i(x) Net Zero PLC said its portfolio companies were continuing to perform in line with management expectations.
Chief executive Steve Oyer said the company remains committed to its investment strategy and is “emboldened by the success and strength of our underlying investee companies”.
“The company’s first few months as a public company have further crystallized the need to provide investors transparent access to ESG investing at scale in a public market forum. Even with the challenges of the current macroeconomic and political environment, each of our portfolio companies represents a long-term opportunity for investors who wish to align their values with their investments.”
Despite challenging market conditions and the economic volatility in the seven months since its listing, the company said the resilience shown by its investee companies “demonstrates the continuing global trend towards decarbonisation and the net zero energy transition, with the backing of government legislation and corporate commitments “.
Chief investment officer Pär Lindström noted that financial institutions are “increasingly committed to deploying capital into opportunities that advance energy transition and decarbonise the built environment which is being accelerated by government action”.
In the US, he pointed to government legislation that aims to funnel billions of dollars in tax incentives towards renewable power, battery development and carbon capture technology while UK initiatives include the Jet Zero Council’s public-private partnership to promote the development of production facilities for sustainable aviation fuels.
“As more investors follow i(x) Net Zero’s lead and invest in sustainable opportunities to fight climate change, we are excited by the number of new businesses we are seeing within the space,” he said.
Looking at the portfolio companies in its Sustainability in the Built Environment theme, i(x) said sustainable housing specialist MultiGreen Properties has 1,106 units currently under construction in supply-constrained US markets, such as Phoenix, Dallas and Salt Lake City.
ViaVerde, MultiGreen’s multi-phase development in Albuquerque, New Mexico, was said to be progressing with Phase I leasing due to start in October, with demand already outpacing supply, and groundbreaking planned in September for Phase II.
Sustainable Living Innovations (SLI), the building technology and product development company specializing in high-performance panelized buildings, is due to complete a 15-storey apartment complex in Seattle ready for occupancy in early 2023.
“This will be the world’s first multi-family tower designed to meet the net zero energy criteria set by the International Living Future Institute’s Living Building Challenge,” the company said.
Over the next 12 months, SLI is planning to expand its assembly plant locations on the west coast of the US, eventually moving east to serve additional markets, enabled by its US$53mln funding round in May, as well as potential international expansion opportunities in collaboration with i(x).
On the investee companies in the Energy Transition theme, WasteFuel, the US waste-to-fuels company was said to remain “well capitalized and positioned, with strategic investors and partners to generate significant future growth opportunities”.
The WasteFuel Marine Division is developing projects to produce renewable methanol as a marine fuel at strategic locations with partners including Maersk.
Based in British Columbia, Canada, Carbon Engineering Ltd, which has developed a proprietary technology called Direct Air Capture (DAC) that captures carbon dioxide directly out of the atmosphere, i(x) said it “has a clear path to global opportunity and is focused on partnerships”.
Its strategic initiative with Occidental Petroleum’s Low Carbon Ventures and subsidiary 1PointFive has a goal of building and operating 70 DAC facilities by 2035, each with an expected capacity of up to 1mln tonnes per year.
Context Labs, an impact software company, was said to be growing its customer base through its Decarbonization-as-a-Service (DaaS) offering, including a recent platform partnership to accelerate the verification of carbon emissions measurement with greater accuracy, and a multi -year partnership with Williams focusing on its natural gas market.
Enphys Management Company, i(x) Net Zero’s partnership with the Latin American Investment Group, continues to pursue merger opportunities as announced at its listing.