It’s taken only 7 months for UKIIF to launch the first of two funds, the Hermes Environmental Innovation Fund, which has already raised £125m and will continue to seek further funding from investors.

The Environmental Innovation Fund, managed by Hermes Private Equity, will now start investing in low carbon and clean technology funds and co-investing in companies, providing much needed venture capital to help these innovative businesses grow. The Hermes Fund will focus on investment opportunities aimed at increasing the efficient use of resources (both renewable and non renewable) at all stages of production and consumption.

Over the past decade, the UK has emerged as a European frontrunner in alternative energy investment and is well positioned to further develop a sustainable market competitive globally.  The Hermes Fund will look to benefit from this attractive market framework and expects to commit its capital over the next 2-3 years.

The Prime Minister, Gordon Brown MP, said

“The UK has a wealth of innovators and entrepreneurs seeking to create the businesses of tomorrow – businesses that will make the UK a world-leader in low carbon innovation and industry, and help to tackle some of the biggest challenges we face around energy and climate change. This fund will provide substantial investment where it is needed and deliver strong returns for investors.”

Science & Innovation Minister, Lord Drayson said:

“Investment has flowed into the UKIIF at extraordinary speed. It’s already one of the largest European funds for investing in high-tech firms. But what’s more important is rapidly channelling that capital into Britain’s burgeoning green tech sector. After a tough spell, things are looking up for our entrepreneurs and innovators.”

Energy and Climate Change Minister David Kidney MP said:

“Cleaning up our energy supplies and improving energy efficiency will give the UK the opportunity to develop the low carbon industries of the future.  This new fund will help the UK to build on existing strengths in the sector and enable British companies to demonstrate and commercialise these technologies.”

Hermes Private Equity CEO Susan Flynn commented:

“Increased awareness of environmental issues and policies to tackle climate change presents a real opportunity for investors and the innovative companies we will invest in. At this stage in the economic cycle there are many forward-looking companies who may not have funding available to them. The Hermes Private Equity Environmental Innovation Fund (HPEEIF) will ensure that those seeking finance for promising new environmental ventures will have access to a source of funding.

We have already identified a number of attractive investment opportunities and anticipate that HEIF will begin to deploy capital shortly.”

The UK Innovation Investment fund was announced last June by the Prime Minister as part of the Government’s strategy for Building Britain’s Future. Hermes Private Equity and the European Investment Fund were confirmed as fund of fund managers for two separate funds of funds. Backed by £150m investment by the Department for Business, Innovation and Skills, the Department of Energy and Climate Change and the Department of Health, it has already attracted private investment to more than match this amount with the total first closing of £325m.

The UK Innovation Investment Fund will drive economic growth and create highly skilled jobs by investing in businesses where there are significant growth opportunities. Independent research^* estimates that the global market for low carbon and environmental goods and services (LCEGS) was already worth £3 trillion in 2007/08 and could grow to an estimated £4.3 trillion by 2015.

According to figures from the Carbon Trust, the UK is now the sixth largest low carbon and environmental economy in the world with 3.5% of global market share. This brings annual economic benefits and investment to Britain of £6-8 billion.

The UKIIF will target small growing businesses, start ups and spin outs including pre-profit and pre-revenue stages of development.

Evidence shows that venture capital-backed companies significantly out perform other companies in terms of their ability to create wealth and generate the spill-over benefits including export performance and the creation of high skilled jobs vital to the economy.^**

^* Source – Innovas 2009.

^** Source – British Venture Capital Association DATA 2008 – the economic impact of private equity and VC in the UK.

Department for Business, Innovation & Skills

The Department for Business, Innovation and Skills (BIS) is building a dynamic and competitive UK economy by: creating the conditions for business success; promoting innovation, enterprise and science; and giving everyone the skills and opportunities to succeed. To achieve this it will foster world-class universities and promote an open global economy. BIS – Investing in our future.

A consortium led by Samsung C&T Corporation and the Korea Electric Power Corporation (KEPCO) will invest CAD$7 billion (£4.12 Billion) to generate 2,500 megawatts of wind and solar power. These projects will triple Ontario’s output from renewable wind and solar sources and provide clean electricity to more than 580,000 households.

The investment will also lead to more than 16,000 new green energy jobs to build, install and operate the renewable generation projects. The Korean consortium will also work with major partners to attract four manufacturing plants. This will lead to the creation of 1,440 manufacturing and related jobs building wind and solar technology for use in Ontario and export across North America.

The consortium fully intends to use Ontario-made steel in its renewable energy projects, such as constructing its wind turbine towers.

This is the single-largest investment in renewable energy in provincial history. The consortium chose Ontario because the province’s Green Energy Act guarantees stable rates for renewable energy.  “Thanks to today’s announcement, we will be delivering more green energy for Ontarians to use — and more green energy products for North America to buy. With this step, Ontario is becoming the place to be for green energy manufacturing in North America,” said Dalton McGuinty, Premier of Ontario.  “We commend Ontario for creating a welcoming climate for green energy investment. Samsung takes pride in its global efforts to support a more sustainable future and looks forward to working with Ontario residents and businesses to create clean, green power,” said Sung-Ha Chi, President and CEO, Samsung C&T Corporation.   “This is an exciting opportunity to help create new manufacturing facilities and be on the cutting edge of an emerging renewable energy supply sector in Ontario,” said Chan-Ki Jung, Executive Vice-President, Korea Electric Power Corporation.

QUICK FACTS

More than 1,200 megawatts of new renewable projects, representing CAD$2.8 billion (£1.65 billion) of investment, have started up in Ontario since 2003. Ontario is Canada’s leading province in wind and solar power. The Green Energy Act will create 50,000 new jobs in the green energy sector. CO2 emissions from coal-fired power generation are 73 per cent lower than 2003 levels, with four more units coming offline in fall, 2010.

“Our Government continues to help bring innovative renewable energy technologies from idea to marketplace,” said Minister Raitt. “Investing in these projects will stimulate the growth of a domestic clean energy industry, create high-quality jobs for Canadians and help protect our environment.”

“Through SDTC, the Government of Canada is helping cleantech companies convert their new technologies into market-ready products,” said SDTC Chairman Juergen Puetter. “When these companies bring their technologies to businesses and consumers, they create jobs, provide Canada a technological edge and contribute to an overall reduction in Canada’s greenhouse gas emissions”.

These innovative clean technologies involve many of Canada’s main economic sectors, including energy utilization, transportation and waste management. Some highlights of this round include:

Technologies that will help reduce the environmental impacts of the transportation sector by using renewable energy such as electricity and hydrogen to power vehicles.

Biomass-related technologies that will add value to Canada’s forestry and agricultural industries, furthering the development of a bio-based economy.

These new investments bring SDTC’s total portfolio value to over $1.5B. SDTC’s SD Tech Fund™ has completed fifteen funding rounds, committing $464 million to 183 clean technology projects, and leveraging over $1B from project consortia members.  These figures include adjustments made to the portfolio.

SDTC’s investments to date are creating Canadian green jobs, have leveraged additional private sector investment of nearly $900 million and are expected to deliver an overall reduction of greenhouse gas emissions of between 5 and 12 Megatonnes – the equivalent of taking up to 1.5 million homes off the grid.

“The projects included in this funding round show Canada’s great potential and confidence in the cleantech sector,” said Vicky Sharpe, SDTC President and CEO. “Companies and countries around the world are looking to buy clean technologies. It’s through such promising innovations that Canada can seize the cleantech opportunity and become a technology seller to the world.”

The newly funded projects are representative of the investment priorities established in the SD Business Cases™, a series of six reports published by SDTC and which provide strategic insights into specific economic sectors (available in the Knowledge Centre section of the SDTC website at www.sdtc.ca ). The latest report on industrial freight transportation was released on December 2, 2009. Other sectors previously studied include clean conventional fuels, renewable electricity and commercial buildings.

SDTC will be launching its next call for Statements of Interest (SOI) for the SD Tech Fund on February 24, 2010. Applicants with projects that bring technological solutions which fall under the investment priorities established in the SD Business Cases™  and that address climate change, clean air, clean water and clean soil issues are encouraged to apply. Solutions that address more than one of these issues are of greatest interest.

About SDTC

SDTC is an arm’s-length foundation created by the Government of Canada which has received $1.05 billion as part of the Government’s commitment to create a healthy environment and a high quality of life for all Canadians.

SDTC operates two funds aimed at the development and demonstration of innovative technological solutions.  The $550 million SD Tech Fund™ supports projects that address climate change, air quality, clean water, and clean soil.  The $500 million NextGen Biofuels Fund™ supports the establishment of first-of-kind large demonstration-scale facilities for the production of next-generation renewable fuels.

SDTC operates as a not-for-profit corporation and has been working with the public and private sector including industry, academia, non-governmental organizations (NGOs), the financial community and all levels of government to achieve this mandate.

Detailed information on the 16 projects, including their descriptions, can be found here.

Called ‘Pellet Zone Ltd’ (PZL), the new service is aimed primarily at medium to large scale users of biomass pellets, as well as producers of pellets able to supply sufficient quantities.

Operating from the UK, PZL is set up to buy and sell pellets internationally, and in so doing will help smooth the supply and price fluctuations that sometimes frustrate end users and also provide a ready market for pellet producers to assist them with their sales.

All forms of biomass pellets will be traded by PZL including wood pellets and those made from energy crops such as Miscanthus and Reed Canary Grass.

A Key asset of the new business is its multilingual web site at www.pellet-zone.com where pellet buyers and producers can register completely free, and also enter details of their pellet requirements or availability on-line.   (All company and personal information remain completely confidential).

PZL are highly experienced in International trade and shipping and are able to fulfil most requests from smaller local consignments by road, through to intercontinental dry bulk shipping.

Steve Garner, who heads up the new trading service, comments…

“Pellet-Zone is the culmination of our extensive market research in which reliability of supply and consistency in pricing we’re high up on user’s wish lists.   With our global footprint and sector expertise we can meet these requirements.

Steve continues…

“For pellet producers we fulfil a vital sales function – enabling PZL to place their pellets into a much wider market whilst reducing unsold stock and associated costs”.

The increasing requirement to prove pellet supplies are sourced only from sustainable materials and areas is a key factor in successful trade – and one that PZL take very seriously.

BEIJING, China and PASADENA, Calif. – January 8, 2010 – eSolar, a global provider of reliable and cost-effective concentrating solar power (CSP) plants, and Penglai Electric, a privately-owned Chinese electrical power equipment manufacturer, announced a master licensing agreement to build at least 2 gigawatts (GW) of solar thermal power plants in China over the next 10 years.

The deal was signed in the Chinese State Council building with government officials in attendance and represents the country’s largest CSP project. Groundbreaking of the first 92 megawatts (MW) will take place in 2010.

Penglai Electric plans to develop 2 GW of power plants by 2021 using eSolar’s proven solar thermal technology. The solar thermal power plants will be co-located with biomass electricity generation facilities. Penglai Electric will leverage local manufacturing to source some of the equipment. In total, the plants will eliminate 15 million tons of carbon dioxide emissions annually.

“Using the power of the sun, eSolar’s technology minimizes the environmental impact on manufacturing and deployment while maximizing land and cost efficiency,” said Liu Guangyu, chairman and CEO of Penglai Electric. “We are extremely grateful to the Chinese government for playing a major role in promoting zero-carbon renewable energy.”

“With Penglai as our partner and with the strong support of the Chinese government, eSolar is proud to be the first company to deliver the benefits of cost-effective solar thermal power to China,” said Bill Gross, founder and chairman of eSolar.

China Huadian Engineering Co. will lead the construction process. At completion, China Shaanxi Yulin Huayang New Energy Co. will own and operate the first 92 MW plant. “To date, eSolar offers the only CSP tower technology that has demonstrated commercial maturity and economic feasibility,” added Zhao Weikang, chairman and president of Shaanxi Yulin Huayang New Energy Co. “We’re excited to build our initial hybrid plant as part of the 170-square kilometer Yulin Alternative Energy Park, the first large scale alternative energy park in China. Our work is aligned with the government’s continuing policy to curb carbon emissions and combat climate change.”

China is currently the market leader in the PV manufacturing industry. The deal represents the country’s first major move into concentrating solar thermal power. The Chinese government recently announced its aggressive plans to increase the country’s renewable power generation capacity to 15 percent by 2020.

About Penglai Electric

China Shandong Penglai Electric Power Equipment Manufacturing Co., Ltd was founded in 1987 as the preferred vendor for the state-owned Chinese Power Complete Equipment Co., Ltd (CPCEC) and the Chinese Academy of Electric Power Design (ChinaPower.com.cn). Penglai Electric is one of the many independently owned and operated enterprises conceived as a result of the Chinese economic reform. With its own core team of about 1,000 employees, its main line of business includes manufacturing auxiliary and energy-saving components for 200MW, 300MW, and 600MW to 1,000MW fire-powered electrical power plants. Since 2001, Penglai Electric Power has been granted ISO9001 quality assurance and self import and export privileges. By synergistically combining its technical expertise, manufacturing capability, and trading know-how, Penglai Electric offers comprehensive solutions in research and development, technical consultation, auxiliary component introduction and manufacturing, installation, and tuning for more than 60% of the major fire-powered electrical plants in China. Penglai Electric is based in Penglai, Shandong, China.

About eSolar

eSolar is an Idealab company founded in 2007 to develop modular and scalable solar thermal power plant technology. In the summer of 2009, eSolar unveiled the 5 MW Sierra SunTower Plant, the only commercial CSP tower facility in North America. The eSolar solution marries a low-impact, pre-fabricated form factor with advanced computer software engineering to meet the demand for reliable and cost-competitive solar energy. eSolar’s proprietary solution resolves issues of price, scalability, speed of deployment, and grid impact that have historically stymied solar thermal adoption, thus affording dramatic reductions in the cost of solar thermal energy. eSolar is based in Pasadena, California. For more information, please visit www.esolar.com.