Climate Finance News - December 12
US funds biofuel feedstock research; Bulgaria energy sector grants; Satellites for mineral exploration; Lithium-isotope enrichment
Malaysia currently accounts for 25% of the total issuance of ASEAN Green, Social and Sustainability debt securities.
In this newsletter
News from governments - US, Norway, Bulgaria
Funding announcements - ADB - India, Fleet Space, Enfinity Global, Molten Salt
News from Governments
The U.S. Department of Energy has announced $52 million in funding for six university and industry projects to advance the production of purpose-grown energy crops like microalgae, switchgrass, and miscanthus. The initiative aims to develop a domestic supply chain of alternative carbon sources for biofuels and bioproducts that can reduce greenhouse gas emissions in transportation and industrial sectors. The projects, spread across 18 states, support the federal government's goal to produce 3 billion gallons of Sustainable Aviation Fuel (SAF) by 2030 and 35 billion gallons by 2050.
Norway has provided USD 60 million to Indonesia in recognition of their successful reduction of emissions from deforestation and forest degradation by 237 million tons CO2e in 2019-2020. The funds will support Indonesia's climate plan 'FOLU Net Sink 2030' and various initiatives including forest monitoring systems, peatland restoration, environmental crime prevention, and sustainable forest management through social forestry programs.
Bulgaria has announced major progress in green energy initiatives with 151 proposals totaling nearly BGN 5 billion submitted under the RESTORE measure of the Recovery and Resilience Plan, with grants amounting to almost EUR 1 billion. The country is working to join the Green Corridor project for renewable energy transport from Azerbaijan to Europe via underwater cable, while also conducting feasibility studies for energy storage at Batak and Dospat HPPs.
Funding Announcements
The Asian Development Bank (ADB) has approved a $500 million loan to India Infrastructure Finance Company Limited (IIFCL) to support environmentally sustainable infrastructure development in India. The loan will help provide long-term capital for infrastructure projects focusing on connectivity, energy transition, urban projects, education, and healthcare, while also establishing a sustainability unit and environmental sustainability framework to assess project ratings.
Australia-based space exploration company Fleet Space Technologies has raised A$150M in Series D funding at an A$800M+ valuation. Fleet has developed ExoSphere, an end-to-end mineral exploration platform combining satellites, smart seismic sensors, and AI. The company works with over 40 major mining companies including Rio Tinto and Barrick Gold, helping accelerate the discovery of critical minerals. Their technology provides real-time 3D subsurface imaging and AI-powered mineral targeting.
US-based Molten Salt Solutions is developing a commercial-scale lithium isotope enrichment process for next-generation nuclear reactors. They've secured $3M in seed funding from Future Ventures and True Ventures, and previously received SBIR funding from NSF while collaborating with Los Alamos National Laboratory. The company solves the critical problem of no existing commercial source for enriched lithium isotopes, which are essential for both molten salt reactors (requiring lithium-7) and fusion reactors (requiring lithium-6). Their proprietary enrichment technology aims to enable industrial-scale production, differentiating them from conventional enrichment methods that aren't suitable for commercial scale.
Enfinity Global is a leading US-based renewable energy company founded in 2019, with a massive 26.8 GW portfolio of renewable energy and storage projects across the US, Europe, Japan, and India. The company has secured €165 million to build 147 MW of solar projects in Italy, where they're the top independent power producer with 805 MW of approved solar projects. Enfinity develops large-scale solar projects and secures long-term power purchase agreements - it has signed 535 MW of PPAs in Italy with major corporations and utilities.
Listen to Can central banks green the financial system? - interview with Frank Elderson, member of the Executive Board of the European Central Bank
Consolidated by Soumya Gupta (Twitter, LinkedIn).
