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📌 Fact of the week
This September was the world’s hottest by an incredible margin of 0.5°C over the previous record registered just in 2020. On average, this September was ~1.8°C above pre-industrial levels! Scientists consider it the biggest monthly temperature anomaly ever registered! 🤔
Hottest news of the week…
Regulation 🗃 – Paying for climate change damage 💸
What happened: As we approach COP28, the fund set up by the United Nations to support vulnerable countries cope with climate change is not looking good… At the moment, it has raised only $9.3 billion, short of the $10 billion target; even in a scenario where the gap should be filled, the amount of money would be a drop in the universe compared to what is actually needed: according to an estimate given Wednesday in a U.N. Framework Convention on Climate Change, developing countries will need $200 billion - $250 billion every year by 2030 to adapt to climate change.✍️
Zoom out: Who is set to pay the cost of climate damages is an ongoing debate. Developing countries are arguably paying the highest price, as their infrastructure is not able to cope with severe weather impacts; most importantly, the large portion of existing pollution is attributable to industrial giants like China and the US, implying these countries should be the ones fixing problems they have caused. COP28 will host all relevant countries; the ambition is to reach a deal on the matter, although hopes are quite low.👎
Business 💰 – We have the first green hydrogen unicorn!
What happened: Massachusetts-based green hydrogen tech firm, Electric Hydrogen (EH2), has reached unicorn status ($1 billion valuation) after securing a $380 million financing. EH2, which only builds electrolyzers, i.e. devices that use electrolysis to split water into hydrogen and oxygen, plans to utilize these funds to enhance its production capacity. EH2’s success comes from its technology, as the company found a way to produce more hydrogen at a cheaper price through its electrolyzers. 🟩
Zoom out: EH2 is the first company in the green hydrogen space to have reached the unicorn status, and it is not a case that it actually manufactures electrolyzers rather than producing green H2 itself. In fact, green hydrogen production is very expensive and currently has poor economics, also due to the shortage of electrolyzers. Having a technology company that is scaling up production of advanced electrolyzers is a great news for both its investors and the overall sector!👍
Innovation 💡 - Geothermal vibes 🌍
What happened: The US is betting on ground sourced heat pumps: thirteen US states are now implementing underground thermal energy networks to tackle buildings’ emissions. As the MIT Technology Review explains, thermal energy networks use pipe loops that connect multiple buildings and provide heating and cooling through water-source heat pumps. Geothermal heat is commonly used in these networks, but it is also possible to bring in waste heat from other buildings through the sewer system. 🔥
Zoom out: Heating plays a very important role when it comes to decarbonization ambitions. On average, 60% of energy used in a residential building comes from space heating, while 20% comes from water heating. Currently, the most common heating systems in use are fossil fuel powered, mostly gas. Few countries today can claim to be “electric” on heating; Scandinavian countries belong to that group, as heat pump penetration has been high since the 90s, driven by bans on fossil fuels. ⛔
Deep dives of the week…
Company of the week - NotCo, back to plant based-diets 🌿
NotCo is a Chilean company engaged in the production of plant-based foods; its portfolio includes products such as milk and burgers, which are developed using AI. Why AI? The company uses a machine learning algorithm, called Giuseppe, which develops formulas able to recreate all the sensory characteristics of animal-based foods, such as flavor, texture and structure. Find out more!🍔
Deal of the week - Swish, financing your EV chargers
As the charging infrastructure grows, dynamics in the industry become more complex, with new companies arising wherever there is an opportunity to provide a useful service and gain some $ margins.
It’s the case of Swish, a French start-up that acts as an EV charging operator… with a twist. In fact, the company offers a “no Capex” service for its clients, i.e. not only manages and maintains chargers, but it also finances the construction, so that end-owners require no initial Capex. Owners will then repay for Swish’s services with a share of the revenues earned.
By reducing the necessary capital to set up EV chargers, Swish will incentivize installations, ultimately accelerating the decarbonization of light-vehicle transports in Europe. Investors are recognizing the important role played by this company and just invested €47 million in a round led by Rgreen Invest. ✍️
👋 See you next Friday, for the best sum up of this coming week!
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