NRG buys offshore wind developer Bluewater

New Jersey-based NRG Energy is paying an undisclosed cash sum to acquire Bluewater Wind from sellers Babcock & Brown and Arcadia Windpower. Bluewater plans to build offshore wind farms in the US and is developing projects in Delaware, Maryland, New Jersey and New York.

In June last year, Bluewater signed a 25-year power purchase agreement with Delmarva Power to supply 200MW of wind energy from its project in Delaware. The wind farm will be located around 12 miles off the state’s coast and will have a capacity of around 450MW. The firm’s plan is to invest approximately USD1.6bn in the project, with operations slated to begin as early as 2012.

Earlier this year, NRG invested USD10m in solar thermal firm eSolar in return for an equity stake and the development rights to three plants. In June, the pair announced plans to build a 92MW facility in New Mexico.

Last month, Babcock sold three US-based wind energy projects to NextEra Energy Resources for USD352m.

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SOLAR

Dow and Caltech in solar research venture

Dow Chemical will team up with the California Institute of Technology (Caltech) to develop solar technologies in “multimillion dollar” research initiative. Under the four-year deal, the pair will focus on direct band gap materials which comprise cheaper and more abundant elements than those found in current thin-film photovoltaic (PV) semiconductors.

Enfinity and Titan develop solar projects in India

Belgian renewable energy firm Enfinity is partnering with Indian solar panel maker Titan Energy to develop up to 1GW of solar energy capacity in Andhra Pradesh, India. The pair will construct the projects over the next five years. Andhra Pradesh Industrial Infrastructure will lease 3,000 acres of land for the installations. Enfinity will finance and develop the projects and Titan will supply the photovoltaic modules.

China Solar buys thin-film technology firm ThinSilicon

Hong Kong-based China Solar Power (CSP) is paying an undisclosed sum to acquire California-based ThinSilicon. The firm recently opened its first manufacturing facility for amorphous silicon-based photovoltaic modules, scheduled to have a production capacity of 32MW by 2010. Founded in 2007, ThinSilicon develops manufacturing process technology for thin-film solar cells. It claims its technology increases conversion efficiency and lowers cost.

Applied Materials buys Advent Solar

Californian manufacturing equipment maker Applied Materials is paying an undisclosed sum to acquire Advent Solar, which develops crystalline silicon-based solar cells and modules using emitter wrap-through (EWT) technology. The technology removes grid obstructions on the front of the photovoltaic cell by using laser-drilled holes to carry current collected on the front surface to the back. This increases surface area for light absorption and increases the conversion efficiency.

India’s Punj Lloyd forms solar venture

Indian engineering and construction firm Punj Lloyd Group is forming a joint venture with Singapore-based Delta Solar to develop renewable energy projects. The new venture, called Punj Lloyd Delta Renewables (PLDR), will at first focus on developing solar thermal and photovoltaic projects, but plans to build wind farms and biomass energy facilities in future.

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Air Products (NYSE: APD), the leading global hydrogen provider, today announced a long-term supply contract and plans to build a new world-scale hydrogen production plant to serve ExxonMobil’s (Esso) Rotterdam refinery in The Netherlands and additional customers in the region. The plant will feature technology advancements to maximize facility energy efficiency and emission reductions. It will be connected to Air Products’ extensive Rotterdam hydrogen pipeline network system and is expected to be on-stream in the second half of 2011.

“We are proud to strengthen our relationship with ExxonMobil with this new contract in Europe and to build a new state-of-the-art hydrogen production facility,” said Howard Castle-Smith, vice president–Tonnage Gases, Equipment and Energy for Air Products in Europe and the Middle East. “This project enhances Air Products’ existing operations and pipeline network system in the Netherlands where we have a number of hydrogen facilities in the Rotterdam region supplying the refining and chemical industries. This new project demonstrates our commitment to a region which has made hydrogen a key to its continued development.”

“The new hydrogen facility will use cutting edge processes and technology to maximize energy efficiency and significantly reduce overall plant emissions,” said Denis Deheusch, general manager–Tonnage Gases for Air Products in the Benelux. “We will be able to achieve this through an enhanced plant design which targets minimal loss of heat to the environment and a reduced natural gas requirement.”

The Rotterdam project builds on two previous announcements in the past year involving Air Products and ExxonMobil in the United States. Air Products is building a new world-scale hydrogen production facility which will supply ExxonMobil’s Baton Rouge, Louisiana facility, and also announced a hydrogen pipeline supply agreement from Air Products’ Gulf Coast network to ExxonMobil’s Baytown, Texas refinery. Both projects are to come on-stream in 2010.

Air Products’ hydrogen facility in Rotterdam will be built through the global alliance between Air Products and Technip. This alliance, which has built over 30 hydrogen production facilities, continues to provide the worldwide refining industry with competitive technology and world-class safety. Technip provides the design and construction expertise for steam reformers while Air Products provides the gas separation technology. Air Products, through its extensive operating network, and Technip, from its large reference base, also bring effective operational and engineering knowledge to “design-in” high reliability and efficiency. The plants are operated and maintained by Air Products under long-term agreements with customers. More information on this global alliance, which has been in place since 1992, can be found at:

Air Products has been active in Rotterdam since the early 1970s, and has continuously expanded and invested. It operates production facilities in Botlek, Pernis, Chemiehaven and Europoort and manages an extensive network of pipelines. The new hydrogen plant will add four miles of pipeline to the existing 35-mile hydrogen system managed by Air Products in the region. Globally, Air Products’ pipeline operational expertise is evidenced by its network of systems. Besides Rotterdam, Air Products operates the largest hydrogen pipeline network in the U.S. Gulf Coast and has additional pipelines in Southern California, and Sarnia, Ontario, and Edmonton, Alberta in Canada.

Investors who counted China down and out at the onset of the crash of 2008, ought to take a look at the Hang Seng Index, which has rallied around 35% since early March. As a long time China watcher, I think the comeback was to be expected.


So where will the next big growth sector be as China gets back on track?


News out of Hong Kong today that Entropy Ventures Ltd, a private equity fund that invests in green projects, expects a rebound in investment flows into Asia's clean energy sector in the second half following a dearth of deals since last year's credit crisis.


Sylvia Chan, managing director of Entropy, said optimism among private equity funds was underpinned by governments’ push for clean energy and efficiency programs.

China’s dramatic growth over the past 20 years has come at a huge cost, in terms of pollution. Areas such as Guangdong Province barely ever see the sun through the smog, groundwater is so badly polluted it’s undrinkable. The Chinese government wants that to change and have targeted stimulus initiatives to that end.


According to Chan, former head of utilities at Australian investment bank Macquarie Group, "The drivers at play are green jobs and green industries, and these are things that will support a three-year growth trajectory for the sector.”


Tight capital and slowing economies have hindered growth in the industry, trimming the size and number of deals clinched in the first half.

But that's about to change in the coming months, she said.


Most investors have taken a wait-and-see approach. But that's changing, and certainly investment flows will pick up in the second half, Chan said.


Entropy's $100 million fund, launched last year, has so far invested in Solar and Environmental Technologies Corp Ltd and Horizon Fuel Cells Technologies, both of which are based in China.


The fund aimed to invest in about 10 more companies by 20-11. About half of the fund would go to China projects, she said.


Hong Kong-based Entropy also planned to raise a second fund, Chan said, although she declined to give details.


For now, private equity funds remain cautious, avoiding capital-intensive sectors such as the once-hot makers of thin film used in solar energy panels.


According to Chan people are more interested in energy efficiency and storage because they are less capital-intensive and they are seeing governments, including the Americans, becoming more supportive of that.


Renewable energy, waste management, green batteries and smart grids are some of the other areas Entropy is eyeing. Smart grids promote the use of intelligent meters to monitor electricity use.


On Friday, Chinese Cleantech shares rose after China's Ministry of Finance announced measures to support cleantech and the environmental protection industries. On the list— ten areas to support, including windpower, solar photovoltaic generation and energy efficient cars.


Xinjiang Goldwind Science and Technology Co. which just won windpower contracts of 775.5 thousand KW, advanced 1.41 percent. Dongfang Electric Corporation Limited climbed 0.05 percent. Guangdong Baolihua New Energy Stock Co. added 3.97 percent.


Shenzhen Topraysolar Co. China's largest monocrystal line siliconproducer, rose 5.26 percent. Hubei Sanxia New Building Materials Co. which has the largest silicon deposits in south China, surged to the 10 percent trading cap. China Singyes Solar Technologies Holdings Limited surged 10.47 percent.


Battery and hybrid car developer BYD Company Limited climbed 3.85 percent. Warren Buffet invested in the company last year.


Tibet Mineral Development Co. which has the  world's third-largest deposit of lithium, for batteries, added 2.76 percent. China-Kinwa High Technology Co. which produces half of China’s copper foil used in lithium batteries, advanced 6.52 percent.


Jiangsu Guotai International Group Guomao Co. China’s largest producer of lithium battery electrolyte, climbed 0.34 percent.


There are two major stock exchanges in mainland China, Shanghai and Shenzhen. There are four basic types of shares: state shares, legal person shares, individual shares, and foreign capital/person shares.


Foreign capital shares include B shares and oversea-listed shares. B shares are publicly traded Chinese stocks in which foreign investors are permitted to invest. H shares refer to shares floated and listed on the Hong Kong Stock Exchange, N shares are issued as ADRs on U.S. stock exchanges; and L shares are issued on the London Stock Exchange.


Your financial advisor will have all the details.



While Cleantech globally will provide outstanding investment returns as world economies return to growth, Chinese cleantech deals look to be among the most exciting. A low cost structure, combined with powerful global and domestic demand, as well as the strength of Hong Kong Chinese financial backing and administrative facilities, the Chinese Cleantech sector could turn out to be one of the most exciting plays ever.


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Three angel investment groups have banded together to invest in early stage cleantech companies in response to what they call a “funding gap” in the sector.

CalCEF Clean Energy Angel Fund, Kuwait Petroleum Ventures Inc. and Keiretsu Forum’s Cleantech Investment Committee have formed a partnership called the Cleantech Angel Network of Networks.

According to a release from the three groups said the partnership will allow angel investors to collaborate and exchange information on potential investments and link early stage companies to early-stage investors.

Ultimately the partnership intends to fund a greater number of cleantech companies than if the three groups were working separately.

“As we were looking for opportunities to build out our cleantech strategy, we found partners such as Keiretsu Forum and CalCEF, who had also identified the need for more angel money and resources,” said Mohammad al-Ramadhan of Kuwait Petroleum Energy Ventures Inc. in the release. “In building this alliance, we will be able to leverage large pools of capital, operational expertise, seasoned professionals and multiple sources of deal flow to accelerate the growth of the cleantech industry.”