The mining industry’s next frontier: the high seas

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As the demand for materials like lithium, cobalt, and nickel continues to rise, buoyed by clean energy-related industries, miners are now eyeing the largely untouched frontier at the bottom of the ocean.

But as deep-sea mining gets closer to being greenlit by international regulators, scientists and environmental activists are concerned about the potential harm the practice could do to marine ecosystems.

We hope you enjoy this month’s issue.

THE BIG STORY

It’s climate science: Atlas Capital bats for greentech in SEA

Image credit: Timmy Loen

Angel investor Djoann Mbaka Fal launched Atlas Capital, a climate-focused tech VC, two years ago. Now, the company is looking to help conglomerates with decarbonization, enabling clean-energy tech, and driving climate adaptation. Atlas is also keen to bankroll solutions around the significant reserves of blue carbon – or the carbon captured by coastal systems – in Southeast Asia.

DEEP READS

The looming threat of deep-sea mining
The debate around deep-sea mining reached a new peak when the International Seabed Authority (ISA), a UN affiliated agency tasked with regulating the mining of the ocean floor, formulated a draft decision last month that would allow companies to apply for a permit to mine the ocean’s floor, starting July.

That decision came directly in conflict with the high-seas treaty for protecting marine biodiversity, which nearly 200 nations agreed to just a few weeks earlier.

For decades, seabed mining has been a controversial practice: Some argue that the minerals collected from the bottom of the ocean – including copper, lithium and rare earths – are a promising source of materials for technologies and infrastructure considered crucial in decarbonizing the global economy, including electric vehicles, renewable energy, and upgrades to the grid. Activists and scientists have argued that not enough is known about the ecosystems at the ocean floor to guarantee that commercializing mining won’t cause irreparable damage.

Countries, including France, are urging a ban or delay in the commercialization of the mining practice. Conglomerates, including electric-vehicle manufacturers like Rivian, Renault, BMW Group, Volvo, and Volkswagen, have also put their foot down on sourcing minerals from the deep seabed.

And Last month, Lockheed Martin, the US arms behemoth, decided to exit the nascent industry with the sale of its deep-sea mineral business to Norwegian startup Loke Marine Minerals.

TRENDING NEWS

You can also check out Tech in Asia’s coverage of Asia’s greentech scene here.

1️⃣ The tiny island nation of Vanuatu just scored a big climate win
The United Nations passed a resolution put forth by Vanuatu, a country in the southwestern Pacific Ocean, asking the International Court of Justice to rule on the obligations of national governments to fight climate change.

Why it matters:
The resolution, hailed as a turning point in climate justice, could provide more clarity to the legal obligations of countries to address climate change. While the advisory opinions that the International Court of Justice issues are not binding, they can be used to pressure national governments into enacting policies and lay out pathways for future lawsuits.

2️⃣ Quake-prone Indonesia explores sites for nuclear power plants
Indonesia is exploring West Kalimantan and Bangka-Belitung as potential sites to build its first nuclear power plants.

Why it matters:
Interest around Nuclear power has shot up in Asia as countries grapple with rising costs related to natural gas and coal, which remain the dominant sources of power in the region.

3️⃣ UK to spend over $24 billion on carbon capture in clean-energy push
The UK plans to spend around US$24.6 billion subsidizing domestic carbon capture projects over the next 20 years. With the investment, the government aims to store 20 million to 30 million tons of carbon dioxide annually by 2030,

Why it matters:
The British government’s multibillion-dollar bet on carbon capture and storage tech has been met with criticism from scientists and environmental groups concerned that the country will become overly dependent on technology that has yet to be proven at scale.

Image credit: Wikimedia

4️⃣ Climate change is speeding toward catastrophe, next decade crucial, UN panel says
The Earth is likely to cross a critical threshold for global warming before the next decade closes, according to a new report by the Intergovernmental Panel on Climate Change (IPCC). Countries will need to enforce drastic measures to reduce their dependence on fossil fuels to prevent consequences of catastrophic heat waves, flooding, drought, crop failures and species extinction.

Why it matters:
The new findings come as China and the US – the world’s largest economies – continue to approve new large-scale fossil fuel infrastructure projects.

5️⃣ Big oil bankrolls more climate VC deals, a dilemma for founders
More fossil fuel companies are participating in green deals. According to PitchBook, more than one-fifth of all VC investment into climate tech startups last year came from oil and gas companies.

Why it matters:
Many fossil fuel companies are diversifying their assets as countries transition to cleaner energy sources. Those investments, however, may come with certain risks such as when oil and gas companies gain a large internal influence.

STARTUP WATCH

1️⃣ Ola Electric eyes up to $300m raise in new round
The India-based EV maker is looking to raise up to US$300 million in a new round. With the new investment, SoftBank’s stake in the company will go down to nearly 19% from 24%. The company raised US$200 million at a valuation of US$5 billion in January.

2️⃣ IntegrityNext raises $109m for a platform to audit supply chains for ESG compliance
The Munich-based environmental, social, and governance startup has raised an equity round of US$109 million from sole investor EQT Growth. IntegrityNext’s supply-chain software helps organizations automatically audit and monitor suppliers for compliance with ESG rules.

3️⃣ Agreena lands $50m to expand regenarative agriculture and carbon credits
The Danish agritech startup has raised US$50 million in a series B round led by German venture capitalist HV Capital. Agreena’s soil carbon credit program aims to incentivize farmers to practice sustainable farming.

4️⃣ Andes Raises $30m in series A for carbon sequestration technology
The California-based climate tech startup has raised a US$30 million series A round from investors, including Leaps by Bayer, Cavallo Ventures, and Germin8. The company leverages microorganisms that live in large patches of farmland to capture carbon dioxide.

5️⃣ Type One Energy raises $29m to work on a crazy fusion device
The Wisconsin-based fusion power startup has closed an oversubscribed US$29 million round co-led by Breakthrough Energy Ventures, TDK Ventures, and Doral Energy Tech Ventures. The company sets out to commercialize a kind of nuclear fusion device known as a stellarator.

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