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

[Image Gallery]

 Basin Electric wants to expand Williston-area power station

Basin Electric wants to expand Williston-area power station

Basin Electric Power Cooperative wants to expand the capacity of its 135-megawatt Pioneer Gen...
 Vermont House endorses renewable energy package

Vermont House endorses renewable energy package

The Vermont House has advanced a wide-ranging bill that pushes utilities beyond electricity t...
 W.Va. lawmakers clears bill touted by state's coal industry

W.Va. lawmakers clears bill touted by state's coal industry

West Virginia lawmakers have approved a proposal lauded by the struggling coal industry and c...
 Google invests $300Mn in SolarCity

Google invests $300Mn in SolarCity

Google Inc. is investing $300 million equity stake in a fund created by SolarCity Corp. to fi...
Solana

Power Engineering Photo of the Day

 France’s nuclear power plant shuts down due to pipe leak

France’s nuclear power plant shuts down due to pipe leak

Unit 1 at the Fessenheim nuclear power plant in France shut down Feb. 28 following the discov...
 Indian Point nuclear Unit 3 down for $50mn refueling outage

Indian Point nuclear Unit 3 down for $50mn refueling outage

Entergy (NYSE: ETR)’s Indian Point nuclear power plant Unit 3 in New York shut down for a pla...

Power Engineering Current Issue

02/01/2015
Volume 119, Issue 2
1502PE-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 | 2014 | 2015

Power Industry Wire News

American Eagle Energy Announces Operations and Reserves Update and Guidance

American Eagle Energy Announces Operations and Reserves Update and Guidance

Parsons Acquires T.J. Cross Engineers, Inc.

Parsons Acquires T.J. Cross Engineers, Inc.

Energy Experts Discuss 2015: Synergy Resources, Earthstone Energy, Fortis Energy Services, Samson Oil & Gas, Wunderlich Securities -- Exclusive Video Interviews With EnerCom's Oil & Gas 360(R)

Energy Experts Discuss 2015: Synergy Resources, Earthstone Energy, Fortis Energy Servic...

Department of Defense Supports Neumedicines With Groundbreaking Grant for Surgical Site Infection Therapy

Department of Defense Supports Neumedicines With Groundbreaking Grant for Surgical Site...

Range Declares Quarterly Dividend

Range Declares Quarterly Dividend

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 >>