Cleantech investment continues

Despite diminished fourth quarter results, venture capital funding continues in the clean technology category, said the Cleantech Group of San Francisco.

During 2008, cleantech venture investments reached a record $8.4 billion despite the credit crisis and broadening recessions. That total accounted for investments in North America, Europe, China, and India.

It was the seventh consecutive year of growth. Nicholas Parker, Cleantech Group executive chairman, remains optimistic despite the financial crunch.

"Now, more than ever, clean technologies represent the biggest opportunities for job and wealth creation," he said. "In 2009, we're going to see a lot of progress in terms of imagining what's possible, and consensus around the need to really take it up a gear."

Cleantech reports solar accounted for $3.3 billion of the cleantech VC investment last year followed by biofuels at $904 million. Transportation (electric vehicles, advanced batteries, fuel cells) was $795 million, and wind accounted for $502 million.

I wonder if the pattern of spending by major oil companies on alternative energy follow the VC distributions. My hunch is that the majors collectively are spending more on biofuels than on solar. Any comments from industry are most welcome.

US energy subsidies: measuring apples to apples?

Whenever discussing federal energy subsidies, I typically think of the ethanol industry. But lately I find myself wondering about how to accurately compare subsidies and tax credits across fuel types.

This question stems from recent publicity about extensions for production tax credits (PTC) for wind power. The US Energy Information Administration reports PTC significantly encouraged wind capacity growth.

During 1999-2007, wind power was the only primary energy source for which production increased each year, EIA said. Wind producers received an estimated $666 million in PTC during fiscal year 2007. This was distributed over 27.7 million Mw-hr.

EIA reports the US government spent an estimated $16.6 billion in energy subsidies and support programs during 2007. Only $4.9 billion of that went toward renewable energy. Certain fossil fuels also were heavily subsidized.

I have yet to find any cost comparisons per btu between various types of subsidized fuels.