Corporate giants push into clean-tech venture investing
Buoyed by long-term trends, venture investing in clean-tech companies hit a record last quarter as the participation of corporate giants began to make a more pronounced impact.
Ernst & Young on Monday published a report based on data from Dow Jones VentureOne which shows that clean-tech venture investing shot up to $961.7 million in the second quarter.
That's a 41 percent increase from the first quarter of this year and an 83 percent jump compared to the second quarter last year.
Clean tech, or green tech, is one of the most active--or some argue overheated--areas in venture investing, which was down 8 percent overall, according to the study.
The big numbers lie in the nature of energy-related investments.
There were three deals over $100 million in the quarter, including three solar investments: solar thermal power plant makers eSolar and BrightSource, as well as SunEdison, which does financing and installation of large solar arrays.
Energy efficiency was another strong category at $188 million in the second quarter. Companies that do efficiency products like LED lighting and smart grids tend to be less capital-intensive than biofuels, which was down 44 percent from the previous quarter, the study's authors said.
An interesting data point from the numbers is that later-stage deals accounted for 39 percent of the transactions. That means there were fewer seed fundings, a sign that start-ups are beginning to move closer to commercialization.
Meanwhile, the Dow Jones VentureOne study notes the growing presence of large corporations among the venture capitalists and start-ups.
"Strategic investments," where a large corporation partners with a smaller firm, are becoming more common.
An incumbent fuel company can invest in a biofuels start-up, for example, to get access to the technology and diversify its fuels mix. In another example, utility Duke Energy purchased a wind power developer.
The report notes that companies like Shell, Chevron, Danisco, Genencor, and DuPont have committed large sums of money to clean tech as part of their corporate strategies or to hedge against rising energy prices.
"In a challenging market, investment in the clean-tech sector remains strong because these companies provide cross-sector solutions to economic and environmental challenges," Joseph Muscat, Americas Director of Cleantech and Venture Capital, Ernst & Young, said a statement.
Martin LaMonica is a senior writer for CNET's Green Tech blog. He started at CNET News in 2002, covering IT and Web development. Before that, he was executive editor at IT publication InfoWorld. E-mail Martin. 
NHTSA Hearings 8/4/08
I just returned from the NHTSA hearings held today (August 4, 2008) in Washington D.C., regarding the Draft Environmental Impact Statement (DEIS) for NEW Corporate Average Fuel Economy standards (CAFÉ) for years 2011-2015.
IMPORTANT FACTS: You will not believe what you are reading.
1) The 414 pages DEIS analysis was based on an average gasoline price of USD $2.16/gallon for 2011-2020. A calculation approved by the NHTSA administrators/managers. Would you believe it???????????
2) The new CAFÉ rules were also established, negotiated and pre-approved by the NHTSA?s management along with the influence of domestic automotive companies and their lobbyists. We have now established fuel standards for 2011-2020 that are presently met throughout the rest of the Western world (see elow)
As one guest speaker said today ?are they on another planet??
NHTSA ?NEW Fuel Standards? (2011-2015) decision:
Automobiles are to achieve 31.2 mpg by 2011 and 35.7 mpg by 2015. Light trucks are to achieve 25 mpg by 2011, and 28.6 mpg by 2015.
The NTHSA is also setting a goal of 35 mpg on average for 2020.
America needs to know:
The European Union is currently establishing standards, with a goal of reaching 48.9 miles per gallon for new passenger vehicles as early as 2012. The current EU standard already requires more than 40 miles per gallon about 15% higher than the U.S. goal set for 12 years from now.
Japan currently has a standard of about 40 miles per gallon. Japan aims to further improve fuel efficiency by 17% by 2015, reaching 46.9 miles per gallon.
China has a current average of slightly under 35 miles per gallon. Chinese fuel standards are on target to reach the government?s goal of 35.8 miles per gallon by 2009. China will not only meet, but exceed, the goal just established by the United States for 2020 ? more than a full decade earlier.
Australia is targeting 34.4 miles per gallon by 2010.
Canada is targeting 34.1 miles per gallon by 2010.
Under the current administration, purchasing an electric vehicle is becoming more of a necessity rather than an alternative.
BG Automotive Group, Ltd.
http://www.BGelectricCars.com