In brief: Shell, BP and ExxonMobil-backed fund bets on batteries

The Oil and Gas Climate Initiative’s $1bn debut fund has backed nickel-zinc battery producer ZincFive.

A climate investment vehicle backed by major oil and gas companies is betting on a battery technology with the potential to reduce carbon emissions.

The Oil and Gas Climate Initiative’s $1 billion Climate Investments Catalyst Fund I participated in a Series D funding round for nickel-zinc battery producer ZincFive, according to a statement. This marks the fund’s 27th investment.

ZincFive’s product has a carbon footprint 33 percent lower than that of lithium-ion batteries, according to research ZincFive commissioned from third-party research company Boundless in August 2020. “ZincFive’s technology significantly decreases the environmental and carbon concerns surrounding the growing use of batteries to electrify commercial and industrial sectors,” said OGCI CI principal Hannah-Mei Andrews in the statement.

Fund I’s capital comprises equal commitments from OGCI’s 12 member companies: Saudi Aramco, BP, Chevron, CNPC, Eni, Equinor, ExxonMobil, Occidental, Petrobras, Repsol, Shell and TotalEnergies. The fund was launched in 2016.

This story has been edited to reflect that OGCI has 12 members.