Investments and Research in CleanTech On the Rise -- Governor Names OSU and Other Universities as Centers of Excellence in Advanced Energy

For the second consecutive quarter, venture capital investments in cleantech companies have experienced significant growth.  According to an Ernst & Young report ,cleantech venture investments reached $965 million in third quarter 2009 – a 46 percent jump over the prior quarter.  

The Energy/Electricity Generation sector received the largest amount of these investments ($316 million).  Solar technologies led the way in this sector with $309 million invested across five deals.  

The Alternative Fuels category (biofuels) grew by 58 percent to $71 million as larger oil corporations invested heavily in the sector.  A syndicate of investors including Chevron Technology Ventures invested $25 million in LS9 Inc. a developer of renewable fuels and sustainable chemicals.  Both Exxon Mobil and BP Plc have announced plans to invest in the development of algae-based biofuels.  

Funds from the American Reinvestment and Recovery Act (ARRA) began to impact the market as well in Q3.  By the end of September, ARRA funds equaling $18.2 billion had been disbursed to local and state agencies to support energy grid modernization, renewable energy production and carbon capture and sequestration. 

In a related story, Governor Ted Strickland named OSU one of nine Ohio Centers of Excellence in advanced energy.  Caroline Whitacre, vice president of research at OSU, says there are more than 300 OSU researchers focused on some aspect of climate, energy and the environment.  

“We already partner with many businesses and non profits, entities that have helped make Ohio a top-five producer of clean energy jobs.  This recognition will help strengthen these partnerships and attract the best researchers, faculty and students who are committed to this important field,” she says.  

Other Centers of Excellence were designated at Bowling Green, Case Western Reserve, Central State University, University of Cincinnati, University of Dayton, Ohio University and University of Toledo.  

“In a time of scarce resources, we think it’s important to leverage the strengths of all the state’s public institutions in addressing Ohio’s future,” says Whitacre. 

For more information, see the story on Cleantech VC Investments in the Silicon Valley/San Jose Business Journal.

For more on Ohio’s new Centers of Excellence in Advanced Energy see the release from OSU