Market welcomes cleantech

Following a dry quarter for venture-backed initial public offerings, a share sale from San Leandro, Calif.-based Energy Recovery (Nasdaq: ERII), which makes energy recovery devices for the water desalination industry, seemed to quench investors' thirst.

The company's shares hit a high of $11 on its first day on the market, after pricing its offering of 14 million shares at $8.50 per share, near the top of an expected $7 to $9 price range.

Energy Recovery was trading at $10 in early morning action today.

Founded in 1992, the company is backed by two Norwegian investment groups: Arvarius, which holds 28.9 percent, and Caprice, which holds 11.3 percent.

Energy Recovery plans to use its net proceeds from the IPO for working capital and other general corporate purposes, including to finance its growth, develop new products and fund capital expenditures.

The company sold 8.1 million shares in the offering, with 5.9 million sold by selling stockholders.

Deals we saw over the past week:

• San Leandro, Calif.-based Energy Recovery started trading on the Nasdaq after pricing its initial public offering of 14 million shares at $8.50 per share. That's near the top of an expected $7 to $9 price range for the company, which makes energy recovery devices for the water desalination industry. The company said it plans to use its net proceeds from the offering for working capital and other general corporate purposes, including to finance its growth, develop new products and fund capital expenditures. Energy Recovery said 8.1 million shares were sold by the company, with 5.9 million sold by selling stockholders (see Energy Recovery prices IPO near top of range).
• Yorkshire, England-based Silvigen, a biomass fuel producer, has reportedly secured a £1.75 million investment from the Foresight Group, an asset management firm. Silvigen plans to use the funding to develop its processing plant and for working capital. The company processes woody biomass for power generators and wood pellet production.
• Boston-based Allied Minds, a pre-seed investment firm, has established RF Biocidics, a University of California, Davis, spin-out company, to develop and commercialize a radio frequency-based disinfectant and disinfestant technology. Allied Minds said the system can eliminate pathogens and insects without the use of chemicals or radiation. The amount of Allied's investment was not disclosed, but the firm typically invests from the low six figures to $1.5 million in its portfolio companies (see Disinfecting with radio frequencies).
• Manchester, England-based Manchester Bobber, a wave power developer backed by the University of Manchester, is reportedly looking to raise £11 million. The company plans to use the funds to take the systems into a final pre-commercialization stage. Manchester Bobber said said that stage would involve building a full scale unit and installing it at the European Marine Energy Centre in Orkney for a 12 month trial.
• Madrid-based Iberdrola Renewables has launched a €175 million offer to acquire the shares of Greek wind developer Rokas Group that it does not already own. Iberdrola Renewables, a subsidiary of Spanish energy group Iberdrola, said it holds 52.7 percent of Rokas' ordinary shares and 47.3 percent of the preferred stock. Rokas has 13 wind farms with 193.3 megawatts of capacity, as well as a 171.6 kilowatt solar photovoltaic plant, according to Iberdrola Renewables (see Iberdrola bids for rest of wind developer Rokas).
• Intelligent Energy, a Loughborough, England-based fuel cell developer, has completed a $13.6 million round of private funding. The company did not disclose the names of its investors. Intelligent Energy said the funds would be used to provide for its growth plans as it moves toward commercialization of its hydrogen fuel cell technology.
• Espoo, Finland-based Enfucell said Tekes, the Finnish Funding Agency for Technology and Innovation, granted the company a €1.5 million loan for development of its SoftBattery technology. The company said its SoftBattery is a thin, flexible, 1.5 volt environmentally friendly power source. Enfucell said potential applications include radio frequency identification tags and sensors, intelligent packaging, and cosmetic and pharmaceutical products.
• London-based private equity firm Doughty Hanson announced plans to acquire Denmark's Svendborg Brakes, a global provider of industrial brake solutions to the wind, mining, crane and offshore oil industries, for €460 million. Doughty Hanson said Svendborg currently supplies many of the world's largest wind turbine manufacturers in Europe, the U.S. and Asia, where it established a new facility in China in 2007 (see Doughty Hanson to buy wind turbine brakes maker).
• Helix Micro, a Milpitas, Calif.-based battery cell and power management startup, has reportedly secured $12.3 million of a $25.8 million Series B round. Investors include Prudent Venture Investment, Amprex Technologies, and TechGains Funds.
• London's zouk ventures has launched zouk Solar Opportunities, raising €52 million to invest in solar infrastructure projects. Zouk said the new company would develop and own a portfolio of solar power projects in Europe, the Middle East and Asia. The zouk Solar Opportunities group will have an initial focus on solar photovoltaic plants, and zouk said it has already identified a pipeline of suitable projects and is looking to build approximately 40 megawatts within the next 12 months.

Browse previous deals here.

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Cleantech developments making news in the past 24 hours

• India aims for $4B in cleantech cash by 2015
• Tata Motors moves Indian Nano plant
• Something's fishy with China algae plant
• Saudi Arabia adds to desal strategy
• Beijing hikes fuel prices to pay for cleaner blend
• Solyndra reveals thin-film solar tubes
• Solar takes stock after tax-credit battle

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