SmartEnergy Designline Blog
The latest report on investments in clean technology by Ernst & Young saw a massive drop compared to the same period last year. Does this mean the bottom has fallen out on clean technology?
Some startling news in the latest Ernst & Young report on clean technology investments. Apparently, investment this quarter is down - DRASTICALLY compared to the first quarter of 2008. I guess this shouldn't come as a surprise, considering that the economy in general is experiencing it's worst recessionary period since movies were in black and white, but it is rather alarming that investments that totaled near $277 million dollars in the same quarter in 2008 dropped by over 60 percent in the same quarter this year.
What exactly can we gage from this drop though? Has the lure of infinite growth in a new market disappeared with the general malaise in general investing? One has to hope that for the sake of the clean tech industry, that venture capitalists aren't getting cold feet with respect to their investments because of the lack of immediate return&$45on-investment. Investors need to remember that governments worldwide have made commitments to improving themselves through clean technology so the opportunity for growth is still there.
And it isn't all doom and gloom. There were some positives to take from Ernst & Young's report. Among them:
The energy storage segment more than doubling its capital to $114 million in first quarter 2009 from the $50 million the segment raised in the same quarter of 2008.
Battery-storage companies raising $69 million in Q1 2009, a 37 percent jump from the first quarter of 2008.
Compared with no investment in the same period in 2008, fuel cell companies raised $45 million.
Electric vehicle sub-market of automotive continuing to show a rise in investiture.
Hopefully, more good news is on the horizon. With nothing but bad news filling our airwaves, clean tech could use a big 'win' in the achievement section.