In 2024, France, Sweden, and Germany stood out for attracting the biggest investments in the climate tech sector. France led with ELECTRA raising €304 million in Series B funding, followed by Stegra in Sweden, which secured €300 million in growth equity, and Germany’s Sunfire, which brought in €215 million in Series E. Dealroom data reveals that European cleantech companies raised €9 billion in the first three quarters of 2024, showcasing strong investor interest and a thriving market.
Tech Funding News saw some of the cleantech disruptors at The Business Booster 2024 by EIT InnoEnergy, the biggest cleantech event in Barcelona, on October 16–17. The first thing that comes to our mind is that the event was packed with innovations — hydrogen production and storage, waste-to-energy advancements, and new battery technologies to boost economic growth and expand the value chain. Let’s look closer at key disruptors.
One such venture, Rosi Solar from Grenoble, France, recycles solar panels while maintaining high-quality recovered materials. In November 2022, Rosi Solar secured €7.5 million in Series A funding from EIT InnoEnergy, ITOCHU, and the EIC Fund. “We developed a unique and patented process to recycle solar panels while maintaining high quality in the recovered secondary raw materials, such as aluminium, glass, copper, silicon, and silver. The materials can be reused to produce new solar panels or other market applications,” shared Yun Luo, CEO of Rosi Solar, in a conversation with TFN.
In Warsaw, EcoBean secured a total of €8.9 million in funding from EIT InnoEnergy, CofounderZone, COBIN Angels, Qemetica Ventures, and a Polish Government grant to transform spent coffee grounds into chemicals for pharmaceuticals, cosmetics, packaging, and feed additives. Their process extracts components like coffee oil, antioxidants, polylactide (PLA), lignin, and protein additives from coffee waste, reducing environmental impact and supporting the circular economy.
Slovenia’s Elaphe secured €6.3 million in total funding from Technology Park Ljubljana, the European Innovation Council, the European Commission, and EIT InnoEnergy, pioneering in-wheel electric motor technology to streamline vehicle design. “Elaphe’s technology saves space and reduces the vehicle’s weight by integrating the motor directly into the wheel, providing better handling control and enhancing the driving experience,” explained Gorazd Lampic, a co-founder of Elaphe, to TFN.
Innovative startups in energy, mobility, and beyond
Beyond these leading-edge startups, EIT InnoEnergy features over 200 innovative startups, 150 of which were presented during the event, focusing on sustainable energy solutions, including three unicorns – Northvolt, Freyer and Vulkan – in energy storage, green hydrogen, renewable energies, sustainable cities and buildings, the circular economy, and transport and mobility. These companies are projected to generate €110 billion in revenue and save 2.1 gigatonnes of CO2e by 2030, a testament to the industry’s potential. We talked to some of them and asked how their technology disrupts the market.
One example is Basquevolt, a European provider of next-generation solid-state lithium batteries, which raised €1.6 million in a seed funding round led by CDTI and EIT InnoEnergy, and InnoEnergy at a €50 million valuation. CEO Francisco Carranza told TFN, “We plan to develop further our technology, including a larger cell size of around half an amp-hour, equivalent to what car manufacturers need. We aim to start pilot production in 2025 and be fully commercialised by 2027.”
Another notable venture is Altris, a Sweden-based startup specialising in sodium-ion batteries. Altris secured SEK 150 million (approximately €13 million) in a Series B1 funding round, welcoming new investors like Clarios and Maersk Growth. The company plans to finalise its pilot production facility, paving the way for technology commercialisation in the coming years.
Closing the round is Swobbee, an integrated platform providing software and hardware for a battery-swapping network for light electric vehicles, which raised €1.6 million in a Series A funding round at a €30 million valuation. In a conversation with TFN, Ludwig Speidel, Swobbee’s CFO, said, “We plan to expand in the European, German, and US markets, particularly New York City, and establish ourselves as a software provider for charging and battery swapping networks.”
Is the cleantech bubble going to burst?
Europe’s cleantech landscape represents a bell curve, indicating a sharp investment increase leading up to a peak, followed by a potential decline or stabilisation. According to Dealroom data, the peak investment occurred in 2022, reaching $16.1 billion.
The drastic jump appeared in 2021, coinciding with the coronavirus pandemic—the investment increased from $5.1 billion in 2020 to $15.5 billion in 2021. This increase can be explained through several factors, including an increased focus on sustainability. The pandemic underscored the importance of sustainable and resilient systems, prompting more investments in clean technologies. Plus, investors grew confident in the profitability and necessity of cleantech solutions, driving more capital into the sector.
Picture credits: Dealroom
Elena Bau, co-founder and Innovation Director, commented on this trend when speaking to TFN: “The energy industry is transforming in technology, economy, and societal values. Investment in the energy sector has evolved – from initial scepticism to a bubble phase of heavy investment, to a cautious approach.”
EIT InnoEnergy supports the entrepreneurial team as a critical part of its investing strategy rather than just backing the technology or idea. Bau elaborates: “90% of startup failures are due to people and team issues, not technology or market. We do extensive due diligence on the team’s competencies and complementarity.”
Several challenges could impact the sector’s stability, including competition from the US and China, regulatory uncertainties, and the need for substantial infrastructure investments. The industry faces challenges, such as AI increasing energy demand while fostering energy transition. Volatile energy prices, climate change awareness, and energy security concerns influence market dynamics.
Current trends and support mechanisms suggest the EU cleantech sector will continue growing rather than experiencing a sudden burst despite challenges. Bau noted, “The energy industry is undergoing a complex transformation, requiring a balanced approach from investors focusing on long-term impact rather than short-term gains.”
Diversity remains a key challenge for Europe’s energy sector
Despite growth and innovation in the European cleantech industry, the energy sector faces a significant diversity challenge. In the EU, the share of startups with at least one female founder dropped from 13% in 2017 to 8% in 2022.
The EIT InnoEnergy portfolio has a larger share of female founders, around 15-20%. Elena Bau, co-founder and Innovation Director at EIT InnoEnergy noted, “Not many females are becoming entrepreneurs, especially in tech and energy. We need more female role models and stories to inspire other women in these sectors. Diversity and complementary teams in gender, background, and nationality are key for innovation and success.”
EIT InnoEnergy is addressing this challenge through its events and programs. It aims to raise visibility and create more opportunities for female entrepreneurs by bringing together the entire energy ecosystem —industry, investors, academia, and policymakers.
The future landscape
The European cleantech industry is set to transform, with AI as a key focus. Elena Bau explained, “While AI impacts the energy sector and increases energy needs, it’s also part of the solution, helping with grid management, mineral identification, and other applications that support the energy transition.”
The industry is developing technologies beyond AI for the entire energy value chain, from generation to storage to recycling. Companies are taking a comprehensive view of the energy ecosystem rather than focusing on isolated solutions. This approach is exemplified by CarbonID, a mobile app that converts attendees’ mobility options and travel lengths into carbon dioxide emissions, providing a way to track the carbon footprint of events like TBB2024.
Picture credits: Carbon Centrum
Cagri Selcuklu, CEO of Carbon Centrum, told TFN, “The app is fully automated, using phone sensors to gather data without human interaction or surveys. This provides a comprehensive and efficient data collection method.” By the end of TBB2024’s first day, the company had measured 75 tonnes of carbon emissions from the event, with 500,000 kilometres of mobility data tracked.
The holistic approach to supporting the energy innovation ecosystem, encompassing technologies, business models, and regulatory frameworks, will likely continue to shape the European cleantech sector’s future. Maintaining a balanced long-term perspective will be crucial as the industry evolves to sustain momentum and avoid a bubble burst.
This article is part of a partnership with EIT InnoEnergy. For partnering opportunities, contact akansha@techfundingnews.com or sales@techfundingnews.com.
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