Cleantech Group, Deloitte say ‘cleantech’ investment totaled $1.6B in 3rd quarter

Investors seen returning to ‘cleantech’ sector

DENVER — Investors cautiously began putting money into solar, electric cars and other clean technology companies in the third quarter as government funding helped bolster confidence, a research group said Wednesday.

Cleantech Group LLC and Deloitte said Wednesday that third-quarter venture investment in the sector totaled $1.6 billion in 134 companies in North America, Europe, China and India.

The amount was 42 percent less than the year-ago total but was 10 percent more than in the previous quarter.

It marked the second consecutive quarter that cleantech investment has increased, an indication the sector is recovering, said Dallas Kachan, Cleantech Group’s managing director.

“The vast sums being put to work by governments worldwide are helping loosen the private capital floodgates,” he said. “Efficiency has become a major focus for entrepreneurs and investors this year.”

North American companies received the bulk of the venture investment, $1.1 billion, which was about 42 percent less than the third quarter of 2008 but up 8 percent from the previous quarter.

European and Israeli companies received $457 million; Chinese companies received $41.8 million and India, $21.5 million.

The solar sector outpaced the rest with $451 million in investments, led by solar panel manufacturer Solyndra Inc. The California-based thin film company raised $198 million from investors and received a $535 million federal loan guarantee for construction of a manufacturing plant in Fremont.

The transportation sector — vehicles, batteries and biofuels — raised $383 million; and energy-efficient building product companies raised $110 million.

Cleantech Group provides global market research and Deloitte provides financial services to cleantech companies.