Clean energy
By Knowledge@Wharton Monday, 10 July 2006
Alternative energy was endorsed by no less than George Bush when he proclaimed in his January State of the Union speech that "America is addicted to oil".
Solar energy, wind power, fuel cell technology and biofuels are part of a growing interest in 'clean technology' that has been described by a venture capitalist as the biggest economic opportunity of the 21st century. High energy and commodity prices are boosting VC interest in a sector where returns are said to be in the 20%+ range.
Investment in solar energy is growing fast, though not all alternative energy businesses are suitable for VC backing: biomass energy requires more capital-intensive facilities, while some wind projects do not have high enough risk/return prospects.
It is estimated that 10% of all North American VC investment will be in clean technology by 2009, as the industry attracts a better track record for returns.The end of oil?
Venture capital firms raise the profile of alternative energy,
Knowledge@Wharton, 26 April 2006.
Reviewed by Steve Lodge
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