Clean technology venture investment reaches record $8.4 billion in 2008 despite credit crisis and broadening recession

Even with diminished 4Q08 results, clean technology investment fundamentals remain strong.

The Cleantech Group™, founders of the clean technology investment category and providers of leading global market research and other services for the clean technology ecosystem, today announced preliminary 2008 results for clean technology venture investments in North America, Europe, China and India totaling a record $8.4 billion, up 38% from $6.1 billion in 2007. The 2008 total represents the seventh consecutive year of growth in venture investing, widely recognized as a leading indicator of overall investment patterns: Historical Clean Technology VC Investment By Year North America, Europe & Israel, China, India 2001 $506,780,774 2002 $883,269,409 2003 $1,258,565,762 2004 $1,398,256,823 2005 $2,077,524,074 2006 $4,520,208,949 2007 $6,087,179,844 2008 (preliminary) $8,414,259,610 Source: Cleantech Group (cleantech.com) “As expected, clean technology venture investing slowed in 4Q08, but it’s important not to miss the forest for the trees,” said Nicholas Parker, Executive Chairman, Cleantech Group. “In 2008, there was a quantum leap in talent, resources and institutional appetite for clean technologies. Now, more than ever, clean technologies represent the biggest opportunities for job and wealth creation.” Preliminary results for 4Q08 indicate venture investment commitments worldwide of $1.7 billion across 99 disclosed investments, the smallest quarterly total in 6 quarters. 4Q08 was down 35% from 3Q08, yet down only 4% from 4Q07 despite a much more difficult economy. The top clean technology sectors in 2008 were solar, biofuels, transportation, and wind. Solar accounted for almost 40% of total clean technology investment dollars in 2008, followed by biofuels at 11%. “2008 saw solar take a 40% share of clean technology venture investment dollars, led by mega-investment rounds in thin-film solar, concentrated solar thermal and solar service provider companies,” said Brian Fan, Senior Director of Research, Cleantech Group. “Investors also continued to migrate from first-generation ethanol and biodiesel technologies to next-generation biofuels technologies, led by algae and synthetic biology companies. Other sectors with healthy investor interest included smart grid companies, small-scale wind turbines, plastics recycling, green buildings and agriculture technologies.” Top Venture Capital Clean Technology Sectors in 2008 Technology Sector Amount Invested % of total Solar $3.3 billion 40% Biofuels (including ethanol, biodiesel, synthetic biology, algae) $904 million 11% Transportation (including electric vehicles, advanced batteries, fuel cells) $795 million 9.5% Wind $502 million 6.0% Smart Grid $345 million 4.1% Agriculture $166 million 2.0% Water $148 million 1.8% Top clean technology funding rounds in 2008 were dominated by US-based solar companies: Five Largest Clean Technology Rounds in 2008 Company Description Amount Raised NanoSolar (USA) Thin-film solar (CIGS) $300 million Solyndra (USA) Thin-film solar (CIGS) $219 million SoloPower (USA) Thin-film solar (CIGS) $200 million WinWinD Oy (Finland) Wind Turbines $177 million Solar Reserve (USA) Concentrated Solar Thermal $140 million BY WORLD REGION: EUROPE AND ISRAEL European and Israeli companies raised $1.8 billion in 146 disclosed rounds, up 43% from 2007. Europe and Israel accounted for 21% of the global total. The traditionally strong energy generation sector increased its share of total investment to 71% ($1.279 billion) from 56% ($ 703 million) in 2007, with a strong increase in investments in wind ($322.6 million, an increase of 294% from 2007) and solar ($589.3 million, an increase of 64% from 2007) leading the way. Outside of the energy generation sectors, energy efficiency investing led the way, representing 8% ($137.6 million) of the total invested. The most significant country growth was seen in Germany ($383 million invested, an increase of 217% from 2007) and Israel ($247 million invested, an increase of 224% from 2007), both led by very large solar deals. Germany overtook the UK as the country receiving the most venture capital in 2008, helped significantly by the region’s largest solar deal of 2008, the $133.7 million investment in Berlin-based solar thin-film manufacturer Sulfurcell Solartechnik. The UK’s decline in total investment ($337.8 million, down 11% from 2007) left it second in the country league table, with Israel moving into third place from sixth in 2007. CHINA: In 2008, Chinese cleantech companies raised $430 million in 18 disclosed rounds, up 22% from 2007. China accounted for 5% of the global total. As expected, 2008 witnessed steady gains in clean technology investment in China. Solar accounted for 60% of the total, reflecting the continuing migration of solar module manufacturing from Europe and the US to China, as well as the opportunity of a large domestic market for solar water heating. Other active sectors include agriculture, lighting, and wind. The underlying fundamentals driving cleantech investment in China, including government efficiency targets in energy, water and resource utilization, emission reduction targets, government and corporate goals for cleaner supply chains and industrial operations, and corporate social responsibility goals, remain in place. INDIA: Indian companies raised $277 million in 14 disclosed rounds, down 20% from 2007. India accounted for 3% of the global total. Although 2008 was down from 2007, new investors including Kleiner Perkins and Garage Technology Ventures, as well as corporate investors such as Applied Materials, entered the India clean technology market. The clean technology sector in India remains nascent compared to more mature markets such as North America and Europe. Much of the interest has been in addressing the energy shortage challenges faced by the country, therefore, energy generation and infrastructure, with solar and wind deals leading the way, attracted the majority of investment dollars. However, new sectors received capital, such as electronic waste recycling, energy efficiency and water management. NORTH AMERICA: In 2008, U.S. companies raised $5.8 billion in 241 disclosed rounds, up 56% from 2007. US companies accounted for 68% of the global total. Canadian companies raised $159 million in 14 disclosed rounds, down 58 percent from 2007. TOP INVESTORS: Leading clean technology investors in 2008, as measured by the number of disclosed financing rounds the fund participated in, were: Full-Year 2008 Top Five Most Active Clean Technology Venture Funds Venture Capital Firm # of rounds Khosla Ventures 21 Kleiner Perkins Caufield & Byers 18 Quercus Trust 16 RockPort Capital Partners 13 Draper Fisher Jurvetson 13 Source: Cleantech Group (cleantech.com) M&As and IPOs: For full-year 2008, clean technology M&A totaled an estimated 163 disclosed transactions, totaling $40.4 billion. Top M&A transactions included: Top 5 Clean Technology M&A Transactions in 2008 Acquiring Company Target Company Amount Type Iberdrola SA Energy East Corp. $4.6 billion Acquisition LBO France Converteam Group SAS $3.1 billion Minority Stake Scottish & Southern Energy Plc. Airtricity Holdings, Ltd. $2.6 billion Acquisition International Power Plc. Trinergy Ltd. $2.5 billion Acquisition Arcapita Honiton Energy Ltd. $2.0 billion Joint Venture Source: Cleantech Group (cleantech.com) In 2008, clean technology public offerings totaled an estimated $5.1 billion in 16 IPOs. Top 5 Clean Technology IPOs in 2008 Company IPO Date Amount Raised Exchange EDP Renovaveis, S.A. 6/4/2008 $2.4 billion NYSE Euronext Lisbon American Water Works Company, Inc. 4/23/2008 $1.2 billion NYSE SMA Solar Technology 6/26/2008 $570 million Frankfurt GT Solar, Inc. 7/24/2008 $500 million NASDAQ Energy Recovery, Inc. 7/2/2008 $69 million NASDAQ Source: Cleantech Group (cleantech.com) The Cleantech Group has issued projections for what the sector may see in 2009. Those predictions are available at http://cleantech.com/about/pressreleases/120408.cfm Key takeaways reviewed in webinar next week The Cleantech Group will review key findings of its 4Q08 and full-year 2008 data in a live webinar January 13, 2009 at 11AM EST / 8AM PST / 16:00 GMT, exclusively for members of the Cleantech Group’s Cleantech Network. Members may join the live meeting athttp://cleantech.acrobat.com/research/ a few minutes before the event begins, and will need their email address and Cleantech Network password to log in. Members unsure of their passwords can contact Cleantech Group at +1 810-224-4310 x.7151 or can retrieve their password at http://cleantech.com/memberpassword.cfm Cleantech Forum® XXI San Francisco February 23-25, 2009 Join Cleantech Group’s 21st Cleantech Forum® in San Francisco February 23-25. Cleantech in 2009: Upside Driver in a Downside Market will bring together over 800 of the industry’s most influential clean technology innovators, investors and policymakers. Visithttp://www.cleantech.com for information and registration. About the Cleantech Group, LLC The Cleantech Group pioneered the clean technology investment category in 2002. Today, it accelerates the development and market adoption of clean technologies globally through membership in the largest global network of investors and companies representing more than $3 trillion in assets. Member investors, growth companies/vendors, enterprises, service providers, and others receive access to capital, investment deal flow, market leading research and data, insight, sales leads, human capital, and promotional opportunities. The Cleantech Group also produces the premier Cleantech Forum events worldwide. Details at http://www.cleantech.com.

Revolutionary Russian Thinking in Bid to go Green

High-profile officials from ProProsperity, a major player in the regeneration of the Moscow are in Peterborough this week (10-14 November 2008) for talks with Peterborough’s Renewable Energy company PREL about an initiative to develop an energypark in the Russian capital.

Moscow may be the capital of the world’s second largest oil exporter and major gas producer but city bosses are aiming to be part of the climate solution rather than part of the climate problem by reducing Moscow’s own dependence on fossil fuels.  Harnessing bio-energy power from waste and the clean technology solutions PREL offers for alternative energy are what have brought the delegation to town.

PREL‘s plans for alternative energy generation in Peterborough (currently being considered by the UK’s Department of Energy & Climate Change) are sparking interest  not only in Russia but across Europe, not least because of the ability to provide a tidy solution to waste, produce enough power to support 60,000 households and cut CO2 emission by over 600,000 tonnes a year.

PREL MD Chris Williams says:

“The Russian delegation showed strong interest in exploring alternative energy strategies to power clean development. They were particularly keen on our integrated, cost-effective approach as demonstrated in our energypark concept.”

Energyparks provide space for the incubation of green businesses and communities around a smart grid that provides continuity of energy supply at a time when ageing conventional power infrastructure is decommissioned and blackouts are a real and increasing fear.

Chris adds “Moscow, in common with many Local Authorities in the UK and across Europe are attracted to the idea of having waste to energy plants on their doorstep and we will be following these initial meetings with continuing dialogue.”

 

 

Nujira gets $18m

Cambridge-based Nujira has secured $18 million (£9.75 million) to improve the market penetration of its transmitter technology, which improves the efficiency of cellular network base stations and digital broadcast transmitters.

The company’s technology allows infrastructure and handset manufacturers to avoid the reduction in amplifier efficiency which WCDMA, CDMA200 and WiMax normally experience.

Nujira was recently named as one of the top ten clean technology companies in Europe by the Guardian.

Funding will go towards extending its involvement in the handset market.

Founder and chief executive officer Time Haynes told Business Weekly: "The company first entered the handset market 18 months ago, but it was around six months ago that silicon vendors and handset makers really grasped the proposition.

"Our technology can drive savings of several dollars per handset and efficiency is becoming increasingly important with datacentric handsets like the iPhone."

He also said that the company expects to make "tens of millions of dollars" in annual revenues by 2011.

Circuit company 3rd best clean tech firm

A Cambridge-based company that makes circuits that reduce the amount of power electrical devices use while in standby mode has been praised as one of the top ten clean technology companies in the country.

CamSemi, a 35-employee firm, took the third slot in the Guardian newspaper’s Clean Tech 100 list.

The firm, which has no fabrication plant of its own, designs power management circuitry to reduce the energy consumption of products such as phone chargers or video recorders when they are in standby mode.

Individually the effects of this technology do not amount to much as these devices do not consume a lot of energy. However, the cumulative effect of this technology could be massive as the technology is applicable to billions of devices.

According to the firm’s environmental policy, it is "committed to helping customers achieve more energy- and materials-efficient offline power conversion and as a developer and provider of integrated circuits endeavours to be environmentally responsible".

Nujira top ten clean tech firm

Cambridge firm Nujira has been recognised as one of the country’s top ten clean technology firms.

The company, which helps reduce operational costs and boosts environmental performance of base stations and radio transmitters for mobile phone and radio networks, was named the ninth best clean technology company in the Guardian’s list of the top 100.

Traditionally, base stations and radio transmitters consume massive amounts of energy but, according to the newspaper, Nujira’s technology cuts consumption by 50 per cent.

By boosting transmission efficiency, the technology not only improves base station consumption but also improves handset battery life.

According to the Guardian, the company’s technology is being assessed by the majority of the world’s major telecommunications infrastructure vendors.

Nujira claims that radio networks typically account for 80 per cent of an operators electricity consumption.

Cambridge to host clean tech conference

A conference at which ways of promoting clean technology and a carbon free future is to be held at the University of Cambridge later this month.

Entrepreneurship for a Zero Carbon Society will take place at the Sidgwick Site in Cambridge from September 22 to 24.

On the agenda for the event will be the funding of alternative technology, the role of business in responding to climate change and the transition to an environmentally sustainable economy, among other topics.

Organiser, Cambridge MBA student Marisa The, said that the university’s location in the Silicon Fen of the east of England provided a unique opportunity.

"It could blend cutting-edge energy research and policy with entrepreneurial talent and investment, creating the optimum environment for the development of an integrated approach to achieving a low carbon society, and the actual innovation of new clean technologies to challenge the status quo," she told FoodBev.

Other topics for discussion will be how providing incentives or subsidies such as fed-in tariffs could help develop the clean technology and in particular clean energy sector.

Eco-development offers savings

Residents at an eco-development in Norfolk have revealed that they are making massive savings on their utility bills.

At the Ecostessey Park development on the banks of the River Tud, the 22 town houses were made with sustainable design and feature energy efficiency measures such as solar water heating, ground source heat pumps and rainwater harvesting.

The result of the clean technology, according to 54-year-old teacher Sarah Armstrong, is savings of more than £200 a month on energy bills.

She moved from a converted barn in Depham, and has noticed a massive improvement, though the energy savings originally were only of minor significance.

"What we liked about the house was that it was a really nice, spacious four-bedroom house and the eco part was secondary," she told the Norwich Evening News.

"The energy cost here is negligible compared to the barn. The barn was very difficult to heat. We’ve gone from an old, converted place with wooden beams to a really ultra-modern well-insulated house."

According to the Energy Saving Trust insulation is one of the easiest ways to reduce heat loss and bills and it suggests that installing 270mm of insulation could save £155 a year on heating bills and cut carbon emissions by one tonne compared to homes without the insulation.

Hertfordshire’s Polysolar gets £567k grant

A group led by Hertfordshire-based clean technology company Polysolar has received a £567,000 grant to develop photovoltaics that can be used on windows.

The Technology Strategy Board (TSB) has announced funding for research into low cost translucent photovoltaic organic polymers, which will start in November as part of a broader £10 million investment int0 16 research and development projects.

Hamish Watson, chief executive of Polyusolar, told New Energy Focus: "The objective of the project is to develop polymer photovoltaics to use in transparent architectural glazing, primarily for commercial buildings.

"The basic technology of polymer photovoltaics originates from Cambridge and Imperial College research. What we are doing is improving the lifetime and performance of the technology, and encapsulate it for the glazing application."

Polysolar’s grant is a share of £10 million awarded by the TSB to "enable innovative materials technologies to be developed to meet the challenges we face in energy generation, conservation, storage and transmission" said science and innovation minister Ian Pearson.

Another project to receive funding is a bio-based natural fiber development led by Bangor University aimed at developing sustainable, thin and efficient insulation.

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