Where to build your climate tech startup: Goldman's $75 trillion green tech roadmap

In the fast-evolving climate tech marketplace, knowing where to focus your entrepreneurial energy can be the difference between building the next breakthrough solution and getting lost in the exciting noise. A new Goldman Sachs Research report (GS Oct. 31^st 2024) has just mapped out a $75 trillion investment opportunity through 2070 - and for green entrepreneurs, it's essentially a treasure map of where capital will flow over the coming decades.

Follow the money: Key investment hotspots

Power networks ($7T)

This isn't just about building more solar panels. The real opportunity lies in solving the complex challenge of modernizing and expanding power grids to handle intermittent renewable energy. Think AI-powered grid management, advanced transmission technologies, and smart distribution systems.

Energy storage ($5.1T)

Battery technology is just the beginning. Goldman's research points to massive investment needs in both short and long-duration storage. For entrepreneurs, this suggests opportunities in everything from novel battery chemistries to thermal storage solutions and mechanical storage innovations.

EV infrastructure ($3.7T)

The charging challenge remains unsolved. While EV adoption is accelerating (especially in China), the infrastructure gap represents a massive opportunity. Think beyond basic charging stations - consider smart charging solutions, fleet management systems, and vehicle-to-grid technologies.

Industrial decarbonization ($9.3T)

This is perhaps the most overlooked opportunity in climate tech. While consumer-facing climate solutions get the headlines, the real heavy lifting needs to happen in industry. Goldman's research specifically highlights steel and cement production as key challenges begging for innovative solutions.

Green hydrogen ($1.3T)

While adoption has been slower than expected, the size of the opportunity remains massive. The key for entrepreneurs is focusing on specific use cases where hydrogen makes economic sense - particularly in heavy industry and long-distance transport.

Market signals: What's hot and what's not

Goldman's research reveals some important market dynamics. EV adoption and solar deployment are exceeding expectations, suggesting ripe opportunities in adjacent technologies and services that support these growing markets. Meanwhile, clean hydrogen and carbon capture are seeing slower uptake. For entrepreneurs, this could signal either a challenging market or an opportunity to solve the adoption barriers.

The nuclear renaissance

Here's a surprising insight: Goldman now expects a doubling of global nuclear capacity by 2050. This isn't just about traditional nuclear plants - it opens opportunities in small modular reactors, nuclear supply chain innovation, and safety technologies.

The multi-dimensional opportunity

The key insight for entrepreneurs is Goldman's emphasis on moving from "one-dimensional" solutions (focused solely on renewable power) to a "multi-dimensional ecosystem." This suggests opportunities in integration technologies that help different clean energy systems work together, platform solutions that can manage complex energy systems, software and AI tools for optimizing multi-source energy systems, and financial and market mechanisms to support this ecosystem.

The bottom line for entrepreneurs

Goldman's research suggests that success in climate tech requires thinking beyond simple renewable energy plays. The real opportunities lie in solving complex integration challenges, tackling hard-to-abate industrial emissions, building the infrastructure for a multi-technology future, and developing solutions that can scale globally.

As world leaders prepare for COP29 in Azerbaijan starting on November 11th, entrepreneurs who can align their innovations with these investment trends - particularly in complex areas like industrial decarbonization and energy systems integration - will be well-positioned to capture part of this $75 trillion opportunity.

Remember: the entrepreneur who want to win in this space won't just be building clean technology - they'll be building the foundational systems and solutions that enable the entire net-zero transition.