Solar power companies see lights in the tunnel

The optimism remains in a lot of Swedish cleantech companies, and solar power companies are no exception. For example, Climatewell is a Swedish cleantech company with a factory in Spain. With new investments in the fabric they are multiplying their production rate. Stockholm based Midsummer is another company using the sun as a direct source of energy, with a fully-automated production technology as their competitive advantage. The method is borrow from the cd/dvd industries. Recently, Midsummer was chosen as one of te most interesting technology companies in Sweden at a venture capital event. They are looking for additional financing to be able to scale up the production to commercial levels next year.

The most spectacular news however might be the articles about Ripasso Energi AB. Ripasso intends to use Stirling engines for solar power generation. The use of the stirling engine is an increasing trend in the solar tech sector, other proponents include Swedish Cleanergy. Ripasso pretends to use an engine earlier used in Swedish submarines. Another interesting aspect is the owner of Ripasso, former Ericsson CEO Sven-Christer Nilsson. According to a recent public funding application, their pretensions are far from modest: "to make Sweden a world leader in the area of Concentrated Solar Power".

The current state of the cleantech sector in Sweden

The state of cleantech investment in Sweden

A brief overview of some current events in the Swedish cleantech investment sector:

• Swedish public foundation Industrifonden ("The Industrial Fund"), has invested USD3 Million in Chromogenics.
  Although the first commercial applications include bike helmet visors, the technology is expected to be used in energy efficient windows.I have earlier mentioned Chromogenics here and here.
  

• The Swedish Energy Agency, Energimyndigheten, recently published their (in Swedish) overview of the Swedish cleantech sectors, with focus on the investment development. THe report can be found here (in Swedish).
  
  
• How can cleantech companies and venture capitalists and other types of investors meet in a beneficial manner? That question was studied by Maria Tunberg from Cranfield University/Swedish Agricultural University. According to the study, TAG could be the answer. TAG stands for TechnologyApproval Group, and is a model that has been working with reasonable success is Great Britain. The TAG models focuses on uniting three different parts of the cleantech market: technology providers and developers looking for capital, possible clients and VC companies. A committee, with representatives from industry and possible, evaluates the market potential of different cleantech companies. In that way, cleantech providers can adapt their products and services according to the needs of the market, and find possible clients. Investors can take part of the results, and be sure to put their money in technology companies and innovators that are sure to have clients and a market potential.
  
  
• Criticism has been forwarded regarding the interest (and hype) about cleantech in Sweden. According to Anders Ocklind from the Swedish fuel cell company Cellkraft, companies that have been hyped recently, especially those picked by Michael Wood. It should be noted however, that this criticism comes from a competitor to the chosen companies. The criticism seems to be focused on the technologies themselves. As earlier stated in this blog, it is true that specific companies and products may be overvalued, and thus failed investments. But that does not necessarily only depend upon technology characteristics. It should be remembered that although the technology is the primary component of the investment opportunity, it is not the only one. Revolutionary application or innovative marketing of a mature technology can give a strategic advantage. Besides, it is a natural consequence of selecting several assets for a conceptual portfolio that some assets will not develop as good as others. By diversifying the portfolio that is not necessarily a problem.
  

Swedish cleantech investors are making moves at home...

.. slowly. And the steps aren't that big.

But things are happening. Recently, Sustainable Technology Partners Nordic invested 15 million SEK in Swebo from Boden, northern Sweden. Swebo is (was) a family owned company, providing plants and equipment for bioenergy generation, with an focus on efficient combustion solutions of non-refined feedstocks.

And the 15th of June, Capman announced that they, together with SEB Venture Capital and Aloe Private Group, will acquire 80% of the shares in KMW, a company delivering medium-to-large scale biomass CHP plants. The company is based in Norrtälje, north of Stockholm.

Both these companies have in common a long tradition, stable development, quality products of proven technologies on a growing international market. They are no brand new "stars", with a hyped technology and high expectations based un uncertain assumptions. The message is quite clear from Swedish cleantech investors, at least so far.
Let's do some predictions. Next targets may include Hotab-Gruppen. 30 years in the combustion market, with turnkey biomass plants for multiple feedstocks. They also have a clear export focus, especially directed towards the Eastern European market. It is family owned, and venture capital influx would facilitate further expansion. Other potential candidates may be Janfire and Petrokraft.

Companies with a shorter history, and expectations rather than a solid sales record, might find it harder to attract domestic investors. That may affect more or less hyped, innovation-based companies. A few examples: Ecoera, Chromogenics and Lignoboost
(Don't get me wrong, I am not judging their products, only their short term possibilities to access Swedish venture capital.)

Another possible future trend may be horizontal integration, takeovers and fusions between the cleantech companies themselves, which was the case when Nibe acquired Iwabo Naturenergi