Tracking forest health with environmental sensors

This week, we're exploring new sensor technology to track forest health, how companies are managing the environmental impact of data centers, and investor interest in biodiversity.

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Technology to track and improve forest health: Environmental sensing technology is being used to track various aspects of the natural world, from forest fires to threatened species, with devices becoming smaller, smarter, and more interconnected. Devices like the Silvanet Wildfire Sensor can detect forest fires within the first hour by "smelling" gases like hydrogen and carbon monoxide, while AI-powered sensors can distinguish between real fires and other sources of smoke. Treevia's digital dendrometers relieve foresters of tedious work by measuring tree growth and transmitting data directly to a computer while also providing insights into climatic impacts on reforested areas. The Guardian, a device from Rainforest Connection, uses a recycled smartphone to listen for the sound of chainsaws or gunshots, transmitting recordings to the cloud for analysis and alerting local authorities in near real-time. The BiodivX Drone collects environmental DNA (eDNA) from leaves and branches, allowing scientists to study the distribution and behavior of animals, while the Leaf Sensor measures gas exchange between a leaf and its surroundings, detecting stress-related chemicals emitted by trees under stress. Plant-e, a Dutch company, powers its sensors using electrons released when bacteria break down organic matter in the soil around plants, providing an alternative to battery power. And seed-dropping drones, developed by companies like Dendra Systems, are being used to scale up and accelerate tree planting efforts, particularly in remote areas difficult for humans to access, and can monitor the growth and health of newly planted trees.

Mercedes develops solar paint: Researchers at Mercedes-Benz are working on a special solar paint coating that can be applied to the exterior of electric vehicles (EVs) to harvest energy from the sun and feed it into the vehicle's battery. The photovoltaic material is a paste that is 5 micrometers thin and weighs 50 grams per square meter, making it flexible enough to fit around curves like fenders, providing more opportunities for solar power than traditional glass solar panels. On an average midsize SUV, the solar paint would take up about 118 square feet and produce enough energy to travel up to 7,456 miles per year under ideal conditions, depending on the strength of the sun and the amount of shade. Unlike typical solar panels, the solar paint does not contain rare earth metals, silicon, or other toxic materials, making it easier to recycle, and Mercedes is researching how to make it easy and affordable to repair.

Renewables pass fossil fuels in the UK: Renewable energy from wind, solar, and hydropower is expected to account for approximately 37% of the UK's electricity output this year, surpassing fossil fuels, which will account for around 35%. Wind power may overtake gas as the largest single source of generation, with wind accounting for 29.34% of electricity generation and gas accounting for 30.4% in 2024, although the final result is too close to call. This shift marks significant progress towards a lower carbon electricity system, compared to a decade ago when gas and coal accounted for almost 60% of the country's generation. The UK government aims to have an almost entirely "clean" power system by 2030, with Labour's election manifesto initially targeting "zero-carbon electricity" by 2030, but later revising the target to "95% clean power by 2030".

Cash pile for climate tech grows as investments slow: Climate tech funds have seen a significant increase in assets under management, with a 20% bump over last year, adding $47 billion in new capital for a total of $86 billion. Large financial institutions such as Brookfield Corp. and TPG Inc. have raised second, third, or fourth climate-targeted funds, which is a positive sign that their initial funds were successful. Despite the capital increase, the number of investors participating in climate deals has decreased by 18%, and the deployment of capital has slowed, indicating a shift towards more cautious investing. There has been a 9% year-on-year decline in the number of new, climate-focused venture capitalists (VCs) as limited partners have become less willing to invest in VCs without proven track records.

Massive data center strains community's electric grid: QTS, a data-center developer backed by Blackstone Inc., is building a massive data center complex in Fayetteville, Georgia, spanning over 600 acres and consisting of 10 bunkers that will hold thousands of computers for companies like Microsoft. The complex is expected to consume as much electricity as about a million US households, prompting Georgia Power to rush and build the necessary infrastructure to meet the demand, including high-voltage power lines that will encroach on over 100 properties and houses. The US Department of Energy has reported that connection requests for big data centers are stretching the capacity of local grids to deliver and supply power, highlighting the need for increased investment in infrastructure to support the growth of the tech industry. The growth of the data center industry is expected to drive a 40% increase in power demand over the next decade.

Microsoft unveils zero-water data center: Microsoft has unveiled a new data center design that utilizes zero water to cool the facilities' chips and servers, aiming to mitigate the climate impact of its data center expansion. The new design, launched in August, eliminates the need for the over 125 million liters of water each data center typically uses per year, instead using a "closed loop" system to recycle water that is added during construction and continually circulated. Although the new system reduces water consumption for cooling, data centers will still require fresh water for worker facilities such as bathrooms and kitchens. 

Investors consider biodiversity: The world is experiencing a significant extinction episode, with over 1 million species in danger of being wiped out, according to the UN, and species being lost at up to 1,000 times the natural rate. The financial services industry has historically neglected biodiversity, but there is a growing awareness and engagement driven by investors recognizing the fragility of nature and its impact on inflation and GDP. A PwC analysis found that more than half of the world's economic output, approximately $58 trillion of global GDP, is moderately or highly dependent on nature. A growing number of asset management groups now offer funds that promise to protect the planet's natural ecosystems, including Greensphere Capital's £150 million nature-based VC fund and funds focusing on ocean biodiversity, such as Katapult Ocean and Ocean 14 Capital. Biodiversity funds can be broadly categorized into three types: solutions-focused, risk-orientated, or a combination of both, with solutions-focused funds directing investments to companies working to stem biodiversity loss through initiatives such as regenerative agriculture and alternatives to petroleum-based plastics.

Green subsidies spark investor interest: The global competition for renewable energy is intensifying, with the US, Europe, and China offering billions of dollars in subsidies to gain market dominance. The EU has adopted the Net-Zero Industry Act, aiming to make investing in clean technologies more appealing by easing bureaucracy, accelerating project approvals, and targeting 50 million tonnes of carbon dioxide storage capacity in Europe by 2030. The legislation has prompted companies to take action and is expected to accelerate demand for European-based manufacturers, including solar cell makers. The EU's action is a response to renewable energy subsidies adopted by the US and China in recent years, with the Biden Administration's 2022 Inflation Reduction Act having initially angered European officials and prompted the EU to accuse Washington of breaching World Trade Organization rules. The EU's net zero law aims to have EU manufacturers meet 90% of the bloc's domestic demand for electric vehicle batteries by 2030 and is also an attempt to prevent a flood of Chinese EVs in the EU market. China's rapid development of electric vehicles, heavily subsidized by the government, has shocked competitors worldwide, with Chinese electric battery makers receiving subsidies that could account for more than 50% of the cost of the product.

Biden Administration announces commitment to accelerate the blue economy: The Biden Administration has identified four business "accelerators" to boost the blue economy, recommending awards totaling $54.3 million to support small businesses and entrepreneurs in developing solutions for coastal resilience and a sustainable blue economy. The investment is funded by the Inflation Reduction Act and is part of NOAA's commitment to advance maritime commerce. The accelerators will recruit small businesses and startups nationwide, providing them with resources, mentorship, and funding to bring their products to market, with recruitment beginning in the next 6-12 months.

British Columbia bets on wind: The Canadian province of British Columbia is set to develop wind farms worth up to C$6 billion ($4.2 billion), with BC Hydro awarding 30-year purchase agreements to nine projects that will generate almost 5,000 gigawatt hours of electricity per year. The projects, expected to be operational by 2031, will add approximately 8% to the region's grid, helping to meet the province's growing power demand, which is expected to rise by 15% or more by 2030. Eight of the nine winning projects are 51% owned by Indigenous groups, known as First Nations. The development of these wind farms is part of BC's larger plan to upgrade its grid, which is expected to cost C$36 billion over the coming decade and will help reduce the province's reliance on imported power, which has been significant in recent years due to drier weather.

Solar farm management startup raises $35 million: Raptor Maps, a Boston-based startup, raised $35 million in a Series C funding round led by Toronto-based Maverix Private Equity to manage and optimize solar farms using its software and drone technology. Raptor Maps' software digitally models solar panel arrays, aggregates data and images, and uses machine learning to analyze the information, allowing operators to detect issues such as circuitry problems or vegetation obscuring the panels. The software can automate inspections and launch drones to investigate issues, freeing up labor and other resources.