The world is moving towards global warming. Everyone using energy sources extravagantly as if it’s their birthright. The developed countries that are the West are the biggest energy guzzlers. But they are always behind India and China to reduce their energy consumption because of their ballooning population.
But 2010 was the second highest year after 2008 (US$ 8.8 billion) in terms of the number of investments and the financial value of these deals. It was higher than 2009 where the value was about US$ 6.1 billion. There were 715 deals totalling around US $ 7.8 billion. The venture investment in Q4 (US$ 1.61 billion) decreased by 17% compared to Q3 (US$ 1.95 billion). The excellent financial activity and increasing number of deals has also resulted in 93 companies releasing their IPO raising more than US $16 billion.
The investment share of different technology sectors has been explained in the pie chart below. With respect to the number of deals, the Energy Efficiency sector was the most popular with 151 deals while the solar sector had 117 deals.
The pie – chart below gives the investment in clean technology across different regions. North America with 68% has the highest share by far.
The histogram below shows that even by the number of deals in each region, Asia still has a long way to catch up. US leads with more than 55% share of the number of deals in clean technology.
The largest IPO was for Enel Green Power, the renewable energy unit of Italian utility Enel, which raised $3.6 billion on the Madrid Stock Exchange. More than 60% of the IPO activity and the amount raised was concentrated in China lending thought to the point that the developing countries are doing all they can to boost their presence in clean technology.
The number of JVs reached 161 having a worth of around US$ 14 billion which was way more than 40 deals worth around US$ 4 billion in 2009. The largest deal was between Shell Oil Company and Brazilian sugar and ethanol producer Cosan, who set up a $12 billion Brazilian biofuels joint venture.
Clean Technology seems to have got a fantastic facelift all across the world! By the look of things 2011 could be a landmark year for clean technology innovation financing!