The oil and gas sector are buzzing with activity as equity deals gain momentum. This is because this year has witnessed a good volume of investments, underscoring a vibrant market keen to drive energy innovation and navigate the shifting trends. From major acquisitions to key partnerships, these deals are influencing the future direction of the energy industry.

Deal Activity Sees Slight Uptick with Focus on Sustainability

According to S&P Global, in the recent quarter, the oil and gas industry recorded 85 whole-company and minority-stake deals, totaling $43.93 billion. This represents a modest increase from the same period in 2023, which saw 81 deals valued at $43.82 billion.

source: S&P Global

The growing deal activity highlights a trend toward integrating environmental sustainability into the industry’s investment strategies.

READ MORE: Top 3 US Renewable Energy Deals Q2-2024: Trends and Analysis

Q2 2024’s Top 5 Oil and Gas Tech Equity Deals: CB Insights Snapshot

The following companies have topped the list released by CB Insights this year.

1. HIF Global Secures $164 Million Investment for eFuels Projects

Highly Innovative Fuels (HIF) Global, the electrofuel giant secured a $164 million investment this May to fund its eFuels projects from its existing shareholders and a new partner, Japanese energy company Idemitsu Kosan. Total funding goes to $424 million.

Cesar Norton, President & CEO of HIF Global, expressed enthusiasm about the partnership, stating,

“We are excited to welcome Idemitsu as a new partner in our mission to power the world with renewable energy. This collaboration goes beyond financial support; it symbolizes our shared commitment to a greener future. We’re grateful to our shareholders for their continued support as we develop eFuels facilities globally that could recycle 25 million metric tons of CO2, equivalent to the emissions of over 5 million cars.”

Susumu Nibuya, Executive Vice President, and COO of Idemitsu Kosan mentioned that Idemitsu is concentrating on e-methanol, blue ammonia, and sustainable aviation fuel (SAF) to achieve carbon neutrality by 2050.

This investment marks the first step in a broader four-part collaboration, which includes financial backing, eFuels purchase agreements, market development in Japan, and establishing CO2 supply chains.

2. ICEYE Secures $136M in Series D Funding Round

ICEYE Ltd. is a Finnish company and a spin-off from Aalto University’s Radio Technology Department makes microsatellites. Precisely it is a leader in synthetic aperture radar (SAR) satellite technology. This April, it secured $93M in growth funding to expand its SAR satellite constellation and product offerings.

This oversubscribed round builds on the company’s February 2022 Series D, bringing total funding to $438M. ICEYE experienced strong growth in 2023, ending the year with over $100M in revenue. The new funding will drive the next phase of expansion, focusing on:

Increasing demand for its Missions business, with growing interest from governments for defense and civil applications using next-gen SAR satellites.
Expanding SAR data services to offer innovative products for tracking Earth’s changes, day, or night, in any weather.
Accelerating growth in its Solutions offerings, with significant investment in Flood Insights, Wildfire Insights, and future peril-based analysis for government and commercial use.

CEO Rafal Modrzewski emphasized the support from new investor Solidium, highlighting trust in ICEYE’s mission to lead the global SAR market. The company’s achievements and clear targets intensified investors’ faith. Notably, the deal was facilitated by Citigroup.

READ MORE: Oxford University Spinoff Reveals Synthetic Fuel Plant That Could Revolutionize Aviation 

3. Aether Fuels Raises $34M to Revolutionize Sustainable Aviation and Shipping

Aether Fuels, a leader in climate technology, secured $34 million in Series A funding from a global group of investors. AP Ventures led the round, joined by Chevron Technology Ventures, CDP Venture Capital, and Zeon Ventures. Previous investors, including Xora Innovation, TechEnergy Ventures, Doral Energy-Tech Ventures, Foothill Ventures, and JetBlue Ventures, also participated.

With this funding, Aether aims to speed up the development of Aether Aurora, its advanced technology for producing sustainable aviation and shipping fuels.

The press release further highlighted that Aether Aurora with its partner GTI Energy will use Fischer-Tropsch’s advanced process to boost fuel production and make it cost effective. This flexible technology can turn different types of waste carbon into jet fuel and other liquid fuels, solving supply issues that other sustainable aviation fuel methods face.

Aether Aurora’s unique ability to create sustainable fuels from any feedstock:

source: Aether

Significantly, Aether will also use the new funding to expand its R&D and plant capacity in the U.S. and Southeast Asia for SAF and other liquid fuels in partnership with strategic allies.

4. SENCO Invests in Strohm with $32M Equity Surge in Thermoplastic Pipeline Innovation

This year, on June 19, SENCO Hydrogen Capital, a private equity firm known for its focus on hydrogen and energy transition investments, announced a significant $32 million (€20 million) equity investment in Strohm, a Dutch company renowned for its innovative pipeline technology, which they call it Thermoplastic Composite Pipelines (TCPS).

The funding aims to boost Strohm’s growth, particularly in hydrogen and carbon capture utilization and storage (CCUS). This partnership is also focused on reducing the carbon footprint of pipeline infrastructure, aiming for a more sustainable energy future.

Martin van Onna, CEO of Strohm says,

“Strohm is a pioneer in the development of TCP and has set itself the goal of significantly reducing CO2 emissions in the pipeline infrastructure sector. “The partnership with SENCO enables us to further scale our technologies and continue our successful expansion, especially in the field of energy transformation around hydrogen and CCUS”

This deal is part of a broader €30 million capital increase in Strohm, with existing shareholders like Chevron Technology Ventures, Shell Ventures, and Evonik Venture Capital also participating. Together, these companies are advancing innovative technologies that support low-carbon energy solutions.

5. LiveEO Raises $27 Million to Revolutionize Climate Risk Management

This June, LiveEO, a leader in transforming satellite data into actionable insights, has raised $27 million (€25 million) in a Series B funding round led by NordicNinja and DeepTech & Climate Fonds (DTCF). This investment will accelerate the development of LiveEO’s AI-driven solutions and expand its team.

NordicNinja is the largest Japanese-backed VC in Europe, and it is focused on deep tech, climate tech, and digital society solutions. DTCF is financed by the German Future Fund.

LiveEO turns raw satellite data into insights that help businesses manage climate risks and improve resilience. The platform is trusted by major companies like Deutsche Bahn and Network Rail to monitor and protect assets. The new funding will further enhance LiveEO’s mission to make industries more sustainable while addressing climate challenges.

Daniel Seidel, co-founder, and co-CEO of LiveEO, elaborated on the company’s mission to leverage satellite data for planetary protection and industrial sustainability. He noted that the new funding will accelerate this mission, helping businesses worldwide navigate climate, environmental, technological, and regulatory challenges.

MUST READ: The Top 4 Venture Capital Climate Companies: How Are They Shaping the Green Future? 

However, CB Insights had a complete list of companies that secured good investments and contributed to a fruitful quarter this year.

Global Funding & Deals: Regional Insights

As we can see from the image Europe dominating the space in Q2 2024, with 9 massive deals totaling to $0.2 billion followed by Latin America.

The strategic investments made this year clearly outlines a bright future for the oil and gas industry. As sustainability gains traction across various industries, the significant advancements in natural energy resources and technology will undoubtedly reduce carbon emissions and create a greener world.

FURTHER READING: ExxonMobil Q2 Highlights Stellar Profits and Reduced Emissions

The post Oil and Gas Sector Sizzles: Top 5 Equity Deals of Q2 2024 appeared first on Carbon Credits.

As the global demand for cleaner technologies rises, nickel’s role becomes increasingly vital. However, the market remains volatile, influenced by geopolitical strategies, supply chain dynamics, and fluctuating prices. Understanding these forces is key to navigating nickel’s future in a rapidly changing energy landscape.

In August 2024, the London Metal Exchange (LME) three-month nickel price surged to a six-week high of $17,035 per metric ton by August 20, according to S&P Global data. This rise was primarily driven by short covering from speculators who responded to better-than-expected U.S. economic data. 

Short Covering Sparks Price Surge: A Temporary High?

The improved economic outlook eased fears of an impending U.S. recession, thereby encouraging investors to close their short positions in nickel. Despite this temporary boost, the price retreated to $16,603 per metric ton by August 22 due to an increase in LME nickel stocks.

LME nickel inventories saw a significant increase, climbing from 109,950 metric tons at the end of July to 116,616 metric tons by August 22. This 81.8% increase in 2024 reflects a substantial rise in available stock, contributing to the subsequent price decline. 

In July, the LME recorded its largest monthly increase in open tonnage for the year, with a 12,942 metric ton rise. This boost was attributed to higher refined class 1 nickel inflows from China, pushing China’s share of LME nickel open tonnage from 27.8% in June to 35.2% in July. 

This increase in Chinese stock was notably due to refined nickel from Indonesia entering the LME system for the first time, following the approval of Indonesia’s first nickel brand, DX-zwdx, by the LME in May 2024.

SEE MORE: Nickel Market in Turmoil: BHP to Halt Operations Due to Price Plunge

China’s Nickel Influx and Indonesia’s Strategic Moves 

Indonesia, a major player in the nickel market, is actively working to reduce Chinese ownership in new nickel projects. The Asian country’s goal is to qualify for tax credits under the U.S. Inflation Reduction Act of 2022. 

The Act offers a $7,500 tax credit for electric vehicles, but companies with at least 25% ownership by a “covered nation,” including China, are ineligible. This regulation has prompted Indonesia to seek new investment structures, with China-based companies potentially being limited to minority stakes.

The Indonesian government’s efforts also reflect its broader strategy to diversify its investments and appeal to other foreign investors. However, significant barriers remain. Reports indicate that major European companies, such as BASF and Eramet, have decided against investing in Indonesian nickel projects due to concerns over environmental, social, and governance (ESG) issues. Additionally, Indonesia’s recent policy shifts, including a proposed moratorium on new nickel pig iron plants, could further deter non-Chinese investment.

The rapid growth of Indonesia’s nickel industry has caused an oversupply in the market, leading to a significant decline in prices from the peaks seen in 2022 and 2023. This surplus has put downward pressure on nickel prices as supply outstrips demand, affecting the broader market dynamics.

Why 2024’s Nickel Prices May Stay Low Despite the Hype

Looking ahead, despite potential short-term gains from a possible U.S. interest rate cut in September, the nickel market’s overall outlook remains subdued. The prevailing weak fundamentals in the global primary nickel market suggest that current price gains may not be sustainable. 

The S&P Global Commodity Insights has maintained its 2024 forecast for the average LME three-month nickel price at $17,083 per metric ton. This forecast represents a 21.2% decline from the 2023 average price, reflecting ongoing challenges in the market.

In terms of investment trends and market projections, China’s dominance in Indonesia’s nickel sector is expected to continue. The S&P Global data below shows that the combined share of Indonesia and China in global primary nickel production could increase from 69.6% in 2023 to 77.5% by 2028. 

This marks a significant rise from their 49.8% share in 2019, prior to the implementation of Indonesia’s nickel ore export ban. The continuing influence of Chinese investments underscores the strategic importance of Indonesia in the global nickel supply chain.

The nickel market is currently experiencing a short-term slump due to oversupply, with prices expected to remain low throughout 2024. Analysts at S&P Global Commodity Insights predict that primary nickel stocks will reach a four-year high, limiting any significant price recovery this year. 

However, the long-term outlook is more positive, driven by growing demand from the electric vehicle and renewable energy sectors. Despite the current challenges, nickel’s critical role in the energy transition suggests that demand and prices will strengthen in the future.

READ MORE: Is Nickel Up for the Clean Energy Boom With Plunging Prices?

The post Nickel’s Wild Ride: Market Surges, Supply Gluts, and the Global Power Play appeared first on Carbon Credits.

On September 3, NVIDIA faced a shocking $279 billion market cap loss in a single trading day. As concerns over artificial intelligence growth mounted and fears of a U.S. antitrust probe emerged, the chip maker’s stock plummeted by 9.5%. This marked the biggest single-day value loss for a U.S. company in history. While Nvidia’s position as a market leader remains intact, the massive sell-off has prompted deeper questions about AI’s future and stock market volatility.

Inside the Shocking Drop in Nvidia’s Stock Value

NVIDIA’s fall wasn’t just a random market fluctuation, rather it was driven by several key events. Analysts issued warnings that the AI boom might be overstated, sparking fears that its recent stock surge was unsustainable.

Additionally, Bloomberg highlighted the U.S. Department of Justice’s antitrust investigation fueled further concern, leading investors to sell off shares. It also explained that the DOJ probe is still in its early stages, and no formal complaint has been filed yet. The agency is investigating whether Nvidia creates barriers that make it more difficult for customers to switch to other AI chip suppliers.

Bloomberg has thrown light on another reason. Well, the broader market sentiment also played a role in the massive share plummet. Economic uncertainty in China, sluggish U.S. manufacturing data, and inflation worries contributed to a risk-averse environment. Investors, already cautious, were quick to react to the company’s potential regulatory challenges.

MOST RECENT: NVIDIA Crushes Q2 and Cuts Emissions but Shares Still Slide 

AI Rise and Returns, What Investors Are Talking About?  

This dramatic decline has sparked considerable skepticism around AI. We discovered from media reports that leading financial analysts like JPMorgan and BlackRock suggest that the AI hype may have reached its peak. It’s a paradox because even though the tech giants survive on AI, they fear real returns from AI investment could take years.

This reality check has forced investors to reevaluate the lofty valuations that have driven tech stocks to near-record levels. Nvidia’s recent earnings report, which failed to meet sky-high expectations, only added to the sense that AI may not deliver quick profits.

However, the stock market is a fickle place, and this record-breaking fall has left a lasting impact. As AI develops, it’s clear that companies like Nvidia will face growing scrutiny, both from investors and regulators.

READ MORE: Wired for Change: AI, Energy, and the Decarbonization Dilemma

Despite Dwindling Shares, AI and Data Centers are the Silver Lining

Despite the massive sell-off, Nvidia’s leadership remains optimistic about the company’s future. CEO Jensen Huang reassured investors that Nvidia’s core strengths in AI and GPU technology will continue to drive growth. Huang pointed to Nvidia’s strategic partnerships and product innovations as evidence that the company is well-prepared to bounce back.

Betting on energy efficiency

From an NVIDIA blog, we discovered its newly introduced CUDA-powered accelerated computing is transforming industries by drastically reducing energy use while boosting performance. By migrating from traditional CPUs to energy-efficient GPUs, companies are seeing up to 66x faster processing speeds and massive energy savings. This shift is particularly important for data-heavy tasks like AI, 6G research, and scientific computing.

The benefits extend beyond speed. NVIDIA estimates that if all AI, high-performance computing (HPC), and data analytics workloads switched to GPUs, data centers could save up to 40 terawatt-hours of energy annually. That’s equivalent to the energy used by 5 million U.S. homes each year.

Source: NVIDIA

The blog has given utmost significance to the sustainability factor that these GPUs are promising.  They explain GPU acceleration offers around 20x more energy efficiency than CPUs. It achieves this by finishing tasks faster and entering a low-power state, thereby cutting total energy use while maintaining top performance.

Source: NVIDIA

For instance,

“The NVIDIA GB200 Grace Blackwell Superchip is estimated to offer 25X better energy efficiency over the prior Hopper generation for massive LLMs, while CPUs have not demonstrated an ability to effectively run larger or massive LLMs.”

Over the past decade, NVIDIA’s AI computing has seen a 100,000x improvement in energy efficiency, helping businesses meet sustainability goals. Moreover, companies running workloads on NVIDIA’s platform experience 10-180x speed improvements across tasks like data processing and computer vision. This has fueled a 154% increase in NVIDIA’s data center revenue year-over-year, driven by strong demand for its Hopper architecture and upcoming Blackwell platform.

As AI models evolve and demand grows, NVIDIA’s energy-efficient solutions will continue to play a key role in reducing the carbon footprint of data centers, supporting a more sustainable future for tech.

FURTHER READING: Nvidia Is the World’s Most Valuable Company, Giving Nuclear Power A Big Lift 

The post NVIDIA’s $279 Billion Stock Crash | Can The GPU Giant Rebound? appeared first on Carbon Credits.

The growing electric vehicle (EV) market has flourished, largely due to strong government support aimed at meeting climate objectives, which has in turn captured the attention of Wall Street investors. This alignment between policy and market interest has driven substantial investment and innovation in the EV sector. However, it’s not that easy to test the waters of the EV technology industry and several startups have closed down. 

This trend is echoed in the CB Insights recent Climate Tech Report. The data showed that equity funding and deals for EV tech in Q2 2024 were at the lowest since 2020. 

When it comes to the region, U.S. startups got the largest funding and number of deals as seen below. Europe and Asia follow with the same funding amount but the latter comes second for number of deals.

For the startups that stand out during this quarterly funding, we handpicked the top four per the CB Insights report. Here are what they’re doing, what they’ve accomplished, and what they have to do to help in the clean energy transition. 

1. Sila Nanotechnologies: Powering the Future of EVs

Based in the US, Sila Nanotechnologies bagged almost 50% of the total funding in the sector for the reported quarter. It received $375 million Series G round from various investors including Sutter Hill Ventures, Bessemer Venture Partners, Coatue, and Perry Creek Capital.

Sila is revolutionizing the electric vehicle (EV) industry with its innovative battery materials that significantly enhance performance and sustainability. Founded in 2011 by former Tesla engineer Gene Berdichevsky, alongside Alex Jacobs and Gleb Yushin, Sila Nano focuses on replacing traditional graphite anodes with silicon-based materials to increase battery efficiency.

Sila Nano’s silicon anode material can increase the energy density of lithium-ion batteries by up to 20%. The innovative material allows for a 15-20% longer driving range or smaller, lighter batteries. This breakthrough directly addresses the range anxiety that many EV users face. Plus, the material releases 50-70% less carbon dioxide per kWh than graphite during production.

From company material

Sila’s technology is scalable and designed to be a drop-in solution for existing battery manufacturing processes, making it easier for automakers to adopt.

In 2021, Sila Nano announced a partnership with BMW to integrate its advanced battery technology into the automaker’s next-generation EVs by 2025. This collaboration is expected to result in vehicles with significantly improved range and charging times. 

From company website

The company has raised over $930 million in funding, reaching a valuation of about $3.3 billion, underscoring its potential to reshape the battery industry.

Sila Nano’s silicon-based anode material is a key component of cleaner, more efficient energy storage solutions. By enhancing battery performance, Sila Nano supports the broader adoption of EVs, which are critical to reducing global carbon emissions. The company’s technology also contributes to lowering the overall carbon footprint of battery production by improving energy density and reducing material usage.

Through its cutting-edge innovations, Sila Nanotechnologies is playing a pivotal role in advancing clean energy and accelerating the transition to a sustainable, electrified future.

2. EnviroSpark: Electrifying the Energy Transition with EV Charging Solutions

Another US-based climate tech startup, EnviroSpark received $50 million in EV tech equity funding from Basalt Infrastructure Partners. EnviroSpark is a leading provider of EV charging solutions, dedicated to expanding the accessibility and convenience of EV charging infrastructure. 

Image from company website

Founded in 2014 by Aaron Luque, the company focuses on designing, installing, and managing EV charging stations across residential, commercial, and public spaces.

Since its inception, EnviroSpark has installed over 8,800 EV charging stations across the United States and beyond, significantly contributing to the growth of the EV ecosystem. The company has forged partnerships with major utilities, municipalities, and property developers to integrate EV charging solutions into new and existing developments. 

EnviroSpark EV charging stations footprint

EnviroSpark’s commitment to quality and innovation has earned them recognition as one of the fastest-growing companies in the EV infrastructure space.

One of the company’s key milestones was securing a contract with Georgia Power, the largest utility in the state of Georgia, to install and maintain EV charging stations across the region. This partnership has expanded EV charging accessibility for thousands of drivers and supports the state’s goal of reducing transportation-related emissions.

EnviroSpark’s charging stations are designed to be energy-efficient and compatible with various renewable energy sources, such as solar power. The company also offers advanced software solutions that enable real-time monitoring, smart energy management, and demand response capabilities, further enhancing the sustainability of its charging infrastructure. By promoting the widespread adoption of EVs, EnviroSpark is helping to reduce GHG emissions and accelerate the transition to clean transportation.

3. Battery Smart: Innovating Battery Swapping for a Greener Future

Hailing from India, Battery Smart got about 6% of the total equity funding for EV tech startups or $45 million. The company attracted a lot of investors during this Series B round, including Acacia Inclusion, Blume Ventures, British International Investment, Ecosystem Integrity Fund, and Panasonic Living Visionary Fund.

Battery Smart is a leading provider of battery swapping solutions for electric vehicles, dedicated to transforming the EV ecosystem with efficient and scalable energy storage solutions. Founded in 2018, the India-based company focuses on solving the challenges of battery charging and range anxiety through its innovative swapping technology.

Battery Smart has rapidly established itself as a key player in the EV infrastructure space. The company has successfully deployed over 1,000 battery swapping stations across major Indian cities, including Delhi, Bangalore, and Hyderabad. This extensive network supports a range of two-wheelers and three-wheelers, providing quick and convenient battery swaps to enhance operational efficiency.

One of Battery Smart swapping stations

A significant milestone for Battery Smart was securing a strategic partnership with the Indian government’s National Electric Mobility Mission Plan (NEMMP). This collaboration aims to expand the company’s battery swapping infrastructure and accelerate the adoption of electric vehicles in the country. Additionally, Battery Smart has raised over $50 million in funding from notable investors, further bolstering its growth and expansion plans.

Battery Smart’s battery swapping technology offers a sustainable alternative to traditional charging methods. Their stations allow for rapid replacement of depleted batteries with fully charged ones, significantly reducing downtime and increasing the efficiency of EV operations. The company’s approach also supports the integration of renewable energy sources into the charging process, enhancing the overall sustainability of their solutions.

Image from company website

4. Echion Technologies: Pioneering Next-Generation Battery Materials 

Snatching the fourth rank in total EV tech funding, Echion Technologies received $35 million in Series B from Volta Energy Technologies, BGF, CBMM, and Cambridge Enterprise Ventures. The EV tech startup is at the cutting edge of battery innovation, specializing in the development of advanced materials for lithium-ion batteries. 

Founded in 2016, the company is headquartered in the UK and focuses on enhancing battery performance to meet the growing demands of the EV and energy storage markets.

Echion Technologies has made significant strides in improving battery technology with its proprietary silicon-based anode materials. Their innovative materials offer up to 50% higher energy density compared to traditional graphite anodes, translating into longer battery life and extended driving ranges for electric vehicles. This advancement addresses one of the key limitations of current battery technology and supports the broader adoption of EVs.

A key milestone for Echion Technologies was securing a £4.5 million funding round in 2021, led by investors such as Future Planet Capital and Innospark. This funding will accelerate the development and commercialization of their advanced anode materials. The company has also established strategic collaborations with major automotive and energy storage companies to integrate their materials into next-generation batteries.

Echion’s silicon-based anode materials contribute to cleaner energy solutions by increasing battery efficiency and reducing the reliance on fossil fuels. Their technology enhances the performance of EV batteries, which supports the transition to electric transportation and reduces GHG emissions. The company’s focus on sustainable materials and energy storage solutions aligns with global efforts to mitigate climate change and promote environmental sustainability.

Charging Ahead to Drive Clean Energy and Green Transportation

Each of the four startups contribute uniquely to the advancement of the EV industry, though they operate in different niches.

Sila Nanotechnologies and Echion Technologies both focus on battery innovation, but they approach it from different angles. Sila is enhancing energy density through silicon anode materials that can integrate seamlessly into existing manufacturing processes. In contrast, Echion’s work on silicon-based anode materials offers even higher energy density, promising longer battery life and extended driving ranges. 

EnviroSpark and Battery Smart tackle the EV infrastructure from opposite perspectives. EnviroSpark is building out the EV charging network, making it easier for drivers to access reliable, energy-efficient charging stations. Battery Smart, on the other hand, addresses the issue of charging time with its innovative battery-swapping technology, particularly in India, where fast and efficient solutions are needed to overcome infrastructural constraints. 

As the EV market continues to evolve, these top four EV tech startups—Sila Nanotechnologies, EnviroSpark, Battery Smart, and Echion Technologies—are pushing the boundaries of innovation despite the recent slowdown in funding. Their groundbreaking technologies are not only enhancing the performance and accessibility of electric vehicles but also contributing to the broader goal of reducing global carbon emissions.

The path forward may be difficult, but these startups are proving that with the right vision and commitment, the future of clean energy is bright. Together, their efforts are paving the way for a more sustainable and electrified future, each contributing a vital piece to the EV ecosystem puzzle.

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