30 June 2011
In the latest sign of growing confidence in green-themed initial public offerings (IPOs), US energy efficiency company Aspen Aerogels plans to tap the stock market for up to $115 million.
The Massachusetts-based company, which manufactures insulation products for customers including ExxonMobil and NextEra Energy, filed its IPO plans with US regulators. Goldman Sachs and Morgan Stanley will act as book-runners in the IPO.
The planned IPO follows several recent financings for the company.
Aspen Aerogels provides insulation products to industry.
An investor group led by BASF Venture Capital last year invested $21.4 million, while a separate group led by Piper Capital invested a further $10 million. Earlier this year, affiliates of Fidelity Investments and BASF Venture Capital bought $30 million worth of convertible notes in the company, which also secured a $10 million revolving credit facility with Silicon Valley Bank.
The company, which hopes to list on the New York Stock Exchange, is yet to earn a profit and in 2010 posted net loss of nearly $10 million on revenues of more than $43 million. It will use the proceeds of the offering for general corporate purposes and expanding its manufacturing capacity.
While clean-tech IPOs have been from plain sailing – Chinese heat pump firm Nobao Renewable Energy withdrew its $300 million IPO in May, having shelved a previous offering last year – Aspen’s fundraising ambitions point to an increasing appetite for IPOs in the sector.
Last week biofuels firm Kior raised $150 million in its IPO, in the footsteps of other recent biofuels listings such as Solazyme and Gevo. In other activity, Chinese wind company Huaneng Renewables revived its IPO to raise $800 million ahead of a Hong Kong listing and, also this month, Californian solar firm Enphase Energy announced plans to raise $100 million via an IPO.
Charlotte Dudley
Monday, 4 July 2011
US economy could gain $155bn from clean energy innovation – Google
30 June 2011
Aggressive innovation in clean energy technologies could provide a $155 billion annual boost to the US economy, and help it meet its environmental and national security goals. But delays could be extremely costly, according to a report by the philanthropic arm of Google.
Google.org estimates that breakthroughs in clean power generation, grid storage, electric vehicle and natural gas technologies could help the US economy grow by more than $155 billion in GDP per year by 2030 when compared to 2010 business as usual (BAU) levels.
That figure rises to $244 billion if those technological innovations are paired with clean energy policies such as a clean energy standard, extension of the production and investment tax credits, a loan guarantee credit facility capped at $15 billion per year and a carbon price for the power sector of $30 per tonne.
Such technological breakthroughs will also reduce US greenhouse gas emissions by 13% relative to BAU levels, or 21% when combined with these clean energy policies, and reduce US oil consumption by more than 1.1 billion barrels a year, the report found.
By 2050, innovation in the technologies in Google.org’s model could increase annual GDP by $600 billion and reduce GHG emissions by 55%, or 63% when combined with clean energy policies, according to the report.
“Breakthroughs in clean energy technology can reduce the cost associated with implementing policies such as clean energy standards or carbon prices — growing the economy while de-carbonising our energy use,” the report says. “Policies can also amplify the economic, security, and pollution benefits of breakthroughs by creating markets, dis-incentivising the highest-emitting technologies and levelling the playing field for clean energy, leading to increased adoption.”
But delays in advancing clean energy technologies could be extremely costly for the economy and the environment, according to Google.org. A mere five-year delay could cost the economy a total of between $2.3 trillion and $3.2 trillion in unrealised GDP gains and increase emissions by 8 billion to 28 billion tonnes.
“The longer we delay achieving those breakthroughs, the greater the benefits we stand to give up,” the report says.
Google has quickly become a major financier of clean energy projects, with more than $780 million in investments in the sector.
Gloria Gonzalez
Aggressive innovation in clean energy technologies could provide a $155 billion annual boost to the US economy, and help it meet its environmental and national security goals. But delays could be extremely costly, according to a report by the philanthropic arm of Google.
Google.org estimates that breakthroughs in clean power generation, grid storage, electric vehicle and natural gas technologies could help the US economy grow by more than $155 billion in GDP per year by 2030 when compared to 2010 business as usual (BAU) levels.
That figure rises to $244 billion if those technological innovations are paired with clean energy policies such as a clean energy standard, extension of the production and investment tax credits, a loan guarantee credit facility capped at $15 billion per year and a carbon price for the power sector of $30 per tonne.
Such technological breakthroughs will also reduce US greenhouse gas emissions by 13% relative to BAU levels, or 21% when combined with these clean energy policies, and reduce US oil consumption by more than 1.1 billion barrels a year, the report found.
By 2050, innovation in the technologies in Google.org’s model could increase annual GDP by $600 billion and reduce GHG emissions by 55%, or 63% when combined with clean energy policies, according to the report.
“Breakthroughs in clean energy technology can reduce the cost associated with implementing policies such as clean energy standards or carbon prices — growing the economy while de-carbonising our energy use,” the report says. “Policies can also amplify the economic, security, and pollution benefits of breakthroughs by creating markets, dis-incentivising the highest-emitting technologies and levelling the playing field for clean energy, leading to increased adoption.”
But delays in advancing clean energy technologies could be extremely costly for the economy and the environment, according to Google.org. A mere five-year delay could cost the economy a total of between $2.3 trillion and $3.2 trillion in unrealised GDP gains and increase emissions by 8 billion to 28 billion tonnes.
“The longer we delay achieving those breakthroughs, the greater the benefits we stand to give up,” the report says.
Google has quickly become a major financier of clean energy projects, with more than $780 million in investments in the sector.
Gloria Gonzalez
OPIC pours $500m into ‘renewable resources’ funds
30 June 2011
The US Overseas Private Investment Corporation (OPIC) has approved $500 million in financing for five funds investing in the renewable energy and agriculture sectors in developing countries.
The investments are expected to mobilise a total of $1.5 billion and fulfil an OPIC pledge made at the Cancún climate talks in December, when it committed to provide at least $300 million in financing for new private equity investment funds.
Fifty-six funds responded to a call made by OPIC for “proposals to help catalyse and facilitate private sector investments promoting renewable resources globally”.
The five funds chosen are:
•Aloe Environment Fund III, into which OPIC will contribute $136 million of its $420 million target. The fund will invest in “climate solutions centered around renewable energy generation, recycling, and energy efficiency”, specifically in India and Southeast Asia. It will primarily target small and medium-sized enterprises.
•Renewable Energy Asia Fund, with OPIC contributing $62 million towards its $187 million target. It will invest in renewable energy projects and project developers in Asia, primarily in India and the Philippines. The fund – managed by Berkeley Energy – currently has $125 million under management.
•Mekong Renewable Resources Fund (MRRF), with OPIC putting in $50 million towards a $150 million target. MRRF will invest in “renewable resource opportunities” in Vietnam, Cambodia and Laos, specifically in environmental services and infrastructure, renewable energy and energy efficiency. It will concentrate primarily on small and medium-sized enterprises. The fund is managed by Indochina Capital Corporation, a Vietnam-based asset management firm.
•African Agriculture Fund, with OPIC contributing $100 million of its $300 million target. The fund will focus on food production in Africa, via investing in the primary (farms and plantations) and secondary (processing and animal feeds) farming sectors, and in the agricultural services and infrastructure sectors. Managed by Phatisa, the fund reached a first closing at $151 million in January.
•The Silverlands Fund, into which OPIC will invest $150 million of a $450 million target. This fund will invest in companies in the agricultural sector in Malawi, Mozambique, South Africa, Tanzania, Uganda and Zambia. It will invest across the value chain, but with a focus on farmland and primary production businesses. The fund is managed by UK-based SilverStreet Capital.
Mark Nicholls
The US Overseas Private Investment Corporation (OPIC) has approved $500 million in financing for five funds investing in the renewable energy and agriculture sectors in developing countries.
The investments are expected to mobilise a total of $1.5 billion and fulfil an OPIC pledge made at the Cancún climate talks in December, when it committed to provide at least $300 million in financing for new private equity investment funds.
Fifty-six funds responded to a call made by OPIC for “proposals to help catalyse and facilitate private sector investments promoting renewable resources globally”.
The five funds chosen are:
•Aloe Environment Fund III, into which OPIC will contribute $136 million of its $420 million target. The fund will invest in “climate solutions centered around renewable energy generation, recycling, and energy efficiency”, specifically in India and Southeast Asia. It will primarily target small and medium-sized enterprises.
•Renewable Energy Asia Fund, with OPIC contributing $62 million towards its $187 million target. It will invest in renewable energy projects and project developers in Asia, primarily in India and the Philippines. The fund – managed by Berkeley Energy – currently has $125 million under management.
•Mekong Renewable Resources Fund (MRRF), with OPIC putting in $50 million towards a $150 million target. MRRF will invest in “renewable resource opportunities” in Vietnam, Cambodia and Laos, specifically in environmental services and infrastructure, renewable energy and energy efficiency. It will concentrate primarily on small and medium-sized enterprises. The fund is managed by Indochina Capital Corporation, a Vietnam-based asset management firm.
•African Agriculture Fund, with OPIC contributing $100 million of its $300 million target. The fund will focus on food production in Africa, via investing in the primary (farms and plantations) and secondary (processing and animal feeds) farming sectors, and in the agricultural services and infrastructure sectors. Managed by Phatisa, the fund reached a first closing at $151 million in January.
•The Silverlands Fund, into which OPIC will invest $150 million of a $450 million target. This fund will invest in companies in the agricultural sector in Malawi, Mozambique, South Africa, Tanzania, Uganda and Zambia. It will invest across the value chain, but with a focus on farmland and primary production businesses. The fund is managed by UK-based SilverStreet Capital.
Mark Nicholls