m of these are based in China, which has 70% of the world’s solar manufacturing capacity. Leading markets in the EU have seen a contraction in employment levels as a result of a surge in Asia and the US
A new deal was agreed to remove surplus allowances from Europe’s emissions trading scheme by 2019. This is expected to be confirmed in July
Japan agreed to donate $1.5bn to the Green Climate Fund, which is intended to become the main financing arm of the UN FCCC. The agreement means that almost 60% of the $10.1bn pledged to the Fund by 33 governments has been confirmed
China reduced CO2 emissions by an amount equivalent to the entire UK output over the first four months of 2015
The Inter-American Development Bank approved two $72m loans for two 70MW wind energy projects in Uruguay. The China co-financing Fund for Latin America and the Caribbean is providing a further $36m to each project
BoA Merrill Lynch issued a $600m green bond designed to finance clean energy and energy efficiency projects
More than 10,000 residents of Belgium pledged support to an initiative designed to legally compel the government to do more to address climate change
A report release by GTM Research predicts that the US market for distributed PV services (eg asset management, O&M etc) will reach $800m by 2020. Similarly, an industry outlook published by Canadian Solar (one of the world’s top three Solar PV manufacturers) estimates that the cost of solar PV modules will fall by 25% over the next three years
Maersk Line, the world’s largest container ship operator, announced plans to cut emissions per container moved by 60% by 2020, as part of plans to reduce GHG emissions by 200mt CO2(equivalent) over the same period
Unilever announced that it has saved one million tonnes of carbon emissions since 2008 via a range of initiatives including waste-to-energy installations and factory energy efficiency measures. The company estimates that this has saved it €244m in energy costs
Food for thought
A report published by CERES contends that the majority of major food producers are ill prepared to deal with the growing shortage (and increasing price) of water, with few actively tracking water use or incentivising savings throughout the supply chain. Agriculture accounts for around 70% of the world’s water consumption, according to the UN Food & Agriculture Organisation
A two day meeting of G20 agricultural ministers held in Istanbul to address the problems of food security and nutrition called for better management of food waste. The UN Food and Agriculture Organisation estimates that 1.3bn tonnes of food, equivalent to 30% of global production, is lost or wasted each year. Globally, it is estimated that food waste costs the hospitality sector £44bn per annum, according to resource efficiency charity WRAP
A report issued by the International Centre for Tropical Agriculture warned that the Arabica Coffee plant, which provides c70% of raw materials to the global coffee industry and is key to the livelihoods of an estimated 25m small scale farmers across 60 countries, stands to be heavily impacted by expected climate change. The plant is particularly sensitive to temperature increases (resulting in reduced growth and vulnerability to pests) and will be unlikely to survive indefinitely within key coffee-producing areas without mitigating strategies (such as genetic modification or changes in farming methods). Globally, coffee is the second most traded commodity after oil
O&G sector in decline but still massively subsidised
The IMF released a report estimating that fossil fuel companies receive subsidies totalling $5.3tn annually, a figure greater than worldwide governmental health spending and equivalent to $10m a minute or 6.5% of global gross GDP. The report estimates that ending such subsidies would cut global carbon emissions by 20% and half the 3.2m premature deaths that result from air pollution each year
Norway’s $916bn oil find moved forward with proposals to divest from companies with a reliance (either through revenues or power use) of more than 30% on coal. If passed in Parliament, the motion is expected to affect companies including RWE, Eon and Vattenfall
Coal use in China fell by 8% relative to the corresponding period in 2014, according to Greenpeace Energydesk
Global coal stocks have fallen in value by 70% over the past five years, according to the Institute for Energy Economics and Financial Analysis
Oxford University announced that environmental oversight of its $2bn endowment fund will be bolstered while it will no longer consider direct investments in coal and oil sands companies
Six of Europe’s largest oil and gas producers (BG Group, BP, Eni, Royal Dutch Shell, Statoil and Total) submitted a request to the UN to be involved in devising a global carbon pricing system
Figures released by consultancy Rystad Energy estimate that more than $100bn of spending on new projects by the world’s energy companies has been slowed, postponed or axed following oil price declines
Calls for a crackdown on the shale industry have been heightened in light of growing evidence linking it with increased incidence of seismic activity:
Interesting deals / companies / funds
Innovation
UK-based Lontra has developed an energy efficient compressor that could be deployed in a vast range of application such as fridges, car air conditioning systems and factory machinery. The company recently closed a £2.5m funding round
A team of researchers at MIT reported that it has developed a technique that can be used to apply a layer of highly durable graphene to the internal surfaces of steam condensers, which are used in the majority of electricity-generating power plants. Early results show that doing so improves condenser efficiency by a factor of four (resulting in a 2%–3% efficiency improvement for the power plant as a whole), with further improvements likely
Researchers at Delft University of Technology have created a ‘bioconcrete’ that is capable of repairing itself when cracks form. The material contains capsules of dormant bacteria and calcium lactate, which react with water to form limestone that fills developing cracks
A team of researchers at Bristol University have developed a technique that enables radio devices to transmit and receive signals on the same channel simultaneously. The development has the potential to increase data transfer rates, expand network capacity and reduce power consumption within mobile devices
Holland-based Nerdalise is reportedly developing novel methods to use distributed servers as heat sources in domestic settings. It is one of a number of companies looking at ways to recycle waste heat from IT equipment
Spain-based Vortex Bladeless unveiled a new wind turbine design that contains no contacting moving parts. Based on the principles of natural frequency and vorticity, the design harnesses passing wind to generate oscillations that build to the natural resonance of the structure, thus optimising energy capture. The structure employs magnetic levitation to ‘float’ above its base in order to eliminate friction and remove the need for lubricating oils. With fewer parts, the design promises to increase efficiency and deployment density while reducing costs (both manufacturing and operational) and environmental impacts. The company, which has developed partnerships with Harvard University and Sun Edison, is currently conducting a crowd funding campaign
VC Funding
Company | Description | Deal ($m) | Investor(s) |
Farmers Business Network | Platform that enables sharing and analysis of real-world agricultural data in order to optimise seed selection, fertiliser use etc | $15m | Google Ventures, KPCB |
Smarking | Application that balance supply and demand of parking spaces in urban areas | $3m | Khosla Ventures |
Bit Stew Systems | Big data analysis applications designed to identify efficiency improvements within industrial systems | $17.2m | GE Ventures |
Joule | Developer of solar-powered system that utilises engineered catalysts to convert waste CO2 into renewable fuels | $40m | Flagship Ventures |
Itineris | CRM software for utilities | $7.5m | Gimv |
OmniEarth | Platform that provides users with access to constant streams of geospatial data to inform decisions relating to agriculture, energy and water management | $5m | Undisclosed |
Beyond Surface Technologies | Developer of sustainable textile treatments | $1m | Patagonia |
General Fusion | Commercialising novel fusion technology | $27m | Chrysalix, Braemar, SET |
EnergySage | Solar energy comparison platform for both consumers and businesses | $1.5m | Launchpad Venture Group |
Enervee | Consumer-focused platform designed to provide information on the energy and environmental impacts of electronic products | $3.7m | Obvious Ventures |
Pavegen | UK-based developer of floor tiling that captures kinetic energy from footfall. The company has delivered more than 100 projects, including an installation at Heathrow Airport, since being established in 2009 | £900k | Crowdfunding |
Winnow | Developer of a range of connected kitchen devices and software designed to monitor and reduce food waste | £900k | Mustard Seed, D:Ax |
Airviz | Developer of personal air quality monitor based on technology developed at Carnegie Mellon University | $2m | Infosys |
Sirrus Chemistry | Developer of a new class of energy efficient and biologically benign monomers, resins and polymers with applications in electronics, packaging and transportation | $6.5m | Braemar, GM Ventures, Mitsui |
Growth / M&A
US-based SolarCity secured a $500 loan facility from BoA Merrill Lynch, Credit Suisse and Deutsche Bank. This is thought to be the largest facility of its kind for distributed solar projects and will be sufficient to fund development of approximately 500MW of generating capacity
Weathernews Inc Japan acquired Weathermob in a move designed to augment its crowd sourced weather information services
UK
SSE confirmed that one of the UK’s largest coal-fired power stations, the 980MW Ferrybridge C Facility in West Yorkshire, will close by next year. The company reported that the ongoing costs of keeping the plant operational could not be justified given its five year maximum lifespan under current EU environmental rules
The ERDF invested €13m into a €25m marine energy project designed to deploy a10MW array of devices built by Sweden-based Minesto in Welsh waters by 2019
Figures released by the Green Deal Finance Company revealed that more than £50m of finance has been put in place to date under the Green Deal energy efficiency scheme
The Green Investment Bank acquired a £236m stake in the £1.3bn, 400MW Rampion Offshore Wind farm, which is being developed by E.On
Oxford University launched a £300m joint venture designed to commercialise research and technologies developed through the university