cleantech.com
The Cleantech Group, founders of the cleantech sector and providers of leading global market research, events and advisory services for the cleantech ecosystem, along with Deloitte, which provides audit, tax, consulting and financial advisory services to cleantech companies, today released preliminary 1Q 2010 results for clean technology venture investments in North America, Europe, China and India, totaling $1.9 billion across 180 companies.
Cleantech venture investment was up 29% from the previous quarter and up 83% from the same period a year ago. The number of deals recorded in 1Q 2010 represents a new record total, edging ahead of the previous high set in 4Q09 (165 deals).
“The bounce back in venture investment from lows in early 2009 has continued, with the first three months of 2010 representing the strongest start to a year we have ever recorded,” said Sheeraz Haji, President of Cleantech Group. “Key to the growth has been increasing interest in a broader range of cleantech themes, such as smart mobility and resource efficiency, which are now taking over from the historically dominant renewable energy sector.”
Growth in cleantech venture investment was matched by new investment from utilities and corporations. Total capacity additions announced by utilities increased in 1Q10* compared to 4Q09, as government incentives spurred spending on the part of companies. In the U.S., Wind and Solar PV remained the most attractive energy sources for utilities due to extended tax credits, while utilities also focused on smart grid projects boosted by significant federal grants, underscored by Florida Power & Light Company, Duke Energy and CenterPoint Energy each receiving $200 million grants from the U.S. Department of Energy.
In the corporate space, direct investments announced during 1Q10* increased by 140 percent quarter over quarter compared to 4Q09, primarily by energy and consumer and industrial products companies. Significant investments in biomass and wind projects were announced by Royal Dutch Shell, General Motors and Valero Energy. Solar PV, Wind and Smart Grid continue to be attractive sectors for top utilities and corporations looking to invest in clean technologies.
“Major utilities are focusing on increasing direct investment in alternative energy generation and smart grid projects due to favorable government incentives and improved market conditions as they work to reduce their carbon exposure and comply with renewable portfolio standards,” said Scott Smith, partner, Deloitte & Touche LLP and clean tech leader in the United States. “From a corporate perspective, companies continue to invest and integrate cleantech to improve energy efficiency and reduce carbon emissions in order to reduce costs, mitigate energy price volatility risk, and comply with existing and pending regulations around carbon and climate change risk disclosure.”
* preliminary 1Q10 data through 3/17/10
