EQT says Europe well-positioned to lead on energy tech – with over 50 ‘potential unicorns’

Europe is uniquely positioned to dominate the global energy technology sector over the next decade, according to a report from EQT, which argues the continent's strategic need for energy independence makes it more attractive than ever for infrastructure investment.

The Stockholm-based investment firm, which manages €270bn in assets, identified more than 50 potential unicorns in Europe's energy tech pipeline, adding to existing players such as German home energy system outfitter 1KOMMA5° and British renewable energy supplier Fuse Energy.

The report notes that Europe now has a "strategic and economic imperative to accelerate clean energy production" to grow the continent's energy supply and decouple European output from fossil fuel prices. European companies face energy costs today which are 2-3x that of their US peers, according to the report's authors, EQT partners Victor Englesson, Ted Persson, and Robert Sternberg.

The energy technology pipeline forms part of a broader strategic tech ecosystem of over 650 promising European scale-ups that EQT expects will grow to 1,900 by 2030.

Building on existing strengths

The report emphasises that the best opportunities in European tech will tap into the continent's existing industrial strengths, which differ from those of the US or China.

The report identifies several priority sectors where Europe is particularly well-positioned to lead, combining what EQT calls "right to win" sectors – those with transferable learnings from current European industry – and "can't lose" sectors that are geopolitically critical.

Those sectors are: AI, biotech, quantum, semiconductors, robotics, automation, space tech, dual-use defence tech, and energy.

In energy technology specifically, the report notes that Europe's particualr strength in fusion energy, carbon capture utilisation and storage (CCUS), advanced nuclear systems, and grid modernisation technologies.

Helping startups scale

EQT’s report calls for more “€100m+ cheques” to back scale-up companies, in conjunction with streamlined regulations and strategic procurement initiatives. It specifically points to the European Commission's proposed Scale-up Europe Fund as a model that can help close the funding gap by combining equity checks with venture capital, bank financing, state grants and offtake partners.

EQT's report also calls for sweeping regulatory changes to make Europe more attractive for scaled technology companies.

The firm advocates for an ambitious "28th regime" – a pan-European corporate entity that would let startups incorporate and scale across the bloc under a single rulebook.