Wermuth Asset Management ("WAM") is pleased to announce that all agreements for the Tatarstan Cleantech Fund ("TCTF") have been finalised and WAM can now draw against the EUR110m committed by the co-founders of the fund. Additional fundraising is underway, as WAM targets a total fund size of EUR200m.

TCTF is the first ever international cleantech fund with a specific mandate to focus on the needs of the Russian Federation, and the Republic of Tatarstan in particular. The Fund will look to address climate change and other environmental issues by investing in the best cleantech companies that offer technology of relevance to Tatarstan, and that could benefit by selling into or initiating production in the Republic.

The TCTF offers investors several distinct advantages: 1) with an energy intensity per unit of GDP eleven times higher than Germany, the economic benefit of applying clean technologies in Tatarstan and Russia is far greater than in developed countries; 2) an extremely attractive investment climate, thanks in part to a free trade zone that provides tax breaks to investors; 3) a preferred return to limited partners in the Fund for investments that involve the Republic; 4) finally, Tatarstan represents an excellent base from which to access Russian and other Eurasian markets.

The Fund is conceived for ten years: a six-year investment period and a four-year wind-down period, with targeted overall returns of 30% per annum. The Fund offers a 2x preferred return to non-Tatarstan investors whenever a deal leads to CAPEX in Tatarstan. The TCTF will invest primarily into medium and small-size companies from Russia, Europe and the United States, which have a proven track record in clean technologies and are looking to expand their business.

Wermuth Asset Management CIO and Managing Partner Jochen Wermuth said: "With documentation and approvals now in place, we look forward to getting to work and demonstrating the substantial potential we see for investors to take advantage of the significant benefits Russia, and the Republic of Tatarstan, can achieve by utilizing and investing in clean technologies."

The Lead Fund Partner Daniel Colbert added: "I am delighted and honored to have the opportunity to lead an energetic and experienced team for the TCTF. I admire both the Republic of Tatarstan and WAM for recognizing the importance and value of clean technologies and their partnership in structuring the fund to achieve mutual and separate goals. I also see huge potential interest in the TCTF, not only from Russia-focused investors, but from cleantech investors around the world."

The term sheet to establish the TCTF was signed in the presence of Chancellor Angela Merkel and President Dmitry Medvedev at the German-Russian government consultations on 19 July 2011 in Hanover.

US venture capital investments in Cleantech rose 12% in 2011, despite a challenging international economic climate and growing supply of and low price for natural gas.

Since 2008 NG price peaks in the $13 range, price per MCF has dropped to the $3 level as supplies from shale have expanded from 6% to nearly 30% of US capacity, due to improved fracking methods.

The low price for the relatively clean energy source has had a significant impact on the competitive positions of both solar and wind, two components of the Cleantech sector.

Both dollars and deal volume increased in 2011, to bring the year's total to the highest level recorded—at $4.3 billion across 323 deals, compared with $3.8 billion going into 289 deals in 2010, according to The Money Tree Report from PWC.

According to Tracy T Lefteroff, global managing partner of the venture capital practice at Price Waterhouse Coopers, “We saw a resurgence in investments in clean technology and internet-specific companies in 2011, as well as a bit of a jump in average funding in the internet sector. However, while venture capitalists continue to show their interest in these areas, they are acting prudently and not chasing excessive valuations. Accordingly, despite the increase in investing, we're unlikely to see these sectors overheat like we saw in the 1999 to 2000 era.”

“The 2011 cleantech numbers are very strong from a dollars invested and deals perspective, surpassing investment levels not seen since 2008,” Jon Sadoka, partner at VC firm NEA said. “In spite of volatility and perception of the sector we've seen a strong recovery from VC investments primarily driven by the growing global demand for clean, cheap, renewable power and technologies that enable societies to use energy more efficiently.

“We're tracking two trends in the 2011 numbers which are representative of the investment trends we'll see in 2012. The first is significant late stage investment activity in emerging market leaders who generally have plans for near-term IPOs. There continues to be an abundance and concentration of capital for companies that have innovative products that are scaling globally .

“The winners and losers are becoming more clearly defined and while those who are in the number one position are clearly able to raise substantial amounts of capital those who are in second and third place are really struggling to get financing.”

Sadoka reports that investor activity had increased in energy efficiency, LED lighting, energy storage and transportation. He also said that although 10 companies had already registered an SEC filing, he knew that there was a stronger pipeline of companies wanting to go public this year.

“Our outlook for 2012 is cautiously optimistic - we are seeing a very slow and steady recovery in the Cleantech sector. In 2011 the Cleantech sector definitely saw the impact of global slowdown in economic growth and the European debt crisis.

“Stronger recovery in the economy, stability in the European debt crisis and currency and increasing global demand will boost Cleantech sector in 2012.”

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.