Invest in Oslo - Cleantech

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Published by Oslo Business Region, 09 November 2021

Dealroom Facts & Numbers

Three promising companies from Oslo:

  • Otovo is an online marketplace that organizes hundreds of local, high-quality, and qualified energy installers. During the first year, Otovo became the market leader in residential solar in Norway. Since then, they have sold and completed more than 6000 solar systems across Europe. According to Dealroom, Otovo has total funding of €62.1m.
  • Ocean Sun combines Norwegian maritime expertise and knowledge within photovoltaics and has developed a solution to help fulfill global energy needs. Recently, Green Platform awarded €7.75m to Ocean Sun in September 2021. (Photo: Børge Bjørneklett - Ocean Sun)
  • Saga Robotics has developed an autonomous and completely self-propelled robot that uses advanced algorithms to navigate in challenging conditions on farms. Based on Dealroom data, they have a total investment of €12.5m.

Opportunities in Cleantech

Norway generates 98% of its electricity based on renewables. The country is the seventh-largest hydropower nation in the world and the largest in Europe. Statkraft alone brings a portfolio of 15 000 MW of renewable energy to the European market.

The abundance of environment-friendly electricity is used to create energy-intensive products with the world’s lowest carbon footprint and to pilot the zero-emission society of the future. For example, half of the new cars sold in Norway in 2019 were electric, and the country is piloting battery-driven ferries and ammonia-powered boats.

In 2020, the Environmental Performance Index ranked Norway as the ninth most sustainable nation in the world. This is in part because Norway does not use the mined fossil fuels domestically but exports them instead; Norway supplies about 20 to 25% of the natural gas used in Europe.

As the cleantech industry is vital for our future, Oslo strives to bring more cleantech companies and investors to Norway. Currently, Oslo is home to clusters such as H2Cluster – The Norwegian Hydrogen Cluster, National Cluster for Solar Energy, NCE Smart Energy Markets, and Industrial Green Tech that are aiming to gather key stakeholders to collaborate, improve, and combat environmentally damaging factors.

Investment Highlights:

According to Menon's Report on Private Equity Funds in Norway, cleantech attracts increasing investment as the world moves towards renewable energy sources, and the petroleum sector draws fewer investments and capital. Cleantech received more than three times as much capital in 2020 as in 2019, attracting almost twice the number of investments, while the number of investments in Norwegian petroleum decreased sharply.

Overall, Norwegian PE firms' investments by sector and phase in 2020 have been 70 million NOK (€6.9m) for the cleantech industry. There were 15 investments in the cleantech sector by Norwegian PE firms in 2020.

Norwegian investors with an interest in cleantech include but are not limited to Televenture, Investinor, Nysnø Klimainvesteringer, North Venture, Katapult Ocean, We Are Human, Norselab, ProVenture Management, Alliance Venture, Five Invest, T:lab Capital, CoFounder, Mocean Invest, Fremt, Leadenhall Invest, Validé, Fyrin, Tidligfasefondet, and Strahl Capital.

In May 2020, the Norwegian government proposed a green transition fund of NOK 3.6bn (€3.5b) to help make the economy more sustainable. NOK 2bn (€1.9b) of the fund is managed by Enova, the state-owned company that has supported and helped finance over 10,854 green projects since 2012, including projects such as energy-efficient hotel renovations and installation of EV charging points.

Innovation Norway, the government-owned organization that supports Norwegian entrepreneurship, also has dedicated funds to cleantech in Norway and internationally. Together, these initiatives have also helped create a nurturing environment where sustainable startups can thrive.

In addition, international VCs including one of the world’s largest cleantech funds ArcTern Ventures’ Fund II (closing at €127m earlier this year) announced their first European office in Oslo. Canadian-based ArcTern has long considered Europe an attractive region for investing in sustainability-focused companies, and the Oslo office extends existing relationships with LP’s Nynsø and Equinor.

How do we support?

Oslo Business Region is strategically supporting the green shift by being part of the Oslo Cleantech initiative. Oslo Cleantech is a collaboration between ICT Norway, the Solar Energy Cluster, and the Oslo Business Region.

We have received support from the City of Oslo and the Regional Innovation Program (RIP) to investigate the potential for a cleantech hub in Oslo.