What are the latest news in the femtech market?
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The climate tech market is moving fast, with major deals, record fundraising rounds, and bold infrastructure bets reshaping the energy transition.
In this post, we cover the biggest news stories across energy storage, grid infrastructure, carbon removal, and clean mobility.
We constantly update this blog post with the latest climate tech market news so you always have the freshest picture of where capital and strategy are moving.
And if you want to better understand this new industry, you can download our pitch covering the climate tech market.
Insights
- Grid infrastructure is now the biggest bottleneck in the climate tech market: Engie's £10.5bn UK grid acquisition, TPG's takeover of Sabre Industries, and Siemens Energy's $1bn US manufacturing bet all signal that physical network ownership is becoming a strategic priority.
- Battery storage is the fastest-growing segment in the climate tech market right now: Tesla's energy storage business is outpacing every other division of the company, validating the sector's profitability at public-market scale.
- The total capital raised in the climate tech market in just the fundraising stories covered here exceeds $1.2bn, showing that investor conviction in clean energy and carbon removal remains strong despite macro headwinds.
- Carbon removal in the climate tech market is consolidating: Terradot's acquisition of Eion signals a shift from fragmented pilots to fewer, larger operators capable of delivering at scale.
- Virtual power plants are becoming a serious infrastructure play in the climate tech market: Lunar Energy's $232M raise shows that home batteries orchestrated as grid assets are attracting growth-stage capital.
- Big tech is moving deeper into the climate tech market supply chain: Google's participation in Redwood Materials' $425M round links battery recycling, critical minerals, and data center energy demand into one investment thesis.
- Africa's two-wheel electric mobility segment is maturing in the climate tech market: Spiro's $50M debt round backed by institutional lenders suggests that battery-swapping business models have reached credible unit economics.
- Portfolio rotation is accelerating in the climate tech market: Orsted's €1.44bn sale of its European onshore renewables platform to CIP shows that even top developers are reshaping asset portfolios to fund their next priorities.
- Bidirectional EV charging could unlock a new distributed resource class in the climate tech market: Enphase's global IQ platform demonstration shows that millions of EVs could soon act as home batteries and grid-support assets simultaneously.
- Fusion energy is attracting unprecedented early-stage capital in the climate tech market: Inertia Enterprises' $450M raise, one of the largest deeptech climate rounds on record, signals growing investor appetite for always-on, firm clean power.
In our femtech market deck, we identify repeatable patterns you can use if you’re building in this market
Summary table of the latest news in the climate tech market
We define the climate tech market as technologies whose main purpose is to reduce greenhouse gas emissions or help people, assets and ecosystems adapt to the impacts of climate change.
We include solutions across energy, mobility, buildings, industry, food and land use, carbon removal, and the digital and financial tools that directly enable these mitigation or adaptation outcomes.
We exclude broad ESG and sustainability tools, general environmental or social impact solutions without a clear climate focus, and consumer products whose climate impact is indirect, marginal or mainly marketing-driven.
You can also read our detailed analysis to understand 'what are the quarterly updates in the climate tech market.
| News | Category | Date | Source |
|---|---|---|---|
| Engie's £10.5bn UK grid buy reshapes Europe's power-network race | M&A | Feb 25, 2026 | The Guardian |
| Africa e-mobility infrastructure gets $50M debt to expand battery swapping | Fundraisings | Feb 24, 2026 | AP News |
| Fusion bet explodes: Inertia raises $450M to chase grid-scale lasers | Fundraisings | Feb 11, 2026 | TechCrunch |
| Carbon removal consolidates: Terradot buys rival Eion to scale enhanced rock weathering | M&A | Feb 6, 2026 | Business Wire |
| Grid buildout goes PE: TPG Rise Climate takes control of Sabre Industries | M&A | Feb 6, 2026 | Blackstone |
| Home-battery surge: Lunar Energy raises $232M to build grid-helping fleets | Fundraisings | Feb 4, 2026 | TechCrunch |
| India carbon removal scales: Varaha locks a ~$45M Series B led by WestBridge | Fundraisings | Feb 4, 2026 | Economic Times |
| Siemens Energy drops $1B on US grid hardware as electricity demand spikes | Market expansions | Feb 3, 2026 | Siemens Energy |
| Ørsted sells European onshore renewables to CIP for €1.44bn | M&A | Feb 2, 2026 | Orsted |
| Your EV becomes a home battery: Enphase shows bidirectional charging platform | Product launches | Feb 2, 2026 | Enphase |
| Tesla's batteries become the growth engine, not the cars | Financial results | Jan 29, 2026 | TechCrunch |
| Battery recycling meets AI power: Redwood Materials round jumps to $425M with Google | Fundraisings | Jan 28, 2026 | Business Insider |
Latest news of the climate tech market
Engie bets £10.5bn on UK electricity networks in one of Europe's biggest grid deals
M&A
What happened?
Engie agreed to acquire UK Power Networks, the company that manages electricity distribution for around 8.5 million customers in and around London. UK Power Networks operates regulated networks that earn steady, rules-based returns and are central to connecting renewable energy, batteries, and EV chargers to the grid. The deal is one of the largest climate tech market transactions in recent memory.
When was it?
The deal was announced on February 25, 2026.
Why is it big news?
Grid bottlenecks are now the number one constraint on the energy transition, and owning a major distribution network puts Engie at the center of every electrification decision in one of Europe's most important markets.
Why should you care?
If you're an investor in the climate tech market, grid ownership offers predictable, inflation-linked cashflows and a structural "picks and shovels" position as renewables and electrification scale. If you're an entrepreneur in the climate tech market, expect a wave of new spending on grid upgrades, which creates demand for flexibility software, storage, connection management, and data tools.
In our femtech market deck, we have collected signals proving this market is hot right now
Spiro raises $50M in debt to scale battery swapping across Africa's fast-growing e-mobility market
Fundraisings
What happened?
Spiro secured $50 million in debt financing from Afreximbank, Nithio, and the Africa Go Green Fund to expand battery swapping stations, fast charging, and related infrastructure across Africa. Spiro focuses on electric two-wheelers, which are the most common form of transport in many African cities. The raise signals growing confidence in the unit economics of Africa's climate tech market for clean mobility.
When was it?
The financing was announced on February 24, 2026.
Why is it big news?
Decarbonizing two-wheel mobility is one of the most direct ways to cut urban transport emissions across Africa, and institutional debt capital backing this model shows the business case is becoming real.
Why should you care?
If you're an investor in the climate tech market, debt-funded infrastructure rollout signals that asset-backed business models in emerging markets are maturing enough to attract institutional capital. If you're an entrepreneur in the climate tech market, swapping networks create platform opportunities in payments, maintenance, route optimization, and energy services that can scale alongside the physical infrastructure.
In our femtech market deck, we help you understand how the market is structured
Inertia raises $450M in one of the climate tech market's largest ever fusion energy rounds
Fundraisings
What happened?
Inertia Enterprises raised $450 million from Bessemer Venture Partners and Alphabet's GV to develop high-powered lasers for fusion energy, building on research from the U.S. National Ignition Facility. The company's long-term goal is a grid-scale fusion power plant that can deliver firm, always-on clean electricity. This is among the largest deeptech climate tech market rounds ever recorded.
When was it?
The round was announced on February 11, 2026.
Why is it big news?
Investors are betting serious capital on fusion energy, which would solve intermittency and be the ultimate answer to decarbonizing baseload power worldwide.
Why should you care?
If you're an investor in the climate tech market, mega-rounds like this reset expectations for check sizes and timelines in deeptech energy, and signal that top-tier VCs are willing to hold long-duration bets on firm clean power. If you're an entrepreneur in the climate tech market, this shows that credible teams with clear technical milestones can raise very large rounds, even for technologies that are still years from commercialization.
In our femtech market deck, we will give you useful market maps and grids
Terradot acquires Eion to build the climate tech market's leading enhanced rock weathering platform
M&A
What happened?
Terradot agreed to acquire Eion's assets, combining the two companies' data, intellectual property, teams, and customer contracts into a single enhanced rock weathering (ERW) carbon removal platform. Enhanced rock weathering involves spreading crushed silicate rock on farmland to accelerate natural carbon absorption from the atmosphere. The deal is a clear sign that the carbon removal segment of the climate tech market is moving from many small pilots to fewer larger operators.
When was it?
The acquisition was announced on February 6, 2026.
Why is it big news?
Consolidation in carbon removal reduces the fragmentation that has made it hard for buyers to trust delivery, which is exactly what the climate tech market needs to scale long-term offtake contracts.
Why should you care?
If you're an investor in the climate tech market, consolidation can improve delivery credibility and reduce go-to-market costs across the carbon removal sector. If you're an entrepreneur in the climate tech market, specialized teams with strong measurement, reporting, and verification (MRV) capabilities or supply chain advantages are becoming attractive acquisition targets.
In our femtech market deck, we have designed useful charts to give you full market clarity
TPG Rise Climate buys control of Sabre Industries, betting big on the grid buildout supercycle
M&A
What happened?
TPG Rise Climate signed an agreement to acquire a majority stake in Sabre Industries from Blackstone Energy Transition Partners, with Blackstone retaining a minority position. Sabre Industries manufactures towers and structural components used in power transmission and data center construction. The deal is a direct bet on the grid infrastructure buildout that is central to the climate tech market's energy transition.
When was it?
The deal was announced on February 6, 2026.
Why is it big news?
As grid capital expenditure accelerates, suppliers of towers and structures become high-demand chokepoints, making Sabre a strategic asset in the broader climate tech market buildout.
Why should you care?
If you're an investor in the climate tech market, physical grid supply chains are becoming as strategically important as software, and ownership of key component manufacturers offers durable cashflows. If you're an entrepreneur in the climate tech market, more grid projects mean more demand for design software, construction technology, asset forecasting, and grid optimization tools.
In our femtech market deck, we show you long-term trends so you can make better decisions
Lunar Energy raises $232M to turn home batteries into a virtual power plant for the grid
Fundraisings
What happened?
Lunar Energy disclosed two consecutive rounds: a $130M Series C and a $102M Series D, totaling $232M raised. Lunar Energy plans to use the capital to scale manufacturing and build fleets of home batteries that can be coordinated as a virtual power plant to support the grid during periods of high demand. This positions Lunar Energy as a key player in the distributed storage segment of the climate tech market.
When was it?
The fundraise was disclosed on February 4, 2026.
Why is it big news?
Behind-the-meter storage combined with grid orchestration software is becoming core infrastructure in the climate tech market, and Lunar Energy's double raise shows that investors see it as a growth-stage category, not an early-stage experiment.
Why should you care?
If you're an investor in the climate tech market, virtual power plant platforms can generate recurring revenue from both hardware sales and grid services contracts, with economics that improve as grid stress increases. If you're an entrepreneur in the climate tech market, utilities and grid operators increasingly need flexible demand and supply resources, which creates large contract opportunities for teams that can aggregate distributed devices reliably.
In our femtech market deck, we answer all the common questions from investors and entrepreneurs
Varaha raises ~$45M to scale farm-based carbon removal across India and the Global South
Fundraisings
What happened?
Varaha raised approximately $45 million in a Series B round led by WestBridge Capital, backing the company's expansion of agricultural carbon removal projects across India. Varaha works with farmers to generate high-integrity carbon credits through soil carbon and biochar projects. The round is one of the clearest signals yet that mainstream capital is moving into scalable carbon removal in emerging markets within the climate tech market.
When was it?
The round was announced on February 4, 2026.
Why is it big news?
High-integrity carbon removal supply from the Global South, delivered at scale and at competitive cost, is one of the biggest gaps in the global carbon removal market today.
Why should you care?
If you're an investor in the climate tech market, operational scale and cost advantages in emerging markets can create durable competitive positions as global carbon removal demand grows. If you're an entrepreneur in the climate tech market, buyers of carbon removal are prioritizing reliable delivery, which means startups that can standardize measurement, reporting, and verification across many project sites become fundable at scale.
In our femtech market deck, we tell you what to focus on
Siemens Energy invests $1bn in US grid manufacturing as electricity demand hits new highs
Market expansions
What happened?
Siemens Energy announced $1 billion in new U.S. manufacturing investments and approximately 1,500 new jobs, expanding production capacity for grid equipment and turbines across multiple American states. The investment targets transformers, switchgear, and other hardware that are currently in short supply and creating real-world bottlenecks for the climate tech market's energy transition. Siemens Energy said the move responds directly to surging electricity demand driven by data centers, EVs, and industrial electrification.
When was it?
The announcement was made on February 3, 2026.
Why is it big news?
Grid equipment supply constraints are one of the most overlooked physical limits on the energy transition, and scaling factory capacity is one of the few ways to remove that bottleneck in the climate tech market.
Why should you care?
If you're an investor in the climate tech market, expanding the grid equipment supply chain is a powerful enabler for the entire renewables and electrification buildout, with durable demand driven by structural electricity growth. If you're an entrepreneur in the climate tech market, more procurement opportunities will open up, but competition for components, talent, and manufacturing space will intensify at the same time.
In our femtech market deck, we identify pain points entrepreneurs should prioritize
Orsted sells its European onshore renewables platform for €1.44bn in a major climate tech portfolio rotation
M&A
What happened?
Orsted signed an agreement to sell its European onshore wind, solar, and storage platform to Copenhagen Infrastructure Partners (CIP) for €1.44 billion. Orsted said the sale will strengthen its finances and allow the company to refocus on its core offshore wind business. The transaction is a major secondaries deal that will set new pricing benchmarks for onshore renewable platforms across Europe in the climate tech market.
When was it?
The agreement was signed on February 2, 2026.
Why is it big news?
Large portfolio rotations from top developers signal a maturing climate tech market where capital is being redeployed toward higher-conviction bets rather than held across every asset class.
Why should you care?
If you're an investor in the climate tech market, deals like this reprice onshore platforms and create acquisition benchmarks for pipeline valuations across Europe. If you're an entrepreneur in the climate tech market, large asset owners are increasingly willing to buy proven platforms rather than build from scratch, which is good news for teams that can package pipelines with strong execution track records.
In our femtech market deck, we dentify risks investors and builders need to be aware of
Enphase shows that your EV can power your home and support the grid at the same time
Product launches
What happened?
Enphase Energy shared demonstrations and updates on its IQ Bidirectional EV Charging platform, tested across multiple vehicle models and homes in the U.S. and Europe. The platform allows an EV to send stored energy back into the home or grid, turning millions of cars into distributed batteries. Enphase confirmed it is targeting volume production later in 2026, which would mark a significant milestone for the climate tech market's distributed energy segment.
When was it?
The demonstration was shared on February 2, 2026.
Why is it big news?
Bidirectional charging could turn the existing global EV fleet into a massive distributed storage and grid-support resource, without requiring any new hardware investment beyond the charger.
Why should you care?
If you're an investor in the climate tech market, this expands the addressable market for distributed flexibility platforms that combine hardware, software, and grid services revenue streams. If you're an entrepreneur in the climate tech market, interoperability standards, utility integration programs, and installer ecosystems are all critical enablers, creating many specialist niches to build in.
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Tesla's energy storage business is now growing faster than any other part of the company
Financial results
What happened?
Tesla's latest financial filings show that its energy storage business, which includes the Megapack utility-scale battery system, is growing faster than its automotive division and contributing a rising share of the company's profits. Tesla's energy storage deployments have accelerated significantly as demand from utilities, data centers, and grid operators surges. This is a landmark moment for the climate tech market, as it proves that large-scale battery storage can be both profitable and scalable at a public company level.
When was it?
The financial results were reported on January 29, 2026.
Why is it big news?
When a company of Tesla's scale proves that storage is profitable, it validates the entire energy storage segment of the climate tech market and pulls private capital multiples upward.
Why should you care?
If you're an investor in the climate tech market, public-market proof of storage profitability often triggers upward revaluation of private storage companies and increases M&A appetite among suppliers and software providers. If you're an entrepreneur in the climate tech market, customers will raise expectations for cheaper, faster-to-deploy, and easier-to-finance storage solutions, which is both a pressure and an opportunity.
In our femtech market deck, we like to quantify things to make things easier to understand
Google joins Redwood Materials' $425M round, linking battery recycling and AI energy demand in one bet
Fundraisings
What happened?
Redwood Materials' Series E financing grew to $425 million after Google joined as a new investor in the round. Redwood Materials is expanding from battery recycling into grid-scale energy storage using second-life EV batteries, targeting data centers and utilities as customers. The Google investment directly connects three of the biggest themes in the climate tech market: critical minerals, battery supply chains, and data center electricity needs.
When was it?
Google's participation was reported on January 28, 2026.
Why is it big news?
Combining battery recycling with grid storage creates a circular supply chain that reduces dependence on newly mined critical minerals while meeting surging electricity demand from AI infrastructure.
Why should you care?
If you're an investor in the climate tech market, circular battery platforms with multiple revenue streams across recycling, manufacturing, and storage can build defensible infrastructure positions. If you're an entrepreneur in the climate tech market, large tech companies are actively looking for energy and storage capacity partners, creating real partnership opportunities for startups that can credibly reduce grid pain for hyperscalers.
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