pipit on Tuesday October 1, 2024

From Cleantech 1.0 to Climate Tech 2.0

CleanTech 1.0 bust and what kind of companies are booming during Climate Tech 2.0

The fight against climate change has reignited a focus on clean technologies, with venture capital pouring back into the sector. This resurgence, dubbed Cleantech 2.0, comes after the spectacular collapse of Cleantech 1.0 in the early 2010s.

However, as the climate crisis accelerates, it’s clear that we need more than just clean technologies; we need visionary solutions to address the growing environmental and ecological challenges. This shift in focus is reflected in how the industry itself has evolved. What was once broadly referred to as cleantech is now often called climate tech.

Let’s explore what went wrong the first time and how Cleantech—or Climatech 2.0—is paving the way toward a more sustainable future. As a marketing agency committed to advancing solutions to the climate crisis, we’ll draw on examples from our own work to bring our insights and observations to life.

Cleantech 1.0: A Promising Start, a Sobering End

The mid-2000s saw a surge in investment in clean technologies like solar, wind, and biofuels. Fueled by government incentives and rising energy prices, Cleantech 1.0 companies promised a greener future. However, several factors contributed to its downfall:

Unrealistic Expectations: Many companies focused on immature technologies with high costs and long payback periods. Investors, eager for quick returns, became disillusioned.
Shifting Policy Landscape: Government support for clean energy fluctuated, creating uncertainty for investors and businesses.
Competition from Fossil Fuels: The rise of fracking dramatically lowered natural gas prices, making clean energy less competitive in the short term.

Climatech 2.0: Building on a Foundation of Lessons Learned

Climatech 2.0 recognizes the shortcomings of its predecessor and is taking a more measured approach.

Here are some key trends shaping the current boom:

Integration with Existing Infrastructure

Broader Scope

Increased Collaboration

Focus on Cost Competitiveness

Integration with Existing Infrastructure

Instead of revolutionary new systems, Climatech 2.0 aims to integrate clean technologies with existing infrastructure, making them easier to adopt.

Building on this trend, let’s take a look at how some of our clients are leading the charge:

Our German client Electrochaea is addressing this challenge by developing innovative technologies for integrating renewables into the gas grid. Such solutions play a vital role in the energy transition for utilities, power plants and the transportation industry. We’re proud to partner with Electrochaea in this mission and support it with professional marketing!

Swedish-based Climeon’s HeatPower systems are another prime example. These systems utilize existing heat sources to convert waste heat into electricity without requiring major infrastructure overhauls. Tasked with communicating the highly technical aspects of Climeon’s product in a clear, compelling, and accurate way, Orange Bird supported Climeon with full-cycle marketing and helped to target and communicate with the decision makers in the maritime, geothermal and manufacturing industries looking to reduce the environmental footprint of their companies.

Broader Scope

Climatech 2.0 goes beyond just energy generation. It encompasses areas like carbon capture, utilization, and storage (CCUS), sustainable agriculture, and green building materials.

AVID, the first retail carbon trading platform, exemplifies this broader scope by empowering individuals to participate in the fight against climate change. By enabling consumers to directly offset their carbon footprint through carbon credit purchases, AVID fosters a more democratized approach to carbon reduction. We worked closely with AVID to refine its positioning, define value propositions for its core target audience, and provide Go-to-Market support in the US. To learn more about how we collaborated with AVID to bring this vision to life, check out our detailed case study.

Another great example of this broader scope is Chromafora, a Swedish cleantech innovator, that tackles water pollution with their unique treatment technology. Their patented methods remove harmful heavy metals and PFAS from contaminated water, while also recovering valuable metals for recycling.

Dutch company Aquabattery, also a client of ours, provides a long-duration energy storage solution that enables the full integration of renewable energy sources into power systems. By reducing energy costs and carbon footprints, it’s a win-win scenario—exemplary of Climatech 2.0.

Our newest client from Canada, Momentum Materials™, specializes in the development and manufacturing of novel, proprietary nanoporous carbon materials. They offer a range of options in carbons and catalysts, as well as raw materials for novel carbon synthesis. We’re working with them to refine their target segments, define value propositions for each, and hone their positioning.

Increased Collaboration

There’s a stronger focus on collaboration between startups, established corporations, and governments. This creates a more supportive ecosystem for innovation.

Take, for instance, three of our clients who perfectly embody this trend:

Native, a leading American carbon offset project developer, offers catalytic, science-based climate projects for carbon insetting, built with local communities at the fore. Native engaged Orange Bird to help develop marketing communication materials for changemakers who want to support catalytic climate projects within their supply sheds; and ultimately pave the way for B2B partnerships that create positive change for the planet and communities.

Sweden-based SurfCleaner helps refineries and industries to recover oil, diesel and petrol from contaminated water – some of their customers have reduced greenhouse gas emissions by up to 95 percent. When SurfCleaner embarked on a global expansion initiative in 2020, they tasked Orange Bird with increasing brand awareness in new and existing markets and generating new leads for the brand’s proprietary clean water solutions.

Finally, SeaIndex stands as a testament to collaboration-driven innovation. The development of this pioneering tool involved input from forward-thinking yacht owners, shipyards, operators, and an independent certification company. Orange Bird supported SeaIndex by conducting comprehensive market research, refining their brand identity, positioning, and marketing strategy, and overseeing its successful implementation—helping solidify its place in the sustainable yachting industry.

Focus on Cost Competitiveness

Climatech 2.0 companies are prioritizing technologies that can compete with fossil fuels on price. This includes advancements in solar, wind, and battery storage that have significantly driven down costs

To illustrate this point, here is an inspiring example of a climate tech company making an impact:

Our client Universal Fuel Technologies‘ Flexiforming is a top-tier solution for converting renewable, fossil, and mixed feeds into high-quality fuel products. This technology supports the co-processing of both fossil and renewable feeds, giving operators the flexibility to control their decarbonization pace. Leveraging years of expertise in the fossil fuel sector, Unifuel has successfully commercialized this technology for mini-refineries in emerging markets.

Climatech 2.0: Sectors to Watch

While the entire Climatech 2.0 landscape is promising, some sectors are seeing particularly strong growth:

Energy Storage: Energy storage solutions like advanced batteries are crucial for integrating renewables into the grid and managing peak demand.
Green Hydrogen: Hydrogen produced from renewable energy sources holds immense potential for decarbonizing industries like transportation and heavy manufacturing.
Circular Economy: Companies developing technologies and business models to reduce waste and keep resources in use are gaining traction.
Nature Tech: This emerging sector focuses on leveraging natural processes and ecosystems to address environmental challenges, such as carbon sequestration through reforestation or the restoration of wetlands to manage water quality and prevent flooding.

As Climatech 2.0 continues to evolve and address the urgent challenges of the climate crisis, the success of these innovations is crucial if we want to stop the race to the collapse of our habitat. Companies that develop the right strategies and communicate their value effectively will be the ones leading the way.