January 13, 2022 | 12:34 p.m.
Breakthrough Energy Catalyst (BEC), a private public fund backed by the tycoon Bill Gates, is preparing to invest up to 15,000 million dollars in clean technology in the United States, the United Kingdom and the European Union.
According to US media, the company will invest in four key areas such as direct air capture, green hydrogen, aviation fuel, and energy storage technologies.
Emerging technologies require investment to reach the market at competitive prices. Breakthrough Energy Catalyst will fund large clean tech projects in four areas to lower the Green Premium for clean solutions.
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— Breakthrough Energy (@Breakthrough) January 12, 2022
The objective is subsidize technologies at a scale to help countries achieve net-zero emissions.
Breakthrough Energy Catalyst, a fund within the broader Breakthrough Energy Group that was founded by Gates and 2015, has raised more than 1.5 billion for businesses and charities so far.
BEC managing director Jonah Goldman told the Financial Times that the fund will mobilize the 15,000 million dollars using financial structures innovative and association agreements.
“We are the last stage financing in the process and, therefore, we will be the most risky capital there. We are really trying to demonstrate which are the technological paths that are going to be most effective”, he declared to the American media.
The fund will make philanthropic donations, equity investments in submarkets and product purchase agreements, according to information from the Financial Times.
BEC announced in September that it had secured investments from Microsoft, BlackRock, General Motors, American Airlines, Boston Consulting Group, Bank of America, and ArcelorMittal.
It has also received support from United States Department of Energyas well as the European Commission.
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Bill Gates-backed fund to invest $15bn in green tech