Startup Trends: Increased investment fueling growth in private Clean Energy companies
According to the non-profit International Energy Agency, nearly $2 trillion will be invested in clean energy technologies and infrastructure worldwide by the end of this year. The United States’ share includes almost $315 billion of that investment with business and government entities fueling the surge.
In 2023, Amazon claimed that its portfolio of wind and solar energy investments was now large enough to power 7.2 million homes worldwide.
And two years prior, in November 2021, the U.S. government pledged nearly $75 billion in public funding for sustainable energy by signing the Bipartisan Infrastructure Law (BIL).
These substantial investments provide a signal of expected growth in the renewables industry. In fact, the U.S. Energy Information Administration indicated that renewables consumption grew 12.9% in the period from 2020 to 2023.
The increase in demand has generated investor interest in private companies such as Helion Energy, TAE Technologies, Aurora Solar, and Palmetto. These companies’ well-known investor roster include the likes of Google, Chevron, Goldman Sachs, and OpenAI’s CEO Sam Altman, among others.
Fusion Energy: Helion Energy and TAE Technologies
Fusion energy is moving closer to reality thanks to companies like Helion Energy and TAE Technologies. These companies are at the forefront of developing fusion technology, which has the potential to provide a virtually limitless and carbon-free energy source. Both companies have gained the attention of investors in recent years who have generated billions of dollars in funding for fusion technologies.
Helion Energy has made significant strides in the fusion energy space with ongoing plans for its Polaris fusion facility, which secured a key license in July 2024 to advance its development. The Everett, Washington, facility is designed to demonstrate the viability of fusion as a practical energy source.
Helion Energy’s Forge Price™ is $62.72 as of August 26, 2024, and implies a valuation of $5.41 billion.
Similarly, TAE Technologies is exploring the use of fusion energy on a large scale. In June 2024, the company announced a partnership with international energy company Occidental's Oxy Low Carbon Ventures to explore the potential of fusion energy for direct air capture. The technology could help mitigate climate change by removing CO2 from the atmosphere to create a carbon-negative energy solution.
TAE Technologies’ Forge Price™ is $18 as of August 26, 2024, and implies a valuation of $894 million.
Revolutionizing Solar Energy: Aurora Solar and Palmetto
While fusion energy holds long-term promise, solar energy continues to be a critical component of the current clean energy mix. Companies like Aurora Solar and Palmetto are leading the charge in making solar energy more accessible and efficient.
Aurora Solar is innovating in the solar energy space with the August 2024 announcement of new solar models that enhance the accuracy and efficiency of solar panel installations. These models use high-resolution imagery to optimize panel placement for maximum energy production and reduced costs. Aurora's technology is helping to make solar energy a more viable option for a broader range of consumers and businesses.
Aurora Solar’s Forge Price™ is $169.85 as of August 26, 2024, and implies a valuation of $4.02 billion.
Palmetto, another rising star in the solar industry, was recognized in April 2024 as the Overall Energy Technology Company of the Year in the 2024 Cleantech Breakthrough Awards, an initiative led by research consulting firm CleanTech Group. Palmetto is dedicated to making solar energy more accessible through its platform built to simplify the process of adopting solar power for homeowners and drive the widespread adoption of solar energy.
Palmetto’s Forge Price™ is $7.33 as of August 26, 2024, and implies a valuation of $1.03 billion.
Trends to Watch: The Rise of Clean Energy Unicorns
As investment in clean energy continues to grow, these companies are gaining the investments needed to become leaders in the sector. The focus on fusion and solar energy highlights a broader trend in the industry: the move towards innovative solutions that can address the challenges of decarbonizing the power grid.
The next few years will be critical in determining how these innovations shape the future of the global energy landscape.
About the Author
Chris Cannon develops lifecycle programs that engage Forge’s existing client base. Prior to joining Forge, he led audience engagement programs and newsletter operations at Investopedia, the global financial and investing media company. Chris received his MBA from East Carolina University and a BA in History from the University of North Carolina at Greensboro. Read more from Chris.