A lot can change in a few months.
The world of climate technology hasn't been turned upside down, but it sure is. More sarcastic. than summer The outcome of the US federal election could put a damper on the startup-friendly Inflation Reduction Act (IRA), which would throw a wrench into many companies' business plans.
At the same time, AI's ever-expanding computing demands have driven data center operators scouring the earth for power sources, nuclear, renewable, Interest in multiple power sources, including integration with batteries, is rising.
As 2025 dawns, it's a good time to look at the trends that are likely to define the next 12 months.
Advanced nuclear
From Microsoft restarting the reactor at Three Mile Island to Google, nuclear power has gotten a lot this year. 500 MW agreement with the startup Kairos. Driver? data centers; data centers; Data centers. Faced with power shortages with AI servers. In 2027Tech companies are racing to get electricity wherever they can find it.
Nuclear power is one of those areas. Historically, adding nuclear capacity has meant large power plants that take a decade or more to build. But a new wave of startups is proposing smaller designs that can be more easily mass-produced, or the thinking goes beyond. They have not been tested at scale; And the success of a nuclear startup depends on how the first few go.
In their sense, Those companies benefit from a new, improved regulatory process that should help speed the time from proposal to construction.
But they are also facing. Competition from renewable energy sources is fierce.proven and rapidly deployable; Expect to hear more about nuclear and technological love in the coming year if there is no breakthrough in efficiency for AI model training or inference.
Combined power
Our National Ignition Facility is just over two years old. Cool announcement It produced the world's first controlled net-positive synthesis reaction. Fusion startups are undoubtedly making news to kick off their fundraising efforts. Among this year's winners Acceleron Fusion, Marvel Fusion, Marathon Fusion, A type of energy, Xcimer energyversus Zap energy.
I expect more this year. combined power plant; Building even a demo unit is expensive. Many startups use prototypes; Work has already begun on commercial reactors, including demonstrations and commercial reactors. Commonwealth Integrated System versus Zap energy. Most have ambitions to have power plants online by the early 2030s; That means they have a lot of work to do in the coming years. That means they will need more money soon.
It's a risky technology, but the rewards include regenerating the trillion-dollar energy sector. Investors are expected to line up by 2025 if the companies can pass science and engineering milestones.
Hydrogen
Few sectors are as exposed to the Act's potential changes as hydrogen. Many startups hope to eventually deliver gas at $1 per kilogram, but not until later this decade or early next.
to get there They were optimistic that the two-year-old IRA could help them bridge the gap by subsidizing renewable electricity generation at $3 per kilogram of hydrogen. If this provision is broken, Many hydrogen starters can be dangerous to poop. There are already big companies. Adult skttish.
At the same time, scientists and investors have called it geological hydrogen, or hydrogen produced naturally inside the Earth. Can the industry be saved? The next 12 months can be make or break.
what else?
The coming year is sure to see more changes, especially as politicians and regulators demand growing power from AI. Changes to the permitting process could spur a wave of investment in grid-related technologies, but if those efforts stall. More companies are expected to sign agreements with electricity providers and connect directly to data centers.
Investors say it will be a challenge for many startups to raise new funding in the coming year. The most prominent companies are those that rely heavily on vulnerable subsidies.
But 2025 could be just as much of a curveball – it's useful to remember that the current wave of climate technology emerged during the first Trump administration. Next year may also have some surprises in store.