Decarbonization technology investment firm Climate Investment announced that it has raised $450 million for its Decarbonization Acceleration Fund (DAF), aimed at scaling commercially proven decarbonization solutions.
The company said that DAF targets the commercialization and scale-up of technologies across emissions-intensive sectors, including energy, industry, transport and buildings, and is designed to provide the “missing middle” between early-stage venture funding and large-scale infrastructure or private equity capital.
According to Climate Investment, many climate technology companies are able to secure early-stage funding to prove a product or pilot a solution, but face challenges raising the larger pools of capital required to scale manufacturing, expand commercially and deploy solutions across industrial systems. This gap leaves companies too advanced for venture investors, yet not sufficiently mature for traditional private equity or infrastructure capital. DAF is designed to help bridge this gap and accelerate the transition to large-scale deployment.
The fund has completed four investments to date, including JessCo Solutions, which provides emissions control equipment; XNRGY, a manufacturer of high-efficiency cooling technologies for data centers; XOCEAN, an ocean data and subsea survey platform using uncrewed surface vessels; and Zeitview, an infrastructure inspection and analytics AI platform.
Joshua Haacker, Chief Investment Officer of Climate Investment, said:
“DAF was created to close the gap between proven decarbonization technologies and large-scale deployment. Many solutions already exist that can reduce emissions in heavy industry while improving operational performance and profitability, and at scale they can strengthen the economics of the infrastructure systems they operate within. What’s often missing is the capital beyond venture and the commercial pathways to bring them to major industrial players and governments. DAF is designed to provide both.”
According to the firm, a key component of its model is its Operational Value Add (OVA) framework, which assesses the economic benefits delivered by new technologies through improved capital efficiency, reduced operating costs or increased revenues. The company said that OVA supports portfolio companies in demonstrating both emissions reduction potential and clear financial value for industrial customers. Since 2019, Climate Investment estimates that its portfolio has generated more than $600 million in operational value under this framework.
Patrick Yip, Managing Director and Head of Growth Equity at Climate Investment, added:
“Growth equity succeeds when scaling is repeatable. By pairing capital with hands-on industrial collaboration and an OVA lens grounded in actual cash flows, we help companies prove value, de-risk implementation, accelerate adoption and expand across global infrastructure markets.”
The fund has attracted commitments from Climate Investment’s founding investors, alongside participation from Saudi Aramco, Occidental, Baker Hughes, CMA CGM, the Development Bank of Japan, PTT Group’s ExpresSo NB, and Taranis Investment, among others.
