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Congratulations to Persefoni! Named one of the 10 most innovative companies in energy and sustainability by Fast Company

Energy companies—like Breakthrough Energy, Persefoni, and Brimstone—are confronting the climate crisis with innovation, data, and funding.

The 10 most innovative companies in energy and sustainability of 2023

Explore the full 2023 list of Fast Company’s Most Innovative Companies, 540 organizations that are reshaping industries and culture. We’ve selected the firms making the biggest impact across 54 categories, including agriculturecorporate social responsibilitysocial good, and more.

The massive scale of the climate crisis—arguably the biggest challenge that humanity faces—has sparked an equally large surge of innovation. Thousands of startups are working on new solutions. More than $70 billion in venture capital went to climate tech companies in 2022, a record total. Many workers are leaving traditional tech jobs to work on climate instead.

There’s no single answer for the crisis, and this year’s most innovative companies in energy and sustainability are working on the challenge from multiple angles. Some are making existing climate tech more sustainable, like Ascend Elements, which recycles used EV batteries into new battery materials that are cheaper and higher quality than those mined from the ground. Other startups are focused on decarbonizing heavy industry, including Brimstone, which developed a way to make affordable carbon-negative cement, and Rondo Energy, which stores renewable energy in a “heat battery” for factories making steel and other high-heat processes.

Other companies on the list are helping accelerate innovation itself. Bill Gates’s Breakthrough Energy includes a venture arm that funds climate tech pioneers and a policy team that pushed for the successful passage of the largest climate bill in U.S. history, which will help companies in the space grow faster. Vargas, based in Sweden, builds large new climate tech companies from scratch, including Northvolt, a sustainability-focused battery startup that has raised more than $7 billion to date.

1. BREAKTHROUGH ENERGY

For speeding the path to a net-zero economy

Breakthrough Energy is a Bill Gates–founded initiative that strategically works to accelerate a net-zero economy. It includes one of the world’s most active climate tech venture funds, Breakthrough Energy Ventures, which has raised $2 billion to date, along with policy advocacy and philanthropic programs. In 2022, its policy team played a key role in advocating for the historic climate legislation that was the centerpiece of what became known as the Inflation Reduction Act, as well as the CHIPS and Science Act. Breakthrough Energy Ventures added 19 companies to its portfolio of more than 100. Several companies in its portfolio reached milestones, such as the biotech startup C16 Biosciences, which launched a new brand called Palmless that will begin supplying a palm oil alternative to the beauty industry in early 2023. Breakthrough’s Catalyst program, a new funding model for the zero-carbon economy, announced its first grant in October, which will support the country’s first ethanol sustainable aviation fuel plant. Its Fellows program, for early-stage innovators, more than doubled in size, and now support 63 Fellows working on 28 projects across 9 countries. In 2022, the Fellows program also launched Explorer Grants, awarding 8 inaugural grants to advance early-stage research within academic settings.

2. PERSEFONI

For automating carbon accounting for large businesses

Persefoni’s software platform is designed to help large businesses and financial institutions quickly calculate their carbon footprints, with a level of accuracy that can meet strict accounting standards and regulatory requirements like the SEC’s proposed carbon disclosure rules. Customers include major financial firms such as Bain Capital, TPG, SJF Ventures, and Oak Hill Advisors. Persefoni has calculated more than 8.6 gigatons of CO2 emissions for its customers. In October 2022, the company, which has raised more than $150 million to date, released a new version of its platform designed to streamline the process for users, including tools to automate and track requests for emissions data from customers’ suppliers.

3. ASCEND ELEMENTS

For recycling old lithium batteries directly into new EV battery parts

As EVs and solar panels are adopted more widely, so too are the number of old batteries being discarded. Ascend Elements has developed a new, more efficient way to recycle old batteries into new, high-performance cathode material. The company recovers lithium, nickel, cobalt, graphite, plastics, aluminum, and copper in a closed-loop process in the U.S. The process is efficient enough that it can recover 98% of materials, and the reclaimed elements can compete with the cost of newly mined metals. Last August, Ascend opened the largest battery recycling plant in the U.S. in Georgia, and it’s now building a new nearly billion-dollar battery materials factory in Kentucky.

4. NATURAL FIBER WELDING

For making better plant-based leather

Natural Fiber Welding makes plant-based leather and natural “performance” material from agricultural waste and fabric scraps in a patented circular process, then sells it wholesale to apparel and fashion brands. Unlike many competitors, the company does not use plastic fiber in its blends. In 2022, Natural Fiber Welding customers brought multiple products to market using its materials, including a new plant-based leather sneaker from Allbirds made with rice hulls, watch straps for IWC, and a Ralph Lauren polo that wicks away sweat without using synthetic material. NFW’s manufacturing facility more than doubled in size in 2022. It recently released two new materials, including Tunera, a plant-based foam that can be used in footwear and yoga mats.

5. KAYRROS

For using satellite images to measure human impact on the Earth

Kayrros is a French geoanalytics company that uses satellite images and machine learning along with public data sources to observe key environmental changes in real time. A CO2 monitor, launched in March 2022, tracks country by country emissions for electricity production, industry, transportation, and homes. A renewable energy monitor, launched in June 2022, tracks new wind and solar projects day by day, so investors can see the best-performing companies and predict energy prices. And a wildfire monitor, launched in September 2022, predicts fire risk for insurers—and tracks fires when they happen. During a pilot this year, the tool identified fires with 88% accuracy, a benchmark for the industry. Kayrros’s customers include countries that need the near real-time data and intel that its tools offer as well as investors and private companies seeking to decarbonize their operations.

6. VARGAS

For building scalable new energy companies from scratch

Instead of investing in existing startups, Sweden-based Vargas looks for under-explored opportunities in climate tech, and then builds new, scalable companies from scratch. Its portfolio now includes three climate tech “gigacorns,” a term sustainability investors use for startups that have the potential to lower or sequester CO2 emissions at a rate of 1 gigaton annually. Northvolt, an EV battery company that Vargas spun out to provide a local battery supply for European automakers, has raised more than $7 billion, started selling its first batteries in 2022, and has more factories under construction. (In November 2022, the company acknowledged that it might prioritize expansion to the United States to take advantage of the incentives created by the Biden administration.) H2 Green Steel, a company it created to make low-carbon steel and green hydrogen, has presold 1.5 million tons of green steel to large customers and raised funding to build its first factory. Polarium uses lithium-ion batteries as backup power for telecom companies.

7. WINDESCO

For helping wind plants make more energy

At wind power farms, each wind turbine is designed to generate power individually, but that often means that one turbine might block wind from another. WindESCo built “swarm” technology, which debuted in early 2022, that helps all of the turbines in a given installation work together. The company’s software lets the turbines learn from one another, adapt, and ultimately generate more power. Over five years, that could mean that a wind farm makes as much as $10 million more per installed gigawatt. The software was implemented for the first time at a wind farm in Utah, and the company has also expanded to Indonesia and China, which currently produces about 40% of the world’s wind energy.

8. RONDO ENERGY

For bringing zero-carbon heat to the most polluting factories

Rondo Energy turns low-cost solar and wind power into heat for heavy industrial users like cement plants—some of the most polluting companies in the world and considered the hardest to decarbonize. Rondo captures excess energy when renewable sources are overproducing, then it stores the heat in bricks and releases it on demand using artificial intelligence. The company launched two models of the Rondo Heat Batteries (RHBs) in November 2022: A single battery can eliminate emissions equivalent to more than 8,500 electric vehicles, and a cement plant running on the batteries would have a carbon benefit equivalent to all of the electric vehicles currently in use in California. Rondo’s first commercial project will publicly launch later this month, with another to follow in mid-2023.

9. BRIMSTONE

For making carbon-negative cement

Cement production is one of the most polluting industrial processes in the world. Although several companies are exploring solutions, many only partially reduce emissions or end up with a product that can’t be used as a one-to-one replacement in existing processes. Brimstone, a startup that raised a $55 million Series A in 2022, makes Portland cement, the most common type, and cuts emissions by replacing one ingredient—limestone—with silicate rock, which, unlike limestone, doesn’t produce CO2 when it’s heated as part of the cement-making process. The process also creates silica, a by-product that can be used to replace another ingredient in typical cement, called fly ash, which usually is sourced from coal-fired power plants.

In addition, the silicate processing also creates magnesium rock, which naturally absorbs CO2 from the air. This means that if Brimstone’s cement is made with renewable energy, the process is actually carbon negative, meaning it stores more carbon than it emits. It’s also lower cost than conventional cement. Brimstone has proven that its technique works and is using its recent funding to erect its first plant, which will be operational in 2024.

10. REFORMATION

For going climate positive

The fashion company Reformation plans to become “carbon positive” by 2025, meaning that its operations will be a net benefit to the climate. The retailer intends to do so by cutting its emissions in line with climate science, then using carbon removal projects to cover the rest. This year, it invested heavily in eight new fabrics, including circular denim (fabric that can be reused to make new jeans) and recycled cashmere, and brought to market a pair of closed-loop sneakers that are designed for recycling. Each innovation cuts emissions; the cashmere, for example, has a footprint 87% smaller than new material. For each of the brand’s products, the average carbon footprint (31 pounds of CO2e) is now less than half the industry average, putting it on track to meet its 2025 goal.

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Specialist Investor NGP Raises $700 Million for Clean-Energy Fund

NGP Energy, which is based in Dallas, raised $1.23 billion across two funds.
By Luis Garcia | May 22, 2023 6:30 am ET

Specialist investment firm NGP Energy Capital Management has raised $1.23 billion across two funds to make new bets in both the traditional and clean-energy sectors.

The Dallas firm wrapped up its latest energy-transition fund, NGP ETP IV LP, with $700 million in commitments. NGP also said it recently closed on $527 million for its second fund to invest in mineral rights and royalties in oil and gas, NGP Royalty Partners II LP. The effort collected 65%more than the $320 million the firm banked for a predecessor fund in 2021.

More than 30 investors backed the clean-energy fund, said NGP Managing Partner Chris Carter. One participant, the Kentucky Teachers’ Retirement System, pledged as much as $30 million, according to the WSJ Pro Private Equity LP Commitments database.

The private-equity firm, which originally focused on oil and gas, began also investing in clean-energy businesses more than 15 years ago through its NGP Energy Technology Partners strategy. The new ETP fund is the firm’s latest for a growth strategy that backs equipment and services providers in the clean-energy industry as well as developers of sustainable infrastructure, Carter said.

So far, NGP has invested roughly a fifth of the new fund across six deals, including backing battery-technology company Form Energy, fleet charging infrastructure developer EV Realty and geothermal systems company Dandelion Energy, Carter said. The firm focuses on four clean-energy segments: renewable power sources, electrification, energy efficiency and carbon management, he said.

“The fund strategy is a combination of growth-equity investments in existing companies as well as a back-and-build model in the sustainable real assets category,” Carter said. He added that a decline in asset prices during the past year or so has made new investment opportunities more attractive.

“We’re seeing more reasonable valuations and the ability to negotiate attractive terms,” he said. “At the same time, the companies that we have invested in are benefiting from the tailwinds of the [Inflation Reduction Act].” The law enacted last year extended tax incentives for solar and wind power while creating new financial support for other clean-energy technologies.

A rising number of investment firms focused on the sector target supply-chain businesses as an abundance of capital depresses returns from backing power-generating operations, fund managers said. Private-capital firms raised $28.76 billion for clean-energy technology funds during this year’s first quarter, nearly 26% more than the $22.85 billion collected in the year-earlier period, according to research provider Preqin.

“There are so many new entrants to this space—it’s so popular,” said Philip Deutch, an NGP partner who leads the firm’s clean-energy growth strategy. He added, however, that relatively few firms make growth investments in the sector, which typically involve minority stakes. “It’s an underserved area,” he said.

While clean energy draws a lot of interest, traditional energy still attracts investors as well. NGP’s royalty and mineral rights investments give participants a share of well revenue without the burden of production costs.

“It’s an example of investors’ desire to find opportunities with lower risk [and] cash-yielding attributes,” Carter said.

https://www.wsj.com/articles/specialist-investor-ngp-raises-700-million-for-clean-energy-fund-f2eb9b6a
Write to Luis Garcia at luis.garcia@wsj.com

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NGP Royalty Partners II, L.P. Completes Final Closing at $527 million

NGP is pleased to announce the final closing of NGP Royalty Partners II, L.P. (“NGP RP II” or the “Fund”) at $527 million of total capital commitments. NGP RP II was activated and began investing in November 2022, committing capital to its four underlying portfolio companies: Elk Range Royalties II, Foundation Minerals II, Mesa Royalties III, and Wing Resources VII.
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Since 2015, NGP and its affiliates have invested over $1.0 billion in U.S. oil and gas royalties and minerals across its various funds. As the U.S. shale basins became more developed, NGP launched its first fund focused solely on investing in yield-generating royalties and minerals in core basins in 2020. NGP Royalty Partners, L.P. (“NGP RP I”) is a $320 million fund that has been fully invested and has already returned 74% of invested capital through distributions(1). NGP RP II is a continuation of the strategy employed by NGP RP I.

Over the past 10 years, over 100,000 horizontal wells have been drilled and completed in the U.S. Today, the U.S. is the largest global producer of both oil and natural gas. The further horizontal development of core U.S. basins continues to create attractive acquisition opportunities for NGP Royalty Partners’ strategy of acquiring yield-generating royalties and minerals with additional long-term development potential.

We are grateful to all the investors in NGP RP I who partnered with us to launch the first fund in 2020. In addition to receiving commitments from all of our original investors in NGP RP II, we are happy to welcome several new investors to the Fund.

NGP Royalty Partners 2 Tombstone​​​​​​

 

 

 

 

 

 

Note: Past performance is not indicative of future results.
(1) 74% DPI calculated as total net distributions divided by total net invested capital as of 5/18/2023.

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NOVEON MAGNETICS ANNOUNCES $75 MILLION SERIES B FUNDING

San Marcos, Texas –News Direct– Noveon

Noveon Magnetics, the only U.S.-based manufacturer of high-performance neodymium sustainable rare earth magnets, today announced it has closed a $75 million Series B funding round led by NGP and Aventurine Partners. The new funding will accelerate the expansion of Noveon’s manufacturing facilities and enhance its position as a leading provider of critical rare earth magnets to businesses that span the automotive, defense, energy production, medical, and consumer goods sectors, among others. Additionally, James Wallis, Partner at NGP, will join Noveon’s Board of Directors.

“Our team is working hard every day to produce the rare earth magnets needed to power a low-carbon future while strengthening our domestic supply chain in accordance with our national security priorities,” said Noveon CEO Scott Dunn. “This funding will allow our company to continue ramping up production to help fulfill our robust sales pipeline and meet the skyrocketing global demand for critical rare earth magnets.”

“Noveon Magnetics has a proven capability of sustainably manufacturing superior rare earth magnets, which are an essential component in a wide variety of industries – especially those focused on the beneficial usage and generation of electricity,” said James Wallis, Partner at NGP. “We’re proud to partner with Noveon to help them scale their operations and provide their customers a reliable, high-quality supply alternative.”

Noveon’s 145,000 square foot San Marcos (Texas) facility is commercially operational and on-track to produce approximately 2,000 tons of magnets annually by 2024. Noveon was recently recognized as one of Fast Company’s Most Innovative Companies of 2023 for its unique, sustainable rare earth magnet manufacturing technologies.

About Noveon

Noveon Magnetics is the only rare earth magnet manufacturer in the United States. Noveon’s patented EcoFlux™ magnet can be made from mined rare earth elements or directly from recycled end-of-life magnetic materials and are even more powerful than the magnets they were made from. By leveraging a cache of materials sourced from discarded items, such as electric vehicles and hard drives, Noveon’s process is over 90% more energy efficient than traditional manufacturing and results in a stronger, more durable magnet. Noveon’s magnets have critical applications in electric vehicles, MRI machines, wind turbines, defense systems, and robots. More information is available at https://noveon.co/.

About NGP

NGP is a premier private equity firm that believes energy is essential to progress. Founded in 1988, NGP is moving energy forward by investing in innovation and empowering energy entrepreneurs in natural resources and energy transition. With $20 billion of cumulative equity commitments, we back portfolio companies focused on responsibly solving and securing the energy needs of today and leading the way to a cleaner, more reliable, more affordable energy future. For more information, visit www.ngpenergy.com

About Aventurine Partners

Aventurine Partners is a private investment platform focused on opportunities that promote decarbonization and the energy transition. Founded in 2020 in partnership with Carnelian Energy Capital, Aventurine employs a flexible investment strategy to support growing companies with a range of capital needs. The firm is based in Houston, TX and Los Angeles, CA. For more information, please visit https://aventurinepartners.com/

Contact Details

Arielle Goren

+1 212-717-5863

media@noveon.com

Company Website

https://noveon.co