Climate solutions-focused investment business Just Climate announced today its inaugural three investments, backing companies with solutions to help decarbonize the steel sector, accelerate electric mobility, and provide renewable energy for manufacturers.
Founded in October 2021 by Generation Investment Management, a sustainability-focused investment firm chaired by former U.S. Vice President Al Gore, Just Climate aims to deliver impact by focusing on investments in projects and companies in hard to abate sectors and geographies, while simultaneously delivering appropriate risk-adjusted returns. The fund targets catalytic climate solutions in sectors including energy, transport, industry, and buildings and natural climate solutions for food, agriculture, and oceans.
Clara Barby CBE, Senior Partner of Just Climate, said:
“We established Just Climate to accelerate commercialisation of solutions for the hardest-to-abate emissions – for the benefit of people, the planet, and our clients. Some solutions will come from new businesses, others from large incumbents. Our first investments demonstrate this range and have the potential to generate attractive risk-adjusted returns through outsized greenhouse gas emissions abatement in the next ten years.”
Just Climate’s first three portfolio companies include ABB E-mobility, H2 Green Steel and Meva Energy.
Swiss-based ABB E-Mobility provides electric vehicle charging solutions, including smart home chargers and high-power chargers, as well as a range of digital services and advanced energy and fleet management solutions. Just Climate’s investment forms part of a CHF325 million (US$355 million) financing, prior to the company’s planned IPO, as it prepares a separate listing as a standalone company from parent ABB.
Founded in 2020, H2 Green Steel is building the world’s first large-scale fossil-free steel plant, with the project including a giga-scale green hydrogen plant as an integrated part of the steel production facility. The company employs hydrogen produced using green power to remove the oxygen from iron oxide, avoiding 95% of the CO2 emissions normally produced. Using electricity from 100% renewable sources for the energy requirements generated in the manufacturing process, H2GS aims to produce 5 million tons of fossil-free steel by 2030. Just Climate’s investment forms part of the company’s $260 million Series B capital raise announced in October.
Meva Energy provides an innovative gasification technology to convert biogenic residue such as sawdust to renewable gas for manufacturing sector companies. According to the company, the investment will accelerate its transition from an R&D focus to becoming an industrial scale operating company.
Shaun Kingsbury CBE, Chief Investment Officer of Just Climate, said:
“Our first investments will accelerate commercialisation of 95% decarbonised steel, a natural gas substitute based on wood waste from other industrial processes, and electric charging solutions for a wider range of road transport that requires high-powered charging. All three solutions bring to life our thesis of investing in transformational solutions for the highest-emitting, hard-to-abate sectors while delivering attractive risk-adjusted returns for our investors.”
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