♨️ Kenya Leads Geothermal Energy + North America Climate Tech 200

Happy Monday 👋

Geothermal Energy, harnessed from natural heat radiating from the planet's core, increased by 208MW in 2023 to reach 15GW in installed capacity. This week, we spotlight the 2023 North America Climate Tech 200, which highlights the region's most promising startups in the climate technology sector.

This Week's Topics

• ♨️ Geothermal Energy. Mapping 100+ global players across core categories
• 📊 Charts Spotlight. Kenya led the world in newly installed geothermal capacity in 2022
• 📈 China Renewable Energy Stock Index. China's renewable energy index is down 35%
• 🏆 North America Climate Tech 200. $1.2B 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 State of Women's Leadership, published earlier this month, to find deep benchmarks on Women Leaders in Climate Tech, EdTech, HealthTech, and more.

Sign up for our new Daily Newsletters, Chart of the Day and Impact Capital Markets. For unlimited access to over one million charts, request a demo.

♨️ Geothermal Energy Landscape

Geothermal Energy refers to extracting the natural heat that radiates from the core of our planet. This heat source is extracted as hot water or steam, which is then used to spin the turbines that connect to generators, producing clean energy. It is one of the oldest forms of clean energy harnessed by humans, but high set-up costs and difficulty in finding optimal locations have led to low adoption compared to other renewable sources. Despite adding roughly 200MW in 2023, the total installed capacity of geothermal energy remains around 15GW globally. The United States generates the most geothermal electricity in the world—more than 3.7GW, enough to power about 2.7 million U.S. homes. However, statistically, this amounts to 0.4% of total U.S. utility-scale electricity generation. Indonesia, the Philippines, and Turkey are among a few other major users.

Geothermal energy has recently seen a resurgence, driven in part by the growing popularity of geothermal heat pumps (GHPs). GHPs, also known as ground-source heat pumps, are heating and cooling systems that utilize the earth's consistent underground heat to regulate indoor temperatures. These systems transfer heat between the ground and a building, providing both heating in the winter and cooling in the summer. While the geothermal sector has seen an average growth rate of 3.5% since 2000, geothermal heating and cooling applications grew faster, by around 9% between 2015 and 2020. GHPs account for about 3% of the global installed renewable heating and cooling capacity.

♨️ Geothermal Energy - Market Map

📊 Charts Spotlight - Kenya Led the World in Newly Installed Geothermal Capacity in 2022

Subscribe to the HolonIQ newsletter 'Chart of the Day', a daily newsletter that helps explain the global impact of the economy, from climate tech to education and healthcare.

While the US leads the world in cumulative installed capacity of geothermal power, Kenya led new capacity additions in 2022. Kenya tops the African region in terms of renewable energy generation, with 86% of its electricity generated by clean sources like geothermal, hydro, solar, and wind. Through significant investments over the last 3 years, Kenya now ranks 7th globally in geothermal energy production, with a capacity of over 960 MW. Taking advantage of the abundance of geothermal energy available across the nation is one of these strategies, along with favorable energy policies and incentives.

📈 Capital Markets - China Renewable Energy 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.

HolonIQ's China Renewable Energy Index has experienced a notable decline, dropping over 35% in the past year. Prominent stocks within the index, including LONGi Green Energy Technology ($22B MCap) and China Three Gorges Renewables (Group) ($19B MCap) have also significantly declined.

China led global renewable energy expansion in 2023, doubling solar capacity and increasing wind power by 66%, but renewable energy stocks have seen decreases. Macroeconomic challenges, including rising interest rates, reduced tax credits, and project delays, have increased costs and dampened profitability. Uncertainties in government projects and policies haven't done any favors for investor sentiment either. An anticipated increase in demand suggests a potential revival in 2024, which may present investors with promising early-stage opportunities but the outlook for the sector's recovery remains cautiously optimistic.

🏆 North America Climate Tech 200

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

Coming into 2024, a few companies in our North America 200 were successful in raising further funds to expand their offerings. Geothermal energy startup Fervo Energy raised $221M in February. Fervo, an enhanced geothermal start-up, uses directional drilling techniques pioneered by the oil and gas industry to extend its wells far beyond their surface footprints. US-based zero-emissions industrial heat and power solution provider Antora Energy raised $150M in Series B intending to use the proceeds to support the acceleration of the production of its thermal batteries to decarbonize industrial facilities.

📊 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

🚗 Applied Intuition, a California-based autonomous vehicle software supplier, raised a $250M Series E to invest in generative AI.

🌍 CarbonCapture, a California-based climate tech company, raised a $80M Series A from Prime Movers Lab for technology development.

🤖 Bear Robotics, a California-based manufacturer of self-driving robots, raised a $60M Series C from LG Electronics to accelerate into new territories such as smart warehousing and supply chain automation.

☀️ Holu Hou Energy, a Hawaiian solar energy storage company, raised $35M from Irradiant Partners to support Hawaii's largest solar and energy storage project pipeline.

♨️ Quaise Energy, a Massachusetts-based terawatt-scale geothermal company, raised a $21M Series A from Prelude Ventures & Safar Partners to strengthen its supply chain position.

🛴 VOI Technology, a Swedish micro-mobility company, raised $25M to scale its fleet of e-scooters and e-bikes.

💼 M&A

📷 Teledyne Technologies Incorporated, a US-based provider of sophisticated digital imaging products, announced that it has agreed to acquire Valeport Holdings Limited, a UK manufacturer of underwater sensors.

💡 Hillmann Consulting, a New Jersey-based environmental services company, acquired Abraxas Energy Consulting, a California-based energy efficiency solutions provider.

🌲 True Environmental, a New York-based environmental services firm, acquired Sundance Consulting, an Idaho-based full-service environmental consulting firm.

Thank you for reading. Have a great week ahead!
Have some feedback or want to sponsor this newsletter? Let us know at hello@holoniq.com