Governments dole out cash for cleantech

They don't just build roads and collect taxes anymore. Nowadays, governments around the world are investing in cleantech.

A big chunk of cash came this week from the U.S., the U.K. and Japan via a World Bank plan to raise at least $5.5 billion for climate change funds.

The bank said the cash would be used to help poor nations use cleantech to mitigate the impact of climate change. The bank expects to be able to raise the money by the fall.

Abu Dhabi's Masdar also make new moves in the sector this week, announcing plans to put $2 billion into thin-film solar.

Masdar said the cash would initially be used to fund the development of two manufacturing facilities in Germany and Abu Dhabi (see Masdar getting into thin film solar business).

In the U.S., the Department of Energy is making up to $130 million available for the development and use of fuel cells for automotive, stationary, and portable power applications (see U.S. DOE to put $130M into advanced fuel cells).

Cash is also coming in from Ireland's Sustainable Energy Ireland program, which has boosted the number of companies it plans to invest in to 14, up from four.

Canada was also busy this week, with Delaware, Ontario-based Stemergy Renewable Fibre Technologies pulling in $3.3 million from the Ontario government.

And Sycamore Ventures has teamed up with China to launch a $1 billion Chinese green investment fund.

The Chinese government is expected to put $100 million into the China GreenStar fund, with most of the fund focusing on China, but also looking at other Asian regions including India.

Deals we saw over the past week:

• Laser Light Engines, a Stratham, N.H.-based developer of a digital light source for movie theaters has reportedly raised $5 million in Series A funding. Investors are said to include Braemar Energy Ventures and Harris & Harris Group.
• Sonoma, Calif.-based Sapphire Energy, a company that is developing crude oil out of algae, raised over $50 million in venture capital funding. Backers include Arch Venture Partners, Venrock and the Wellcome Trust.
• Honolulu-based solar thermal developer Sopogy reportedly raised $9.1 million in funding. Investors are said to include Ohana Holdings, Bethel Tech Holdings, Energy Industries Holdings, Kolohala Holdings, Black River Asset Management and Henk Rogers.
• Abu Dhabi's Masdar announced that it would invest $2 billion in thin-film solar, with plans to initially fund the development of two manufacturing facilities. The first one, in Erfurt, Germany, is expected to be operational by the third quarter of 2009, with a second facility in Abu Dhabi scheduled to start production by the second quarter of 2010.
• Scotland's Advanced Microwave Technologies received £600,000 in angel funding from Highland Venture Capital in partnership with Scottish Enterprise's Scottish Co-investment Fund. Advanced Microwave Technologies is developing a system for treating, at source, blood waste from abattoirs, which Scottish Enterprise said could offer huge savings in waste disposal costs. Advanced Microwave plans to test its system at an abattoir in Scotland later this year, with full commercial production expected to start in six to nine months.
• Swiss renewable energy group EnergyMixx Holding acquired a 30 percent stake in solar photovoltaic systems producer HelioDynamics from Low Carbon Accelerator in an equity for shares transaction valued at £2.93 million. EnergyMixx acquired Low Carbon Accelerator's entire shareholding in HelioDynamics in the deal. EnergyMixx will become one of the main customers for HelioDynamics' solar systems, taking on responsibility for funding and developing the products through to market.
• Sustainable Energy Ireland has expanded its incubator program for emerging green businesses in the sustainable energy sector. The government funded program said it plans to hand out cash to an additional 10 high potential companies, bringing the number of businesses funded under the program to 14. The grants are for a maximum €22,000 per year for a two-year term.
• London-based Rapid Action Packaging raised £4 million from the Ludgate Environmental Fund. Rapid Action specializes in the design, manufacture and supply of ergonomic, cost effective and environmentally responsible packaging systems. Ludgate said the funds would be used by Rapid Action to refinance loan capital and to accelerate the company's growth, with a focus on international business.
• The U.S. Department of Energy announced that it plans to invest up to $130 million in advanced fuel cell technology. The DOE said the cash would go toward the development and use of fuel cells for automotive, stationary, and portable power applications. With a minimum 20 percent private sector cost share for the research and development projects and a minimum 50 percent applicant cost share for the demonstration projects, the DOE said the total government and private sector investment under this funding opportunity could exceed $170 million.
• The World Bank plans to raise at least $5.5 billion with help from the U.S., the U.K. and Japan this year for climate change funds. The bank said the cash would be used to help poor nations use cleantech to mitigate the impact of climate change. The bank expects to be able to raise the money by the fall.
• Wuxi, China-based Suntech Power Holdings (NYSE: STP) acquired a minority stake in Yangzhou, China, solar wafer maker Shunda Holdings for $98.9 million. Suntech purchased the stake from Actis, a private equity investor, and the Waichun Investment Fund. Suntech also announced a definitive 13 year silicon wafer supply agreement with Shunda. Under the terms of the deal, Shunda will supply Suntech with 7 gigawatts of silicon wafers from 2008 to 2020 (see Suntech grabs stake in solar wafer maker Shunda).
• SunEdison, a Beltsville, Md.-based solar energy services provider, raised $131 million in private equity funding and secured $30 million in debt financing. Investors include Greylock Partners, HSH Nordbank, Applied Ventures, Black River Commodity Clean Energy Investment Fund, MissionPoint Capital Partner, and Allco Renewable Energy.
• Adlington, England-based Fairport Engineering Group announced a strategic investment by affiliates of ArcLight Capital Partners in two of its group subsidiaries. The financial terms of the investment were not disclosed, but Fairport said ArcLight would become a significant shareholder. The subsidiaries are Orchid and Fairport Engineering Ltd. Orchid processes municipal and commercial waste to produce a refined biofuel product and various recyclable materials. Fairport Engineering Ltd. is a project engineering, design and management company.
• Sacramento, Calif.-based Pacific Ethanol (Nasdaq: PEIX) raised $34.25 million in financings, mostly from institutional investors. Company insiders purchased shares and warrants worth $5.75 million, with institutional investors buying shares and warrants worth $28.5 million.
• Delaware, Ontario-based Stemergy Renewable Fibre Technologies pulled in $3.3 million from the Ontario government to support the company's scale up of its BioFibeRefinery technology. Stemergy said the total project budget will be $10 million with the balance coming from financing partners. The company is developing technology for making biofiber and biomaterials from plants such as hemp and flax.
• Plainview, N.Y.-based Veeco Instruments, which makes precision manufacturing equipment, acquired Mill Lane Engineering, a privately held maker of solar panel components, for $11 million. Veeco said it could make additional payments if Mill Lane meets certain order, sales and profit milestones. Veeco said the deal expands its thin-film solar equipment product line.
• Global investment firm Sycamore Ventures announced the launch of a $1 billion Chinese green investment fund, with China's central government coming on board as a partner. China is expected to put $100 million into the China GreenStar fund. Most of the fund will focus on China, but it will also look at other Asian regions including India.

Browse previous deals here.

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