Cleantech Group: Global Clean Technology Venture Investment On Course Despite Decline

The Cleantech Group has released preliminary third-quarter 2010 (3Q10) results for clean technology venture investments in North America, Europe, China and India, which totaled $1.53 billion across 152 companies.

Cleantech venture investment was down by 30% compared to the previous quarter ($2.18 billion) and was also 11% lower than the same period a year ago ($1.71 billion). However, through the first three quarters of this year, total investment ($5.73 billion) is already slightly ahead of the full-year 2009 total ($5.69 billion).

The number of deals recorded in the 3Q10 was 152, which is expected to rise once all investors have completed reporting deals and to exceed the second quarter of 2010 (2Q10), when 158 deals were recorded.

The strengthening of corporate commitment to renewable energy and broader cleantech is evident in the strong growth of multinational corporate and U.S. utility investment not only in 3Q10, but also in prior years, according to the report, which also found the following:

– Renewable energy power purchase agreements (PPAs) rose 39% quarter over quarter in 3Q10, as utilities operating in California continued their efforts to meet a 33% renewable portfolio standard (RPS) target by the end of 2020;

– PPAs announced by California utilities such as PG&E and Edison International comprised 87% of the total renewable capacity additions through PPAs announced in 3Q10, as these utilities strive to meet California's RPS target;

– 3Q10 corporate investments in cleantech were in line with the average investments in 2008 to 2009; and

– North America accounted for 61% of the total, while Europe and Israel accounted for 25%, China for 10% and India 4%. North American companies raised $928 million, down 42% from 2Q10 and down 15% from the same period a year ago. A total of 70 disclosed rounds were also down compared to 87 in the previous quarter.

SOURCE: The Cleantech Group

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