cleantech up despite credit crunch

Interesting read on Earth2Tech today about how VC investments for the cleantech industry is still breaking records (well, it’s easy to go up from a smaller amount) despite the credit crunch.

Most of the cash is going into algae startups, (making fuel out of scum), smart grid companies and thin film (read the article for more).

But…

…don’t expect the party to last. The Cleantech Group says it expects a slowdown in the coming quarter. There’s no way this overall economic slowdown won’t hurt sectors that need extensive capital to move into production, like biofuels and solar. We’re thinking less capital intensive plays, like green software, will become more popular in the coming months.

Something to think about…

With all of the layoffs going on in the financial industry (all over the world, and hitting many other sectors), where are those intelligent and talented workers going to go? Hopefully many of these people will shift their talents to growing industries like this- i.e. building a more sustainable energy sector.

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6 thoughts on “cleantech up despite credit crunch

  1. Matthew Buckley says:

    …total investment in renewable energy globally grew 60% in 2007 compared to 2006, and only weakened for biofuels with so much concern over food prices. Good news I’d say! Despite those talented and jobless finance pro’s hitting the streets, I’m looking to get in the business.

    For VC investment, funding to biomass and waste to energy projects (like algae) is growing at a stellar pace. Global VC investment there was up 431% from 2006, although solar is still VC’s bridgehead..

    And we’re even catching on in Eastern Canada. A local landfill just announced a methane capture and power generation plan yesterday. It will pay for itself in 3 years, and is projected to save $500,000 in energy costs while also increasing revenues by $500,000 per year. Straight up good business.

  2. janeporter says:

    woo hoo.

    we should make a CEM reunion in 10 years.. see where we all are.

    hopefully, we’ll be cashing in on some of this:)

  3. I don’t think VC are that dumb. I think (and I hope) they have considered the possible downturn given the first signs of an impending crisis were unconvered in August, 2007. The fact of the matter is America needs more power generation and renewable technologies are the best solution. Retail customers, ie. homeowner may opt to buy less solar panels and other energy generating/saving/storing equipment but the utilities need to think about the future. Besides, many states have mandatory levels of renewable energy production that are demanded from utilities. Whatever happens on the credit markets, I still see plenty of opportunities in the renewables industry. Especially with solar and (algae) biofuels.

  4. janeporter says:

    Thanks Kristjan.

    I see plenty of opportunities in renewables too. And my personal belief lies in microgeneration – whatever technology best suits.

    (Kristjan is the writer over at howtoinvestgreen.com – about being an investor in cleantech – something I don’t write about too much since I don’t invest (no money to invest!). Check it out. I’ll add it to my blogroll.)

  5. lactatingbookworm says:

    Good point re: your question at the end. I know of people in finance who claim they are really unhappy, would love to do something more meaningful but can’t give up the “status” and lifestyle. I suppose if they’re forced out of it they will have the opportunity to try something new…or eat their words.

  6. janeporter says:

    true, it seems like everyone out there is looking for some kind of “meaning” in their lives…

    the talent is still there, just needs to be channelled into something with a little more (intrinsic) value.

    thanks for the comments, glad you’re enjoying!

    cheers and have good weekend

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