Energy & Clean Tech Connections (April 2011)
4/28/2011
In the April 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 congratulate Mintz Levin’s client MTPV and ML Strategies’ clients Zipcar and Digital Lumens. MTPV Corporation is committed to the research, development, and commercialization of micron-gap thermal photovoltaics (MTPV), a new technology that offers a breakthrough in the solid-state conversion of heat to electricity. Its breakthrough method for converting heat to electricity using semiconductor chips recently earned them recognition as Best Venture at the WBT Innovation Marketplace’s ninth annual event. Also this month, Cambridge-based car-sharing firm, Zipcar, Inc. raised $174.3 million in its initial public offering and Boston-based Digital Lumens, which provides highly efficient LED lighting systems for industrial buildings, raised $10 million in a Series B financing.
On Capitol Hill, budgetary debates continue despite the passage of a spending plan to cover the rest of fiscal year (FY) 2011. In his address last week, President Obama said that his budget priorities for FY 2012 include cutting $4 billion in tax breaks for the oil and gas industry and increasing spending on clean energy research. The President has pushed his agenda as a jobs creator, expressing frustration with Republican budget proposals that include 70% reductions in clean energy spending. A Republican counterproposal is being coordinated by Sen. Rob Portman (R-OH) and will be formally announced in May. This plan will include new loans for nuclear power, lifting outer continental shelf drilling prohibits, and expanding exploration of federal lands for energy sources.
Despite high-level partisan discord over energy funding, the Department of Energy (DOE) this month unveiled several programs to support continued innovation in energy technology. On April 20, Energy Secretary Steven Chu announced that up to $130 million in funding is available through the Advanced Research Projects Agency – Energy to develop new technologies in five new program areas. These new programs target rare earth alternatives, breakthroughs in biofuels, thermal storage, grid controls, and solar power electronics. In late March, Secretary Chu opened the “America’s Next Top Energy Innovator” challenge, which will lower hurdles to commercializing innovation in an effort to double the number of start-up companies coming out of work done at U.S. federal laboratories.
New research by the Pew Environment Group reports that global clean energy finance and investment grew significantly in 2010 to $243 billion, a 30% increase from the previous year. China consolidated its position atop the Pew renewable investment rankings with $54.4 billion in spending—a 39% rise. Germany invested $41.2 billion and took the second place ranking from the United States, which invested $34 billion. Overtaking the United States in terms of installed renewable capacity, China also became the world’s largest manufacturer of wind turbines and solar modules.
Global venture investment showed particularly strong growth in the first three months of 2011. Venture investors during this period committed a total of $7.5 billion in 738 deals, driven by sharply increased funding for clean tech and Internet startups according to a report by industry tracker CB Insights. Specifically, global solar venture capital funding nearly tripled during this period with 25 solar venture capital deals worth $658 million, with 87% of these made by U.S. venture capitalists and 89% of the recipient solar companies based in the United States as well.
In upcoming events, Lazard Capital Markets will host its 3rd annual Alternative Energy Investor Summit, on June 1 and 2, 2011, to address strategic issues facing the renewable and energy efficiency and storage industries. Tom Burton, Chair of Mintz Levin’s Energy & Clean Technology Practice Group, will be participating in a panel entitled “Sustaining Convergence of Alternative Energy and Energy Industry, What Does it Take?” Tom will also be moderating a panel at the upcoming “Connecting Companies and Capital Series: Driving Job Creation Through Innovation,” hosted by Accounting Management Solutions, IBM, and MassEcon on May 11, 2011.
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 California Energy & Environment Update, which provides reporting on energy- and environment-related legislative, regulatory, and legal issues in California.
