Commercial agreements are structured collaborations between two or more parties—often between corporations, startups, and governments— showing intent to purchase a product or service. They help Climate Tech companies secure funding, mitigate risks, and commercialize their solutions. To bring solutions to market, a strong push from both public and private sectors is essential to create an economically viable ecosystem for innovations to scale. Commercial agreements show market traction and demand, which helps de-risk solutions that require long-term development.

 

They’re an important decision factor for investors, but keeping track of agreements across geographies and sectors can be challenging. Deals are struck across industries and players such as corporates, startups, and governments, adding complexity. To streamline access to this information, Net Zero Insights provides a structured dataset consolidating commercial agreements in Climate Tech, to offer a comprehensive view of all  activity in one place.

 

 

Below, we explore some of the different types of commercial agreements that we track:

Strategic Partnerships

Strategic partnerships enable companies to collaborate on joint objectives such as technology development, market expansion, or co-developing sustainable solutions without forming a separate entity. These agreements are crucial for accelerating innovation, pooling expertise, and driving large-scale adoption of climate-friendly technologies.

 

Example Contracts: 

• Kaluza recently launched a pioneering Vehicle-to-Everything (V2X) trial in the UK in collaboration with Volkswagen Group UK, OVO Energy, and Indra. It is the first real-world use of bidirectional charging technology that allows EVs to power homes, serve as backup energy sources, and return surplus energy to the grid.
• Recover™ and Lands’ End partnered to create a sustainable denim collection using 20% recycled cotton fiber from textile waste. This collaboration significantly reduces environmental impact and supports Lands’ End’s goal of integrating recycled materials into its product lines.
• QubeZero partnered with AQUNE to build a sustainable tiny house using smart panels made from compressed polyurethane and recycled wind turbine blades. The project integrates eco-friendly technologies such as Orbital Shower’s water-saving system and a lightweight structure that minimizes environmental impact.

Joint Ventures 

Joint ventures (JVs) enable companies to co-develop projects or technologies by pooling resources, expertise, and financial commitments. These agreements are commonly used in capital-intensive Climate Tech projects such as renewable energy farms, green hydrogen production, and carbon capture and storage (CCS) infrastructure. By sharing risks and responsibilities, JV partners can accelerate project development while securing long-term access to critical technologies and production capacity. 

Example Contracts: 

• EarthOptics and Pattern Ag merged in August 2024 to work on digitizing soil health for advanced crop management and climate sustainability, providing a comprehensive “digital twin” of soil, including physical, chemical, and biological properties.
• Virya Energy, HyoffGreen, and Messer announced a joint venture to develop a 25MW renewable hydrogen plant in Zeebrugge, Belgium. The facility will supply green hydrogen to industrial and mobility sectors, reducing reliance on fossil fuels and accelerating the decarbonization of high-emission industries.

Memorandum of Understanding (MoU)

MoUs signal the intent of two or more parties to collaborate on future projects or initiatives. While they are not legally binding, they lay the foundation for formal agreements and provide clarity on shared goals. MoUs are often used in the early stages of Climate Tech collaborations, particularly in research, development, and infrastructure planning.

Example Contracts: 

• Windrose Technology and Mondo signed an MoU to accelerate the adoption of long-haul electric trucks in Australia. The partnership focuses on expanding charging infrastructure and deploying high-speed megawatt-level charging to support commercial fleet operators.
• 8 Rivers and Siemens Energy have entered an MoU to develop a zero-emission turbine that creates electricity (~270MWe) from captured carbon dioxide. This collaboration aims to advance sustainable power generation and reduce industrial emissions.
• Malta Inc. and BBVA signed an MoU in 2024 to advance long-duration energy storage in Iberia. The partnership integrates Malta’s energy storage with renewables to enhance grid stability, while BBVA provides financial expertise to scale the project.

Public-Private Partnership (PPP)

PPPs bridge the gap between governments and private sector players to fund, develop, and implement Climate Tech solutions. These agreements leverage public funding and private expertise to scale sustainable infrastructure such as renewable energy projects and large-scale carbon reduction programs. 

Example Contracts:

• The UK government allocated £25.3M in 2023 to deploy 117 zero-emission buses across England. Wrightbus will manufacture the buses, and First Bus will operate them in multiple regions, supporting the transition to cleaner public transport while creating high-skilled jobs.
• American Farmland Trust, Daily Harvest, and California Certified Organic Farmers (CCOF) launched an initiative to advance organic agriculture and expand regenerative farming in California’s San Joaquin Valley. The partnership increases access to organically grown produce to improve farm viability and support farmers.

Research and Development (R&D)

R&D collaborations drive Climate Tech innovation by facilitating joint efforts in developing new solutions. These agreements often involve co-funding research, sharing intellectual property, and leveraging specialized expertise to advance emerging technologies. By combining scientific research with market-driven applications, these agreements help accelerate the commercialization of next-generation climate solutions.

Example Contracts:

• Recover™ and Rieter partnered to drive textile circularity by integrating Recover’s advanced recycling technology with Rieter’s spinning expertise. The collaboration includes extensive trials on recycled raw materials and fiber blends to enhance quality and durability. Additionally, third-party verification by universities will ensure transparency in recycled fiber content, promoting industry-wide adoption of circular textile solutions.
• Syzygy Plasmonics and RTI International successfully demonstrated an all-electric CO₂-to-fuel production pathway at RTI’s facility in North Carolina. The project utilizes Syzygy’s light-driven reactors to convert CO₂ and methane into syngas, later refined into sustainable fuels like SAF, diesel, and gasoline. At commercial scale, a Syzygy plant could consume 200,000 tons of CO₂ annually—equivalent to removing 45,000 cars from the road—making it a significant step toward decarbonizing transportation.

Offtake Agreements

Offtake agreements secure long-term buyers for Climate Tech solutions before production begins. Buyers agree to purchase a fixed volume of a product—such as green hydrogen or sustainable aviation fuel—providing suppliers with revenue certainty. These agreements help developers secure financing by demonstrating market demand, ensuring project bankability, and stabilizing long-term operations.

Example Contracts:

• H&M Group and Syre entered into a $600 million, seven-year offtake agreement to support textile-to-textile recycling to reduce reliance on virgin polyester. The deal contributes to H&M’s goal of sourcing 100% recycled or sustainably sourced materials by 2030.
• Kraft Heinz and Repsol entered into a Virtual Power Purchase Agreement (vPPA) to source wind energy from Spain’s Delta II project. The agreement is expected to generate over 90GWh annually, powering approximately 90% of Kraft Heinz’s European manufacturing sites. This initiative aligns with Kraft Heinz’s sustainability goals, contributing to a 50% reduction in operational emissions by 2030 and its long-term net-zero target.

Supply Agreements

Supply agreements are contracts where the seller agrees to provide specific goods or services to the buyer on agreed terms over a defined period. These agreements reduce exposure to market fluctuations while helping companies scale production. These also provide businesses with long-term price stability which fosters predictability in operational costs and investment planning.

Example Contracts:

• Aperam BioEnergia and Patch signed a supply agreement to provide biochar carbon credits, supporting the voluntary carbon market. This partnership has already facilitated the sale of 15,000 metric tons of biochar carbon removal.
• IperionX and Aperam Recycling have joined hands to develop a circular titanium supply chain. IperionX will upcycle over 10 metric tons of titanium scrap, reducing emissions and enhancing sustainability in titanium production.

Manufacturing Partnership

Manufacturing partnerships are collaborative agreements between Climate Tech innovators and production partners to scale climate solutions. These partnerships enable companies in large-scale production and advanced manufacturing techniques. By streamlining production, these agreements help reduce costs, improve efficiency, and accelerate the deployment of sustainable technologies.

Example Contracts:

• Aleph Farms, BBGI, and Fermbox Bio partnered to establish Thailand’s first cultivated meat production plant. The collaboration focuses on scaling production, optimizing costs, and integrating cultivated meat into the region’s food supply chain.
• EKA Mobility and JK Tyre formed a manufacturing partnership to develop optimized tire solutions for electric commercial vehicles in India. This initiative supports the country’s growing EV ecosystem by improving  vehicle performance and infrastructure.

Licensing Agreement

Refers to a legally binding contract in which the licensor grants the licensee the right to use certain intellectual property (IP), technologies, or proprietary processes related to climate technologies. The agreement outlines the terms under which the licensee can utilize the IP, often for manufacturing, distribution, or implementation purposes.

Example Contracts:

• Bidgely and GridX partnered to improve energy cost accuracy and control for utilities. By integrating AI-powered energy usage insights with advanced pricing models, the collaboration enables smarter energy management for both utilities and consumers.
• Ørsted and SparkCognition signed a licensing agreement to deploy SparkCognition’s Renewable Suite across 5.5GW of Ørsted’s wind, solar, and storage assets in the US. The AI-powered software will accelerate  asset performance, boost energy production, lower maintenance costs -improving operational efficiency across Ørsted’s renewable energy portfolio.

Letter of Intent (LOI)

A document that expresses the preliminary intention of one or more parties to enter into a more formal agreement in the future is called a letter of intent. These Signal a serious intent to move forward with negotiations and may outline specific terms under discussion.

Example Contracts:

• Seven and HRS signed an LOI to deploy five hydrogen refueling stations in France between 2024 and 2025. Each station will have a capacity of one tonne/day, accelerating the rollout of hydrogen mobility infrastructure.
• Johnson Matthey and 8 Rivers signed an LOI to accelerate clean fuel projects with nearly 100% carbon capture. The partnership combines Johnson Matthey’s LCH technology with 8 Rivers’ 8RH2 process, enabling hydrogen production with 98% lower emissions than conventional methods. The initiative supports net-zero targets by deploying decarbonization projects in the US, UK, and Australasia, positioning clean hydrogen as a key solution in global energy transition efforts.

Service Agreement

A service agreement is a legally binding contract between two or more parties that defines the terms and conditions under which one party (the service provider) agrees to deliver specific services to the other party (the client or customer) in exchange for compensation.

Example Contract:

EF Solare Italia and GreenPowerMonitor have partnered to drive digital transformation in Italy’s photovoltaic industry. The collaboration focuses on maximizing solar energy efficiency, ensuring long-term sustainability, and optimizing plant performance through advanced digital tools.

Distribution Agreement

Distribution agreements authorize third parties to sell and distribute Climate Tech products or services within specific markets. These agreements help startups and emerging companies expand into new regions without the need for direct sales infrastructure.

Example Contracts:

• Connell, a leading distributor of specialty chemicals and ingredients and biodesign company Geltor signed a distribution agreement to supply bioengineered ingredients for beauty and health applications. Connell will leverage its extensive network to expand the market for Geltor’s sustainable, bio-based products.
• Green Biologics and Acme-Hardesty signed a distribution agreement to expand the commercialization of bio-based chemicals. The partnership focuses on renewable n-butanol and acetone for applications in food, cleaning products, and bio-lubricants.

Sustainability Partnerships

Partnerships focused on collaborative efforts to promote sustainable practices, decarbonization, renewable energy adoption, and related goals.

Explore the Latest Commercial Agreements in Climate Tech

Commercial agreements play a pivotal role in scaling Climate Tech, enabling early-stage deployment, securing long-term buyers, and de-risking investments. As the industry grows, these agreements are essential in bridging the gap between innovation and large-scale market adoption.

 

With Net Zero Insights, investors, businesses, and policymakers can stay ahead by tracking commercial agreements in real time—uncovering key trends, deals, and partnerships shaping the future of Climate Tech.

 

Explore our dataset today and discover how commercial agreements are accelerating the transition to a low-carbon economy.