Amazon announced that it invested in more than 100 new solar and wind energy projects in 2023, claiming the title of largest corporate purchaser of renewable energy for the fourth consecutive year, and bringing the company’s pipeline of clean energy capacity to greater than 77,000 GWh per year, roughly equivalent to the power needs of 7.2 million homes.

According to Amazon, the new projects will move the company closer to its expectation to have 100% of the electricity powering its operations be attributable to renewable energy sources by 2025, ahead of its original 2030 target. The company said that more than 90% of its operations were powered by renewables in 2023.

Over the past year, Amazon has expanded its renewables portfolio into 27 countries and more than 20 U.S. states, with new projects in Arkansas, Georgia, Maryland, Michigan, Mississippi, Missouri, Ohio, Oklahoma, and Virginia as well as Canada and Brazil. The company’s 2023 European renewable energy investments include projects in nine countries, with 15 rooftop solar installations on Amazon facilities across Belgium, France, Italy, Spain, and the UK, and 24 utility-scale wind and solar projects in Finland, Germany, Greece, Spain, Sweden and the UK.

The company also added 13 projects in the Asia Pacific region over 2023, including eight utility-scale wind and solar projects and its first in South Korea. In China, Amazon announced two new wind farms; Amazon Wind Farm China–Daqing, which began operating in March, and Amazon Wind Farm China–Bobai.

Overall, Amazon said that it now has more than 500 wind and solar projects globally.

Adam Selipsky, CEO of Amazon Web Services (AWS) said:

“Amazon’s investments in solar and wind projects are helping power our operations, while also providing new sources of clean energy to the grid, spurring economic growth, and supporting jobs in the communities where our customers live and work.”

Lawmakers in the European Parliament and Council announced today that they have reached a provisional agreement on proposed new rules to strengthen emissions standards for heavy-duty vehicles, including a requirement for a 90% emissions reduction for heavy trucks by 2040.

Additional interim requirements covered by the agreed standard include 45% emissions reductions from 2030, and 65% from 2035.

The agreement follows an initial proposal by the European Commission in February 2023 for a revision of the CO2 emissions standards for heavy duty vehicles (HDVs). Trucks and buses account for over 6% of total greenhouse gas (GHG) emissions in the EU, and more than 25% of GHG emissions from road transport.

Among the most significant revisions in the new agreement to the Commission’s initial proposal include an expansion of the scope of the regulation aimed at making nearly all HDVs subject to emissions reduction targets, including smaller trucks, urban buses, coaches and trailers, while allowing exemptions such as small-volume manufacturers and vehicles used for mining, forestry and agriculture, and vehicles for use by the armed forces, fire services, or in civil protection, public order and medical care. Additionally, the agreement extends the scope of the regulation to vocational vehicles such as garbage trucks or concrete mixers from 2035, while also introducing a 2035 100% zero emissions target for urban buses, with an intermediate 90% 2030 goal.

The agreement also includes a requirement for the Commission to review the effectiveness and impact of the amended regulation in 2027, including evaluating the possibility of developing a common methodology for the assessment and reporting of the full lifecycle CO2 emissions of new HDVs, studying the potential role of introducing a carbon correction factor (CCF) to enable the inclusion of renewable fuels and carbon neutral e-fuels in the fleet transition mix, and assessing the role of a methodology for registering HDVs exclusively running on CO2-neutral fuels.

With the provisional agreement reached, the new regulation will need to be endorsed by member states’ representatives on the Council and by Parliament’s environment committee, and then formally adopted by the Parliament and Council before entering into force.

Clean fuels startup INERATEC announced today that it has raised over $129 million in its Series B funding round with proceeds to be used to scale production of the company’s sustainable e-fuels, aimed at decarbonizing hard-to-abate industries.

Founded in 2016, Karlsruhe, Germany-based INERATEC produces sustainable e-Fuels and synthetic chemicals to replace fossil crude oil. The company builds modular chemical plants for “Power-to-X” Power-to-X and gas-to-liquid applications, which use hydrogen from renewable electricity and greenhouse gases such as CO2 to produce fuels and chemicals including e-kerosene, CO2-neutral gasoline, clean diesel or synthetic waxes, methanol or SNG.

According to INERATEC, the financing comes as demand for drop-in e-Fuels is expected to increase rapidly over the next several years, as sectors that rely heavily on fossil fuels, such as aviation, shipping, road transport and chemicals, seek renewable alternatives to achieve their climate goals. INERATEC produces a drop-in e-Fuel, a synthetic fuel that releases no CO2, and can be used in place of fossil fuels.

The company said that the new capital will be used to start mass production of its industrial-scale Power-to-X plants worldwide. INERATEC has also begun construction of its largest plant to date in Frankfurt and is expanding through international projects in the Netherlands and Chile, with the expansion expected to yield a 1,500 x increase in production, recycling over 12,000,000 metric tons of CO2 annually.

INERATEC CEO Tim Boeltken said:

“This financing round is a major milestone for INERATEC as well as the transition from fossil fuels to sustainable e-Fuels. With the new capital, we are positioned to catalyze a paradigm shift in the energy sector. Our focus is to scale-up e-Fuels enabled by this new investment. By transforming 1GW of renewable energy into 125 million gallons of sustainable e-Fuel by 2030, we are taking solid steps in creating a viable alternative to fossil fuels.”

The round was led by San Francisco-based venture investor Piva Capital with participation from investors including Planet A Ventures, MPC, High-Tech Gründerfonds, FO Holding, Safran Corporate Ventures, Honda, ENGIE New Ventures, HG Ventures, TDK Ventures, Copec WIND Ventures, RockCreek, Emerald, and Samsung Ventures.

Adzmel Adznan, Co-founding Partner at Piva Capital said:

“INERATEC’s pioneering technology is the most promising e-Fuel solution we’ve seen to date in addressing the hardest-to-decarbonize sectors such as aviation, shipping, and chemicals. The company is doing more than just creating e-Fuels; their proprietary reactors are more efficient and scalable, re-imagining how industry can transform waste CO2, green electrons and hydrogen to meet various needs, from fuel to power cars, planes, and ships to green chemicals for our everyday consumptions. We believe that INERATEC has the winning solution to transform industries and help the world meet its collective goal to transition away from fossil fuels for energy.” 

Global impact investor BlueEarth Capital AG announced today that it has reached $378 million in investor commitments for its private equity climate impact strategy, BlueEarth Climate Strategy, Commitments include $308 million from the BlueEarth Climate Growth Fund, and $70 million from LPs in a tailored mandate and co-investments.

Founded in 2015, Switzerland-based Blue Earth Capital manages investment strategies for professional investors seeking market-rate returns, in addition to addressing social and environmental challenges. The firm is owned by Swiss not-for-profit Blue Earth Foundation, which re-invests 100% of the firm’s operating profits in support of its philanthropic activities.

BlueEarth’s Climate Growth Fund, classified as Article 9 under the SFDR regulation, invests in companies in North America and Europe at the growth stage, between venture and buyout, that are working to accelerate the net zero transition, improve society’s resilience to climate change, and promote a circular economy.

The climate strategy targets investments across five key themes, including energy transition, buildings and mobility, climate intelligence, production and consumption, and food and agriculture.

Kayode Akinola, Head of Private Equity at Blue Earth Capital, said:

“The significant investor commitments received for the BlueEarth Climate Strategy demonstrate the essential role of for-profit impact investing in helping to address some of the world’s biggest climate challenges. Through this strategy, BlueEarth is addressing opportunities graduating from the venture stage but still too early for traditional buyouts – catalysing climate solutions of the future whilst aiming for attractive, market-rate returns.”

Electric vehicle fast-charging provider Electra announced today that it has raised €304 million (USD $330 million) in equity funding. The company plans to use the funds to support its goal to install 2,200 stations with 15,000 charging points in Europe by 2030.

The fundraising marks the largest in the charging sector to date in France, and the second-largest in Europe.

Founded in 2021, Paris-based, Electra aims to deploy a fast-charging network to help resolve one of the main obstacles to EV adoption. Electra’s app analyzes a client’s vehicle, the availability and power of nearby charging stations and recommends the best charging options. The company has deployed nearly 1,000 charging points and has a presence in France, Germany, Belgium, Luxembourg, Italy, Switzerland, Austria, and Spain.

Aurélien de Meaux, co-founder and CEO of Electra, said:

“The transition to electric mobility is a key aspect of the energy transition, with the transportation sector being the largest CO2 emitter in France. We are creating a network that is very easy to use, making the transition to electric vehicles desirable and not a constraint.”

The funding round was led by the Dutch pension fund service provider, PGGM with participation from Bpifrance, through its Large Venture fund, and previous investors including Eurazeo, RIVE Private Investment, the SNCF group, and Serena.

Dennis van Alphen, Head of Infrastructure Investments at PGGM, said:

“PGGM Infrastructure Fund fully supports Electra’s ambition to become a pan-European player in the market of (ultra)fast charging facilities for EVs. The enterprise has excellent management and a strong position with good locations in a very dynamic market that is expected to grow rapidly in Europe in the coming years.”

Clean energy tech startup Aira announced today that it has raised €145 million (USD$158 million) in its Series B financing round, aimed at accelerating electrification and reducing the use of gas in residential heating in Europe.

According to Aira, the financing round was significantly oversubscribed, and was upsized from an initially targeted €85 million.

Founded in 2022 by impact company builder Vargas, Stockholm, Sweden-based Aira provides clean energy-tech solutions aimed at accelerating the electrification of residential heating, including a high-efficiency heat pump.

Heat pumps are rapidly emerging as a key energy efficient and climate-friendly alternative to furnaces and air conditioners, producing fewer greenhouse gas emissions and reducing reliance on fossil fuels. According to the European Commission Joint Research Center, there are nearly 90 million residential fossil fuel-based boilers in use. Aira said that switching from a gas boiler to an air source heat pump with its clean energy solution can reduce household heating costs by up to 40% and CO2 emissions by 75%, rising to 100% if fossil-free energy is used as the source of power for the heat pump.

The company said that the new funding will be used for market expansion across Italy, Germany, and the UK, the introduction of an affordable monthly payment model for European homeowners, the expansion of the company’s portfolio with products and services including intelligent heat pumps, solar panels, battery storage and electricity tariffs, as well as for R&D aimed at providing simple to use and customer-centric clean energy-tech solutions. 

The company also announced a €15 million grant from the Polish government for the establishment of a state-of-the-art manufacturing site in Poland to produce heat pumps.

The Series B round was led by Altor, Kinnevik and Temasek and also includes the Burda family, Collaborative Fund, Creades, Lingotto, Nesta Impact Investments and Statkraft Ventures.

Martin Lewerth, Aira Group CEO, said:

“We are thrilled to welcome our new shareholders. Above and beyond the funding, they bring invaluable strategic insights, networks, and expertise. Together, we are committed to spearheading the much-needed green revolution in residential heating. The completion of our Series B funding makes us well capitalised and ready to accelerate our pan-European platform expansion, significantly reducing both heating bills for households and carbon emissions across Europe.”

Sustainable mobility solutions provider Hexagon Purus announced today that it has raised approximately 1 billion NOK (USD$96 million), with proceeds aimed at growing its capacity for its zero emission mobility and hydrogen infrastructure solutions.

Founded in 2018 as the e-mobility unit of clean energy solutions company Hexagon, Norway-based Hexagon Purus produces clean mobility products including hydrogen Type 4 high-pressure cylinders and systems, battery systems and vehicle integration solutions for fuel cell electric and battery electric vehicles, for applications across light, medium and heavy-duty vehicles, buses, ground storage, distribution, refueling, maritime, rail and aerospace.

The company said that the new financing will be used to ramp up capacity at its five production facilities, two of which are Germany, one in Canada, one in China and one in the United States, in Maryland. A second US site in Dallas is expected to open 2024.

Morten Holum, CEO of Hexagon Purus, said:

“We operate in an increasingly supportive regulatory environment with large investments being made into renewable energy generation and hydrogen to support the clean energy transition.”

Hydrogen-focused investor Hy24 joined as a new investor in the funding round through its newly raised Clean Hydrogen Equipment Fund, alongside existing investors Mitsui and Hexagon Composites.

Guillaume Lesueur, Managing Director & Head of the Clean Hydrogen Equipment Fund at Hy24, said:

“This investment, the first by our Equipment Fund, reinforces Hy24’s position as a strategic investor and a catalyst in fostering the clean hydrogen economy. It bolsters the growth initiatives of Hexagon Purus, a global leader in the midstream of the hydrogen sector, exemplifying our Fund’s commitment to the mature and pivotal hydrogen technologies that are essential to decarbonizing industry and mobility sectors.”

A group of 27 institutional investors representing more than $4 trillion in assets under management announced today that they have co-filed a shareholder resolution at Shell, urging the energy giant to set Paris Agreement-aligned medium-term target to reduce emissions arising from the use of its products.

The resolution, led by oil and gas-focused shareholder activist group Follow This, was filed by investors including Amundi, NEST, Scottish Widows and Candriam. Collectively, the investor group owns approximately 5% of Shell stock.

Diandra Soobiah, Head of Responsible Investment at NEST, said:

“We urge Shell to set a credible scope 3 absolute emissions target. This would demonstrate leadership, show Shell is serious about transitioning its business, and play a role in generating real-world change.”

The resolution calls on Shell to align its medium-term target for reductions in Scope 3 emissions from the use of its energy products with the goal of the Paris Agreement, which aims to limit global warming to well below 2°C, and to pursue efforts to limit the temperature increase to 1.5°C. The resolution also states that it leaves the strategy for achieving the targets up to the board of the company.

Follow This led a group of shareholders last year in filing a similar resolution, which received 20% support at Shell’s 2023 AGM. The updated resolution incorporates key changes, including replacing last year’s “2030 target” with a less prescriptive “medium-term targets,” and a rewritten supporting statement focused solely on emissions.

Mark van Baal, founder of Follow This, said:

“Large shareholders hold the key to tackling the climate crisis with their votes at shareholders’ meetings. Shell will only change if more shareholders vote for change. The resolution is designed to give Shell a shareholder mandate to drive the energy transition.”

In 2020, Shell announced a commitment to achieve net zero in its operations by 2050, and in 2021, the company launched its “Powering Progress” strategy, detailing how it will achieve its target to be a net-zero energy business by 2050 across Scope 1, 2 and 3 emissions, with initiatives including investing in renewable and clean energy solutions.

While the company has set 2030 targets to reduce its Scope 1 and 2 emissions, it has avoided setting an interim Scope 3 target. Scope 3 emissions represent more than 95% of the company’s carbon footprint, with “use of sold products” accounting for approximately 74%.

In the company’s “Energy Transition Progress Report” released last year, Shell Chairman Andrew Mackenzie said that “the Board has considered setting a Scope 3 absolute emissions target but has found it would be against the financial interests of our shareholders and would not help to mitigate global warming.” Shell added that in order to implement a more ambitious Scope 3 target, the company would be required to reduce its sales of oil and gas products, which in the absence of a change in customer demand, “would effectively mean handing over customers to competitors.”

In a statement provided to ESG Today following the announcement of the resolution, a Shell spokesperson said:

“Shell’s Board has previously advised shareholders that the Follow This resolution was unrealistic and simplistic, that it would have no impact on mitigating climate change, have negative consequences for our customers, and was against the interests of the company and our shareholders.

“Continued, targeted investment in oil and gas will remain necessary to meet global energy demand over the coming decades as the world transitions to a lower-carbon future.”

Battery manufacturer Northvolt announced today that it has raised $5 billion through the largest-ever green loan in Europe, with proceeds from the financing aimed at expanding its Northern Sweden-based lithium-ion battery gigafactory and battery recycling facility.

The green loan was provided by a consortium including 23 commercial banks, in addition to the European Investment Bank (EIB) and the Nordic Investment Bank (NIB), who are both supported by the European Commission’s InvestEU programme, which mobilizes investment towards sustainable investment, innovation and job creation in Europe.

Alexander Hartman, CFO of Northvolt, said:

“This has been an incredible team effort, involving long due diligence processes, new partnerships with strong institutions, and developing cutting edge financing structures focused on sustainability – all to close one of the largest green financing deals in history.”

Founded in 2016, Stockholm, Sweden-based Northvolt was established with a goal to develop the “world’s greenest battery,” targeting a minimal carbon footprint, sustainable sourcing of raw materials and recycling. To date, the company has received $55 billion in orders from customers including BMW, Fluence, Scania, Volvo Cars and Volkswagen Group.

Northvolt is currently delivering batteries from its first gigafactory Northvolt Ett, in Skellefteå, Sweden, and the adjacent recycling plant Revolt Ett is approaching the conclusion of its commissioning and is already processing its first materials. According to the company, Revolt Ett recovers battery-grade metals with a carbon footprint 70% lower than mined raw materials.

The financing will be used to expand Northvolt Ett’s cathode production and cell manufacturing as well as the Revolt Ett plant.

Peter Carlsson, Co-Founder and CEO of Northvolt, said:

“This financing is a milestone for the European energy transition. It will enable us to realize the full potential of Northvolt Ett and demonstrates that circular, sustainable business practices are fundamental to success in today’s industry.”

Global growth equity investor General Atlantic announced today the acquisition of sustainable infrastructure investor Actis. Following the acquisition, Actis will become the sustainable infrastructure arm within General Atlantic’s global investment platform.

The move marks the latest in a series of moves by major asset managers to boost their capabilities to target a rapidly growing infrastructure opportunity set driven by themes including energy transition and decarbonization, including last week’s acquisition by BlackRock of infrastructure giant GIP for $12.5 billion.

According to General Atlantic Chairman and CEO Bill Ford, the acquisition comes amidst a “global paradigm shift toward sustainability,” which will require “an economic transformation and a capital investment on a massive scale.”

Ford added:

“With the addition of Actis, we are taking a significant step forward to add a sustainable investment capability which positions General Atlantic to capture this opportunity set for our investors.”

Founded in 2004 as a spin-out from UK development finance institution CDC Group, London-based Actis has grown to more than 140 investment professionals across 17 global offices, with approximately $12.5 billion in AUM, and over $25 billion in capital raised since inception, targeting investments in critical infrastructure across key themes including energy transition, digital transition, and supply chain transformation.

Following the acquisition, General Atlantic will manage approximately $96 billion of AUM across sustainable infrastructure, real estate, growth equity and credit. The sustainable investment unit will continue to be led by Actis Chairman and Senior Partner Torbjorn Caesar, and the firm will retain the Actis brand.

Caesar said:

“We are very excited to be joining forces with General Atlantic. The combined firm brings together distinct but highly complementary strategies that unlock long-term value for our investors across key structural themes including the energy transition and digital transition.”

Financial terms of the acquisition were not disclosed. The transaction is expected to close in Q2 2024.