China Agrees to Curtail Domestic Wind Power Subsidies | China Digital Times (CDT)

The action is significant because of intense competition between U.S. and Chinese manufacturers of clean energy technology. Whether it will lead to other such actions involving questionable Chinese trade practices remains unclear.

“This issue has been a huge one,” says Barry Bosworth, an economics and trade expert at the non-partisan Brookings Institution. “It’s symptomatic of a principle that would apply across a wide range of trade.”

The World Trade Organization prohibits government programs that give preferences to companies using local products, such as China’s program of “indigenous innovation.” Thewind power grants ranged from $6 million to $22 million, Kirk’s office says. “This outcome helps ensure fairness for American clean technology companies and workers,” Kirk says.

The case marks the third successful challenge against Chinese government subsidiesbrought by the U.S. and other countries. China agreed to eliminate other subsidies following complaints filed by the U.S., Mexico and Guatemala in 2007 and 2008.

Leaders of Top European Venture Capital Funds and Corporations to Visit Russia

(Nanowerk News) The European Venture Capital Industry and Global Innovation Partnerships (GIP) today announce a trade delegation of 25 leading European venture capital firms and top executives of major international technology corporations to Russia. They will participate in the Second International Trade Delegation on Global Innovation Partnerships in Moscow and Kazan, April 18-22.

The initiative will connect European and Russian investors and innovative businesses to discuss cooperation in the emerging high technology areas, such as cleantech, biotech, aviation and space-related technologies.

"The mutual advantages of closer collaboration between European and Russian innovation and hi-tech know-how are immense. We are delighted to have the opportunity to connect technology innovators, buyers, suppliers and venture capital backers, between our neighboring regions," said Georges Noel, EVCA's VC Director.

In Russia, the delegates will meet government officials, leaders of Russian business, hi-tech entrepreneurs, institutional investors and venture capital backers. After meeting in Moscow, the European VCs and business executives will visit Kazan, Tatarstan, a Russian fast-growing region.

The visit of the trade delegation is organized by European Private Equity and Venture Capital Association (EVCA) and GIP in cooperation with Russian Venture Capital Association (RVCA), and Investment and Venture Fund of the Republic of Tatarstan. Global Innovation Partnerships is a joint venture of the RUSNANO, Russian Venture Company, Skolkovo Foundation, and the Global Technology Symposium.

"The Trade Delegation follows the tradition of inviting VCs from the key international technology markets to Russia. After VC trips from Silicon Valley in 2010 RUSNANO and a number of Russian industrial companies and private investors established direct efficient business contacts with top-tier Californian VCs We appreciate that the volume of joint projects in the areas of clean energy, industrial biotech, and medicine currently considered by RUSNANO as the result of this cooperation, exceeds one billion dollars," said Mikhail Chuchkevich, executive advisor to chairman of the Executive Board of RUSNANO.

"Russia is becoming a major player in world VC markets. Russian companies are becoming strategic investors in large international innovative projects. This visit continues the dialogue with European VC investors that began a few years ago. This is a great opportunity for our European partners to see the Russian innovation economy in greater detail. The European experience can give a new impetus to Russian innovative projects, and I'm sure that meeting of Russian and western VCs, innovative entrepreneurs, researchers and development institutions on a common playing-field will catalyze this process," said Evgeny Kuznetsov, Director of Department of Development and Communications at Russian Venture Company.

"We support all investors in high-technology, both local and international. If they are focused on global success, then by nature they are international. We look forward to meeting with our business partners and strategic European partners. We will demonstrate to them our most promising startups founded by successful entrepreneurs," said Alexey Sitnikov, Director of International Development Department of Skolkovo Foundation.

The Top 10 Clean-Tech Companies - WSJ.com

The Top 10 Clean-Tech Companies - WSJ.com

Venture Firms Hope High Oil Prices Will Spur Cleantech Interest

Venture Firms Hope High Oil Prices Will Spur Cleantech Interest

Another Clean-Tech IPO Imminent, Khosla Says - Venture Capital Dispatch - WSJ

Another Clean-Tech IPO Imminent, Khosla Says - Venture Capital Dispatch - WSJ

Global Freeze Drying Equipment Industry - market research report on Reportlinker

Global Freeze Drying Equipment Industry - market research report on Reportlinker

Michigan in the News—Stephen M. Ross School of Business

Ross professor sees new dynamics in clean technology development and financing, including 'co-opetition' between the U.S. and China.

ANN ARBOR, Mich.—A fragile economic recovery and the failure of a cap-and-trade bill in Congress would seem to create a haze over the future of the clean technology industry, but Ross professor Peter Adriaens sees some clear patterns emerging.

The most prominent trend is a cooperation/competition dynamic between the United States and China. The regulatory business environment and the economies in both countries favor clean technology innovation in the U.S., while China has the economies of scale for deployment. This creates a situation where manufacturing innovations and new markets that result from scaling deliver new products that can be re-imported. General Electric refers to this as reverse innovation. While most of the headlines focus on trade disputes between the U.S. and China, Adriaens says he finds this evolving trend more relevant.

Adriaens defines clean technology as a process or business model that targets better use of natural resources, accelerates efficiency, or reduces emissions, such as a zero-emissions car.

"The U.S. is never going to be the kind of economy with top-down mandates to deploy this much wind energy by a certain year, this much solar, and this many electric vehicles," says Adriaens, professor of entrepreneurship and strategy. "We are, by and large, a bottom-up, market-driven economy. China has five-year plans. Their government has decided they're going to fund infrastructure and deploy these technologies."

That's why Adriaens says he sees "co-opetition" between the two countries.

"The U.S. develops and validates with pilots, but the big deployment where you can learn about the inefficiencies and find economies of scale takes place in China," he says. "I know it frustrates some people here in the U.S., but from the entrepreneur's perspective, it's very positive because we can move around as markets and opportunities warrant. We are the early-stage investors and China is, to a large extent, the deployer."

But China isn't standing still. It wants to compete in the innovation space, but that transition will take time, Adriaens says.

"They want to take our place as the innovation economy but they don't have the expertise yet," he says. "You can't just decide you're going to innovate. Here, we accept the fact that you learn by being willing to fail. We're very tolerant of that because it's necessary, but China isn't there yet. In the meantime, they're going to put the infrastructure in place to enable more home-grown innovation, such as technology parks, aggressive intellectual property policies, and government-backed venture capital."

Strategic Shift

Sources that are funding innovation and the specific kinds of companies receiving those funds are other changes afoot in the clean technology arena. Until about two years ago, venture capital and private equity firms were the big clean technology investors. But as liquidity dried up and home-run exits were few and far between, these players backed off in a big way. Taking their place are corporations willing to invest in these new ventures.

The good news for them, Adriaens says, is they're able to do so relatively cheaply, since many of the deals were considered undervalued or distressed assets. And the nature of the investments and acquisitions changed. With no cap-and-trade legislation expected soon in the U.S., big infrastructure deals for solar and wind energy have given way to more software, IT, and energy management system deals.

Those still allow a good exit, and they make sense whether there is cap-and-trade or not, Adriaens says.

"What happened is this kind of investment went from being a fringe activity to being a strategic activity for corporate VC or direct investment," he says. "Of course, the big challenge with any and all of these clean tech deals is to figure out the right business model so you can get returns for your investors."

Who's Plugged In?

Electric vehicles, especially the Chevrolet Volt and Nissan Leaf, are generating plenty of buzz. But it will take a while for them to catch on, especially as alternatives like turbo-charged, direct-injection engines remain more affordable.

Adriaens notes that hybrid vehicles have been available for about 10 or 12 years and still only represent about two percent of the U.S. market. The plug-in or electric vehicle slice of that will be a fraction of that for some time, he says.

A drill down into the likely buyers of plug-in, electric vehicles shows why. The Volt and Leaf are targeted at people who drive about 40 miles a day or less. But Adriaens says it's not necessarily about the 40 miles; it's how you drive it. A driver who does mostly city driving — dropping the kids off at school, going grocery shopping — uses much less of the battery than someone who does a highway commute to work.

"The around-town driver needs a battery that's only half the size of the $10,000 to $15,000 battery," he says. "And those who only drive around town have peer- to-peer models emerging for them. So suddenly the 40 miles per day segment is going to be smaller in reality."

Biofuel Firms Diversify

One alternative fuel idea that's been building is using the lipids, or fat, produced by algae as fuel. Algae have been engineered to increase lipid production and they are relatively easy to grow. Extracting those fats into usable fuel is the tricky part. The question Adriaens and other researchers had was how these firms justified their infrastructure costs, especially since the price of oil was relatively low until recently. That has muted demand for alternative fuels.

But then researchers noticed that some firms changed their names, dropping the word "biofuel." It turns out these companies are now focusing on other, non-fuel uses for the fat produced by algae. It can be found in plastics, cosmetics, dietary supplements, and fertilizer.

"All of these markets are less price-sensitive," he says. "We were wondering how these firms got the money out that they put in by just offering a fuel product. They've figured out that biofuel alone won't work in the U.S."

—Terry Kosdrosky

7 Book Reviews in Cleantech and Energy

7 Book Reviews in Cleantech and EnergyIf there was one key to turning around the damaging business and environmental practices of modern culture, what would it be? ‘Natural Capitalism,’ the seminal 1999 call for a broader focus on sustainability, presents an overwhelming case that the key is resource efficiency and effectiveness. Just as conventional capitalism is all about using financial capital effectively, so ‘natural capitalism’ is about expanding that bottom line focus to include the natural resources and ecosystem services underlying the ability of business and society to function in the first place. The authors argue that with appropriate shifts in business perspective and government policy, our economy could be something like 90% more efficient in its use of irreplaceable natural resources, thereby mitigating ecosystem impacts, enabling global development, and staving off climate change.

Throughout history, until very recently, man has been a small actor in an overwhelmingly large world. Most of the book explores how this has given rise to our ingrained cultural patterns of wasteful resource utilization, limited focus on capital efficiency, and drive for production volumes, while assuming unbounded access to subsidized natural resources and ‘free’ ecosystem services. Shifting perspective to include natural capital on the business balance sheet, and to expand lean manufacturing principles beyond the factory walls is what’s required to address the ecology/climate change nexus. This change in perspective is embodied in a range of sustainable business concepts, including the ‘triple bottom line’ (profits, people, and planet), and the ‘cradle-to-cradle’ model for recycling products and integrating industries to eliminate ‘waste’.

The basic principles of natural capitalism put forward can be summarized as: (1) focus on natural resource efficiency (2) using closed loop, biomemetic, nontoxic processes (3) to deliver more appropriate end-user services (4) while investing in restoring, sustaining, and expanding natural capital. Following these principles leads not to constraints on business or lowered expectations, but an enormous range of new business opportunities to profit from improved efficiencies and environmentally beneficial activities. One of the best expressions of this perspective comes in the discussion on climate change, providing a refreshing contrast to the recent spate of bad news on this front: “Together, the [available business] opportunities can turn climate change into an unnecessary artifact of [our] uneconomically wasteful use of resources.”

While the authors deliver an awesome, deeply researched articulation of their vision, showing with many examples why it’s important and how it can work within our current capitalistic economies, the book has two key flaws. First, it falls prey to the syndrome first articulated by Paul Saffo, founder of the Institute for the Future, of confusing a clear vision of the future with a short path. This combines with an excessive reliance on sheer volume of examples to make their points, too many of them poorly explained, bristling with non-comparable numbers, and substituting hand-waving for real outcomes. Deeper exploration of fewer examples might have illustrated the principles better, and have been much easier to read. Also, 11 years after the original publication, many of the examples are seen to be hastily chosen and and used to support glib and overreaching conclusions that make the authors seem naive. Examples include the advent hydrogen powered cars (“hypercars”), the potential for shutting down Ruhr Valley coal production in favor of direct social payments to coal workers, or the imminent triumph of the Kyoto Protocols for international carbon trading. And, while much attention is paid to articulating the perverse incentives, misguided taxes and subsidies, and split responsibilities that impede more efficient system approaches, there’s short shrift given to new technology adoption rates, the scale of existing infrastructure investments, or the political complexities of changing incentives and subsidies.

However, if you are interested in understanding the genesis and foundations of the modern sustainability movement, this is a fundamental text. Despite its flaws, after 11 years the fundamental argument and principles hold up well and are still inspiring.

Cleantech's dirty fight: how the US and China are restricting green trade | chinadialogue

Cleantech's dirty fight: how the US and China are restricting green trade | chinadialogueThe United States and China have cooperated with each other on clean technology for years. The two powers jointly conduct low-carbon research and development, trade climate-friendly products and seal commercial deals to establish joint-venture companies. Amid the political clouds hovering over the bilateral relationship, the sector should offer rays of sunlight. And yet both countries have created unsound trade, investment and procurement policies that will ultimately restrict the potential to achieve greater gains for all.

The Chinese government suspects that the United States will not share state-of-the-art clean technologies so as to maintain its primacy and absolute advantage over China. Meanwhile, the US fears China is “beating” it in the clean revolution, and will profit handsomely.

Despite a steep trade imbalance with China, the United States imposes significant restrictions on exports of high technology. Since the presidency of George W Bush, a focus on national security combined with protectionism has led the government to tighten its export control policy toward China for fear that high-tech products might reach military end users. Recent statistics show that China's high-tech imports have grown rapidly in the past decade, but those imported from the United States declined to 7.5% of imported products in 2009, down from 18.3% in 2001.

Worse, in future more cleantech products in the areas of wind and solar power, alternative fuel vehicles, water purification and energy efficiency will likely require a new export licence designed to protect American national security and economic interests, the US Department of Commerce reported in August 2010. The report places the cost of US export controls on lost sales to China at approximately US$700 million (4.7 billion yuan) per year.

Concerns over intellectual property rights (IPR) are also harming US-China cooperation on clean technology. In the past five years, the Chinese government has demonstrated an increased commitment to protecting IPRs of foreign companies operating in China. In the cleantech sector, it has engaged the American Chamber of Commerce to provide recommendations on how to improve IPR laws. Last year, China’s State Intellectual Property Office and the US Patent and Trade Office began greater cooperative efforts on patent protection through possible IP-related criminal prosecutions. And in May 2010, Chinese commerce minister Chen Deming emphasised in an economic forum in Austria that “A nation will not be innovative without the protection of IPR…China is constantly improving its IPR protection level.”

Nevertheless, some US interest groups worry deeply about China’s failure to crack down on IPR infringements. More than that, the protectionist nature of America’s IPR legislation, which includes the Foreign Relations Authorization Act, the Amendment to the American Clean Energy and Security Act (ACES Act) 1978 and the Foreign Appropriations Act approved by Congress in 2009, compel many US companies to avoid sharing advanced clean technologies with China.

Moreover, distribution of China’s overseas direct investment (ODI) in the United States has been smaller than that in other regions, such as western Europe and Oceania. Barriers to Chinese investments in clean projects in the United States include visa processing, striking differences between US and Chinese regulation and zoning laws. Although some US state-level and/or city-level governments, such as the Indiana and Tennessee local authorities, embrace Chinese investment in clean projects including electric vehicles, energy efficiency and renewable power, political or national security concerns continue to impact Chinese ventures.

According to Li Ruogu, the chairman of China’s Export-Import Bank, the failure of Chinese state-owned enterprises to buy US companies in the past five years heralds a gloomy future for China’s clean investment. From America’s perspective, state-owned firms are inextricably linked to the Chinese government, and therefore could pose a threat to US national security. As a result, many lawmakers and officials in Washington are keen to restrict investment deals by Chinese companies, especially in energy, as China National Offshore Oil Corporation’s 2005 failure to buy US-owned Unocal Corporation indicated.

China also imposes a variety of strict regulations that obstruct cleantech trade between the two countries. US companies struggle to enter China’s clean technology market because their products are often more expensive than those of China or other foreign competitors, but also because of lax contract enforcement and payment insecurity. The most significant barriers are the new Enterprise Income Tax Law, the Catalogue for the Guidance of Foreign Investment Industries and foreign ownership regulations.

Under the new EIT Law, from January 1, 2008, the income tax rate for foreign investment enterprises (FIEs) increased from 15% to 25% and many tax benefits and preferential treatment previously available to FIEs were either restricted or abolished. Some clean-technology companies may enjoy a reduced rate at 15%, but they must obtain the “high/new technology enterprises” qualification. A qualifying clean-technology company must own a core proprietary intellectual property, which many foreign investors are reluctant to hold in China. In this regard, the Chinese government is using taxation to discourage foreign high technology companies.

The Catalogue, which was revised in 2007, restricts foreign direct investment (FDI) in certain cleantech sectors. Although FDI in high-tech industries is officially encouraged in China, all investment projects need approval by different levels of governments. FDI in wind power, solar energy, pollution control, waste disposal, recycling and environmental-protection equipment may be afforded relatively simple and quick approval by local or provincial authorities, whereas FDI in biofuels requires provincial or even central government approvals. That is the major reason why few US algae-based biofuel investors can access the Chinese market, despite the technology being unique and promising. To date, available information indicates that Duke Energy and Boeing are the only American companies that have invested with China in this field.

There are also restrictions on foreign ownership that have impacted US investment in China and hampered bilateral cooperation. FDI in photovoltaic, geothermal, tidal, waste, biogas and equipment for wind-power generation of over 1.5 megawatts or related manufacturing may only be undertaken as a Sino-US joint venture. Other sectors like water, environment and public facility management require that the Chinese central government hold the majority of the shares in a joint venture.

This prohibition usually bewilders newcomers to China. In theory, foreign investors may overcome some of these obstacles eventually, but it is very time-consuming. William Chandler, president of US-owned Transition Energy, has worked in China for 15 years, and yet it is not easy for him to invest in renewable energy and get priority returns. His company did not establish and was not able to start collecting ownership interest in its cooperative joint venture operation until 2007. Chandler and his partner Holly Grin admit in their publication Financing Energy Efficiency in China, “The unintended consequences of regulatory policies – red tape – obstruct clean-energy development in China.” In the process of investment in clean technologies in China, US investors must also spend much energy building strong relations with the Chinese government, understanding local business culture and identifying good partners.

Furthermore, in order to encourage indigenous innovation in advanced technologies, the Chinese government announced the National Indigenous Innovation Products Accreditation Program in late 2009. It explicitly requires all Chinese government agencies to purchase domestic goods and services. Governments at the central and local level have also introduced financing and tax incentives to encourage the development and use of “domestically innovated” products by Chinese companies. These laws could potentially foreclose government procurement from US companies. Although the US has a similar programme, dubbed the “Buy America Act”, the US government allows for many exceptions and is party to the World Trade Organization Government Procurement Agreement. In July 2010, the US business community, represented by the US-China Business Council, ranked indigenous innovation in China as its number one policy concern, above even the currency issue.

Fair clean-energy trade must be a top priority as it offers economic, employment and carbon-reduction benefits for China, the United States and the world. The China Chamber of Commerce pointed out in a letter to the US Trade Representative sent in November 2010 that “50% of China's materials for making solar cells are imported, of which 50% are from the US.” Additionally, most studies show that the majority of jobs created by clean technologies are captured locally, in installation and maintenance, rather than in sales and manufacturing – and so the country that encourages the most installation has the most to win.

For US-based firms, participation in China in the short term offers local presence in a large, rapidly growing market, while Chinese firms gain technical expertise, strengthen domestic industry and acquire a presence in the US market.


Yuhan Zhang is a visiting research fellow at the Carnegie Endowment for International Peace in Washington, DC.

Homepage image from Greenpeace


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Cleantech sector grows in New York - Sustainable Business Oregon

Cleantech sector grows in New York - Sustainable Business OregonThroughout his career, Eric Burnett has created a successful spinoff of General Electric Power Systems and built and sold a company that developed lending software for banks.

His latest venture, Auterra Inc. in Malta, has invented a low-cost and low-emission-generating chemical process to purify oil. This process, he believes, could lead to the first major advancement in refining in 30 years.

Burnett, 51, who has raised $10 million in venture funding for Auterra, has attracted the attention of petroleum companies from Canada to Russia that want to know if his technology can be used commercially.

Burnett is part of a growing number of local entrepreneurs and businesses tapping into the burgeoning clean tech and clean energy sector. The clean tech boom locally reflects the global trend as more companies, venture capitalists and foreign governments invest an increasing amount of money and time into research and product development. It’s all being driven by businesses and consumers and their ever-growing thirst for energy.

Solar power, wind turbines, smart grid technology, better batteries, energy storage and any process that leads to energy efficiency are all hot.

In the Capital Region alone, companies large and small have invested or announced plans to invest more than $300 million in local clean tech products, research and services over the past 18 months.

General Electric is linked to a large portion of that. The company spent $45 million to locate its Renewable Energy Global Headquarters in Schenectady and it’s preparing to invest another $100 million into a new battery manufacturing plant, creating 350 jobs.

StreetInsider.com - Duke Energy (DUK), Progress Energy (PGN) $13.7 Deal to Create Largest US Energy Company

StreetInsider.com - Duke Energy (DUK), Progress Energy (PGN) $13.7 Deal to Create Largest US Energy CompanyDuke Energy (NYSE: DUK) announced Monday that it has agreed to buy Progress Energy (NYSE: PGN) for $13.7 billion in stock, which will create the largest power company in the U.S.

The two North Carolina companies would create a business that holds about 7.1 million electric customers in the Southeast and Midwest, while also holding a sizable nuclear energy business.

Under the terms of the agreement, shareholders of Progress Energy will receive 2.6125 shares of Duke common stock in exchange for each share of Progress common stock.

This would value Progress shares at $46.48 per share based on the closing price of Duke shares on Friday, a 7.1 percent premium over the Friday closing price of Progress stock.

Duke will also assume roughly $12.2 billion in Progress net debt.

Duke chairman, president and CEO Jim Rogers will become executive chairman of the new company, while Progress CEO Bill Johnson will become President and top executive.

"Our industry is entering a building phase where we must invest in an array of new technologies to reduce our environmental footprints and become more efficient," said Rogers. "By merging our companies, we can do that more economically for our customers, improve shareholder value and continue to grow.Combining Duke Energy and Progress Energy creates a utility with greater financial strength and enhanced ability to meet our challenges head-on."

The companies expect the deal to close by the end of the year. Duke said it is expected to boost earnings within a year following the close.

Shares of Duke are down 19 cents to $17.60 in premarket trade on Monday, while shares of Progress are down 72 cents to $44.00.

Record Number of Clean Technology Venture Investment Deals in 2010, as Total Amount Invested Rises 28 Percent to $7.8 Billion | Benzinga.com

Record Number of Clean Technology Venture Investment Deals in 2010, as Total Amount Invested Rises 28 Percent to $7.8 Billion | Benzinga.comCleantech Group™, providers of leading global market research, events and advisory services for the cleantech industry, today released preliminary 4Q 2010 results for clean technology venture investments in North America, Europe, China and India, totaling $7.8 billion across 715 deals.
Cleantech venture investment was up by 28 percent compared to 2009 ($6.1 billion) making 2010 the second highest year for investment after 2008 ($8.8 billion). The number of deals was 715, a new annual record, ahead of the previous high (624 deals) recorded in 2009.
Venture investment in 4Q10 totaled $1.61 billion, down by 17 percent from 3Q10 ($1.95 billion) and the second consecutive quarterly decline. There were 180 deals, the same number as in 3Q10.
"The strong increase in clean technology venture activity in 2010 was also paralleled by record activity in the IPO and M&A markets,” said Sheeraz Haji, CEO of Cleantech Group. "We believe continued growth in Asia and the ongoing push for resource efficiency will make 2011 a record year for cleantech innovation financing.”
VENTURE INVESTMENT BY TECHNOLOGY SECTOR
The top clean technology sector for venture investment in 2010 was Solar, which accounted for 24% ($1.83 billion) of the total, followed by Transportation (17%, $1.35 billion) and Energy Efficiency (14%, $1.05 billion). Measured by number of deals Energy Efficiency was the most popular sector (21% share, 151 deals) followed by Solar (16% share, 117 deals).
VENTURE INVESTMENT BY WORLD REGION
North America accounted for 68 percent of the total invested, while Europe and Israel accounted for 21 percent and Asia for 10 percent. Measured by number of deals North America accounted for 55 percent of the total, while Europe and Israel accounted for 35 percent and Asia for 10 percent. During the second half of the year there was a noticeable increase in the share of investment taken by the Asia region, which accounted for 17% of all venture investment in 2H 2010, with Europe on 23% and North America on 59%.
NORTH AMERICA: North American companies raised $5.28 billion, up 45 percent from 2009 ($3.65 billion). The total of 391 rounds was a new record, up from 317 in 2009. The largest deals were for: California-based electric vehicle infrastructure company Better Place which raised $350 million in a Series B round led by HSBC and also including Morgan Stanley Investment Management, Lazard Asset Management, Israel Corp., VantagePoint Venture Partners, Ofer Hi-Tech Holdings, Morgan Stanley Principal Investments, and Maniv Energy Capital; Solyndra, the California-based thin film company, raised $175 million from existing investors instead of following through with its planned IPO; and BrightSource Energy, the California-based developer of utility-scale solar thermal power plants, raised $150 million in Series D funding from new investors Alstom and the California State Teachers Retirement System (CalSTRS) as well as existing investors. California led the way in 2010 with investment of $3.0 billion (58% share), followed by Massachusetts ($398 million, 8%) and Texas ($254 million, 5%).
EUROPE/ISRAEL: European and Israeli companies raised $1.62 billion, down 7 percent from 2009 ($1.75 billion). There were 247 deals, up from 230 in 2009. The three largest deals were for: Landis+Gyr; a Swiss smart metering company, which raised $165 million; e-Gen, which was founded in 2009 as a wind project developer to take advantage of the new UK feed-in tariff, which raised $79 million; and FleetMatics, a UK-based fleet management and tracking company, which raised $68 million. The UK was top of the country league table, with $450 million in 88 deals, followed by France, with $297 million in 52 deals and Switzerland with $165 million in just one deal.
ASIA: Asian companies raised $771 million in 69 disclosed rounds. The amount invested was 18% higher than in 2009, although the number of deals was about the same (72 deals in 2009). The three largest deals were for: Nobao Renewable Energy Holdings, a Shanghai-based developer of ground source heat pump technology, which raised $100 million from Silver Lake; eHi Car Rental, a Shanghai-based car sharing company, which raised $70 million in a deal led by Goldman Sachs Group and also including CDH Ventures, Ignition Partners, and Qiming Venture Partners; and Korean electric car company CT&T, which raised $60 million from ELKF Investment Fund.
The leading country globally for venture investment was the U.S. ($4.97 billion in 360 companies), followed by China ($479 million in 46 companies) and the UK ($450 million in 88 companies).
GLOBAL M&As AND IPOs
It was a record year for cleantech IPOs globally, with 93 companies raising a combined $16.3 billion during 2010. The largest IPO was for Enel Green Power, the renewable energy unit of Italian utility Enel, which raised $3.6 billion on the Madrid Stock Exchange. The vast majority of global activity however was in China, which accounted for 68% (63) of the IPOs completed and 61% ($10.0 billion) of the total amount raised.
The focus of the IPO activity in China was the small to medium sized board on the Shenzhen Stock Exchange, known as ChiNext. Cleantech Group recently released a report profiling the remarkable rise of ChiNext since it its launch in October 2009 (see ChiNext One Year On: Now the most active exchange for cleantech IPOs globally).
The final quarter of 2010 was the most active quarter ever for cleantech IPOs, with 30 companies raising a combined $8.3 billion. The two largest IPOs of the year took place in 4Q10. These were Italy's Enel Green Power (see above) and China Goldwind, the Xinjiang-based wind turbine manufacturer, which raised $917 million on the Shenzhen Stock Exchange.
Clean technology M&A totaled an estimated 716 transactions in 2010, of which totals were disclosed for 203 transactions totaling $36.0 billion. The total number of transactions was up 37% compared to 2009, while the total invested was up by 9%. Switzerland-based power and automation technology company ABB was involved in two of the three largest acquisitions during the year. In 2Q10 it acquired U.S.-based software maker Ventyx for more than $1 billion to provide it with broader access to the utility enterprise management market and in 4Q10 it acquired Baldor Electric Company, a U.S.-based manufacturer of high-efficiency industrial motors, in a cash transaction valued at approximately $4.2 billion.
The number of joint ventures (which are also included in the M&A totals) increased strongly, reaching 161 deals worth a combined $14.3 billion, up from 40 deals in 2009 worth $4.0 billion. The largest deal was between Shell Oil Company and Brazilian sugar and ethanol producer Cosan, who set up a $12 billion Brazilian biofuels joint venture.
TOP GLOBAL VC INVESTORS
2010 Most Active Cleantech Venture Investors (Preliminary Data)

Venture Capital Firm # of rounds

Chrysalix Energy Venture 16

Draper Fisher Jurvetson 16

Carbon Trust Investment Partners 12

Element Partners 12

Kleiner Perkins Caufield & Byers 12
Source: Cleantech Group (cleantech.com)
About Cleantech Group, LLC


Read more: http://www.benzinga.com/press-releases/11/01/p762165/record-number-of-clean-technology-venture-investment-deals-in-2010-as-t#ixzz1ANjstXKI

Angola Press - Environment - Clean technology project in four provinces

Angola Press - Environment - Clean technology project in four provincesLuanda - The Ministry of Environment, through its Project of Assistance to the Sector (PASA) is to start this year, in the provinces of Huambo, Cabinda, Namibe and Kuando-Kubango, the pilot project on the use of environmentally clean technologies, as part of the climate changes adjustment efforts.

PASA's co-ordinator, Oscar Vieira Lopes, said all is in place for the start of the project jointly funded by the African Development Bank and Angolan Government, following feasibility studies conducted by technicians of the sector in the said provinces.

The official told Angop that in the mentioned that several activities will be conducted in the four provinces, taking into account the characteristics of each region.

Launched in 2010, the projects will show and promote synergies and good practices of management of land, conservation of bio-diversity and adjustment to climate changes, The project will last five years and is estimated at Usd 19.5 million.

India speeds up solar energy development - UPI.com

India speeds up solar energy development - UPI.comNEW DELHI, Jan. 3 (UPI) -- Given India's dynamic economy and rising energy needs, the government is promoting solar power.

Within the next two years, Indian power plants will bring an additional 1,100 megawatts online, of which 184 megawatts will be supplied by solar power and photovoltaic plants already under construction with an additional 620 megawatts of construction on the drawing board, India's Ministry of New and Renewable Energy reported Monday.

Indian Minister of Renewable Energy Deepak Gupta, in announcing the country's ambitious solar program, noted that projects were under way that would allow India to achieve the government's target of 20,000 megawatts of solar power by 2022.

Gupta added that his ministry's primary objective is to reduce the price of solar energy and to stimulate new research and development.

India has nearly 1.2 billion inhabitants, with a rapidly growing electricity demand, which has averaged as much as 8 percent annually over the past 15 years.

11 predictions for 2011 | Cleantech Investing : Greentech Media

11 predictions for 2011 | Cleantech Investing : Greentech Media'Tis the season for nor'easters, new year's resolutions, and venture capital prognostications. All three, basically snow jobs.

2010 wasn't a good year for many cleantech venture capitalists. I think 2011 will be better... for some. Here's what I wrote about my 2010 predictions in retrospect. And here are some of my predictions for 2011:

1. The cleantech venture capital shakeout will become more obvious

I haven't seen too much written about this by those outside the industry, mostly because it's been pretty quietly done. But as we've talked about here before, there's been an exodus of investors out of the sector lately. To date, it's been mostly individuals -- either individual VCs leaving their firms, or the "cleantech guy" at diversified firms now being redirected back out of cleantech investing into other sectors. But wearing my limited partner hat, I'm seeing a whole lot of cleantech-specific firms out there or getting ready to go out there and raise new funds. And I just don't think the LP community will be able to support all of them. The big institutional LPs have been shifting away from venture capital as an asset class, and they've become more tepid about cleantech. 2010 saw a stop of any new cleantech venture firms; 2011 will see the shakeout of existing cleantech venture firms. Certainly there are a good number of cleantech-specific funds that previously had been able to raise funds simply on the basis of being cleantech specialists, but who now will be competing against each other for increasingly scarce LP dollars. And (often because of the overall VC category performance, and the lack of VC exits overall over the past decade) many won't have an advantaged track record, and won't have a really differentiated pitch versus their peers. I think it'll be lean times for many of those funds. The firms won't go away, but there may be more obvious slimming of staff as operating budgets go down and the lack of dry powder makes it less necessary to keep staff on. The good news is, given the continued need for experienced senior management at cleantech venture-backed firms, I think a lot of this will be VCs leaving to take operating roles. The other good news is that I think things will continue to get gradually better for cleantech venture fundraising...

2. 2011 will be the "Year of Energy Storage"

I predicted 2010 would be the Year of Energy Efficiency, and I think I was pretty much right (for once). This year, based upon the conversations I've been having with fellow cleantech VCs, I think it'll be the year for energy storage. By which I mean battery and ultracap technology, and large-format energy storage for grid-scale purposes. I continue to see lots of very interesting basic innovation going on, and some interestingly pragmatic attempts to productize some previously "exotic" approaches. I hear VCs harping on the problems the grid faces from intermittent renewables; the need for energy storage inside the meter for grid-tied and backup power purposes; and the continued VC love affair with electric vehicles and electronic devices. All of which need innovations in energy storage. This doesn't mean I'm predicting a lot of very capital-intensive bets on brand new chemistries and entirely new battery formats. Certainly, there will be a fair bit of that, but I'm also seeing a lot of interesting "chemistry-agnostic" approaches to building the systems implementing these applications, and even some attempts at "fabless" (in this case, relying upon contract manufacturing) business models, both of which are less capital intensive than an A123 manufacturing plant (for example).

Runner up is LEDs. LEDs are going to be ready for prime time in 2011. And as that inflection point hits and LEDs start to penetrate mainstream lighting, VCs are going to want to get on board -- even more so than they already have. However, I have spoken with a number of investors who see the market opportunity and trend, but don't see a good way to play it. They don't want to back an LED chip manufacturer; LED "light engines" (ie: the lighting component that would go into a traditional lighting OEM's fixture) are already pretty heavily invested and seeing slow market traction; and they don't want to invest in just an undifferentiated fixture OEM startup, going against the deeply entrenched incumbents. I think controls will be an area that gets a lot of attention, and I think VCs will find plenty of excuses to put dollars at work in the LED space regardless, but those are the reasons why I expect LEDs to be a runner-up to energy storage in the "Year Of" competition.

3. 2011 will be a moderately up year for cleantech venture dollars and valuations

Despite the cleantech venture capital shakeout described above, there are still lots of investors interested in the category. And we're all still climbing out of the 2008-2009 trough. 2011 will probably be as up and down as 2010 was, but with a generally upward trend.

4. A major geopolitical event will spike oil prices above $120/barrel

US crude oil futures for the next few years are already hovering over $90/barrel, and it's a highly volatile commodity market. And, there are enough flashpoints around the world where something will create a supply-side panic during the year, even if any feared interruption of supply doesn't actually happen. Meanwhile, the continued slow economic recovery will decrease the market's capacity to absorb such supply-side shocks without corresponding price spikes. So I think a pretty moderate spike at some point seems likely. The interesting thing, however, will be to see how that impacts both U.S. politics, and LP interest in the cleantech venture category... "Been there, done that" or another "OMG" moment?

5. There will be an energy law passed in the U.S., but it will be very patchy and incomplete

The Obama Administration seems bound and determined to reach across the aisle and try to find non-partisan issues to work on over the next couple of years. The three major ones I've heard being talked about are tax reform, education and energy. Tax reform is too hard to be first in line. Education will probably be first, but energy will be considered as well. I've seen evidence that some of the key players in the White House are now being tasked to think about energy policy, which really hadn't happened before, and what I'd been told by insiders is that "when you see the White House's 'A-Team' focused on this, that's when you'll know they're finally serious.'" However, I also expect a lot of partisan bickering and stalemate over the next 12 months and more. Certainly, "climate" isn't going to be the centerpiece of any new energy bill. And I don't see a lot of encouragement that there will be any serious new commitment of resources put toward development and implementation of new energy technologies. But it wouldn't surprise me to see an energy bill get passed that extends a few expiring subsidies for renewable energy technologies, does some token reform of subsidies for traditional energy production, and that puts some kind of restriction on the EPA's ability to regulate carbon. Those subsectors with the loudest constituencies would win out in the big horsetrading that would happen on Capitol Hill, others that are less-organized would get shafted. All in the name of Energy Independence and Energy Security, of course. There's an outside chance that a national RPS (or equivalent) gets passed, but I expect it would be pretty toothless by the time the political process did its work... This is a prediction I feel very iffy about, by the way. There's a very good chance nothing gets passed at all.

6. A couple of big venture-backed cleantech IPOs (valued over $1.5B) will happen, but still no blockbusters

There are a number of compelling IPO stories starting to line up. Will they go out in 2011? Completely up to how the stock market behaves, and what's actually going on behind the scenes at these companies. It will come as no surprise to many readers that many of the most lauded cleantech companies have questionable balance sheets, cashflow, and growth prospects; whereas some of the ones most beaten down by the press are now starting to come around and show signs of legitimate performance. I just looked at some journalist's list of the "Ten Most Likely Cleantech IPOs in 2010" from a year ago and I think only two of them actually happened. So I'm not going to try to pick which ones will be the IPOs in 2011, or even pick the sectors they'll be in. But I do think, if there's an IPO window on Wall Street at all, there's a good chance a couple of decent ones go out. Nevertheless, I also don't see the potential for the kind of hype that would allow for a really blockbuster cleantech IPO, either. I don't see any cleantech startup turning down Groupon-type acquisition offers anytime soon, in other words...

7. Family offices and other non-traditional investors will become a critical source of funding for cleantech private equity

For the most part, this is already happening, you just haven't seen it written up much in the press because these types of investors typically don't put out press releases. But I think in 2011 we'll see even more obvious leadership played by the family office and other non-LP-backed private equity community, in the cleantech sector. Partly by default, as the fundraising challenges for cleantech VCs continue. But also I speak with a number of such investors who want to start doing more direct investments into the sector. And also, these investors can typically invest with much more flexibility, which is key for a sector in need of some reinvention of business models. Speaking of which...

8. New hybrid investment models will emerge

I predicted this for 2010. It didn't really happen. But I continue to speak with both LP-backed and non-traditional VCs and PE players who see the need. So I'll double down for the prediction for 2011. And what I'm talking about is the emergence of new models that combine project finance and venture capital; that take innovative approaches to the use of debt and equity combined; and/or investment into the kinds of business models (like services, etc.) that VCs have typically had a hard time backing.

9. "Tech-enabled services" will be the new hot buzzword among cleantech VCs

Well, I shouldn't actually predict buzzwords. I mean, who'd have thought something like "black swans" would have caught such momentum in VC jargon. I'm not the guy to successfully predict fashions of any sort, rhetorical or otherwise. But I do think that VCs and other cleantech investors are going to be increasingly interested in making bets based upon interesting business models, not based upon some whiz-bang proprietary technology. There's increasing awareness of the relative fungibility of various clean technology innovations, since at the end of the day all are just different ways to source basic energy commodities (kwh, or joules). Fewer VCs are willing to make bets based upon an expectation that a purely technological innovation will be able to take the world by storm, at least within their investment holding period. And there's increasing respect for how hard it is to bring truly revolutionary technologies to market in these sectors, given the unique challenges along the way in productization and commercialization. But I see increased interest among such investors in finding better ways of delivering compelling solutions, in relatively capital-efficient ways. To me, this says they'll want to find service-type business models, but where there's enough of a proprietary technology angle that they can still look at themselves in the mirror and claim to be technology investors. Or to put it less cynically, they'll want to see enough differentiation and defensibility that they can believe a venture-type growth and exit story, even if it's a service business. And at the end of the day, service businesses will be who really deploy all these clean technologies we spend so much time talking about. There's a definite market need for it, but to date it's been undercapitalized as an overall business model category.

10. Among U.S.-based cleantech venture investors, they will devote relatively more dollars to international investments

I see a trend among US cleantech VCs toward investing overseas. They want to tap into more attractive markets, especially as the US federal government continues to show such a lack of leadership on climate and energy issues. They want to tap into the overall demographic and economic momentum of the BRICs and other emerging markets. And they want to not be too heavily tied to the fate of the US dollar, which many expect to fall eventually. So I expect that in 2011 we'll see even more emphasis put on finding cleantech investments in places like India, Brazil, China, and even Europe. Which will put a lot more US cleantech VCs on airplanes -- and possibly prompt some opening of overseas satellite offices, and/or partnerships with firms located closer to the investments.

11. The Washington Redskins will have a winning record

Those of you who follow me on my twitter feed (@cleantechvc) will know that I have an unhealthy affection for a certain woebegotten professional football team based in the suburbs of Washington, D.C. This year, they will yet again have a losing record. But for 2011, I see them getting better. Not getting great, but hopefully a bit better. I mean, they almost have to, right? Well, no they don't. And recent history suggests they won't. But even still, I feel a bit optimistic. Playoff-bound? Let's not go nuts here, I want these predictions to be at least plausible...

Thanks everyone for continuing to read these thoughts and for sharing your own in return, in comments, email and on twitter. I continue to get pinged by great entrepreneurs and investors out there based upon something or other I've written, and I always appreciate it and hope these posts have been helpful in some way... Here's to surviving 2010, and to good returns in 2011!

Cleantech entrepreneurs: Funding top challenge - Globes

Cleantech entrepreneurs: Funding top challenge - Globes71% of Israeli cleantech entrepreneurs consider their greatest challenge to be raising capital for their ventures, according to a Deloitte Brightman Almagor Zohar survey. 55% of respondents said that th biggest challenge was finding big customers in the global market, and 39% said that it was government regulation.
32% of the respondents said that recruiting trained manpower was also a major challenge. 37% said that engineering positions were the hardest to fill, 27% cited sales managers, and 20% said business development managers.
The survey aimed at creating a picture of the contemporary condition of the cleantech industry and the barriers facing it.

Why Energy Storage Investors Must Understand Newton's Laws | Alternative Energy Stocks

Why Energy Storage Investors Must Understand Newton's Laws | Alternative Energy StocksVinod Khosla, the founder of Sun Microsystems and an icon of cleantech venture capital investing, is famous for bluntly telling audiences that "Economics matters, NOTHING that defies the law of economic gravity can scale." This principle is a simple yet self-evident adaptation of Newton's law gravitation to the human condition.

An equally self-evident characteristic of the human condition is explained by Newton's laws of motion, which state:
First, that a body at rest will remain at rest, and a body in motion will remain in motion with a constant velocity, unless acted upon by a force.
Second, that a force acting on a body is equal to the acceleration of that body times its mass.
Third, that for every action there is an equal and opposite reaction.
While human beings are far more complicated than physical objects, the reality is we all resist rapid, pronounced, or uncontrollable changes in our lives, our habits and our established rituals, even when the changes might be beneficial. In the final analysis we're all bound by inertia. We praise change, adaptation and progress as desirable goals for others but resist them mightily in our own lives.

By now you're probably wondering where I'm going with the physics discussion so I'll cut straight to the chase. I believe all of the widely publicized forecasts about the future rate of vehicle electrification are wildly optimistic because they ignore the laws of economic gravity and human inertia.

In November of this year JD Power & Associates released "Drive Green 2020: More Hope than Reality?" The JD Power report was widely criticized for being far too conservative in forecasting HEV, PHEV and BEV penetration rates that were less than a third of the rates forecast by the Boston Consulting Group in its January 2009 report, "The Comeback of the Electric Car? How Real, How Soon and What Must Happen Next." When it came out, the BCG report was similarly criticized for being far more conservative than forecasts published by other analysts.

To put things into perspective, the following graph from the Electrification Coalition summarizes the PHEV and BEV market penetration forecasts published by a variety of analytical organizations. The JD Power forecast would have fit nicely between the EIA forecast and the Deloitte forecast.

Cleantech momentum gives reason to be optimistic in 2011 | Grist

Cleantech momentum gives reason to be optimistic in 2011 | GristIf there's one thing Americans agree on in these divided times, it's the urgent need to move toward cleaner energy. Polls taken as recently as November show a majority of Americans favoring comprehensive energy reform that limits pollution, develops domestic sources, and stimulates renewable power. We're not likely to get comprehensive reform in the year ahead, but I still see strong paths toward a cleaner, more sustainable economy.

That's because smart entrepreneurs are taking the lead. They see the "green" in green, and don't want to miss out on the next big industrial revolution transforming the global economy.

Corporate cleantech innovations were, in fact, the buzz at the recent international climate treaty talks in Cancun, Mexico. At a side meeting for business leaders, Dow Chemical CEO Andrew Liveris announced that his company is reaping $50 billion in annual revenues from the sale of its cleantech products. Solar shingles, coatings for energy-saving "cool" roofs, and sugarcane-based plastic, which emits far fewer greenhouse gases than petroleum-based plastic, are just some of Dow's budding green technologies.

Technology giant Siemens' clean energy portfolio likewise topped $37 billion in 2010. Nearly half of its 8,000-plus inventions last year involved technologies that improve energy efficiency and sustainability -- innovations like coatings for power-plant turbine blades, ultra-efficient lighting systems, and electric-car charging technologies.

Perhaps most impressive was Coca-Cola's announcement that it has removed the potent global-warming pollutant hydrofluorocarbons (HFCs) from 200,000 of its refrigeration units, and that it hopes to make its entire supply chain of 10 million refrigeration units completely HFC-free by 2015. Even better, Coca-Cola, Greenpeace, and other stakeholders convinced a consortium of 400 global consumer goods manufacturers to join their effort, and the group has now pledged a "gigaton-scale commitment" to phase out HFC refrigerants by 2015. Getting their peers onboard means that scaling up this new technology will happen more quickly and cheaply. A win-win for everyone.

Beyond corporate initiatives, emerging economies also give me hope for green progress in 2011. These rising tigers -- some with the fastest growing greenhouse gas emissions in the world -- are taking concrete steps to reduce their contribution to global climate change.

India began levying a carbon tax on coal producers in July, just one month before the U.S. Senate abandoned its efforts to pass a comprehensive climate bill. India will use those revenues to finance clean energy development.

Brazil passed a national law requiring 32 emissions-reducing activities, and adopted a voluntary goal of reducing its emissions by more than one third by 2020.

And China is globally dominating the wind and solar power industries. Though it still relies heavily on coal, China has pledged to reduce its carbon dioxide emissions per unit of GDP by 40 to 45 percent by 2020.

While these actions foster hope, they also leave me wondering why the U.S. is still stuck on fossil fuels and continues to cede the green industrial revolution -- and the jobs that come with it -- to other nations. China already boasts more than a million renewable energy jobs, five times the U.S. total.

Without strong national policies to incentivize clean technologies, voluntary business initiatives can only go so far. As Dow's Liveris put it, "We have the technologies for a global clean economy, but they will not deploy in significant numbers without greater public policy certainty and incentives."

The U.S. instead continues to seek short-term fixes from dirtier and dirtier sources of energy.

Take the proposed 1,900-mile, $12 billion Keystone oil pipeline designed to bring up to 1.5 million barrels a day of crude from Canada's oil sands to U.S. refineries as far south as the Gulf of Mexico. While the prospect of buying oil from Canadians, rather than unstable regimes, may sound appealing, there's a catch. Extracting crude from sticky oil sands emits far more greenhouse gases per barrel than conventional oil, and it is causing widespread environmental and health problems across vast stretches of Alberta, as outlined in a new report [PDF] by the Royal Canadian Society.

Why seek out dirtier sources of oil when we could be innovating electric cars and clean fuels for jets and improving vehicle efficiency standards -- all of which will help us regain our competitive footing in the global economy and put Americans back to work?

And here's the real kicker: Many of these clean technologies already exist. We just need the right policies and priorities to scale them up.

Last month's vote in Congress to extend renewable energy tax credits -- which will create 20,000 new jobs this year in the wind industry alone -- is a good example of what I mean. And there are other smart policies we can adopt in the coming months -- whether to expand energy efficiency or strengthen truck mileage standards -- that will move the U.S. toward a cleaner energy future. Now that would really fuel my optimism.

Budget Deficit Could Make Gov. Brown's 2011 Climate To-Do List Daunting | Reuters

Budget Deficit Could Make Gov. Brown's 2011 Climate To-Do List Daunting | ReutersFor California, indisputably the nation’s leader on climate policies, 2011 is likely to be a year in which the state comfortably widens its lead. From auto emissions standards to the construction of solar and wind farms, California is expected to take major steps forward.

The first step will be decidedly backward, however. Soon after he is inaugurated today, Gov. Jerry Brown is expected to solve the state’s unprecedented $25 billion budget deficit by making deep, across-the-board spending cuts that include vital climate-related programs such as subsidies for mass transit.

Still, the state’s climate policy backers are hopeful.

“Jerry Brown has been visionary and consistent on this issue, especially renewables, since the 1970s, so we have high hopes,” said Sen. Fran Pavley, a Santa Monica Democrat who spearheaded the state’s strict auto emissions rules.

She noted that the chair of the powerful Air Resources Board, Mary Nichols, held the same post during Brown’s previous time as governor, from 1978 to 1983, so California will enjoy in 2011 an unusual level of political continuity for climate and energy policies.

Beyond the immediate budget bloodbath, the agenda for Brown and state legislators will be chock full. While much public attention will be focused on the continued roll-out of detailed regulations for the state’s cap- and-trade system, announced Dec. 16, the coming months will bring a host of decisions on other climate-related policies with equal or larger impact.

In separate interviews with SolveClimate News, legislators, regulators and environmental advocates alike said that two key issues top their To-Do lists for the new year: improvements in the Renewables Portfolio Standard and the so-called Pavley Standard.

Giving the RPS the Force of Law

The Renewable Portfolio Standard, or RPS specifies the share of total energy supply that utilities must provide from renewable energy sources. Originally created by the Legislature in 2002 with a mandate of 20 percent, California’s RPS was further accelerated by Gov. Arnold Schwarzenegger, who signed an executive order that mandated an RPS of 33 percent by 2020.

Yet the clean-tech industry and their billionaire investors say they need the 33 percent level to have the force of law, rather than just being an executive order, to give them confidence to invest billions of dollars to build industrial-size solar and wind farms.

“Investors, financiers and developers of renewable energy are saying that the policy has to be set in stone, rather than just an executive order that can be overturned anytime,” said Daniel Kalb, California policy coordinator for the Union of Concerned Scientists. “This is a top priority.”

Democrats in the Legislature have introduced legislation to codify the 33 percent level, and environmental groups say they hope the measure will be fast-tracked and signed soon by Brown, who promised during his election campaign that he would support a standard of 33 percent.

“If California does something this big, it will have a significant effect on neighboring states and the whole Western region,” Kalb said.

U.S. Says Chinese Fund Breaks Trade Rules - NYTimes.com

U.S. Says Chinese Fund Breaks Trade Rules - NYTimes.com

Clean Tech VC in 2011: Fear of a Bubble Subsides | BNET

Clean Tech VC in 2011: Fear of a Bubble Subsides | BNET

10 Cleantech IPOs Picks for 2011: Cleantech News «

10 Cleantech IPOs Picks for 2011: Cleantech News « This year saw some improvements in the appetite for the public markets for cleantech companies, particularly given the successful IPOs by Tesla Motors and biofuel maker Amyris. But no one would call 2010 a blockbuster year, given a number of IPOs were cancelled and other greentech IPOs received lackluster interest. Yes, solar panel maker Solyndra would be the posterchild for a special issue on unsuccessful IPO attempts.

As always, the hopes are that 2011 will prove a better one for exits. Here is our list of potential greentech IPOs in 2011:

1. BrightSource Energy: The solar power plant developer hasn’t confirmed a plan to go public, but there is no shortage of “sources close to the company” that are eager to talk about it. Reuters ran a story today that renews talks about an IPO next year. Two other sources told Dow Jones something similar a few months ago. BrightSource has raised at least $176 million this year, and it’s lined up a federal loan and an equity investor for its first commercial solar power plant, a 392-megawatt project in California’s Mojave Desert.

But as we noted before, BrightSource is on the hook to build a total of 2.6 gigawatts of solar farms to sell electricity to Southern California Edison and Pacific Gas and Electric (the 392MW project is part of it). The company will need a lot more capital to complete that plan, which it would like to do by 2016. Turning to the public market makes sense for the company, especially now that it’s shown that it could finagle the permits and financing needed to build the first 392MW.

2. Silver Spring Networks: The company develops communication hardware and software for electric and gas meters, as well as other utility network equipment, and it, too, has long been rumored to be getting ready for an IPO. The company raised $105 million in late 2009, according to its filing with the U.S. Securities and Exchange Commission. The market for electric grid upgrades remains a robust one, even though smart grid companies have met strong resistance from some state and local regulators to spend hundreds of millions of dollars to roll out smart meters.

3. Smith Electric Vehicles: With the launch of the Nissan LEAF and Chevy Volt, as well as the growing number of charging stations across the country, the U.S. is seeing a real emergence of a market for electric cars. This trend, bolstered by billions of dollars in federal grants and loans, bodes well for players who can execute their plans without too many hiccups. Smith Electric Vehicles has lined up $32 million in public financing to get started on manufacturing and delivering its electric trucks and vans. But as other electric car makers such as Tesla and Fisker Automotive have demonstrated, it takes a lot of capital to be an automaker, let alone being a successful one. Smith’s CEO, Bryan Hansel, hasn’t made secret the fact that he’s looking to the public market for the capital.

4. Bridgelux: The LED lighting maker launched new products opened a factory in California this year. The company closed a $60 million round earlier this year, and it will need more capital to expand its manufacturing in order to compete with major players in the lighting industry such as Philips Electronics and General Electric. Bridgelux’s CEO, Bill Watkins, recently talked about expanding the company’s operations to Asia. China, in particular, appeals to him because its government offers not only help in financing but also in creating demand for LED lighting products (through city government purchases).

5. Enphase Energy: The microinverter company is one of the startups in the solar sector that has managed to line up private investment, customers and manufacturing plans quickly. Enphase, which contracts with factories to make its products, reportedly has shipped more than 400,000 microvinverters since its first product launch in mid 2008.

Since it contracts with Flextronics to make the microinveters, which are attached to each solar panel and converts the electricity from direct current to alternating current to feed the grid, it doesn’t need to raise a lot of money to build factories. Enphase closed a $63 million round in June this year, bringing the total, announced funding to $104 million. With its momentum so far, the company is creating a new market that didn’t exist before.

6. Fisker Automotive: The success of Tesla’s IPO has buoyed hopes for other electric car startups that invariably will need more money for its manufacturing operations. Fisker could be next up in the queue. One of the company’s investors, Ray Lane of Kleiner Perkins, said Fisker is gunning for an IPO some day. First, it has to launch its first model, the Karma. After some delay, Fisker now expects to launch the Karma in the U.S. market next spring.

7. MiaSole: The solar panel maker went into quiet-mode to fix its technology and re-emerged to start commercial shipment in 2009. Since then, it’s announced customers such as Juwi Solar and some good-size contracts to supply its copper-indium-gallium-selenide solar panels. MiSole’s inclusion in a Walmart project to install solar at its retail stores also has helped to raise the solar panel company’s profile. Greentech Media reported that MiaSole is looking at raising $100 million and do an IPO as early as 2011.

8. LS9: The biofuel maker just closed a $30 million round, but as those who follow the industry know, that amount is hardly enough to commercialize a technology that uses engineered microbes to feedstocks such as sugarcane into transportation fuel. LS9 also has deals with companies such as Proctor and Gamble to use its technology for producing chemicals that can go into many consumer products. LS9 bought a large production facility in Florida this year and needs to retrofit it for commercial production of diesel and other chemical compounds. LS9’s CEO, Ed Dineen, who only recently joined the company, told us he already is looking at raising a new round and/or an IPO to raise enough money for reach commercialization.

9. Boston-Power: We are waiting for the next successful IPO from a battery startup. Could Boston-Power be it? The company reportedly has been contemplating an IPO after 2010. The company has shown success in the consumer electronic space, but how well it can break into the electric car sector has been the big question. Boston-Power lost a bid to get a DOE grant to build a factory in Massachusetts in 2009. Since then, it’s made in-roads into the car market: It showed off its lithium-ion battery pack inside a Saab at the Los Angeles Auto Show last month. Boston-Power did raise $60 million earlier this year. If it can line up serious car battery supply contracts, then it’ll need some heavy capital to expand its manufacturing.

10. Bloom Energy: It’s our wild card pick. Bloom attracts a lot of attention ever since its coming-out party via a “60 Minutes” interview in February this year. The fuel cell maker gets so much interest – partly because it took Bloom eight years to show publicly what it had been developing – that five of the top 10 stories on Earth2tech this year had something to do with the company. Bloom reportedly had raised around $400 million before its media debut. That’s a lot of investments to recoup for its investors, which include Kleiner Perkins. The company has big-name customers such as Google, Walmart, eBay and Coca-Cola. But those names don’t tell you how much Bloom is generating in revenue and maybe profit. It certainly can use its momentum to raise more money, and companies such as Tesla have shown that reaching profitability isn’t a prerequisite for pulling off a good IPO.

AWA’s Wind Energy Projects Rank High on Canadian Priority List | Business Wire

AWA’s Wind Energy Projects Rank High on Canadian Priority List | Business Wire DALLAS--(BUSINESS WIRE)--Two wind energy projects owned by the American Wind Alliance (AWA), with a total 265 megawatts (MW) of installed capacity, have received priority ranking for transmission along the Lake Huron shoreline in the Ontario Power Authority’s (OPA) Feed-In Tariff (FIT) program.

“The Green Energy Act, and the associated Feed-In Tariff program, has made Ontario one of the most attractive markets for wind energy in North America”
Twenty Two Degree Wind Energy, a 150-MW project located south of Goderich, and Arran Wind Energy, a 115-MW project located east of Port Elgin, are ranked among the top 700 MW of renewable energy in first-round FIT applications from the shoreline that were held awaiting approval of the Bruce to Milton transmission line. Construction on the line is now under way.

“This brings us one step closer to receiving 20-year power purchase agreements,” said T. Boone Pickens, the legendary energy executive who started Mesa Power Group LLC. AWA was founded by Mesa Power Group. “AWA is committed to helping enhance North American national energy security and this renewables initiative is a key part of that effort.”

“The Green Energy Act, and the associated Feed-In Tariff program, has made Ontario one of the most attractive markets for wind energy in North America,” said Robert Hornung, President of the Canadian Wind Energy Association (CanWEA). “With a strong, consistent GEA in place, we are confident that the wind industry will deliver the jobs, investment and clean energy that Ontarians expect.”

The projects are ahead of many others in the FIT program because of their shovel readiness. They were favored because of their financial depth, relevant experience and available turbine supply.

On December 21, the OPA posted the priority ranking for 242 first-round FIT projects - applications submitted between Oct. 1, 2009 and Nov. 30, 2009 - that are without contracts. All wind projects in the western region of Ontario are now being considered for ranking because 1,200 MW of additional capacity that will be made available by the Bruce to Milton transmission line will be allocated during the next step, which is the Economic Connection Test (ECT). The ECT considers the cost to connect the projects based on ongoing transmission development and all other proposed generating facilities. The ECT will begin next month and it is expected contracts will be awarded at the end of that process.

Two other projects owned by AWA, the 200-MW North Bruce Wind Energy project east of Port Elgin and the 100-MW Summerhill Wind Energy project north of Clinton, along with other projects for which applications were submitted between Dec. 1, 2009 and June 4, 2010, are among the second-round applications that are currently being assessed by the OPA.

AWA’s four projects are being developed by Kincardine-based Leader Resources Services Corp.

About the American Wind Alliance:

The objective of this endeavor is to drive continued growth in the wind industry by acquiring and then completing the development of wind projects in North America. During the past several months, Mesa Power Group and the American Wind Alliance have successfully acquired more than 600 megawatts of high-quality wind projects and continue to consider new wind projects for acquisition that meet its selection criteria.

Clean Technology Set to Accelerate in 2011, Ernst & Young Says - Bloomberg

Clean Technology Set to Accelerate in 2011, Ernst & Young Says - Bloomberg Investments in clean technologies from electric cars to light-emitting diodes are set to accelerate next year after gathering momentum in 2011, the global accounting firm Ernst & Young said.

Venture capital plowed into companies including renewable power generators and makers of batteries and biofuels rose 25 percent in the first three quarters of 2010 from the same period last year, and is set to total $4.9 billion by year-end, the company said today in a report. Share sales in the sector this year have grown 75 percent to $9.1 billion, led by Enel Green Power SpA’s $3.1 billion offering, it said.

Governments such as China, South Korea, Brazil and the U.K. have spurred growth in carbon-cutting technologies, driven by the desire to create jobs, achieve energy security by reducing the need for imported fossil fuels, and ensure competitive advantage in the future, Gil Forer, global cleantech leader at Ernst & Young, said today in a telephone interview.

“Governments have really realized the essence and benefits of cleantech and at the corporate level there’s an acceleration of activity on the investment and acquisition side,” Forer said. “We definitely expect it will continue to accelerate in 2011 and going forward.”

Forer said he hadn’t produced any numeric forecasts for growth of the industry next year.

While investments in clean technologies have increased, company shares have declined. The WilderHill New Energy Index of 87 companies developing low-carbon technologies has slid about 15 percent this year compared with a 13 percent rise in the Standard & Poor’s 500 Index. Forer said that’s not necessarily the best gauge of the sector’s health.

‘Lab to Market’

“The cleantech IPOs behaved no differently than other IPOs this year,” Forer said. “Some were below expected pricing, others were above. Investment bankers have no difficulty in getting interest from investors in cleantech companies.”

Technologies including LEDs, electric vehicles and replacements for oil-based chemicals are now moving “from the lab to the market,” an indication of the growing maturity of cleaner products, Forer said.

While China is now “definitely the leader” in spurring clean technologies, the U.S. “is still a very strong number two,” he said.

Growing global population and demand, the need for secure energy supplies, and the fight against climate change all will continue to spur the industry, Forer said.

“Those drivers haven’t reduced in importance, and the response from government can corporations is accelerating,” Forer said. “You have all the ingredients to say there’s no reason not to be optimistic in 2011.”

Bulgaria - Bulgaria May Build Hydropower Plants in Lebanon - Standart

Bulgaria - Bulgaria May Build Hydropower Plants in Lebanon - StandartBulgaria may export turbines for hydropower plants and photovoltaic panels to Lebanon. In addition, Bulgarian experts may help with the construction of such facilities. This was agreed between Lebanon’s Minister of Energy and Water Jubran Baseel and Bulgaria’s Economy and Energy Minister Traycho Traykov during talks in Beirut. Such activities could be supported with up to one billion US dollars from a special fund. An agreement between Sofia and Beirut regarding the possible export of electricity from Bulgaria to Lebanon is also under way. An agreement for encouragement of the cooperation between Bulgarian and Lebanese SMEs was signed during a meeting between Bulgaria’s Economy Minister Traycho Traykov and H. E. Mohammad Safadi, Minister of Economy and Trade of lebanon.

Clean Technology Set to Accelerate in 2011, Ernst & Young Says - Bloomberg

Clean Technology Set to Accelerate in 2011, Ernst & Young Says - BloombergInvestments in clean technologies from electric cars to light-emitting diodes are set to accelerate next year after gathering momentum in 2011, the global accounting firm Ernst & Young said.

Venture capital plowed into companies including renewable power generators and makers of batteries and biofuels rose 25 percent in the first three quarters of 2010 from the same period last year, and is set to total $4.9 billion by year-end, the company said today in a report. Share sales in the sector this year have grown 75 percent to $9.1 billion, led by Enel Green Power SpA’s $3.1 billion offering, it said.

Governments such as China, South Korea, Brazil and the U.K. have spurred growth in carbon-cutting technologies, driven by the desire to create jobs, achieve energy security by reducing the need for imported fossil fuels, and ensure competitive advantage in the future, Gil Forer, global cleantech leader at Ernst & Young, said today in a telephone interview.

“Governments have really realized the essence and benefits of cleantech and at the corporate level there’s an acceleration of activity on the investment and acquisition side,” Forer said. “We definitely expect it will continue to accelerate in 2011 and going forward.”

Forer said he hadn’t produced any numeric forecasts for growth of the industry next year.

While investments in clean technologies have increased, company shares have declined. The WilderHill New Energy Index of 87 companies developing low-carbon technologies has slid about 15 percent this year compared with a 13 percent rise in the Standard & Poor’s 500 Index. Forer said that’s not necessarily the best gauge of the sector’s health.

‘Lab to Market’

“The cleantech IPOs behaved no differently than other IPOs this year,” Forer said. “Some were below expected pricing, others were above. Investment bankers have no difficulty in getting interest from investors in cleantech companies.”

Technologies including LEDs, electric vehicles and replacements for oil-based chemicals are now moving “from the lab to the market,” an indication of the growing maturity of cleaner products, Forer said.

While China is now “definitely the leader” in spurring clean technologies, the U.S. “is still a very strong number two,” he said.

Growing global population and demand, the need for secure energy supplies, and the fight against climate change all will continue to spur the industry, Forer said.

“Those drivers haven’t reduced in importance, and the response from government can corporations is accelerating,” Forer said. “You have all the ingredients to say there’s no reason not to be optimistic in 2011.”

The Future of Water Technology Highlighted By Finalists for Imagine H2O Competition : TreeHugger

The Future of Water Technology Highlighted By Finalists for Imagine H2O Competition : TreeHuggerThe Imagine H2O contest has announced finalists for this year's competition. These ten start-ups are competing for a $100,000 prize plus business and legal support to help get their idea off the ground and into the marketplace. The finalists focus on everything from water purification to generating energy from water. But the issues these start-ups focus on --often overlooked in other cleantech competitions -- shine a light on the future of water.

Clean-Tech Entrepreneurs Eye Funding Shift - WSJ.com

Clean-Tech Entrepreneurs Eye Funding Shift - WSJ.comJohn Bissell can turn raw sewage into water bottles, raincoats, diapers and other everyday products. But can he turn it into a $10 million industrial plant?

Mr. Bissell owns MicroMidas Inc., a Sacramento, Calif., start-up that makes plastic out of waste using a technology it developed two years ago. He's now looking to move into a large manufacturing facility from a pilot plant, but says lenders are reluctant to provide the $10 million in capital he needs to make that transition.

"We're stuck in between development and full-scale production," says Mr. Bissell. "It's tough finding lenders who will bet on a first plant."

To bridge that gap, Mr. Bissell and other emerging clean-tech entrepreneurs are eyeing the U.S. Department of Energy's loan-guarantee program. The five-year-old funding initiative is expected to sharpen its focus next year to less-developed ventures in areas such as carbon capture, biofuels and biomass processing as more conventional solar and wind projects gain the attention of private investors.

"We're really focusing on transformative projects that can be grown to scale," says Jonathan Silver, the head of the agency's loan-program office. At the same time, the agency should "back away" from maturing sectors, like onshore wind and smaller solar plants, as private-sector support expands, he adds.

A former venture capitalist, Mr. Silver calls the stage between development and commercial production for young clean-tech ventures a "valley of death"—a place where firms are ready to expand, but don't have the commercial track record to impress private-sector lenders and investors.

"You'll see us doing more work in these areas going forward," Mr. Silver says.

The Energy Department's loan-guarantee program is open to clean-tech businesses of all sizes, which in the past have sought loans between $16 million and $1.3 billion. But Mr. Silver says the agency will be casting an even wider net for less-developed technologies in the new year.

Much like the U.S. Small Business Administration 7(a) loans, the Energy Department doesn't disburse cash. Rather, it agrees to cover a venture's debts with a commercial bank in the event of a default.

That provides firms with the kind of access to capital needed to scale up to full commercial production—a stage when new technologies are able to prove their commercial viability and attract outside investors.

Last week, the Energy Department closed a $400 million loan guarantee with Abound Solar Manufacturing LLC, a solar-panel manufacturer with facilities in Indiana and Colorado.

Jim Mahoney says his three-year old start-up, Novomer Inc., is a perfect fit for an Energy Department loan guarantee. The company, which converts carbon dioxide from industrial plants into polymers, plastics and chemicals, needs about $100 million to build its own plant. It currently operates out of a small lab in Ithaca, N.Y., and relies on so-called toll manufacturers to borrow existing production facilities.

"This is just what we need to build up to scale," says Mr. Mahoney of the loan-guarantee program.

Novomer, which is funded by an $18 million grant from the American Recovery and Reinvestment Act, has yet to seek a private-sector loan, he adds.

Without the government's support, venture-capital firms would be left to shoulder the risk of investing in clean-tech innovators like Novomer, says Ira Ehrenpreis, a partner with Technology Partners, a Palo Alto, Calif., investment firm specializing in renewable-energy ventures.

"There's never been more activity in the clean-tech sector than there is right now, and the venture-capital industry is focused on early-stage technology," he says.

Greg Hayes says a loan guarantee would enable his firm, CleanWorld Partners LLC, to prove itself.

Founded last year, the company operates a prototype high-solid biomass processor on the University of California Davis campus that traps methane and other natural gasses. It has identified several revenue streams, but now requires as much as $3 million to ramp up.

Mr. Hayes says he's approached several private lenders for the funding, but was denied.

"Right now we're in that valley of death," Mr. Hayes says. "But there are investors waving on the other side. We just have to get there."

Clean Energy Patents: More Transparency Needed | Renewable Energy World Magazine Article

Clean Energy Patents: More Transparency Needed | Renewable Energy World Magazine ArticleIt is accepted that clean energy technology development will be pivotal in mitigating climate change and that transferring this technology to developing economies will be equally important in making these economies more socially responsible while supporting economic growth.

Last year's UN Copenhagen climate summit may have been considered a failure in terms of absolute emission reduction agreements, but it did call for the establishment of a mechanism to accelerate technology development and transfer and this process will have to be further developed in Cancun, Mexico, in UNFCCC meetings in December, due as REW goes to press.

But for all the perceived value in developing and transferring clean energy technologies (CETs) there has been little empirical data on the relationship between technology development and transfer, that is until now.

A new study: 'Patents and clean energy: bridging the gap between evidence and policy' sets out to provide facts where previously there has been little data.

The empirical study, jointly undertaken by the United Nations Environment Programme (UNEP), the European Patent Office (EPO) and the International Centre for Trade and Sustainable Development (ICTSD), assessed the role of patents in the transfer of CETs and concludes that: policy processes and signals do matter; accurate and publicly available information is urgently needed on existing and emerging CETs; and, options to facilitate licensing of CETs to developing countries should be considered.

Commenting on the study, EPO president, Benoît Battistelli, said: 'The joint study is both exemplary and ground-breaking in its cross-sector collaboration to deliver results that have a direct benefit to society. Patents play a key role in providing information about existing technologies, the level of their development and geographic spread. This information facilitates an informed debate on climate change.'

Achim Steiner, UN Under-Secretary and executive director of UNEP, said: 'Far from being a drag on economies and innovation, international efforts to combat climate change have sparked technological creativity on low carbon, resource efficient green economy solutions. The challenge now is to find ways in which these advances can be diffused, spread and transferred everywhere so that the benefits to both economies and the climate are shared by the many rather than the few.'

And ICTSD chief executive Ricardo Meléndez-Ortiz added: 'A massive scale-up of use and diffusion of Clean Energy Technologies globally, and in particular to developing countries, is imperative for effective climate change mitigation and adaptation. This study provides evidence and key insights towards a better understanding of the challenges facing this objective.'

The project comprised three parts: a technology-mapping study of key CETs, a survey of licensing practices, and a patent landscape based on the identified CETs.

For the purposes of the study CETs are defined as energy generation technologies with the potential to reduce greenhouse gas emissions.

According to the study, patenting rates (i.e. patent applications and granted patents) in the selected CETs have increased at roughly 20% annually since the adoption of the Kyoto Protocol in 1997 with patenting in CETs outpacing 'traditional' energy technologies. The report argues that the adoption of the Kyoto Protocol 'provides a strong signal that political decisions setting adequate frameworks are important for stimulating the development of CETs,' and notes that the most intensive patent growth has been seen in solar photovoltaic, wind, carbon capture, hydro/marine and biofuels.

Not surprisingly the study found that patenting in the selected CET fields is dominated by OECD countries, although it notes that a number of emerging economies are showing specialisation in individual sectors and are thus providing further competition to the OECD dominance and potentially, it says, changing the future of the CET patent landscape.