FullCycle Energy Fund

What is FullCycle Energy Fund?

FullCycle Energy Fund, established in 2013, operates as an investment entity focused on mitigating climate change by investing in the growth stage of companies with developed infrastructure technology critical to climate solution.

Specifically, they channel their investments into technologies that significantly reduce short-lived climate pollutants (SLCPs), which are known to have a profound warming effect within the first twenty years of their emission, quantified as GWP 20 (Global Warming Potential over 20 years).

FullCycle's strategic approach involves accelerating the commercialization and deployment of these technologies by playing an active role as a capital and operational partner.

SLCPs include greenhouse gases like methane (CH4), hydrofluorocarbons (HFCs), and nitrous oxide (N2O), which despite accounting for 24% of atmospheric greenhouse gases, contribute to nearly half of global warming effects.

The fund's investment strategy is anchored on their proprietary methodology, Carbon Return on Investment (CROI-20), which prioritizes investment decisions based on the 20-year global warming potentials of gases rather than the traditional 100-year metrics, supporting more urgent and stringent climate impact measures.

FullCycle is committed to the deployment of market-ready technologies identified as 'six continent solutions' due to their broad geographic applicability.

These technologies are expected to be at NASA's Technology Readiness Level (TRL) 7 or 8, illustrating proven efficacy and readiness for global commercial rollout. FullCycle insists on a gigaton CO2(e) abatement per year per technology as a threshold for their investments, aiming for high scalability and dramatic climate impact.

Moreover, they seek compelling financial returns with internal rates of return in the mid-teens, backed by secure supply and off-take agreements. FullCycle's long-term strategy includes obtaining rights to invest in the project assets of their platform companies through preferential terms, such as a Right of First Refusal (ROFR).

The firm's portfolio includes companies like Synova, which develops systems for converting trash into clean energy or materials, Sustainitech, focusing on sustainable agriculture technology, and InPipe Energy, with its innovative micro-hydro system for renewable electricity generation.