Ausra grabs $60M, loses founder

The driving force in establishing Palo Alto, Calif.-based Ausra has left the company, which announced today a new funding round of $60.6 million for its utility-scale solar-thermal power plant technology.

Executive Vice President John O'Donnell, who persuaded Ausra's scientists to move from Australia to Silicon Valley and form the company, left Ausra in mid-September to focus on advocating renewable energy policies incorporating solar thermal, as well as the policies supported by the U.S. presidential campaign of Barack Obama, he told the Cleantech Group today.

"It's improper for an energy company to take political positions," he said. "Some of that advocacy becomes uncomfortable, and it's hard to be seen as preaching to the electric utilities while you’re selling to them." 

O'Donnell said he plans to continue advocating solar thermal's potential to provide more than 90 percent of the U.S. electricity demand (see Solar thermal could supply most of the U.S. grid, says Ausra). A study by Ausra explaining that potential is available here.

O'Donnell previously founded several high-tech companies before jumping into cleantech in 2005. The next year, he introduced the science behind Ausra to Silicon Valley-based investors Khosla Ventures and Kleiner Perkins Caufield & Byers. Ausra raised $43.3 million in its Series A round and $30 million in venture debt (see Biofuel bonanza).

"John helped launch our company and united a visionary in our industry, Dr. David Mills, and two of the world's leading venture capitalists," said Katherine Potter, Ausra's vice president of communications. "He leaves Ausra well positioned for growth."

Today's announced funding came from KERN Partners of Alberta, Canada; London's Generation Investment Management; Starfish Ventures of Melbourne, Australia; Khosla Ventures, and Kleiner Perkins. About $25 million of the round was reported in September (see More share sales in the works). Al Gore is chairman of Generation Management.

The new investors' international presence will help Ausra develop utility-scale projects in Australia, southern Europe and the Middle East, Potter said.

The most recent round is expected to help the company complete its 5 MW Kimberlina solar thermal power project near Bakersfield, Calif., in the next month. It's the first North American plant to use Ausra's technology.

The technology is based on work at the University of Sydney by David Mills, who is now chief scientific officer of Ausra. Mills developed the Compact Linear Fresnel Reflector solar collector and steam generation system, which uses mirrors and heat to turn water into steam. The company says the product is scalable, low cost and land-use efficient.

Ausra's first commercial project in Australia is under expansion to add power to the grid before the end of the year, the company said.

Last November, Ausra and San Francisco's PG&E (NYSE: PCG) announced a power-purchase agreement for a 177-megawatt solar thermal power plant to be built in central California (see PG&E, Ausra in 177MW solar thermal deal).

Ausra is producing a new reflector line at its first North American manufacturing and distribution plant in Las Vegas, which began operating in June (see Ausra starts up Nevada manufacturing plant). The plant is expected to also produce absorber tubes and other key components for the PG&E project and for other solar-thermal power projects throughout the American Southwest.

Ausra said the Las Vegas factory would also serve its process steam customers, who the company said are adopting solar thermal power to lower their fuel costs and emissions in their operations, including food processing, enhanced oil recovery and refining, and pulp and paper
manufacturing.

Ausra recently expanded its focus to industrial applications, promoting its direct solar steam product for enhanced oil refining, food processing, and pulp and paper manufacturing.

Ausra also recently added to its management, with Jeffrey Melby filling the role of senior vice president for research and product development, Benjamin Montoya as a board member, and Debra Olson as general counsel and executive vice president.

O'Donnell said he helped put together a leadership team he's confident can guide the company as it looks to establish more power plants.

CEO Robert Fishman managed Calpine's 25,000-MW portfolio of power plants and oversaw the simultaneous development of multiple power plants before joining Ausra last year.

"The team is complete, and the stuff I found myself doing wasn't in my expertise," O'Donnell said.