TLDR:
- European VC investments in the energy sector have risen, surpassing investments in artificial intelligence.
- Hydrogen technology is particularly attractive to investors, with significant funding rounds seen in companies like HysetCo and Tree Energy Solutions.
European VC investments in the energy sector are on the rise, according to new research by Dealroom. The report indicates a 12% increase in investment in European technology companies, with energy and climate tech attracting $5.6 billion. This surpasses investment in the artificial intelligence sector, which secured $2.6 billion. Notable technologies like hydrogen have captured the attention of investors, with companies like HysetCo and Tree Energy Solutions raising substantial funding rounds.
The appeal of energy investments lies in their potential to mitigate the effects of climate change and decarbonize industries. Companies like Again, which converts CO2 into chemicals for heavy industry, are targeting large-scale manufacturers seeking to reduce their carbon footprint. These innovations have attracted a diverse range of investors, including corporate investors, generalist VCs, and specialists in the sector.
The challenge for European energy innovators is to sustain investment, as these companies often require significant capital. Despite this, the European energy sector is outperforming the U.S. in terms of investment, presenting a major opportunity for green tech and energy companies to lead the market. Investors like Gregory Dewerpe focus on businesses with clear paths to commercialization and asset-light models, signaling a shift towards sustainable and scalable energy solutions.
