FirstEnergy, a New York-listed electric distribution company, has made its second commitment to US-based venture capital firm Energy Impact Partners (EIP).
As a limited partner in EIP Fund II, FirstEnergy joins with other utilities and companies to provide more than $1bn in capital commitments to invest in heating and air conditioning, transportation electrification, energy storage and carbon capture technology, grid hardening, cyber security, and smart home and cities programs.
This marks FirstEnergy’s second investment with EIP. In July, FirstEnergy backed EIP’s Elevate Future Fund, which is focused on expanding venture capital access and opportunities for underrepresented sustainable energy entrepreneurs.
Steven Strah, FirstEnergy president and CEO, said: “Rather than having to develop a new product or program on our own, we can jumpstart the process by implementing a pilot program or partnership using technology from an EIP portfolio company to assess potential customer benefits before deploying on a wider scale.”
FirstEnergy’s investments in EIP funds were coordinated through the company’s Emerging Technologies organisation led by executive director Meghan Geiger Beringer.
The commitments are part of FirstEnergy’s plan to achieve carbon neutrality by 2050, with an interim goal of achieving a 30% reduction in greenhouse gases within the company’s direct operational control by 2030.
Climate tech investment is soaring this year — but might not be going to the right areas, according to accountants PwC.
The average size of a climate tech deal almost quadrupled to $96m in the first half of 2021, up from $27m one year prior, PwC said in its State of Climate Tech 2021 report, as the number of active climate tech investors rose from less than 900 to more than 1,600 in the first half of 2021.
Investment in companies developing technology to try to combat the climate crisis grew to $87.5bn in the year leading up to June 30.
However, PwC said the five main solutions for carbon emissions, solar power, wind power, food waste technology, green hydrogen production, and alternative foods/low greenhouse gas proteins, received just 25% of the climate tech investment between 2013 and June 2021. This was despite technologies in these areas representing over 80% of the emissions reduction potential by 2050.
The lion’s share of climate tech funding, some $58bn, went to mobility and transportation companies, PwC said.
