Weekly Investor Round Up
04/03/2009
SustainableBusiness.com News
Venture investments in cleantech fell 41% in 1Q09, down from the previous quarter to a total of $1 billion, according to preliminary results for activity in North America, Europe, China and India. Investments went to 82 companies, according to figures released by analysts in the Cleantech Group. Venture investments have now declined for two consecutive quarters since peaking at $2.6 billion in 3Q08. The average size of funding rounds has contracted from $20 million in 3Q08 to $ 12.3 million in 1Q09.
Despite decreased funding, Atlantis Resources Corporation a developer of electricity-generating tidal current turbines, has completed $14 million in fundraising. New investor, Statkraft--a Norwegian-based generator of renewable energy--led the investment round, joining existing shareholders, including Morgan Stanley (NYSE: MS). Atlantis is currently working on a project to power a datacentre using tidal current turbines deployed off the coast of Scotland.
Atlanta, Georgia-based solar startup Suniva and Jacoby Development, Inc. announced they will collaborate to add solar power to the redevelopment of the former Hapeville Ford Plant adjacent to Hartsfield-Jackson Atlanta International Airport. Plans include a 10-megawatt (MW) of solar power system at the development and the companies said they are looking for other possible developments. Jacoby is the developer of Atlantic Station--a massive in-town redevelopment in Atlanta that has been heralded for its smart growth design and sustainability measures.
Norwegian solar group Renewable Energy Corporation (REC.OL) announced the startup of production at its new polysilicon plant in Washington State. And then promptly announced a shutdown just days later. The facility was hoping to ramp up to full production capacity by 3Q09, but the company said "instability in certain operating parameters" caused the shutdown. The company said it did not know how long it would take to "identify corrective actions."
Two of the largest Japanese electronics companies, Toshiba (6502.T) and Sharp (6753.T), are considering working together in the solar sector. Toshiba in January announced the creation of a solar division. The company does not make solar modules, but intends to focus on system installations. A Toshiba spokeswoman said the company is considering procuring solar panels from Sharp. In return, Toshiba might supply distribution systems to Sharp, according to one Japanese newspaper.
The world's smallest and cheapest car, produced by Tata Motors (NYSE: TTM), is now on sale in India. The tiny vehicle, with a price tag of equivalent to about $2,000 is significantly cheaper than any other entry level vehicle in India. The vehicle is expected to hugely increase drivership, congestion and fuel use in the developing nation. However, the vehicle gets remarkable gas mileage, according to company figures that state averages of 52 miles per gallon in the city and 61 mpg on the highway. An upgraded version of the vehicle is planned for release in Europe in 2011 at an expected cost of less than $5000. That model is expected to achieve 67 mpg fuel efficiency. And Tata previously announced plans to produce an electric version of the Nano in Norway.
On the other end of the spectrum, premium electric carmaker Tesla Motors unveiled its second vehicle, a four-door sedan that sells for about $58,000. The company said it has already taken orders for more than 500 of the vehicles, called the Model S. Tesla said the car can carry five adult passengers and travel up to 300 miles per charge. The car has trunk space under both the front and back hoods, and using a 480V outlet, it can be charged in only 45 minutes, the company said. Tesla expects to receive a DOE grant to build an assembly plant for the vehicle in California.
Wind power developer Invenergy Wind announced that GE (NYSE: GE) will supply 74 wind turbines for a 110 MW expansion of a wind farm in LaSalle County, Ill. The companies offered no timeline or finanical details for the expansion project; however, project development news from the U.S. wind sector has been all but non-existent over the last two months. So the release might be a positive indication that project financing is returning to the industy, which ground to a halt with the economic downturn. The companies said they expect to take advantage of the tax provisions in the federal stimulus package passed in February.