by David Medoff
| July 23rd 2014
Last year, the global Energy Efficiency sector completed more deals than any of its peer industries, according to Cleantech Group’s i3 platform. The past quarter saw sustained momentum within the sector, so much so that Energy Efficiency led all other industries in total accrued investments, receiving over $520 million, or 18% of all Q1 cleantech fundraising. By all accounts, efficiency software and hardware providers are doing well.
That said, can we really call this news? For the past decade, Energy Efficiency has consistently been at the vanguard of cleantech fundraising, second only to Solar. Moreover, the former has been far more consistent in its fundraising ability than Solar, an industry known for its highs and lows.
So while healthy numbers may be old news for the sector, sub-sector capital allocation is always changing. Energy Efficiency covers a wide swathe of subsectors, from Smart Glass to Efficient HVAC to Cleanweb and so on. Thus, the most recent data enjoin us to ask where, specifically, are the most recent windfalls landing?
View designs and manufactures intelligent glasses that electronically tint in response to sunlight, and in doing so, mitigates reliance on HVAC systems; the company claims energy reductions in …
by Alois Kirner
| July 21st 2014
Against the backdrop of a boom in unconventional fuels, an increasing number of start-ups are developing solutions to both decrease operational risk and reduce the environmental footprint of the Oil and Gas industry.
In the 2012 and 2013 editions of the Global Cleantech 100 report, which sheds light on the world’s top cleantech startups, we took note of the emergence of “cleantech going inside the Oil and Gas industry.” As we embark into the research for our 2014 report, we expect that this innovation cluster will continue to permeate the list of the world’s 100 most promising cleantech companies. Largely linked to the boom in ‘unconventional fuels’ production, startups are increasingly interested to manage the operational and environmental risks of hydraulic fracturing or coal-bed methane and oil sands extraction at different stages of production.
Oil and Gas corporations have been similarly eager to partner with startups that could help them streamline their upstream exploration and production (E&P) businesses. In the past three years, ConocoPhilips has invested more than $33 million in 5 startups that help them increase the performance and safety of their drilling operations (Ziebel, drillMap, LUX Assure, Ciris Energy and Blue Spark Energy). LUX Assure (UK), for …
by Leo Zhang
| July 17th 2014
Cleantech Group recently published a sector whitepaper focused on innovation trends in the Biofuels & Biochemicals sector. In this report, we provided a comprehensive overview of the industry’s value chain, ranging from feedstocks to end products. Despite several setbacks throughout the development of this sector, there are still an increasing number of innovations during the past five years – at both industry and company levels – in an effort to push through some of the scale-up challenges since the sector’s initial rise.
Several themes emerged through our analysis of this sector. First of all, building a streamlined supply chain for year-round production is the first bottleneck to overcome. In essence, there is no single silver bullet solution to feedstock and as a result, we are seeing innovative technologies being developed ranging from crop yield improvements to direct production of fermentable sugars. Looking closely at the latest investment trends, 2013 showed a significant spike in both sum and number of deals to feedstock companies.
Another key trend in the Biofuels & Biochemicals sector centers on the shift from biofuels to biochemicals, where companies are starting to focus on high-margin products due to their pricing premiums. In addition, such shift has also …
by Thomas Roccanova
| July 16th 2014
In the age of up and coming distributed energy resources, one must put energy storage in the conversation. While Solar PV may be the current breadwinner in many people’s minds, recent developments show the future for energy storage is bright. In October 2013, the California Public Utilities Commission approved a new mandate that requires Pacific Gas & Electric, Southern California Edison and San Diego Gas & Electric to add 1.3 gigawatts of energy storage by 2020. Paired with the recently re-established SGIP incentive, energy storage is poised to become a driving force in California in the coming years.
While it is early to attribute too many specific energy storage projects directly to the newly initiated mandate, energy storage companies such as Stem and Green Charge Networks are among the emerging start-ups that are focusing on reducing demand charges through a customer-side, behind-the-meter approach of distributed energy storage. Stem, Green Charge Networks, and Coda Energy have received notable recent funding within the past year, which has helped them develop zero-money down energy storage finance programs in order to incentivize adoption among industrial and commercial customers.
Keeping in tune with the general movement toward automation, Stem and Green Charge Networks…
by Gannon McHenry
| July 10th 2014
Skybox Imaging was acquired by Google last month for $500 million. This purchase ranks as the 10th largest by disclosed deal amount in Google’s history and is a very important acquisition. Skybox, which is based out of Mountain View, CA, has developed a micro-satellite capable of taking highly detailed images of the earth’s surface. They were venture-backed having received a total of $91 million in VC funding from notable firms including Khosla Ventures, Canaan Partners, Northwest Venture Partners and Bessemer Venture Partners. Skybox builds their satellites with off the shelf components, including some traditionally used in the automotive industry. This innovative approach has allowed them to build satellites which are 20x smaller than traditional imaging satellites; at a significantly lower price point. Building smaller satellites not only saves on component cost, it greatly reduces the price to launch an individual satellite (traditional imaging satellites cost upwards of $1 billion to build and launch). The smaller footprint of these satellites will allow Skybox to deploy their initial constellation of units much quicker than traditional satellite imaging companies have been capable of in the past. Skybox deployed their first satellite in November of this past year, and currently …
by Natalie Volpe
| June 26th 2014
This week, a landmark report was released on the devastating and real effects of climate change on business as usual within the United States. (Spoiler alert: Things won’t remain business as usual.) Deviating from the tomes released by the Intergovernmental Panel on Climate Change earlier this year that assert medium to high confidence assurances that climate is changing, this report clearly states the economic risk facing U.S. business resulting from climate change.
Armed with dollar figures supported by a substantiated risk analysis, the report, entitled “Risky Business”, delivered a cautionary message rather than a much needed how-to manual for the business community. The real win, however, were the report authors: Former Mayor Bloomberg, Former Secretary of Treasury Hank Paulsen, and Tom Steyer; an unlikely group of climate advocates from opposing political groups that, in and of itself, amplifies the importance of the present issue.
At this point, however, the “cleantech community” (ostensibly, those interested in how a changing climate necessitates new, sustainable innovation) is well-versed in the latest facts and figures, and now is one step ahead: innovation sourcing. But innovation is all around us, and it’s hard. Companies are asking themselves how they can discover the next ride-sharing …
by M Paschich
| June 18th 2014
Earlier this quarter, ABB announced their technology alliance partnership with Solar Impulse. We spoke with Maxine Ghavi—SVP & Head of the Solar Industry Segment Initiative at ABB—about the nature of this corporate partnership and what she sees lying ahead for the team.
Hello Maxine… Can you tell us the genesis story for the ABB + Solar Impulse partnership?
If you look at ABB and Solar Impulse we share a common ideal, and that is to address the growing energy demand with increased efficiency and minimal environmental impact. Both organizations value innovation, value pushing the envelope on the limits of technology. We also share the cultural characteristics of being Swiss-based companies. We both have novel approaches to solving problems in a responsible way, and endeavor to make significant contributions to the areas of renewable energy and storage. All of these together – our shared visions for technology, innovation and sustainable energy – they set a solid foundation for collaboration and to take these common areas of expertise to the next level.
Yes, that’s quite interesting. How do you fit into this story? Can you share a bit on your background, and what you’re doing at ABB? Also, what do you …
by Gannon McHenry
| June 10th 2014
Precision Agriculture has burst onto the scene as one of the most discussed sectors of 2014. This is due in no small part to the recent commercialization of multiple disruptive technologies. Technologies such as drones, formerly limited to military use, are now being deployed on farms to help greatly increase production. Large corporations and venture investors have begun to notice the immense opportunities involved with mitigating the effects of a changing climate and an ever-growing need for better yields.
Total 2014 Q1 venture investment in companies covered by our Agriculture and Food sector was $230M, over double the amount from 2013 Q1. In a sign of the sector’s increasing momentum, the dollar amount of deals made in 2014 has already eclipsed the total for 2013; so far coming in at $331M. Current deal levels are also set to exceed the record number of investments which occurred last year.
The largest individual rounds of the year have so far occurred in the area of genomics. Arcadia Biosciences, a company focused on the production of genetically engineered hardy crops, closed a $33M funding round in early May. Chromatin, a developer of sorghum seed technologies, received $36M in January from a …
by Sheeraz Haji
| June 6th 2014
You’ve most likely heard the big news: on Monday of this week, the US EPA proposed new rules to reduce carbon dioxide emissions from existing power plants. Since the EPA is using the Clean Air Act—specifically Section 111(d)—as its framework for the proposed regulations, it’s no surprise that these rules focus on a specific pollutant (CO2) emitted by facilities already in operation. In an interesting twist, however, the rules give states significant latitude to figure out how they will reduce their emissions.
Will these new rules drive investment in cleantech? Yes, I believe they will. First a bit of background… while we have seen a number of success stories (e.g., Tesla, SolarCity, Nest, Opower), overall investment in cleantech innovation has declined these past couple of years. According to i3, investment in cleantech declined by 15% from $8.3 billion in 2012 to $7.1 billion in 2013.
When we explore the macro challenges with our clients, we often hear concerns about US policy: “Too much uncertainty”, “there is no national policy” or “policies are prescriptive” are all common refrains. While the new rules are a long way from law, they represent an important step in addressing these …
by M Paschich
| June 5th 2014
WaterSmart Software recently raised nearly $5 million in Series A round of funding: we chat with Peter Yolles, Co-Founder and CEO, about the company, its growing team, the value of data-driven water management, and the future of the water system.
Hi Peter… Can you walk us back to the beginning of WaterSmart Software?
Yes, I’d be glad to tell that story. I’ve been in the water sector for over 20 years, and so when I moved to my first home in 2001 it was very important to me that the home use water efficiently. So, I installed hardware like efficient toilets and other appliances, and at the same time I was very interested in knowing what impact these investments would have and how much money I was saving on my water use. Tracking these savings meant gathering data, which—I thought—meant going online to my local water utility’s website. Surprisingly, I found a page called “Water Consumption History”. Frustratingly, the page said “Under Construction / Check Back Soon”. And so I waited and waited and waited and, after 8 years, nothing changed. Looking back, it makes some sense because, when you think about it, water utilities just don’t have …