Dawn Lippert’s Post

Monolith, a clean-energy startup, is facing serious financial hurdles that could jeopardize its innovative ambitions. Although backed by significant private investment and a potential $1 billion government loan, uncertainty looms large in the clean-energy landscape as Monolith struggles with cash flow and production challenges. Their technology, which aims to produce low-emission carbon black and ammonia, is still grappling with scaling issues and frequent operational disruptions. This situation raises a critical question about the effectiveness of taxpayer-funded initiatives: Are we investing in a sustainable future or gambling with public dollars in an uncertain market? Monolith's plight reflects broader trends affecting the clean-energy sector. As companies face escalating costs and long timelines to profitability, the industry must find a balance between innovation and financial viability. Will continued government support catalyze true advancements, or is it time to rethink our approach to funding? Let's engage in this vital conversation!

🌟Important updates for #CleanEnergy startups! The Biden-Harris Administration just released the Climate Capital Guidebook (🔗: buff.ly/3wXP936), providing a comprehensive map of federal funding opportunities. Check it out 🔗: buff.ly/4bGG7Xx to learn more about other key initiatives and resources from the Biden-Harris Administration supporting clean energy startups. #ClimateAction #Innovation #CleanTech #Sustainability

There has been much hype and attention surrounding first-of-a-kind projects and financing, but we need to help startups get there first. Enter the Elemental Excelerator D-SAFE, which was announced last week. What is it?  - The D-SAFE is essentially a convertible note, where the capital is used for development activities. - The D-SAFE can be converted into equity or paid back (treated as debt). Why does it matter? - Lower cost of capital compared to equity - Aligned incentives (equity investors can de-risk their investment) - Similar to how Enduring Planet provides contract advances (providing up to 80% of a receivable today), the D-SAFE provides development capital, which de-risks future investment My thoughts: - This mechanism is crucial as many startups are figuring out how to finance the missing middle. - Some equity investors may contribute to the fund as it will enable them to de-risk their investments, but I believe that project finance and infrastructure funds will be the primary funders of the D-SAFE, as this is a way to build and qualify a pipeline of future projects. - Elemental's announcement mentions "using creative structures such as agreeing to reduce the cost of capital and associated dilution as project and impact milestones are realized," but what does this mean in practice? How will the cost of capital compare to other options? Please reach out if you want to discuss the D-SAFE or other innovative structures that exist to help startups finance the missing middle.

Founders Guide to Working with the U.S. Department of Energy (DOE). Great work by Sightline Climate (CTVC)! What stood out to me is: 1. DOE's Focus Shift: From R&D to deployment, prioritizing practical implementation of clean energy technologies. 2. Key Programs: Access $20B from the Office of Clean Energy Demonstrations and $390B from the Loan Programs Office for large-scale projects. 3. Innovation Support: Utilize ARPA-E for high-risk, high-reward R&D funding. 4. National Labs: Engage with 17 labs and programs like LEEP for commercialization opportunities. 5. Funding Opportunities: Look for RFIs, NOIs, and FOAs to identify and apply for DOE funding. First Practical Step? Explore the DOE's Visual Patent Search to find technologies ripe for commercialization. #startups #electrification #entrepreneurship #founders https://lnkd.in/eukgA8Ev

Where to Build Your Climate Tech Startup: Goldman's $74Trillion Green Tech Roadmap? In the fast-evolving climate tech landscape, knowing where to focus your entrepreneurial energy can be the difference between building the next breakthrough solution and getting lost in the noise. A new Goldman Sachs Research report has just mapped out a $74 trillion investment opportunity through 2070 - and for green entrepreneurs, it's essentially a treasure map of where capital will flow over the coming decades. https://lnkd.in/gHMdMrHA

🚀 STOA Vintage II 🚀 As the financing needs for sustainable infrastructures in emerging countries continue to rise amidst tightening global financial conditions, Groupe Caisse des Dépôts (CDC) and AFD - Agence Française de Développement (AFD) have decided to reaffirm their support for STOA Infra & Energy, the impact fund I lead, created in 2017 to finance the development of sustainable and resilient infrastructures in Africa, Latam, and Asia. AFD's subscription to STOA's capital increase of €67.5 million, announced in February, marks the first step towards a gradual strengthening of the fund.   STOA is a unique financial instrument, blending economic profitability, private sector mobilization, and addressing global development challenges in line with France's solidarity investment policy under the impetus of the President of the Republic. Indeed, investments made by STOA alongside private actors enable the financing of profitable projects with high economic, social, and climate impact, contributing to the achievement of the Sustainable Development Goals (SDGs).   Over the past 6 years, €560 million have been invested in 19 equity investment operations in the energy, transport, telecommunications, and health sectors in emerging countries, particularly in Africa, where 64% of the investments are concentrated. Significant projects such as the NACHTIGAL HYDRO POWER COMPANY in Cameroon, the development of the fiber services provider MetroFibre Networx in South Africa, and the extension of the Sao Paulo metro Linha Uni have been financed by STOA.   As STOA aims to contribute to the emergence of sustainable and resilient economies, 66% of its investments have a high impact on achieving the SDGs, and 73% have a climate co-benefit. These projects have also helped to structure the activity and build a close-knit team spread over three continents, an enriching experience that has provided a solid foundation for the new chapter, with some changes in the fund's governance as a result of the maturity STOA has acquired.   In light of these promising initial results, AFD and CDC decided in 2023 to enter a second phase of STOA's development and increase the funds allocated to €300 million, bringing the total to €900 million. Investments could thus reach over €1.1 billion by 2027, thanks to reinvestment of a portion of the profits and capital gains generated by STOA's portfolio. The total amount allocated to the new projects planned for the period 2024-2027 will be €500 to €600 million.   AFD's subscription constitutes the first step in this ramp-up, which should rebalance AFD and CDC's equity participation in the fund, with both planning to reinvest €200 million and €100 million respectively, allowing AFD to hold one-third of the fund's capital. An important mark of confidence for this historic milestone.   We are proud to open this new chapter and to strengthen STOA’s contribution to shape a resilient and prosperous world for generations to come!

Need a #guarantee to debt finance your #FOAK plant? 🏭 Look no further than this database of public guarantee programs compiled by Lennart Wendt. 🚀 #SpoilerAlert: Most public guarantees tend to be surprisingly expensive, slow to obtain, and highly bureaucratic. And only a very small number of cases fit their requirements. But hey, that's still a step in the right direction! 🍀 #climatetech #FOAKFinance #CleantechGuarantees

Innovation Zero Day 2: A fusion of vision and action. Greg Jackson, CEO of Octopus Energy, was introduced as THE disrupter of the energy industry in the UK. He opened with a powerful statement about what entrepreneurship means to him . . . "You have to do something that no one else sees or believes in." This resonated deeply with me, encapsulating the spirit of innovation and the bravery required to disrupt markets. One of the most compelling points Greg made was about the moral obligation we have to leverage technology to drive down energy costs. In a world where renewable energy is already the cheapest form of energy—and its cost continues to decrease—this goal is not only achievable but essential for creating a better future for all. Agility is everything. He also emphasised the need for supportive rules, regulations, and frameworks to facilitate this progress. The two significant barriers to building renewable energy infrastructure: planning and permitting, and gaining a connection to the grid - must be simplified. One of the most thought-provoking ideas Greg shared was the concept of incentivising communities to build wind turbines in their local areas to benefit from cheaper energy. Imagine a world where communities are empowered to take charge of their energy future, leading to a grassroots revolution in how we generate and consume energy. He also touched on the challenges posed by monopoly grids, using Slough's designated zone for data centres as an example. There isn’t enough electricity to service an expansion of these data centres, so no more can be built. UK-wide, lateral thinking is required. Other key takeaways were from financing innovation discussions . . .  Half of environmental infrastructure investment needs to come from private investors. The problem is that energy investment is currently going outside the UK. Global money is available. . . but apparently it can only be accessed if the funding buckets are flexed to accommodate the business models of new technology innovators. We need financiers to understand the bigger vision. Rhian-Mari Thomas OBE, CEO, of the Green Finance Institute, says policy is the enabler. Heba Bevan OBE, Founder and CEO, Utterberry says finance is one thing, but support for new ideas is needed, especially for SMEs. The good news is that money will flow when there is a strong demand signal from customers. That’s where we come in! #leadershipdevelopment #leaders #leaderscreateleaders #builtenvironment #changemaker  #enabler #enablingchange #buildsuccess #declare #visionary #visionaryleader #projectlead #projectleadership #supportleaders #emergingleaders #leadtheway #leadthechange #architectsofchange #architecturedesign #courageousleadership #womeninarchitecture #architects

Climate tech investment is off to a strong start in 2024, according to a new report from PitchBook. As reported by Tim De Chant at TechCrunch, Ascend Elements’ latest funding round was one of the largest of Q1 2024. It takes a lot of money to build an EV battery materials infrastructure in the United States and begin making #decarbonized cathode precursor (pCAM) in North America. Thanks to our investors and the U.S. Department of Energy (DOE), we’re just months away from producing pCAM at a massive, 1 million-square-foot commercial-scale facility in Kentucky. https://lnkd.in/gxy8RMVx