The Climate Tech Startups in Europe are experiencing a boom, making it a very exciting space to watch. It’s the fastest-growing climate tech landscape globally. In 2023, European climate tech startups secured over $20 billion in funding, nearly matching the record of the previous year.
This blog highlights the growing startup confidence in European climate solutions. Have a look at the most interesting and new-age climate tech startups in Europe which aim to create an impact in society.
Here’s the list of the most booming climate tech startups in Europe with the highest number of valuation based on the previous year:
Startup 1: Octopus Energy
(Best known for being a renewable energy supplier)
- HQ: London, England
- Launched: 2015
- Founders: Greg Jackson, Stuart Jackson
- Company Type: Renewable energy group
- Valuation: $7.5 Billion
Octopus Energy is a global clean energy tech company committed to driving the affordable, green energy system of the future. Their operations span 18 countries and cover the entire energy value chain.
Moreover, this is one of the climate tech startups in Europe that secured an impressive $800 million investment from existing shareholders. The company’s valuation now stands at approximately $7.8 billion. Notably, this investment is expected to create 3,000 green jobs in the UK alone by 2024
They are also launching as a brand in Japan, emphasizing their 100% renewable electricity operation powered by innovative AI and data-based grid balancing. Also, under its retail brand, Octopus delivers world-class customer service and cutting-edge energy products to 7.7 million households globally.
Startup 2: Verkor
(Best Known for fast-tracking low-carbon battery production)
- HQ: France
- Launched: 2020
- Founders: Benoît Lemaignan, Antoine Sebaux
- Company Type: Battery Production and manufacturing
- Valuation: $3.7-5.6 billion
Verkor has its primary operations are in France, with plans to build its first Gigafactory in Dunkirk, which will have an initial production capacity of 16 GWh/year. Their mission is to produce high-performance electric batteries for sustainable mobility.
Over 340 employees have been recruited by the firm till May 2024. These climate tech startups in Europe focus on the large-scale industrialization of lithium-ion batteries. Their journey begins with the Verkor Innovation Centre, followed by the construction of the Giga factory.
Indeed, the company specializes in developing and manufacturing high-performance, low-carbon battery cells for electric vehicles and sustainable mobility solutions. Verkor has secured over €2 billion in financing, including Series C funding, debt support from the European Investment Bank, and French government subsidies.
Startup 3: H2 Green Steel
(Best known for producing green steel)
- HQ: Stockholm, Sweden.
- Launched: 2020
- Founders: Vargas Holding
- Company Type: Green-impact startup
- Valuation: $2.85 Billion
The company’s primary operations are in Boden, northern Sweden, where they have started production at Europe’s first green steel plant. The goal of these types of climate tech startups in Europe is to roll out the first batches of steel by 2025, using hydrogen as a replacement for coal.
Additionally, this project aims to be the World’s First Large-Scale Green Steel Plant, using renewable energy and green hydrogen to produce steel with a drastically reduced carbon footprint. The company produces steel with up to 95% lower CO₂ emissions than steel made using coke-fired blast furnaces.
Lately, this is one of the climate tech startups in Europe that has secured substantial funding, including €6.5 billion, to drive its mission of decarbonizing the steel industry. H2 Green Steel aims to produce green steel with significantly reduced CO₂ emissions compared to traditional steelmaking.
Startup 4: Enpal
(Best Known for providing solar energy solutions)
- HQ: Berlin, Germany
- Launched: 2017
- Founders: Mario Kohle, Viktor Wingert, Jochen Ziervogel
- Company Type: Solar energy solutions providing firm.
- Valuation: $2.69 Billion
Enpal is a Berlin-based company, that provides all-in-one renewable energy solutions across Germany and Italy. Their offers include solar panels, batteries, wall boxes, heat pumps, and energy management systems.
However, this is one of the climate tech startups in Europe that uses an AI-based algorithm that analyzes roof images to determine the optimal solar panel configuration. Homeowners can then subscribe to Enpal’s solar services, paying over time (similar to a SaaS model). This eliminates upfront costs and simplifies adoption.
Currently, it has over 40,000 “solar systems for rent” installed in Germany and continues to add approximately 2,000 new solar energy system installations each month. Additionally, two-thirds of customers connected e-mobility by purchasing charging stations linked to their solar power systems.
Startup 5: Newcleo
(Best Known as Nuclear Unicorns)
- HQ: London, UK
- Launched: 2021
- Founders: Stefano Buono, Elisabeth Rizzotti, Luciano Cinotti
- Company Type: Clean and safe nuclear technology company
- Valuation: $1.3- $2 Billion
Newcleo operates in several countries, including the United Kingdom, France, and Italy. Among many nuclear based climate tech startups in Europe that are actively expanding its operations and developing nuclear technology projects, particularly focusing on innovative lead-cooled fast reactors and the production of Mixed Plutonium-uranium oxide (MOX) fuel.
The most significant project of Newcleo seems to be developing technology for uranium recycling and potentially building Small Modular Reactors (SMRs). It specifically mentions their uranium recycling project and positions it as central to their work. Also, it even highlights the large €300 million investment secured for this project.
Recently, Newcleo’s headcount over the last 12 months has been reported at around 270 employees. This is one of the financially acclaimed climate tech startups in Europe that has raised a total of $492 million in equity funding to date. Newcleo aims to commission a 30 MW lead-cooled fast reactor (LFR 30) in France by 2030.
Startup 6: 1KOMMA5°
(Best known for carbon-neutral energy systems)
- HQ: Hamburg, Germany
- Launched: 2021
- Founders: Philipp Schröder, Micha Grueber, Philip Liesenfeld, Jannik Schall, and Michael Hinderer.
- Company Type: Global decarbonization energy company
- Valuation: $1 billion+
1KOMMA5° operates in several countries, including Germany, Sweden, Finland, Denmark, Netherlands, Spain, and Australia. It is one of the climate tech startups in Europe that aims at installing carbon-neutral energy systems for private customers, including solar power systems, heat pumps, energy storage, charging infrastructure, and smart energy management.
Interestingly, one of their significant projects involved the installation of over 10,000 solar power systems across Germany. This helped reduce carbon emissions and provide clean energy to thousands of homes. A recent case study highlighted a 30% reduction in energy costs for customers using their integrated smart energy management systems.
1KOMMA5° is one of the types of climate tech startups in Europe with a significant year of growth and expansion. Over the last 12 months, the company has increased its headcount to around 1,900 employees. With 2,000 climate experts and 100,000 happy clients, the startup aims to create a better future for everyone by promoting climate-neutral solutions.
Startup 7: Electra
(Best known for advancement in electric aviation)
- HQ: France
- Launched: 2020
- Founders:
- Company Type: Electric vehicle charging company
- Valuation: $330 Million
Electra, a Paris-based startup specializing in ultra-fast electric vehicle charging stations, operates in several European countries. These include France, Germany, Belgium, Luxembourg, Italy, Switzerland, Austria, and Spain.
Subsequently, this is one of the climate tech startups in Europe known for advancement in electric aviation that is focused on expanding its charging point network across these regions, with a significant presence in urban areas and strategic partnerships to support its growth. It specializes in providing fast-charging solutions for electric vehicles.
Such climate tech startups in Europe focus on deploying ultra-efficient charging infrastructure in urban areas to support the increasing demand for electric vehicle charging. As of June 2022, Electra has 55 employees, with several dozen more being hired. Electra has raised a total of €160 million in equity funding.
Startup 8: PowerDot
(Best known as fastest growing EV Charging Point Operator)
- HQ: Lisbon, Portugal
- Launched: 2018
- Founders: Filipp Almakov, Alexey Pisarev, and Eric Glader
- Company Type: Electric Vehicle Charging Point Operator
- Valuation: $114 Million
This is one such climate tech startups in Europe that operate in various countries like Portugal, Spain, France, Belgium, and Luxembourg. The company focuses on creating charging solutions for electric vehicles, embedded in our daily lives. They invest in, install, and operate EV chargers in car parking lots, providing a turnkey solution for owners at no cost.
Also, Powerdot’s main project revolves around advancing sustainable mobility infrastructure through electric vehicle (EV) charging solutions. Recently, climate tech startups in Europe secured a substantial €100 million investment. This funding will catalyze transformative growth, enabling Powerdot to expand its network and contribute to the evolution of sustainable mobility across Europe.
PowerDot recently completed a successful €100 million funding round led by Antin Infrastructure Partners and Arié Group. This investment will further strengthen their position in the EV charging point operator market.
Startup 9: CustomCells
(Best known for lithium-ion battery technology)
- HQ: Itzehoe, Germany
- Launched: 2012
- Founders: Torge Thönnessen, Leopold König
- Company Type: Battery technology company
- Valuation: $62.1 Million
CustomCells is one of the widely spread climate tech startups in Europe which has sales and distribution in about 20 countries worldwide. They focus on premium battery solutions and target industries like electric vehicles and aviation. They aim to accelerate the shift towards sustainable mobility and a reduced carbon footprint.
Also, the company is a key partner in providing high-performance battery cells for Lilium’s electric air taxi vehicles. This project is significant because it contributes to the development of a new and sustainable mode of transportation.
As of April 2024, this climate tech startup in Europe employs 225 people, representing almost 140% growth since 2021. The startup has raised $62.1 million in a Series A funding round on December 8, 2022. Their commitment to battery cycling shows an effort of how aware they are of the environment this ensures waste minimization.
Startup 10: Morrow Batteries
(Best known for providing energy storage solutions)
- HQ: Arendal, Norway
- Launched: 2020
- Founders: Terje Andersen, Rahul Fotedar Ph.D, and Pål Brun
- Company Type: Industrial battery technology company
- Valuation: $53.3 Million
Morrow Batteries is a producer of battery cells. It offers lithium iron phosphate, nickel manganese cobalt, and lithium nickel manganese oxide batteries for energy storage and heavy mobility, including trains and ferries. This is one of the rare climate tech startups in Europe that caters to the automotive, commercial vehicle, and maritime industries.
Mostly, over the past 12 months, Morrow Batteries has grown significantly, reaching a headcount of around 200 employees. This is among many energy focused climate tech startups in Europe that operates in three countries that are Norway, Germany, and South Korea. The startup has raised approximately $206 million in total equity funding.
Morrow batteries are specialized to deliver battery solutions for the maritime industry’s transitions to cleaner energy sources. The batteries will allow marine vessels to travel further, faster, and cheaper cutting 800,000 tons of carbon dioxide in Scandinavian countries alone.
Conclusion
In the end, the climate tech sector in Europe is experiencing phenomenal growth, brimming with innovative startups tackling climate challenges. From renewable energy and battery technology to sustainable steel production and electric vehicle charging, these companies are paving the way for a greener future.
We hope this blog provided a glimpse into just ten of the many exciting climate tech startups leading the charge in Europe. As these companies continue to grow and expand, we can expect even more revolutionary advancements that will shape a more sustainable future for all.
