What is Cleantech?
Cleantech is new technology and related business models that offer competitive returns for investors and customers while providing solutions to global challenges.
Cleantech represents a diverse range of products, services, and processes, all intended to:
- Provide superior performance at lower costs, while
- Greatly reducing or eliminating negative ecological impact, at the same time as
- Improving the productive and responsible use of natural resources
Worldwide, Cleantech venture investment in 2Q 2011 was down 30% from 1Q11, at $1.96 billion across 171 deals, but exits remain strong with 11 IPOs (totaling $1.99 billion) and 86 M&A transactions (totaling a disclosed $13.0 billion) this quarter.
Clean Tech in MENA
Masdar Capital seeks to build a portfolio of the world’s most promising renewable energy and clean technology companies. It helps its portfolio companies grow and scale-up by providing capital and management expertise. Masdar Capital targets investments that have the greatest potential globally and to the UAE and is particularly focused on the following sectors:
- Clean energy:including power generation and storage technologies, transportation technologies, cleantech/clean energy innovation, and sustainable biofuels.
- Environmental resources:including water and waste management, and sustainable agriculture technologies.
- Energy and material efficiency:including developments in advanced materials, building and power-grid efficiency, and the enabling technologies.
- Environmental services:including environmental protection and business services.
- Investment in these markets is made via two funds:the Masdar Clean Technology Fund (MCTF), launched in 2006, and the DB Masdar Clean Tech Fund (DBMCTF), launched in 2009. MCTF, a fully deployed $250 million fund invested $45 million in three cleantech funds and the remaining $205 million in 12 direct investments in companies, as lead or co-lead investor. It was launched in conjunction with partners Consensus Business Group, Credit Suisse and Siemens AG. DBMCTF, is jointly managed with Deutche Bank and raised US$265 million in its first close, has an initial investor group led by Siemens and includes the Japan Bank for International Cooperation, Japan Oil Development Co. Ltd., Nippon Oil Corporation, Development Bank of Japan and GE.
Both funds follow an active management investment strategy. The targeted investment amount is between US$15-35 million and seeks to realise strong risk-adjusted returns. Through these funds, Masdar Capital also seeks to demonstrate, commercialise and promote renewable technologies in the UAE, and to identify synergies between its investments and other Masdar activities, as well as the long-term energy and development programme of the UAE.
World Bank Clean Technology Fund
The Clean Technology Fund(CTF) approved financing of $750 millionon December 2, 2009, as part of an investment plan which will mobilize an additional $4.85 billion from other sources, to accelerate global deployment of Concentrated Solar Power (CSP). It will do so by investing in the CSP programs of five countries in the Middle East and North Africa: Algeria, Egypt, Jordan, Morocco, and Tunisia.
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