GCV Analytics defines the energy sector as encompassing renewable energy technologies and providers, oil and gas technologies, energy storage, management and equipment along with grid and power supply technologies, energy software and analytics, energy utilities.
The energy sector is, by its nature, a driver of virtually all economic activity, though almost always ridden with concerns about environmental impact. Thus, reducing impact and increasing efficiency are two themes defining innovative aspirations in energy.
The sector is experiencing a profound change in the mix of energy sources – some of which have a much lower impact on the environment – and how they are managed more efficiently. Many of the growth opportunities lie in large emerging economies such as China.
Renewable energy sources are continuing to gain importance around the globe. A report – Global Trends in Renewable Energy Investment 2018 – prepared jointly by UN Environment’, the Frankfurt School-UNEP Collaborating Centre and Bloomberg New Energy Finance, ascertained that 157GW of renewable power were commissioned in 2017, far surpassing the 70GW of net fossil fuel generating capacity added.
The report also stated: “Solar power rose to record prominence in 2017, as the world installed 98GW of new solar power projects, more than the net additions of coal, gas and nuclear plants put together.” Overall investment in renewables globally stood at $279.8bn in 2017, up 2% year-on-year, representing a cumulative investment of $2.2 trillion since 2010.
This long-term growth has been due to decreasing capital requirements and generating costs for renewables. The levelised cost of electricity for solar photovoltaics and wind power generation has been reduced over the past years, which has given a boost to the competitiveness of these energy sources compared with traditional sources like coal and gas.
The report added: “China accounted for just over half of that new global solar capacity in 2017, and it accounted for 45% of the $279.8bn committed worldwide to all renewables.” The report also noted increases in renewables investments across other geographies, such as Australia, Mexico, the United Arab Emirates and Egypt. In the US, which remains a distant second behind China, capital commitments to renewable tech have stayed, according to the report, “resilient in the face of policy uncertainties, although changing business strategies affected small-scale solar”.
The situation is similar for water tech and water treatment technologies. This sub-sector is expected to grow globally and the growth will be fuelled mostly by developments in China, with a combination of rising demand for potable water and increasing levels of pollution. Consulting firm Grand View Research’s analysis – Water treatment systems market size, share and trends report 2018-2025 – forecasts the global water treatment systems market, estimated at $23.8bn, will register a compound annual growth rate of 7.1%.
The report summarises the drivers behind it. “Asia-Pacific is estimated to lead the global market over the forecast period. Economic performance is projected to rally in China in the coming years with large-scale investments in technology and research. China is undertaking massive changes in the water supply and sanitation scenario in the country to overcome numerous challenges including economic disparity between urban and rural population and increasing urbanisation.”
It also points out that water treatment system manufacturers are currently focusing on systems and units that can function without a constant electricity supply, so they can be employed in remote and rural areas.
A major challenge for many emerging technologies today, including electric vehicles and renewable power generation, lies in energy storage technologies. Consultancy firm McKinsey’s report – Battery storage: The next disruptive technology in the power sector – prices of such technologies are going down and this has been driven largely by demand in consumer electronics and electric vehicles. Battery-pack costs have decreased considerably to $230 per kWh in 2016 from $1,000 in 2010 (see special report).
While there have been notable advances in consumer applications, the decarbonisation of heavy industry remains a complex technological challenge which is likely to create opportunities for tech developers. A 2018 McKinsey report – Decarbonisation of industrial sectors: The next frontier – found that ammonia, cement, ethylene, and steel companies can reduce their CO2 emissions to almost zero through efficiency improvements, electric prouction of heat, use of hydrogen and biomass as feedstock or fuel, and carbon capture. However, the decarbonisation process is expected to cost between $11 trillion and $21 trillion by 2050 and would necessitate much higher levels of non-carbon electricity generation than presently available.
The oil and gas subsector of the energy industry still plays a crucial role but is susceptible to constant fluctuations in market conditions. After the recovery of oil prices and the increase in US oil production, the sector is currently optimistic. However, a report by consultancy firm PwC – Oil and gas trends 2018-19 – stated that the sector may “very well be moving headlong into a supply crunch” due to growing oil demand. The report recommends that oil and gas “maintain capital discipline and the focus on productivity improvements and applying new technology” and also reorient themselves towards a transition to a lower-carbon energy world”.
This implies that, aside from rationalising oil-rich assets in terms of acquisition and divestments as well as streamlining operations to increase efficiencies, oil and gas industry players would double down on digitisation – using advanced digital technologies to bring about operational efficiencies, from predictive maintenance and data analytics through drones inspecting offshore platforms to using robots to reduce workers’ exposure to hazardous conditions. Our data on venturing deals corroborates the strategic interest such technologies constitute for oil and gas majors.
Corporates in oil and gas have also been seeking opportunities in low-carbon energy applications, from renewables such as solar and wind energy to infrastructure for electric vehicles. The PwC report noted, for example, how energy utility company Engie divested its upstream assets to refocus on power and renewables. The report also pointed out that switching focus to natural gas, which, estimates suggest, constitutes a 10 to 15-year potential growth opportunity, may turn out to be a much-needed bridge to a low-carbon economy.
Electric power utilities are driven by a set of technological and regulatory forces. While the latter vary in each geography, the former affect most regions. Consultancy Deloitte’s report – 2018 outlook on power and utilities – noted that, the most visible technological change in recent years by far has been the change in the ratio of power sources. In the US, for example, generation from non-hydro renewable sources – mostly solar and wind – has doubled, while natural gas, due to its low prices surpassed the share of coal-generated power in 2016.
Not only is power generation becoming more diverse and cleaner but power distribution and consumption are becoming smarter. The Deloitte said: “Whether it is distributed generation, energy storage, microgrids, energy efficiency, electric vehicles, smart appliances or demand response, residential and commercial electricity customers seem to increasingly see these products and services as a way to manage their energy use, save money, reduce their carbon footprint, and boost reliability and resilience.”
The challenges facing energy utility companies in terms of the diverse mix of energy sources presuppose investments in software and advanced analytics tools to modernise existing grids and make distribution more efficient, particularly as the falling costs of renewable energies encourage grid defection among customers.
In the period between September 2017 and August 2018, GCV reported 80 venturing rounds involving corporate investors from the energy sector. Nearly half (37) took place in the US, while 14 were hosted in the UK and seven in Germany.
Many of those commitments (31) went to emerging enterprises from the same sector – mostly renewable energy and energy storage technologies, along with core oil and gas applications – but the remainder went to companies developing other technologies favouring synergies with the energy sector – 18 deals in transport, mostly autotech innovations in electric vehicles as well as vehicle marketplaces, 14 in IT, mostly internet-of-things (IoT) applications, cybersecurity and data analytics, and nine in industrials, advanced materials, drones, robots and other industrial applications. Most notable is the interest in electric mobility – potentially a significant disruptor for the oil and gas industry and its downstream fuel products.
The network diagram showing co-investments among energy corporates, illustrates the spectrum of their investment interests. Commitments range from charging stations for electric vehicles (Chargepoint) and lithium-based energy storage (Sonnen) through energy management systems (Sunverge), solar power producers (Sunseap), wind energy technology developers and providers (United Wind, Kite Power Systems), chemical products developers (Lux Assure), analytics software (Maana) and thermostat maker (Ecobee).
On a calendar year-on-year basis, total capital raised in corporate-backed rounds went up significantly from $925m in 2016 to $1.72bn in 2017, an 86% surge. The deal count also rose 41% from 55 deals in 2016 to 78 in 2017.
The 10 largest investments by corporate venturers from the energy sector were spread across various industries.
The leading corporate investors were oil and gas companies Royal Dutch Shell, BP and electricity and gas company RWE, accounting for the largest number of deals. Energy corporates committing capital in the largest rounds were led by oil exploration and production firm Geo-Jade Petroleum, along with Engie, Shell and BP.
The most active corporate venture investors in emerging energy companies was Free Electrons, an international energy-focused initiative backed by 10 energy utilities, along with Shell, chemical producer BASF and BP.
The rising energy businesses in the portfolios of corporate venturers were varied, encompassing anything from charging stations for electric vehicles (Chargepoint) and energy storage (Sonnen), smart grid applications (Actility), distributed energy management systems (Sunverge, Advanced Microgrid Solutions), solar photovoltaic technology (Heliatek) to biomass conversion technologies (Renmatix). This is illustrated by the network diagram of corporate co-investments in such companies.
Overall, corporate investments in emerging energy-focused enterprises went up slightly from 76 rounds in 2016 to 88 deals in 2017. Estimated total dollars also increased from $1.08bn to $1.51bn. This trend appears likely to continue, as we have reported 63 such transactions, worth and estimated $1.17bn, by the end of August this year.
Deals
Energy sector corporates invested in large multimillion-dollar rounds, raised by a range of enterprises – not only energy tech developers but also industrial, transport, consumer and financial services.
China-based fintech platform Caogen Touzi (CGTZ) secured RMB2.3bn ($359m) in series D funding from a consortium led by Geo-Jade Petroleum. The latter participated through an unnamed industrial fund and was joined by a range of undisclosed existing shareholders. Founded in 2013, CGTZ has developed a range of investment tools for private users and smaller companies. Users can also apply for collateral loans backed by assets such as houses and vehicles, and the company offers consumer instalment credit products in rural areas.
US-based electric scooter provider Gogoro closed a $300m series C round that included Engie, diversified conglomerate Sumitomo and consumer electronics producer Panasonic. The round reportedly valued Gogoro at more than $800m. Singaporean state-owned investment vehicle Temasek also participated. Founded in 2011, Gogoro has developed a smart electric scooter as well as a battery-swapping network for its customers, both of which were launched in Taipei, capital of Taiwan, in 2015. The company has since sold 34,000 scooters and established more than 400 battery-swapping stations across Taiwan and Europe.
Oil and gas supplier BP is investing $200m in UK-based solar power project developer and operator Lightsource over a three-year period as part of a strategic partnership. BP’s investments will eventually give it a 43% stake in Lightsource, which will be renamed Lightsource BP, and two seats on its board. Founded in 2010, Lightsource develops and operates utility-scale solar projects. It has brought 290 solar photovoltaic projects online amounting to 1.3GW of capacity in the UK, and manages about 2GW of energy through operations and maintenance agreements.
China-based industrial e-commerce platform Zhenkunhang raised $129m in a series C round co-led by Legend Capital, the venture capital firm formed by conglomerate Legend Holdings, and Tiger Global Management. The round included Shell China, Shell’s local subsidiary, and Oriza Holdings, the investment arm of Suzhou Industrial Park. Founded in 1996, Zhenkunhang operates an e-commerce marketplace that sells industrial products such as tools and consumables for maintenance, repair and operation.
Canada-based smart thermostat producer Ecobee closed a $97m series C round after securing C$47m ($36m) in an extension that featured power company AGL Energy. It had initially raised $61m in the round, led by Energy Impact Partners, a private equity firm backed by AGL, and featuring the Amazon Alexa Fund, an investment vehicle of e-commerce firm and cloud computing provider Amazon. Caisse de dépôt et placement du Québec and Business Development Bank of Canada, both government-backed financial institutions, also joined the round. Founded in 2007, Ecobee has developed a smart thermostat that measures room temperature and detects how many people are in a room. The company has also introduced a smart light switch.
US-based electrical generator producer EtaGen completed an $83m series C round, which featured wind turbine services provider KCK Group and energy company American Electric Power, UK-listed energy utility Centrica as well as oil and gas company Statoil. Centrica and Statoil took part through their Centrica Innovations and Statoil Energy Ventures units. Founded in 2010, EtaGen provides linear generator systems to commercial business customers which produce electricity by combining air and fuel to push magnets through copper coils. The systems are scalable and come in 250kW and 750kW packages.
US-based drone technology producer PrecisionHawk raised $75m in a round featuring a number of corporate venturers, including energy company Exelon. Mass media group Comcast, Exelon and semiconductor technology provider Intel invested through respective subsidiaries Comcast Ventures, Constellation Technology Ventures and Intel Capital. Agribusiness Syngenta, chemicals producer DuPont and telecoms firms Verizon and NTT Docomo, meanwhile, participated through their Syngenta Ventures, DuPont Ventures, Verizon Ventures and NTT Docomo Ventures units. Automotive manufacturer Yamaha Motor and insurance company USAA also chipped in. Founded in 2010, PrecisionHawk has created an enterprise software platform that can be used to control unmanned aerial vehicles and enable users to process, model and analyse data collected by the drones. The software also offers the ability to fly drones on autopilot.
Germany-based energy storage system developer Sonnen completed a €60m ($70m) funding round led by Shell Ventures, Shell’s corporate venture capital arm. The identities of the other participants in the round were not confirmed, but Sonnen CEO Christoph Ostermann stated that it received backing from all its investors. Founded in 2010 as Sonnenbatterie, Sonnen has created a home energy storage and management system designed to work in tandem with solar panels. It also runs a community scheme where owners of its systems can share their surplus solar energy to save money.
Singapore-based cleantech developer Sunseap obtained S$75m ($56m) from energy company Banpu in a series C extension, bringing the round’s total to at least $60.8m. Shell Ventures supplied an undisclosed sum as part of a partnership agreement to develop solar projects in the Asia-Pacific region. Sunseap had raised a first $4.8m tranche from a consortium led by building maintenance company IsoTeam. Sunseap operates solar energy systems, providing renewable energy to its clients through solar farms. The company is also working on an energy management platform and is looking into the use of batteries.
Commonwealth Fusion Systems (CFS), a US-based fusion power technology developer emerging from Massachusetts Institute of Technology’s The Engine accelerator, raised $50m in funding from energy supplier Eni. The company is hoping to attract additional investors, though a target size for the round was not revealed. CFS is working on fusion technology, which imitates the process by which the sun produces energy. Researchers have so far failed to create a workable approach to fusion power at scale. Theoretically it offers unlimited carbon-free safe energy.
There were other interesting deals in emerging energy-focused businesses that received financial backing from corporate investors from other sectors.
Enerkem, a Canada-based developer of a process that converts waste to biofuel, secured C$280m from investors including waste management services provide Waste Management of Canada and industrial conglomerate Sinobioway. Financial services firm National Bank of Canada also took part. Founded in 2000, Enerkem produces biofuels and chemicals such as methanol and ethanol from solid waste using a proprietary system.
China-based business-to-business fuel trading platform Zhaoyouwang secured $150m in a series C round co-led by logistics services provider GLP and private equity firm Rainbow Capital. SIG Asia Investments, a subsidiary of technology and trading firm Susquehanna International Group, also took part, among other investors. Founded in 2015 as 51zhaoyou.com, Zhaoyouwang runs an online marketplace where enterprise customers can trade diesel, gasoline and kerosene. The platform also offers fuel-related logistics and financial services. The company is currently active in more than 50 Chinese cities.
Automotive manufacturer Volkswagen committed $100m to US-based advanced battery developer QuantumScape as part of a strategic collaboration deal. Founded in 2010 as a spinout from Stanford University, QuantumScape is working on solid-state batteries that use solid electrolytes, as opposed to the liquid or polymer electrolytes in lithium batteries. The technology could be used to create batteries with a higher energy density, equating to increased capacity, making them more compact, safer to use and quicker to charge.
Industrial technology and appliance producer Siemens and lithium-ion battery manufacturer Amperex Technology participated in a $70m series D round for US-based advanced battery technology developer Sila Nanotechnologies. Siemens invested through its Next47 unit. Venture capital firm Sutter Hill Ventures led the round. Founded in 2011, Sila has developed silicon-dominant anode technology that can be inserted into existing battery manufacturing systems, replacing graphite and allowing for higher density in battery cells. The materials are intended for use in batteries serving the portable electronics, electric vehicle, grid-scale energy storage and, eventually, battery-powered flight markets.
France-based battery technology developer Forsee Power raised €55m from diversified conglomerate Mitsui, private equity firm Idinvest Partners and the EU-owned European Investment Bank. Forsee develops, builds, installs and maintains smart lithium-ion battery systems for electric transport, energy storage, and portable and mobile equipment producers. The company also provides leasing options through a partnership with Neot Capital.
Exits
Corporate venturers from the energy sector completed five exits between September last year and August this year, including four acquisitions and one IPO. On a calendar year-on-year basis, GCV reported four exits in 2017, the same as the number tracked in 2015. Given the limited number of exits with reported sizes, it is hard to draw a conclusion on trends in terms of the total estimated exited capital.
Bloom Energy, a US-based fuel cell energy system producer backed by energy utility Eon, raised $270m in its IPO on the New York Stock Exchange. The company issued 18 million shares priced at the top of its $13 to $15 range. Founded in 2001 as Ion America, Bloom Energy provides a stationary power generation device called the Bloom Energy Server, which can produce baseload power from flexible lithium-ion batteries at any time. The systems are usually used to supplement renewable energy systems at corporate buildings. Bloom often partners with utilities that purchase the systems to charge users directly for the electricity they generate.
Lock manufacturer Assa Abloy agreed to acquire US-based smart lock producer August Home for an undisclosed amount, enabling a number of corporates to exit. Those included energy supplier AGL, insurance firm Liberty Mutual, Comcast Ventures and Qualcomm Ventures, respective subsidiaries of telecoms company Comcast and chipmaker Qualcomm. SanDisk Ventures, CAA Ventures and SingTel Innov8, the corporate venturing units of data storage provider SanDisk, talent agency CAA and telecoms group SingTel, and Japanese telecoms company KDDI were other exiting investors. Founded in 2013, August Home provides smart locks operated through mobile devices. The company’s products are compatible with Google Home, Amazon Alexa, Apple HomeKit and other smart home hubs.
KDDI agreed to acquire US-headquartered solar power system provider and portfolio company Fenix International for an undisclosed amount, providing exits to industrial group Schneider Electric and telecoms firm Orange. Founded in 2009, Fenix provides small-scale solar energy systems to customers in developing nations. The company operates i mainly n Uganda, where it has some 140,000 customers, but is also present in Zambia and intends to expand to other African nations.
NewMotion, a Netherlands-based electric vehicle charging station operator backed by vehicle distributor AutoBinck, was acquired by Shell for an undisclosed amount. AutoBinck previously contributed to a funding round of undisclosed size alongside energy distributor Alliander, sustainable technology holding company Tendris and Entrepreneurs Fund. Founded in 2009, NewMotion has more than 50,000 charging points in 22 countries. The stations draw their power primarily from renewable energy sources, and corporate clients with vehicle fleets can track each driver’s use through a cloud-based platform.
SpaceTime Insight, a US-based industrial IoT developer backed by Eon and IT services provider NEC, was acquired by communications technology producer Nokia for an undisclosed amount. Founded in 2008, SpaceTime Insight has developed a real-time visual analytics platform that relies on machine learning and industrial IoT applications to automate the optimisation of physical assets and predict asset failure across large networks. Nokia expects the acquisition to strengthen its IoT software and analytics offering and enable it to enter verticals such as energy, logistics, transportation and utilities.
GCV also reported a number of exits from emerging energy-related enterprises that involved corporate investors from other sectors.
Consumer electronics producer Samsung and sensor manufacturer TE Connectivity exited New Zealand-based wireless charging developer PowerbyProxi following its acquisition by computing company Apple, reportedly for at least $100m. While the exact figure was not confirmed, the deal’s minimum value was confirmed by the New Zealand government’s Overseas Investment Office. Founded in 2007 as a spinout from University of Auckland, PowerbyProxi has been developing wireless charging technology for a range of battery powered devices including sensors, robotics and medical equipment.
BP agreed to acquire Chargemaster, a UK-based operator of a network of electic vehicle charging points, for an undisclosed amount, allowing automotive manufacturer BMW to exit. Founded in 2008, Chargemaster designs, builds and installs chargers, operating a 6,500-strong network of charging points across the UK, both public and home systems. It generates revenue through a mix of subscription and pay-as-you-go fees. BP made the acquisition to support the installation of charging points on its garage forecourts.
Funds
Between September 2017 and August 2018, corporate venturers and corporate-backed VC firms investing in the energy sector secured over $2.39bn in capital via 19 funding initiatives, which included 10 VC funds, five new venturing units, two accelerators, one incubator and one other initiative.
On a calendar year-to-year basis, funding initiatives decreased slightly in number from 27 in 2016 to 25 last year. Total estimated capital also went down from $3.86bn in 2016 to just $513m in 2017, but it seems to be rebounding in 2018 with $2.47bn raised by the end of August.
China-based oil, gas and chemicals supplier Sinopec formed investment firm Sinopec Capital, equipped with RMB10bn. Sinopec Capital will invest in emerging areas such as new energy, advanced materials, artificial intelligence and smart manufacturing and supply chain technologies. Although Sinopec did not state explicitly that the vehicle will invest in startups, its activities will cover equity investments and management as well as project investments and asset management. The fund will get 49% of its capital from oil and gas refiner Sinopec Corp and the remaining 51% from parent company Sinopec Group, which also produces a range of petroleum-related products.
Total Energy Ventures, the corporate venturing subsidiary of oil and gas company Total, agreed to form a RMB1.5bn fund in partnership with two other investors – private equity firm Cathay Capital and Hubei High Technology Investment Guiding Fund Management, a fund overseen by the government in the Chinese province of Hubei. The two will provide RMB300m each for the fund. Cathay Smart Energy Fund will target China’s new energy sector and will invest in areas such as renewable energy, energy storage, distributed energy, smart energy, internet-connected energy and low-carbon technologies.
UK-based venture capital fund AP Ventures was launched with $200m, half of which came from Anglo American Platinum, a subsidiary of mining company Anglo American. The rest came from AP Ventures’ other cornerstone investor, South African government-owned asset management firm Public Investment Corporation. AP Ventures will invest in companies developing technologies or products that make use of platinum group metals, including systems that can help integrate renewable energy or mitigate the effects of population growth. Areas that could be covered by this brief include hydrogen infrastructure, energy storage, fuel cell-based electric mobility, water purification, medical devices, sensors and durable electronics. The fund will be based in London.
US-based venture capital firm Westly Group raised $130m for its latest fund, with several corporates among the limited partners. Duke Energy and RWE Innogy were among the anchor investors, and investors include fellow energy utilities CLP Group, American Electric Power and Chubu Electric Power as well as tyre manufacturer Bridgestone. Founded in 2007, Westly focuses on energy, transportation and smart building technology developers. The fund will provide between $3m and $5m per investment.
Industrial equipment maker Armstrong Industrial Corporation was one of nine partners joining Spring Seeds Capital, the venture capital branch of government agency Spring Singapore, for a S$200m co-investment scheme. Spring Singapore put up S$100m of capital for the initiative, which will provide funding for startups over eight years. The partnership will invest in advanced manufacturing and engineering, health and biomedical sciences, and urban and sustainability technology developers.
Czech Republic-based energy utility Čez and the EIB agreed to invest €50m each in Inven Capital, the venture capital fund formed by Čez. The funding will be aimed at cleantech and smart energy developers, particularly small and medium-sized enterprises as well as midcaps – companies with a market capitalisation of $2bn to $10bn. Inven Capital generally invests between €3m and €20m and targets technologies such as distributed power generation, energy efficiency, energy storage and flexible transmission, clean transport and smart cities.
Chevron Technology Ventures (CTV), the strategic investment arm of the oil and gas producer, launched the $100m Future Energy Fund to back energy transition technology. CTV was founded in 1999 and targets developers of technologies such as emerging materials, power systems, water management, IT, and oil and gas production improvement. It also invests in strategically relevant VC funds. Future Energy Fund will concentrate on energy generation technologies that generate lower carbon emissions, or which can reduce emissions from oil and gas production (see interview).
Navitas Capital, a US-based venture capital firm focusing on the real estate and construction industries, closed its second fund at $60m. Investors include construction materials supplier Saint-Gobain, real estate management and investment firms JLL and Divco West Real Estate Services, as well as apartment owner and manager Equity Residential. Navitas targets energy and software companies in the construction and real estate sectors and invests up to $5m in developers of technologies such as smart systems, energy and heat efficiency, advanced materials and workflow management software.
India-based VC firm Bharat Innovation Fund (BIF) raised $50m from investors including electronics producer Philips, insurance provider ICICI Lombard and electrical equipment manufacturer Bajaj Electricals. Financial services firm RBL Bank and the Indian government-owned development financial institution Small Industries Development Bank of India also contributed, the latter through its Fund of Funds for Startups. BIF, an affiliate of Indian Institute of Management Ahmedabad’s Centre for Innovation Incubation and Entrepreneurship, is targeting a $100m final close, according to press reports.
People
Cory Steffek left Saudi Aramco Energy Ventures (SAEV), the corporate venturing arm of petroleum producer Saudi Aramco, where he was a managing director, to join US-based private equity investment platform Ara Partners, which focuses on lower middle-market investments in the energy, industrial and infrastructure industries. Steffek joined SAEV in 2012 and was based in Houston, Texas.
Jonathan Tudor left BP, where he was managing director of its BP Ventures unit, to head a corporate venturing subsidiary of Centrica. Tudor was venture director at Castrol InnoVentures, a division of BP, before its reorganisation into BP Ventures. He previously worked at lubricants provider Castrol. Following three years at glass manufacturer Schott, Tudor’s initial move into investing was as an investment director at government technology contractor Qinetiq’s venture capital arm, Qinetiq Ventures, from 2002 to 2007.
Girish Nadkarni, formerly president of Switzerland-based power and automation group ABB’s corporate venturing unit, ABB Technology Ventures, has joined France-based Total to lead its corporate venturing subsidiary TEV. Nadarkani moved to Paris as president at TEV. Francois Badoual, former chief executive of TEV in France, moved to San Francisco as president of Total New Energies Ventures USA. Before setting up ABB Technology Ventures, Nadkarni was senior vice-president of ABB’s robotics division. He also worked at venture capital firm View Group, and as an entrepreneur at startups VSimplify and Uniprise.
Lisa Lambert, former managing partner at venture capital firm Westly Group, rejoined the corporate venturing community as senior vice-president and chief technology and innovation officer at UK and US-listed energy utility National Grid. Before joining Westly two years ago, Lambert worked at Intel for 19 years as vice-president and managing director of corporate venturing unit Intel Capital’s software and services group. She was also founder and managing director of Intel Capital’s Diversity Fund.
Imran Kizilbash left his position as vice-president and treasurer at US-based oil services provider Schlumberger. A former colleague said he would remain close to Schlumberger Technology Investments (STI) after his departure. STI expanded into categories such as renewables, software and the IoT under Kizilbash’s leadership.
After four years as deputy director of corporate venture capital at Engie, Eric Vincent has become a partner at France-based venture capital firm Demeter Partners. Earlier this year, the city of Paris chose Demeter to manage its €200m Paris Green Fund, making minority investments in buildings, mobility, energy, air, waste and digital technologies. At Engie, Vincent was deputy director of Engie New Ventures, investing in decentralised power generation, alternative fuels, energy management, smart grids, energy efficiency, home comfort, mobility and smart cities technologies.
Swati Dasgupta has left Next47, a subsidiary of industrial conglomerate Siemens, to be a director at National Grid Ventures, the strategic investment arm of National Grid Group. The unit oversees investments in technology startups, energy projects and partnerships on behalf of its parent. Before joining Next47 as a director in 2017, Dasgupta was a director of external innovation at Siemens’ technology-to-business unit from 2013. She previously spent nearly a decade as a partner at IBM Venture Capital Group, a corporate venture capital subsidiary of the computing technology producer.
Mike Adams became a US-based director of corporate ventures at Germany-based air and water filter provider Mann&Hummel Group. Adams was previously a principal for just over four years at 8 Rivers Capital, an energy, sustainability, transport and communications technology developer. Before that he was managing director of technology ventures at energy provider Constellation Energy.
VC firm Aster Capital hired Jérome Joaug as a principal on its investment team to focus on the mobility, energy and industry sectors. Joaug is a serial entrepreneur who co-founded graphene producer Cambridge Nanosystems, a spinout from University of Cambridge, and IoT platform Nymbly. He is a graduate of both Cambridge and École Polytechnique. Aster Capital emerged out of Schneider Electric Ventures, the corporate venturing arm of industrial group Schneider Electric, becoming independent in 2010 and attracting equipment provider Alstom and chemicals company Solvay as limited partners.
Christina Karapataki left her venture principal position at Schlumberger Technology Investments, to join venture capital fund Breakthrough Energy Ventures, an investor-led fund made up of members of the Breakthrough Energy Coalition, guided by scientific and technological expertise and committed to “investing patiently in developing new ways to live, eat, travel and build”. The coalition’s leadership is made up of entrepreneurial investors and scientists. The fund targets early-stage innovations in emissions-free energy, agriculture and consumer goods. While at Schlumberger, Karapataki was responsible for sourcing opportunities, technical evaluation and structuring joint development agreements, in addition to overseeing about half of Schlumberger’s portfolio companies.
University and government backing for energy businesses
By the end of August this year, almost as many rounds had been raised by university spinouts (19) in the energy sector as in the entirety of 2017 (20). The estimated total capital deployed in those rounds was $179m, considerably higher than last year’s $45m.
SolidEnergy Systems, a US-based lithium-metal battery technology developer spun out of Massachusetts Institute of Technology, closed a $34m series C round. The company did not disclose the participants in the round, which it said increased its overall funding to more than $50m since it was spun out in 2012. SolidEnergy is working on rechargeable semi-solid lithium-metal cells that could be produced using existing lithium-ion manufacturing technology. The company plans to expand its manufacturing capability both internally and through cell manufacturing partners.
UK-based energy distribution management software developer Origami Energy closed an £18.6m ($26.3m) series B round with a consortium featuring Cambridge Innovation Capital, the patient capital fund affiliated with University of Cambridge. The round also featured power production services provider Aggreko, as well as unspecified subsidiaries of shipping group Fred Olsen and investment firm Octopus Ventures. Founded in 2013, Origami Energy has developed technology to monitor and control energy distribution flows remotely in real-time. The system can facilitate the integration of renewable energy and batteries, while helping wholesalers spot opportunities during day-to-day market trading.
Government investments in energy enterprises, reported by our sister publication, Global Government Venturing, reached a peak at 54 rounds in 2015 but have since declined to 36 and 35 in 2016 and 2017 respectively. However, the estimated total capital in such rounds reached $2.77bn last year and appears to be on an upward path. So far this year, GGV has reported only nine government-backed rounds in emerging energy businesses, but the estimated capital involved amounts to $1.02bn. Innovations in the energy sector are naturally attractive to government and related investors, as the sector is instrumental for growth of virtually all other industries.
Clean energy technology developer Cypress Creek Renewables, a US-based clean energy technology company, received investment worth $200m from a group that included Singaporean government agency Temasek. Founded in 2014, Cypress Creek Renewables develops solar energy facilities, using a data-driven approach, and partners landowners, communities, utility companies and other stakeholders to develop underutilised land on which it builds solar farms ranging from 2MW to 20MW.
Canada Pension Plan Investment Board agreed to pay $144m for a 6.3% stake in ReNew Power, an India-based renewable power producer. The board, which manages funds on behalf of the government’s Canada Pension Plan, acquired the shares from the multilateral Asian Development Bank, which had invested $50m in ReNew as part of a $140m round in 2014. ReNew, which is also backed by corporate joint venture Jera, develops renewable energy projects and has built a 2GW portfolio of wind farms, utility-scale solar plants and rooftop solar power systems.