Cleantech investments down 44 percent in Q2 2011

U.S. venture capital (VC) investment in cleantech companies fell by 44 percent to $1.1 billion in Q2 2011 compared to Q2 2010, according to Ernst & Young LLP. The analysis was based on data from Dow Jones VentureSource. Around $1.9 billion was invested in Q2 2010.

The Energy/Electricity Generation segment raised $311.6 million during Q2 2011. Through the first half of the year it raised $686.9 million. For the same period in 2010, it raised just under $700.6 million. Companies with a focus on solar power generation had the highest share of investments during the quarter, $234.2 million or 21 percent of the overall investment in 2Q 2011. BrightSource Energy secured the largest investment of the quarter with $168 million.

Companies in the Energy Storage sector brought in $150.3 million, a 4 percent drop from Q2 2010. The Ernst & Young report said cleantech companies in the revenue generation stage of development drew the greatest amount of VC investment in the first half of the year with $1.44 billion. Later-stage companies raised $1.28 billion in the first half of 2011.

California-based companies accounted for 51 percent of the dollars raised with $548.8 million. However, the Mountain region experienced a 167 percent increase in investment from Q2 2010 to $114.7 million. The Northeast followed with $109.8 million in investments.

In mid-June, the U.S. Department of Energy announced loans and guarantees or offered conditional loan guarantees totaling more than $32 billion to support 32 clean-energy projects. That included more than $10 billion in loan guarantees for solar projects. First Solar secured $4.5 billion in loan guarantees, NextEra Energy Resources LLC secured $681.6 million and Abengoa SA's solar energy unit received $1.2 billion. All of the money is earmarked for projects in California.

On the private investor side, a group of 11 wealthy U.S. families formed The Cleantech Syndicate, an investment fund to support renewable energy and power-efficiency companies at all stages of development. The families intend to invest up to $1.4 billion over five years, according to Bloomberg New Energy Finance.

Corporate activity was notable in two areas: solar and electric vehicles. In the solar market, Google announced a partnership with SolarCity to create a $280 million fund to provide solar panel leases and power purchase agreements to households. Bank of America, Merrill Lynch, Prologis and NRG Energy are jointly financing the installation of $2.6 billion of commercial and industrial rooftop solar arrays.

Additionally, GE announced a $600 million investment to manufacture solar panels in a factory slated to be the largest in the U.S. In terms of electric vehicles (EV), several initiatives focused on EV charging infrastructure. The National Renewable Energy Laboratory (NREL) is working with Google, Coulomb Technologies, Pacific Gas and Electric, Tom Tom and Best Buy to provide information on the locations of EV charging stations. GE Energy Industrial Solutions and Lowes will partner to offer Level 2 GE WattStation Wall Mount EV Charging Stations.

In terms of other capital market activity, there were nine cleantech mergers and acquisitions with a disclosed value of $2.1 billion in Q2 2011, according to IHS Herold. The largest of these was the 60 percent acquisition of SunPower Corp by Total SA, for $2 billion.

Read more financial news

Sponsored by FLSmidth

Related Articles

Cape Wind secures $400M more in financing for offshore project

Cape Wind said it has secured an additional $400 million dollars from several financial institutions for the offshore wind project slated to be built in Nantucket Sound.

Dragonfly Solar, SolarWorld to deliver solar power to utility co-ops

Commercial solar developer, Dragonfly Solar and SolarWorld, a solar manufacturer, will deliver solar arrays, totaling 517-kW to four electric utility cooperatives in the U.S. Midwest.

Follow Power Engineering on Twitter

Latest News

Shutterstock coal production trucks

Weekly Coal Production

The Weekly Coal Production shows how much coal is being produced across the U.S.

Federal Reserve Bank of Dallas Weekly Economic Indicators financial business

The Federal Reserve Bank of Dallas' Economic Indicators

The Federal Reserve Bank of Dallas offers a glimpse into how the markets are doing domestical...

Kvaerner awarded contract for gas-fired power plant in Delaware

Kvaerner North American Construction Inc. and its joint venture partner, Parsons Brinckerhoff...

Canadian Solar purchases two solar projects

Canadian Solar Inc. has acquired a majority interest in two utility-scale solar power project...

Operators Restart Unit 2 at PPL Susquehanna

Unit 2 at the PPL Susquehanna nuclear power plant near Berwick, Pa. resumed generating electr...

Settlement agreement limits cost recovery at Edwardsport

The Indiana Utility Regulatory Commission (IURC) on Dec. 27 modified and approved a settlemen...

Toshiba in talks to sell portion of Westinghouse nuclear unit

Toshiba Corp is in talks  to sell up to 16% of its stake in the Westinghouse Electric Co...

Utah nixes nuclear waste storage facility

Plans to park radioactive waste at a storage facility in Utah have been officially called off.

Power Engineering Current Issue

03/01/2014
Volume 118, Issue 3
1403PE-cover

Products Showcase

Dynamic Fluoride Ion cleaning DFIC of industrial natural gas turbines Hi-Tech Furnace Systems

Dynamic Fluoride Ion Cleaning of IGT Parts

The Dynamic Fluoride Ion Cleaning (DFIC) Process from Hi-Tech Furnace Systems is able to clean deep, narrow cracks of oxides by cycling between negative, atmospheric, and positive pressure.

Archived Articles

2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013

Power Industry Wire News

Perma-Fix Environmental Services Appoints Larry M. Shelton Chairman of the Board

Perma-Fix Environmental Services Appoints Larry M. Shelton Chairman of the Board

Scorpio Bulkers Inc. Announces Agreement to Sell Kamsarmax Newbuilding

Scorpio Bulkers Inc. Announces Agreement to Sell Kamsarmax Newbuilding

Next Generation ZaZZZ Proprietary and Identity-Verifying Vending Machines Ship to 18 Locations This Month

Next Generation ZaZZZ Proprietary and Identity-Verifying Vending Machines Ship to 18 Lo...

Rockdale Resources Enhances Operations, Implements Cost Reductions and Changes Board Composition

Rockdale Resources Enhances Operations, Implements Cost Reductions and Changes Board Co...

Cardinal Energy Group, Inc.: Bradford Lease Drilling Report

Cardinal Energy Group, Inc.: Bradford Lease Drilling Report

Power Engineering

Article Archives for Power Engineering Magazine

Continuing Education

Professional Development Hours

To access a course listing associated to a specific topic listed below, click on the topic of choice from the list below.

Latest Energy Jobs

View more Job Listings >>