Energy transition
Europe is eager to impulse the energy transition fast, and to reach both carbon neutrality and energetic sovereignty by 2050.
Yet, as opposed to the US, climate-tech VC funds in Europe still don’t reach the critical size that allows them to follow on our strategic innovations.
Which makes companies of this sector seek financing outside of Europe in the later-stage rounds. But they should find the mean to reach their industrial objectives and offer a commercial product by finding capital within Europe.
Besides, the energy transition will fiercely rely on deeptech “hardware” innovations, which are often more capital intensive than tech and “software” solutions.
For these reasons, Exergon has decided to be a VC pioneer in the energy transition space, by investing up to 300M€ in European companies that offer deeptech solutions with the potential to make it possible reaching our carbon neutrality and energy independence goals.
Nuclear Energy
The great advantage of nuclear energy is that it can support renewables as it is decarbonized, reliable and manageable. Besides, nuclear energy innovations develop technologies that would make us gain safety, competitiveness, sustainability and resilience.
With the taxonomy approval of nuclear energy as a clean energy and the fact that many countries are shifting their mindset in favour of this energy source, Europe is a great place to set the first VC fund dedicated to nuclear energy.
We focus on fission (Advanced Modular Reactors, supply chain) and fusion energy (magnetic and inertial confinement, supply chain).
Hydrogen
The IEA estimates that 10% of our energy mix in 2050 should come from hydrogen.Yet, 99% of today’s hydrogen is produced with fossil fuels and low carbon hydrogen costs 3x more to produce.
We invest in key technologies that will decrease by a factor of x2 to x3 by 2030 the cost of low carbon hydrogen.
We aim at unlocking the environmental potential of Hydrogen - the first and lightest element in the Mendeleiv classification - both to decarbonate existing markets as well as to develop new promising ones.
Energy Storage
The global and European energy storage market are bound to grow significantly in the coming years as it results from the increase of renewable energy systems.
With fossil energies being targeted to decrease from 80% in our energy mix today, down to less than 25% in a net zero scenario, electrical storage capacity should be increased by a factor of x35 !
The energy storage market has 4 major drivers: increasing penetration of renewables, electrification, decentralization, and supply-demand imbalance.
We invest in technologies that can be used either front-the meter (FTM) or behind-the-meter (BTM): mechanical storage, chemical storage, electrical storage, thermal storage, electrochemical storage.
Energy Efficiency
A very large portion of the energy we extract from our environment is wasted.
According to the International Agency, we need to increase energy efficiency by 3% every year to reach carbon neutrality.
Energy Efficiency is critical to reach carbon neutrality by avoiding as much unnecessary emissions as possible.
We invest in companies that either increase the available energy base, for instance with biomass valorization, or optimize the energy transition critical materials.