Your Newsletter at a Glance
Commentary by C4C
We will be back next week with commentary and a list of knowledge resources we think you may have missed. In the meantime, enjoy the weekly deal flow.
Climate Finance ≥ $100M
Commitments
Indonesia launches $20B renewable energy investment plan [Reuters]
- Indonesia launched its investment plan to mobilize $20 billion in financing pledged by global lenders led by the United States and Japan to accelerate its power sector decarbonization and called for immediate fund disbursement. Under Indonesia's Just Energy Transition Partnership (JETP) the country seeks to cut carbon dioxide emissions to 250 million metric tons for its on-grid power sector by 2030, versus estimated business-as-usual emissions of over 350 million.
Petrobras allocates $11.5B to low carbon in new plan [Reset]
- Petrobras announced its new strategic plan for investments to be made between 2024 and 2028. Of the amount, US$ 11.5 billion will be allocated to the area considered low carbon by the company – more than double the US$ 4.4 billion approved last year. Most of it goes to clean energy sources: US$5.2 billion for wind and solar energy; US$300 million for hydrogen, carbon capture and venture capital investments; and US$1.5 billion for biorefining. Another US$3.9 billion will be allocated to the decarbonization of its own operations, with a focus on reducing direct emissions (scope 1) and those associated with the electricity used in the process (scope 2), and the decarbonization fund. Research and development in the low carbon area took US$700 million.
Mexico president says Danish fund to invest $10B in Mexico to produce green hydrogen [Reuters]
- A Danish fund will invest $10 billion in a development hub in southern Mexico to produce green hydrogen for ships and to replace fossil fuel use, Mexican President Andres Manuel Lopez Obrador said.
Germany pledges €4B ($4.4B) Euros in Africa’s green energy: AfDB President calls for enhanced partnership [ADB]
- The government of Germany has pledged to invest 4 billion euros in Africa’s green energy until 2030. German Chancellor Olaf Scholz made the announcement at a press conference in Berlin after meeting African leaders and heads of international organizations including the President of the African Development Bank Group Dr. Akinwumi Adesina, during the G20 Compact with Africa conference.
Commission launches first European Hydrogen Bank auction with €800M ($875.7M) of subsidies for renewable hydrogen production [European Commission]
- The Commission launched the first auction under the European Hydrogen Bank to support the production of renewable hydrogen in Europe, with an initial €800 million of emissions trading revenues, channeled through the Innovation Fund. Producers of renewable hydrogen can bid for support in the form of a fixed premium per kilogram of hydrogen produced. The premium is intended to bridge the gap between the price of production and the price consumers are currently willing to pay, in a market where non-renewable hydrogen is still cheaper to produce. Learn more about the lead up to this milestone here.
Nigeria and Germany sign $500M renewable energy and gas deal [Reuters]
- Nigerian and German companies on Tuesday signed two accords in Berlin that include a $500 million renewable energy pact and a gas export deal, further strengthening economic ties between the two nations, a presidential spokesperson said. Union Bank of Nigeria and Germany's DWS Group signed a memorandum of understanding (MoU) on renewable energy. The agreement seeks to harness $500 million in investment in renewable energy projects across Nigeria, mostly in rural communities.
Deals
Grenergy's €2.6bn ($2.9B) plan kicks off with giga BESS project in Chile [Renewables Now]
- Spanish vertically integrated renewables company Grenergy Renovables SA held its first Capital Markets Day, announcing a EUR-2.6-billion (USD 2.85bn) investment effort by 2026 and the start of construction of a gigawatt-scale battery energy storage system (BESS) in Chile. The BESS program will start with the Oasis de Atacama project in Chile, a development featuring 4.1 GWh of energy storage and 1 GW of solar power.
Biden Administration Announces $2B to Fund Environmental and Climate Justice Community Change Grants [EPA]
- The Biden-Harris administration announced ~$2 billion to support community-driven projects that deploy clean energy, strengthen climate resilience, and build capacity for communities to tackle environmental and climate justice challenges. ~$150 million of this has been dedicated to projects benefitting federally recognized Tribes in Alaska.
Enel exits Peru, sells energy distribution and RE generation platform to Actis for $1.4B. [enel]
- Under the agreement, the equity stakes held by Enel Perú and Enel Américas in Enel Generación Perú, and by Enel Perú in Compañía Energética Veracruz, will be transferred to Niagara Energy, a company controlled by the global fund Actis, for a total consideration of around 1.4 billion US dollars (about 1.3 billion euros). The Enel Group has been a leading energy player in Peru since 2007, operating in power distribution and supply with around 1.6 million end users in northern Lima, more than 2.4 GW of installed capacity (mostly renewables), as well as in the e-mobility segment.
Australia's Fortescue approves $750M investment green H2 and steel in US and AU [Reuters]
- Australia's Fortescue (FMG.AX) approved an estimated total investment of about $750 million over the next three years for two green energy projects and one green steel project as the iron ore miner seeks to become a top-tier clean energy producer. Fortescue approved investments in the U.S. hydrogen hub in Phoenix, Arizona; the Gladstone 50 megawatt green hydrogen project in Queensland, Australia; and the Christmas Creek green iron trial commercial plant in Western Australia.
ABB signs €500M ($547.3M) EIB financing to further drive smart and sustainable electrification technologies [ABB]
- ABB and the European Investment Bank (EIB), have signed a €500 million financing agreement to support ABB’s research and development in its Electrification business area. ABB’s solutions are used for example in commercial buildings, industrial operations or microgrids. The funding will support R&D projects in Germany, Italy, the Czech Republic, Finland, Norway, Poland, Switzerland and several other European countries.
Statera Energy secures £300M ($378M) in debt financing for green projects [Tech EU]
- UK-based Statera Energy secures £300 million in debt financing for green energy projects, including one of the largest battery energy storage systems in the UK and Europe.The financing was provided by a syndicate led by Lloyds Bank that was the participation of NatWest, Santander, and Siemens Financial Services through Siemens Bank. A first tranche of £144 million will be used to finalize the completion of a 300MW (600MWh) Thurrock Battery Energy Storage System (BESS). The remaining funds will be used to develop a 270MW flexible generation plant which according to the company secured a capacity market contract early this year.
IDB Invest Syndciates $368M for AES in the DR, the largest Caribbean debt placement for renewables to date [IDB]
- IDB Invest provided a loan package of approximately $368 million to AES Dominicana Renewable Energy S.A. (ADRE), a subsidiary of The AES Corporation in the Dominican Republic, to finance the design, construction and operation of three new non-conventional renewable energy (NCRE) projects totaling 240MWac of installed capacity, and to refinance the short-term debt of three additional renewable energy projects totaling 150MWac of installed capacity. The financing package consists of $37 million from IDB Invest and $331 million mobilized from 21 financial institutions. IDB Invest, together with Banco Latinoamericano de Comercio Exterior S.A. (Bladex), JP Morgan Chase Bank N.A. (JP Morgan) and The Bank of Nova Scotia (Scotiabank), led the underwriting process as joint lead arrangers and bookrunners. The transaction was 2.0x times oversubscribed with more than $485 million orders. This transaction is the largest financing for renewable energy projects for a Caribbean economy.
Blue Bear nears $200M with third fund
[Axios Pro]
- US-based climate tech venture investor Blue Bear Capital is nearing $200 million for a third fund. The fund is broadly focused on energy and climate but is especially interested in "capital light" startups working in software or machine intelligence.
Denmark’s European Energy announces €150M ($164.2M) funding facility for renewable energy projects [Silicon Canals]
- Denmark-based European Energy has partnered with two Scandinavian banks SEB and DNB to secure a €150M Green Portfolio Financing Facility. This five-year funding initiative aims to expedite the implementation of renewable energy projects, focusing on solar and wind energy across 10 Northern European countries.
Recurrent Energy Receives BRL 490M ($100.0M) Financing for Ciranda Cluster in Brazil [Cision]
- Recurrent Energy, a global developer and owner of solar and energy storage assets, announced that it has fully received 490 million Brazilian reais (approximately US$100 million) of non-recourse project financing for its 300 MW Ciranda Solar Power Cluster (Ciranda Cluster) in Brazil. Completed in August 2023, Ciranda Cluster was developed by Recurrent Energy, who is now the long-term owner and operator of Ciranda Cluster.
Nature-based Solutions ≥ $1M
Commitments
Germany’s Nordzucker Commits Over €100M ($109.5M) to Expand Into the Plant-Protein Market [Vegconomist]
- German Nordzucker AG, a leading sugar producer, announces that it will invest €100 million in plant proteins, a new segment for them. As part of the expansion, Nordzucker AG will install a plant-based protein processing plant at the company’s site in Groß Munzel. Construction will begin in fall of 2024 and be complete by mid-2026.
Germany Earmarks €38M ($41.6M) Investment for Alt-Protein Transition in 2024 Federal Budget [Green Queen]
- Germany has set aside €38M in investment for the promotion of alternative proteins and a switch to plant-based agriculture in its federal budget for 2024. This includes promoting the manufacturing and processing of plant-based, cultivated and fermented proteins, supporting a transition to plant-based farming, as well as opening a Proteins of the Future center.
UBS, Swiss Re sign $2M partnership with Indonesian nature venture builder [Carbon Pulse]
- The philanthropy arms of investment bank UBS and Swiss Re have agreed to invest over $2 million in a partnership with an Indonesia-based company that works to secure investments for scalable nature-based start-ups. UBS Optimus Foundation and Swiss Re Foundation have teamed up with Terratai to launch various programmes in Indonesia, with a view to expand across Southeast Asia in time.
Zespri announces $2M annual fund for sustainable innovations [Fresh Fruit Portal]
- Zespri, the world’s largest kiwifruit marketer which manages around one-third of the industry’s global volume, announced the establishment of a new innovation funding initiative, known as ZAG. The company says it is “seeking forward-thinking visionaries, disruptors, dreamers, and darers to help it better innovate in sustainable agriculture, technology, automation, packaging, supply chain, logistics, and industry education.”
Deals
Amazon Fund releases BRL 318M ($64.9M) for security and defense of the Amazon against deforestation [Terra]
- The Amazon Fund, through the manager National Bank for Economic and Social Development (BNDES), will release a first installment of 318 million reais for security actions and defense of the Amazon forest against deforestation. The funding will help with actions such as establishing additional security bases and increasing vehicles, in addition to other police actions.
Matsmart-Motatos tackling food waste with €40M ($43.8M) Investment led by Circularity Capital [Tech EU]
- Circularity Capital led a €40 million growth capital round in Swedish company Matsmart-Motatos, a D2C e-commerce retailer of overstock dry foods and consumer products, with additional support from existing shareholders. Matsmart tackles the issue of waste in the food supply chain by procuring and reselling overstock goods that traditional retailers can't buy.
Canada Invests $11.4M in Whole-Cut Plant-Based Alternative Salmon [Green Queen]
- Famed for its wild salmon, British Columbia’s shift to industrial farming has brought threats to human and planetary health. To counter that, three companies are working on a whole-cut plant-based version of Canada’s favorite fish, with financial support from the government at $11.4M total. The project involves three Canadian businesses: plant-based seafood company New School Foods, precision fermentation startup Liven Proteins and dehydration solutions provider NuWave Research.
Agtech Phinite raises $1.3M in an undisclosed round [SEC]
- US-based Phinite raised $1.3M in an undisclosed round, according to a recent filing with SEC. Phinite partners with farmers to make regenerative and low-carbon fertilizer products that are great for the environment, humanity, and companies' bottom line.
CleanTech raises £800K ($1M) for sea farming robots [Business Cloud]
- London robotics startup Samudra Oceans has secured an £800,000 pre-seed funding round for its technology that aims to improve seaweed farming. The round includes a £150,000 investment from British Design Fund. The AI-powered static monitoring robots use sensors and cameras that enable farmers to actively monitor and predict their seaweed yield. London-based Samudra Oceans to expand sustainable seaweed farming projects from UK and Jamaica to India and Sri Lanka.