Two funds expand cleantech plans

Some investment funds are seeing the "green" of green investing, allocating more cash for cleantech opportunities this week.

The New York State Common Retirement Fund is committing $500 million to cleantech investments over the next three years, up from the $40 million it currently has invested private equity funds focused on cleantech.

Over on the West Coast, Foundation Capital plans to put $250 million of its sixth fund toward green investments. The fund recently closed with $750 million in capital commitments.

Foundation's cleantech portfolio already includes investments in energy efficiency and intelligence, green building materials and industrial processes, food quality and clean water.

Cleantech will also be getting some cash from Intel (Nasdaq: INTC), Tata Energy Group and CalCef Angel Fund.

Intel Capital has created a $500 million fund dedicated to Chinese technology startups that will include environmentally friendly technologies.

Tang is also targeting China, raising $40 million for green projects in the country.

And CalCEF, founded by the California Clean Energy Fund, plans to focus on seed-stage and early-stage cleantech opportunities. CalCEF did not disclose any dollar amounts.

Rounding out the dealmaking were moves in the solar, geothermal, and other sectors.

Deals we saw over the past week:

• Hayward, Calif.-based OptiSolar, a manufacturer of photovoltaic solar modules, raised Cdn$2.99 million from Toronto's Kensington Global Private Equity Fund. OptiSolar is a fully integrated solar energy company that makes solar modules to produce power from its own planned large scale solar farms. The company is working to build nine 10 megawatt solar farms in southwestern Ontario by 2010.
• Reno, Nev.-based Mariah Power, which makes small-scale wind turbines, reportedly raised $500,000 in funding. Greenhouse Capital Partners and Big Skye Partners are said to have led the financing. The microwind developer raised a $750,000 seed round last year from Sierra Angels and the Keiretsu Forum (see Interesting startups looking for money at the Toronto Cleantech Forum).
• Boise, Idaho's U.S. Geothermal (OTC: UTGH) raised Cdn$10 million in a private placement with an unnamed Canadian underwriter. The company said the net proceeds would be used to complete its recently announced acquisition of the Empire geothermal project in Nevada. U.S. Geothermal said the Canadian underwriter has an option to increase the size of the offering to Cdn$15 million.
• The CalCEF Angel Fund held a first close on its debut fund, which it said would focus on seed-stage and early-stage cleantech opportunities. The fund did not disclose any dollar amounts. The California Clean Energy Fund is the founding limited partner in the Angel Fund. The fund said there are no geographic restrictions on investments, but expects many to be made in California. CalCEF is targeting companies in cleantech sectors including renewable energy, energy efficiency, and energy storage.
• The New York State Common Retirement Fund is committing $500 million to cleantech investments over the next three years. The fund currently has $40 million invested in private equity funds focused on cleantech and renewable energy, with another $440 million in commitments to funds that include cleantech as part of their investment strategies.
• Houston-based Standard Renewable Energy, a provider of energy efficiency and renewable energy solutions, raised $7 million in a Series B round led by the Quercus Trust. Standard Renewable's offerings include energy audits, high-efficiency heating and cooling products and services, spray-foam insulation, solar window film, solar photovoltaic systems, solar thermal water heating systems, and wind energy.
• Intel Capital created a $500 million fund dedicated to Chinese technology startups that will invest in companies involved in wireless broadband, technology, media, telecommunications and environmentally friendly technologies. The firm previously allocated $200 million to its first dedicated China fund in June 2005. The new fund is called Intel Capital China Technology II.
• BPL Global, a Sewickley, Penn.-based smart grid technology company, acquired Florida's Plan B Solutions, a provider of substation automation technology to electric utilities. Financial terms of the deal were not disclosed. BPL has raised over $66 million in venture capital funding from firms including Morgan Stanley Private Equity, GIMV, PA Early Stage, Al-Deera International Communication, Novitas Capital and Perseus.
• San Mateo, Calif.-based eMeter, a maker of advanced metering and smart grid software, raised $12.5 million in new venture capital funding. The round was led by Siemens, with return backers Foundation Capital and DBL Investors also participating. EMeter previously raised approximately $14 million in funding.
• BridgeLux, a Sunnyvale, Calif., provider of LED technology for the solid state lighting market, raised $40 million in Series D funding. The round includes $30 million of equity and a $10 million line of credit. VentureTech Alliance led the funding, joined by return investors DCM, El Dorado Ventures, VantagePoint Venture Partners, Chrysalix Energy Venture Capital, and Harris & Harris Group.
• Foundation Capital closed its sixth fund with $750 million in capital commitments, and said it plans to allocate $250 million of the fund toward cleantech opportunities. Foundation said the rest of the fund would focus on early-stage technology companies. The company's cleantech portfolio currently includes investments in energy efficiency and intelligence, green building materials and industrial processes, food quality and clean water.
• Industri Kapital has agreed to acquire Flabeg, a German supplier of components to the automotive and solar industries, from EquiVest/CBR. Financial terms were not disclosed. Flabeg is a manufacturer of parabolic mirrors used in large-scale concentrated solar power plants. Industri Kapital said that Flabeg is expecting 2008 sales of approximately €150 million.
• First Reserve has invested an undisclosed amount in Kenersys, a wind energy company recently formed by Indian industrial conglomerate Kalyani Group. Kenersys plans to focus on assembling and marketing turbines in Europe and Asia Pacific, as well on turnkey wind farm project development. The company's initial products, 2 MW and 2.5 MW turbines are expected to enter the commercialization phase in the fourth quarter of this year or the first quarter of 2009.
• Tang Energy Group raised $40 million for green projects in China. The group said private equity investors from the U.S. and Europe provided the funding. Tang's current portfolio includes wind turbine rotor blade manufacturing, wind farm development, wind equipment sales, and clean coal projects.

Browse previous deals here.

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