Clean Energy Ventures Raises $305 Million for Decarbonization Technologies
Clean Energy Ventures (CEV) announced on Wednesday that it has raised $305 million for its second fund, exceeding its initial $200 million target. Strong interest from limited partners, including The Grantham Foundation, Builders Vision, and Carbon Equity, underscored private market enthusiasm for decarbonization-focused companies.
CEV, which closed its first fund five years ago, is investing the new capital in advanced technologies beyond traditional solar and wind. Co-founder and managing partner Daniel Goldman highlighted industrial decarbonization, particularly for the cement and steel industries, as a key focus area.
Goldman also identified efficient recycling technologies, bioplastic production, and grid-enhancing technologies like virtual power plants as promising areas for investment. CEV has already made six investments from the new fund, including green ammonia company Nitrofix and sustainable aviation fuel company OXCCU. Additionally, CEV is opening a new office in London, citing significant opportunities in Europe and Israel.
Since CEV's first fund launch in 2019, the renewable energy landscape has changed, including the rise and decline of special purpose acquisition companies (SPACs). Despite this, investor interest in clean energy remains strong, with CEV’s limited partners focused on returns rather than impact investing.
None of the companies from CEV's first fund have gone public, with the firm prioritizing strategic sales over IPOs. Although no acquisitions have occurred, Goldman noted there have been interested buyers.
Private equity is playing a growing role in energy transition deals, with investments rising to over $25.9 billion in 2023 from $500 million in 2018. Goldman observed increased private equity interest in partnering for follow-on projects once initial demonstrations are complete, enabling earlier engagement.
