Cleantech Investor

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

Energy storage and grid connection remain major challenges for renewable energy uptake and these areas continued to attract the attention of investors during 2010.

In storage, in terms of batteries for electric vehicles, the venture fund raising by Boston-Power was perhaps the most notable event of the year: Boston-Power is supplying the batteries for the ZE Saab 9-3 EV, which was launched in 2010. And we’ve included the IPO of Talison Lithium on the list: technically a mining company rather than a storage company, but one which is benefiting from the growing demand for lithium batteries.

At the grid storage end of the scale, the IPO of an Australian zinc bromine battery systems manufacturer, RedFlow, was notable. Elsewhere, France’s McPhy Energy, which has developed technology for the storage of hydrogen in the form of magnesium hydride, raised venture funding. And investment in storage for applications in buildings included the TIAA-CREF/Good Energies partnership investment in Ice Energy.

Large scale grid projects such as the Desertec and the European Supergrid remain on the agenda in terms of news flow – but are not yet the subject of significant investment deals.

At the other end of the scale, however, technology for micro scale grid connection is attracting investment interest. Two companies with innovative solar inverter technologies were successful in raising funds during 2010: Solutronic AG achieved a listing on the Frankfurt stock exchange; and Enphase Energy of California raised venture funding.

RedFlow Limited

IPO – ASX

RedFlow raised AU$17.5 million in December through an ASX IPO priced at $1 per share. The company manufactures zinc bromine battery systems that store conventional or solar electricity for release during peak demand times. RedFlow has a supply contract with Energy Safe Victoria as part of an initiative to reduce bush fire risk by switching off parts of the overhead electricity network on high risk fire days.

Solutronic AG

IPO – Frankfurt

Germany’s Solutronic listed on the Frankfurt Bourse during the year. Solutronic has developed grid-connected photovoltaic inverters, which take the direct current from a solar module and convert it to alternating current to feed into the power supply system. The company has supplied over 20,000 SOLPLUS inverters in power ratings from 2.5 to 12kW.

Talison Lithium Ltd

IPO – TSX

Talison Lithium mines lithium-bearing mineral spodumene from mines near Perth, Western Australia. A range of lithium concentrates are sold to an established customer base. Talison Lithium merged with Salares Lithium Inc. in September, giving it exposure to prospective lithium brine projects in Chile. In conjunction with the merger, the company raised C$40 million and listed on the TSX.

Ice Energy Inc.

Venture Capital Fund Raising

Ice Energy secured a $24 million venture capital investment by the TIAA-CREF/Good Energies partnership. The company has developed an energy storage unit that freezes ice overnight (when electricity is cheaper), then melts it during the day for air conditioner cooling units.

McPhy Energy S.A.

Venture Capital Fund Raising

McPhy Energy raised €13.7 million from Sofinnova Parters, Gimv, Amundi Private Equity and others. French firm McPhy Energy is commercialising a new technology for the solid storage of hydrogen in the form of magnesium hydride. It has developed an alternative solution for the on-site production of hydrogen for the industry sector and for the renewable power sector.

Boston-Power Inc.

Venture Capital Fund Raising

US based Boston-Power raised $60 million in Series E venture funding from investors including Foundation Asset Management and Oak Investment Partners. Boston-Power, which focuses on lithium-ion battery technology, has so far raised $185 million since it was founded in 2005. The company’s Swing battery is powering the ZE Saab 9-3 electric vehicle, which was launched during 2010. In addition to electric cars, the company aims to scale its technology, historically focused on smaller storage applications such as consumer electronics, to grid storage.

Enphase Energy Inc.

Venture Capital Fund Raising

California-based Enphase Energy raised $63 million in June. The company manufactures microinverters, which convert electricity generated by solar panels from direct current to alternating current to feed to the grid. Enphase has attracted an impressive list of investors which include Third Point Management, RockPort Capital Partners, Madrone Capital Partners, Kleiner Perkins Caufield & Byers, PCG Asset Management, Applied Ventures and Bay Partners