Greenify #94: Global Partnerships & Super Efficient Solar Cells
January 20, 2024
Welcome to Greenify 😃!
Did a friend send you Greenify? Subscribe now and thank us later for not missing the most insightful information on the booming #GreenTransition!
Please help us improve by leaving a comment or feedback, and if you like what you are learning… share it with your network 😁!
📌 Fact of the week
Interviewed at Davos, OpenAI's CEO Sam Altman said massive demand for electricity to power artificial intelligence will require a breakthrough in clean energy generation!
Hottest news of the week…
Regulation 🗃 – Adapting policy to climate disaster
What happened: The US has launched disaster relief reforms as climate driven events are on the rise. Specifically, the Federal Emergency Management Agency (FEMA) expanded benefits for disaster survivors: for instance, it announced a change to its cash relief program which will provide $750 to households for all disasters involving shelters and evacuation, supplementing other disaster aid, whereas previously the payment was assessed on a disaster-to-disaster basis.🌍
Zoom out: Extreme weather disasters have gotten more and more common in recent years. Whether in the form of wildfires, floods or tornados, the pattern is consistently worrying. As a result, experts have argued that many industries will face drastic changes in how they operate: for instance, insurance companies are increasingly offering policies covering natural disasters; conversely, real estate is also adapting, as properties/lands in what are considered danger areas from, for example, a flooding perspective are dropping in value.📉
Business 💰 – Germany 🤝Japan
What happened: German renewable energy company RWE is expanding into Asia, as it just won its first offshore wind project for Japan last month. RWE, the second-biggest offshore wind company (behind Orsted), won Japan’s state auction to build a 684 megawatt (MW) wind farm in northern Japan. RWE will partner with Mitsui and Osaka Gas, with shared capital expenditures based on the companies’ project’s share (not disclosed). RWE’s CEO, however, said that the company’s average capital expenditure is €3 million per megawatt. The farm is expected to come online in 2029.🕰️
Zoom out: The wind industry has had one of its toughest years ever in 2023, as supply chain issues and inflation have resulted in cancellations of many projects (e.g. Siemens Energy). However, it looks like RWE is betting on the industry’s significance in the long-term when it comes to achieving the planet’s decarbonization ambitions. RWE’s CEO has said the company is also looking at the opportunity for offshore floating wind farms in Japan once the legislation will be in place, as well as looking at South Korea in terms of further penetration in Asia. 🗺️
Innovation 💡 - Tandem solar technology
What happened: This week we discuss, yet again, another 2024 breakthrough technology nominated by the MIT Download: super efficient solar cells. A solar cell’s efficiency is measured by the account of sunlight which the cell can convert into electricity. Traditional silicon based solar cells have an efficiency level of around 30%; perovskite solar cells, combining silicon and perovskites, have reached an efficiency of around 33%, which seems like a small difference, yet it could make a massive difference if deployed at scale.📈
Zoom out: Simply put, perovskites absorb different wavelengths of light from those absorbed by silicon cells: used in tandem, the two can utilize more of the solar spectrum. However, the 33% efficiency we mention above was only reached in lab conditions; sceptics have doubts on the outcome of tandem cells in “real” conditions, as perovskites cells have failed in the past, degrading quite easily vs silicon cells. Some companies which are trying to innovate in the field are: Beyond Silicon, Caleux, First Solar. ☀️
Deep dives of the week…
Chart of the week - Heat pumps recorded impressive growth in 2023
Heat pumps are the optimal choice for decarbonizing heating, and it appears that entrepreneurs, governments, and households have recognized this, particularly in Europe.
As illustrated in the chart below, heat pump installations experienced exponential growth from 2022 to 2023, with Poland and Italy recording growth rates exceeding 60%!
Although the trend has not yet begun in the UK, the company discussed in this week's deal has a plan for it!
Deal of the week - Aira: breaking the heat pumps market
Aira, a start-up aiming to revolutionize the heat pumps market, has recently concluded a Series B fundraising round, securing nearly €150 million. The company had previously raised €87 million in October and has now expanded the fundraise by an additional €58 million. Impressive for a 1-year-old start-up!
Aira manufactures heat pumps in a factory in Poland and deploys them across Central Europe through a subscription-based service. This exemplifies the Equipment as a Service (EaS) model, gaining traction in the decarbonization sector. The company has identified the UK as its primary target market, considering the country's heat pump penetration rate is just 1%.
Founded by Harald Mix, a serial entrepreneur, Aira operates under the finance holding Vargas, which previously established market-leading companies like Polarium, Northvolt, and H2 Green Steel. Media estimates suggest these companies have collectively raised around ~€15 billion. Notably, Northvolt, Europe's premier battery cell manufacturer, recently secured Europe's largest green loan ever, totaling $5 billion.
👋 See you next Friday, for the best sum up of this coming week!
If you enjoyed this edition, help us grow by liking this post, and share it with your network!