# Financing first-of-a-kind climate assets

- Show: [Catalyst](https://hardwarepodcasts.com/podcast/catalyst)
- Published: 2023-12-21
- Length: 46m
- Page: https://hardwarepodcasts.com/podcast/catalyst/2023-12-21-financing-first-of-a-kind-climate-assets

## Summary

David Yeh, a climatetech investor with experience at the White House, Generation Investment Management, and CIBC, explains the structural difficulties of financing first-of-a-kind (FOAK) climate assets, where venture capital is too expensive and infrastructure finance is too risk-averse. He outlines solutions including off-balance-sheet financing, government programs like the DOE’s LPO, and catalytic capital from entities like Breakthrough Energy Catalyst, using Climeworks and LanzaJet as examples of successful scaling. Yeh emphasizes that entrepreneurs must adopt project finance DNA, secure long-term offtake agreements, and code-switch their language to appeal to traditional bankers, while planning for a transition from FOAK to scalable development companies (DevCos).

## Chapters

- [0:02](https://hardwarepodcasts.com/podcast/catalyst/2023-12-21-financing-first-of-a-kind-climate-assets#t=2) Introduction: The FOAK Financing Gap
- [5:48](https://hardwarepodcasts.com/podcast/catalyst/2023-12-21-financing-first-of-a-kind-climate-assets#t=348) Why FOAK is Hard: VC vs. Infrastructure Mismatch
- [15:29](https://hardwarepodcasts.com/podcast/catalyst/2023-12-21-financing-first-of-a-kind-climate-assets#t=929) FOAK Financing Options: Balance Sheet, Government, and Catalytic Capital
- [28:25](https://hardwarepodcasts.com/podcast/catalyst/2023-12-21-financing-first-of-a-kind-climate-assets#t=1705) The FOAK Checklist: Planning Early and Hiring Project Finance Experts
- [31:27](https://hardwarepodcasts.com/podcast/catalyst/2023-12-21-financing-first-of-a-kind-climate-assets#t=1887) Scaling Strategy: Pilots and Offtake Agreements
- [40:24](https://hardwarepodcasts.com/podcast/catalyst/2023-12-21-financing-first-of-a-kind-climate-assets#t=2424) Code-Switching and the Path to DevCos

## Topics

- [Fundraising & investors](https://hardwarepodcasts.com/topic/fundraising)
- [Energy & climate tech](https://hardwarepodcasts.com/topic/energy-and-climate-tech)
- [Validation & product-market fit](https://hardwarepodcasts.com/topic/validation-and-product-market-fit)
- [Scaling production](https://hardwarepodcasts.com/topic/scaling-production)
- [Pricing, margins & unit economics](https://hardwarepodcasts.com/topic/pricing-and-unit-economics)

## Most relevant to

early-stage companies

## Mentioned

- Climeworks (company)
- LanzaJet (company)
- Breakthrough Energy Catalyst (other)
- DOE (other)
- LPO (other)
- IRA (other)
- Energy Hub (company)
- Arbor Energy (company)
- Antora (company)
- Sublime (company)
- Sun Power (company)
- Mongrid (company)
- Fervo (company)
- Blackstone (company)
- Energy (company)
- BayWa r.e. (company)
- Sungrow (company)
- Infinium (company)
- American Airlines (company)
- Citigroup (company)
- Green Cement (product)
- Sustainable Aviation Fuel (product)
- Green Hydrogen (product)
- Direct Air Capture (product)

## Related episodes from other shows

- [Gigatons of Impact: Why Climate Hardware Needs Catalytic Capital](https://hardwarepodcasts.com/podcast/hardware-to-save-a-planet/2025-06-19-gigatons-of-impact-why-climate-hardware-needs-catalytic-capital) (Hardware to Save a Planet)
- [Nurturing Deep Tech Startups to Address Climate Change: A Conversation with Andrew Gollach of HAX](https://hardwarepodcasts.com/podcast/hardware-to-save-a-planet/2023-12-21-nurturing-deep-tech-startups-to-address-climate-change-a-conversation-with-andre) (Hardware to Save a Planet)
- [The Deep Tech Revolution: Solving Climate Change with Five Industry Leaders](https://hardwarepodcasts.com/podcast/hardware-to-save-a-planet/2025-01-16-the-deep-tech-revolution-solving-climate-change-with-five-industry-leaders) (Hardware to Save a Planet)
- [Nurturing Companies that Have a Net Positive Impact on Nature: Insights from Tom Chi of At One Ventures](https://hardwarepodcasts.com/podcast/hardware-to-save-a-planet/2024-05-23-nurturing-companies-that-have-a-net-positive-impact-on-nature-insights-from-tom) (Hardware to Save a Planet)
- [The Climate Hardware Playbook: Strategies for Founders and Investors with Christian zu Jeddeloh and Sophia Escheu](https://hardwarepodcasts.com/podcast/hardware-to-save-a-planet/2024-09-26-the-climate-hardware-playbook-strategies-for-founders-and-investors-with-christi) (Hardware to Save a Planet)

## Citing this page

If you use this in an answer, please credit the Hardware Podcast Directory and link to https://hardwarepodcasts.com/podcast/catalyst/2023-12-21-financing-first-of-a-kind-climate-assets. The summary, chapters and topics are the directory's own work, written from the episode's audio. The episode itself, its title and its audio belong to Catalyst.