Shaping the way towards a net-zero future: One year of Investing in Negative Emissions Technologies (NET)

Siemens Financial Services (SFS) has been partnering with forward-looking players, investing in companies that develop Negative Emissions Technologies (NET) for nearly a year now. Supported by the strength of Siemens' industrial businesses, SFS provides strategic solutions that address the many challenges faced by growth companies – capital, ecosystem access and development time. You can find additional information on NET in the following whitepaper.

Last year, SFS launched a new team focused on investing in this emerging industry and headed by Robert Schiele , who formerly led the SFS Equity’s Business Development team. Aiming to successfully invest in growth companies helping to shape the way towards a net-zero future, I spoke with Robert about his role and the many opportunities it provides for SFS one year after getting started.

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Steffen Grosse: Looking back on the last year - what do you like most about your role?

Robert Schiele: Reflecting on my first year leading the team of Negative Emissions Technologies (NET) investments, I must say it has been an exhilarating journey. NET enables the SFS Equity team to contribute to the long term – for Siemens, SFS and for the world. Providing growth capital with long term investment horizons allows technological innovations to mature and really scale. Furthermore, building a global team in one of the most dynamic investment spaces has certainly presented its challenges, but has been a great experience. However, I am genuinely excited about the achievements we've made together and the further prospects for scaling this emerging industry.

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Steffen Grosse: What opportunities are there from an investment perspective in this new sector?

Robert Schiele: As we are all aware, time is of the essence when it comes to removing carbon from the atmosphere to help supporting the 1.5C° target. The Negative Emissions Technology (NET) – or Carbon Technologies – space is currently one of the most dynamic investment areas that exist. Having matured significantly since the CleanTech 1.0 investment boom about 10-12 years ago, the industry segment is now transitioning into a multi-trillion-dollar space. It’s clear that this needs the right financing solutions to manage this challenge. ?In fact, I recently spoke on a panel at NASDAQ alongside the BMW Foundation, Carbon Business Council, and the World Bank to discuss NET during Climate Week NYC. Here the focus was exactly on “How to finance the decarbonization” while scaling these nascent technology companies. And this is exactly the space where Siemens makes a difference by combining financing with industrial support of a global corporate. ?

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Steffen Grosse: Why is NET relevant for SFS and Siemens?

Robert Schiele: Building an investment vehicle like NET is crucial for SFS as we strive to deploy our capital from innovation to market success, especially in new development fields that pave the way for the broader Siemens industrial business. In this way, Siemens obtains knowledge about this new industry segment that enables us to grow together with these market participants.? In the end, it is a win-win for both sides – Siemens lends support with technology, its global network, and experience to help this new market and its participants scale faster, while these companies help drive Siemens’ experience and market understanding in the carbon technologies space.

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Steffen Grosse: ?How has the team been successful in driving innovation and contributing to the fight against climate change?

?Robert Schiele: The NET Initiative provides a stimulating mix of asset classes and investment stages from early-stage deals to growth equity. This unique mix provides a challenge to the most experienced finance professionals as it truly requires thinking out of the box. Although working in that space it is thrilling to see the team working with those founders driving strategic conversations, connecting the right people from inside Siemens with our investments and now already seeing how fruitful these activities are, is showing that we are on the right path. ?We are approaching the market with a private-equity approach in the venture segment, where we are also supported from our colleagues from Next47 and their expertise.

Summarized, the ambition of NET is working on removing gigatons of carbon from the atmosphere over the next ten years – and working on a project with a mission like that makes the difference for a lot of people – including me.

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Steffen Grosse: What is your favorite part about working for SFS?

Robert Schiele: Having been with Siemens for more than a decade now, I don’t have a single favorite part, but I am able to draw from the different roles and projects I’ve done over the years to keep me curious and always striving for more. ?I’ve had continuous opportunities for personal growth, within a structured and highly capable environment, a global network of subject matter experts to nearly every topic and just great colleagues.

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Steffen Grosse: Looking into the future: What are the next steps?

Robert Schiele: The next steps for ongoing success of NET are solidifying our ability to act quickly on opportunities we see in the market, leveraging our high-performance team for the competitive investment space across Europe, Middle East and North America, and further positioning NET as a market enabler within the Climate and CarbonTech Space. This means we need to further become a brand within the ecosystem, while continuing our track record of investing in deals like 44.01 – a Carbon Mineralization startup from Oman that won the EarthShot prize end of 2022 – and neustark , that is a leader in CO2 removal solutions for recycled concrete.