Cleantech Investor

First published in Cleantech Infocus: 2010 - Equity Deals of the Year, January 2011. Copyright Cleantech Investor Ltd

The most significant deal in the biofuel sector in 2010 was the agreement in February between Shell and Brazilian ethanol producer, Cosan, to enter into a joint venture involving a merger of the Brazilian assets of the two companies (in the case of Shell, certain assets in Brazil only) and an equity injection by Shell into the combined company of $1.6 billion. However, that deal only cleared regulatory approval in the EU at the start of January 2011 and the final documents are still to be signed.

Brazil aside, biofuel deals in 2010 were notable for an emphasis on next generation technology. NASDAQ saw two significant IPOs, Amyris Biotechnologies and Codexis.  Of these, Amyris is focusing on Brazil and next generation technologies for sugarcane, and the other, Codexis, has received investment from Shell – and Shell’s stake will be held by the Cosan/Shell joint venture once it is approved.

First published in Cleantech Infocus: 2010 - Equity Deals of the Year, January 2011.  Copyright Cleantech Investor Ltd

The fuel cell industry has been out of favour with investors for some time, but the tide may have turned in 2010. A key focus is fuel cells for stationary applications. As we reported in the Fuel Cell Special issue of Cleantech magazine last September, commercialisation of automotive applications for fuel cells is still some time off, but fuel cells for stationary applications are a reality today.

First published in Cleantech Infocus: 2010 - Equity Deals of the Year, January 2011. Copyright Cleantech Investor Ltd

Renewable energy generators were successful at raising funding in emerging markets during 2010. China saw IPOs on the Hong Kong Stock Exchange by China Datang Corp. Renewable Power Co. (the country’s second largest wind power producer) and China Suntien Green Energy Corporation (which focuses on northern China and develops wind and natural gas generation). India’s Caparo Energy listed on the London Stock Exchange’s AIM market, while India’s Orient Green Power Co. saw its shares list in Mumbai.

In Sao Paulo, Renova Energia, which generates energy from wind and mini hydro, also raised funding. Meanwhile, Europe saw a high profile deal with the listing of Enel Green Energy in Italy.

However, a number of planned renewable energy IPOs were cancelled or postponed during the year due to the difficult market conditions. The US saw the shelving of the planned IPO of First Wind Holdings of Boston. In Europe, Renovalia Energy of Spain, which operates solar and wind power plants, postponed its planned IPO. And even China wasn’t immune from the difficult environment. Huaneng Renewables, a unit of China Huaneng Group Corp., was forced to scrap its planned IPO on the Hong Kong stock exchange. 

First published in Cleantech Infocus: 2010 - Equity Deals of the Year, January 2011. Copyright Cleantech Investor Ltd.

Asian solar companies were relatively successful in tapping public markets for equity in 2010. Asian solar IPOs included Woogjin Energy (which listed in Korea); Daqo New Energy Corp. and JinkoSolar (both Chinese companies listed on the NYSE); China’s Trony Solar (which listed on the HKSE); and Risen Energy of China (which listed in Shenzhen).

First published in Cleantech Infocus: 2010 - Equity Deals of the Year, January 2011.  Copyright Cleantech Investor Ltd.

2010 was the year of Asian water IPOs. There were several large water sector IPOs in China, including the listing of water utility giant Chongqing Water Group (valued at $8.5 billion at the IPO price) as well as large IPOs for Beijing Water Business Doctor and Beijing Origin Water Technology Company.  In India, VA Tech Wabag raised funding through an IPO in October, raising $28 million.

Meanwhile, the London Stock Exchange’s AIM market was the location for the listing of US company HaloSource. The company, which raised £31.5 million, has developed a technology for killing bacteria and viruses in drinking water.