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Web Date: November 30, 2015

Gates Leads Clean Energy Investment Pact

Climate Change: Billionaires pledge large investments to leverage government research spending
Department: Business
News Channels: Environmental SCENE
Keywords: Climate change, renewable energy, start-ups, venture capital

Chemists and chemistry students: Follow key developments connected to the Paris climate change meeting here.

Credit:Ian Langsdon/EPA/Newscom

As climate talks got underway in Paris this week, Microsoft founder and philanthropist Bill Gates announced the formation of a coalition of private billionaire investors to support the transfer of clean, zero-carbon energy technologies from the lab to the marketplace.

The Breakthrough Energy Coalition will back private, early-stage companies, although the innovations will come out of basic and applied research—much of it initially funded by governments. Indeed, the group will target investments in countries that seek to double public clean energy R&D funding over five years. Already, 20 countries including the U.S., China, India, and Brazil have signed on to that initiative, called Mission Innovation.

In addition to Gates, the coalition is made up of 27 high-net-worth individuals from around the globe who have pledged to invest in renewable energy breakthroughs. The list includes cleantech investor Vinod Khosla, Amazon founder Jeff Bezos, Facebook founder Mark Zuckerberg, and Jack Ma, the chairman of China’s Alibaba Group. More are expected to join.

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Gates
Credit: IAN LANGSDON/POOL/EPA/NEWSCOM
This is an image of Microsoft founder and philanthropist Bill Gates.
 
Gates
Credit: IAN LANGSDON/POOL/EPA/NEWSCOM

In contrast to traditional venture capital investors who expect returns in three to five years, Gates says those in the coalition will provide backing and business support for longer periods of time. He says this sustained investment is essential for energy companies to prove that their technology works well, is scalable, and can be made affordable.

“Experience indicates that even the most promising ideas face daunting commercialization challenges and a nearly impassable Valley of Death between promising concept and viable product, which neither government funding nor conventional private investment can bridge,” the group says.

No dollar figure was attached to the announcement, though it is expected to add up to billions of dollars in future private investments. The Coalition says it will focus specifically on investing in early technologies—so called seed, angel, and Series A rounds that traditional venture investors have shied away from in recent years.

Three promising technologies cited by Gates in an essay on the topic are chemistry-based: solar chemical, flow batteries, and solar paint. Climate change is only one driver for the effort. Gates says affordable, renewable, scalable energy will be a boon for the 1 billion people around the world who lack basic energy services.

 
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ISSN 0009-2347
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Comments
Les Blevins (Tue Dec 01 14:53:24 EST 2015)
I am Les Blevins of Advanced Alternative Energy. My small R&D firm has developed, patented and tested a novel new concept in low-carbon energy that is scalable from village to county scale and therefore I would like to talk with Gates and his group about repowering developed and developing countries in such a way so as to stall human induced climate change.
Malcolm Watts (Wed Dec 02 15:51:23 EST 2015)
No mention of nuclear power?
A pity because nuclear power does not stop when the sun goes down nor when the wind stops blowing, and releases no CO2.
Melody Bomgardner (Thu Dec 03 09:51:32 EST 2015)
Hi Malcom,
Gates is already working on nuclear power, so I suspect they haven't ruled it out.
http://terrapower.com/

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