Welcome back to The Energy Brief. Following our Christmas break, we’re straight back to business, with plenty of developments across the market. In this bi-weekly LinkedIn series, Matt Challinor explores the latest funding, collaborations, product updates, and funding news from the cutting-edge smart building, energy, and cleantech companies in the US, Europe, and APAC.

 


 

To kick off, let’s take a brief look at the market during 2024. Key trends in the market were:

  • Growth in Electric Vehicles (EVs) and Heat Pumps
  • Emphasis on sustainability and energy efficiency
  • Expansion of Clean energy investments
  • AI
  • Challenges due to skilled labor shortages
USA

There was a 14% increase in talent across the US, with the prominent skills being:

  • Energy management
  • Energy efficiency
  • Solar power
  • Renewable energy

A noteworthy news piece from 2024: Johnson Controls International Plc sold its residential and light commercial HVAC business to Bosch for $8.1 billion, resulting in a net gain of $6.7 billion. The sale included Johnson Controls’ North American Ducted business and its joint venture with Hitachi Energy, where it held a 60% stake. This move aligned with Johnson Controls’ strategy to focus on providing comprehensive solutions for commercial buildings.

Europe

There was a huge 57% increase in talent across Europe, with the prominent skills being:

  • Renewable energy
  • Engineering
  • Energy management

Stegra, formerly known as H2 Green Steel, raised €4.7 billion in 2024 to advance its plans for the world’s first large-scale green steel plant in Boden, Sweden. The company focuses on developing sustainable steel manufacturing processes to reduce carbon emissions in the industry.

APAC

There was a 24% increase in talent across APAC, with the prominent skills being:

  • Engineering
  • Renewable energy
  • AutoCAD
  • Solar energy

In August, Shanghai-based VOLANT AEROTECH secured a $100 million Series B funding round. The investment is intended to accelerate the development and manufacturing of electric vertical take-off and landing (eVTOL) aircraft, advance the airworthiness certification of the VE25-100 model, and promote the commercialization of passenger eVTOL vehicles.

 

building automation tech

 

Spotlight on:

Each bi-weekly newsletter features a special ‘Spotlight’ segment, where I highlight a company making notable strides—whether it’s a start-up securing significant investment or an industry leader driving sustainable change. This month, the spotlight shines on David Energy.

Based in Brooklyn, New York, David Energy operates as a new kind of energy company, focusing on managing onsite energy assets such as battery storage, HVAC controls, solar, cogeneration, and electric vehicles. By leveraging a machine learning platform, they aim to optimize energy consumption and reduce costs for building owners. Their position as a retail electricity provider allows them to unlock value streams currently unavailable to customers.

In September, the team announced that it had secured $23 million in funding to transform the retail energy market and make a clean energy grid a reality.

 

January funding news:

Hybird Energy, a Danish startup revolutionizing energy management with AI-powered intelligent electrical panels, has secured €2.4 million in funding to scale its operations across Europe.

ecoplanet, the energy orchestration layer for businesses, has raised €16 million in Series A funding. The round was led by EQT Ventures (which backed Nua Surgical and Noema Pharma), with continued support from HV Capital and additional market experts.

AUSTRALIAN EV charger business JET Charge has received a $72 million investment boost from French sustainable investment group Mirova to upscale its charging infrastructure. JET Charge founder and CEO Tim Washington said that JET Charge was founded on the belief that electrifying transport is key to achieving a sustainable future.

Geothermal HVAC startup Bedrock Energy raised $12M.

Japanese HVAC group Paloma Rheem Holdings is set to acquire Fujitsu’s air conditioning business Fujitsu General in a deal worth £1.6bn.

BNP Paribas Asset Management (BNPP AM) announced that it has raised €172 million (USD$179 million) at the final close of its BNP Paribas Solar Impulse Venture Fund (BNPP SIVF), surpassing the initial target size for the fund focused on investing in innovative cleantech startups with positive environmental impact and supporting the acceleration of ecological transition.

NextSTEP, the London-based venture capital fund focused on supporting CleanTech innovation, has announced an ambitious move to allocate €1.6 million for 16 new investments in 2025.

Amogy, a pioneer in ammonia-to-power technology, has raised $56 million in new funding, bringing its total to over $270 million.

 

Exciting market updates to keep an eye on:

Decline in fossil-fueled power generation: Analysts predict that China’s coal-based thermal power generation may decline in 2025 for the first time in a decade.

A surge in Middle Eastern renewable energy investments: The Middle East, particularly the UAE and Saudi Arabia, is experiencing rapid growth in renewable energy investments, making it the fastest-growing market outside China. Notable projects include a $6 billion, 5-gigawatt solar plant in the UAE and Saudi Aramco’s venture into lithium production for battery manufacturing.

AI integration in building energy management: AI is increasingly being utilized to enhance energy efficiency in buildings. Studies suggest that AI can cut energy consumption in buildings by at least 8%.

Growth in energy-efficient HVAC systems: The HVAC industry is witnessing a strong demand for energy-efficient systems, driven by technological advancements and environmental concerns.

Adoption of Heat Pumps in Europe: Heat pumps are emerging as a key technology in Europe’s energy landscape, recognized as the fourth major renewable energy source after hydro, wind, and solar.

 


 

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