Amazon Invests $2B in Climate Tech Startups

Amazon Continues Climate Fund Investments

Amazon has revisited its $2 billion Climate Pledge Fund, making new investments in several emerging companies. These investments include a firm focused on developing rapid charging solutions for electric vehicles, aligning with Amazon’s objective of achieving net-zero carbon operations by the year 2040.

Recent Investments Announced

The company revealed on Wednesday that it has provided funding to both CMC Machinery and Resilient Power. Furthermore, additional capital was allocated to Infinium, a company specializing in renewable fuels technology that Amazon had previously supported.

Expanding Portfolio of Climate-Focused Companies

To date, Amazon’s Climate Pledge Fund has invested in a total of 11 companies. This includes earlier investments in CarbonCure, Pachama, Redwood Materials, Rivian, TurnTide Technologies, BETA Technologies, Ion Energy, ZeroAvia, and Infinium.

Resilient Power Secures Seed Funding

Resilient Power, headquartered in Austin, Texas, announced the completion of a $5 million seed funding round on Wednesday. Amazon participated in this round, though Energy Transition Ventures led the investment. Additional contributions came from GS Futures, the corporate venture capital division of GS Group from Korea.

Solid-State Transformer Technology

The startup has engineered a solid-state transformer that facilitates multi-megawatt medium voltage fast charging with a significantly reduced installation timeframe – approximately one-tenth of conventional methods. Its system is also capable of integrating solar generation, energy storage, vehicle-to-grid technology, and microgrid functionalities.

Fleet Charging and Amazon’s EV Goals

Resilient Power’s system is designed to simultaneously charge up to 24 vehicles. It can also seamlessly connect both direct current and alternating current sources to a medium voltage grid line, minimizing the need for expensive grid upgrades. Amazon’s investment in Resilient Power will contribute to the e-commerce giant’s broader decarbonization efforts, particularly in transportation.

This includes the ongoing integration of electric vehicles into its delivery fleet, with a goal of deploying 100,000 custom EVs by 2030. Rivian, another company backed by Amazon, is currently manufacturing these electric vans.

CMC Machinery and Sustainable Packaging

Another investment announced involves CMC Machinery, an Italian company specializing in the design and production of custom-sized boxes. These boxes are precisely tailored to the dimensions of the items being shipped.

Reducing Packaging Waste

This “right-sizing” approach aims to reduce or eliminate the necessity for single-use plastic padding, while still ensuring adequate protection during transit. Amazon anticipates that, by the end of 2022, CMC Machinery’s technology will reduce the volume of each package by an average of 24%.

The company projects this technology will lead to a reduction of approximately 1 billion plastic air pillows by the end of 2022.

Infinium’s Renewable Fuel Technology

Amazon also increased its investment in Infinium, a Sacramento-based company that converts renewable energy into “green” hydrogen. This green hydrogen, combined with waste carbon dioxide, is then used to produce ultra-low carbon fuels.

Securing Funding for Large-Scale Production

Infinium announced on Wednesday that it had closed a $69 million funding round, co-led by Amazon’s Climate Pledge Fund and a subsidiary of NextEra Energy Resources LLC. Additional investors included AP Ventures LLP, 8090 Partners, Mitsubishi Heavy Industries, and Pavilion Capital.

Electrofuels for Commercial Transportation

The newly acquired capital will be used to finalize the development of large-scale facilities capable of producing nearly 40 million gallons of electrofuels annually for the commercial transportation sector. These fuels are intended as a direct replacement for traditional jet fuel and diesel.

According to the company, they can be utilized in airplanes, ships, and truck fleets without requiring modifications to existing infrastructure or engine designs.