Based in different countries, these startups show how new clean technologies are reshaping the market and working towards decarbonizing the planet by 2050
In the past, we've talked about why the new generation of clean technologies, — also referred to as Cleantech 2.0 or climate tech — are more promising than their predecessors.
These new companies arrived at a time when renewable technologies have become much cheaper, and the coalition of countries has become more persistent in working towards achieving climate goals.
So, what is a climate tech company?
A climate tech company is an organization whose mission is to provide technology or solutions capable of influencing the decarbonization of the planet. Its activities will impact the environment, limiting global warming to 1.5 degrees Celsius compared to pre-industrial levels.
When did climate tech start?
Since the Paris agreement (2015), investments in new clean technologies have increased. Subsidies for this type of technology have also grown thanks to the agreement signed at COP21.
That said, in 2018, many new companies were established to focus on emerging technologies to impact the renewables sector. This period marked a distinct rise in climate tech.
What companies are investing in climate change?
In an effort to understand how the world is collectively investing in its targets to decarbonize the planet, let us start by rounding up 10 climate tech companies you should be looking out for in 2022.
These companies have been up and running since 2018 and are spread across the globe. So far, they've managed to perform incredibly well and have raised more than USD$100 million dollars.
Their solutions can impact the market in the long term and these companies will be the primary destination for an entire generation of tech talent (engineers, developers, data scientists and more). Hence the need to delve deep and find out more about these renewable energy pioneers.
The 10 climate tech companies you need to watch
Location: Lysaker, Norway Year founded: 2018 Total raised to date: USD$622M
The energy storage market is one of the largest in reducing carbon footprints. That's why many hopes for decarbonizing the industry rest with FREYR.
The company produces high-density and cost-competitive lithium-ion batteries; FREYR manufactures and also designs its sustainable batteries that will supply to sectors such as electric mobility, stationary energy storage, and marine and aviation applications.
Location: Stockholm, Sweden Year founded: 2019 Total raised to date: USD$325M
Volta Trucks is a Swedish startup that wants to revolutionize urban freight distribution with a fleet of net-zero trucks. The full-electric commercial vehicles can also improve driver safety conditions and decrease road noise.
Volta Trucks' most recent deal was the one led by Luxos Capital Group, which raised USD$260M in March of this year. The funding will help the company grow from a startup to a prominent manufacturer of 12, 7 and 16-tonne electric trucks.
A pilot fleet of vehicles is expected to arrive for customer testing in 2024, so it's undoubtedly one of the 10 climate tech companies that deserves our attention right now.
Location: Hamburg, Germany Year founded: 2021 Total raised to date: USD$220M
Co-founded by a former Tesla director, Philipp Schröder, 1Komma5 is facilitating the installation of clean electric technologies (solar panels, heat pumps, energy storage and many more) in residential houses and small and medium-sized companies.
Source: Frame Stock Footage/Shutterstock
Through an operations model that aggregates independent providers and connects them to customers, 1Komma5 is now investing in its own platform to unite all products and services.
Location: São Paulo, Brazil Year founded: 2018 Total raised to date: USD$158M
Solfácil is a Brazilian fintech for financing solar power systems in homes. The company works with a credit line without the need for upfront investments from clients.
The amount of funding raised will be used for tech improvements, new credit line (agribusiness), and expanding its partner network.
Location: Cambridge, MA (United States) Year founded: 2018 Total raised to date: USD$151M
Invaio Sciences is the creator of a multiplatform capable of analyzing (through advanced sciences) the physiology of insects and the nature environment as a whole in an agriculture context.
The company has delivered solutions ranging from the digital integration of sustainable agricultural systems to the discovery of nature based bio-actives.
With the recent investments, the startup hopes to evolve its technology further and continues increasing its participation in the fight against climate change — helping reduce the use of biofertilizers, pesticides and water waste.
FTXT Energy Technology
Location: Shangai, China Year founded: 2019 Total raised to date: USD$141M
The company operates across the entire supply chain of hydrogen fuel cell products, producing and selling cost-effective, sustainable technology solutions.
Source: Frame Stock Footage/Shutterstock
Last year, FTXT Energy Technology delivered a fleet of 100 hydrogen fuel cell heavy-duty trucks for a pilot project in China. The initiative was to help with the transportation on Rongyi Road, the main route for construction materials to Xiong'an New Area.
With the project's success, the country and the company expect to develop the partnership for the future of hydrogen transportation nationwide.
Aspen Power Partners
Location: Dallas, TX (United States) Year founded: 20210 Total raised to date: USD$120M
Aspen Power Partners wants to democratize access to decarbonization by facilitating the deployment of solar and storage assets in the United States.
The startup has a very experienced team behind its business. Its leaders are veterans of the renewables industry, having helped finance more than $1 billion in clean energy projects.
Location: Haifa, Israel Year founded: 2018 Total raised to date: USD$107M
Now let's turn to who wants to make hydrogen fuel cheaper. H2Pro has developed an innovative way to split water into hydrogen and oxygen using electricity separately in different steps. All thanks to a method called Electrochemical - Thermally Activated Chemical (E-TAC).
The technology aims to scale up fossil-fuel hydrogen production, making it more affordable, safe and efficient. The potential of green hydrogen to replace coal in steel and cement production makes H2Pro one of the climate tech companies with huge expectations of leading the zero-carbon footprint revolution in the industry.
Location: Louisville, KY (United States) Year founded: 2020 Total raised to date: USD$100M
The newest weather forecast player is certainly the most promising. In a Series A round, the startup managed to raise 100 million dollars and now wants to show why the bets are correct.
Through a suite of AI technologies, proprietary data with cutting-edge machine learning plus lower altitude, Climavision is combining space-based GPS-RO data with its private network of Hi-Res radars.
Location: Vancouver, Canada Year founded: 2018 Total raised to date: USD$99M
Nexii is a green building company. It offers a lower-carbon alternative to conventional construction materials with a reduced build time.
It indeed attacks a crucial sector in GHG emissions. Buildings and construction represent the main cause (39%) of the climate crisis. And the company is ambitious to be a game-changer for a wide variety of industries.
How big is the climate tech market?
According to Pitchbook's records, in 2021, the climate tech market reached its record with a total of 96 billion dollars in capital invested.
We will continue to see these numbers increase as the clock ticks towards our net-zero mission.
Source: Frame Stock Footage/Shutterstock
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This post was written by: Raphael Santos, Content Marketing Coordinator