1PitchBookData,Inc.JohnGabbertFounder,CEONizarTarhuniVicePresident,InstitutionalResearchandEditorialPaulCondraHeadofEmergingTechnologyResearchInstitutionalResearchGroupAnalysisKeytakeaways1Introduction2ClimatetechVCecosystemmarketmap3VCdealactivity6Influencingfactorsforclimatetech13Cross-sectorclimatetechtrends13ContentsPublishedonJune20,2023PublishingDesignedbyJennaO’MalleyDataAlyssaWilliamsDataAnalystpbinstitutionalresearch@pitchbook.comPitchBookisaMorningstarcompanyprovidingthemostcomprehensive,mostaccurate,andhard-to-finddataforprofessionalsdoingbusinessintheprivatemarkets.2022VCinvestmentinclimatetechfalls15.0%fromrecordyearin2021EMERGINGTECHRESEARCHVCInvestmentinClimateTechnologyKeytakeaways•Climatetechinvestmentreachedapeakin2021andfellslightlyto$41.1billionin2022,likelyduetomorechallengingeconomicconditionsaffectingtheoverallVCspace.•Keydriversofclimatetechinvestmentremainstrong,includingregulationandpolicy,consumerinterest,corporatenet-zerotargets,andinvestorpressure.•Withintheclimatetechspace,electricvehicles,powergridinfrastructure,industrialdecarbonization,andintermittentrenewableenergysources(solarandwind)raisedthemostVCfundingin2022.•Manytechnologieswithinclimatetechhaveimplicationsacrosssectors,allowingtechnologicalandproductiondevelopmentsinoneareatobenefitmultipleusecases:forexample,developmentsinbatterytechnologybenefitingBEVs,utility-scaleenergystorage,andresidentialbatteryinstallations.JohnMacDonaghSeniorAnalyst,EmergingTechnologyjohn.macdonagh@pitchbook.com2PitchBookAnalystNote:VCInvestmentinClimateTechnologyIntroductionSinceQ12022,PitchBook’scoverageoftheclimatetechspacehasbeendividedintomultipleverticalsduetothebreadthofclimatetechnologies.ThisnotecoversVC-backedcompaniesincleanenergy,carbon&emissionstech,andclimate-relevantcategoriesofmobilityandfoodtechnology(foodtech).Thus,wedefinetheclimatetechspaceastechnologiesthatacttomitigateclimatechangebyreducinggreenhousegasemissions.Thisdefinitionstillexcludescertainclimate-adjacentareassuchasland-andwater-pollutionremediationorwater-usereduction.Combiningtherelevantclimatetechsegmentsfromcarbon&emissionstech,cleanenergy,mobilitytech,andfoodtechyieldsaclimatetechlandscapewiththefollowingsegments:Carbontech:Carboncapture,utilization,andstoragetechnologies—includingpoint-sourcecarboncapture,directaircapture,andbiologicalcarbonremoval—pluscarbonaccountingsoftwareandcarbontradingtechnologies.Industry:Industrialdecarbonizationthroughalternativestopetrochemicals,low-carbonminingapproaches,andrecyclingtechnologies.Builtenvironment:Technologiesthatreducecarbonemissionsfromthebuiltenvironment,eitherduringconstructionorthroughimprovementstothepostconstructionenergyefficiencyofbuildings.Landuse:Technologiestomonitorandreduceemissionsfromnonindustrialorcommercialland,includingtechnologiesthatofferfertilizeralternatives,emissionsleakdetection,andmonitoringoflandusechanges.Intermittentrenewableenergysources:Energygenerationtechnologiesreliantonsolarandwindenergy,includingbothhardwareandanalytics.Dispatchableenergysources:Cleanenergygenerationthroughgeothermal,hydropower,andnucleartechnologies.Cleanfuels:Generationoflow-carbonfuels,includinghydrogen,biofuels,andwaste-to-energy/fuelsandair-to-fuelapproaches.Gridinfrastructure:Technologiestoimprovetheefficiency,stability,andresilienceofelectricalpowergridsandbetterincorporatenontraditionalenergysources.Low-carbonmobility:Low-carbonair,land,andseavehicles,largelyinvolvingbatteryorcleanfueltechnologies.Sustainablefoods:Aheavyfocusonalternativesourcesofproteinthatresultinlowerlevelsofcarbondioxide(CO2)emissions,plusmoreenvironmentallysustainablepackagingmaterials.6PitchBookAnalystNote:VCInvestmentinClimateTechnologyVCdealactivityIn2022,VCinvestmentinclimatetechreached$41.1billionover2,023deals,downslightlyfromthepeakof$48.4billionover2,074dealsreachedin2021.2022wasthesecond-largestyearintermsofbothtotalcapitalraisedanddealcount,significantlyhigherthan2020,thethird-highestyear,with$24.3billionover1,431deals.2022alsorepresentsthefirstyearsince2013thattotalVCinvestmentinclimatetechdecreased,likelydrivenbyamorechallengingeconomicenvironmentforVCinvestmentoverall.2022sawanincreaseinEuropeanVCinvestmentinclimatetech,withAsia’sinvestmentstayingsomewhatflatandNorthAmericaninvestmentfallingfrom$27.6billionto$17.6billionwhilestillremainingthelargestregionbytotaldealvalue.Exitactivityfellsharplyfrom2021to2022,mirroringthetrendsobservedinthewiderVCspace.In2022,thelargestsegmentsintheclimatetechverticalwere:•Low-carbonmobility:$7.6billionraisedacross128deals•Gridinfrastructure:$6.1billionraisedacross215deals•Industry:$6.0billionraisedacross253deals•Intermittentrenewableenergysources:$5.7billionraisedacross234dealsOfthese,onlyintermittentrenewableenergysources(IRES)representedgrowthintotaldealvaluerelativeto2021,thoughtheindustrysegmentwasalmostflat,witha4.8%declinesince2021.1Thelargestcategoriesintheverticalbytotaldealvalueweresolarphotovoltaicat$5.3billion,batterystorageat$4.7billion,andterrestrial/marinebatteryelectricvehicles(BEVs)at$4.6billion.IRES,cleanfuels,andbuiltenvironmentweretheonlythreesegmentsthatshowedYoYgrowthintotalVCdealvalue,withIRESgrowingsharplyat65.8%duetoverystronginvestmentinsolarphotovoltaictechnologies.Cleanfuelswasnotfarbehindwith47.5%growth;themajorityofVCdealsinthissegmentarefocusedonhydrogentechnologies,butwaste-to-fueltechnologiesandcleanconventionalfueltechnologiesalsoshowedstrongYoYgrowth.Thelandusesegment,whichcontainsfertilizeralternatives,ecosystemhealth&monitoring,andclimate/Earthdata,showedthelargestdeclinesince2021at50.7%,thoughitisalsothesmallestsegmentoverall.Thiswasfollowedbya41.5%declineinsustainablefoodsanda32.0%declinefordispatchableenergysources,includingnuclearpower,hydropower,andgeothermal.1:Theindustrysegmentincludeslow-carbonreplacementsforpetrochemicals,otherchemicalproducts,andmetals;recycling;andlow-carbonmining.7PitchBookAnalystNote:VCInvestmentinClimateTechnologyIn2022,thelargestclimatetechdealwasGACAion’s$2.6billionSeriesA;GACAionisaGuangzhou-headquarteredelectricvehicle(EV)maker.Batterytechnologydeveloperswerewellrepresentedamongthetop10largestdealsof2022,withfourofthesedealsbeingraisedbyNorthvolt,REPTBATTERO,andFormEnergy.InQ42022,Northvoltraised$1.1billioninlate-stageVCfundingwiththeaimtoexpandlithium-ion(li-ion)batteryproductioncapabilitiestokeepupwithgrowthindemand.FormEnergyfocusesongrid-scaleiron-airbatteriesandraised$450.0milliontofundtheconstructionofthecompany’sfirstlarge-scalemanufacturingfacility.REPTBATTEROfocusesonbothEVandenergystoragesystembatteriesandraised$424.2millioninSeriesAfundinginJanuary2022followedby$805.8millioninSeriesBfundinginAugust2022.CarbontechIndustryBuiltenvironmentLanduseIntermittentrenewableenergysourcesDealvalue($M)$3,485.6$5,979.9$2,253.6$1,018.1$5,658.4Dealcount233253205122234YoYgrowth-4.8%-4.8%23.3%-50.7%65.8%2022climatetechVCinvestmentbysegmentSource:PitchBook•Geography:GlobalAsofDecember31,2022DispatchableenergysourcesCleanfuelsGridinfrastructureSustainablefoodsLow-carbonmobilityDealvalue($M)$2,520.5$2,557.5$6,125.9$4,718.8$7,617.6Dealcount60167215458128YoYgrowth-32.0%47.5%-20.2%-41.5%-29.5%2022climatetechVCinvestmentbysegment(continued)Source:PitchBook•Geography:GlobalAsofDecember31,20228PitchBookAnalystNote:VCInvestmentinClimateTechnologySource:PitchBook•Geography:GlobalAsofDecember31,2022$8.1$14.9$15.4$24.3$48.4$41.17519821,1221,4312,0742,023201720182019202020212022Dealvalue($B)DealcountClimatetechVCdealactivitySource:PitchBook•Geography:GlobalAsofDecember31,2022ClimatetechVCexitactivitySource:PitchBook•Geography:GlobalAsofDecember31,2022$3,485.6$5,979.9$2,253.6$1,018.1$5,658.4$2,520.5$2,557.5$6,125.9$4,718.8$7,617.623325320512223460167215458128CarbontechIndustryBuiltenvironmentLanduseIntermittentrenewableenergysourcesDispatchableenergysourcesCleanfuelsGridinfrastructureSustainablefoodsLow-carbonmobilityDealvalue($M)Dealcount2022climatetechVCdealactivitybysegmentSource:PitchBook•Geography:GlobalAsofDecember31,20220%10%20%30%40%50%60%70%80%90%100%201720182019202020212022NorthAmericaEuropeAsiaMiddleEastAfricaOceaniaRestofworldShareofclimatetechVCdealvaluebyregion$0.3$8.7$3.1$19.7$96.9$10.8817234110888201720182019202020212022Exitvalue($B)Exitcount9PitchBookAnalystNote:VCInvestmentinClimateTechnologySource:PitchBook•Geography:GlobalAsofDecember31,2022$0$2$4$6$8$1020172018201920202021$2.0$7.5$9.92022AngelandseedEarly-stageVCLate-stageVC$1.6$6.5$9.0MedianclimatetechVCdealvalue($M)bystageSource:PitchBook•Geography:GlobalAsofDecember31,2022$26.3$0$5$10$15$20$25$3020172018201920202021$26.02022Medianclimatetechventure-growthdealvalue($M)Source:PitchBook•Geography:GlobalAsofDecember31,2022$6.1$28.0$41.9$0$10$20$30$40$5020172018201920202021$8.1$29.7$39.72022AngelandseedEarly-stageVCLate-stageVCMedianclimatetechVCpre-moneyvaluation($M)bystageSource:PitchBook•Geography:GlobalAsofDecember31,2022$96.1$0$20$40$60$80$100$120$140$160$18020172018201920202021$172.72022Medianclimatetechventure-growthpre-moneyvaluation($M)10PitchBookAnalystNote:VCInvestmentinClimateTechnologyCompanyClosedateSegmentDealvalue($M)Leadinvestor(s)NewcleoJune10Dispatchableenergysources$318.6N/AJinpuNewEnergyDecember16Industry$36.8N/ABasquevoltJune10Gridinfrastructure$32.2BasqueGovernmentEVageJanuary14Electricvehicles$27.7RedBlueCapitalLiberationLabsDecember5Sustainablefoods$23.5Agronomics,SiddhiCapitalSustain.LifeDecember6Carbontech$19.0TapestryCurrentFoodsApril14Sustainablefoods$18.0ElectricFeelVentures,GreatPointVentures,UnionGroveVenturePartnersSolarbioSeptember1Industry$17.0N/AVibrantPlanetMay20Landuse$17.0TheEcosystemIntegrityFund,TheGranthamFoundationBeamUPMarch30Builtenvironment$15.0IbexInvestors,StageOneVenturesKeyclimatetechseeddealsin2022Source:PitchBook•Geography:GlobalAsofDecember31,2022CompanyClosedateSegmentDealvalue($M)Leadinvestor(s)REPTBATTEROAugust11Gridinfrastructure$805.8N/AREPTBATTEROJanuary30Gridinfrastructure$424.2N/AAVATRTechnologyAugust2Electricvehicles$377.8N/AGokinSolarAugust31Intermittentrenewableenergysources$369.8CICCCapitalPerpetualNextJune15Carbontech$340.1N/AVoltaTrucksNovember29Electricvehicles$295.3LuxorCapitalGroupHithiumOctober18Gridinfrastructure$280.5ABCISecurities,CCBTPrivateEquityH2GreenSteelOctober19Industry$254.2AMFPensionsförsäkring,AltorEquityPartners,GIC(Singapore),SchaefflerGokinSolarApril13Intermittentrenewableenergysources$251.3N/AVerkorNovember2Industry$245.9N/AKeyclimatetechearly-stageVCdealsin2022Source:PitchBook•Geography:GlobalAsofDecember31,202211PitchBookAnalystNote:VCInvestmentinClimateTechnologyKeyclimatetechlate-stageVCdealsin2022Source:PitchBook•Geography:GlobalAsofDecember31,2022CompanyClosedateSegmentDealvalue($M)Leadinvestor(s)TerraPowerNovember3Dispatchableenergysources$830.0BillGates,SKGroup,SKInnovationClimeworksApril26Carbontech$634.4GIC(Singapore),PartnersGroupFormEnergyOctober4Gridinfrastructure$450.0TPGVeevFebruary18Builtenvironment$400.0BONDCapital(SanFrancisco)HozonFebruary20Electricvehicles$314.5N/ATurntideJune15Electricvehicles$305.0N/AMonolithJuly14Cleanfuels$300.0DecarbonizationPartners,TPGMainspringSeptember21Gridinfrastructure$290.0LightrockInxeptionFebruary16Intermittentrenewableenergysources$275.0SchonfeldStrategicAdvisorsTAEJuly19Dispatchableenergysources$250.0ChevronTechnologyVentures,GoogleFoundationKeyclimatetechventure-growthdealsin2022Source:PitchBook•Geography:GlobalAsofDecember31,2022CompanyClosedateSegmentDealvalue($M)Leadinvestor(s)GACAionOctober20Electricvehicles$2,560.5ChinaStructuralReformFund,GoldStoneInvestment,GuangzhouGofar,PICCCapitalInvestmentManagement,ShenzhenCapitalGroup,SouthernPowerGridCapitalNorthvoltOctober27Industry$1,100.0N/AVitalThinFilmMaterialsSeptember28Industry$643.8CICCCapitalRimacAutomobiliJune1Electricvehicles$528.7SoftBankGroup,TheGoldmanSachsGroupCrusoeEnergySystemsApril20Carbontech$505.0G2VenturePartnersGACAionMarch18Electricvehicles$404.9N/AUPSIDEFoodsApril21Sustainablefoods$400.0AbuDhabiGrowthFund,TemasekHoldingsPalmettoFebruary8Intermittentrenewableenergysources$375.0SocialCapitalAscendElementsSeptember14Industry$300.0FifthWallMetagenomiDecember20Sustainablefoods$275.0CatalioCapitalManagement,FarallonCapitalManagement,LeapsbyBayer,Moderna,NovoHoldings,PFMHealthSciences,RevivalHealthcareCapital,SymBiosisCapitalManagement12PitchBookAnalystNote:VCInvestmentinClimateTechnologyCompanyClosedateSegmentExitvalue($M)Acquirers(s)EveHoldingMay10Electricvehicles$2,406.0ZaniteAcquisitionTritiumJanuary13Electricvehicles$1,530.0DecarbonizationPlusAcquisitionIIRubiconAugust15Industry$1,182.2FounderSPACEnergyVaultFebruary14Gridinfrastructure$950.0NovusCapitalIIShangtaiTechDecember28Gridinfrastructure$942.1N/ASunseapFebruary24Intermittentrenewableenergysources$695.7EDPRenováveisLixinEnergyJuly27Intermittentrenewableenergysources$351.6N/ABoomyIntelligentApril25Dispatchableenergysources$327.9N/ALhyfeMay23Cleanfuels$317.2AmundsenInvestmentManagement,CDCValeursdeCroissance,EDPRenováveis,Mitsui&CompanyCYNORAJune29Industry$300.0SamsungDisplayKeyclimatetechVCexitsin2022Source:PitchBook•Geography:GlobalAsofDecember31,2022InvestorDealcountSOSV128ClimateCapital90LowercarbonCapital78BlueHorizonCorporation67CPTCapital67PreludeVentures55BigIdeaVentures51UnovisAssetManagement51AlumniVentures51CollaborativeFund47TopVCinvestorsinclimatetechcompaniessince2017Source:PitchBook•Geography:GlobalAsofDecember31,2022CompanySegmentVCraisedtodate($M)NorthvoltIndustry$5,510.0GenerateCarbontech$4,132.7SVOLTGridinfrastructure$3,231.3GACAionLow-carbonmobility$2,965.4WeltmeisterLow-carbonmobility$2,749.6HozonLow-carbonmobility$2,255.7CommonwealthFusionSystemsDispatchableenergysources$1,999.0ImpossibleFoodsSustainablefoods$1,862.5REPTBATTEROGridinfrastructure$1,754.6AIWAYSLow-carbonmobility$1,519.8TopVC-backedclimatetechcompaniesbytotalVCraisedtodateSource:PitchBook•Geography:GlobalAsofDecember31,202213PitchBookAnalystNote:VCInvestmentinClimateTechnologyInfluencingfactorsforclimatetechOneofthemostsignificantinfluencingfactorsintheclimatetechspaceisregulationandpolicy.Ingeneral,low-carbonapproachestendtoincurafinancialpremium,andwhilesomeadoptioniscausedbygrowingconsumerandshareholderinterest,regulatoryandpolicysupportisneededforwidespreadchangeonthetimescalesrequired.Thissupportcantakeseveralforms,includingcompliance.AkeyexampleistheEUEmissionsTradingSystem,whichsetsanannuallydecreasingcaponcarbonemissionsandbothallocatesandauctionscarboncreditstoentitiesincarbon-emittingindustries.Companiescantradethesecreditseitherbysellingexcesscreditstheyholdiftheyareabletolowertheircarbonemissionsbelowathreshold,orbybuyingcreditsfromothermarketparticipantsiftheiremissionsexceedtheirheldcredits.Thissystemhasadvantagesinthatitallowsforabroadsetofclimatetechnologies,focusingontheoutcomesratherthanonspecifictechnologies.ThereisalsoamorecertaincapontotalCO2emissions.Thisoverallemissionscapisveryusefulfromtheperspectiveofcarbonreductionstargetsandsimplifiestheprocessoftrackingprogress.Outsideofcompliance-basedsupportforclimatetechnologies,theUShasimplementedsignificantsupportintheformoffederalincentivesforabroadrangeofclimatetechnologies.Thisisamorecostlyapproachrelativetocompliance-basedapproaches,buttheopen-endedsupportcanresultinmorerapidadoptionofcarbon-reductiontechnologiesandfastermaturationofproductioncapabilities.Investorpressureisalsoakeyfactorintheadoptionofclimatetech,asinvestorsareincreasinglypushingcompaniestoreporttheiremissions,setemissionstargets,andputemissionsreductionplansinplace.Cross-sectorclimatetechtrendsThebreadthoftheclimatetechspacemeansthatsometechnologieshaveapplicationsacrossmultipleareas.Carbonremovaltechnologies,forexample,canbeappliedtoenergygeneration,transport,industrialprocesses,andhydrogenproductionandcanalsobeusedasthebasisforcarboncredits.Lithium-ionbatteriesElectrificationhasbeenacoreelementofdecarbonizationefforts,allowingforthereplacementofhigh-emissionshardwarethatisbasedonfossilfuels.Thoughmultiplebatterychemistriesareviablefordecarbonization,li-ionbatterieshavethebroadestapplicabilityduetotheirhighenergydensityandproductionmaturityrelativetootherbatterychemistries.ThisapplicabilityincludesuseinEVs;inutility-scaleenergystoragesystems;andinsmallerstationaryinstallationsforresidentialandcommercialuse,suchasforprovidingbackuppower,reducingelectricitycosts,andallowingbetterutilizationofdistributedenergysources.StartupssuchasSVOLTandFactorialfocusonseveralusecases,includingbothEVbatteriesandstationaryenergystorage.14PitchBookAnalystNote:VCInvestmentinClimateTechnologyEVapplicationshavehigherbatteryperformancerequirementsthanstationaryenergystoragebecausebatterycapacitydeterminesanEV’srange.AsEVsarechargedandused,batteryperformancedegrades,eventuallynecessitatingbatteryreplacement.Whenthishappens,theoldbatteriescanberepurposedforstationaryenergystorage,wheretheirlowerperformancecanbeoffsetthroughlargerinstallationsbecausesizeandweightarelesscriticalforstationaryuse.StartupsusingthisapproachincludeConnectedEnergyandECOSTOR,whichbothusesecond-lifeBEVbatteriesforstationaryapplications.Suchreuseprovidesanalternativetoimmediaterecyclingandreducestheoveralldemandforrawmaterialsforli-ionbatteries,thoughbatteryrecyclingisalsoviableforthis—manyofthelargerli-ionbatteryproducersalsooperatein-houserecyclingcapabilities.CarbonoffsetprojectsThevoluntarycarbonmarket(VCM)hasbeenundergrowingscrutinyfollowingrevelationsthatsomecreditsproducedbythelargelyunregulatedcarbonoffsetindustrymaynotaccuratelyreflectthecarbonreductiontheyclaim.ThisdiscrepancycanoccurforseveralreasonsandhasaffectedevensomeofthelargestVCMparticipants.2Earlierin2023,anindependentgovernancebodyfortheVCMissuedstandardsaimingtobringtransparencytocarboncredits.3Acommonsetofstandardswouldbringincreasedconfidenceincarbonoffsets—afactorthathasbeencriticaltotheiradoption—thoughitremainstobeseenwhethertheindustrywillfullyembracetheseparticularstandards.Theunderlyingprojectbehindacarbonoffsetisakeyfactorinthemeasurementandverificationofitsquality.Projectsbasedoncarbonremovals—approachesinwhichcarbonisremovedfromexhaustgasesortheatmosphereandthenstoredorutilized—aresometimesconsideredseparatefromothercarbonoffsetsinthattheirmeasurement,reporting,andverificationareverystraightforward,allowingpurchaserstousethemwithhighconfidenceinthecarbonreductionthattheyrepresent.Theadditionalityofcarbonremovalsinvolvingdirectaircaptureissimpletoverify,4astheyareprojectsfocusedonlyonremovingcarbon,unlikecleanenergyorconservationprojects,whichmaybringotherbenefits.Thepermanenceofcarbonremovaloffsetsisalsosimplertoverify,asthecapturedcarboncanbelockedawayinlocationsthatareextremelyunlikelytore-emitstoredcarbon,unlikeecosystem-basedapproachesthatcanre-emitcarbonthroughnaturaldisasterssuchaswildfires.However,carbonremovaloffsetsfacethedownsidethattheytendtobemorecostlytopurchasepertonofcarbontheyrepresent.Othercarbonoffsetscanhavesignificantlylowercoststhancarbonremovalsandcanstillbehighquality,thoughverifyingthisqualitytendstobemorechallenging.Theunderlyingprojectsfortheseoffsetscanbehighlyvaried.Forest-basedapproachesarecommon,oftenfocusingonforestprotectionindevelopingcountriesoronreforestation.VC-backedcompaniessuchasMOSSandOpenForestProtocolsometimesfocusspecificallyonforestprojects.Protectingforestsfromdegradationbringssomechallenges,though,asitcanbedifficulttoshowthatthereisno“leakage”:whenprotectinganareaofforestsimplymovesforestdegradationelsewhereratherthanpreventingit.2:“CEOofBiggestCarbonCreditCertifiertoResignAfterClaimsOffsetsWorthless,”TheGuardian,PatrickGreenfield,May23,2023.3:“GlobalInitiativeOutlinesCriteriaforCarbonOffsets,”Reuters,SusannaTwidale,March30,2023.4:Additionalityistherequirementthattheoffsetrepresentsactionthatotherwisewouldnothaveoccurred.15PitchBookAnalystNote:VCInvestmentinClimateTechnologyAgriculture-focusedcarbonoffsetsarealsoincreasinginpopularity,providingfarmerswithmeanstogenerateadditionalincomefromtheirlandbyalteringtheirfarmingpracticestomaximizethecarbonretentionofthesoil.Insomecases,thiscaninvolveincorporatingbiocharintosoils,linkingcarbonoffsetstowastebiomassutilization,andbiologicalcarbonremovalprojects,butthiscanalsobeachievedthroughregenerativeagriculturalapproachessuchasno-tillfarmingandcroprotation.StartupslikeAgrologyprovidecapabilitiestomeasuresoilcarbon,whichiscriticaltothemonitoring,reporting,andverificationofagriculture-basedoffsets.EVchargingintegrationThetransportsectorhasreliedpredominantlyonfossilfuels,androadtransportisoneoftheeasiestcomponentsoftransportationtodecarbonizethroughtheuseofEVs.EVsarepopularwithconsumersandareseeingsignificantgrowth.14%ofnewcarssoldin2022wereEVs.5AsthenumberofhouseholdsthathaveEVsincreases,sodoesthemarketforresidentialEV-relatedinfrastructure.Weareseeingthismanifestthroughtheintegrationofvehicle-chargingcapabilitiesintosmarthomeandbuildingfunctionality.Smarthomeandbuildingfunctionalityinvolvesconnectingdevicesinbuildingstoacentralhubthatcananalyzeandoftenmanageenergyuse.6Italsoprovidesameansforhomeandcommercialpropertyownerstoreduceenergyconsumption.Thesesystemsreduceelectricityuseduringtimesofpeakelectricitypricesandreduceunnecessarydeviceusage.Thislowerselectricitybills,andsmarthomesystemsalsooftenintegratedistributedenergygenerationandstorage,expandingtheircapacitytooptimizeenergyusage.IntegratingsolarpanelsintohomesalsoprovidesanopportunityforEVownerstousesolarchargingtofurtherreducecostsandcarbonemissionsbeyondthestandardbenefitsofEVs.Residentialenergytechnologyproviderslike1Komma5°offersolarenergygenerationhardware,plusenergystorage,chargingcapabilities,andheatpumps,whichareallmanagedusinganenergymanagementsystem.Chargingcapabilitiesareprovidedthroughawallbox,whichisofferedasanoptionalfeaturethatclientscanchoosetoaddiftheyownanEV.Enpalissimilarinthisregard:Itusesarentalmodeltoprovideresidentialsolartechnologyandincludestheoptiontoaddenergy-efficientheating,energystorage,andBEVchargingmodules.Outsideofsmartbuildingtechnologies,somestartups—includingFermataEnergyandDcbel—areutilizingbidirectionalchargingtoallowconnectedvehiclestobeusedasvirtualpowerplantswhenneeded,providingenergytoeasestrainonpowergrids.7COPYRIGHT©2023byPitchBookData,Inc.Allrightsreserved.Nopartofthispublicationmaybereproducedinanyformorbyanymeans—graphic,electronic,ormechanical,includingphotocopying,recording,taping,andinformationstorageandretrievalsystems—withouttheexpresswrittenpermissionofPitchBookData,Inc.Contentsarebasedoninformationfromsourcesbelievedtobereliable,butaccuracyandcompletenesscannotbeguaranteed.Nothinghereinshouldbeconstruedasinvestmentadvice,apast,currentorfuturerecommendationtobuyorsellanysecurityoranoffertosell,orasolicitationofanoffertobuyanysecurity.Thismaterialdoesnotpurporttocontainalloftheinformationthataprospectiveinvestormaywishtoconsiderandisnottoberelieduponassuchorusedinsubstitutionfortheexerciseofindependentjudgment.5:“GlobalEVOutlook2023,”IEA,April2023.6:Asidefromclimateandenergyimplications,manysmartbuildingsystemscanalsoprovideanimprovedresidentexperiencebyactingasacontrolhubforlighting,sound,security,andHVAC.7:BidirectionalchargingallowscharginginfrastructuretodrawenergyfromtheBEV’sbatteryratherthanjustchargeit.
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