Securing the right financing to bring solutions to market is critical to scale Climate Tech. Yet, many breakthrough technologies stall before commercialization, unable to attract investment without clear signals of market demand. This is where offtake agreements come in.
By guaranteeing buyers before production begins, these contracts show early market demand, unlock funding, and help emerging Climate Tech scale faster. Offtake agreements are quickly becoming a key component and understanding their impact requires a clear view of how they work.
An offtake agreement is a contract between a producer and a buyer that guarantees the purchase of a specific amount of a product before production begins. Offtake agreements in Climate Tech play a crucial role in sectors where large-scale infrastructure and upfront investment are required, such as sustainable aviation fuels, carbon removal, green hydrogen, and circular materials to name a few.
Why do Offtake Agreements matter for Climate Tech?
Offtake agreements are crucial in Climate Tech since they:
- Show early market demand, helping suppliers secure financing and scale production
- Provide revenue certainty, making projects more attractive to investors and banks
- Reduce risk by stabilizing pricing and ensuring long-term financial stability
- Determine whether a project remains a pilot or successfully scales to commercial deployment
Recent Offtake Agreements in Climate Tech
Offtake agreements are already shaping major Climate Tech investments. Here are some recent examples:
- 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.
- Mura Technology and Neste signed an offtake agreement to scale advanced plastic recycling. Neste will convert the output from Mura’s first commercial-scale Hydro-PRT plant into feedstock for new plastic production. The partnership aims to replace virgin fossil resources with recycled materials, accelerating the shift toward a circular plastic economy.
These agreements demonstrate how corporations and governments are driving demand for Climate Tech solutions, helping startups and project developers scale faster with reduced financial risk.
Tracking Offtake Agreements with Net Zero Insights
Despite their growing importance, data on offtake agreement in Climate Tech remains scattered across reports, press releases, and niche sources. Tracking these deals requires extensive research, making it both time-consuming and challenging to assess real market demand.
Net Zero Insights has addressed this challenge with a structured, real-time offtake agreements dataset, providing intelligence on:
- What companies are signing offtake agreements and the technologies involved
- Investment and financing trends in key Climate Tech sectors
- The fastest-growing markets based on commercial activity
This dataset is part of Net Zero Insights’ broader commercial agreements intelligence, which tracks memorandums of understanding (MoUs), strategic partnerships, joint ventures, and R&D agreements. With this new feature, investors, businesses, and policymakers can now follow the full lifecycle of Climate Tech adoption – from early-stage funding to large-scale deployment.
Why This Data Matters for Investors and Businesses
These datasets allows stakeholders to:
- Identify market leaders by tracking where corporations and investors are placing long-term bets
- Assess risk and opportunity with insights into where commercial traction is happening
- Discover high-growth startups that are securing major offtake deals, making them prime candidates for investment or strategic partnerships.
Explore the Latest Offtake Agreements in Climate Tech
Offtake agreements are fueling Climate Tech innovation by accelerating commercialisation and unlocking new investment opportunities. With Net Zero Insights’ structured dataset, investors, businesses, and policymakers can track the companies, deals, and trends shaping the industry.
Explore the dataset today to see how this intelligence can support your investment and business strategy.
