June 6 - inside greentech - The potential for a cleantech venture bubble has been getting a lot of attention. It's always a fascinating topic: when does an investment sector get "too hot?" Expect even more attention to be paid to this topic in the near future. Read More.
June 6 - ars technica - Two groups that track and promote environmentally-friendly investments, cleantech and E2, have released a report on the state of the market in what they term cleantech venture capital. The report suggests that a combination of high energy prices, governmental encouragement, and public awareness of climate change have combined to cause this sector to explode. Investors who were surveyed for the report, however, fear that inconsistent government policies may leave the sector at risk of a future downturn.
The report defines cleantech as anything that uses innovative or novel technology to make better use of natural resources in a way that provides economic value. This definition is broad enough to include basic manufacturing and shipping. The numbers, however, make clear that it means one thing in practice: energy generation, storage, and distribution. This sector accounted for nearly three-quarters of the $2.9 billion of venture capital that flowed into the US cleantech field in 2006. Read More.
June 4 - Bloomberg - From Mitsubishi Heavy Industries to E.ON, the world's largest companies are investing in wind power, the best-performing energy in the past year.
Led by Vestas Wind Systems and Iberdrola of Spain, utilities and governments in the United States, China and Europe will spend as much as $150 billion on wind projects in the next five years, according to CLSA Research. Lawmakers are providing financial incentives because windmills are non-polluting and cost less than solar projects.
"Wind has the biggest potential to meet renewable energy targets over the next decade, compared with solar and biofuels," said Philippe de Weck, who started the Pictet Clean Energy fund last month for Pictet in Geneva. Read More.
June 4 - Washington Univ - Washington University in St. Louis is creating a new International Center for Advanced Renewable Energy and Sustainability (I-CARES) to encourage and coordinate university-wide and external collaborative research in the areas of renewable energy and sustainability — including biofuels, CO2 mitigation and coal-related issues. The university will invest more than $55 million in the initiative, according to Chancellor Mark S. Wrighton.
A key goal of I-CARES is to foster institutional, regional and international research on the development and production of biofuels from plant and microbial systems and the exploration of sustainable alternative energy and environmental systems and practices. Research at the center will also focus on the region's important coal resources and efforts to mitigate carbon dioxide accumulation, improve combustion processes and reduce emissions. I-CARES will operate under the direction of Himadri B. Pakrasi, Ph.D., the George William and Irene Koechig Freiberg professor of biology in Arts & Sciences, and professor of energy in the School of Engineering. Read More.
June 4 - Bloomberg - From General Electric Co. to Mitsubishi Heavy Industries Ltd. to E.ON AG, the world's largest companies are investing in wind power, the best-performing energy in the past year.
Led by Vestas Wind Systems A/S and Spain's Iberdrola SA, utilities and governments in the U.S., China and Europe will spend as much as $150 billion on wind projects in the next five years, according to CLSA Research Ltd., part of Credit Agricole SA. Lawmakers are providing financial incentives because windmills are non-polluting and cost less than solar projects.
"Wind has the biggest potential to meet renewable energy targets over the next decade compared with solar and biofuels,'' said Philippe de Weck, who started the Pictet Clean Energy fund last month for Geneva-based Pictet & Cie., which manages $301 billion overall. Read More.
May 31 - Red Herring - Global spending on new energy and environmental technologies is slated to grow 14 percent this year to more than $55 billion with Asia maintaining its leading role, a research group said Thursday.
A report by New York-based Lux Research also showed that Asian countries, particularly China, Japan, and South Korea, in 2006 slightly increased their lead over the U.S. and European nations when it came to cleantech R&D spending by governments and corporations.
“Unlike previous technology waves in information and biotech…the U.S. is not leading the world,” said Matthew Nordan, president of Lux Research, in a prepared statement. “The Asia/Pacific region takes first place in government funding, corporate R&D spending, and scientific publications while the U.S. only leads in deployment of venture capital and in patents issued.” Read More.
The McKinsey Quarterly - Billions of dollars, euros, pounds, and reais are pouring into biofuels. High fuel prices and generous regulatory support have given the industry healthy margins and relatively short investment payback times. Meanwhile, the triumphs of the first movers and dreams of future growth are enticing companies in industries from petroleum and agribusiness to biotechnology, chemicals, engineering, and financial services. And of course, the allure of a greener future has raised the expectations of investors and bystanders who hope that biofuels will help meet the world’s energy needs while lowering greenhouse gas emissions.
Can biofuels deliver? The answer appears contingent on fuel prices as well as three other variables that directly influence the profitability and environmental impact of biofuels: the cost and availability of feedstock, government regulation, and conversion technologies. All are in flux, so an investment today is a bet on how these interrelated factors will evolve. Feedstock costs vary tremendously by region and could change significantly in the years ahead. Governments may alter the industry’s ground rules to match changing priorities in climate change, energy security, and economic development. The energy, cost, and carbon efficiency of various biofuels are already quite different, and new conversion technologies could make them even more so—at different rates in different regions. Decisions about where to produce and distribute biofuels could have dramatic implications for the feasibility of the business. Read More. (subscription required)
