Within the overview of our January 2020 International Cleantech 100, we welcomed readers to the “Roaring 20s,” predicting a decade of cleantech development, persevering with the constant growth we had seen since 2016. By January 2021, we had already modified our terminology the “chaos of the 2020s,” written within the midst of the Covid pandemic however simply earlier than a historic surge in cleantech investments. On the launch of the 2025 International Cleantech 100, the U.S. stands on the point of Donald Trump’s re-inauguration, marking one other main shift in world vitality and local weather route inside simply 5 years.
The one certainty on this decade is uncertainty. At this mid-point, we see cleantech innovation approaching three important tipping factors that may outline its trajectory. From the place we’re sitting at present, we are able to see three over-arching tipping factors rising, that present the backdrop for 2025’s cleantech innovation unfoldings:
- Tipping Level #1: The Provide Economics Survival Sport: We’ve noticed an unprecedented surge in first-of-a-kind (FOAK) cleantech initiatives in recent times. Entrepreneurs have proven exceptional resourcefulness in financing these endeavors, however the anticipated discount in coverage assist and incentives, particularly within the U.S., would require the flexibility to compete on market economics. Notably, some corporations are already demonstrating their capability to navigate this shift, as mirrored on this yr’s International Cleantech 100 listing.
_ - Tipping Level #2: The Energy Scarcity Demand Pull: The historic surge in energy demand fueled by information facilities, EV charging, and the electrification of producing and buildings is exerting a considerable affect on electrical energy era sources, vitality effectivity, and uptime assurance. This demand pull is creating a positive surroundings for cleantech options that may handle these challenges.
- Tipping Level #3: The Resilience Renaissance: Local weather adaptation and resilience, as soon as a distinct segment space, are poised to enter the mainstream. This shift is pushed by escalating temperatures, more and more frequent excessive climate occasions, and the increasing “uninsurable frontier.” Consequently, new applied sciences are being built-in into public security, well being, and finance discussions. The resurgence of water as a distinguished theme on this yr’s International Cleantech 100 listing underscores this development.
A Lean Financing Setting Calls for Early Indicators of Industrial Engagement
We famous in our report that 2024 witnessed traders prioritizing preliminary business outcomes as a foundation for capital allocation. Company involvement performed a pivotal position in enterprise investments, with almost 30% of all offers involving an organization.
The Deep Tech Drive Hits a New Gear
In 2024’s International Cleantech 100, we coated the main shift in innovation focus from incremental enhancements to deep scientific innovation focusing on huge image shifts in sustainability. That development solely strengthened via 2024, and deep tech for cleantech now includes the biggest proportion of investments because it ever has. Remarkably, even in a yr with decrease mixture cleantech investments, 2024 funding in deep tech for cleantech outpaced their 2023 totals.
Tipping Level #1: Provide Economics
Cleantech innovators are making strides in decarbonizing heavy industries like metal, cement, and chemical substances, historically “hard-to-abate” sectors. Notable examples on this yr’s International Cleantech 100 embrace:
Tipping Level #2: Energy Demand
Knowledge facilities are rising as important demand drivers for clear vitality applied sciences. For instance:
The Battle for the Manufacturing unit Ground – Are Winners Rising Already?
We wrote final yr concerning the convergence of two developments—useful resource discount in trade and manufacturing of recent vitality merchandise—to type an plain theme in cleantech innovation that an industrial transformation was coming to fruition. In 2024, investments into innovators inside these developments outpaced these of 2023, regardless of the general dip in 2024 enterprise and development investments.
Corporations pioneering battery recycling and supplies restoration are addressing tipping level #1 with FOAK services:
The upstream vital supplies worth chain is well-reflected on this yr’s International Cleantech 100 as properly:
- Mangrove Lithium (three-time International Cleantech 100) and Summit Nanotech (International Cleantech 100 2021, 2024-2025) are forging forward in direct lithium extraction.
_ - PH7 (International Cleantech 100 2024-2025) is innovating in heap leaching for copper and e-waste solvometallurgy.
_ - Copprint (International Cleantech 100 2023-2025) refining conductive copper printing for energy electronics.
We additionally wrote in 2024 concerning the rising significance of sustainable approaches to manufacturing at present’s commodities and merchandise. Throughout the theme of commercial electrification, particularly electrification of warmth processes, the funding momentum in 2024 outstripped even essentially the most energetic investing years of 2021 and 2022.
This yr’s International Cleantech 100 affords some instructive examples of which applied sciences are beginning to be perceived as high-potential industrial electrification vectors:
- Delivering high-temperature course of warmth to heavy trade processes together with metal and cement typically requires temperatures of 1000° C – 1250° C. Thermal vitality storage methods working at these temperatures also can spin a turbine to generate electrical energy from the saved warmth – that’s the place corporations like Antora Power (International Cleantech 100 2023, Cleantech 50 to Watch 2021), Kraftblock (International Cleantech 100 2024-2025), and first-time International Cleantech 100 firm RedoxBlox are available in, storing at temperatures of as much as 1300° C – 1500°C.
_ - Low-temperature warmth (<200° C) is the “backside of the iceberg” in industrial emissions, discovered in lots of massive industries reminiscent of meals and beverage processing, recycling, and in components of advanced chemical substances manufacturing. This yr’s International Cleantech 100 options three first-time award winners in low-temperature warmth electrification: Skyven (steam-generating warmth pumps), Atmoszero (electrical boilers), Qpinch (chemical warmth pumps).
Passing Paris – Can Adaptation Speed up in 2025?
2024 exceeded 2023 as the most well liked yr on document (World Meteorological Group), and because the actuality begins to set in that the world is more likely to surpass the 1.5° C warming restrict that the Paris Settlement set out, we proceed to attend for the urgency to be mirrored in innovation and funding. Enterprise investments in adaptation and resilience proceed to high out between 8-9% of all cleantech investments.
The 2025 International Cleantech 100 featured promising improvements addressing tipping level #3 (resilience urgency):
The latest, tragic wildfires in Los Angeles underscore the urgent must undertake wildfire resilience applied sciences. New wildfire tech is ready to shut off danger gaps in actual time; take 2025 International Cleantech 100 debutante Burnbot, who has developed remote-operated robots to hold out prescribed burns and stop wildfire outbreaks earlier than they occur. Certainly, the wildfire tech neighborhood, whereas small, is combining forces throughout events and is positioning itself to unlock latent demand in 2025. We wrote in final yr’s International Cleantech 100 concerning the launch of Convective Capital, the primary devoted wildfire tech enterprise capital fund. In 2024, Convective and a bunch of companions started formal lobbying efforts and have already engaged with members of the U.S. Congress.
Will Water Lastly Have its Second in 2025?
Within the 2024 International Cleantech 100, our 15th iteration of the report, Cleantech Group CEO Richard Youngman famous in his foreword that within the first version of the report, there have been 9 water-related corporations on the listing, and that quantity was by no means reached once more. In 2024, there have been two, however the theme reveals a glimmer of a return in 2025 with six corporations on the listing.
Water continues to play a aspect position in general cleantech investments, however we see tipping factors #1 (provide economics) and #3 (resilience urgency) rising in a noticeable method on this yr’s International Cleantech 100 corporations:
Two new takes on the reverse osmosis course of via distinctive membrane formulations have landed on this yr’s International Cleantech 100 listing:Aqua Membranes and ZwitterCo. Observe the company urgency right here: Micron was an investor in Aqua Membranes and BHP and Munich Re Ventures had been traders in ZwitterCo.
Centralized wastewater therapy is considered as a venue of demand alternative, as properly. This yr’s International Cleantech 100 listing boasts a mini worth chain of wastewater therapy applied sciences:
- Molear makes use of nanobubble aeration strategies to flatten vitality demand in aeration processes and cut back the necessity for chemical substances to scale back residue.
_ - Aclarity has developed a novel electrochemical strategy to PFAS destruction.
_ - Indra Water is decentralizing the electrochemical therapy strategy and bringing modular therapy items to site-of-use, whereas additionally leveraging internally developed automation and analytics for OPEX discount.
_ - Pani Power is bringing AI to wastewater therapy and desalination crops via granular sensing and diagnostics to prescribe surgical chemical inputs and membrane upkeep.
2025 Will Be the Yr We Bear in mind the Guardrails Coming Off
Coverage uncertainty, the success of deep tech innovators clearing FOAK hurdles, and rising demand for local weather adaptation applied sciences sign an intensified concentrate on product and undertaking economics in 2025. Corporations leveraging natural demand in areas like information facilities and proving their applied sciences in real-world environments with out counting on favorable insurance policies are well-positioned to succeed. Key milestones to observe embrace:
- Knowledge heart {hardware} exits: Count on development in cooling options, energy conversion applied sciences, and grid hardening as demand for vitality effectivity surges. Knowledge facilities, with their price-insensitive consumers, are more likely to drive innovation and acquisition exercise.
_ - FOAK undertaking ripple results: The success of first-of-a-kind services in 2024 marks a big step towards scaling nth-of-a-kind operations. Corporations that may ship scalable options will lead the market, whereas quick followers profit from classes discovered by early adopters.
_ - Count on a number of China blindsides: This yr’s International Cleantech 100 listing consists of solely two corporations from China, elevating questions on whether or not its innovation has slowed or if the worldwide ecosystem is dropping visibility. The latter appears extra doubtless. As China’s renewables and EV rollout accelerates, improvements in vitality storage, grid resilience, and supplies are doubtless. Formidable plans for nuclear fission and fusion may additionally yield advances. Whereas commerce decoupling dims export prospects, it additionally reduces world perception into rising Chinese language applied sciences.
_ - Adaptation and resilience tech: Applied sciences reminiscent of wildfire prevention instruments are shifting past authorities purposes, gaining traction amongst utilities and personal customers. Markets are starting to undertake new metrics for evaluating adaptation applied sciences, creating alternatives for progressive options in resilience.
We prolong our congratulations once more to all of this yr’s International Cleantech 100 corporations and look ahead to persevering with to accompany you on the subsequent leg of the journey.
