⚡ Europe Drives Corporate Clean Power Purchases + Europe Climate Tech 200

Happy Monday 👋

Corporations increased their clean energy purchases in 2023 to reach a record of 46GW of solar and wind contracts in 2023, representing a 12% increase from 2022. This week, we also spotlight the 2023 Europe Climate Tech 200, highlighting the region's most promising startups in the climate technology sector.

This Week's Topics

• 📊 Charts Spotlight. EMEA drove the record increase in clean energy offtake agreements
• 📈 Coal Index. Coal stock index increases 40%
• 🏆 Europe Climate Tech 200. $511M of fundraising in 2024 to date
• 📊 Annual Climate Tech Outlook. 230+ pages of trends, insights, and data
• 💰 Climate Tech Deals of the Week. Funding and M&A

Don't forget to check out the 2024 Global Climate Tech Outlook, and sign up for our daily newsletters, Chart of the Day, and Impact Capital Markets. For unlimited access to over one million charts, request a demo.

📊 Charts Spotlight - EMEA Drove The Record Increase In Clean Energy Offtake Agreements

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Driven by the accelerated transition to renewable sources, corporations worldwide are purchasing more clean energy via offtake agreements. Disclosed offtake agreements in 2023 reached a record of 46GW, a 12% year-on-year increase from the 41GW seen in 2022. While US corporations lead in cumulative power purchases, the record PPAs were primarily driven in 2023 by EMEA, which witnessed a 75% increase from 2022, reaching 15.4GW. Europe's rebound from economic and political conflicts, coupled with increasing legislative efforts mandating the clean energy push, were the main drivers underpinning this growth and are instrumental in driving growth in 2024 as well. Spain, Germany, the UK, and the Netherlands accounted for the majority of the PPAs signed in 2023.

For the fourth consecutive year, Amazon retained the top spot as the world's largest purchaser of clean energy, with a record addition of 8.8GW of power purchase agreements (PPA) across 25+ countries. Their clean energy portfolio currently stands at approximately 35GW. For comparison, the entire African region's installed capacity is approximately 60GW. Tech companies have been prolific buyers of clean energy as companies like Amazon, Meta, and Alphabet are very energy-intensive companies due to cloud computing, AI, and data centers.

📈 Capital Markets - Coal Stock Index

HolonIQ tracks thousands of listed climate tech companies worldwide, along with acquisitions and investment transactions. Soon, we will launch a range of stock indices to track the daily performance of over 10 different sectors across Climate Technology.

Our Impact Capital Markets newsletter tracks over 60 impact stock indices, including climate tech, emerging economies, and over 50 indices tracking healthcare innovation and education technology. Subscribe to Impact Capital Markets for data-driven insights on capital powering impact.

While there is a global shift towards renewable energy, developed countries are generally ahead of developing countries in this transition. Financial constraints have hindered the rapid adoption of renewable energy in emerging economies, which continue to drive the majority of coal demand. This trend is evident in the 40% increase observed in HolonIQ’s Coal Index over the past year. The Indian government has also underscored this trend, stating that it will continue to secure more fossil fuel reserves due to their affordability and availability.

Changes in rain patterns and seasonality have affected hydropower generation and power purchase planning in Asia. Severe droughts haven't helped, and this has led to additional reliance on coal as an alternative power source, offsetting declines in demand from Europe and North America. China, which is leads renewable capacity installations, also maintains over 50% of coal demand, shaping the outlook of the coal industry. The International Energy Agency anticipates that the significant growth of renewable energy capacity in the coming years will decrease global coal demand, including in China, by 2026, even without governments enforcing stronger clean energy and climate policies.

🏆 Europe Climate Tech 200

The Europe Climate Tech 200 is HolonIQ’s annual list of the most promising startups working in clean energy, zero-emission mobility, and sustainability.

Europe's top climate tech startups raised more than $5B worth of funds in 2023, with battery energy storage and solar start-ups accounting for most of the funding. In 2024, these companies have raised approximately $500M so far to expand into new markets and to increase production and scalability. Electra, a French fast-charging company for electric vehicles, raised $333M in January to expand its fleet of fast-charging stations across Europe. Instagrid, a manufacturer of portable battery storage solutions, raised a $95M Series C at the beginning of the year. The new funds are to be utilized to finance their expansion into North America.

📊 2024 Global Climate Tech Outlook

HolonIQ's annual analysis of the evolving climate economy offers over 230 pages of in-depth insights on market data, investments, strategic shifts, and trends in energy, environment, infrastructure, and mobility. Download the extract or purchase the full report.

💰 Climate Tech Deals of the Week

HolonIQ actively monitors and tracks deals in the Climate Tech landscape, spanning across all regions of the world. Subscribe to our Daily Capital Markets newsletter to peruse the top deals for each day.

Funding

☀️ Enpal, a German green tech unicorn in the solar and heat pump sectors, raised $1.2B in debt commitments. The funding is to be used to accelerate the rollout of its comprehensive home energy offering.

💡 Sealed, a New York-based residential energy efficiency startup, raised $30M from Keyframe Capital to expand operations.

🌱 Locus Fermentation Solutions, an Ohio-based green tech company that produces biological alternatives to chemicals, raised $30M to scale its operations.

🌳 Novocarbo, a German carbon removal company, raised $27M from SWEN Capital Partners to expand its network of carbon removal parks in Europe.

⛴️ Candela, a Swedish maritime transportation provider, raised $26.6M from Groupe Beneteau to expand its sales team and develop its technology.

📦 Ingrid, a Swedish sustainable e-commerce delivery service, raised a $23M Series A from Verdane & Schibsted to expand operations across Nordic markets.

🐟 Poseidon Ocean Systems, a Canadian aquaculture engineering and technology provider, raised a $20.7M Series B from the Ecosystem Integrity Fund to expand manufacturing capacity.

M&A

🌿 TotalEnergies, a French energy and petroleum company, acquired Talos Low Carbon Solutions, a Texas-based carbon capture and storage (CCS) business.

Thank you for reading. Have a great week ahead!
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