Green technology attracts greater investor interest

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As more attention is paid to the fight against climate change, green technology is catching its breath thanks to a new injection of liquidity.

The invention of potentially revolutionary technology did not always lead to large-scale commercial production, as large investors were reluctant to invest money in the large capital expenditures required for businesses like solar farms and batteries before reaching profitability, reports the Wall Street Journal.

“It’s one thing to develop something really interesting, really cool in the lab,” Michael Edelman, CEO of Massachusetts battery technology company Ionic Materials, said at a recent conference for the Advanced Research program. Department of Energy’s Projects Agency-Energy, known as ARPA-E. “But how do you get to a point where you can make it cost-effectively with the right quality consistently so that your customers will buy it?” “

Money poured into the green technology sector, but many companies went bankrupt. For example, the 2011 failure of the California solar company Solyndra, which had received government backing, and the 2012 bankruptcy of battery maker A123 Systems Inc. were two notable failures that left a black spot on the whole. Of the industry. After unsuccessful ventures, government funding disappeared and private funding stopped.

However, the environment has improved in recent years as clean energy sources like wind and solar have become more competitive with energy produced from fossil fuels, while costs have declined for rechargeable batteries.

Meanwhile, growing concerns about the impact of global warming and companies’ commitments to reduce their carbon footprint have also helped bring investors back.

For example, the Biden administration asked Jigar Shah, a longtime clean energy entrepreneur and head of the Energy Ministry’s loan programs office, to allocate billions of dollars in renewable energy loans. .

Amy Duffuor, director of the Prime Impact Fund, which invests in industry start-ups, argued that climate tech companies that once had to wait for years are now seeing investors flocking in droves.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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