Every flush equals energy for Enertech Environmental.

The Atlanta-based renewable energy company raised $42 million in a second round of financing for its technology that produces fuel from sewage and other high-moisture wastes.

The round was co-led by Citi's Sustainable Development Investments unit and Masdar Clean Tech Fund.

Also making deals this week, Boston's Ze-gen closed a $2.5 million venture term debt facility with Pinnacle Ventures, and Netherlands-incorporated Cascal filed for an initial public offering on the U.S. markets.

Ze-gen develops advanced gasification technology, while Cascal provides water and wastewater services.

Deals we saw over the past week:

• Boston-based Ze-gen, an advanced gasification technology developer, closed a $2.5 million venture term debt facility with Pinnacle Ventures. The company is planning to build a commercial facility to convert municipal waste streams into synthesis gas and generate low emissions electricity. Ze-gen said construction of the plant is scheduled to begin by the end of 2008.
• Yellowstone Capital Partners of Houston said it's targeting $50 million for its second alternative and renewable energy fund. Both YEV I and YEV II are venture funds focused on early stage cleantech energy investments. YEV I's investments include SolFocus, Heliovolt, Protonex, and Cellex Power.
• VantagePoint Venture Partners plans to raise up to $400 million for its second cleantech fund, according to a regulatory filing. The firm's cleantech portfolio includes Tesla Motors, Project Better Place, Miasole, SolarCentury, and Mascoma.
• Cascal, a Netherlands-incorporated provider of water and wastewater services, filed for an initial public offering on the U.S. markets. The company plans to offer 16.7 million shares at $17 to $19 per share, with 9 million shares being sold by the U.K.'s Biwater, which owns 50 percent of Cascal. J.P. Morgan and Credit Suisse are the joint lead managers on the offering.
• Irvine, Calif.-based BlueFire Ethanol Fuels (OTC: BFRE) closed $15 million in financing for corporate overhead and continued project development with Quercus, an environmentally focused trust. BlueFire is planning to build a facility to produce ethanol using cellulosic wastes diverted from landfills in Southern California.
• BPL Global, a Pittsburgh–based smart grid technology company, acquired Serveron, a Hillsboro, Ore.-based provider of technology and services to monitor electric utility assets. Financial terms were not disclosed. Serveron backers Perseus and Siemens will take BPL board seats as part of the acquisition (see BPL Global acquires Serveron in smart grid deal).
• Atlanta's EnerTech Environmental, a developer of renewable energy facilities that use sewage and other high-moisture wastes, raised $42 million in a second round of funding. Citi Sustainable Development Investments and Masdar Clean Tech Fund co-led the deal, joined by Nimes Capital and CNM. EnerTech previously raised a first round from Paperboy Ventures.
• Deeya Energy, a Fremont, Calif.-based developer of energy storage devices for the load-shifting, uninterruptible power supply and renewable energy markets, raised $15 million in Series B financing. New Enterprise Associates led the round, joined by return investors Draper Fisher Jurvetson, DFJ Element and Blue Run Ventures.

Browse previous deals here.

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