Another week, another three Khosla biofuel investments

March 15, 2007 - Exclusive
By Dana Childs, Cleantech Group

First, it was forward-thinking. Then it became a novelty, almost a cliché.

Now, tracking Vinod Khosla's new biofuel investments is almost becoming a full time job.

Why, just this past week, as detailed below, he put money into three new companies.

Also of significance this week is the $4m raised by high profile installer Akeena Solar, given the vertical consolidation that industry observers expect to see more of in the solar industry.

These deals and more, below:

  • There was news of three Vinod Khosla biofuel investments this week. Gevo, a Pasadena, California-based biofuel startup, raised over $2.5 million in Series A funding from Khosla Ventures, according to a regulatory filing. Earlier this week, as reported by Cleantech.com, LS9 of San Carlos, California raised $5m in a Series A (see Cleantech.com's LS9, latest Khosla investment, gets $5M) And yesterday Dow Jones reported that Vinod apparently joined AOL founder Steve Case, a supermarket magnate and others in funding a new Brazilian ethanol startup called Brenco with $200m. The company, which hopes to double the production of Brazil's biggest ethanol producer, is aiming for $2 billion in investment, according to Dow Jones.
  • Publicly-traded U.S. solar installer Akeena Solar raised a $4.1m PIPE equity infusion with participation by the Westly Group. Akeena is a leading designer and installer of solar power systems. The net proceeds are to be used for general corporate purposes, including growth initiatives, capital expenditures, research and development. Empire Financial Group of San Francisco acted as placement agent.
  • Our numbers were off last week: waste-to-ethanol producer Earthanol actually closed a $7.1m Series A round, not $3.44 million as we first reported. Sail Venture Partners, backer of the company since 2005, participated, as did @Ventures for $2m, and other investors Nth Power and Calvert Funds. The company focuses on technologies for the production of ethanol from alternative feedstocks to corn. Its first projects to reach construction start are expected to be California and Wisconsin-based dairy industry waste-to-ethanol plants.
  • Oorja Protonics, a Fremont, California-based developer of alcohol-based fuel cell systems, raised $15 million in Series B funding according to a regulatory filing. DAG Ventures and Artis Capital were joined by return backers Sequoia Capital and McKenna Capital.
  • Norsk Hydro of Oslo acquired 1.6 million shares of solar thin film maker Ascent Solar, or about 23% of the company, in a private placement, paying a 25% premium over Ascent's share price and yielding $9.2m for the company. Subject to shareholder approval, Norsk Hydro will be entitled to purchase up to an additional 12% of the company. Norsk is the second-largest supplier of building systems in the world.
  • Microwind developer Mariah Power raised a $750k seed round from Sierra Angels and the Keiretsu Forum. The company is making attractive vertical turbines that do not require towers and comply with most residential zoning regulations.
  • Ensus Group, A U.K. ethanol producer, said that Carlyle/Riverstone has agreed to fund the construction of a wheat ethanol production facility in Teesside. No financial terms were disclosed.
  • GS AgriFuels of New York acquired about 85% of Sustainable Systems of Montana for a total purchase price of about $12.6 million. Sustainable owns an oilseed crushing facility in Culbertson, Montana, and is in the business of producing and selling high oleic safflower, sunflower, canola and other high value vegetable oils.
  • Elemental Power Group, a New York-based renewable energy development company, announced the funding of its fuel cell development subsidiary, EPG Fuel Cell, which it has sold 50% of to Catamount Energy Corp. of Rutland, Vermont for an undisclosed sum. The company says it has commitments for power generation projects based on fuel cells. Catamount is a leading developer of wind generation projects in the United States, and is backed by private equity firm Diamond Castle Holdings.
  • AgraQuest, based in Davis, California, raised an $8mm insider round. The company is developing bio-based fungicides, pesticides and other natural agricultural products. Return backers include TPG Ventures, Otter Capital, Halcyon Capital and Swiss Re. The company has raised around $76 million in total VC funding since its 1995 inception.
  • EDF Energies Nouvelles of Paris sealed a preliminary agreement with Alcofinance SA of Belgium. Upon completion of a reserved issue of shares for €23 million, EDF will own 25% of a newly formed company housing Belgium-based Alcofinance's ethanol production and distribution activities. The agreement also provides for an option for EDF Energies Nouvelles to raise its interest to 50% within 24 months subject to certain conditions.
  • NextDiesel of Adrian, Michigan, raised a $9mm Series A round to help complete its first B100 biodiesel production facility. Backers were not identified.
  • Backup power storage device Gaia Power Technologies closed a first $2.9m tranche of an expected $4m Series B round led by GHO Ventures and the NJTC. The company has raised over $5m (including a full Series B) for its battery-based energy management system. Participants included GHO Ventures, Empire State Venture Group, NJTC Venture Fund and the New York State Energy Research and Development Authority.
  • Algal biotech developer Solazyme raised an $8m+ Series B, plus $2m of debt. The Roda Group led the financing, and Harris & Harris contributed $500k of the round, with other undisclosed investors. The company's technologies have applications in biofuels and other areas.

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