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    Bill Gates-backed fund aims to invest $15bn in clean tech

    The Bill Gates-backed public-private fund is preparing to invest $ 15 billion in clean technology projects in the US, EU and UK, and is a major technology to help countries reach net zero emissions. Aims to provide a grant to.

    With $ 1.5 billion in private capital from philanthropic businesses and businesses, Breakthrough Energy Catalyst will invest in four key areas: direct air recovery, green hydrogen, aviation fuel and energy storage technology.

    Jonagoldman, managing director of BEC, told the Financial Times that by leveraging innovative financial structures and partnership agreements, the fund will mobilize $ 15 billion, or 10 times the initial investment.

    “We’re the last mile of funding, so it’s the riskiest capital there,” says Goldman. “We are actually trying to demonstrate which technical path is most effective.”

    The fund is part of the Breakthrough Energy Group, launched in 2015 by the founder of Microsoft Millionaire. Breakthrough energy venture arm provides venture capital to Greentech start-ups and includes other prominent business founders such as Mukesh Anbani, Jeff Bezos, Masayoshi Son and Circris Horn among its board of directors and investors.

    The new BEC Fund will provide three types of capital: charitable donations, submarket equity investments, and product off-take contracts, and will fund large projects that would otherwise not be economically feasible.

    Its focus is on creating markets for green products and technologies and lowering the cost of manufacturing materials such as green steel and green hydrogen. This attracted the attention of the steel group ArcelorMittal and the car maker GM among the first corporate supporters.

    According to Professor Richard Templar, Innovation Director at the Grantham Institute at Imperial College London, private and philanthropic investment in clean technology has increased significantly since the outbreak of the pandemic.

    “This is patient capital, big capital,” Templar said. “In the past, venture capitalists would say this is an engineering project, not for us …”. But that is changing, he said, and new funding models are being developed.

    One of BEC’s goals, which does not expect normal economic benefits, is to reduce the “green premium” of products such as sustainable aviation fuels. Green premium refers to the additional cost of a green product compared to an unsustainable product such as regular jet fuel.

    One example, according to Goldman, is a sustainable aviation fuel refinery, where technology has been proven, but economics does not support large-scale production. American Airlines is one of the companies that contributed to the fund.

    “There are six different ways to make sustainable aviation fuels. We know they all work and all have different challenges,” says Goldman.

    “We need to build a lot of them to see where we can get green premium reductions, such as through engineering learning.”

    Several governments, including the US Department of Energy, the United Kingdom and the EU, are supporting the fund and have a $ 1 billion partnership with the European Commission.

    In an unusual structure, BEC-backed projects are partially funded by long-term off-take contracts from customers who are willing to pay for sustainable products (eg Green Steel and sustainable aviation fuel contracts).

    “These projects are huge and require a lot of capital,” says Goldman.

    “We know you can do it. We need to see if we can do it on a large scale in an economical way,” Goldman said. “That’s what all of this has in common. They all take interventions to take them to this next stage of commercial demonstrations and allow them to actually start building markets. I need it. “

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    Bill Gates-backed fund aims to invest $15bn in clean tech Source link Bill Gates-backed fund aims to invest $15bn in clean tech

    The post Bill Gates-backed fund aims to invest $15bn in clean tech appeared first on California News Times.

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