Startup News: Form Energy and Northvolt Lead Sustainable Power Sector
October 26, 2022

Startup News: Form Energy and Northvolt Lead Sustainable Power Sector

John Kimelman

Form Energy, Northvolt lead in sustainable power as Clean-Energy Tech outpaces other sector investments

The stock market may be giving a thumbs down to disruptive-technology stocks this year. But that hasn’t stopped prominent investors including Bill Gates, Volkswagen, and Goldman Sachs from pouring tens of millions of dollars into a slew of private companies that are on the cutting edge of clean-energy technology.

Among the companies attracting plenty of investment attention are Form Energy, a U.S. startup developing batteries that can store renewable power for days longer than current lithium-ion batteries, and Northvolt, a Swedish company that is making wood-based batteries sourced from Nordic trees. 

Form Energy recently announced a $450 million round of Series E financing from a group of investors including steelmaker ArcelorMittal and private-equity firm TPG Inc. And, Northvolt has raised almost $8 billion from dozens of investors since 2017, according to Bloomberg.

Then there’s Universal Hydrogen, a U.S. company building a hydrogen distribution and logistics network for aviation. Recently, American Airlines announced a strategic equity investment in the private company, which anticipates starting hydrogen deliveries for regional aircraft in 2025, with plans to expand its services to larger aircraft later in the decade. The investment supports American Airlines’ goal of reducing greenhouse gas (GHG) emissions by 2035 and achieving net zero GHG emissions by 2050. Several other aviation-related companies, including the venture-capital arms of JetBlue and AirBus, have invested in the hydrogen company.

Small wonder that investments in the clean-energy technology sector top the list of all technologies, according to the recently-released report by management consulting firm McKinsey & Co. According to McKinsey Technology Trends Outlook 2022, the $257 billion investment in clean energy technology last year outpaced the capital investments in all other tech sectors including artificial intelligence, Web 3.0, and the Metaverse.

Even the U.S. government has gotten into the act. Last week, the Department of Energy announced that 20 battery companies will receive a combined total of $2.8 billion to build and expand commercial-scale facilities. Among them are Sila Nanotechnologies, a developer of higher-density lithium-ion batteries. The DOE also recently announced that it’s investing $50 million in private companies that use nuclear fusion – the same process used by the Sun – to generate energy free of fossil fuels.

About the author: John Kimelman is a veteran financial journalist who has worked at Barron's and CNBC covering such topics as investing and commercial banking.

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PLEASE READ THESE IMPORTANT LEGAL NOTICES & DISCLOSURES

The information and material presented in this article is provided for your informational purposes only and does not constitute an offer by Forge Global, Inc., Forge Securities LLC or any of its affiliates (collectively, "Forge") to sell, or a solicitation of an offer to buy any securities and may not be used or relied upon in connection with any offer or sale of securities. An offer or solicitation can be made only through the delivery of final offering document(s) and purchase agreement and will be subject to the terms and conditions and risks delivered in such documents.

This article does not constitute an offer to provide investment advice or service. Registered representatives of Forge Securities LLC do not (1) advise any member on the merits or prudence of a particular investment or transaction, or (2) assist in the determination of fair value of any security or investment, or (3) provide legal, tax, or transactional advisory services. Securities referenced in this article may be offered by Forge Securities LLC, member FINRA/SIPC.

Forge Securities LLC is a wholly owned subsidiary of Forge Global, Inc. Certain affiliates may act as principals in such transactions. Forge Data LLC is an affiliate of Forge Global, Inc. and Forge Securities LLC.

Investing in private company securities is not suitable for all investors. An investment in private company securities is highly speculative, involving a high degree of risk, and investors should be prepared to withstand a total loss of your investment. Private company securities are also highly illiquid and there is no guarantee that a market will develop for such securities. Each investment also carries its own specific risks and investors should conduct their own, independent due diligence regarding the investment, including obtaining additional information about the company, opinions, financial projections and legal or investment advice. Accordingly, investing in private company securities is appropriate only for those investors who can tolerate a high degree of risk and do not require a liquid investment.