Shell Ventures investment director says the US legislation that pumps $369bn into clean energy shortens the time it takes for companies to profit from climate tech.
Technologies such as hydrogen will have a much shorter “payback” period as a result of the US Inflation Reduction Act, says Phoebe Wang, Shell Ventures investment director.
It is one of the many ways that the Act has made it more economically feasible for energy companies to invest in technologies that ease the transition to cleaner energy. The Act, the largest single investment in climate and energy in US history, provides tax credits over a 10-year timeframe to a variety of technologies, such as hydrogen and carbon capture.
Shell Ventures increased the size of its investment fund by $1.4bn in November last year, making it one of the largest corporate venturing funds in the climate tech sector.
The unit focuses on energy transition technologies, including blue and green hydrogen, carbon capture and battery storage. It has also moved into the mobility sector, channelling investments in technologies such as AI for autonomous driving and sustainable aviation fuels.
Wang spoke to GCV at its recent Executive Leadership meeting in Palo Alto, California, about the impact of the Inflation Reduction Act on energy investing.