Green Options

OPEN (Organization for Pakistani Entrepreneurs) Silicon Valley is holding their Forum ‘09 this Saturday, June 13th at the Computer History Museum in Mountain View, California. This year, the forum will include a Cleantech track that will bring business leaders, entrepreneurs, investors, and policy makers together to discuss different perspectives of clean and sustainable technologies for the future. If you are in the San Francisco Bay Area and want a new and interesting perspective on the subject, head out to Mountain [...]

A new study from the journal Nature Geoscience has found that 50% of the total temperature increases in the Arctic over the last century have been due to black carbon, a substance that only stays in the atmosphere for several days to weeks.

This means that if black carbon emissions were immediately halted, it may only take a few weeks for warming trends to reverse by half.

I was struck by the trash talk spotlight on Green is Sexy this month with Verus Energy Ltd. Co-Founders Tim Jervis and David Diracles because they truly understand that the global energy generation infrastructure is requiring colossal changes to sustain the planet.

Verus Energy is a new form of development company that focuses on building renewable power plants that use waste as the feedstock: “In the same way that a property developer might develop a new residential or commercial property, Verus develops a power plant. Between the core team at Verus and our strategic partners, we can design, build, construct, and operate power plants that use waste rather than fossil fuels as the source of energy.” Jervis and Diracles explain.

Verus states on their website that they are out to change the way power plants work. Their mission is to help the UK (and soon the US) address waste and energy challenges by developing clean and efficient energy from waste plants.  Energy from waste encompasses many processes where trash is converted into electricity, heat, or transport fuel.  On top of providing a clean and secure source of energy, the process provides an environmentally friendly alternative to dumping waste in landfill.

Instead of polluting the air with the (traditional power generating) burning of waste for fuel, they are creating much cleaner trash power with anaerobic digestion and pyrolysis…

Hydrogen (H) fuel cell technology could perhaps become the cleanest form of energy, both in terms of generating the gas and in terms of combustion products (which are just heat and water). The biggest problem has been making the process of H generation clean, efficient, and cheap, as the current, main source of H gas is coal.

Off-shore wind power could generate enough electricity to supply every home in the UK by the end of the next decade, the government announced.

One of 30 wind turbines in the Kentish Flats wind farm, which produces up to 90 MW of renewable energy for the UK.

Another 5,000-7,000 wind turbines could generate enough electricity by next decade, concludes a British government energy department study.

The Department for Energy and Climate Change study concluded that another 5,000-7,000 wind turbines could be built off the coast by 2020, generating 25 GW of energy, equivalent to 25 large coal-fired power stations. The new capacity would be on top of 8GW already being built or in planning, making a total of 33GW.

The results of the year-long research into the geology, birds and marine life goes even further than the Carbon Trust, a company set up by government to help businesses reduce carbon emissions, which last year said the UK could build a total 29GW of off-shore wind.

However, the announcement was clouded by claims from the energy company E.ON that the economics of what is the UK’s biggest current off-shore wind project, the London Array off the coast of Kent and Essex, were “on a knife edge”.

It may be a bad time to seek funding, but some cleantech investors see it as a good time to get a deal. At the Clean-Tech Investor Summit in Indian Wells, Calif., last week, Kevin Walsh, managing director of renewable energy for GE Energy Financial Services, said GE is taking advantage of the economic environment to snag good deals and is also looking at smart-grid and energy-efficiency opportunities. “We’re being opportunistic,” he said. “You’ll see more deals on the venture side in the next few months.”

Cleantech IPOs have ground to a halt, and industry insiders at the Clean-Tech Investor Summit this week said they expect the no-exit environment to continue.

Mohr Davidow Ventures partner Will Coleman, who moderated a cleantech-financing panel at the event, asked panelists to guess when the IPOs would come back. “The second quarter, which doesn’t mean the markets [will have] reopened,” said Gary Vollen, managing director of the Stanford Group Co. “I think the third quarter, probably,” guessed Jeff Lipton, managing director of Jeffries & Co. Inc.

Attendees of the fifth annual Clean-Tech Investor Summit, which starts Tuesday in Indian Wells, Calif., might notice a change in the agenda from previous years. The annual panel on cleantech investment exits –IPOs or acquisitions of venture-backed startups – has disappeared.

It’s a reflection of the economic environment, said Ron Pernick, a principal at research firm Clean Edge and a co-producer of the conference. “There haven’t been any exits to speak of, which tells you something,” he said.

At first glance, the latest numbers from the Cleantech Group look like terrific news. After all, they conclude that 2008 was a record year for cleantech investments, with venture deals in North America, Europe, Israel, China and India reaching a total of $8.4 billion, up 38 percent from $6.1 billion in 2007.

But most of that money was dealt out in the first three quarters, with investment slowing significantly – as expected – in the fourth quarter.

According to preliminary numbers, venture capitalists in these regions committed $1.7 billion in 99 deals in the fourth quarter, down 35 percent from the third quarter and 4 percent from the fourth quarter of 2007. In North America, by far the biggest venture-capital region, fourth-quarter investments totaled $1.14 billion, a decrease of 38 percent from $1.83 billion in the third quarter and of 5.8 percent from $1.21 billion in the last quarter of 2007.

It’s been quite a year for the cleantech industry, with roller-coaster oil and stock prices, multiyear federal tax credits finally passed after more than a year of narrowly failed attempts, the beginning of a recession and the election of a new president.

“It feels like it’s been three years in one just with all the emotions,” said Michael Butler, CEO of investment bank Cascadia Capital. “A lot of people thought they were having a really good year, then they were hit with the negative economic environment. … So many people are saying ‘let’s just shut down until the end of the year.’”

It is hard to boot up the computer or turn on the television without hearing about the recession, credit crisis, budget deficits, and unemployment rates.  Amazingly, venture capital investment in the clean tech sector reached new levels over the first three quarters of 2008.