A Goldman Sachs report reveals the top 30 startups in three booming clean-energy industries

Benji Jones,Benji JonesMar 20, 2020, 18:07 IST

VC investment in clean-energy technologies swelled to more than $10 billion last year, according to a new research report from Goldman Sachs.
Since 2016, the sector has grown 37% per year, the bank says, and deal sizes have increased.
The firm says it expects to see "more and larger deals" across a variety of technologies including carbon removal, hydrogen power, and what it calls "next-generation" nuclear energy.
Business Insider compiled a list of the top companies in each of those three sectors, using data from the Goldman Sachs report. They're ranked by the size of the most recent deal.
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Venture capitalists poured more $10 billion into the clean-energy industry last year, according to a recent report from Goldman Sachs. Meanwhile, global VC investment fell by 16%.

The report reinforces the idea that the clean-tech industry - pronounced dead around 2008 - has nearly recovered.

Since 2016, investment in the sector has grown by an average of 37% per year, the bank says. And it expects further investment in the years to come, as VCs search for "answers to climate change." However, the spread of the novel coronavirus may throw that growth into question.

Goldman also found that deal numbers have remained relatively flat, suggesting that startups are closing larger funding rounds. The number of early-stage deals is falling, too - another sign that the clean-energy industry is maturing.

In the coming years, Goldman expects to see "more and larger deals" across a variety of technologies including carbon removal, hydrogen power, and what it calls "next-generation" nuclear energy.

The firm published a list of the top 10 private companies in each of those three segments, based on the size of the companies' most recent deals. The companies are listed by industry below, in order of smallest to largest deals.

Unless otherwise noted, the data come from Goldman Sachs.

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'Next generation' nuclear technologies

Nuclear power makes up about 8% of the energy Americans consume, according to the US Energy Information Administration, and all of it comes from fission reactors.

Fission generates energy by splitting atoms apart, whereas fusion - the target of most recent VC investment - creates energy by fusing atoms together, which experts say is less dangerous.

According to Goldman Sachs, nuclear energy has attracted more investor interest over the last three years. VC funding was up more than 30%, year-over-year, since 2017, reaching about $250 million in 2019.

Note: Business Insider removed three companies from the Goldman Sachs list because they made products for other industries. We replaced them with other startups using data from PitchBook.

10. Helion Energy* - $11 million

Last round: $11 million; July 6, 2o15
Total raised: $12 million, according to PitchBook
Investors: Peter Thiel, Y Combinator, and the Department of Energy, per PitchBook

9. Deep Isolation - $15 million

Last round: $15 million; January 7, 2020
Total raised: $29 million, according to PitchBook
Investors: Berkeley SkyDeck, an accelerator

8. Ultra Safe Nuclear - $17 million

Last finance round: $17 million; February 7, 2020
Total raised: $17 million, according to PitchBook
Investors: America's Seed Fund

7. Terrestrial Energy - $17.2 million

Last finance round: $17.2 million; March 22, 2019
Total raised: $38 million, according to PitchBook
Investors: Danny Way, Sustainable Development Technology Canada

6. First Light Fusion - $33 million

Last finance round: $33 million; February 6, 2020, per the Wall Stree Journal
Total raised: $73 million, per PitchBook
Notable investors: Invesco, IP Group, Oxford Sciences Innovation

5. General Fusion - $65 million

Last finance round: $65 million; December 16, 2019
Total raised: $309 million, per PitchBook
Notable investors: Jeff Bezos and Microsoft, per PitchBook

4. Tokamak Energy* - $87 million

Last finance round: $87 million; January 20, 2020
Total raised: $162 million
Notable investors: The billionaire Hans-Peter Wild, who owns the juice brand Capri Sun

3. Commonwealth Fusion Systems (CFS) - $115 million

Last finance round: $115 million; June 27, 2019
Total raised: $180 million, per PitchBook
Notable investors: The Bill Gates-led fund, Breakthrough Energy Ventures; Italian energy giant Eni; Khosla Ventures

2. LeadCold Reactors - $200 million

Last finance round: $200 million; January 27, 2017
Total raised: $218 million, per PitchBook
Notable investors: Essel Group, KIC InnoEnergy, KTH Innovation

1. TAE Technologies* - $375 million

Last finance round: $375 million; May 20, 2016
Total raised: $772 million, per PitchBook
Notable investors: Google's parent company, Alphabet; Italian energy giant Enel; and Goldman Sachs, per PitchBook

*Not included in Goldman Sach's list.

Carbon removal

Climate models are clear: To limit warming to 2 degrees celsius (3.6 degrees Fahrenheit), relative to pre-industrial levels, we'll need carbon capture and storage - tools that essentially suck carbon dioxide out of the air and store it somewhere.

A raft of startups are working on these strategies, and many of them are backed by oil and gas companies like Shell. And for good reason: Injecting carbon dioxide into wells is a common way to extract more oil. Plus, many energy giants have made commitments to reduce their carbon emissions.

Carbon capture tech is still in the "early stages" of VC funding, Goldman Sachs writes, "with deal count and capital invested still small." In 2019, there were 14 deals, according to the bank, amounting to a total of about $200 million.

These are the top private companies, according to Goldman Sachs, based on their latest deal size.

10. Pachama - $4 million

Last finance round: $4 million; January 3, 2020
Total raised to date: $8 million, per PitchBook
Notable investors: Ataria Ventures, Atomico, Global Founders Capital, Y Combinator

9. C-capture - $5 million

Last finance round: $5 million; December 21, 2018
Total raised to date: $5 million, per PitchBook
Notable investors: BP's venture arm, BP Ventures, and the US Department of Energy

8. Calera - $11 million

Last finance round: $10.6 million; December 13, 2011
Total raised to date: $229 million, per PitchBook
Notable investors: Vonid Khosla, Khosla Ventures, Peabody Energy

7. Carbon Clean Solutions - $16 million

Last finance round: $16 million; February 17, 2020
Total raised to date: $22 million, per PitchBook
Notable investors: Chevron's venture arm, Chevron Technology Ventures

6. Carbon Engineering- $19

Last finance round: $19 million; June 26, 2019
Total raised: $112 million, per PitchBook
Notable investors: Chevron's venture arm, Chevron Technology Ventures; Occidental Petroleum; and Bill Gates, per PitchBook

5. Newlight Technologies - $21 million

Last finance round: $21 million; March 28, 2019
Total raised: $80 million, per PitchBook
Notable investors: Metrix Capital Group (among other undisclosed backers)

4. Svante - $26 million

Last finance round: $26 million; June 25, 2019
Total raised: $45 million, per PitchBook
Notable investors: Chevron's venture arm, Chevron Technology Ventures; the Oil and Gas Climate Initiative, a fund led by oil giants; Mitsui; and Chrysalix Venture Capital, per PitchBook

3. Solidia Technologies - $31 million

Last finance round: $31 million; July 31, 2018
Total raised: $118 million, per PitchBook
Notable investors: Air Liquide Venture Capital; BP's venture arm, BP Ventures; French energy giant Total; and Kleiner Perkins, per PitchBook

2. Climeworks - $31 million

Last finance round: $31 million; August 28, 2018
Total raised: $35 million, per PitchBook
Notable investors: EIT Climate-KIC, Zurich Cantonal Bank

1. LanzaTech - $72 million

Last finance round: $72 million; August 6, 2019
Total raised: $503 million, per PitchBook
Notable investors: Mitsui, Seimens Project Ventures, and Khosla Ventures, per PitchBook

Hydrogen power

Hydrogen power is one of the fastest-growing segments of the clean-energy industry, according to Goldman Sachs. The industry saw year-over-year growth of 106% in 2018 and 30% in 2019, reaching about $300 million in investment last year. Most of that growth was driven by investment in one startup: Nikola Motor Company.

So, why hydrogen? The gas is a common industrial feedstock, used to make everything from ammonia to steel. It's also used in fuel cells, which can power cars and trains.

Hydrogen is considered "clean" because its only byproducts are water and heat. But more than 90% of the hydrogen we use today is extracted from fossil fuels, so analysts and experts see big carbon-reduction opportunities in creating what's called "green hydrogen."

These are the top private hydrogen power companies, according to Goldman Sachs, based on their latest deal size.

10. YC Synergy - $3 million

Last finance round: $3 million; November 30, 2017
Total raised: $3 million, per PitchBook
Notable investors: 23Seed

9. ZeroAvia- $3.3 million

Last finance round: $3.3 million; September 18, 2019
Total raised: $4 million, per PitchBook
Notable investors: Government of the UK, SystemiQ

8. H2Pro - $4 million

Last finance round: $4 million; October 29, 2019
Total raised: $9 million, per PitchBook
Notable investors: Contrarian Ventures; Hyundai's venture arm, Hyundai CRADLE

7. HydroT Technology - $4 million

Last finance round: $4 million; December 10, 2019
Total raised: Undisclosed
Notable investors: Nowogen, Shenzhen Center Power Tech Company, Zheshang Venture Capital

6. Joi Scientific- $4 million

Last finance round: $4 million; July 10, 2018
Total raised: $9 million, per PitchBook
Notable investors: 3737 North Capital and BlueSky Capital Partners

5. GenCell (Alternative Energy Equipment) - $10 million

Last finance round: $10 million; January 23, 2020
Total raised: $10 million, per PitchBook
Notable investors: Paz Oil Company, BIRD Foundation, and Landa Ventures, per PitchBook

4. Ergosup - $13 million

Last finance round: $13 million, February 18, 2019
Total raised: $19 million; per PitchBook
Notable investors: Air Liquide Venture Capital, AP Ventures, Demeter

3. Lhyfe - $13 million

Last finance round: $13 million; January 1, 2019
Total raised: $13 million, per PitchBook
Notable investors: Noria, Ocean Participations, Ouest Croissance Gestion

2. Ardica Technologies - $15 million

Last finance round: $15 million; May 31, 2018
Total raised: $22 million, per PitchBook
Notable investors: Chrysalix Venture Capital, United States Department of Defense

1. Nikola Motor Company* - $250 million

Last finance round: $250 million; September 3, 2019
Total raised: $635 million, per PitchBook
Notable investors: CNH Industrial, U.S. Department of Energy, ValueAct Capital Management, Wabco

*Nikola Motor Company is in the process of merging with VectoIQ Acquisition Corporation. After the merger is complete later this year, the new entity - Nikola Corporation - will be a publically traded company under the ticker NKLA.

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A Goldman Sachs report reveals the top 30 startups in three booming clean-energy industries

'Next generation' nuclear technologies

Carbon removal

Hydrogen power