The first half of this year has been much slower regarding investments in clean technologies and renewable energy projects, $294 million in the US in Q1 2009, compared to $1,8Bn in Q3 2008. Recently however, investments are increasing, reaching $540 in Q2 '09. A clear sign that the economy is recovering.
The lower activity is not necessarily only a bad thing; vc funds making deeper assessments before committing themselves will make the capital influx into the clean tech sector hopefully reach those who most deserve it, healthy, profitable companies with a feasible expansion plans. This will decrease the risk for creating bubbles. Many good ventures will however suffer, especially if they have not yet reached the commercial stage.
Ideally, increasing cleantech investments will be done with the scrutiny and careful analysis applied during the worst decline.
More in the Mercury and, regarding the Swedish situation, here
måndag 7 september 2009
torsdag 14 maj 2009
Investments continue to pour into cleantech
Despite the fact that investment rate has decreased during the last six months, money continue to pour into cleantech. PowerIT is one of the companies; the may play an important role in increasing the efficiency in the US power grid.
Some observers have called the strong interest in renewable energy and environmental technology a "green bubble". I would argue that while it is definitely probable that some individual companies will not perform as well as expected, and temporary trends may create situations where entire sectors are overpriced, the underlying reasons for investing in cleantech are strong and valid, and many sectors will continue to grow until environmental problems are solved or at least mitigated.
Some observers have called the strong interest in renewable energy and environmental technology a "green bubble". I would argue that while it is definitely probable that some individual companies will not perform as well as expected, and temporary trends may create situations where entire sectors are overpriced, the underlying reasons for investing in cleantech are strong and valid, and many sectors will continue to grow until environmental problems are solved or at least mitigated.
tisdag 31 mars 2009
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 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".
torsdag 12 februari 2009
Wind Power to Increase in Sweden
The 30 largest wind power developers in Sweden are planning to develop wind farms amounting to approximately 18GW in power during next few years. This calculation considers approximately 6000 new towers, generating in total 55 TWh per year.
With increasing possibilities for EU member countries to count emission reductions from projects developed in other Annex I countries, this number may as well increase even further.
Further beneficial factors for the wind power industry are looming at the horizon, through a from a recent Swedish government proposal. According the proposal, bureaucratic obstacles will be removed, and the possibility for wind farm neighbors to appeal court decisions will be reduced.
With increasing possibilities for EU member countries to count emission reductions from projects developed in other Annex I countries, this number may as well increase even further.
Further beneficial factors for the wind power industry are looming at the horizon, through a from a recent Swedish government proposal. According the proposal, bureaucratic obstacles will be removed, and the possibility for wind farm neighbors to appeal court decisions will be reduced.
tisdag 25 november 2008
Recovery through Infrastructure and Cleantech Investments
According to Cleantechies.com, infrastructure and alternative energy will be two areas which Obama's recovery plan will focus on.
There are signs of similiar strategies in other countries. If carried out, this may soften the fall of young cleantech companies even further.
There are signs of similiar strategies in other countries. If carried out, this may soften the fall of young cleantech companies even further.
Morphic Biogas Fuel Cell System
After successful pilot testing, Morphic will no start to market a complete system for biogas-to-hydrogen transformation. The reformer technology comes from their subsidiary Helbio S.A. and generates a hydrogen used in fuel cells from Exergy Fuel Cells, another subsidiary.
Naturally, biogas from waste disposal centres, farms and waste water treatment plants could be upgraded and used directly for heating, power generation or vehicle propulsion; it is not entirely necessary to convert it to hydrogen. But thanks to the conversion, the application is more versatile. The hydrogen can be used wherever fuel cells are necessary.
Read more about it here (in Swedish).
Biogas fuel cell applications, but with a rather different technology, have earlier been discussed here
Naturally, biogas from waste disposal centres, farms and waste water treatment plants could be upgraded and used directly for heating, power generation or vehicle propulsion; it is not entirely necessary to convert it to hydrogen. But thanks to the conversion, the application is more versatile. The hydrogen can be used wherever fuel cells are necessary.
Read more about it here (in Swedish).
Biogas fuel cell applications, but with a rather different technology, have earlier been discussed here
lördag 15 november 2008
Wave Power Competition
WaveRoller and WaveDragon, technologies that have been mentioned earlier in this blog, are far from alone in the quest for efficient utilization of the energy generated by waves and tides.
earth2tech providedes a neat summary of 12 other competitors.
earth2tech providedes a neat summary of 12 other competitors.
lördag 25 oktober 2008
Short term challenges, long term opportunities
No sector is immune to the current financial unrest, and also many cleantech companies will face hard times during the next year or two. And highly leveraged projects, as often is the case with many wind power, may be postponed or cancelled.
Still, there are reasons to believe that the cleantech sector will fare relatively better than other areas. And in the long term, the outlook is still positive. The reasons are several:
In particular, projects and technologies that benefit from public funding will find less problems than others. So will those companies and projects financed by equity rather than debt. The situation is troubling, but there is no need to panic.
Still, there are reasons to believe that the cleantech sector will fare relatively better than other areas. And in the long term, the outlook is still positive. The reasons are several:
- Renewable, domstic energy is a measure to improve national security. It's a long-term necessity independent of the current financial unrest. Public funding will continue to reach the necessary goals.
- The possible physical mechanisms behind climate change are indifferent to a Wall Street crisis. Companies who embrace this fact will act accordingly and invest in renewable energy and related technology as a long term strategic resource. Further on, renewable energy will be a priority for public funding.
- Emerging economies will participate in the global emissions market. Sooner or later, giant economies like China and India need to share the burden and reduce the CO2/$ growth ratio.
- Higher living standards in emerging economies will increase consumer consciousness and the demand for a cleaner near-environment. When you are starving you don't have time to bother about smog or inadequate waste-management, but as conditions improve, these issues will come closer to the top of the agenda. That is good news for companies within these sectors.
- Energy efficient is more important than ever when times are hard and resources scarse.
In particular, projects and technologies that benefit from public funding will find less problems than others. So will those companies and projects financed by equity rather than debt. The situation is troubling, but there is no need to panic.
onsdag 15 oktober 2008
Volvo to resume development of gas vehicles?
Volvo CEO Stephen Odell has only been working for Volvo during a few weeks. According to a recent interview(in Swedish), Volvo may now reconsider their decision to not develop any more gas vehciles.
With their gas vehicles, Volvo had a relatively important part in the promotion of biogas in Sweden during the late 90's and early 00's. During these years the biogas sector developed considerably, with several technology companies starting up as a result. A few years later, Volvo informed about their decision to not develop gas versions of coming models. Until now, perhaps.
With their gas vehicles, Volvo had a relatively important part in the promotion of biogas in Sweden during the late 90's and early 00's. During these years the biogas sector developed considerably, with several technology companies starting up as a result. A few years later, Volvo informed about their decision to not develop gas versions of coming models. Until now, perhaps.
tisdag 14 oktober 2008
Wave Power Already Profitable?
According to a study by Olav Olsen A.S. on behalf of Norwegian Langlee Wavepower, wave power technlogy from Langlee and other companies may already profitable in some parts of Europe such as Great Britain, Ireland and Portugal. The reason for this is the high prices of other types of ocean based energy in these countries.
Langlee, partly (10%) owned by Swedish Borevind, is developing a wave power technology that can exploit the energy relatively small waves.
Langlee, partly (10%) owned by Swedish Borevind, is developing a wave power technology that can exploit the energy relatively small waves.
Publicera inlägg
torsdag 25 september 2008
Cleantech Opportunities in the Eye of the Storm?
The current financial crisis could possibly affect the energy industry in profound ways, according to Wall Street Journal
Although most opportunities may seem risky at this point, for investor with financial soundness and strength now could be a good period to acquire and take over undervalued assets. With banks turning down borrowers, projects could remain undeveloped and innovations left unfinanced.
Speaking of acqusitions, the largest Swedish power company Vattenfall has made an offer on British Eclipse Energy. The offer at £18 per share roughly amounts to £51,5 million. The company has a 250MW combined natural gas and wind power offshore project, on the coast of England, and five land based wind power projects in Wales. Iberdrola and EON are mentioned as other "predators".
Although most opportunities may seem risky at this point, for investor with financial soundness and strength now could be a good period to acquire and take over undervalued assets. With banks turning down borrowers, projects could remain undeveloped and innovations left unfinanced.
Speaking of acqusitions, the largest Swedish power company Vattenfall has made an offer on British Eclipse Energy. The offer at £18 per share roughly amounts to £51,5 million. The company has a 250MW combined natural gas and wind power offshore project, on the coast of England, and five land based wind power projects in Wales. Iberdrola and EON are mentioned as other "predators".
tisdag 16 september 2008
New Swedish cleantech company to promote electric car networks in Sweden
According to its CEO Patrik Nilsson, Sustainable Innovation Sust is "a national centre for energy efficiency in everyday life"
The Swedish company is so far supported by a dozen companies, among them Scania, Vattenfall and Sustainable Technology Partners.
Among the top priority for the company is to develop an infrastructue for electric vehicles in Sweden. Through a pilot project using 50-100 electric vehicles Sust and its partner companies will develop an infrastructure and a paymento model.
This project is interesting considering projects being planned or carried out in Israel, Germany and Denmark.
A mix of efforts to achieve higher transport sustainability is necessary to avoid being restrained to only one or two, potentially vulnerable technologies (such as 1st generation ethanol).
The Swedish company is so far supported by a dozen companies, among them Scania, Vattenfall and Sustainable Technology Partners.
Among the top priority for the company is to develop an infrastructue for electric vehicles in Sweden. Through a pilot project using 50-100 electric vehicles Sust and its partner companies will develop an infrastructure and a paymento model.
This project is interesting considering projects being planned or carried out in Israel, Germany and Denmark.
A mix of efforts to achieve higher transport sustainability is necessary to avoid being restrained to only one or two, potentially vulnerable technologies (such as 1st generation ethanol).
tisdag 12 augusti 2008
IKEA Greentech - a new Swedish cleantech investor
IKEA will invest in Swedish and European cleantech companies, through it's subsidiary IKEA Greentech AB. IKEA prospers from the interesting combination of a excellent distribution network and customer base and a very solid financial position.
In particular, IKEA will invest in cleantech companies with products that benefit it's clients (they amount to 500 000 000), warehouses (270) or suppliers (1500), from the alternative energy and energy efficiency areas.
So what should they focus on? Do the maths, 500 000 000 clients is a very interesting customer base. Hence, finding high-quality products relevant for IKEA's customer should be a top priorirt. Further on, they should be cost-efficient in small scale. An area that satisfies both of these conditions is energy efficiency (including water and material efficency). I would say that where the largest potential is to be found.
Small-scale energy generation using energy from the sun (solar power, solar heating and wind power) does fit with the first description. Small-scale energy generation is getting increasingly popular whit high petroleum prices, and solar insolation is favourable in many of the countries where IKEA is present. However, as discussed earlier, the efficiency of these installations is often far lower than medium- to large scale plants.
Considering what may be useful for their suppliers and warehouses, other areas may be interesting as well.
In particular, IKEA will invest in cleantech companies with products that benefit it's clients (they amount to 500 000 000), warehouses (270) or suppliers (1500), from the alternative energy and energy efficiency areas.
So what should they focus on? Do the maths, 500 000 000 clients is a very interesting customer base. Hence, finding high-quality products relevant for IKEA's customer should be a top priorirt. Further on, they should be cost-efficient in small scale. An area that satisfies both of these conditions is energy efficiency (including water and material efficency). I would say that where the largest potential is to be found.
Small-scale energy generation using energy from the sun (solar power, solar heating and wind power) does fit with the first description. Small-scale energy generation is getting increasingly popular whit high petroleum prices, and solar insolation is favourable in many of the countries where IKEA is present. However, as discussed earlier, the efficiency of these installations is often far lower than medium- to large scale plants.
Considering what may be useful for their suppliers and warehouses, other areas may be interesting as well.
fredag 25 juli 2008
Sweden has got the largest share of renewable energy in the European Union
Sweden the top nation in the European Union regarding the share of energy coming from renewable sources, according to a recent study by the Swedish Energy Agency. Hydropower and forrest-based bioenergy are two contributing factors. 43,3% of the energy comes from renewable, up from 33,9% in 1990. 52% of the power supply is generated by renewable sources. The largest share is reached in the power sector, followed by the paper & pulp industries and the district heating sector. According to the study, the largest room for improvements regards the transport sector, which only represents 1% of the renewable energy use in Sweden.
Other countries in Scandinavia, while non-members of the European Union, generate an ever higher share of their energy from renewable sources. Iceland is the foremost example, with 73% of total primary energy supply and 100% of power production comes from renewable sources. Further on, an impressive 98% of Norwegian power supply comes from hydropower.
There are certainly many opportunities to increase the share of renewable energy in Sweden even further. Many medium-sized to large initiatives are under way. Large wind farms are being developed throughout the country for power production, and many medium-scale biogas plants are planned in southern and central Sweden. The biogas sector is already extensive in southern Sweden and in the Stockholm area. Further it is fairly within reach to increase the hydro power output by increasing and optimizing the generation the rivers already being used, and to develop low-temperature geothermal energy systems for heating. And as capital costs decrease, solar power and wave power will also be feasible options, although it would take many years for these types of energy to constitute an important part of the Swedish energy sector.
Other countries in Scandinavia, while non-members of the European Union, generate an ever higher share of their energy from renewable sources. Iceland is the foremost example, with 73% of total primary energy supply and 100% of power production comes from renewable sources. Further on, an impressive 98% of Norwegian power supply comes from hydropower.
There are certainly many opportunities to increase the share of renewable energy in Sweden even further. Many medium-sized to large initiatives are under way. Large wind farms are being developed throughout the country for power production, and many medium-scale biogas plants are planned in southern and central Sweden. The biogas sector is already extensive in southern Sweden and in the Stockholm area. Further it is fairly within reach to increase the hydro power output by increasing and optimizing the generation the rivers already being used, and to develop low-temperature geothermal energy systems for heating. And as capital costs decrease, solar power and wave power will also be feasible options, although it would take many years for these types of energy to constitute an important part of the Swedish energy sector.
onsdag 23 juli 2008
Fortum to invest US$ 10 million in cleantech venture capital fund
Finnish energy consortium will invest US$10 million in the Canadian cleantech fund Chrysalix Clean Energy Fund.
The investment portfolio of Chrysalix includes solar power, fusion power research and fuel cell technology. More investemnts are being evaluated.
The purpose of these investment activities at Fortum is said to be dual; to gain strategic insight in new energy technology and to receive sound financial returns.
Investments in new clean technology will be made both internally and externally. Through enhanced R&D activities Fortum hope to gain long term competitive advantages.
Read more about it here.
The investment portfolio of Chrysalix includes solar power, fusion power research and fuel cell technology. More investemnts are being evaluated.
The purpose of these investment activities at Fortum is said to be dual; to gain strategic insight in new energy technology and to receive sound financial returns.
Investments in new clean technology will be made both internally and externally. Through enhanced R&D activities Fortum hope to gain long term competitive advantages.
Read more about it here.
onsdag 4 juni 2008
Interesting IT solution for fuel efficiency
Swedish company Blueflow Technologies has developed a technology for informing boat operators on fuel combination and speed. With simple additions to the boat, and with a wireless connection, it is possible to display the information on a cell phone or laptop computer.
Using this information it is easier for the boat owner to choose speeds with higher fuel efficiency. With soaring oil prices, investments in technology like these pay off in even shorter periods. Further on, BlueFlow are sure to find a strong domestic market as well, Sweden is the country with the most leisure boats per capita.
Check it out here
Using this information it is easier for the boat owner to choose speeds with higher fuel efficiency. With soaring oil prices, investments in technology like these pay off in even shorter periods. Further on, BlueFlow are sure to find a strong domestic market as well, Sweden is the country with the most leisure boats per capita.
Check it out here
onsdag 28 maj 2008
Lignoboost aqcuired byt Metso Power
Lignoboost and their predecessors have during almost a decade developed a promising technology to produce biofuels from black-liquor a byproduct from the pulp industry. Now they are taken over by Finnish group Metso.
I have earlier mentioned them regarding my skepticism about some ability to attract Swedish VC. Well, at least they got aqcuired by a large group of companies, that already produce technology with the same target market. That will open up many opportunities for Lignoboost.
It will be interesting to see however, if politicians, public servants and institutional investors will take this as another example of the Swedish cleantech "brain-drain": the inability of Swedish cleantech companies to attract national investors, and the eventual take-over from foreign companies (Solibro being a high-profiled example). Further on, would it is interesting to question wether this is a problem or not.
I have earlier mentioned them regarding my skepticism about some ability to attract Swedish VC. Well, at least they got aqcuired by a large group of companies, that already produce technology with the same target market. That will open up many opportunities for Lignoboost.
It will be interesting to see however, if politicians, public servants and institutional investors will take this as another example of the Swedish cleantech "brain-drain": the inability of Swedish cleantech companies to attract national investors, and the eventual take-over from foreign companies (Solibro being a high-profiled example). Further on, would it is interesting to question wether this is a problem or not.
torsdag 15 maj 2008
Hemmamarknaden för biogasteknik
Biogasprojekt får en tredjedel av KLIMP-stödet, rapporterar Ny Teknik.
Detta är mycket glädjande, eftersom det är det mest klimateffektiva biobränslet som existerar på kommersiell basis. Detta är inte främst genom högt energivärde i gasen (som i ej uppgraderad rågas endast uppnår 55 % - 65 % av energivärdet hos naturgas), utan för att kontrollerad rötning väldigt ofta ersätter alternativa behandlingssätt där avfallet spontanrötas och släpper utan metan till atmosfären. Som bekant är metan som växthusgas c:a 20 gånger mer potent än koldioxid. Att KLIMP-pengar hamnar i biogasprojekt är därför ett effektivt användande av pengarna. Det är givetvis också logiskt tillfredställande att man utnyttjar avfall som en resurs och inte som skräp.
Ett antal projekt planeras runt om i landet
En stark hemmamarknad gynnar våra inhemska biogasföretag, som de senaste åren blivit några fler, i form av företag som Scandinavian Biogas och Swedish Biogas International. De viktigaste utrustningsföretagen kommer däremot från Tyskland. Här är några av de främsta svenska företagen:
Läckeby Water Group
Malmberg Water
Sweco VIAK
Biosystem
Scandinavian Biogas
Swedish Biogas International
Bioprocess Control
Detta är mycket glädjande, eftersom det är det mest klimateffektiva biobränslet som existerar på kommersiell basis. Detta är inte främst genom högt energivärde i gasen (som i ej uppgraderad rågas endast uppnår 55 % - 65 % av energivärdet hos naturgas), utan för att kontrollerad rötning väldigt ofta ersätter alternativa behandlingssätt där avfallet spontanrötas och släpper utan metan till atmosfären. Som bekant är metan som växthusgas c:a 20 gånger mer potent än koldioxid. Att KLIMP-pengar hamnar i biogasprojekt är därför ett effektivt användande av pengarna. Det är givetvis också logiskt tillfredställande att man utnyttjar avfall som en resurs och inte som skräp.
Ett antal projekt planeras runt om i landet
En stark hemmamarknad gynnar våra inhemska biogasföretag, som de senaste åren blivit några fler, i form av företag som Scandinavian Biogas och Swedish Biogas International. De viktigaste utrustningsföretagen kommer däremot från Tyskland. Här är några av de främsta svenska företagen:
Läckeby Water Group
Malmberg Water
Sweco VIAK
Biosystem
Scandinavian Biogas
Swedish Biogas International
Bioprocess Control
onsdag 14 maj 2008
Quote of the day
"Don't get the idea that I've turned green. My business is making money, and I think this is going to make a lot of money."-- T. Boone Pickens in the Guardian
Takeover king & oil baron T-Boone is planning a $10bn, 4GW wind farm in Texas, which would be the world's largest. He still thinks that wind turbines are ugly. Despite the merits of wind power, I do understand that many find wind turbines as not appealing. It would be far less visually obtrusive to generate power from waste heat (which is possible with the Opcon Power box).
By the way, Boone's biography is entertaining and can be find at bargain prices.
måndag 12 maj 2008
The state of the Swedish cleantech market
According to E24 (in Swedish), Swedish cleantech companies face a dismal outlook, with only 3 out of 14 publicly traded companies making a profit last year.
A few observations could be made however. First of all, these numbers should not be taken as a representation of the whole cleantech market. Many successful cleantech companies are not traded on the public stock market. It is also important to remember that many companies not mentioned in the article work with cleantech in one way or another, but only as a part of their product or service portfolio. For instance: Sweco (consulting), ABB (energy efficiency, etc) and Alfa Laval (biofuel equipment, etc). Further on, in the long term several of the companies mentioned in the article face growing demand for their products.
To invest in a company that is yet to make a profit requires excellent market insight and at least a basic technical understanding of the products being offered. And even more so than in the case of investing young but profitable companies. Rome wasn't built in a day and many cleantech companies will need several years of R&D before being able to launch a competitive product. Ambitious innovators may become early leaders in developing markets. But without an initial knowledge, the outside investor might as well bring her or his money to a racecourse, where the gambling is equally risky but more exciting.
A few observations could be made however. First of all, these numbers should not be taken as a representation of the whole cleantech market. Many successful cleantech companies are not traded on the public stock market. It is also important to remember that many companies not mentioned in the article work with cleantech in one way or another, but only as a part of their product or service portfolio. For instance: Sweco (consulting), ABB (energy efficiency, etc) and Alfa Laval (biofuel equipment, etc). Further on, in the long term several of the companies mentioned in the article face growing demand for their products.
To invest in a company that is yet to make a profit requires excellent market insight and at least a basic technical understanding of the products being offered. And even more so than in the case of investing young but profitable companies. Rome wasn't built in a day and many cleantech companies will need several years of R&D before being able to launch a competitive product. Ambitious innovators may become early leaders in developing markets. But without an initial knowledge, the outside investor might as well bring her or his money to a racecourse, where the gambling is equally risky but more exciting.
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