More Investors Eye Alternative Energy
SAN FRANCISCO -- Apr 06 - USA TODAY
SAN FRANCISCO -- As oil and gas prices soar, investor interest in alternative energy start-ups is rising for the first time in four years.
California, often at the forefront of energy trends, has launched a Clean
Energy Fund with $30 million. The non-profit fund last month hired Nth Power and
two other venture-capital firms hunting for promising start-ups, such as those
developing solar power tech.
VCs invested in a range of energy start-ups last year, from software
controlling lighting to hardware for power meters.
But a top focus was fuel cells -- devices using chemical reactions to create
power exceeding the lifespan of conventional batteries. The long-elusive
technology could be used to power automobiles. It also could be used for
laptops, cellphones and other mobile computing devices. ''Everyone is racing
toward this market,'' says Rodrigo Prudencio, an Nth Power principal.
Investor interest in energy start-ups last peaked in 2000. VCs pumped $1.3
billion into energy tech, a time of record investing in many industries. Among
those getting funds: solar products maker Evergreen Solar, now publicly traded.
While no one is predicting a return to 2000's levels, interest is climbing anew
because of:
* Rising oil prices. Goldman Sachs warned last week that oil could
surge past $100 a barrel, driving gasoline prices still higher. Oil closed
Tuesday at $56.04 a barrel, down 97 cents. The price a year ago: $34.38.
Rising gas prices threaten auto sales, spurring automaker interest in fuel
cells. General Motors and DaimlerChrysler last week signed agreements to split
$88 million in U.S. Energy Department grants for hydrogen fuel-cell vehicles.
The vehicles are experimental.
* Mobile computing. Growth in wireless Internet access via laptops and
other gizmos places a premium on longer battery life.
Many laptop batteries now last four hours, says Samir Bhavnani, a mobile
computer analyst at consultant Current Analysis. ''Not enough for a lot of
people,'' he says.
Samsung and Toshiba have fuel-cell prototypes for laptops, Bhavnani says. But
they're not likely to hit the market before next year.
Start-ups getting VC money include PolyFuel in Silicon Valley. It got $18.4
million last summer to develop specialized membranes, a fuel-cell component
allowing water and methanol to generate electricity for laptops and other
devices. For far more extensive news on the energy/power
visit: http://www.energycentral.com
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