Wind Capital is a European venture capital fund, specializing in deep tech and climate tech investments. Founded by former entrepreneurs, the fund targets disruptive technologies that address humanity’s essential needs while preserving the planet. As an Article 9 fund under the Sustainable Finance Disclosure Regulation (SFDR), Wind Capital is committed to a primary sustainable investment objective, with 50% of its carried interest tied to achieving impact KPIs.
This rigorous focus on impact required a comprehensive ESG and impact audit for their proposed investment in Infinite Orbits. The due diligence process involved identifying impact KPIs, establishing a measurement methodology, and aligning the investment with Wind Capital’s thesis, the EU Taxonomy, and the European Investment Fund (EIF) CA&ES criteria.
Infinite Orbits, a French space tech company, designs and develops small satellites for Geostationary Earth Orbit (GEO), approximately 40,000 km above Earth. Their flagship product, the Endurance solution, extends the operational life of large satellites by docking and maintaining their orbit. This innovation reduces the need for new satellite launches, which are associated with significant emissions and operational footprints.
However, quantifying the avoided emissions potential of Endurance presented challenges. The technology is nascent, and carbon data for space operations is limited. Wind Capital engaged Carbometrix to conduct a thorough assessment of the climate impact of Infinite Orbits’ solution.
To assess the avoided emissions potential, we focused on emissions avoided over one year of operation for telecom GEO satellites. The analysis relied on the European Space Agency’s (ESA) E-LCA guidelines, emphasizing the production and launch phases of space missions.
Key takeaways:
1. Satellite production emissions: Data on satellite production emissions was scarce, but a relevant lifecycle analysis was identified. As far as the existing and limited LCA showed, it appeared that the Assembly, Integration, and Testing (AIT) phase emerged as the most emissions-intensive stage, surpassing material-related emissions due to prolonged energy use in white rooms and extensive personnel involvement.
2. Rocket launch emissions: The footprint of rocket launches was analyzed for both SpaceX’s Falcon 9 and ESA’s Ariane 6. Emissions from rocket manufacturing, fuel production, and combustion were assessed. The lightweight, reusable Falcon 9 demonstrated superior performance, even with a reduced payload.
3. End-of-life considerations: The Endurance mission also contributes positively to space waste management by properly decommissioning satellites out of orbit. We excluded this end-of-life benefit from our analysis because the activity occurs outside the atmosphere and does not generate significant direct or indirect greenhouse gas emissions.
The analysis revealed that Infinite Orbits’ Endurance satellites could avoid approximately 26% of the yearly emissions associated with launching and replacing a full-sized satellite over its operational lifespan. This finding provided Wind Capital with a verifiable climate impact metric, reinforcing their investment thesis and commitment to sustainable innovation.
This collaboration underscores the importance of rigorous impact assessment in emerging industries like space tech. By leveraging expert analysis and innovative methodologies, investors can more confidently evaluate the climate benefits of disruptive technologies, even in sectors where traditional frameworks fall short.