Watts up: A new partisan divide

Hi there,

I’m writing to you from Sturgis, Michigan, where I stopped for an oil change and to tidy up this newsletter as I drive across the country back to New York for Climate Week. Ideally, I’ll be there early tomorrow afternoon; only ~650 miles left to go.

If you’re also coming to Climate Week, well, hit me up! I’ll be pretty busy, but you can be sure to catch me if you come to the happy hour I’m co-hosting on Friday at the end of the week with Louie Woodall of Climate Proof. Sign up via the link below or via this link if the embed doesn’t work for you.

ONE STORY IN A SENTENCE AND A CHART

• According to recent polling from Heatmap News, Americans actually agree on quite a few of the factors to which they’re heaping blame for rising electricity prices, though they are split with respect to other drivers. Link.

NEWS, DATA, AND HEADLINES

• The clean energy sector added nearly 100,000 jobs in 2024, outpacing job growth in the rest of the U.S. economy despite a slowdown from previous years, according to advocacy group E2. Link.

• Hyundai announced a $2.7 billion expansion of its Georgia plant to increase production and eventually build 10 different electric and hybrid models. Link.

• CATL revised its 2026 production guidance upward by 30% to 1,300GWh, signaling confidence in China's EV and energy storage markets despite the expiration of China's EV trade-in policy at year's end. Link.

• The Federal Reserve cut rates by 0.25 percentage points to 4-4.25%, with two more quarter-point cuts projected this year, providing some relief to interest rate-sensitive renewable developers. Link.

• Texas' grid has set 17 solar generation records this year and four battery storage discharge records in September alone. Link.

• Australia pledged to cut greenhouse gas emissions 62-70% by 2035 from 2005 levels, despite continuing expansions in its coal and natural gas sectors. It's interesting to see this as an example of a rare country or company advancing new and more ambitious climate pledges versus reneging on prior ones. Link.

• Australia also announced it will spend A$9 billion (~$6 billion) on climate adaptation through 2030 as it prepares for more frequent and severe climate hazards. Link.

• Breakthrough Energy, McKinsey, and Stanford launched a new interdisciplinary ‘Climate Tech Atlas’ to map innovation imperatives across 24 opportunity areas critical to the energy transition and other sustainability initiatives. Link.

• At least six U.S. nuclear companies unveiled plans for new U.K.-based facilities this past week, including X-energy’s plan to build 12 reactors with Centrica, Holtec's plans to build SMR-powered data centers, and TerraPower's liquid sodium-cooled reactors. As with most new fission-focused announcements, the proof here will be in the pudding (or should we say yellow cake?) Link.

• Michigan's Palisades nuclear plant reopening received another $156 million loan disbursement from the Department of Energy. Link.

• The DOE also began dispersing a $1.3 billion loan to Entek Lithium Separators' Indiana plant with an initial $77 million installment, though DOE avoided mentioning EV battery applications that Biden's team highlighted. Link.

• Trump's EPA made a rare decision to uphold Biden-era rules requiring cleanup of two specific PFAS chemicals despite industry pressure, though chemical companies threatened to delay remediation through costly litigation rather than comply. Link.

• Waymo struck a deal with Lyft to launch its robotaxi service in Nashville next year, adding to expansions in Miami, Washington D.C., Dallas, Denver, Atlanta, Austin, Los Angeles, and San Francisco. Link.

• Rivian (finally) broke ground on its $5 billion Georgia factory. Link.

• The U.S. House passed the GRID Power Act, which would allow dispatchable power plants to jump ahead in interconnection queues if they can demonstrate grid reliability benefits. FERC would have 60 days to review proposals from RTOs and ISOs for priority treatment, with rulemaking required within 180 days of enactment. The Electric Power Supply Association supports the bill, while the Sierra Club argues it would favor fossil fuel plants over faster-to-build renewables like wind and solar. Link.

• California's Legislature approved comprehensive policies to curb high electricity costs, including short-term relief for summertime bills and public financing of transmission grids, with Gov. Gavin Newsom having until Oct. 12 to sign the bills into law. Link.

• Climeworks signed its largest-ever carbon removal deal with Schneider Electric for 31,000 tons of CO2 removal by 2039, supporting Schneider's goal to cut its direct emissions by 90% over the next 25 years while helping scale up the DAC industry. Link.

• Hyundai's CEO said construction on the company's Georgia battery plant will be delayed "two to three months" due to labor shortages after a federal immigration raid, though partner LG Energy Solution maintains its U.S. investment plans. Link.

• Exxon Mobil shelved €100 million (~$118 million) of chemical recycling investments in Antwerp and Rotterdam, citing overly restrictive EU plastics rules. Link.

• An analysis by The Times-Picayune and The Advocate, independently reviewed by researchers at Tulane University, found that more than 3,600 wells once drilled on Louisiana land or wetlands are now in open water due to erosion, sinking land, and rising sea levels. Link.

• Santos' $19 billion takeover by Adnoc-led suitors collapsed partly due to a methane leak at a Santos site, according to people familiar with the events. Link.

• Solar developer PosiGen is pulling out of three Connecticut projects and eliminating 78 jobs as financing dries up ahead of federal tax credit phaseouts, with layoffs starting next week. Link.

CURATED DEALS

Larger funding rounds:

• Lila Sciences, based out of Cambridge, Massachusetts, raised $235 million at a ~$1.2 billion valuation to expand its AI science factories that use models trained on materials and chemistry literature to develop new, more sustainable materials more quickly. Braidwell and Collective Global led with participation from ARK Venture Fund and General Catalyst. Link.

• Chestnut Carbon, based out of New York, raised $90 million in Series B extension funding from the Canada Pension Plan Investment Board, bringing its total Series B funding to $250 million for its U.S. afforestation and carbon removal projects. Link.

• PassiveLogic, based out of Holladay, Utah, raised $74 million in Series C funding to deploy building automation systems in Nvidia data centers and Prologis logistics hubs. Noa led with participation from Prologis Ventures, Johnson Controls, NVentures and Brookfield. Link.

• EV Realty, based out of San Francisco, raised $75 million in equity funding from NGP and broke ground on one of California's biggest grid-powered fast-charging truck depots in San Bernardino (featuring 76 DC fast-charging ports). Link.

• ENTOUCH, based out of Richardson, Texas, raised $50 million for its automated energy management software for multisite operators. Respida Capital led. Link.

Medium-sized funding rounds:

• Genomines, based out of Paris, raised $45 million in Series A funding to make plant-based battery-grade nickel extraction. Engine Ventures and Forbion BioEconomy co-led with participation from Hyundai Motor Group, Lowercarbon Capital, and Elemental Impact. Link.

• Rodatherm, based out of Calgary and Salt Lake City, raised $38 million in Series A funding for its closed-loop geothermal system optimized for hot sedimentary basins. Evok Innovations led with participation from TDK Ventures, Toyota Ventures, and MCJ. Link.

• Nofence, based out of Norway, raised €30 million (~$35.2 million) in Series B funding for its virtual livestock fencing that leverages solar-powered GPS collars to advance livestock management practices. Led by European Circular Bioeconomy Fund with participation from Capagro and Nysnø Climate Investments. Link.

• Snowfox Discovery, based out of Oxford, U.K., raised $30 million in Series A funding to conduct exploration for natural hydrogen sources. BP Ventures led with participation from Rio Tinto Ventures and Oxford Science Enterprises. Link.

• Sympower, based out of Amsterdam, raised €19 million (~$22.6 million) in Series B1 extension funding for its automated demand response and battery storage management platform. PGGM led. Link.

• Fourth Power, based out of Boston, raised $20 million Series A+ for its thermal energy storage systems that convert electricity to heat stored in carbon blocks. Munich Re Ventures led with participation from DCVC and Breakthrough Energy Ventures. Link.

• BIOWEG, based out of Quakenbrück, Germany, raised €16 million (~$18.8 million) in Series A funding to turn agricultural waste into biodegradable microplastic replacements using bacterial cellulose. Axeleo Capital led with participation from EIC Fund, NBank Capital, and BonVenture. Link.

• Atec, based out of Cambodia, raised $15.5 million to deploy its IoT electric cookstoves that also integrate a blockchain-tracked carbon credit system. Lightrock and TRIREC co-led. Link.

• Atomionics, based out of Singapore, raised $12.7 million in pre-Series A funding for its quantum gravimetry sensors that could help speed mineral discovery. Paspalis led with participation from BHP Ventures and In-Q-Tel. Link.

• Feld.energy, based out of Munich, raised €10+ million (~$11.7 million) in seed funding to develop agricultural photovoltaics projects. HV Capital led with participation from Future Energy Ventures and AENU. Link.

• GridStrong, based out of New York, raised $10 million in seed funding for its unified platform for electric grid compliance and operations. Congruent Ventures led with participation from Energize Capital, Engie, and strategic utility investors. Link.

Smaller funding rounds

• suena energy, based out of Hamburg, raised €8 million (~$9.4 million) in Series A funding for its AI-optimized trading platform for energy storage and renewable assets. Eneco Ventures led with participation from 4impact capital and InnoEnergy. Link.

• Factor2 Energy, based out of Duisburg, Germany, raised €7.5 million (~$8.8 million) in seed funding to build CO₂-based geothermal power systems using geologically stored CO₂. At One Ventures led with participation from Siemens Energy Ventures. Link.

• Encentive, based out of Hamburg, Germany, raised €6.3 million (~$7.4 million) in seed funding for its AI-driven industrial asset controls designed to cut electricity costs. General Catalyst led with participation from HelloWorld and Summiteer. Link.

• XL Batteries, based out of Marlborough, Massachusetts, raised $7.5 million in seed funding to make non-flammable organic flow batteries for grid-scale storage. Merrin Investors led. Link.

• Overmind, based out of London, raised $6 million in seed funding to help engineering teams predict infrastructure change impacts to prevent outages. Renegade Partners led with participation from Four Rivers and Operator Collective. Link.

• Harvest B, based out of Surry Hills, Australia, raised $3.5 million in pre-Series A funding for its plant-based protein manufacturing business. Mandalay Venture Partners led with participation from Breakthrough Victoria and Alberts Impact Ventures. Link.

• Terra Oleo, based out of Singapore, raised $3.1 million in seed funding to transform agricultural waste into oils for cosmetics and pharmaceuticals as palm oil alternatives. Investors included ADB Ventures, Better Bite Ventures, and Elev8.vc. Link.

• DACLab, based out of Washington, D.C., raised $3 million for its 'Kelvin' DAC system that cuts energy use by ~50% to under 1,000 kWh/ton. Investors included Peter Relan, Dave Roux, and Jane Woodward of WovenEarth Ventures. Link.

• Time-Travelling Milkman, based out of Wageningen, Netherlands, raised €2 million (~$2.3 million) in pre-Series A funding from Sparkalis, Evercurious, and Oost NL for its sunflower-seed-based fat alternative dubbed ‘Oleocream.’ Link.

Other funding rounds

• Terra One, based out of Berlin, raised up to €150 million (~$176.1 million) in mezzanine financing from Aviva Investors, unlocking up to €750 million in total investment for the company to build ~3 GWh of battery storage capacity. Link.

• The U.S. and Ukraine allocated $75 million in funding to seed a fund for mineral and fossil fuel development in Ukraine, with bidding opened for a lithium mine partially owned by the U.S. government. Link.

• HyFlux, based out of Swansea, U.K., will lead the £1.5 million (~$2 million) SUPERCOOL project backed by £1.1 million (~$1.5 million) from the UK's Aerospace Technology Institute for lightweight cryogenic cooling systems for hydrogen-electric aircraft. Link.

• Terra Wave, based out of Romania, raised €1.2 million (~$1.4 million) in EU innovation grant funding for its proprietary fermentation technology that produces fungi-based proteins for meat and pet food applications. Link.

Funds

• Galvanize, based out of San Francisco and London, raised a $1.3 billion Credit and Capital Solutions strategy to provide flexible capital across power, manufacturing, efficiency, and resilience projects. Link.

• Suma Capital, based out of Barcelona, closed its ClimateTech fund SC Net Zero Ventures I at €210 million (~$247 million), 40% above target, with backing from Repsol, the EIF, and Spanish institutions for European industrial decarbonization startups. Link.

• Breakthrough Energy Ventures, American Airlines, and Alaska Airlines launched a $150 million sustainable aviation fuel investment fund to address SAF supply and cost challenges. Link.

• BNVT Capital, based out of London, emerged with $150 million earmarked for its inagural fund to tackle systemic societal problems with $3-7 million investments. Link.

• VoLo Earth Ventures, based out of Boulder, Colorado, closed its Fund II at $135 million, 50% larger than its first fund, with realized exits from Pearl Street Technologies and Gaiascope sold above book value. Link.

• Mad Capital, based out of Boulder, Colorado, closed its Perennial Fund II at $78.4 million to make loans to help U.S. farmers transition to regenerative-organic practices. Its backers include The Rockefeller Foundation and Builders Vision. Link.

• Katapult Ocean Asia and OCTAVE Capital, based out of Oslo, Norway, and Hong Kong, respectively, launched a new $75 million Asia Ocean Fund, billed as the region's largest dedicated ocean impact fund targeting maritime sustainability and energy applications. Link.

Hope to see some of you this week!

— Nick