Infrastructure financing gap hinders energy transition scaling

A structural gap in capital markets, known as the ‘Missing Middle’, is hindering the scaling of critical infrastructure technologies required for the energy transition. While venture capital effectively funds early-stage development and institutional investors support established assets with stable cash flows, projects requiring between $50 million and $300 million often struggle to secure necessary funding.

This financing gap prevents next-generation technologies—such as sustainable fuels, grid technologies, carbon capture, energy storage, and advanced materials—from moving beyond the pilot phase to large-scale commercial deployment. Despite sufficient institutional interest and technological availability, the complexity and capital intensity of these mid-sized projects create a barrier to strengthening industrial resilience and energy security.