Southern Water leads dealmaking

October 11, 2007 - Exclusive
By David Ehrlich, Cleantech Group

A reported tug of war between JPMorgan Chase & Co. and Goldman Sachs over the U.K.'s Southern Water has left Goldman in the mud.

JPMorgan, teamed up with Australia's Challenger Infrastructure Fund and other funds, grabbed the water and wastewater company from Royal Bank of Scotland for about $2.7 billion.

There were, of course, some solar deals this week as well, with Santa Clara, Calif.-based Innovalight topping the list. The developer of printed solar cells raised $28 million in Series C financing.

But perhaps the most interesting deal was a funding round for the U.K.'s Perpetuum, a company that makes a vibration energy-harvesting generator. Do you strap it to a hyperactive 3 year old for power?

Deals we saw this week:

  • Santa Clara, Calif.-based Innovalight, a developer of silicon ink-based printed solar cells, raised $28 million in Series C financing. The company plans to use the cash to relocate to a new 30,000 square foot manufacturing facility in Sunnyvale, Calif. The funding round was led by Convexa Capital and supported by Scatec. Existing investors Apax Partners, ARCH Venture Partners, Harris & Harris Group, Sevin Rosen Funds and Triton Ventures also participated in the financing.
  • New York's JPMorgan Chase & Co. led a group that bought the U.K.'s Southern Water from Royal Bank of Scotland for about $2.7 billion. JPMorgan partnered with Australia's Challenger Infrastructure Fund and other funds to buy the water and wastewater services company. JPMorgan reportedly beat out a group of bidders led by Goldman Sachs for the water utility.
  • Champaign, Ill.-based SmartSpark Energy Systems raised an undisclosed Series A round from Battery Ventures. The company's technology converts DC power from solar panels into AC power for use in homes and business. Battery partner Jason Matlof will join the SmartSpark board of directors.
  • Solana Beach, Calif.-based Open Energy raised $20 million in a private placement with Quercus Trust. Open Energy offers building-integrated photovoltaic roofing materials for commercial, industrial, and residential customers. The company also holds an exclusive, worldwide license to a solar thermal technology called SunCone CSP.
  • Golden, Colo.'s coal to gas company Luca Technologies raised $20 million in Series B funding. The company is focused on gasification of in-ground coal, shale and oil reserves. Kleiner Perkins, Caufield & Byers and Oxford Bioscience Partners were joined by return investor BASF Venture Capital in this round of financing.
  • MMA Renewable Ventures closed financing commitments for a 15 megawatt photovoltaic installation at Nellis Air Force Base. The financing includes equity investments from Citigroup and Allstate and debt provided by John Hancock Financial Services. MMA will finance, own and operate the 70,000 solar panel system and sell the power to Nellis under a long-term contract. The solar project is expected to be complete later this year.
  • Southampton, U.K.-based Perpetuum raised $10 million in Series B round financing. The round was led by the Environmental Technologies Fund, with return investors Quester and Top Technology also participating in the funding. Perpetuum plans to use the cash to commercialize its vibration energy-harvesting generator. The company's device generates electric current from the energy of low levels of vibrations from things such as standard electric motors common at industrial sites.
  • Vancouver-based Dynamotive Energy Systems completed a $10.5 million equity financing with Quercus Trust, an environmentally oriented fund, and several other private investors. The biomass to biofuel technology company, which has two biofuel plants in Canada and plans for two facilities in Latin America, said it will use the funds to invest in new project initiatives and accelerate its market penetration in the U.S. and Europe.
  • Biofuel developer LS9, based in San Carlos, Calif., closed a $15 million second round of funding. Lightspeed Venture Partners headed up the financing, with additional cash from existing partners Flagship Ventures and Khosla Ventures. The company said it will use the funding to add more employees and commercialize its DesignerBiofuels products.
  • Greenhouse Capital Partners closed its first fund, Greenhouse Capital Partners LP. The oversubscribed $11 million fund targets cleantech and other emerging technologies. Founded in January 2006, Greenhouse Capital provides strategic guidance and seed and Series A financing to companies at their earliest stages of creation.
  • Woburn, Mass.-based Wilson TurboPower, a manufacturer of high efficiency heat exchangers, secured $3 million in funding from new and existing investors, with an option to add another $2 million by the end of the year. The investors were not disclosed. The company plans to use the cash to develop beta units of its ceramic heat exchanger for tests with potential customers.
  • ChromoGenics Sweden raised $6 million in funding, with half of that from new investor Industrifonden of Sweden. The company is developing a glass laminate technology that is said cuts down on the need for air conditioning in buildings and vehicles. ChromoGenics said it will use the new funds to scale up its production capacity.

Browse previous deals here.

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