Energy & Clean Tech Connections (March 2011)
3/23/2011
In the March edition of Energy & Clean Tech Connections, we’ve gathered recent information from a wide variety of sources in an effort to keep you abreast of what’s new in the world of clean energy. We draw your attention to the latest industry developments, news from local governments to Capitol Hill, grant opportunities, and upcoming events.
This month, the Energy & Clean Technology Practice Group would like to recognize Mintz Levin’s clients VantagePoint Venture Partners and EnerNOC and ML Strategies’ client Suniva. VantagePoint recently led a $28.4 million investment in solar company 1366 Technologies, alongside GE and other investors. 1366 Technologies will use funds from the Series B extension to refine its solar wafer technology. The Federal Energy Regulatory Commission (FERC) recently issued a rule requiring wholesale market operators to pay demand response resources the same price that generators are paid when doing so will reduce costs for all customers. FERC’s decision is a positive development for demand response providers, such as EnerNOC, as it validates the role demand response plays in maintaining a reliable and cost effective electric grid. Finally, Suniva was recently named to the Wall Street Journal’s Top 50 Venture-Backed Companies for the second year in a row. This announcement comes just after the Journal ranked Suniva the #2 venture-backed clean tech company in the country.
Also recently, acting upon the significant input of Mintz Levin’s Mark J. Riedy, Stern Brothers’ John May, and Krieg DeVault’s John Kirkwood, the U.S. Department of Agriculture (USDA) published its interim final rule for the 9003 Advanced Biofuel Guaranteed Loan program. The new interim final rule incorporates, among other substantial changes, a unique new bond-financing mechanism, created by Mintz Levin, Stern Brothers, and Krieg DeVault, that should serve to enhance the program’s ability to link investors with capital-constrained advanced biofuel and bioproduct refineries. On March 11, 2011, the USDA issued the Section 9003 fiscal year 2011 Notice of Funds Availability (NOFA).
On Capitol Hill, following last weekend’s natural disaster in Japan and the subsequent nuclear safety issues, U.S. legislators and administration officials have come to the defense of the domestic nuclear industry but have also expressed the need for added caution. The immediate policy ramifications may include delays in negotiations over a clean energy standard and Department of Energy (DOE) loan guarantees for nuclear power plants. The long term impact is more difficult to predict, however. If one were to point to last April’s Gulf of Mexico oil spill as an example, in the weeks and months following, many pieces of legislation were introduced and debated to more stringently regulate the industry, and now House Republicans have returned to their “drill now, drill here” message. Energy Secretary Steven Chu told House appropriators last week that he does not believe the ongoing nuclear power plant crisis in Japan should result in a moratorium on building new nuclear reactors in the United States. He said that the country needs a diversified portfolio of energy resources that includes nuclear energy. However, combined with rising conflict in the Middle East and higher gas prices, the disaster could force debate toward more natural gas, renewable energy, and energy efficiency as near-term solutions.
The clean tech industry showed strong growth in 2010, according to Clean Edge’s recently released Clean Energy Trends 2011 report . The combined solar photovoltaic (PV), wind, and biofuel markets surged 35% to $188.1 billion globally, and U.S.-based venture capital investments in clean tech increased 46% from $3.5 billion in 2009 to $5.1 billion in 2010, according to data provided by the Cleantech Group. The clean tech industry’s percentage of total U.S. venture capital investments continued to rise, accounting for a record 23.2% of total U.S. venture activity in 2010.
In upcoming events, the fifth annual Babson Energy & Environmental Conference will be held on March 31, 2011, on the Babson campus in Wellesley, Massachusetts. This year’s theme is “Entrepreneurship for a Sustainable Future,” and will feature keynotes from high profile executives, entrepreneurs, and experts including ML Strategies’ own David O’Connor, Senior Vice President for Energy & Clean Technology.
We hope that you enjoy this month’s edition of the newsletter. For the most up-to-date information on federal legislation and programs, read the most recent ML Strategies Energy & Environment Update. In addition, read our weekly California Energy & Environment Update, which provides reporting on energy- and environment-related legislative, regulatory, and legal issues in California.
